CIT v. Walchand & Co. (P) Ltd. (

60 ITR 227Supreme Court of India1966#9462 most cited
12

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2018 to 2026.

Sections most often in play

Section 115BBESection 143(2)Section 143(3)Section 145(3)Section 194JSection 250Section 269TSection 271D

Issues it is cited on

section 92ca(3a)objections before drptax collected at sourcemanagement feestransfer pricing ordersection 194hdomestic companycredit for tdsarms length pricebusiness expediencydate of transfersection 144c(5)

Judgments citing CIT v. Walchand & Co. (P) Ltd. (

M/S SHIVANSH INFRAESTATE PVT.LTD.,LUCKNOW vs. DY. CIT RANGE-6, LUCKNOW

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 106/LKW/2024[2015-16]Status: DisposedITAT Lucknow13 Feb 2026AY 2015-16

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2015-16 M/S Shivansh Infraestate Pvt. Ltd., Vs. The Deputy Commissioner Of 3Rd Floor, Block-A, Surajdeep Income Tax, Range-6, 3Rd Floor, Complex, 1-Jopling Road, 27/2, Raja Ram Mohan Rai Marg, Lucknow-226001 P.K. Complex, Lucknow Pan: Aaqcs5896P (Appellant) (Respondent) Assessee By: Sh. Shubham Rastogi, C.A. Revenue By: Sh. Neeraj Kumar, Cit Dr Date Of Hearing: 20.11.2025 Date Of Pronouncement: 13.02.2026 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Filed By The Assessee Against The Orders Of The Ld. Cit(A), Nfac Passed Under Section 250 Of The Income Tax Act, 1961 On 18.01.2024 Wherein The Ld. Cit(A) Has Partly Allowed The Appeals Of The Assessee Against The Orders Of The Ld. Assessing Officer Dated 30.12.2017. The Grounds Of Appeal Are As Under:- “1- The Ld. Cit (A) Nfac Erred On Facts & In Law In Dismissing The Ground That Notice U/S 143(2) Was Issued By Ito-6(1) Lucknow On 01.04.2016 Without Appreciating That Jurisdiction Of Case Lies With Dcit, Range-6, Lucknow, Hence The Notice Issued By Ito-6(1) Is Without Jurisdiction & Invalid. Further, No Notice U/S 143(2) Has Been Issued By Jurisdictional Dcit, Range-Vi, Lucknow Within The Period As Per Section 143(2) Of L. T. Act. Hence The Present Assessment Is Invalid, Bad In Law & Liable To Be Quashed. 2- The Ld. C.I.T. (A) Upheld The Addition Without Appreciating That Ld. A. O. Rejected The Books Of Account & Instead Of Estimating The Net Profit, Additions Were Made On The Basis Of Same Books Of Account By Disallowing Expenses Under Different Heads Total Rs. 1,75,91,607/- & Addition U/S 68 R. W. S. 115Bbe Of I. T. Act For Rs. 1,32,78,833/- Which Is Contrary To The Provisions Of Law.

For Appellant: Sh. Shubham Rastogi, C.AFor Respondent: Sh. Neeraj Kumar, CIT DR
Section 143(2)Section 145(3)Section 250Section 68

…f the business, reasonableness of the expenditure has to be adjudged from the point of view of the businessmen and not of the Revenue." Similar view was taken by Hon'ble Supreme Court in the case of Travancore Titanium Products Limited Vs. C.I.T. reported in 60 ITR 227 (SC). Reliance is placed on the following judgements :- (Section 37(1) of the Income-tax Act, [2018] 99 taxmann.com 284(SC) 1961 Business F expenditure - SUPREME COURT OF INDIA in the case of Principal Commissioner of Income Allowability of (Onus to prove) - In Tax v. R.G. Buildwell Engineers Ltd.* course of assessment, assessee claimed deduction…

DHAWANI NAINESH PASTAGIA,SURAT vs. INCOME TAX OFFICER WARD 1(3)(6), SURAT

In the result, the appeal of the assessee is allowed

ITA 324/SRT/2022[2016-17]Status: DisposedITAT Surat28 Apr 2023AY 2016-17

Bench: Shri Pawan Singh(Physical Hearing) Dhwani Nainesh Pastagia, I.T.O., 55, Mitrali Co-Op Housing Society, Anand Ward-1(3)(6), Vs. Mahal Road, Adajan, Surat-395009. Surat. Pan No. Arzpp 3649 Q Appellant/ Assessee Respondent/ Revenue

Section 133(6)Section 254(1)

…holly and exclusively for the purpose of business. To support such submission, the assessee relied upon the decision of Hon'ble Apex Court in the case of CIT Vs Walchand & Co. (P) Ltd. (1967) 65 ITR 381 (SC) and Travancore Titanium Products Ltd. Vs CIT (1966) 60 ITR 227 (SC). 5. The ld. CIT(A) after considering the submission of assessee, on the disallowance of commission payment held that the assessee failed to furnish copy of agreement with the person to whom commission was paid alongwith terms related to rate of commission and upheld the action of Assessing Officer. On disallowance of salary expenses, the ld.…

DCIT-2(2)(1), MUMBAI vs. THE INDIAN HOTELS COMPANY LTD., MUMBAI

In the result, appeal of the Assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 3022/MUM/2016[2011-12]Status: DisposedITAT Mumbai29 Nov 2022AY 2011-12
For Appellant: Sh. Kanchan Kaushal, Sh. PratikFor Respondent: Dr. Yogesh Kamat
Section 115JSection 143(3)Section 144CSection 144C(13)Section 144C(5)Section 14ASection 36(1)(iii)Section 40Section 92C

…aid out for the purpose of the business the reasonableness of the expenditure has to be judged from the point of view of the businessman and not the Revenue [See CIT v. Walchand and Co. (P) Ltd. [1967] 65 ITR 381 (SC); J.K. Woollen Manufacturers u. CIT [1969] 72 ITR 622 (SC); Aluminimum Corporation of India Ltd. v. CIT [1972] 86 TTR 11 (SC) and CIT v. Panipat Woollen and General Mills Co. Ltd. [1976] 103 ITR 66 (SC)]." 45. Above principles are fully applicable to the facts of the present case. Further there is nothing to show that agreement to advance loan was not bona fide entered into or was intended to divert…

THE INDIAN HOTELS COMPANY LTD.,MUMBAI vs. DCIT CIR. 2(2)(1), MUMBAI

In the result, appeal of the Assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 2308/MUM/2016[2011-12]Status: DisposedITAT Mumbai29 Nov 2022AY 2011-12
For Appellant: Sh. Kanchan Kaushal, Sh. PratikFor Respondent: Dr. Yogesh Kamat
Section 115JSection 143(3)Section 144CSection 144C(13)Section 144C(5)Section 14ASection 36(1)(iii)Section 40Section 92C

…aid out for the purpose of the business the reasonableness of the expenditure has to be judged from the point of view of the businessman and not the Revenue [See CIT v. Walchand and Co. (P) Ltd. [1967] 65 ITR 381 (SC); J.K. Woollen Manufacturers u. CIT [1969] 72 ITR 622 (SC); Aluminimum Corporation of India Ltd. v. CIT [1972] 86 TTR 11 (SC) and CIT v. Panipat Woollen and General Mills Co. Ltd. [1976] 103 ITR 66 (SC)]." 45. Above principles are fully applicable to the facts of the present case. Further there is nothing to show that agreement to advance loan was not bona fide entered into or was intended to divert…

ASST CIT CIR 2(2)(1), MUMBAI vs. THE INDIAN HOTELS COMPANIES LTD, MUMBAI

In the result, appeal of the Assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 2408/MUM/2015[2010-11]Status: DisposedITAT Mumbai26 Sept 2022AY 2010-11
For Appellant: Sh. Kanchan Kaushal, Sh. PratikFor Respondent: Dr. Yogesh Kamat
Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 14ASection 36(1)(iii)Section 40Section 92C

…aid out for the purpose of the business the reasonableness of the expenditure has to be judged from the point of view of the businessman and not the Revenue [See CIT v. Walchand and Co. (P) Ltd. [1967] 65 ITR 381 (SC); J.K. Woollen Manufacturers u. CIT [1969] 72 ITR 622 (SC); Aluminimum Corporation of India Ltd. v. CIT [1972] 86 TTR 11 (SC) and CIT v. Panipat Woollen and General Mills Co. Ltd. [1976] 103 ITR 66 (SC)]." Above principles are fully applicable to the facts of the present case. Further there is nothing to show that agreement to advance loan was not bona fide entered into or was intended to divert inc…

THE INDIAN HOTELS COMPANY LTD,MUMBAI vs. ASST CIT CIR 2(2)(1), MUMBAI

In the result, appeal of the Assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 2348/MUM/2015[2010-11]Status: DisposedITAT Mumbai26 Sept 2022AY 2010-11
For Appellant: Sh. Kanchan Kaushal, Sh. PratikFor Respondent: Dr. Yogesh Kamat
Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 14ASection 36(1)(iii)Section 40Section 92C

…aid out for the purpose of the business the reasonableness of the expenditure has to be judged from the point of view of the businessman and not the Revenue [See CIT v. Walchand and Co. (P) Ltd. [1967] 65 ITR 381 (SC); J.K. Woollen Manufacturers u. CIT [1969] 72 ITR 622 (SC); Aluminimum Corporation of India Ltd. v. CIT [1972] 86 TTR 11 (SC) and CIT v. Panipat Woollen and General Mills Co. Ltd. [1976] 103 ITR 66 (SC)]." Above principles are fully applicable to the facts of the present case. Further there is nothing to show that agreement to advance loan was not bona fide entered into or was intended to divert inc…

DCIT, NEW DELHI vs. M/S. SENTIA POWER LTD., NEW DELHI

In the result, ITA number 146/Del/2016 filed by the learned assessing officer for assessment year 2012 – 13 is dismissed

ITA 1461/DEL/2016[2012-13]Status: DisposedITAT Delhi21 Aug 2019AY 2012-13

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishisentia Power Ltd, Vs. Ito, (Formerly Known As Indiabulls Ward-11(4), Cseb Bhiyathan Power Ltd), New Delhi M-62 & 63, 1St Floor, Connaught Place, New Delhi Pan: Aabci8901M (Appellant) (Respondent) The Deputy Commissioner Of Vs. Sentia Power Ltd, Income Tax (Formerly Known As Circle 23(2) Indiabulls Cseb Bhiyathan New Delhi Power Ltd), M-62 & 63, 1St Floor, Connaught Place, New Delhi Pan: Aabci8901M (Appellant) (Respondent)

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri Arun Kumar Yadav, Sr DR

…incurred for the purpose of its business, it is to be allowed as revenue expenses. In support of its argument, the assessee had relied upon the following case laws: i. CIT vs. Walchand & Co. (P) Ltd. [1967] 65 ITR 381 ii. Titanium Products Ltd. vs. CIT [1966] 60 ITR 227 (SC) iii. Sasson J. David & Co. (P) Ltd. vs. CIT [1979] 118 ITR 261 (SC) iv. Cargo Holding Private Workers Pool vs. DCIT (ITAT Vizag) v. Khalid Automobiles vs. Union of India (1995) Further, vide questionnaire dated 07/02/2014, the assessee was further asked the following: 1. The complete details of interest earned for Rs. 7,52,26,392/- with the n…

M/S. SENTIA POWER LTD.,,NEW DELHI vs. ITO, NEW DELHI

In the result, ITA number 146/Del/2016 filed by the learned assessing officer for assessment year 2012 – 13 is dismissed

ITA 3498/DEL/2015[2011-12]Status: DisposedITAT Delhi21 Aug 2019AY 2011-12

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishisentia Power Ltd, Vs. Ito, (Formerly Known As Indiabulls Ward-11(4), Cseb Bhiyathan Power Ltd), New Delhi M-62 & 63, 1St Floor, Connaught Place, New Delhi Pan: Aabci8901M (Appellant) (Respondent) The Deputy Commissioner Of Vs. Sentia Power Ltd, Income Tax (Formerly Known As Circle 23(2) Indiabulls Cseb Bhiyathan New Delhi Power Ltd), M-62 & 63, 1St Floor, Connaught Place, New Delhi Pan: Aabci8901M (Appellant) (Respondent)

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri Arun Kumar Yadav, Sr DR

…incurred for the purpose of its business, it is to be allowed as revenue expenses. In support of its argument, the assessee had relied upon the following case laws: i. CIT vs. Walchand & Co. (P) Ltd. [1967] 65 ITR 381 ii. Titanium Products Ltd. vs. CIT [1966] 60 ITR 227 (SC) iii. Sasson J. David & Co. (P) Ltd. vs. CIT [1979] 118 ITR 261 (SC) iv. Cargo Holding Private Workers Pool vs. DCIT (ITAT Vizag) v. Khalid Automobiles vs. Union of India (1995) Further, vide questionnaire dated 07/02/2014, the assessee was further asked the following: 1. The complete details of interest earned for Rs. 7,52,26,392/- with the n…

ACIT, CIRCLE-4(1), , VISAKHAPATNAM vs. SRI VARALAKSHMI JUTE TWINE MILLS PVT. LTD,, RAJAM

In the result, appeals filed by the Revenue in ITA

ITA 458/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…emuneration can only be justified if there be corresponding increase in profits of the employer is erroneous and relied on the decisions of Supreme Court in the case of CIT vs. Walchand & Co. (P) Ltd. (65 ITR 381 SC), and Travancore Titanium Products vs. CIT (60 ITR 227 (SC)). It was submitted that expenditure incurred voluntarily on the ground of commercial expediency and in order indirectly to facilitate the carrying on of the business may yet be expended wholly and exclusively for the purpose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Pan…

SRI VARALAKSHMI JUTE TWINE MILLS PRIVATE LIMITED,,RAJAM vs. DCIT, CIRCLE-4(1),, VISAKHAPATNAM

In the result, appeals filed by the Revenue in ITA

ITA 404/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…emuneration can only be justified if there be corresponding increase in profits of the employer is erroneous and relied on the decisions of Supreme Court in the case of CIT vs. Walchand & Co. (P) Ltd. (65 ITR 381 SC), and Travancore Titanium Products vs. CIT (60 ITR 227 (SC)). It was submitted that expenditure incurred voluntarily on the ground of commercial expediency and in order indirectly to facilitate the carrying on of the business may yet be expended wholly and exclusively for the purpose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Pan…

SRI VARALAKSHMI JUTE TWINE MILLS PVT. LTD.,,RAJAM vs. THE ITO,, SRIKAKULAM

In the result, appeals filed by the Revenue in ITA

ITA 349/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…emuneration can only be justified if there be corresponding increase in profits of the employer is erroneous and relied on the decisions of Supreme Court in the case of CIT vs. Walchand & Co. (P) Ltd. (65 ITR 381 SC), and Travancore Titanium Products vs. CIT (60 ITR 227 (SC)). It was submitted that expenditure incurred voluntarily on the ground of commercial expediency and in order indirectly to facilitate the carrying on of the business may yet be expended wholly and exclusively for the purpose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Pan…

THE DCIT,, VISAKHAPATNAM vs. SRI VARALAKSHMI JUTE MILLS PVT LTD,, SRIKAKULAM

In the result, appeals filed by the Revenue in ITA

ITA 340/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…emuneration can only be justified if there be corresponding increase in profits of the employer is erroneous and relied on the decisions of Supreme Court in the case of CIT vs. Walchand & Co. (P) Ltd. (65 ITR 381 SC), and Travancore Titanium Products vs. CIT (60 ITR 227 (SC)). It was submitted that expenditure incurred voluntarily on the ground of commercial expediency and in order indirectly to facilitate the carrying on of the business may yet be expended wholly and exclusively for the purpose of the trade CIT vs. Delhi Safe Deposit Co. Ltd. (13 ITR 756 SC); CIT vs. Sales Magnesite P Ltd. 214 ITR 1; CIT vs. Pan…