Commissioner of Income Tax v. India Discount Co. Ltd.

75 ITR 191Supreme Court of India1970#2551 most cited

What is Commissioner of Income Tax v. India Discount Co. Ltd. authority for?

The tax treatment of an expense or transaction is determined by its true nature, and not solely by its nomenclature or how it is recorded in the books of accounts for accounting purposes.

46

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2007 to 2026.

Also referred to as

Commissioner of Income Tax v. India Discount Co. Ltd. · 75 ITR 191 · Supreme Court · books of account · true nature of transaction · allowability of expense · section 37(1) · business expenditure · accounting entries · income tax assessment

Sections most often in play

Section 143(3)Section 37(1)Section 194HSection 271(1)(c)Section 35ABASection 35ABBSection 40(a)(ia)Section 263

Issues it is cited on

section 35abbsection 43(3)section 194hintangible assetsprofits and gains of business or professionsection 35section 30section 201(1)section 253revenue expendituresection 32section 251(2)

Judgments citing Commissioner of Income Tax v. India Discount Co. Ltd.

ASST. COMMISSIONER OF INCOME TAX, MUMBAI vs. RELIANCE RETAIL LIMITED, MUMBAI

In the result, the appeal filed by the Revenue is dismissed, whereas the appeal filed by the assessee is partly allowed

ITA 4244/MUM/2025[2019-20]Status: DisposedITAT Mumbai10 Mar 2026AY 2019-20

Bench: SHRI SAKTIJIT DEY (Vice President), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)

Section 135Section 143(3)Section 144BSection 14ASection 250Section 37(1)Section 80GSection 80JSection 92C

…owable under the Act cannot be denied merely because a different treatment was given in the books of account. 61. Further reliance was placed on the following decisions:  Kedarnath Jute Mfg. Co. Ltd. v. CIT (82 ITR 363) (SC)  CIT v. India Discount Co. Ltd. (75 ITR 191) (SC)  Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (227 ITR 172) (SC)  CIT v. Berger Paints (India) Ltd. (126 Taxman 435) (Cal HC)  CIT v. Sakthi Soyas Ltd. (283 ITR 94) (Mad HC)  DCIT v. Axis Asset Management Co. Ltd. (130 taxmann.com 223) (Mum Trib.) 62. It was also submitted that in the scrutiny assessment for A.Y. 2017–18, the Ass…

RELIANCE RETAIL LIMITED ,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 8(1)(1), MUMBAI

ITA 3510/MUM/2025[2019-20]Status: DisposedITAT Mumbai10 Mar 2026AY 2019-20

Bench: Shri Saktijit Dey & Shri Makarand Vasant Mahadeokar

Section 135Section 143(3)Section 144BSection 14ASection 250Section 37(1)Section 80GSection 80JSection 92C

…owable under the Act cannot be denied merely because a different treatment was given in the books of account. 61. Further reliance was placed on the following decisions: • Kedarnath Jute Mfg. Co. Ltd. v. CIT (82 ITR 363) (SC) • CIT v. India Discount Co. Ltd. (75 ITR 191) (SC) • Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (227 ITR 172) (SC) • CIT v. Berger Paints (India) Ltd. (126 Tахтап 435) (Cal HC) • CIT v. Sakthi Soyas Ltd. (283 ITR 94) (Mad HC) • DCIT v. Axis Asset Management Co. Ltd. (130 taxmann.com 223) (Mum Trib.) 62. It was also submitted that in the scrutiny assessment for A.Υ. 2017-18, the Ass…

DCIT, C-V, LUDHIANA vs. M/S HERO CYCLES LTD., LUDHIANA

In the result, appeal of the Department is dismissed and the appeal of the assessee is allowed

ITA 588/CHANDI/2018[2012-13]Status: DisposedITAT Chandigarh08 Sept 2025AY 2012-13

Bench: SHRI. RAJPAL YADAV (Vice President), SHRI. KRINWANT SAHAY, AM आयकर अपील सं. / ITA No. 588/Chd/2018 निर्धारण वर्ष / Assessment Years : 2012-13 The DCIT C-V, Ludhiana बनाम M/s Hero Cycles Ltd. Hero Nagar, G.T. Road Ludhiana स्थायी लेखा सं./PAN NO: AAACH4073P अपीलार्थी/Appellant प्रत्यर्थी / Respondent आयकर अपील सं. / ITA No. 473/Chd/2018 निर्धारण वर्ष / Assessment Years : 2012-13 M/s Hero Cycles Ltd. Hero Nagar, G.T. Road Ludhiana बनाम The ACIT C-V, Ludhiana स्थायी लेखा सं./PAN NO: AAACH4073P

For Appellant: Shri Ashwani Kumar, Shri Ashish Aggarwal &For Respondent: Shri Manav Bansal, CIT, DR
Section 10(38)Section 143(1)Section 14ASection 36(1)(iii)

…, 82 ITR 363 (SC) has observed that whether the assessee is entitled to a particular deduction or not will depend on the provisions of law relating thereto and not the view which the assessee may take. Similarly in the case of CIT vs. India Discount Co. Ltd., 75 ITR 191 (SC), it was observed by the Hon'ble Supreme Court that it is well established that a receipt which in law cannot be regarded as income cannot become so merely because the assessee wrongly credited it to the profit and loss account . Thus, in our considered view, if the assessee is able to show that the disallowance made by it had been wrongly mad…

ACIT CIRCLE 25(1) , DELHI vs. TATA TELESERVICES LTD. , DELHI

Accordingly, this issue is raised in grounds of appeal No.4 of the Revenue in all these years is dismissed

ITA 17/DEL/2022[2016-17]Status: DisposedITAT Delhi26 Aug 2025AY 2016-17

Bench: Shri Vikas Awasthy & Shri Manish Agarwalita No.5665/Del/2019 (Assessment Year 2012-13)

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

TATA TELESERVICES LTD.,NEW DELHI vs. DCIT, CIRCLE-25(1), NEW DELHI

Accordingly, this issue is raised in grounds of appeal No.4 of the Revenue in all these years is dismissed

ITA 337/DEL/2021[2016-17]Status: DisposedITAT Delhi26 Aug 2025AY 2016-17

Bench: Shri Vikas Awasthy & Shri Manish Agarwalita No.5665/Del/2019 (Assessment Year 2012-13)

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

DCIT CIRCLE 25(1), NEW DELHI vs. TATA TELESERVICES LTD., NEW DELHI

Accordingly, this issue is raised in grounds of appeal No.4 of the Revenue in all these years is dismissed

ITA 5927/DEL/2019[2015-16]Status: DisposedITAT Delhi26 Aug 2025AY 2015-16

Bench: Shri Vikas Awasthy & Shri Manish Agarwalita No.5665/Del/2019 (Assessment Year 2012-13)

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

DCIT CIRCLE 25(1), NEW DELHI vs. TATA TELESERVICES LTD., NEW DELHI

Accordingly, this issue is raised in grounds of appeal No.4 of the Revenue in all these years is dismissed

ITA 5926/DEL/2019[2014-15]Status: DisposedITAT Delhi26 Aug 2025AY 2014-15

Bench: Shri Vikas Awasthy & Shri Manish Agarwalita No.5665/Del/2019 (Assessment Year 2012-13)

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

DCIT CIRCLE - 25(1), NEW DELHI vs. TATA TELESERVICES LTD.,, NEW DELHI

Accordingly, this issue is raised in grounds of appeal No.4 of the Revenue in all these years is dismissed

ITA 5925/DEL/2019[2013-14]Status: DisposedITAT Delhi26 Aug 2025AY 2013-14

Bench: Shri Vikas Awasthy & Shri Manish Agarwalita No.5665/Del/2019 (Assessment Year 2012-13)

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

DCIT CIRCLE - 25(1), NEW DELHI vs. TATA TELESERVICES LTD.,, NEW DELHI

Accordingly, this issue is raised in grounds of appeal No.4 of the Revenue in all these years is dismissed

ITA 5924/DEL/2019[2012-13]Status: DisposedITAT Delhi26 Aug 2025AY 2012-13

Bench: Shri Vikas Awasthy & Shri Manish Agarwalita No.5665/Del/2019 (Assessment Year 2012-13)

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

TATA TELESERVICES LTD.,,NEW DELHI vs. ACIT CIRCLE - 25(1), NEW DELHI

In the result, the appeal of the assessee in ITA

ITA 5668/DEL/2019[2015-16]Status: DisposedITAT Delhi26 Aug 2025AY 2015-16

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

TATA TELESERVICES LTD.,,NEW DELHI vs. ACIT CIRCLE - 25(1), NEW DELHI

Accordingly, this issue is raised in grounds of appeal No.4 of the Revenue in all these years is dismissed

ITA 5666/DEL/2019[2013-14]Status: DisposedITAT Delhi26 Aug 2025AY 2013-14

Bench: Shri Vikas Awasthy & Shri Manish Agarwalita No.5665/Del/2019 (Assessment Year 2012-13)

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

TATA TELESERVICES LTD.,,NEW DELHI vs. ACIT CIRCLE - 25(1), NEW DELHI

Accordingly, this issue is raised in grounds of appeal No.4 of the Revenue in all these years is dismissed

ITA 5665/DEL/2019[2012-13]Status: DisposedITAT Delhi26 Aug 2025AY 2012-13

Bench: Shri Vikas Awasthy & Shri Manish Agarwalita No.5665/Del/2019 (Assessment Year 2012-13)

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

TATA TELESERVICES LTD.,NOIDA vs. ACIT, CIRCLE- 25(1), NEW DELHI

Accordingly, this issue is raised in grounds of appeal No.4 of the Revenue in all these years is dismissed

ITA 4150/DEL/2017[2011-12]Status: DisposedITAT Delhi26 Aug 2025AY 2011-12

Bench: Shri Vikas Awasthy & Shri Manish Agarwalita No.5665/Del/2019 (Assessment Year 2012-13)

Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon'ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

TATA TELESERVICES LTD.,NOIDA vs. ACIT, NEW DELHI

The appeals are allowed and impugned additions stand deleted

ITA 28/DEL/2017[2010-11]Status: DisposedITAT Delhi18 Jun 2025AY 2010-11

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

For Appellant: Shri Salil Kapoor, Shri Shivam YadavFor Respondent: Shri Mahesh Kumar, CIT-DR
Section 143(3)Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon’ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

TATA TELESERVICES LTD.,NOIDA vs. ACIT, NEW DELHI

The appeals are allowed and impugned additions stand deleted

ITA 27/DEL/2017[2009-10]Status: DisposedITAT Delhi18 Jun 2025AY 2009-10

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

For Appellant: Shri Salil Kapoor, Shri Shivam YadavFor Respondent: Shri Mahesh Kumar, CIT-DR
Section 143(3)Section 37(1)

…ve factor of allowability of expense. It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. Reliance can be placed on decision in Commissioner of Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax Vs. Provincial Farmers (P) Ltd. 108 ITR 219 (Cal) and KCP Ltd. Vs. CIT, 245 ITR 421, which have been considered by Hon’ble Delhi High court in the case of Commissioner of Income-tax v Arvind Kumar Jain {[2012] 18 taxmann.com 132 (Delhi HC)}. In the present case after going through the relevant evidence of so called…

SHRI VEERSHAIV CO. OP. BANK LTD.,KOLHAPUR vs. ACIT, CIRCLE 2, KOLHAPUR , KOLHAPUR

In the result, the appeal in ITA No

ITA 175/PUN/2025[2017-18]Status: DisposedITAT Pune09 Apr 2025AY 2017-18

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.175/Pun/2025 Assessment Year : 2017-18

For Appellant: Shri Pramod S. ShingteFor Respondent: Shri A.D. Kulkarni
Section 143(3)Section 250

…aid decision, in our opinion, applies to this case also. It is well settled in income-tax law that book keeping entries are not decisive or determinative of the true nature of the entries as held by the Supreme Court in CIT vs. India Discount Co. Ltd. [1970] 75 ITR 191 and in Godhra Electricity Co. Ltd v. CIT [1997] 225 ITR 746 (SC). It has been held in those decisions that the court has to see the true nature of the receipts and not go only by the entry in the books of account. We agree with the Tribunal that these deposits are really capital receipts and not revenue receipts. In Chowringhee Sales Bureau P. Lt…

SUPER DAIRY FARM.,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-4(1)., HYDERABAD

ITA 1288/HYD/2017[2013-14]Status: DisposedITAT Hyderabad28 Feb 2024AY 2013-14

Bench: Shri R.K. Panda & Shri Laliet Kumarआ.अपी.सं / Ita Nos.1287 & 1288/Hyd/2017 (निर्धारण वर्ष / Assessment Years: 2012-13 & 2013-14) Super Dairy Farm, Vs. The Assistant Commissioner Of Hyderabad. Income Tax, Circle – 4(1), Hyderabad. Pan : Aajfs7269L. अपीलार्थी / Appellant प्रत्‍यर्थी / Respondent आ.अपी.सं / Ita No.1265/Hyd/2017 (निर्धारण वर्ष / Assessment Year: 2013-14) The Assistant Vs. Super Dairy Farm, Commissioner Of Income Hyderabad. Tax, Circle – 4(1), Hyderabad. Pan : Aajfs7269L. अपीलार्थी / Appellant प्रत्‍यर्थी / Respondent

For Appellant: Shri Sashank Dundu, C.AFor Respondent: Shri K. Madhusudan, CIT-DR
Section 143(3)Section 48

…e the legal effect of any transaction and further contended that legality of any transaction needs to be established independently. In this regard, the ld.DR relied on the decision of Hon'ble Supreme Court in the case of India Discount Co. Limited reported in 75 ITR 191 and the decision in the case of Kedarnath Jute Mfg. Co. Ltd., reported in 82 ITR 363. In support of its case, the ld.DR has filed a detailed rejoinder / written submissions, which is to the following effect : “2 Assessee’s A.R. in his written submissions argued that the firm (M/s. Super Diary Farm) is engaged in dairy business, selling milk and mi…

SUPER DAIRY FARM.,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-4(1)., HYDERABAD

ITA 1287/HYD/2017[2012-13]Status: DisposedITAT Hyderabad28 Feb 2024AY 2012-13

Bench: Shri R.K. Panda & Shri Laliet Kumarआ.अपी.सं / Ita Nos.1287 & 1288/Hyd/2017 (निर्धारण वर्ष / Assessment Years: 2012-13 & 2013-14) Super Dairy Farm, Vs. The Assistant Commissioner Of Hyderabad. Income Tax, Circle – 4(1), Hyderabad. Pan : Aajfs7269L. अपीलार्थी / Appellant प्रत्‍यर्थी / Respondent आ.अपी.सं / Ita No.1265/Hyd/2017 (निर्धारण वर्ष / Assessment Year: 2013-14) The Assistant Vs. Super Dairy Farm, Commissioner Of Income Hyderabad. Tax, Circle – 4(1), Hyderabad. Pan : Aajfs7269L. अपीलार्थी / Appellant प्रत्‍यर्थी / Respondent

For Appellant: Shri Sashank Dundu, C.AFor Respondent: Shri K. Madhusudan, CIT-DR
Section 143(3)Section 48

…e the legal effect of any transaction and further contended that legality of any transaction needs to be established independently. In this regard, the ld.DR relied on the decision of Hon'ble Supreme Court in the case of India Discount Co. Limited reported in 75 ITR 191 and the decision in the case of Kedarnath Jute Mfg. Co. Ltd., reported in 82 ITR 363. In support of its case, the ld.DR has filed a detailed rejoinder / written submissions, which is to the following effect : “2 Assessee’s A.R. in his written submissions argued that the firm (M/s. Super Diary Farm) is engaged in dairy business, selling milk and mi…

ASST. COMMISSIONER OF INCOME TAX, CIRCLE-4(1)., HYDERABAD vs. SUPER DAIRY FARM., HYDERABAD

ITA 1265/HYD/2017[2013-14]Status: DisposedITAT Hyderabad28 Feb 2024AY 2013-14

Bench: Shri R.K. Panda & Shri Laliet Kumarआ.अपी.सं / Ita Nos.1287 & 1288/Hyd/2017 (निर्धारण वर्ष / Assessment Years: 2012-13 & 2013-14) Super Dairy Farm, Vs. The Assistant Commissioner Of Hyderabad. Income Tax, Circle – 4(1), Hyderabad. Pan : Aajfs7269L. अपीलार्थी / Appellant प्रत्‍यर्थी / Respondent आ.अपी.सं / Ita No.1265/Hyd/2017 (निर्धारण वर्ष / Assessment Year: 2013-14) The Assistant Vs. Super Dairy Farm, Commissioner Of Income Hyderabad. Tax, Circle – 4(1), Hyderabad. Pan : Aajfs7269L. अपीलार्थी / Appellant प्रत्‍यर्थी / Respondent

For Appellant: Shri Sashank Dundu, C.AFor Respondent: Shri K. Madhusudan, CIT-DR
Section 143(3)Section 48

…e the legal effect of any transaction and further contended that legality of any transaction needs to be established independently. In this regard, the ld.DR relied on the decision of Hon'ble Supreme Court in the case of India Discount Co. Limited reported in 75 ITR 191 and the decision in the case of Kedarnath Jute Mfg. Co. Ltd., reported in 82 ITR 363. In support of its case, the ld.DR has filed a detailed rejoinder / written submissions, which is to the following effect : “2 Assessee’s A.R. in his written submissions argued that the firm (M/s. Super Diary Farm) is engaged in dairy business, selling milk and mi…

SACHIN NOTIFIED AREA,SURAT vs. PR. COMMISSIONER OF INCOME TAX , SURAT - 1, SURAT

In the result, appeal filed by the assessee is allowed

ITA 343/SRT/2022[2017-18]Status: DisposedITAT Surat26 Jun 2023AY 2017-18

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.343/Srt/2022 "नधा"रण वष"/Assessment Year: (2017-18) (Physical Hearing) Sachin Notified Area, Vs. The Pcit, Surat-1 Plot No.5719, Unnati Building, Sachin Gidc, Sachin, Surat-394230. (Appellant) (Respondent) "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaals0146H Shri P. M. Jagasheth, Ca Appellant By Shri Ravinder Sindhu, Cit(Dr) Respondent By Date Of Hearing 31/05/2023 Date Of Pronouncement 26/06/2023

Section 143(3)Section 263

…or not or whether expenses are allowable as deduction or not. Courts are compelled to go by the true nature of the receipts and not go by the entry in the books of account, vide landmark judicial precedent in the case of CIT vs. India Discount Co. Ltd. (1970) 75 ITR 191 (195) and Kedernath Jute Manufacturing Co. Ltd. vs. CIT (1971) 82 ITR 363 (367). Hence, we do not agree with ld DR for the Revenue that because of violation of accounting principles, there is a tax avoidance on the part of the assessee under consideration. Therefore, order passed by the assessing officer is neither erroneous nor prejudicial to the…

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