Commissioner of Income-tax v. Motor Industries Company Limited

223 ITR 112High Court1997#1803 most cited

What is Commissioner of Income-tax v. Motor Industries Company Limited authority for?

An expenditure is deductible under Section 37(1) if incurred out of commercial expediency for the assessee's business, even if it does not directly yield profit or benefit the assessee alone. The 'for the purpose of business' test focuses on the nature of the expense and its business nexus, rather than immediate profitability.

64

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2006 to 2026.

Also referred to as

CIT v. Motor Industries Company Limited · 223 ITR 112 · Section 37(1) · Business expenditure · Commercial expediency · Wholly and exclusively for business · Deductibility of expenses · Interest free advances · Income Tax Act 1961 · Section 40A(2)(b)

Also reported as

55 Taxmann.com 377

Sections most often in play

Section 143(3)Section 1961Section 195Section 37(1)Section 132Section 143(2)Section 144Section 153C

Issues it is cited on

section 5(2)(b)section 153cofsection 10(2)(xv)section 43b(f)section 145(1)section 5(2)section 46section 9(1)(i)section 35dinterest free advancesmaximum marginal ratesection 40a(2)(b)

Judgments citing Commissioner of Income-tax v. Motor Industries Company Limited

ASST CIT 2(2)(1), MUMBAI vs. STATE BANK OF INDIA, MUMBAI

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

ITA 3882/MUM/2017[2010-11]Status: DisposedITAT Mumbai21 Apr 2026AY 2010-11

Bench: Smt. Beena Pillai () & Shri Jagadish ()

Section 14ASection 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 43B

…w certain prudential norms of accounting. Such accounting principle based on prudential norms can not be taken as the basis for claiming deduction under Income-Act. This view has been endorsed by the Karnataka High Court in the case of Motor Industries Ltd., (229 ITR 137). The court observed that all liabilities which a businessman might provide for in his books following prudential norms are not necessarily tax deductible. Under the Income-tax Act only a liability in praesenti is allowable as against a liability in future. The provision made by the bank is not an ascertained liability and it also can not be said…

STATE BANK OF INDIA,MUMBAI vs. ASST CIT CIR 2(2), MUMBAI

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

ITA 3680/MUM/2017[2010-11]Status: DisposedITAT Mumbai21 Apr 2026AY 2010-11

Bench: Smt. Beena Pillai () & Shri Jagadish ()

Section 14ASection 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 43B

…w certain prudential norms of accounting. Such accounting principle based on prudential norms can not be taken as the basis for claiming deduction under Income-Act. This view has been endorsed by the Karnataka High Court in the case of Motor Industries Ltd., (229 ITR 137). The court observed that all liabilities which a businessman might provide for in his books following prudential norms are not necessarily tax deductible. Under the Income-tax Act only a liability in praesenti is allowable as against a liability in future. The provision made by the bank is not an ascertained liability and it also can not be said…

RAMJIDAS BUDHRAJA CHARITABLE TRUST (SGM),CHHINDWARA vs. INCOME TAX OFFICER EXEMPTION, JABALPUR

In the result, the appeal of the assessee is dismissed

ITA 235/JAB/2025[2015-16]Status: DisposedITAT Jabalpur19 Feb 2026AY 2015-16

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

Section 10Section 11Section 11(2)Section 143(1)Section 143(3)Section 147Section 148

…Tribunal and by the High Court which otherwise binds the authority in correctly assessing the tax liability on the ground of limitation. (iv) COMMISSIONER OF INCOME TAX vs. MOTOR INDUSTRIES CO. LTD. I.T.A. No.235/JAB/2025 Assessment Year: 2015-16 12 (1998) 229 ITR 137 (Kar): (1998) 144 CTR (Kar) 101: (1998) 97 TAXMAN 7 (Kar) Business expenditure-Export markets development allowance-Claim for the first time before CIT(A)-Though the assessee had not claimed weighted deduction before the ITO, the CIT(A) entertained the claim-When the necessary material was available and the weighted deduction is permissible under…

VSN AND JEEVAN INFRA DEVELOPERS, PERURU PANCHAYAT,TIRUPATHI vs. DCIT, CENTRAL CIRCLE, TIRUPATHI, TIRUPATHI

In the result, the appeal of the assessee is allowed

ITA 707/HYD/2017[2009-10]Status: DisposedITAT Hyderabad19 Nov 2025AY 2009-10

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Madhusudan Sawdiaआ.अपी.सं /Ita No.707/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2009-10) Vsn & Jeevan Infra Vs. Dy.Cit Developers, Peruru Central Circle Panchayat, Tirupati Tirupati Pan:Aaifv3414B (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Advocate H Srinivasulu राज" व "ारा/Revenue By:: Dr. Sachin Kumar, Sr. Dr सुनवाई की तारीख/Date Of Hearing: 04/11/2025 घोषणा की तारीख/Pronouncement: 19/11/2025 आदेश/Order Per Madhusudan Sawdia, A.M.: This Appeal Is Filed By Vsn & Jeevan Infra Developers (“The Assessee”), Feeling Aggrieved By The Order Passed By The Learned Commissioner Of Income Tax (Appeals)-3, Visakhapatnam (“Ld. Cit(A)”) Dated 21.02.2017 For The A.Y 2009- 10. Page 1 Of 12

For Appellant: Advocate H SrinivasuluFor Respondent: : Dr. Sachin Kumar, Sr. DR
Section 132Section 142(1)Section 153Section 153CSection 68

…e filing the appeal. The appellant submits the following case laws for the kind consideration of the Hon'ble ITAT for admission of this additional grounds:- (a) Jehangir H.C. Jehangir v ITO (2015) 229 Taxman 392 (Bom.) (HC) (b) CIT vs. Motor Industries Co Ltd 229 ITR 137 (Kar.) Page 2 of 12 ITA No 707 of 2017 VSN and Jeevan Infra Developers (c) Kandi Industrial (P) Ltd vs. DCIT (2006) 100 ITD 462 (ITAT Kolkata) (d) CIT vs. B.G. Shirke Construction Technology (P) Ltd 79 Taxmann.com 306 (Bombay) 2017. (e) NTPC vs. CIT 229 ITR 382 (S.C) (f) NU Pharma logics (P) Ltd Hyderabad vs. ITO ITAT Hyd. Decision dated 28.02…

RAMAMURTHY PRAVEEN CHANDRA,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, we have allowed grounds raised by the assessee as per above terms for all the years

ITA 622/BANG/2025[2016-17]Status: DisposedITAT Bangalore29 Sept 2025AY 2016-17

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

For Appellant: Shri. Narendra Sharma, AdvocateFor Respondent: Shri. Sankar Ganesh D, Add. CIT(DR)(ITAT), Bangalore
Section 132Section 143Section 153Section 153ASection 153CSection 250

…Circle 2 [3] Bangalore Vs. Smt. Pallavi Ravi, in ITA Nos. 272 to 274/Bang/2018, order dated 16/05/2019  Sree Lakshmi Venkateshwara Minerals Vs. DCIT, reported in [2021] 123  taxmann.com 255 [Bangalore - Trib] [30/09/2020]  CIT Vs. Motor Industries Co Ltd., 223 ITR 112 ITA Nos.619 to 622/Bang/2025 Page 22 of 26  Sassoon J David it Co., [P] Ltd., Vs. CIT, 118 ITR 261  M/s. Bombay Steam Navigation Company, reported in 56 ITR 52  CIT Vs. Abhoyjan Tea Estate [P] Ltd. 110 ITR 251  Eastern Investments Ltd Vs. CIT [1951] 20 ITR 1 [SC];  CIT Vs. Chaandulal Keshavlal & Co., [1960] 38 ITR 601 [SC];  CIT Vs. Nainit…

RAMAMURTHY PRAVEEN CHANDRA,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, we have allowed grounds raised by the assessee as per above terms for all the years

ITA 621/BANG/2025[2015-16]Status: DisposedITAT Bangalore29 Sept 2025AY 2015-16

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

For Appellant: Shri. Narendra Sharma, AdvocateFor Respondent: Shri. Sankar Ganesh D, Add. CIT(DR)(ITAT), Bangalore
Section 132Section 143Section 153Section 153ASection 153CSection 250

…Circle 2 [3] Bangalore Vs. Smt. Pallavi Ravi, in ITA Nos. 272 to 274/Bang/2018, order dated 16/05/2019  Sree Lakshmi Venkateshwara Minerals Vs. DCIT, reported in [2021] 123  taxmann.com 255 [Bangalore - Trib] [30/09/2020]  CIT Vs. Motor Industries Co Ltd., 223 ITR 112 ITA Nos.619 to 622/Bang/2025 Page 22 of 26  Sassoon J David it Co., [P] Ltd., Vs. CIT, 118 ITR 261  M/s. Bombay Steam Navigation Company, reported in 56 ITR 52  CIT Vs. Abhoyjan Tea Estate [P] Ltd. 110 ITR 251  Eastern Investments Ltd Vs. CIT [1951] 20 ITR 1 [SC];  CIT Vs. Chaandulal Keshavlal & Co., [1960] 38 ITR 601 [SC];  CIT Vs. Nainit…

RAMAMURTHY PRAVEEN CHANDRA,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, we have allowed grounds raised by the assessee as per above terms for all the years

ITA 620/BANG/2025[2014-15]Status: DisposedITAT Bangalore29 Sept 2025AY 2014-15

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

For Appellant: Shri. Narendra Sharma, AdvocateFor Respondent: Shri. Sankar Ganesh D, Add. CIT(DR)(ITAT), Bangalore
Section 132Section 143Section 153Section 153ASection 153CSection 250

…Circle 2 [3] Bangalore Vs. Smt. Pallavi Ravi, in ITA Nos. 272 to 274/Bang/2018, order dated 16/05/2019  Sree Lakshmi Venkateshwara Minerals Vs. DCIT, reported in [2021] 123  taxmann.com 255 [Bangalore - Trib] [30/09/2020]  CIT Vs. Motor Industries Co Ltd., 223 ITR 112 ITA Nos.619 to 622/Bang/2025 Page 22 of 26  Sassoon J David it Co., [P] Ltd., Vs. CIT, 118 ITR 261  M/s. Bombay Steam Navigation Company, reported in 56 ITR 52  CIT Vs. Abhoyjan Tea Estate [P] Ltd. 110 ITR 251  Eastern Investments Ltd Vs. CIT [1951] 20 ITR 1 [SC];  CIT Vs. Chaandulal Keshavlal & Co., [1960] 38 ITR 601 [SC];  CIT Vs. Nainit…

RAMAMURTHY PRAVEEN CHANDRA,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, we have allowed grounds raised by the assessee as per above terms for all the years

ITA 619/BANG/2025[2013-14]Status: DisposedITAT Bangalore29 Sept 2025AY 2013-14

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

For Appellant: Shri. Narendra Sharma, AdvocateFor Respondent: Shri. Sankar Ganesh D, Add. CIT(DR)(ITAT), Bangalore
Section 132Section 143Section 153Section 153ASection 153CSection 250

…Circle 2 [3] Bangalore Vs. Smt. Pallavi Ravi, in ITA Nos. 272 to 274/Bang/2018, order dated 16/05/2019  Sree Lakshmi Venkateshwara Minerals Vs. DCIT, reported in [2021] 123  taxmann.com 255 [Bangalore - Trib] [30/09/2020]  CIT Vs. Motor Industries Co Ltd., 223 ITR 112 ITA Nos.619 to 622/Bang/2025 Page 22 of 26  Sassoon J David it Co., [P] Ltd., Vs. CIT, 118 ITR 261  M/s. Bombay Steam Navigation Company, reported in 56 ITR 52  CIT Vs. Abhoyjan Tea Estate [P] Ltd. 110 ITR 251  Eastern Investments Ltd Vs. CIT [1951] 20 ITR 1 [SC];  CIT Vs. Chaandulal Keshavlal & Co., [1960] 38 ITR 601 [SC];  CIT Vs. Nainit…

ACCRECENT WAY MARKETING (P) LTD.,GUWAHATI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, GUWAHATI

ITA 358/GTY/2018[2010-11]Status: DisposedITAT Guwahati09 Jun 2025AY 2010-11

Bench: Shri Manomohan Das & Shri Rakesh Mishra

Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 251Section 68

…and wrongly included in Income and Tax paid thereon, same should be delete and taken as Liability of Assessee Company" 2. This claim was raised for the first time before the CIT(A) based on the following judicial precedents • CIT vs Motor Industries Co. Ltd. 229 ITR 137 (Kar) where it was held that The CIT (A) and ITAT can permit assessee to claim deduction not claimed before ITO when relevant material are an record. • Similarly Kolkata Branch of ITAT in the case of Kandi Industrial (P) Ltd V. DCIT (2006) 100 ITD 462 (ITAT KOL) held that if assessee entitled to certain relief, deduction or benefit, assessee shou…

THE ASSISTANT COMMR. OF INCOME TAX, GANDHIDHAM CIRCLE,, GANDHIDHAM-KUTCH vs. M/S KUTCH SALT & ALLIED INDUSTRIES LTD.,, GANDHIDHAM-KUTCH

In the result, cross objections filed by the assessee are allowed for statistical purposes

ITA 366/RJT/2017[2013-14]Status: DisposedITAT Rajkot17 Mar 2025AY 2013-14

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhait (Ss)A No.233& 234 & 235 & 236 /Rjt/2016 Assessment Year: (2009-10 To 2012-13) (Hybrid Hearing) Asstt. Commissioner Of Income Tax, Vs. M/S. Kutch Salt & Allied Gandhidham Circle, Industries Ltd., Gandhidham - Kutch Maitri Bhavan, Plot No.-18, Sector-8, Gandhidham - Kutch "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaact1769L (Appellant) (Respondent)

For Appellant: Shri K. C. Thacker, Ld. A.RFor Respondent: Shri Sanjay Punglia,Ld.CIT (DR)
Section 36(1)(iii)

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

THE ASSISTANT COMMR. OF INCOME TAX, GANDHIDHAM CIRCLE,, GANDHINAGAR vs. M/S KUTCH SALT & ALLIED INDUSTRIES LTD.,, GANDHIDHAM

In the result, cross objections filed by the assessee are allowed for statistical purposes

ITA 236/RJT/2016[2012-13]Status: DisposedITAT Rajkot17 Mar 2025AY 2012-13

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhait (Ss)A No.233& 234 & 235 & 236 /Rjt/2016 Assessment Year: (2009-10 To 2012-13) (Hybrid Hearing) Asstt. Commissioner Of Income Tax, Vs. M/S. Kutch Salt & Allied Gandhidham Circle, Industries Ltd., Gandhidham - Kutch Maitri Bhavan, Plot No.-18, Sector-8, Gandhidham - Kutch "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaact1769L (Appellant) (Respondent)

For Appellant: Shri K. C. Thacker, Ld. A.RFor Respondent: Shri Sanjay Punglia,Ld.CIT (DR)
Section 36(1)(iii)

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

THE ASSISTANT COMMR. OF INCOME TAX, GANDHIDHAM CIRCLE,, GANDHINAGAR vs. M/S KUTCH SALT & ALLIED INDUSTRIES LTD.,, GANDHIDHAM

In the result, cross objections filed by the assessee are allowed for statistical purposes

ITA 235/RJT/2016[2011-12]Status: DisposedITAT Rajkot17 Mar 2025AY 2011-12

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhait (Ss)A No.233& 234 & 235 & 236 /Rjt/2016 Assessment Year: (2009-10 To 2012-13) (Hybrid Hearing) Asstt. Commissioner Of Income Tax, Vs. M/S. Kutch Salt & Allied Gandhidham Circle, Industries Ltd., Gandhidham - Kutch Maitri Bhavan, Plot No.-18, Sector-8, Gandhidham - Kutch "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaact1769L (Appellant) (Respondent)

For Appellant: Shri K. C. Thacker, Ld. A.RFor Respondent: Shri Sanjay Punglia,Ld.CIT (DR)
Section 36(1)(iii)

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

THE ASSISTANT COMMR. OF INCOME TAX, GANDHIDHAM CIRCLE,, GANDHINAGAR vs. M/S KUTCH SALT & ALLIED INDUSTRIES LTD.,, GANDHIDHAM

In the result, cross objections filed by the assessee are allowed for statistical purposes

ITA 234/RJT/2016[2010-11]Status: DisposedITAT Rajkot17 Mar 2025AY 2010-11

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhait (Ss)A No.233& 234 & 235 & 236 /Rjt/2016 Assessment Year: (2009-10 To 2012-13) (Hybrid Hearing) Asstt. Commissioner Of Income Tax, Vs. M/S. Kutch Salt & Allied Gandhidham Circle, Industries Ltd., Gandhidham - Kutch Maitri Bhavan, Plot No.-18, Sector-8, Gandhidham - Kutch "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaact1769L (Appellant) (Respondent)

For Appellant: Shri K. C. Thacker, Ld. A.RFor Respondent: Shri Sanjay Punglia,Ld.CIT (DR)
Section 36(1)(iii)

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

THE ASSISTANT COMMR. OF INCOME TAX, GANDHIDHAM CIRCLE,, GANDHINAGAR vs. M/S KUTCH SALT & ALLIED INDUSTRIES LTD.,, GANDHIDHAM

In the result, cross objections filed by the assessee are allowed for statistical purposes

ITA 233/RJT/2016[2009-10]Status: DisposedITAT Rajkot17 Mar 2025AY 2009-10

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhait (Ss)A No.233& 234 & 235 & 236 /Rjt/2016 Assessment Year: (2009-10 To 2012-13) (Hybrid Hearing) Asstt. Commissioner Of Income Tax, Vs. M/S. Kutch Salt & Allied Gandhidham Circle, Industries Ltd., Gandhidham - Kutch Maitri Bhavan, Plot No.-18, Sector-8, Gandhidham - Kutch "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaact1769L (Appellant) (Respondent)

For Appellant: Shri K. C. Thacker, Ld. A.RFor Respondent: Shri Sanjay Punglia,Ld.CIT (DR)
Section 36(1)(iii)

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

KANDLA EXPORT CORPORATION,,GANDHIDHAM vs. THE DY. COMMR. OF INCOME TAX, CEN. CIR.-2(3),, AHMEDABAD

In the result, the summaries and concise ground No

ITA 155/RJT/2016[2012-13]Status: DisposedITAT Rajkot28 Feb 2025AY 2012-13

Bench: Dr. Arjun Lal Saini, Am.& Dinesh Mohan Sinha, Jm आयकरअपीलसं./It(Ss)A No.135/Ahd/2016 ("नधा"रणवष" / Assessment Year: (2011-12) (Hybrid Hearing) The Deputy Commissioner Of Vs. Kandla Exports Corporation Income – Tax, Central Circle – 2(3), Plot No. 18, Maitri Bhavan, 3Rd Floor, A – 305, Aayakar Bhavan, Sector – 8, Gandhidham, Ahmedabad – 370201 Kutch- 370201 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfk1906F (Assessee) (Respondent) आयकरअपीलसं./It(Ss)A No.136/Ahd/2016 ("नधा"रणवष" / Assessment Year: (2012-13) (Hybrid Hearing) The Deputy Commissioner Of Kandla Exports Corporation Vs Income – Tax, Central Circle – Plot No. 18, Maitri Bhavan, . 2(3), 3Rd Floor, A – 305, Aayakar Sector – 8, Gandhidham, Bhavan, Ahmedabad - 370201 Kutch- 370201 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfk1906F (Assessee) (Respondent)

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

DCIT, CENTRAL CIRCLE 2, RAJKOT vs. ADITYA BIRLA GLOBAL TRADING (INDIA) PVT. LTD. (SWISS SINGAPORE INDIA PVT. LTD., GANDHIDHAM

In the result, appeal filed by the assessee, in ITA No

ITA 353/RJT/2024[2017-18]Status: DisposedITAT Rajkot13 Feb 2025AY 2017-18

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

Section 143(3)Section 195Section 37(1)Section 40

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2 , RAJKOT vs. ADITYA BIRLA GLOBAL TRADING(INDIA) PVT.LTD. (SWISS SINGAPORE INDIA PVT. LTD.), GANDHIDHAM

In the result, appeal filed by the assessee, in ITA No

ITA 284/RJT/2024[2016-17]Status: DisposedITAT Rajkot13 Feb 2025AY 2016-17

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

Section 143(3)Section 195Section 37(1)Section 40

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

ADITYA BIRLA GLOBAL TRADING (INDIA) PRIVATE LIMITED,GUJARAT vs. DCIT-ACIT CENT-2 RKT, RAJKOT

In the result, appeal filed by the assessee, in ITA No

ITA 226/RJT/2024[2018-2019]Status: DisposedITAT Rajkot13 Feb 2025AY 2018-2019

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

Section 143(3)Section 195Section 37(1)Section 40

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

ADITYA BIRLA GLOBAL TRADING (INDIA) PRIVATE LIMITED,GUJARAT vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, GANDHIHDAM, GANDHIDHAM, GUJARAT

In the result, appeal filed by the assessee, in ITA No

ITA 225/RJT/2024[2015-2016]Status: DisposedITAT Rajkot13 Feb 2025AY 2015-2016

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

Section 143(3)Section 195Section 37(1)Section 40

…without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction for the same. Even the Hon'ble Karnataka High Court in the case Commissioner of Income-tax vs Motor Industries Company Limited (1907) (223 ITR 112) was of the view that the commercial expediency of a businessman's decision to incur, an expenditure cannot be tested on the touchstone of strict legal liability to incur such an expenditure. Such decisions in the very nature of things have to be taken from a business point of view and have to be respected by the authorities no matter that it may…

ADDL. CIT-(08), NEW DELHI vs. SOPRA INDIA PVT. LTD.,, NEW DELHI

In the result, appeal of the Revenue thus is dismissed

ITA 1175/DEL/2019[2012-13]Status: DisposedITAT Delhi16 Oct 2023AY 2012-13
Section 143(3)Section 145

…here are number of provisions in the 1.T. Act which require the assessee to follow a different method than followed in its books of account. In this regard, the Assessing Officer referred to the decision in the case of CIT v. Motor Industries Company Limited (229 ITR 137), wherein, it has been held that the income tax law does not allow as expenses all the deductions a prudent trader would make in computing his profits. It is only the actual liability in present which is allowable and not liability in future which for the time being, is only contingent. It was also held that what a prudent trader sets apart to me…

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