CWT v. Ramaraju Surgical Cotton Mills Ltd.

63 ITR 478Supreme Court of India1967#3496 most cited

What is CWT v. Ramaraju Surgical Cotton Mills Ltd. authority for?

A business is considered 'set up' only when it is ready to function and discharge its intended purpose, not merely when preparatory operations have begun. This readiness signifies the stage where the unit can commence functioning as a business or manufacturing organization.

34

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2013 to 2024.

Also referred to as

Ramaraju Surgical Cotton Mills Ltd. · 63 ITR 478 · setting up of business · business commencement · readiness to function · manufacturing organization · depreciation allowance · pre-operative expenses

Issues it is cited on

companyindiabusiness

Judgments citing CWT v. Ramaraju Surgical Cotton Mills Ltd.

VIATON ENERGY PRIVATE LIMITED,MUMBAI vs. ITO, WARD-17(4), HYD, HYDERABAD

In the result, appeal of the assessee is dismissed

ITA 1280/HYD/2016[2012-13]Status: DisposedITAT Hyderabad21 Mar 2024AY 2012-13

Bench: Shri Rama Kanta Panda & Shri K. Narasimha Chary

For Appellant: Shri Dharmesh Shah &For Respondent: Shri Shakeer Ahamed, DR
Section 143(3)

…stalled and the assessee is in a position to produce energy, it cannot be said that the business has been set up and for this purpose, learned CIT(A) placed reliance on the decision of the Hon’ble Apex Court in the case of Ramaraju Surgical Cotton Mills Ltd., 63 ITR 478. Further, learned CIT(A) observed that acquiring land, placing orders for machinery and raw material are merely operations for setting up of business, but it is only when the business is put to such a shape and starts functioning as a manufacturing or a business organization, it can be said to have been set up. Hence, holding that the business of…

HONDA ACCESS INDIA PVT. LTD.,GAUTAM BUDH NAGAR vs. DCIT, CIRCLE- 1, NOIDA

ITA 3368/DEL/2018[2013-14]Status: DisposedITAT Delhi14 Jun 2023AY 2013-14

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharma

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘C’ : NEW DELHI) BEFORE SH. N.K.BILLAIYA, ACCOUNTANT MEMBER AND SH.ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 3368/Del/2018, A.Y. 2013-14 M/s. Honda Access India Pvt. Vs. DCIT, Ltd. Circle-1, Floor-1, C-8, Site-IV, Second Noida Cross Avenue Road, Kasana, Gr. Noida PAN : AACCH9695K Appellant Respondent Appellant by Sh. Manuj Sabharwal, Sh. Shalini, Adv. & Ms. Chandandeep kaur, CA Respondent by Sh. Bhopal Singh, Sr. DR Date of hearing: 05.06.2023 Date of Pronouncement: 14 .06.2023 ORDER Per Anubhav Sharma, JM : The appeal has been preferred by the Assessee against…

ARJUN PULP AND PAPER INDIA PVT LTD.,CHENNAI vs. ACIT (OSD) CORPORATE RANGE 1, CHENNAI

In the result, appeal of the assessee is dismissed

ITA 860/CHNY/2019[2014-15]Status: DisposedITAT Chennai24 Mar 2023AY 2014-15

Bench: Shri Aby T. Varkey & Shri G. Manjunathaआयकर अपीलसं./I.T.A.No.860/Chny/2019 (िनधा"रण वष" / Assessment Year: 2014-15) Vs The Assistant Commissioner Of M/S. Arjun Pulp & Paper India Pvt.Ltd. Income Tax (Osd) Corporate Range-1 Ii Floor, No.149, Robert V. Chandran Chennai. Tower, Velachery, Tambaram High Road, Pallikaranai, Chennai-600 100. Pan: Aaccv 5130F (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ"कीओरसे/ Appellant By : Mr. T.Shanmugam, Advocate ""थ"कीओरसे/Respondent By : Mr. P.Sajit Kumar, Jcit सुनवाईकीतारीख/Date Of Hearing 20.03.2023 : घोषणाकीतारीख /Date Of Pronouncement : 24.03.2023 आदेश / O R D E R

For Appellant: Mr. T.Shanmugam, AdvocateFor Respondent: Mr. P.Sajit Kumar, JCIT

…t depreciation allowance can be granted only if business has been set up and said to be ready to commence its business. Thereafter, the AO referred to the decision of the Hon'ble Supreme Court in the case of CWT vs. Ramaraju Surgical Cotton Mills Ltd. (1967) 63 ITR 478 and other decisions reproduced at page No. 4 & 5 of his order and held that depreciation allowance claimed by the assessee is not allowable and therefore, he disallowed it. 4. The Assessing Officer also disallowed ‘other expenses’ claimed to the tune of Rs.90,14,242/-. Since these expenses according to him are to be considered as pre-operativ…

DCIT CIR 6(3)(2), MUMBAI vs. KARJAT GOLF CLUB P.LTD, MUMBAI

In the result, the appeal of the Revenue in ITA

ITA 638/MUM/2016[2010-11]Status: DisposedITAT Pune23 Nov 2022AY 2010-11

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Raviआयकर अपील सं. / Ita No.638/Mum/2016 िनधा"रण वष" / Assessment Year: 2010-11 Dcit, Circle-6(3)(2), Vs. Karjat Golf Club P. Ltd., Mumbai. Tower, 1502 B One India Bulls Centre, 841 Jupier Mills, Off Senapati Bpat Marg, Lower Parel, Mumbai- 400013 Pan : Aadck0915A Appellant Respondent C.O. No.236/Mum/2017 (Arising Out Of Ita No.638/Mum/2016) िनधा"रण वष" / Assessment Year: 2010-11 Karjat Golf Club P. Ltd., Vs. Dcit, Circle-6(3)(2), Tower, 1502 B One India Mumbai. Bulls Centre, 841 Jupier Mills, Off Senapati Bpat Marg, Lower Parel, Mumbai- 400013 Pan : Aadck0915A Appellant Respondent Revenue By : Shri Keyur Patel Assessee By : Shri Vilesh Dalya Date Of Hearing : 15.11.2022 Date Of Pronouncement : 23.11.2022 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Revenue Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)- 12, Mumbai

For Appellant: Shri Vilesh DalyaFor Respondent: Shri Keyur Patel
Section 143(3)

…set-up the business, the expenditure incurred during the interval between setting up of the business and actual commencement of business are allowable as deduction as held by the Hon’ble Supreme Court in the case of CIT vs. Ramaraju Surgical Cotton Mills Ltd, 63 ITR 478 (SC) and CIT vs. Sarabhai Management Corpn. Ltd., 192 ITR 151 (SC) followed by the Hon’ble Gujarat High Court in the case of Sarabhai Management Corpn. Ltd. vs. CIT, 102 ITR 25 (Guj.) and also followed by the Hon’ble Bombay High Court in the case of Western India Vegetable Products Ltd. vs. CTI, 26 ITR 151 (Bom.). In the present case, the ld. CIT(…

MESSUNG SYSTEMS PRIVATE LIMITED,,PUNE vs. INCOME-TAX OFFICER, WARD - 14 (4),, PUNE

In the result, the appeal filed by the assessee stands partly allowed for statistical purposes

ITA 683/PUN/2018[2014-15]Status: DisposedITAT Pune07 Nov 2022AY 2014-15

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Raviआयकर अपील सं. / Ita No.683/Pun/2018 िनधा"रण वष" / Assessment Year: 2014-15 Messung Systems Private Vs. Ito, Ward-14(4), Pune. Limited, 501, Lunkad Skyvista, Sr. No.230/A/3/2, Viman Nagar, Pune- 411014. Pan : Aabcm1832E Appellant Respondent Assessee By : Shri Nikhil Pathak Revenue By : Shri M. G. Jasnani Date Of Hearing : 29.08.2022 Date Of Pronouncement : 07.11.2022 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-7, Pune [‘The Cit(A)’] Dated 15.02.2018 For The Assessment Year 2014-15. 2. Briefly, The Facts Of The Case Are That The Appellant Is A Company Incorporated Under The Provisions Of The Companies Act, 1956. It Is Engaged In The Business Of Trading Of Programmable Logic Controllers (Plc) & Parts Thereof. The Return Of Income For The Assessment Year 2014-15 Was Filed On 30.09.2014 Declaring Total

For Appellant: Shri Nikhil PathakFor Respondent: Shri M. G. Jasnani
Section 143(3)

…It is settled position of law that expenses incurred during interval between setting up of the business and commencement of the business are allowable as deduction as held by the Hon’ble Supreme Court in the case of CIT vs. Ramaraju Surgical Cotton Mills Ltd, 63 ITR 478 (SC) and CIT vs. Sarabhai Management Corpn. Ltd., 192 ITR 151 (SC) followed by the Hon’ble Gujarat High Court in the case of Sarabhai Management 5 Corpn. Ltd. vs. CIT, 102 ITR 25 (Guj.) and also followed by the Hon’ble Bombay High Court in the case of Western India Vegetable Products Ltd. vs. CTI, 26 ITR 151 (Bom.). In the present case, the Asses…

DCIT CORPORATE CIRCLE 1(2), CHENNAI vs. BERGEN PIPE SUPPORTS INDIA PRIVATE LTD., CHENNAI

In the result, appeal filed by the Revenue is dismissed

ITA 2980/CHNY/2018[2013-14]Status: DisposedITAT Chennai20 Jul 2022AY 2013-14

Bench: Shri V. Durga Rao & Shri G. Manjunatha

For Appellant: Mr.S.P.Chidambaram, AdvocateFor Respondent: 12.07.2022
Section 133(6)Section 143(3)Section 250(4)

…actual set up of the factory happened only in December 2012 and not in October 2012, as claimed by the assesse. 4. The learned CIT(A) erred in not appreciating the ratio that the Apex Court in the case of CIW v. MIs Ramaraju Surgical Cotton Mills ltd. (1967) 63 ITR 478), has held that for reckoning the date setting up of factory, the certificate issued by Inspector of Factory was a vital date and benefits such as depreciation and operative expenses are tagged to that date.” 3. Brief facts of the case are that the assessee is a private limited company, engaged in the business of manufacture and supply of pipe su…

M/S E-LAND SYSTEMS PRIVATE LIMITED ,BANGALORE vs. INCOME TAX OFFICER WARD-2(1)(4), BANGALORE

In the result, the appeal filed by the assessee is partly allowed

ITA 3163/BANG/2018[2015-16]Status: DisposedITAT Bangalore22 Feb 2022AY 2015-16

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year : 2015-16

For Appellant: Shri Sandeep Chalapathy, A.RFor Respondent: Shri Sankar Ganesh K., D.R

…y only on 19-10- 2015. The AO also noticed that the assessee did not generate any revenue during the year under consideration. The A.O., relying on the decision rendered by Hon’ble Supreme Court in the case of CWT Vs. Ramaraj Surgical Cotton Mills Ltd. (1967) 63 ITR 478 observed that “A Unit cannot be said to have been set up unless it is ready to discharge function for which it is being set up”. Accordingly, the A.O. held that the business of the assessee was not set up and hence the expenditure incurred prior to setting up of business is not deductible. Accordingly, he rejected the claim of business loss of Rs.…

INCOME TAX OFFICER, WARD-2(1), HYDERABAD vs. KSK WIND POWER SANKONAHATTI ATHNI PRIVATE LIMIED, HYDERABAD

In the result, all the four appeals of the Revenue are allowed

ITA 34/HYD/2019[2014-15]Status: DisposedITAT Hyderabad25 Jan 2022AY 2014-15

Bench: Shri A. Mohan Alankamony & Shri S.S. Godaraassessment Year: 2014-15 Income Tax Officer, Vs. Ksk Wind Energy Ward-2(1), Halagali Benchi Private Hyderabad. Limited, Hyderabad. Pan: Aaeck 1965 F (Appellant) (Respondent) Assessee By: Sri S. Rama Rao Revenue By: Sri Sunil Gowtham, Sr. Ar Assessment Year: 2014-15 Income Tax Officer, Vs. Ksk Wind Power Ward-2(1), Sankonahatti Athni Hyderabad. Private Limited, Hyderabad. Pan: Aaeck 1900 C (Appellant) (Respondent) Assessee By: Sri S. Rama Rao Revenue By: Sri Sunil Gowtham, Sr. Ar Assessment Year: 2014-15 Income Tax Officer, Vs. Ksk Wind Power Ward-2(1), Aminabhavi Chikodi Hyderabad. Private Limited, Hyderabad. Pan: Aaeck 1888 R (Appellant) (Respondent)

For Appellant: Sri S. Rama RaoFor Respondent: Sri Sunil Gowtham, Sr. AR
Section 143(3)Section 56

…mar Vs. CIT (1986) 1581TR 25 (Madras High Court) iii. CIT Vs. Industrial Solvents and chemicals Pvt. Ltd. (1979) 119ITR 608 (Bombay HC) iv. CIT Vs. Sponge Iron India Ltd. (1993) 201 ITR 770 (AP High Court) v. CWT Vs. Ramaraju Surgical Cotton Mills Ltd. (1967) 63 ITR 478 (SC) vi Travencor – Cochin Chemicals Pvt Ltd. Vs CWT 65 ITR 651 (SC) vii. CIT Vs Electron India 241 ITR 166 (MAS) 31. Respectfully following the principles laid down as discussed above, we are of the opinion that the preoperative expenditure was to be capitalized to the assets and Assessee was eligible for depreciation on the value of assets. Ther…

INCOME TAX OFFICER, WARD-2(1), HYDERABAD vs. KSK WIND ENERGY HALAGALI BENCHI PRIVATE LIMIED , HYDERABAD

In the result, all the four appeals of the Revenue are allowed

ITA 33/HYD/2019[2014-15]Status: DisposedITAT Hyderabad25 Jan 2022AY 2014-15

Bench: Shri A. Mohan Alankamony & Shri S.S. Godaraassessment Year: 2014-15 Income Tax Officer, Vs. Ksk Wind Energy Ward-2(1), Halagali Benchi Private Hyderabad. Limited, Hyderabad. Pan: Aaeck 1965 F (Appellant) (Respondent) Assessee By: Sri S. Rama Rao Revenue By: Sri Sunil Gowtham, Sr. Ar Assessment Year: 2014-15 Income Tax Officer, Vs. Ksk Wind Power Ward-2(1), Sankonahatti Athni Hyderabad. Private Limited, Hyderabad. Pan: Aaeck 1900 C (Appellant) (Respondent) Assessee By: Sri S. Rama Rao Revenue By: Sri Sunil Gowtham, Sr. Ar Assessment Year: 2014-15 Income Tax Officer, Vs. Ksk Wind Power Ward-2(1), Aminabhavi Chikodi Hyderabad. Private Limited, Hyderabad. Pan: Aaeck 1888 R (Appellant) (Respondent)

For Appellant: Sri S. Rama RaoFor Respondent: Sri Sunil Gowtham, Sr. AR
Section 143(3)Section 56

…mar Vs. CIT (1986) 1581TR 25 (Madras High Court) iii. CIT Vs. Industrial Solvents and chemicals Pvt. Ltd. (1979) 119ITR 608 (Bombay HC) iv. CIT Vs. Sponge Iron India Ltd. (1993) 201 ITR 770 (AP High Court) v. CWT Vs. Ramaraju Surgical Cotton Mills Ltd. (1967) 63 ITR 478 (SC) vi Travencor – Cochin Chemicals Pvt Ltd. Vs CWT 65 ITR 651 (SC) vii. CIT Vs Electron India 241 ITR 166 (MAS) 31. Respectfully following the principles laid down as discussed above, we are of the opinion that the preoperative expenditure was to be capitalized to the assets and Assessee was eligible for depreciation on the value of assets. Ther…

DY. COMMISSIONER OF INCOME TAX , CIRCLE-16(1), HYDERABAD vs. L & T METRO RAIL (HYDERABAD) LIMITED, HYDERABAD

In the result, appeal of the Revenue is allowed

ITA 1412/HYD/2019[2016-17]Status: DisposedITAT Hyderabad21 Jan 2022AY 2016-17

Bench: Shri A. Mohan Alankamony & Shri S.S. Godaraassessment Year: 2016-17 Dcit, Vs. L & T Metro Rail Circle-16(1), (Hyderabad) Limited, Hyderabad. Hyderabad. Pan: Aabcl 8521 D (Appellant) (Respondent) Assessee By: Shri Ashik Shah Revenue By: Sri B. Sunil Kumar, Dr Date Of Hearing: 25/10/2021 Date Of Pronouncement: 21/01/2022 Order Per A. Mohan Alankamony, Am.:

For Appellant: Shri Ashik ShahFor Respondent: Sri B. Sunil Kumar, DR
Section 143(3)Section 56

…mar Vs. CIT (1986) 1581TR 25 (Madras High Court) iii. CIT Vs. Industrial Solvents and chemicals Pvt. Ltd. (1979) 119ITR 608 (Bombay HC) iv. CIT Vs. Sponge Iron India Ltd. (1993) 201 ITR 770 (AP High Court) v. CWT Vs. Ramaraju Surgical Cotton Mills Ltd. (1967) 63 ITR 478 (SC) vi Travencor – Cochin Chemicals Pvt Ltd. Vs CWT 65 ITR 651 (SC) vii. CIT Vs Electron India 241 ITR 166 (MAS) 31. Respectfully following the principles laid down as discussed above, we are of the opinion that the preoperative expenditure was to be capitalized to the assets and Assessee was eligible for depreciation on the value of assets. Ther…

ACIT, CIRCLE - 2(1), , KOLKATA vs. TCG URBAN INFRASTRUCTURE HOLDINGS PVT LTD.,, KOLKATA

Accordingly, the same is dismissed

ITA 2584/KOL/2019[2004-05]Status: DisposedITAT Kolkata26 Oct 2021AY 2004-05

Bench: Shri Sanjay Garg & Dr. M.L.Meenaआयकर अपील सं.य/

Section 36Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL BENCH “B” KOLKATA Before Shri Sanjay Garg, Judicial Member and Dr. M.L.Meena, Accountant Member आयकर अपील सं.य/ ITA Nos.2584 to 2588/Kol/2019 Assessment Years:2004-05, ’05- 06, ’06-07,’07-08 & ’09-10 बनाम / ACIT,Cir-2(1), Kolkata M/s. TCG Urban Circle-2(1), Aaykar Bhawan, Infrastructure Holdings Pvt. V/s. P-7 Chowringhee Square, Ltd. (Earlier known as TCG Kolkata-700 069. Infrastructure Holdings Ltd.) Ground Fl., Bldg Beta, Bengal Intelligent Park, Salt Lake Electronics Complex, Block EP & GP, Sector V, Salt Lake, Kolkata. PAN: AADCS8821M अपीलाथ" /Appellant ""यथ" /Respondent…

M/S BANGALORE ELECTRICITY SUPPLY COMPANY LTD vs. THE DEPUTY COMMISSIONER OF INCOME-TAX

In the result, the order passed by the tribunal

ITA/204/2013HC Karnataka27 Jan 2021

Bench: ALOK ARADHE,R. NATARAJ

Section 115JSection 143(2)Section 143(3)Section 260Section 260ASection 80I

…(2001) 247 ITR 36 (SC), UOI V. HANSOLI DEVI (2002) 7 SCC 309, NASIRUDDIN V. SITA RAM AGARWAL (2003) 2 SCC 577, MITHILESH SINGH V. UOI (2003) 3 SCC 309, S. REGHURAM REDDY V. CCT (2004) 134 STC 598, CWT V. RAMARAJU SURGICAL COTTON MILLS LTD. (1967) 63 ITR 478 (SC), CIT V. ALCOCK ASHDOWN 9 & CO. LTD. (1997) 224 ITR 353 (SC), CIT V. ING VYSYA BANK LTD. (2020) 422 ITR 116 (KAR.) 6. On the other hand, learned counsel for the revenue submitted that deduction under Section 80IA of the Act was intended to be provided to encourage modernization and upgradation of plant and machinery in power sector…

M/S BENGAL SHRIRAM HITECH CITY PRIVATE LIMITED ,BANGALORE vs. INCOME TAX OFFICER WARD-1(1)(3), BANGALORE

In the result, all the appeals of the assessee are treated as partly allowed

ITA 122/BANG/2019[2014-15]Status: DisposedITAT Bangalore12 Oct 2020AY 2014-15

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2012 – 13

For Appellant: Shri S. Ananthan, A.RFor Respondent: Shri Mallikarjuna G., D.R

…ctioning as a business manufacturing organization. The Gujarat High Court, relying upon the decision in Western India Vegetable Product Ltd. v. CIT119541 26 ITR 151 (Boni.) and the decision of Supreme Court in CWT v. Ramaraju Surgical Cotton Mills Ltd. [1967] 63 ITR 478, observed : ". . . the new business which was sought to be established by the assessee was a business of manufacturing scientific instruments and communication equipment and it could not be said to be ready to discharge the function for which it was being established, viz., manufacture of scientific instruments and communication equipment, until…

M/S BENGAL SHRIRAM HITECH CITY PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(1)(2), BANGALORE

In the result, all the appeals of the assessee are treated as partly allowed

ITA 121/BANG/2019[2013-14]Status: DisposedITAT Bangalore12 Oct 2020AY 2013-14

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2012 – 13

For Appellant: Shri S. Ananthan, A.RFor Respondent: Shri Mallikarjuna G., D.R

…ctioning as a business manufacturing organization. The Gujarat High Court, relying upon the decision in Western India Vegetable Product Ltd. v. CIT119541 26 ITR 151 (Boni.) and the decision of Supreme Court in CWT v. Ramaraju Surgical Cotton Mills Ltd. [1967] 63 ITR 478, observed : ". . . the new business which was sought to be established by the assessee was a business of manufacturing scientific instruments and communication equipment and it could not be said to be ready to discharge the function for which it was being established, viz., manufacture of scientific instruments and communication equipment, until…

BENGAL SHRIRAM HITECH CITY PVT LTD,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2(1)(1), BANGALORE

In the result, all the appeals of the assessee are treated as partly allowed

ITA 1341/BANG/2017[2012-13]Status: DisposedITAT Bangalore12 Oct 2020AY 2012-13

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2012 – 13

For Appellant: Shri S. Ananthan, A.RFor Respondent: Shri Mallikarjuna G., D.R

…ctioning as a business manufacturing organization. The Gujarat High Court, relying upon the decision in Western India Vegetable Product Ltd. v. CIT119541 26 ITR 151 (Boni.) and the decision of Supreme Court in CWT v. Ramaraju Surgical Cotton Mills Ltd. [1967] 63 ITR 478, observed : ". . . the new business which was sought to be established by the assessee was a business of manufacturing scientific instruments and communication equipment and it could not be said to be ready to discharge the function for which it was being established, viz., manufacture of scientific instruments and communication equipment, until…

M/S MARUTI INSSURANCE BROKING PVT. LTD.,,NEW DELHI vs. DCIT, NEW DELHI

In the result, the appeal filed by the assessee is dismissed

ITA 6442/DEL/2016[2012-13]Status: DisposedITAT Delhi10 Feb 2020AY 2012-13

Bench: Shri R.K. Panda & Shri K. Narasimha Charyassessment Year: 2012-13 Maruti Insurance Broking Pvt. Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi. New Delhi. Pan: Aagcm8887L (Appellant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Advocate, Ms Tejasvi Jain, Ca, Ms Somya Jain, Ca Revenue By : Ms Rakhi Bimal, Sr. Dr Date Of Hearing : 11.11.2019 Date Of Pronouncement : 10.02.2020 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 18Th October, 2016 Of The Cit(A)-6, Delhi, Relating To Assessment Year 2012-13. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Company & Is Engaged In The Business Of Soliciting Motor Insurance Business. It Was Incorporated On 24.11.2010 & Applied For Grant Of Direct Broker Licence To Irda, Vide Application Dated 01.12.2010 & Was Awarded Licence As A Direct Broker Of Irda In February, 2012. It Filed Its Return Of Income On 29Th September, 2012 Declaring An Income Of Rs.23,750/- & Claiming Current Year Loss Of Rs.2,78,22,376/-.

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Ms Rakhi Bimal, Sr. DR
Section 143(3)

…business, no universal test or formula applicable to all types of business can be laid down. While doing so, he has relied on various decisions. Referring to the decision of the Hon’ble Supreme Court in the case of CWT vs. Ramaraju Surgical Cotton Mills Ltd., 63 ITR 478 (SC) he submitted that the Hon’ble Supreme Court in the said decision has held that only when the unit had been put into such a shape that it could start functioning as a business or manufacturing organization that it can be said that the unit had been set up. Since, in the instant case, the licence was not issued by IRDA at the time when the said…

M/S SAMBHAV INSTITUTIONS (INDIA) PRIVATE LIMITED ,BANGALORE vs. INCOME TAX OFFICER WARD-12(2), BANGALORE

In the result, all the three appeals filed by the assessee are allowed for statistical purposes

ITA 1760/BANG/2018[2010-11]Status: DisposedITAT Bangalore31 Jul 2019AY 2010-11

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Siddesh Gaddi, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 271(1)(c)

…1946?" and we will answer that in the affirmative. No order as to costs. 3.10. This view taken by the Bombay High Court that, setup means ready to commence business / establish, was approved by the Supreme Court in CWT v. Ramaraju Surgical Cotton Mills [1967] 63 ITR 478. The Honourable Court held that the new spinning plant was set up after 1st April, 1957, since it was long after that date that it could be said to be ready to discharge the function for which it was set up. The business could be set up only as a culmination of operations when all that was necessary for the setting up of the business was done. Rel…

M/S SAMBHAV INSTITUTIONS (INDIA) PRIVATE LIMITED , BANGALORE vs. INCOME TAX OFFICER WARD-12(2), BANGALORE

In the result, all the three appeals filed by the assessee are allowed for statistical purposes

ITA 1759/BANG/2018[2009-10]Status: DisposedITAT Bangalore31 Jul 2019AY 2009-10

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Siddesh Gaddi, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 271(1)(c)

…1946?" and we will answer that in the affirmative. No order as to costs. 3.10. This view taken by the Bombay High Court that, setup means ready to commence business / establish, was approved by the Supreme Court in CWT v. Ramaraju Surgical Cotton Mills [1967] 63 ITR 478. The Honourable Court held that the new spinning plant was set up after 1st April, 1957, since it was long after that date that it could be said to be ready to discharge the function for which it was set up. The business could be set up only as a culmination of operations when all that was necessary for the setting up of the business was done. Rel…

M/S SAMBHAV INSTITUTIONS (INDIA) PRIVATE LIMITED ,BANGALORE vs. INCOME TAX OFFICER WARD-12(2), BANGALORE

In the result, all the three appeals filed by the assessee are allowed for statistical purposes

ITA 1758/BANG/2018[2008-09]Status: DisposedITAT Bangalore31 Jul 2019AY 2008-09

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Siddesh Gaddi, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 271(1)(c)

…1946?" and we will answer that in the affirmative. No order as to costs. 3.10. This view taken by the Bombay High Court that, setup means ready to commence business / establish, was approved by the Supreme Court in CWT v. Ramaraju Surgical Cotton Mills [1967] 63 ITR 478. The Honourable Court held that the new spinning plant was set up after 1st April, 1957, since it was long after that date that it could be said to be ready to discharge the function for which it was set up. The business could be set up only as a culmination of operations when all that was necessary for the setting up of the business was done. Rel…

ACIT, CIRCLE - 5(2), KOLKATA, KOLKATA vs. M/S. THIESS MINES INDIA PVT. LTD., KOLKATA

In the result, this issue is adjudicated in favour of the assessee

ITA 485/KOL/2018[2013-14]Status: DisposedITAT Kolkata09 Jan 2019AY 2013-14

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey)

Section 250

…ore actual business operation started on 1st October, 1995 and in view of judicial pronouncement of the Bombay High Court in Western India Vegetables Products Ltd. v. CIT [1954] 26 ITR 151 and Supreme Court in CWT v. Ramaraju Surgical Cotton Mills Ltd. [1967] 63 ITR 478 and Sarabhai Management Corpn. Ltd. v. CIT [1991] 192 ITR 151 (SC), the same should be disallowed as expenditure. We may only note that the Assessing Officer did not go into the factual matrix applicable to the assessee's case to find out the date of setting up of business. He simply took the date 1st October, 1995 i.e. as the date of start of the…

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CWT v. Ramaraju Surgical Cotton Mills Ltd. (63 ITR 478) — Cited in 34 Judgments | BharatTax