E.D. Sassoon & Co. Ltd. v. CIT

Commissioner of Income Tax- 14 vs. Aman Khera

The appeals are disposed of in the above terms but in the facts and

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE NAJMI WAZIRI

…A) the three Assessees went in appeal before the ITAT which by the impugned order allowed the appeals after coming to the following conclusion: (i) When examined in the light of the decision in E.D. Sasoon & Co. Ltd. v. Commissioner of Income Tax (1954) 26 ITR 27(SC), it is seen that the Assessees had not served the entire period of five years and had, therefore, not awarded emoluments in the sums paid to each of them. In other words, the entire income could not be said to have accrued to the Assessee as the Assessee had not created a debt or a right to receive the payment. (ii) Accounting Standard…

Ge Capital Services India vs. Addl CIT Range 2

In the result, the appeals of the assessee and Revenue are partly allowed for

Bench: Smt Diva Singh & Sh.L.P.Sahu

…judgements namely (a) Jasjeet Films P.Ltd. vs CIT [2007] 165 Taxman 599 (Delhi); (b) Metal Box Co. of India Ltd. vs Their Workmen [1969] 73 ITR 53 (SC); (c )Asstt. CIT vs Shree Synthetics Ltd. [2008] 303 ITR 106 (MP); (d) E.D.Sassoon & Co. Ltd. v CIT [1954] 26 ITR 27; and (e) Bharat Earth Movers v CIT [2000] 245 ITR 428 relied upon Page 33 of 40 I.T.A .No.-2808 & 2898/Del/2007 these accepting the arguments advanced on behalf of the assessee namely that the Revenue has not appreciated the nature of the agreements entered into by the assessee which were for raising foreign currency borrowings and forward cont…

DCIT Circle 12 (1) vs. G.E. Capital Services India

In the result, the appeals of the assessee and Revenue are partly allowed for

Bench: Smt Diva Singh & Sh.L.P.Sahu

…judgements namely (a) Jasjeet Films P.Ltd. vs CIT [2007] 165 Taxman 599 (Delhi); (b) Metal Box Co. of India Ltd. vs Their Workmen [1969] 73 ITR 53 (SC); (c )Asstt. CIT vs Shree Synthetics Ltd. [2008] 303 ITR 106 (MP); (d) E.D.Sassoon & Co. Ltd. v CIT [1954] 26 ITR 27; and (e) Bharat Earth Movers v CIT [2000] 245 ITR 428 relied upon Page 33 of 40 I.T.A .No.-2808 & 2898/Del/2007 these accepting the arguments advanced on behalf of the assessee namely that the Revenue has not appreciated the nature of the agreements entered into by the assessee which were for raising foreign currency borrowings and forward cont…

ACIT, New Delhi vs. M/S Dlf Ltd., New Delhi

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…for financial year 2010-11. 26.11 An amount cannot be said to accrue unless enforceable debt is created in favour of assessee. Reference can be made to the judgment of Hon’ble Supreme Court in the case of E.D. Page 118 of 144 Sassoon & Co. Ltd. v. CIT [1954] 26 ITR 27. Their Lordships at page 51 observed as under : “That the words ‘arising or accruing’ are general words descriptive of a right to receive profits... If the assessee acquires a right to receive the income, the income can be said to have accrued to him. Though it may be received later on it being ascertained. The basic conception is that he must have…

Dlf Ltd., New Delhi vs. Addl. CIT, New Delhi

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…for financial year 2010-11. 26.11 An amount cannot be said to accrue unless enforceable debt is created in favour of assessee. Reference can be made to the judgment of Hon’ble Supreme Court in the case of E.D. Page 118 of 144 Sassoon & Co. Ltd. v. CIT [1954] 26 ITR 27. Their Lordships at page 51 observed as under : “That the words ‘arising or accruing’ are general words descriptive of a right to receive profits... If the assessee acquires a right to receive the income, the income can be said to have accrued to him. Though it may be received later on it being ascertained. The basic conception is that he must have…

DCIT, New Delhi vs. M/S. Sara Services & Enginners Pvt. Ltd., New Delhi

In the results appeal of the assessee is partly disallowed on ground no

Bench: Sri C.M.Garg, Jm & Sri L.P.Sahu, Am Ita No. 406,407/Del./2010 Asstt. Year : 2002-03 Asstt. Year : 2003-04

…expenses for a transaction; sometimes used synonymously with net income for the period. Gain realized from business or investment overandaboveexpenditures.” This Court in E.D. Sassoon & Company Ltd. and Others v. Commissioner of Income-Tax, Bombay City (1954) 26 ITR 27 (SC) has quoted the following observations of Lord Justice Fletcher Moulton in The Spanish Prospecting Company Limited [(1911) I Ch. 92] on the meaning of the word “profits”: “…. ‘Profits’ implies a comparison between the state of a business at two specific dates usually separated by an interval of a year. The fundamental meaning is the amount of g…

DCIT, New Delhi vs. M/S. Sara Services & Enginners Pvt. Ltd., New Delhi

In the results appeal of the assessee is partly disallowed on ground no

Bench: Sri C.M.Garg, Jm & Sri L.P.Sahu, Am Ita No. 406,407/Del./2010 Asstt. Year : 2002-03 Asstt. Year : 2003-04

…expenses for a transaction; sometimes used synonymously with net income for the period. Gain realized from business or investment overandaboveexpenditures.” This Court in E.D. Sassoon & Company Ltd. and Others v. Commissioner of Income-Tax, Bombay City (1954) 26 ITR 27 (SC) has quoted the following observations of Lord Justice Fletcher Moulton in The Spanish Prospecting Company Limited [(1911) I Ch. 92] on the meaning of the word “profits”: “…. ‘Profits’ implies a comparison between the state of a business at two specific dates usually separated by an interval of a year. The fundamental meaning is the amount of g…

Sara Services & Engineers Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the results appeal of the assessee is partly disallowed on ground no

Bench: Sri C.M.Garg, Jm & Sri L.P.Sahu, Am Ita No. 406,407/Del./2010 Asstt. Year : 2002-03 Asstt. Year : 2003-04

…expenses for a transaction; sometimes used synonymously with net income for the period. Gain realized from business or investment overandaboveexpenditures.” This Court in E.D. Sassoon & Company Ltd. and Others v. Commissioner of Income-Tax, Bombay City (1954) 26 ITR 27 (SC) has quoted the following observations of Lord Justice Fletcher Moulton in The Spanish Prospecting Company Limited [(1911) I Ch. 92] on the meaning of the word “profits”: “…. ‘Profits’ implies a comparison between the state of a business at two specific dates usually separated by an interval of a year. The fundamental meaning is the amount of g…

Sara Services & Engineers Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the results appeal of the assessee is partly disallowed on ground no

Bench: Sri C.M.Garg, Jm & Sri L.P.Sahu, Am Ita No. 406,407/Del./2010 Asstt. Year : 2002-03 Asstt. Year : 2003-04

…expenses for a transaction; sometimes used synonymously with net income for the period. Gain realized from business or investment overandaboveexpenditures.” This Court in E.D. Sassoon & Company Ltd. and Others v. Commissioner of Income-Tax, Bombay City (1954) 26 ITR 27 (SC) has quoted the following observations of Lord Justice Fletcher Moulton in The Spanish Prospecting Company Limited [(1911) I Ch. 92] on the meaning of the word “profits”: “…. ‘Profits’ implies a comparison between the state of a business at two specific dates usually separated by an interval of a year. The fundamental meaning is the amount of g…

Commissioner of Income Tax Delhi vs. Ms. Suman Dhamija

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…61. In the present case the Assessee is justified in contending that although award has been made and the compensation payable has been enhanced, the amount itself is in dispute, that dispute is pending in the Court. In E.D. Sassoon & Co. v. CIT (1954) 26 ITR 27 (SC) it was held that income cannot be said to accrue or arise to an Assessee unless and until there is created in favour of the Assessee a debt due by somebody. Unless that happens it could not be said that the Assessee had acquired a right to receive the income or the income has accrued to him. 62. The upshot of the above discussion is tha…

Commissioner of Income Tax Delhi vs. Ms Suman Dhamija

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…61. In the present case the Assessee is justified in contending that although award has been made and the compensation payable has been enhanced, the amount itself is in dispute, that dispute is pending in the Court. In E.D. Sassoon & Co. v. CIT (1954) 26 ITR 27 (SC) it was held that income cannot be said to accrue or arise to an Assessee unless and until there is created in favour of the Assessee a debt due by somebody. Unless that happens it could not be said that the Assessee had acquired a right to receive the income or the income has accrued to him. 62. The upshot of the above discussion is tha…

Commissioner of Income Tax Delhi vs. Ms Suman Dhamija

…61. In the present case the Assessee is justified in contending that although award has been made and the compensation payable has been enhanced, the amount itself is in dispute, that dispute is pending in the Court. In E.D. Sassoon & Co. v. CIT (1954) 26 ITR 27 (SC) it was held that income cannot be said to accrue or arise to an Assessee unless and until there is created in favour of the Assessee a debt due by somebody. Unless that happens it could not be said that the Assessee had acquired a right to receive the income or the income has accrued to him. 62. The upshot of the above discussion is tha…

Commissioner of Income Tax Delhi vs. Ms. Suman Dhamija

…61. In the present case the Assessee is justified in contending that although award has been made and the compensation payable has been enhanced, the amount itself is in dispute, that dispute is pending in the Court. In E.D. Sassoon & Co. v. CIT (1954) 26 ITR 27 (SC) it was held that income cannot be said to accrue or arise to an Assessee unless and until there is created in favour of the Assessee a debt due by somebody. Unless that happens it could not be said that the Assessee had acquired a right to receive the income or the income has accrued to him. 62. The upshot of the above discussion is tha…