East India Pharmaceutical Works Ltd. v. CIT

224 ITR 627Supreme Court of India1997#694 most cited

What is East India Pharmaceutical Works Ltd. v. CIT authority for?

Where an assessee has mixed funds (both interest-bearing and interest-free funds) and makes an interest-free advance or investment, it is presumed that the interest-free funds were utilized first if they are sufficient to cover such advances or investments. This prevents disallowance of interest on borrowed funds under Section 36(1)(iii).

146

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

East India Pharmaceutical Works Ltd v CIT · 224 ITR 627 · Section 36(1)(iii) · interest disallowance · mixed fund theory · interest free advances · borrowed funds · commercial expediency · presumption of utilization · interest on borrowed capital

Also reported as

91 Taxmann 185

Sections most often in play

Section 143(1)Section 143(3)Section 1961Section 36(1)(iii)Section 144C(1)Section 144C(5)Section 194JSection 195
Read the full judgment

Issues it is cited on

interest free advancessection 36(1)(iii)advance taxcommercial expediencysection 32section 36(1)section 36section 40(a)capital expendituresection 37(1)section 40section 37

Judgments citing East India Pharmaceutical Works Ltd. v. CIT

ACIT, Sonepat vs. M/S Atlas Cycles (Haryana) Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 4000/DEL/2013[2010-11]Status: DisposedITAT Delhi29 Jul 2016AY 2010-11

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

ACIT, Sonepat vs. M/S. Atlas Cycles (Haryana) Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 2132/DEL/2012[2009-10]Status: DisposedITAT Delhi29 Jul 2016AY 2009-10

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

Addl. CIT, Sonepat vs. M/S Atlas Cycles Haryana Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 3473/DEL/2011[2008-09]Status: DisposedITAT Delhi29 Jul 2016AY 2008-09

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

ACIT, Sonepat vs. M/S. Atlas Cycles Haryana Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 3472/DEL/2011[2005-06]Status: DisposedITAT Delhi29 Jul 2016AY 2005-06

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

DCIT, Sonepat vs. M/S Atlas Cycles (Haryana) Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 2491/DEL/2011[2004-05]Status: DisposedITAT Delhi29 Jul 2016AY 2004-05

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

DCIT, Sonepat vs. M/S Atlas Cycles (Haryana) Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 2490/DEL/2011[2003-04]Status: DisposedITAT Delhi29 Jul 2016AY 2003-04

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

DCIT, Sonepat vs. M/S Atlas Cycles (Haryana) Ltd., Sonepat

In the result ITA Nos. 2489/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 2489/DEL/2011[2006-07]Status: DisposedITAT Delhi29 Jul 2016AY 2006-07

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

DCIT, Sonepat vs. Shri Atlas Cycles Haryana Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 10/DEL/2011[2007-08]Status: DisposedITAT Delhi29 Jul 2016AY 2007-08

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

ACIT, Sonepat vs. M/S. Atlas Cycles (Haryana) Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 913/DEL/2010[2006-07]Status: DisposedITAT Delhi29 Jul 2016AY 2006-07

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

M/S. Atlas Cycles (Haryana) Ltd., Sonepat vs. ACIT, Haryana

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 784/DEL/2010[2006-07]Status: DisposedITAT Delhi29 Jul 2016AY 2006-07

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

Unitherm Engineers Ltd, Mumbai vs. Addl CIT RG 3, Thane

In the result, the appeals of the assessee are allowed

ITA 2955/MUM/2015[2010-11]Status: DisposedITAT Mumbai25 Jul 2016AY 2010-11

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am) आमकय अऩीर सं./I.T.A. No.2954 & 2955/Mum/2015 (ननधधायण वषा / Assessment Year : 2009-10 & 2010-11) M/S Unitherm Engineerings बनाम/ Additional Commissioner Of Income Tax, Range -3, Ltd., Vs. 6Th Floor, Ashar It Park, A-109, Boomerang, First Floor, Road No.16-Z, Chandivali Farm Road, Wagle Industrial Estate, Chandivali, Powai, Thane(W)-400604 Andheri (E), Mumbai-400072 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) .. स्थधमी रेखध सं./जीआइआय सं./Pan/Gir No. :Aaacu4041L अऩीरधथी ओय से / Appellant By: Shri Madhukar Khandekar प्रत्मथी की ओय से/Respondent By Shri H M Wanare & Shri Kailash Kanojiya सुनवधई की तधयीख / Date Of Hearing : 20.7.2016 घोषणध की तधयीख /Date Of Pronouncement : 25. 7.2016 आदेश / O R D E R Per Rajesh Kumar: These Are The Two Appeals Filed By The Assessee Against The Two Separate Orders Of Ld.Cit(A)-2, Thane, Dated 12.2.2015 For The Assessment Years 2009-10 & 20010-11. Since These Appeals Pertain To The Same Assessee, These Appeals Are Being Decided By This Common Order For The Sake Of Convenience. 2. The Common Issue Raised By The Assessee In The Sole Ground Of Appeal Is Against The Confirmation Of Addition On Account Of Notional

For Appellant: Shri Madhukar Khandekar
Section 36(1)(iii)

…sufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT [1997] 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. [1982] 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

Unitherm Engineers Ltd, Mumbai vs. Addl CIT RG 3, Thane

In the result, the appeals of the assessee are allowed

ITA 2954/MUM/2015[2009-10]Status: DisposedITAT Mumbai25 Jul 2016AY 2009-10

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am) आमकय अऩीर सं./I.T.A. No.2954 & 2955/Mum/2015 (ननधधायण वषा / Assessment Year : 2009-10 & 2010-11) M/S Unitherm Engineerings बनाम/ Additional Commissioner Of Income Tax, Range -3, Ltd., Vs. 6Th Floor, Ashar It Park, A-109, Boomerang, First Floor, Road No.16-Z, Chandivali Farm Road, Wagle Industrial Estate, Chandivali, Powai, Thane(W)-400604 Andheri (E), Mumbai-400072 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) .. स्थधमी रेखध सं./जीआइआय सं./Pan/Gir No. :Aaacu4041L अऩीरधथी ओय से / Appellant By: Shri Madhukar Khandekar प्रत्मथी की ओय से/Respondent By Shri H M Wanare & Shri Kailash Kanojiya सुनवधई की तधयीख / Date Of Hearing : 20.7.2016 घोषणध की तधयीख /Date Of Pronouncement : 25. 7.2016 आदेश / O R D E R Per Rajesh Kumar: These Are The Two Appeals Filed By The Assessee Against The Two Separate Orders Of Ld.Cit(A)-2, Thane, Dated 12.2.2015 For The Assessment Years 2009-10 & 20010-11. Since These Appeals Pertain To The Same Assessee, These Appeals Are Being Decided By This Common Order For The Sake Of Convenience. 2. The Common Issue Raised By The Assessee In The Sole Ground Of Appeal Is Against The Confirmation Of Addition On Account Of Notional

For Appellant: Shri Madhukar Khandekar
Section 36(1)(iii)

…sufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT [1997] 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. [1982] 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

D.C.I.T., Circle-4, Kolkata vs. M/S. Jay Shree Tea & Industries Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 2773/KOL/2013[2008-2009]Status: DisposedITAT Kolkata13 Jul 2016AY 2008-2009

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

For Appellant: Md. S. S. Alam, JCIT, Sr. DRFor Respondent: Shri B. K. Chaturvedi, AR
Section 143(3)Section 14ASection 154

…would be out of the interest-free funds available with the assessee. 6.1. Similar views were expressed in the following decisions :- Woolcombers of India Ltd vs CIT reported in 134 ITR 219 (Cal) East India Pharmaceutical Works Ltd vs CIT reported in (1997) 224 ITR 627 (SC) 6.2. We find that though the decision in the case of Reliance Utilities & Power Ltd was rendered in the context of allowability of interest u/s 36(1)(iii) of the Act, the analogy drawn thereon would apply with equal force for adjudicating the issue of disallowance u/s 14A of the Act. We also find that the Hon’ble Bombay High Court in the ca…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal is allowed

ITA 5720/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Jul 2016AY 2007-08

Bench: Shri I.C. Sudhir & Shri L.P. Sahu Assessment Year: 2007-08 Assessment Year: 2007-08 Maruti Suzuki India Ltd., Vs. Additional Cit, Plot No.1, Nelson Mandela Road, Range-6, Vasant Road, New Delhi. New Delhi. (Pan: Aaacm0829Q) (Appellant) (Respondent) Assessee By: S/Shri Ajay Vohra, Sr. Adv. Neeraj Jain, Rohit Jain, Adv. Romit Katyal & Ms. Tejasvi Jain, Cas Department By:Shri Amrendra Kumar, Cit(Dr)

For Appellant: S/Shri Ajay Vohra, Sr. Adv. NeerajFor Respondent: Shri Amrendra Kumar, CIT(DR)

…can be made in the following decisions wherein it has been held in the case of mixed pool of funds, a presumption 69 of utilization of borrowed funds or interest free funds can be made in favour of the assessee: East India Pharmaceutical Works Ltd. v. CIT: 224 ITR 627 (SC) Indian Explosives Ltd. V. CIT: 147 ITR 392 (Cal.), Woolcombers of India Ltd. v. CIT: 134 ITR 219 (Cal.) approved by Supreme Court in the case of East India Pharmaceutical Works Ltd. v. CIT: 224 ITR 627 CIT v. Reliance Utilities and Power Ltd.: 313 ITR 340 (Bom.) CIT v. M/s Ashok Commercial Enterprises: ITA No. 2985 of 2009 (Bom) Alkali…

M/S Goyal Mg Gases Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 2194/DEL/2013[2008-09]Status: DisposedITAT Delhi30 Jun 2016AY 2008-09

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishi

Section 143(3)Section 14A

…ufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdr…

M/S Goyal Mg Gases Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 2193/DEL/2013[2009-10]Status: DisposedITAT Delhi30 Jun 2016AY 2009-10

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishi

Section 143(3)Section 14A

…ufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdr…

M/S Goyal Mg Gases Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 2192/DEL/2013[2007-08]Status: DisposedITAT Delhi30 Jun 2016AY 2007-08

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishi

Section 143(3)Section 14A

…ufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdr…

ACIT, New Delhi vs. M/S Gillete Diversified Operations Pvt. Ltd., New Delhi

ITA 499/DEL/2013[2005-06]Status: DisposedITAT Delhi01 Apr 2016AY 2005-06

Bench: Shri I.C.Sudhir & Shri Prashant Maharishiacit, Gillete Diversified Operations Pvt. Ltd., Circle-12(1), C/O. Jaikumar Tejwani & Co, Ca, Vs. New Delhi B-50, East Of Kailash, New Delhi Pan:Aaacg2469C (Appellant) (Respondent) Gillete Diversified Operations Pvt. Ltd., Acit, C/O. Jaikumar Tejwani & Co, Ca, Circle-12(1), Vs. B-50, East Of Kailash, New Delhi New Delhi Pan:Aaacg2469C (Appellant) (Respondent)

For Appellant: Sh. Pradeep Dinodia, AdvFor Respondent: Sh.Subhakant Sahu, Sr. DR
Section 14A

…sufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT [1997] 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. [1982] 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

ITO 8(2)(3), Mumbai vs. Nistha Mall Management Co. P . Ltd, Mumbai

In the result, the Revenue’s appeal is partly allowed

ITA 2743/MUM/2013[2009-10]Status: DisposedITAT Mumbai29 Feb 2016AY 2009-10

Bench: Shri Joginder Singh, Jm & Shri Sanjay Arora, Am आयकर अपील सं./I.T.A. No. 2743/Mum/2013 ("नधा"रण वष" / Assessment Year: 2009-10) Ito-8(2)(3), Nishta Mall Management Co. Pvt. Room No. 213, 2Nd Floor, Ltd. बनाम/ Aayakar Bhavan, M. K. Road, Knowledge House, Shyam Nagar, Mumbai-400 020 Off. Jogeshwari, Vikhroli Link Vs. Road, Jogeshwari (E), Mumbai-400 060 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaecm 0705 H (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Randhir Gupta ""यथ" क" ओर से/Respondent By : Shri Nishit Gandhi सुनवाई क" तार"ख / : 24.2.2016 Date Of Hearing घोषणा क" तार"ख / : 29.2.2016 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: This Is An Appeal By The Revenue Directed Against The Order By The Commissioner Of Income Tax (Appeals)-17, Mumbai (‘Cit(A)’ For Short) Dated 14.1.2013, Allowing The Assessee’S Appeal Contesting Its Assessment U/S.143(3) Of The Income Tax Act, 1961 (‘The Act’ Hereinafter) For The Assessment Year (A.Y.) 2009-10 Vide Order Dated 30.11.2011. 2. The Principal Issue Arising In This Appeal, Agitated Per Its’ First Four Grounds, Is In Respect Of The Head Of Income Under Which The Rental Income For Allowing The User

For Appellant: Shri Randhir GuptaFor Respondent: Shri Nishit Gandhi
Section 143(3)Section 56

…the Act would qualify as a business expenditure, a wholly unmaintainable proposition, rejected by the Apex Court, as in the cases of Bharat Commerce & Industries Ltd. v. Union of India [1998] 230 ITR 733 (SC) and East India Pharmaceutical Works vs. CIT [1997] 224 ITR 627 (SC). Why, income-tax itself would stand to qualify as a deductible business expense. The assessee’s case is wholly without merit, so that the said income would only be assessable u/s. 56. We decide accordingly. 5. In the result, the Revenue’s appeal is partly allowed. प"रणामतः राज"व क" अपील आं"शक "वीकृत क" जाती है । Order pronounced in the open…

Aplab Ltd, Thane vs. ACIT RG 1, Thane

The appeal of the assessee is allowed

ITA 8545/MUM/2011[2008-09]Status: DisposedITAT Mumbai09 Feb 2016AY 2008-09
Section 36(1)(iii)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ,ए,मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “A”, MUMBAI "ी जी.एस. प"नू, लेखा सद"य एवं "ी जो"ग"दर "संह, "या"यक सद"य, के सम" Before, Shri G.S. Pannu, Accountant Member and Shri Joginder Singh, Judicial Member Assessment Year: 2008-09 M/s APLAB House, ACIT, A-5, Wagle, Range-1, बनाम/ Industrial Estate, Thane Vs. Thane ("नधा"रती /Assessee) (राज"व /Revenue) PAN. No.AAACA1030H "नधा"रती क" ओर से / Assessee by Shri M. Subramanian राज"व क" ओर से / Revenue by Shri Aarsi Prasad सुनवाई क" तार"ख / Date of Hearing : 08/02/2016 09/02/2016 आदेश क" तार"ख /Date of Order: आदेश /…