Eastern Investments Ltd. v. CIT

38 ITR 601Supreme Court of India1960#222 most cited

What is Eastern Investments Ltd. v. CIT authority for?

Expenditure must be commercially expedient for carrying on the business, and it is not for revenue authorities to dictate how an assessee should conduct its business. The court will not question the business expediency of a transaction, even if a third party also benefits.

346

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2006 to 2026.

Also referred to as

Eastern Investments Ltd. v. CIT · 38 ITR 601 · commercial expediency · business expediency · related party transaction · enduring benefit · business expenditure · prudent businessman · disallowance of interest expenditure

Sections most often in play

Section 143(3)Section 147Section 148Section 14ASection 37Section 234BSection 40A(2)(b)Section 37(1)

Issues it is cited on

interest on interestaccumulated profitssection 40a(2)(b)commercial expediencyrelated party transactionbusiness expediencysection 194jenduring benefitsection 40a(2)section 14a(2)disallowance of interest expendituresection 36(1)(vii)

Judgments citing Eastern Investments Ltd. v. CIT

Hinduja Group India Ltd, Mumbai vs. ACIT RG 6(3), Mumbai

In the result, appeals for A

ITA 4458/MUM/2014[2009-10]Status: DisposedITAT Mumbai17 May 2018AY 2009-10

Bench: Shri R.C.Sharma & Shri Amarjit Singh

Section 115Section 143(3)Section 40

…nd in order to indirectly facilitate the carrying on the business. The above test in Atherton's case (supra) has been approved by this court in several decisions e.g. Eastern Investments Ltd. v. CIT (1951) 20 ITR 1 (SO, CIT v. Chandulal Keshavlal & Co. (1960) 38 ITR 601 (SC) iii) The apex court in Travancore Titanium Products Ltd. v. CIT - 60 ITR 277 has held that "but every item of expenditure merely because it is connected with the trade may not necessarily be treated as a permissible deduction. A fairly reliable approach for determining what may be regarded normally as expenditure laid out or expended wholly a…

S.P. Corporation, Mumbai vs. A.C.I.T. RG. 11(1), Mumbai

In the result, appeal of the assessee for the Assessment Years

ITA 6298/MUM/2012[2009-10]Status: DisposedITAT Mumbai16 May 2018AY 2009-10

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Perci PardiwalaFor Respondent: Shri V. Justin
Section 143(3)

…wance. Reliance is placed on the decisions of CIT v. Rajendra 29 ITA.No. 1865 & 1464 /MUM/2009 ITA.No. 2594 TO 2596, 6857 & 2747/MUM/2011 ITA.No. 6298 & 2626/MUM/2012 M/s. S.P. Corporation Prasad Moody. [115 ITR 519 (SC)] and Eastern Investments Ltd. v. CIT [20 ITR 1 (SC)]. 30. We have heard the rival submissions and perused the orders of the Authorities below. On a perusal of the Assessment Order, we find that the Assessing Officer disallowed boat hire charges for the reason that the expenditure incurred is more and the assessee has received less rentals from boat hiring business. He also observed that, boat i…

S.P. Corporation, Mumbai vs. A.C.I.T.RG.11(1), Mumbai

In the result, appeal of the assessee for the Assessment Years

ITA 2626/MUM/2012[2008-09]Status: DisposedITAT Mumbai16 May 2018AY 2008-09

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Perci PardiwalaFor Respondent: Shri V. Justin
Section 143(3)

…wance. Reliance is placed on the decisions of CIT v. Rajendra 29 ITA.No. 1865 & 1464 /MUM/2009 ITA.No. 2594 TO 2596, 6857 & 2747/MUM/2011 ITA.No. 6298 & 2626/MUM/2012 M/s. S.P. Corporation Prasad Moody. [115 ITR 519 (SC)] and Eastern Investments Ltd. v. CIT [20 ITR 1 (SC)]. 30. We have heard the rival submissions and perused the orders of the Authorities below. On a perusal of the Assessment Order, we find that the Assessing Officer disallowed boat hire charges for the reason that the expenditure incurred is more and the assessee has received less rentals from boat hiring business. He also observed that, boat i…

S.P. Corporation, Mumbai vs. Asst CIT RG 11(1), Mumbai

In the result, appeal of the assessee for the Assessment Years

ITA 6857/MUM/2011[2007-08]Status: DisposedITAT Mumbai16 May 2018AY 2007-08

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Perci PardiwalaFor Respondent: Shri V. Justin
Section 143(3)

…wance. Reliance is placed on the decisions of CIT v. Rajendra 29 ITA.No. 1865 & 1464 /MUM/2009 ITA.No. 2594 TO 2596, 6857 & 2747/MUM/2011 ITA.No. 6298 & 2626/MUM/2012 M/s. S.P. Corporation Prasad Moody. [115 ITR 519 (SC)] and Eastern Investments Ltd. v. CIT [20 ITR 1 (SC)]. 30. We have heard the rival submissions and perused the orders of the Authorities below. On a perusal of the Assessment Order, we find that the Assessing Officer disallowed boat hire charges for the reason that the expenditure incurred is more and the assessee has received less rentals from boat hiring business. He also observed that, boat i…

ACIT 11(1), Mumbai vs. S.P. Corporation, Mumbai

In the result, appeal of the assessee for the Assessment Years

ITA 2747/MUM/2011[2004-05]Status: DisposedITAT Mumbai16 May 2018AY 2004-05

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Perci PardiwalaFor Respondent: Shri V. Justin
Section 143(3)

…wance. Reliance is placed on the decisions of CIT v. Rajendra 29 ITA.No. 1865 & 1464 /MUM/2009 ITA.No. 2594 TO 2596, 6857 & 2747/MUM/2011 ITA.No. 6298 & 2626/MUM/2012 M/s. S.P. Corporation Prasad Moody. [115 ITR 519 (SC)] and Eastern Investments Ltd. v. CIT [20 ITR 1 (SC)]. 30. We have heard the rival submissions and perused the orders of the Authorities below. On a perusal of the Assessment Order, we find that the Assessing Officer disallowed boat hire charges for the reason that the expenditure incurred is more and the assessee has received less rentals from boat hiring business. He also observed that, boat i…

S.P Corporation, Mumbai vs. ACIT RG 11(1), Mumbai

In the result, appeal of the assessee for the Assessment Years

ITA 2596/MUM/2011[2006-07]Status: DisposedITAT Mumbai16 May 2018AY 2006-07

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Perci PardiwalaFor Respondent: Shri V. Justin
Section 143(3)

…wance. Reliance is placed on the decisions of CIT v. Rajendra 29 ITA.No. 1865 & 1464 /MUM/2009 ITA.No. 2594 TO 2596, 6857 & 2747/MUM/2011 ITA.No. 6298 & 2626/MUM/2012 M/s. S.P. Corporation Prasad Moody. [115 ITR 519 (SC)] and Eastern Investments Ltd. v. CIT [20 ITR 1 (SC)]. 30. We have heard the rival submissions and perused the orders of the Authorities below. On a perusal of the Assessment Order, we find that the Assessing Officer disallowed boat hire charges for the reason that the expenditure incurred is more and the assessee has received less rentals from boat hiring business. He also observed that, boat i…

S.P Corporation, Mumbai vs. ACIT RG 11(1), Mumbai

In the result, appeal of the assessee for the Assessment Years

ITA 2595/MUM/2011[2004-05]Status: DisposedITAT Mumbai16 May 2018AY 2004-05

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Perci PardiwalaFor Respondent: Shri V. Justin
Section 143(3)

…wance. Reliance is placed on the decisions of CIT v. Rajendra 29 ITA.No. 1865 & 1464 /MUM/2009 ITA.No. 2594 TO 2596, 6857 & 2747/MUM/2011 ITA.No. 6298 & 2626/MUM/2012 M/s. S.P. Corporation Prasad Moody. [115 ITR 519 (SC)] and Eastern Investments Ltd. v. CIT [20 ITR 1 (SC)]. 30. We have heard the rival submissions and perused the orders of the Authorities below. On a perusal of the Assessment Order, we find that the Assessing Officer disallowed boat hire charges for the reason that the expenditure incurred is more and the assessee has received less rentals from boat hiring business. He also observed that, boat i…

S.P Corporation, Mumbai vs. ACIT RG 11(1), Mumbai

In the result, appeal of the assessee for the Assessment Years

ITA 2594/MUM/2011[2003-04]Status: DisposedITAT Mumbai16 May 2018AY 2003-04

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Perci PardiwalaFor Respondent: Shri V. Justin
Section 143(3)

…wance. Reliance is placed on the decisions of CIT v. Rajendra 29 ITA.No. 1865 & 1464 /MUM/2009 ITA.No. 2594 TO 2596, 6857 & 2747/MUM/2011 ITA.No. 6298 & 2626/MUM/2012 M/s. S.P. Corporation Prasad Moody. [115 ITR 519 (SC)] and Eastern Investments Ltd. v. CIT [20 ITR 1 (SC)]. 30. We have heard the rival submissions and perused the orders of the Authorities below. On a perusal of the Assessment Order, we find that the Assessing Officer disallowed boat hire charges for the reason that the expenditure incurred is more and the assessee has received less rentals from boat hiring business. He also observed that, boat i…

DCIT, Circle-2, Kolkata vs. M/S. Infinity Infotech Parks Ltd, Kolkata

In the result, the appeal of revenue is dismissed

ITA 1317/KOL/2012[2009-10]Status: DisposedITAT Kolkata14 May 2018AY 2009-10

Bench: "ी जे. सुधाकर रे"डी, लेखा सद"य एवं/And "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri J. Sudhakar Reddy, Am & Shri A. T. Varkey, Jm]

Section 14A

…irectly to facilitate the carrying on the business. The above test in Atherton' s case [1925] 10 TC 155 (HL) has been approved by this court in several decisions, e.g., Eastern Investments Ltd. v. CIT [1951] 20 ITR 1, CIT v. Chandulal Keshavlal and Co. [1960] 38 ITR 601, etc. 25. In our opinion, the High Court as well as the Tribunal and other Income-tax authorities should have approached the question of allowability of interest on the borrowed funds from the above angle. In other words, the High Court and other authorities should have enquired as to whether the interest free loan was given to the sister company…

Bhinmal Contractors Property & Land Developers P. Ltd, Mumbai vs. ACIT 4(1), Mumbai

In the result, appeals are allowed in terms indicated hereinabove

ITA 7207/MUM/2012[2008-09]Status: DisposedITAT Mumbai26 Apr 2018AY 2008-09

Bench: Shri R.C.Sharma, Am & Shri Ram Lal Negi, Jm

Section 143(3)Section 194CSection 80Section 80I

…ed on the following judicial pronouncements in support the of the contention that the Assessing Officer cannot made arbitrary addition without any evidence :- M/s. Bhinmal Contractors Property & Land Developers P. Ltd • CIT V Chandanlal Keshawlal & Co. (1960) 38 ITR 601 (SC) • JK Woolen Mfrs V CIT (1969) 72 ITR 612 (SC) • Alluminium Corp of India Ltd V CIT (1972) 86 ITR 11 (SC) • OMKAR SAHAY MOHEMMAD SAIL 37 ITR 151 (SC) • Kishanchand Chelaram vs CIT 125 ITR 713 (SC) • Friends Clearing Agency (P) Ltd V CIT 237 CTR 464/332 ITR 269 • CIT v. SSP (P) Ltd {2011] 202 Taxman 386/14 taxmann.com 87(Punj & Har) • CIT Farid…

M/S.Filtrex Technologies Private Ltd., Bangalore vs. Asst. Commissioner of Income Tax, Bangalore

In the result, appeal by the Assessee is treated as allowed for statistical purpose

ITA 469/BANG/2017[2012-13]Status: DisposedITAT Bangalore11 Apr 2018AY 2012-13

Bench: Shri N.V Vasudevan & Shri Jason P Boazit(Tp)A Nos.469/Bang/2017 (Asst. Year – 2012-13) M/S Filtrex Technologies Pvt. Ltd., #36/4, Raghavendra Nagar, Near Ring Road, 4Th Cross, Hrbr Layout, Bangalore. Pan – Aaacf4091P. …..Appellant Vs. The Asst. Commissioner Of Income-Tax, Circle-(3)(1), Bengaluru. …. Respondent Appellant By : Shri Padmchand Khincha, C.A Respondent By : Shri C.H Sundar Rao, Cit(Dr) Date Of Hearing : 08-03-2018 Date Of Pronouncement : 11-04-2018 O R D E R

For Appellant: Shri Padmchand Khincha, C.AFor Respondent: Shri C.H Sundar Rao, CIT(DR)
Section 143(3)Section 92

…ognized in India's tax jurisprudence. It is well settled that the revenue cannot dictate to the assessee as to how he should conduct his business and it is not for them to tell the assessee as to what expenditure the assessee can incur (Eastern Investment Ltd 20 ITR 1 (SC), Walchand & Co 65 ITR 381 (SC) followed). Even Rule 10B(1)(a) does not authorise disallowance of expenditure on the ground that it was not necessary or prudent for the assessee to have incurred the same. 22. The Hon’ble Delhi High Court in the case of Cushman & Wakefield India Private Limited ITA No.475/2012 dated 23.5.2014 367ITR 730 (Del), o…

DCIT Cir 3(3), Mumbai vs. Small Industries Development Bank of India Ltd, Mumbai

In the result, appeal of the assessee is partly allowed

ITA 4220/MUM/2011[2007-08]Status: DisposedITAT Mumbai23 Mar 2018AY 2007-08

Bench: Shri G.S. Pannu & Shri Pawan Singh

For Respondent: Shri Jayant Kumar
Section 143(3)Section 147Section 234DSection 36(1)(viia)Section 36(1)(viii)

…Thermal Power Corporation vs. CIT (229 ITR 383) (SC); (ii) the principles laid down in Circular No.14(XL-35) dated 11-4-1955 of the Central Board of Direct Taxes; (iii) the principle laid down in Commissioner of Income-tax v. Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC) and (iv) the principle laid down in Kedarnath Jute Mfg. Co. Ltd., 82 ITR 363 (S.C.), Sutlej Cotton Mills Ltd., 116 ITR 1 (S.C.), Fort Properties P. Ltd., 208 ITR 232 (Bom.) and Tuticorin Alkali Chemicals & Fertilizers Ltd., 227 ITR 172 (S.C.) wherein it has been held that deductions/allowances are to be made as per provisions of law and not a…

DCIT Cir 3(3), Mumbai vs. Small Industries Development Bank of India Ltd, Mumbai

In the result, appeal of the assessee is partly allowed

ITA 4219/MUM/2011[2006-07]Status: DisposedITAT Mumbai23 Mar 2018AY 2006-07

Bench: Shri G.S. Pannu & Shri Pawan Singh

For Respondent: Shri Jayant Kumar
Section 143(3)Section 147Section 234DSection 36(1)(viia)Section 36(1)(viii)

…Thermal Power Corporation vs. CIT (229 ITR 383) (SC); (ii) the principles laid down in Circular No.14(XL-35) dated 11-4-1955 of the Central Board of Direct Taxes; (iii) the principle laid down in Commissioner of Income-tax v. Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC) and (iv) the principle laid down in Kedarnath Jute Mfg. Co. Ltd., 82 ITR 363 (S.C.), Sutlej Cotton Mills Ltd., 116 ITR 1 (S.C.), Fort Properties P. Ltd., 208 ITR 232 (Bom.) and Tuticorin Alkali Chemicals & Fertilizers Ltd., 227 ITR 172 (S.C.) wherein it has been held that deductions/allowances are to be made as per provisions of law and not a…

Small Industries Development Bank of India, Mumbai vs. DCIT RG 3(3), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 4048/MUM/2011[2007-08]Status: DisposedITAT Mumbai23 Mar 2018AY 2007-08

Bench: Shri G.S. Pannu & Shri Pawan Singh

For Respondent: Shri Jayant Kumar
Section 143(3)Section 147Section 234DSection 36(1)(viia)Section 36(1)(viii)

…Thermal Power Corporation vs. CIT (229 ITR 383) (SC); (ii) the principles laid down in Circular No.14(XL-35) dated 11-4-1955 of the Central Board of Direct Taxes; (iii) the principle laid down in Commissioner of Income-tax v. Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC) and (iv) the principle laid down in Kedarnath Jute Mfg. Co. Ltd., 82 ITR 363 (S.C.), Sutlej Cotton Mills Ltd., 116 ITR 1 (S.C.), Fort Properties P. Ltd., 208 ITR 232 (Bom.) and Tuticorin Alkali Chemicals & Fertilizers Ltd., 227 ITR 172 (S.C.) wherein it has been held that deductions/allowances are to be made as per provisions of law and not a…

Small Industries Development Bank of India, Mumbai vs. DCIT RG 3(3), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 4047/MUM/2011[2006-07]Status: DisposedITAT Mumbai23 Mar 2018AY 2006-07

Bench: Shri G.S. Pannu & Shri Pawan Singh

For Respondent: Shri Jayant Kumar
Section 143(3)Section 147Section 234DSection 36(1)(viia)Section 36(1)(viii)

…Thermal Power Corporation vs. CIT (229 ITR 383) (SC); (ii) the principles laid down in Circular No.14(XL-35) dated 11-4-1955 of the Central Board of Direct Taxes; (iii) the principle laid down in Commissioner of Income-tax v. Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC) and (iv) the principle laid down in Kedarnath Jute Mfg. Co. Ltd., 82 ITR 363 (S.C.), Sutlej Cotton Mills Ltd., 116 ITR 1 (S.C.), Fort Properties P. Ltd., 208 ITR 232 (Bom.) and Tuticorin Alkali Chemicals & Fertilizers Ltd., 227 ITR 172 (S.C.) wherein it has been held that deductions/allowances are to be made as per provisions of law and not a…

Small Industries Development Bank of India, Mumbai vs. DCIT Cir 3(3), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 4045/MUM/2011[2004-05]Status: DisposedITAT Mumbai23 Mar 2018AY 2004-05

Bench: Shri G.S. Pannu & Shri Pawan Singh

For Respondent: Shri Jayant Kumar
Section 143(3)Section 147Section 234DSection 36(1)(viia)Section 36(1)(viii)

…Thermal Power Corporation vs. CIT (229 ITR 383) (SC); (ii) the principles laid down in Circular No.14(XL-35) dated 11-4-1955 of the Central Board of Direct Taxes; (iii) the principle laid down in Commissioner of Income-tax v. Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC) and (iv) the principle laid down in Kedarnath Jute Mfg. Co. Ltd., 82 ITR 363 (S.C.), Sutlej Cotton Mills Ltd., 116 ITR 1 (S.C.), Fort Properties P. Ltd., 208 ITR 232 (Bom.) and Tuticorin Alkali Chemicals & Fertilizers Ltd., 227 ITR 172 (S.C.) wherein it has been held that deductions/allowances are to be made as per provisions of law and not a…

Ashok Amritraj, Chennai vs. ITO, Chennai

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

ITA 1244/CHNY/2017[2014-15]Status: DisposedITAT Chennai20 Feb 2018AY 2014-15

Bench: Shri A. Mohan Alankamony & Shri Duvvuru Rl Reddyआयकर अपील सं./I.T.A.No.1244/Mds/2017 "नधा"रण वष"/Assessment Year:2014-15 Shri Ashok Amritraj, The Income Tax Officer, Flat No. 10, Chesney Lane, Vs. International Taxation 1(1), Ethiraj Salai, Egmore, Chennai 34. Chennai 600 008. [Pan: Aabpa2975R] (अपीलाथ" /Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से / Appellant By : Shri K. Balasubramanian, Advocate ""यथ" क" ओर से/Respondent By : Shri S. Mohd. Mustafa, Jcit सुनवाई क" तार"ख/ Date Of Hearing : 29.01.2018 घोषणा क" तार"ख /Date Of Pronouncement : 20.02.2018 आदेश /O R D E R Per Duvvuru Rl Reddy:

For Appellant: Shri K. Balasubramanian, AdvocateFor Respondent: Shri S. Mohd. Mustafa, JCIT
Section 142(1)Section 143(2)Section 57

…observed the following propositions in respect of deduction of an expenditure under section 57(iii) of the Act after analysing the statutory language and principles laid down by the Hon’ble Supreme Court in the case of Eastern Investments Ltd. vs. CIT (1951) 20 ITR 1 (SC) and Seth R. Dalmia vs. CIT (1977) 110 ITR 644 (SC) : (i) in order to decide whether an expenditure is a permissible deduction under section 57(iii) of the Act, the nature of the expenditure must be examined. (ii) the expenditure must not be in the nature of capital expenditure or personal expenses of the assessee; (iii) the expenditure must hav…

ACIT, Circle-4(1), Visakhapatnam vs. Sri Varalakshmi Jute Twine Mills Pvt. Ltd, Rajam

In the result, appeals filed by the Revenue in ITA

ITA 458/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…oyees of the company. 16. So far as business expediency is concerned, the ld. CIT(A) by relying on the decisions of the Apex Court in the case of CIT vs. ITA Nos. 458 & 404/VIZ/2017 (M/s. Sri Varalakshmi Jute Twine Mills Pvt. Ltd.) Chandulal Keshavalal & Co. (38 ITR 601); CIT vs. Tata Sons Ltd. (111 ITR 290) and also Gordon Woodroffe Leather Manufacturing Co. (44 ITR 551) observed that assessee-company has leased out the two mills which effectively mean that the lessee would be in possession of the factory premises and also operate and manage the mills. As per the lease agreement, the lessee is required to refer…

Sri Varalakshmi Jute Twine Mills Private Limited, Rajam vs. DCIT, Circle-4(1), Visakhapatnam

In the result, appeals filed by the Revenue in ITA

ITA 404/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…oyees of the company. 16. So far as business expediency is concerned, the ld. CIT(A) by relying on the decisions of the Apex Court in the case of CIT vs. ITA Nos. 458 & 404/VIZ/2017 (M/s. Sri Varalakshmi Jute Twine Mills Pvt. Ltd.) Chandulal Keshavalal & Co. (38 ITR 601); CIT vs. Tata Sons Ltd. (111 ITR 290) and also Gordon Woodroffe Leather Manufacturing Co. (44 ITR 551) observed that assessee-company has leased out the two mills which effectively mean that the lessee would be in possession of the factory premises and also operate and manage the mills. As per the lease agreement, the lessee is required to refer…

Sri Varalakshmi Jute Twine Mills Pvt. Ltd., Rajam vs. The ITO, Srikakulam

In the result, appeals filed by the Revenue in ITA

ITA 349/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR
Section 143(1)Section 143(3)

…oyees of the company. 16. So far as business expediency is concerned, the ld. CIT(A) by relying on the decisions of the Apex Court in the case of CIT vs. ITA Nos. 458 & 404/VIZ/2017 (M/s. Sri Varalakshmi Jute Twine Mills Pvt. Ltd.) Chandulal Keshavalal & Co. (38 ITR 601); CIT vs. Tata Sons Ltd. (111 ITR 290) and also Gordon Woodroffe Leather Manufacturing Co. (44 ITR 551) observed that assessee-company has leased out the two mills which effectively mean that the lessee would be in possession of the factory premises and also operate and manage the mills. As per the lease agreement, the lessee is required to refer…