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

M/S. India Medtronics Pvt.Ltd., Baroda vs. The Dy.CIT., Circle-1(2), Baroda

In the result, similarly the Assessee’s appeal is partly allowed

ITA 480/AHD/2011[2005-06]Status: DisposedITAT Mumbai30 Sept 2022AY 2005-06

Bench: Shri Amit Shukla & Shri Gagan Goyal

For Appellant: Sh. Rajan R. Vora with Sh. Nikhil TiwariFor Respondent: Dr. Yogesh Kamath/ Akhtar Hussain Ansari
Section 234BSection 271Section 274Section 92C

…ival contentions and found that expenditure has been incurred under the commercial expediency. Relying on the decision of Supreme Court in case of Dhanarajgirji Raja Narsingirji (91 ITR 544), Panipat Woolen and general Mills (103 ITR 66), Eastern Investments (20 ITR 1) and the decision of Bombay High Court in case of Dinshaw (F.E) Ltd. (36 ITR 114), we do not find any merit for disallowance of expenditure incurred on purchase of catalogues and broachers, which were wholly and exclusively for the purpose of business. Accordingly, AO is directed to delete the same.” 78. Respectfully following the order of the Tribu…

DCIT Circle-9(1), New Delhi vs. Federal Mogul Goetze (India) Ltd., New Delhi

In the result, both the appeals filed by Revenue are

ITA 8286/DEL/2019[2013-14]Status: DisposedITAT Delhi16 Sept 2022AY 2013-14

Bench: Or During The Hearing Of This Appeal.”

Section 143(3)Section 148Section 40

…6/Del/2019 DCIT vs. Federal Mogul Goetze (India) Ltd. • S.A. Builders Ltd. vs CIT [2007] 288 ITR 1 (SC) • Sasoon J. David & Co. Pvt. Ltd. vs CIT [1979] 118 ITR 261 (SC) • Shahzada Nand & Sons vs CIT 108 ITR 358 (SC) • CIT vs Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC) (C.1.1) Ld. Counsel for the assessee also submitted that the disallowances in respect of club membership expenses was deleted by the Ld. CIT(A) in assessee’s own case for Assessment Years 2009-10, 2010-11 and 2014-15, and he added that Revenue was not in appeal against these orders of the Ld. CIT(A) on the issue of club membership expenses…

DCIT Circle-9(1), New Delhi vs. Federal Mogul Goetze (India) Ltd., New Delhi

In the result, both the appeals filed by Revenue are

ITA 8285/DEL/2019[2012-13]Status: DisposedITAT Delhi16 Sept 2022AY 2012-13

Bench: Or During The Hearing Of This Appeal.”

Section 143(3)Section 148Section 40

…6/Del/2019 DCIT vs. Federal Mogul Goetze (India) Ltd. • S.A. Builders Ltd. vs CIT [2007] 288 ITR 1 (SC) • Sasoon J. David & Co. Pvt. Ltd. vs CIT [1979] 118 ITR 261 (SC) • Shahzada Nand & Sons vs CIT 108 ITR 358 (SC) • CIT vs Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC) (C.1.1) Ld. Counsel for the assessee also submitted that the disallowances in respect of club membership expenses was deleted by the Ld. CIT(A) in assessee’s own case for Assessment Years 2009-10, 2010-11 and 2014-15, and he added that Revenue was not in appeal against these orders of the Ld. CIT(A) on the issue of club membership expenses…

M/S Bosch Limited, Bangalore vs. Assistant Commissioner of Income Tax Ltu Circle-1, Bangalore

In the result, appeal of the assessee is partly allowed

ITA 1629/BANG/2018[2013-14]Status: DisposedITAT Bangalore13 Sept 2022AY 2013-14

Bench: Shri N.V. Vasudevan & Ms. Padmavathy Sassessment Year : 2013-14 Bosch Limited, Vs. The Assistant Commissioner Hosur Road, Adugodi, Of Income Tax, Ltu, Bangalore – 560 030. Circle 1, Pan: Aaacm 9840P Bangalore. Appellant Respondent Appellant By : Shri Percy Pardiwala, Advocate Respondent By : Shri V S Chakrapani, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 01.09.2022 Date Of Pronouncement : 13.09.2022 O R D E R Per Padmavathy S.2. This Appeal Is Against The Order Of The Cit(Appeals), Bangalore-9, Bangalore Dated 31.3.2018 For The Assessment Year 2013- 14. 3. The Assessee Raised Grounds Pertaining To The Following Issues:- Deduction U/S. 35(2Ab) Computed On Net Expenditure As Opposed To Gross Expenditure Disallowance Of Provision For Bad & Doubtful Debts I) Disallowance Of Provision For Long Term Service Award Disallowance Of Expenditure U/S. 14A Of The Act Ii) Page 2 Of 67

For Appellant: Shri Percy Pardiwala, AdvocateFor Respondent: Shri V S Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 14ASection 35Section 37Section 43BSection 80J

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND Ms. PADMAVATHY S, ACCOUNTANT MEMBER Assessment year : 2013-14 Bosch Limited, Vs. The Assistant Commissioner Hosur Road, Adugodi, of Income Tax, LTU, Bangalore – 560 030. Circle 1, PAN: AAACM 9840P Bangalore. APPELLANT RESPONDENT Appellant by : Shri Percy Pardiwala, Advocate Respondent by : Shri V S Chakrapani, CIT(DR)(ITAT), Bengaluru. Date of hearing : 01.09.2022 Date of Pronouncement : 13.09.2022 O R D E R Per Padmavathy S., Accountant Member 2. This appeal is against the order of the CIT(Appeals), Bangalo…

M/S. Odisha Power Generation Corporation Limited, Bhubaneswar vs. DCIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 131/CTK/2019[2014-15]Status: DisposedITAT Cuttack12 Sept 2022AY 2014-15

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…o be judged from the point of view of the businessman and not of the revenue. In support of this contention, he placed reliance upon the judgment of the Supreme Court in CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381, Eastern Investments Ltd. v. CIT [1951] 20 ITR 1 (SC) and J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC). 15. The principle laid down by the Supreme Court in all the three judgments is similar. These judgments state that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively laid out for the purpose of the assessee's business, reasonablene…

M/S. Odisha Power Generation Corporation Limited, Bhubaneswar vs. DCIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 130/CTK/2019[2013-14]Status: DisposedITAT Cuttack12 Sept 2022AY 2013-14

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…o be judged from the point of view of the businessman and not of the revenue. In support of this contention, he placed reliance upon the judgment of the Supreme Court in CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381, Eastern Investments Ltd. v. CIT [1951] 20 ITR 1 (SC) and J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC). 15. The principle laid down by the Supreme Court in all the three judgments is similar. These judgments state that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively laid out for the purpose of the assessee's business, reasonablene…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 64/CTK/2017[2009-10]Status: DisposedITAT Cuttack12 Sept 2022AY 2009-10

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…o be judged from the point of view of the businessman and not of the revenue. In support of this contention, he placed reliance upon the judgment of the Supreme Court in CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381, Eastern Investments Ltd. v. CIT [1951] 20 ITR 1 (SC) and J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC). 15. The principle laid down by the Supreme Court in all the three judgments is similar. These judgments state that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively laid out for the purpose of the assessee's business, reasonablene…

ACIT, Corporate Circle-1(2), Bhubaneswar vs. M/S. Orissa Power Generation Corporation Ltd., Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 288/CTK/2016[2011-12]Status: DisposedITAT Cuttack12 Sept 2022AY 2011-12

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…o be judged from the point of view of the businessman and not of the revenue. In support of this contention, he placed reliance upon the judgment of the Supreme Court in CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381, Eastern Investments Ltd. v. CIT [1951] 20 ITR 1 (SC) and J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC). 15. The principle laid down by the Supreme Court in all the three judgments is similar. These judgments state that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively laid out for the purpose of the assessee's business, reasonablene…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. DCIT, Circle-1(1), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 267/CTK/2016[2011-12]Status: DisposedITAT Cuttack12 Sept 2022AY 2011-12

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…o be judged from the point of view of the businessman and not of the revenue. In support of this contention, he placed reliance upon the judgment of the Supreme Court in CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381, Eastern Investments Ltd. v. CIT [1951] 20 ITR 1 (SC) and J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC). 15. The principle laid down by the Supreme Court in all the three judgments is similar. These judgments state that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively laid out for the purpose of the assessee's business, reasonablene…

ACIT, Corporate Circle-1(2), Bhubaneswar vs. M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 175/CTK/2016[2012-13]Status: DisposedITAT Cuttack12 Sept 2022AY 2012-13

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…o be judged from the point of view of the businessman and not of the revenue. In support of this contention, he placed reliance upon the judgment of the Supreme Court in CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381, Eastern Investments Ltd. v. CIT [1951] 20 ITR 1 (SC) and J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC). 15. The principle laid down by the Supreme Court in all the three judgments is similar. These judgments state that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively laid out for the purpose of the assessee's business, reasonablene…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 173/CTK/2016[2012-13]Status: DisposedITAT Cuttack12 Sept 2022AY 2012-13

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…o be judged from the point of view of the businessman and not of the revenue. In support of this contention, he placed reliance upon the judgment of the Supreme Court in CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381, Eastern Investments Ltd. v. CIT [1951] 20 ITR 1 (SC) and J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC). 15. The principle laid down by the Supreme Court in all the three judgments is similar. These judgments state that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively laid out for the purpose of the assessee's business, reasonablene…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. DCIT, Circle-1(1), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 84/CTK/2014[2010-11]Status: DisposedITAT Cuttack12 Sept 2022AY 2010-11

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…o be judged from the point of view of the businessman and not of the revenue. In support of this contention, he placed reliance upon the judgment of the Supreme Court in CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381, Eastern Investments Ltd. v. CIT [1951] 20 ITR 1 (SC) and J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC). 15. The principle laid down by the Supreme Court in all the three judgments is similar. These judgments state that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively laid out for the purpose of the assessee's business, reasonablene…

DCIT, Bhubaneswar vs. Orissa Power Generation Corporation Ltd, Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 114/CTK/2014[2010-11]Status: DisposedITAT Cuttack12 Sept 2022AY 2010-11

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…o be judged from the point of view of the businessman and not of the revenue. In support of this contention, he placed reliance upon the judgment of the Supreme Court in CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381, Eastern Investments Ltd. v. CIT [1951] 20 ITR 1 (SC) and J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC). 15. The principle laid down by the Supreme Court in all the three judgments is similar. These judgments state that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively laid out for the purpose of the assessee's business, reasonablene…

Pbs Oil Industries Limited, Dhamtari vs. Deputy Commissioner of Income Tax, Circle 2(1), Raipur

Appeal is allowed in terms of our aforesaid observations

ITA 6/RPR/2018[2014-15]Status: DisposedITAT Raipur08 Sept 2022AY 2014-15

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No. 06/Rpr/2018 "नधा"रण वष" / Assessment Year : 2014-15 Pbs Oil Industries Limited Plot No.1, Arjuni Industrial Area, Dhamtari (C.G.)-493773 Pan : Aabcp3646B .......अपीलाथ" / Appellant बनाम / V/S. The Deputy Commissioner Of Income Tax-2(1), Raipur (C.G.) ……""यथ" / Respondent Assessee By : Shri R.B Doshi, Ar Revenue By : Shri G.N Singh, Sr. Dr सुनवाई क" तार"ख / Date Of Hearing : 04.08.2022 घोषणा क" तार"ख / Date Of Pronouncement : 09.09.2022

For Appellant: Shri R.B Doshi, ARFor Respondent: Shri G.N Singh, Sr. DR
Section 143(3)Section 37(1)

…आयकर अपील"य अ"धकरण "यायपीठ रायपुर म"। IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI RAVISH SOOD, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No. 06/RPR/2018 "नधा"रण वष" / Assessment Year : 2014-15 PBS Oil Industries Limited Plot No.1, Arjuni Industrial Area, Dhamtari (C.G.)-493773 PAN : AABCP3646B .......अपीलाथ" / Appellant बनाम / V/s. The Deputy Commissioner of Income Tax-2(1), Raipur (C.G.) ……""यथ" / Respondent Assessee by : Shri R.B Doshi, AR Revenue by : Shri G.N Singh, Sr. DR सुनवाई क" तार"ख / Date of Hearing : 04.08.2022 घोषणा क" तार"ख / Date of Pr…

Kimberly Clark Lever Pvt. Ltd., Pune vs. Deputy Commissioner of Income-Tax

In the result, appeal of assessee is allowed for statistical purposes and the appeal of Revenue is dismissed in the above terms

ITA 492/PUN/2016[2011-12]Status: DisposedITAT Pune30 Aug 2022AY 2011-12
For Appellant: Shri Percy PardiwalaFor Respondent: Shri J. P. Chadraker
Section 143(3)Section 92BSection 92C

…expenditure is not incurred only and exclusively for the business purpose of the assessee. Reliance in this regard can be made on the following decisions :- (i) Witshire Brewery Ltd. v. Bruce 6 Tax Cases 399 (HL); (ii) CIT v. Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC); (iii) CIT v. Royal Calcutta Turf Club [1961] 41 ITR 414 (SC); (iv) Eastern Investment Ltd. v. CIT [1951] 20 ITR 1 (SC); (v) Sassoon J. David & Co. (P.) Ltd. vs. CIT, 118 ITR 261 (SC). the direction of the Hon’ble DRP to Assessing Officer consider the addition u/s 37 alternatively. 14. The ground No.2 challenges TP adjustment on account of in…

Deputy Commissioner of Income-Tax, Pune vs. M/S. Kimberly Clark Lever Pvt. Ltd., Pune

In the result, appeal of assessee is allowed for statistical purposes and the appeal of Revenue is dismissed in the above terms

ITA 351/PUN/2016[2011-12]Status: DisposedITAT Pune30 Aug 2022AY 2011-12
For Appellant: Shri Percy PardiwalaFor Respondent: Shri J. P. Chadraker
Section 143(3)Section 92BSection 92C

…expenditure is not incurred only and exclusively for the business purpose of the assessee. Reliance in this regard can be made on the following decisions :- (i) Witshire Brewery Ltd. v. Bruce 6 Tax Cases 399 (HL); (ii) CIT v. Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC); (iii) CIT v. Royal Calcutta Turf Club [1961] 41 ITR 414 (SC); (iv) Eastern Investment Ltd. v. CIT [1951] 20 ITR 1 (SC); (v) Sassoon J. David & Co. (P.) Ltd. vs. CIT, 118 ITR 261 (SC). the direction of the Hon’ble DRP to Assessing Officer consider the addition u/s 37 alternatively. 14. The ground No.2 challenges TP adjustment on account of in…

The DCIT, Circle-1, Bharuch vs. M/S. Gujarat Narmada Valley Fertilizers & Chemicals Ltd., Bharuch

In the result, this ground of appeal is also dismissed

ITA 432/SRT/2018[2012-13]Status: DisposedITAT Surat22 Aug 2022AY 2012-13

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.431/Srt/2018 (Ay 2007-08) & (Hearing In Virtual Court) Deputy Commissioner Of Gujarat Narmada Valley Income-Tax, Circle-1 Bharuch, Fertilizers & Chemicals Vs Above Bank Of Baroda, Ltd. Station Road, Bharuch- P.O. Narmada Nagar, 320001 Dist. Bharuch-392015 Pan : Aaacg 8372 Q अपीलाथ"/Appellant ""यथ" /Respondent आ.अ.सं./Ita No.432/Srt/2018 & ""या"ेप/C.O. No.12/Srt/2021 [A/O Ita No.432/Srt/2018] (Ay 2012-13) Deputy Commissioner Of Gujarat Narmada Valley Income-Tax, Circle-1 Fertilizers & Chemicals Ltd. Vs Bharuch, Above Bank Of P.O. Narmada Nagar, Dist. Baroda, Station Road, Bharuch-392015 Pan : Aaacg 8372 Q Bharuch-320001 अपीलाथ"/Appellant ""यथ" /Respondent/Co- Objector

Section 143(3)Section 254(1)

…assessee further submits that amendment in section 37 is prospective in nature and is applicable from AY 2015-16 onwards. To support his various contention, the ld AR for the assessee also relied on the following decisions,  CIT Vs Chandulal Keshavlal & Co (38 ITR 601),  CIT Vs Madras Refineries (266 ITR 170),  CIT Vs Chetan Transport Corporation (219 ITR 203),  Maharashtra State Finance Corporation Limited Vs DCIT (12 SOT 446),  Hindustan Petroleum Corporation Limited Vs DCIT (92 TTJ 168), 27 ITA No.431-432/SRT/2018 & CO 12/SRT/2021 (A.Ys 07-08 & 12-13) M/s Gujarat Narmada Valley Fertilizers & Chemicals…

The DCIT, Circle-1, Bharuch vs. M/S. Gujarat Narmada Valley Fertilizers & Chemicals Ltd., Bharuch

In the result, this ground of appeal is also dismissed

ITA 431/SRT/2018[2007-08]Status: DisposedITAT Surat22 Aug 2022AY 2007-08

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.431/Srt/2018 (Ay 2007-08) & (Hearing In Virtual Court) Deputy Commissioner Of Gujarat Narmada Valley Income-Tax, Circle-1 Bharuch, Fertilizers & Chemicals Vs Above Bank Of Baroda, Ltd. Station Road, Bharuch- P.O. Narmada Nagar, 320001 Dist. Bharuch-392015 Pan : Aaacg 8372 Q अपीलाथ"/Appellant ""यथ" /Respondent आ.अ.सं./Ita No.432/Srt/2018 & ""या"ेप/C.O. No.12/Srt/2021 [A/O Ita No.432/Srt/2018] (Ay 2012-13) Deputy Commissioner Of Gujarat Narmada Valley Income-Tax, Circle-1 Fertilizers & Chemicals Ltd. Vs Bharuch, Above Bank Of P.O. Narmada Nagar, Dist. Baroda, Station Road, Bharuch-392015 Pan : Aaacg 8372 Q Bharuch-320001 अपीलाथ"/Appellant ""यथ" /Respondent/Co- Objector

Section 143(3)Section 254(1)

…assessee further submits that amendment in section 37 is prospective in nature and is applicable from AY 2015-16 onwards. To support his various contention, the ld AR for the assessee also relied on the following decisions,  CIT Vs Chandulal Keshavlal & Co (38 ITR 601),  CIT Vs Madras Refineries (266 ITR 170),  CIT Vs Chetan Transport Corporation (219 ITR 203),  Maharashtra State Finance Corporation Limited Vs DCIT (12 SOT 446),  Hindustan Petroleum Corporation Limited Vs DCIT (92 TTJ 168), 27 ITA No.431-432/SRT/2018 & CO 12/SRT/2021 (A.Ys 07-08 & 12-13) M/s Gujarat Narmada Valley Fertilizers & Chemicals…

Kalaignar Tv Pvt. Ltd., Chennai vs. ACIT Non Corporate Circle 20(1), Chennai

ITA 2442/CHNY/2018[2012-13]Status: DisposedITAT Chennai20 Jul 2022AY 2012-13

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. Nos. 2442, 2443 & 2444/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13, 2013-14 & 2014-15 Kalaignar Tv Pvt. Ltd., The Assistant Commissioner Of “Anna Arivalayam”, 367/369, Anna Vs. Income Tax, Salai, Teynampet, Chennai 600 018. Non Corporate Circle 20(1), [Pan:Aadck0898E] Chennai. (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Sandeep Bagmar, Advocate ""थ" की ओर से/Respondent By : Shri M. Swaminathan, Sr. Standing Counsel & Ms. Pushpa, Jr. Standing Counsel सुनवाई की तारीख/ Date Of Hearing : 11.05.2022 घोषणा की तारीख /Date Of Pronouncement : 20.07.2022 आदेश /O R D E R Per V. Durga Rao: These Three Appeals Filed By The Assessee Are Directed Against Separate Orders Of The Ld. Commissioner Of Income Tax (Appeals) 14, Chennai, All Dated 30.05.2018 Relevant To The Assessment Years 2012- 13, 2013-14 & 2014-15. Since The Facts Are Identical & Common Issue Has Been Raised, All The Appeals Were Heard Together & Being Disposed Off By This Common Order For The Sake Of Brevity. In The Assessment Year 2012-13, The Assessee Has Raised Following Grounds: “The Grounds Of Appeal Stated Hereunder Are Independent Of & Without Prejudice To One Another:

For Appellant: Shri Sandeep Bagmar, AdvocateFor Respondent: Shri M. Swaminathan, Sr. Standing Counsel
Section 37Section 37(1)

…31 (Cal) 12. Atlas Cycle Industries Ltd. v. CIT [1990] 181 ITR 18 (P&H) 13. Gujarat Agro Oil Enterprises Ltd. v. CIT [2002] 256 ITR 230 (Guj) 14. Hiranandani Akruti JV v. DCIT [2017] 88 taxmann.com 209 (Mumbai-Trib) 15. CIT v. Chandulal Keshavlal & Co. [19601 38 ITR 601 (SC) 16. Sree Meenakshi Mills Ltd. v. CIT [19671 63 ITR 207 (SC) 17. The Weavers Mills Ltd. v. Balkis Ammal & Ors AIR 1969 MAD 462 18. McKnight (Inspector of Taxes) v. Sheppard [1999] 1 WLR 1333 5. On the other hand, the ld. DR has submitted that as per section 37(1) of the Act, such eligible expenditure should not be in the nature of capital expe…

Kalaignar Tv Pvt. Ltd., Chennai vs. ACIT Non Corporate Circle 20(1), Chennai

ITA 2444/CHNY/2018[2014-15]Status: DisposedITAT Chennai20 Jul 2022AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. Nos. 2442, 2443 & 2444/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13, 2013-14 & 2014-15 Kalaignar Tv Pvt. Ltd., The Assistant Commissioner Of “Anna Arivalayam”, 367/369, Anna Vs. Income Tax, Salai, Teynampet, Chennai 600 018. Non Corporate Circle 20(1), [Pan:Aadck0898E] Chennai. (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Sandeep Bagmar, Advocate ""थ" की ओर से/Respondent By : Shri M. Swaminathan, Sr. Standing Counsel & Ms. Pushpa, Jr. Standing Counsel सुनवाई की तारीख/ Date Of Hearing : 11.05.2022 घोषणा की तारीख /Date Of Pronouncement : 20.07.2022 आदेश /O R D E R Per V. Durga Rao: These Three Appeals Filed By The Assessee Are Directed Against Separate Orders Of The Ld. Commissioner Of Income Tax (Appeals) 14, Chennai, All Dated 30.05.2018 Relevant To The Assessment Years 2012- 13, 2013-14 & 2014-15. Since The Facts Are Identical & Common Issue Has Been Raised, All The Appeals Were Heard Together & Being Disposed Off By This Common Order For The Sake Of Brevity. In The Assessment Year 2012-13, The Assessee Has Raised Following Grounds: “The Grounds Of Appeal Stated Hereunder Are Independent Of & Without Prejudice To One Another:

For Appellant: Shri Sandeep Bagmar, AdvocateFor Respondent: Shri M. Swaminathan, Sr. Standing Counsel
Section 37Section 37(1)

…31 (Cal) 12. Atlas Cycle Industries Ltd. v. CIT [1990] 181 ITR 18 (P&H) 13. Gujarat Agro Oil Enterprises Ltd. v. CIT [2002] 256 ITR 230 (Guj) 14. Hiranandani Akruti JV v. DCIT [2017] 88 taxmann.com 209 (Mumbai-Trib) 15. CIT v. Chandulal Keshavlal & Co. [19601 38 ITR 601 (SC) 16. Sree Meenakshi Mills Ltd. v. CIT [19671 63 ITR 207 (SC) 17. The Weavers Mills Ltd. v. Balkis Ammal & Ors AIR 1969 MAD 462 18. McKnight (Inspector of Taxes) v. Sheppard [1999] 1 WLR 1333 5. On the other hand, the ld. DR has submitted that as per section 37(1) of the Act, such eligible expenditure should not be in the nature of capital expe…