Gordon Woodroffe Leather Mfg Co. v. CIT

44 ITR 551Supreme Court of India1962#5069 most cited

What is Gordon Woodroffe Leather Mfg Co. v. CIT authority for?

Expenditure incurred on grounds of commercial expediency to indirectly facilitate carrying on a business is allowable as a deduction under Section 37(1).

23

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2018 to 2022.

Also referred to as

Gordon Woodroffe Leather Mfg Co. v. CIT · Section 37(1) · commercial expediency · indirect facilitation of business · deductible expenditure · business expenditure

Judgments citing Gordon Woodroffe Leather Mfg Co. v. CIT

THRIVEI EARTHMOVERS PVT. LTD.,,SALEM vs. ACIT, CENTRAL CIRCLE (I/C),, SALEM

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

ITA 674/CHNY/2020[2013-14]Status: DisposedITAT Chennai23 Dec 2022AY 2013-14
For Appellant: Shri T. Banusekar, CAFor Respondent: Shri R. Mohan Reddy, CIT
Section 142(1)Section 143(3)Section 147Section 263

…d, it can inferred that expenditure was incurred voluntarily indirectly to facilitate the carrying on of the assessee company as the expenditure was incurred on grounds of commercial expediency. The Hon’ble SC in the case Gordon Woodrofee Leather Mfg vs. CIT, 44 ITR 551 (SC) held that any expenditure expended on the ground of commercial expediency in order to indirectly facilitate the carrying on the business is allowable as deduction. Therefore the claim falls within the purview of the provisions of Section37(1) of the Act. In the circumstances, the order of the ld. CIT(A) is based on proper appreciation of fact…

M/S. V.V.V. & SONS EDIBLE OILS LTD.,,VIRUDHUNAGAR vs. DCIT, CENTRAL-1,, MADURAI

In the result, the appeals of the assessee in ITA Nos

ITA 2281/CHNY/2019[2016-17]Status: DisposedITAT Chennai05 Aug 2022AY 2016-17

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Shri P. G. Sekar, C.A ""For Respondent: Dr. S. Palani Kumar,CIT
Section 143(3)

…आयकर अपीलीय अिधकरण,‘डी’ "याय पीठ, चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ीमहावीर "संह, उपा"य" एवं "ी जी. मंजुनाथ, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 2275, 2276, 2277, 2278, 2279, 2280 & 2281/CHNY/2019 िनधा"रण वष"/Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 & 2016-17 V.V.V. & Sons Edible Oils Ltd., The ACIT, 443, Main Bazaar, v. Central Circle-1, Virudhunagar – 626 001. Madurai. PAN: AACCV 6897R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपीलसं./ITA No.: 1765/CHNY/2019 िनधा…

M/S. V.V.V. & SONS EDIBLE OILS LTD.,,VIRUDHUNAGAR vs. DCIT, CENTRAL-1,, MADURAI

In the result, the appeals of the assessee in ITA Nos

ITA 2280/CHNY/2019[2015-16]Status: DisposedITAT Chennai05 Aug 2022AY 2015-16

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Shri P. G. Sekar, C.A ""For Respondent: Dr. S. Palani Kumar,CIT
Section 143(3)

…आयकर अपीलीय अिधकरण,‘डी’ "याय पीठ, चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ीमहावीर "संह, उपा"य" एवं "ी जी. मंजुनाथ, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 2275, 2276, 2277, 2278, 2279, 2280 & 2281/CHNY/2019 िनधा"रण वष"/Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 & 2016-17 V.V.V. & Sons Edible Oils Ltd., The ACIT, 443, Main Bazaar, v. Central Circle-1, Virudhunagar – 626 001. Madurai. PAN: AACCV 6897R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपीलसं./ITA No.: 1765/CHNY/2019 िनधा…

M/S. V.V.V. & SONS EDIBLE OILS LTD.,,VIRUDHUNAGAR vs. DCIT, CENTRAL-1,, MADURAI

In the result, the appeals of the assessee in ITA Nos

ITA 2279/CHNY/2019[2014-15]Status: DisposedITAT Chennai05 Aug 2022AY 2014-15

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Shri P. G. Sekar, C.A ""For Respondent: Dr. S. Palani Kumar,CIT
Section 143(3)

…आयकर अपीलीय अिधकरण,‘डी’ "याय पीठ, चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ीमहावीर "संह, उपा"य" एवं "ी जी. मंजुनाथ, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 2275, 2276, 2277, 2278, 2279, 2280 & 2281/CHNY/2019 िनधा"रण वष"/Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 & 2016-17 V.V.V. & Sons Edible Oils Ltd., The ACIT, 443, Main Bazaar, v. Central Circle-1, Virudhunagar – 626 001. Madurai. PAN: AACCV 6897R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपीलसं./ITA No.: 1765/CHNY/2019 िनधा…

M/S. V.V.V. & SONS EDIBLE OILS LTD.,,VIRUDHUNAGAR vs. DCIT, CENTRAL-1,, MADURAI

In the result, the appeals of the assessee in ITA Nos

ITA 2278/CHNY/2019[2013-14]Status: DisposedITAT Chennai05 Aug 2022AY 2013-14

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Shri P. G. Sekar, C.A ""For Respondent: Dr. S. Palani Kumar,CIT
Section 143(3)

…आयकर अपीलीय अिधकरण,‘डी’ "याय पीठ, चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ीमहावीर "संह, उपा"य" एवं "ी जी. मंजुनाथ, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 2275, 2276, 2277, 2278, 2279, 2280 & 2281/CHNY/2019 िनधा"रण वष"/Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 & 2016-17 V.V.V. & Sons Edible Oils Ltd., The ACIT, 443, Main Bazaar, v. Central Circle-1, Virudhunagar – 626 001. Madurai. PAN: AACCV 6897R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपीलसं./ITA No.: 1765/CHNY/2019 िनधा…

M/S. V.V.V. & SONS EDIBLE OILS LTD.,,VIRUDHUNAGAR vs. DCIT, CENTRAL-1,, MADURAI

In the result, the appeals of the assessee in ITA Nos

ITA 2277/CHNY/2019[2012-13]Status: DisposedITAT Chennai05 Aug 2022AY 2012-13

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Shri P. G. Sekar, C.A ""For Respondent: Dr. S. Palani Kumar,CIT
Section 143(3)

…आयकर अपीलीय अिधकरण,‘डी’ "याय पीठ, चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ीमहावीर "संह, उपा"य" एवं "ी जी. मंजुनाथ, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 2275, 2276, 2277, 2278, 2279, 2280 & 2281/CHNY/2019 िनधा"रण वष"/Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 & 2016-17 V.V.V. & Sons Edible Oils Ltd., The ACIT, 443, Main Bazaar, v. Central Circle-1, Virudhunagar – 626 001. Madurai. PAN: AACCV 6897R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपीलसं./ITA No.: 1765/CHNY/2019 िनधा…

M/S. V.V.V. & SONS EDIBLE OILS LTD.,,VIRUDHUNAGAR vs. DCIT, CENTRAL-1,, MADURAI

In the result, the appeals of the assessee in ITA Nos

ITA 2276/CHNY/2019[2011-12]Status: DisposedITAT Chennai05 Aug 2022AY 2011-12

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Shri P. G. Sekar, C.A ""For Respondent: Dr. S. Palani Kumar,CIT
Section 143(3)

…आयकर अपीलीय अिधकरण,‘डी’ "याय पीठ, चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ीमहावीर "संह, उपा"य" एवं "ी जी. मंजुनाथ, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 2275, 2276, 2277, 2278, 2279, 2280 & 2281/CHNY/2019 िनधा"रण वष"/Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 & 2016-17 V.V.V. & Sons Edible Oils Ltd., The ACIT, 443, Main Bazaar, v. Central Circle-1, Virudhunagar – 626 001. Madurai. PAN: AACCV 6897R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपीलसं./ITA No.: 1765/CHNY/2019 िनधा…

M/S. V.V.V. & SONS EDIBLE OILS LTD.,,VIRUDHUNAGAR vs. DCIT, CENTRAL-1,, MADURAI

In the result, the appeals of the assessee in ITA Nos

ITA 2275/CHNY/2019[2010-11]Status: DisposedITAT Chennai05 Aug 2022AY 2010-11

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Shri P. G. Sekar, C.A ""For Respondent: Dr. S. Palani Kumar,CIT
Section 143(3)

…आयकर अपीलीय अिधकरण,‘डी’ "याय पीठ, चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ीमहावीर "संह, उपा"य" एवं "ी जी. मंजुनाथ, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 2275, 2276, 2277, 2278, 2279, 2280 & 2281/CHNY/2019 िनधा"रण वष"/Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 & 2016-17 V.V.V. & Sons Edible Oils Ltd., The ACIT, 443, Main Bazaar, v. Central Circle-1, Virudhunagar – 626 001. Madurai. PAN: AACCV 6897R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपीलसं./ITA No.: 1765/CHNY/2019 िनधा…

M/S. V.V.VANNIAPERUMAL & SONS,VIRUDHUNAGAR vs. PCIT-2, CHENNAI, CHENNAI

In the result, the appeals of the assessee in ITA Nos

ITA 1765/CHNY/2019[2009-10]Status: DisposedITAT Chennai05 Aug 2022AY 2009-10

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Shri P. G. Sekar, C.A ""For Respondent: Dr. S. Palani Kumar,CIT
Section 143(3)

…आयकर अपीलीय अिधकरण,‘डी’ "याय पीठ, चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ीमहावीर "संह, उपा"य" एवं "ी जी. मंजुनाथ, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 2275, 2276, 2277, 2278, 2279, 2280 & 2281/CHNY/2019 िनधा"रण वष"/Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 & 2016-17 V.V.V. & Sons Edible Oils Ltd., The ACIT, 443, Main Bazaar, v. Central Circle-1, Virudhunagar – 626 001. Madurai. PAN: AACCV 6897R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपीलसं./ITA No.: 1765/CHNY/2019 िनधा…

ACIT CORPORATE CIRCLE 2 , MADURAI vs. T.V.SUNDARAM IYENGAR & SONS LTD. , MADURAI

In the result, the appeal filed by the Revenue is allowed

ITA 1713/CHNY/2017[2009-10]Status: DisposedITAT Chennai02 Aug 2022AY 2009-10

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwal

For Appellant: Shri R. Boopathi, JCITFor Respondent: Ms. N.V. Lakshmi, Advocate
Section 143(3)Section 17(2)(vi)Section 37

…ness expenditure in the hands of the assessee under section 37 of the Income tax Act, 1961?” The Hon’ble Madras High Court relied on the decision of the Hon’ble Supreme Court in the case of Gordon Woodroffe Leather Manufacturing Co. v. CIT reported in [1962] 44 ITR 551, wherein, certain tests laid down by the Hon’ble Supreme Court were that the payment should have been made as a matter of practice which affected the quantum of salary. There should be expectation by the employee for payment of medical expenses. The sum of money was expended on the ground of commercial expediency and in order to facilitate indirec…

T.V.SUNDARAM IYENGAR & SONS LTD. ,MADURAI vs. ACIT CORPORATE CIRCLE 2 , MADURAI

In the result, appeals filed by the assessee in ITA Nos

ITA 2761/CHNY/2019[2014-15]Status: DisposedITAT Chennai22 Jun 2022AY 2014-15

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manoj Kumar Aggarwal, Hon’Ble

For Appellant: Mr.N.V.Balaji, AdvFor Respondent: Mr.Varuvooru Sreedhar
Section 10(34)Section 143(3)Section 14A

…ss expenditure in the hands of the assessee under section 37 of the Income tax Act, 1961?” The Hon’ble Madras High Court relied on the decision of the Hon’ble Supreme Court in the case of Gordon Woodroffe Leather Manufacturing Co. v. CIT reported in [1962] 44 ITR 551, wherein, certain tests laid down by the Hon’ble Supreme Court were that the payment should have been made as a matter of practice which affected the quantum of salary. There should be expectation by the employee for payment of medical expenses. The sum of money was expended on the ground of commercial expediency and in ITA Nos.2758-2761/Chny/2…

T.V.SUNDARAM IYENGAR & SONS LTD. ,MADURAI vs. ACIT CORPORATE CIRCLE 2 , MADURAI

In the result, appeals filed by the assessee in ITA Nos

ITA 2760/CHNY/2019[2013-14]Status: DisposedITAT Chennai22 Jun 2022AY 2013-14

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manoj Kumar Aggarwal, Hon’Ble

For Appellant: Mr.N.V.Balaji, AdvFor Respondent: Mr.Varuvooru Sreedhar
Section 10(34)Section 143(3)Section 14A

…ss expenditure in the hands of the assessee under section 37 of the Income tax Act, 1961?” The Hon’ble Madras High Court relied on the decision of the Hon’ble Supreme Court in the case of Gordon Woodroffe Leather Manufacturing Co. v. CIT reported in [1962] 44 ITR 551, wherein, certain tests laid down by the Hon’ble Supreme Court were that the payment should have been made as a matter of practice which affected the quantum of salary. There should be expectation by the employee for payment of medical expenses. The sum of money was expended on the ground of commercial expediency and in ITA Nos.2758-2761/Chny/2…

T.V.SUNDARAM IYENGAR & SONS LTD. ,MADURAI vs. ACIT CORPORATE CIRCLE 2 , MADURAI

In the result, appeals filed by the assessee in ITA Nos

ITA 2759/CHNY/2019[2012-13]Status: DisposedITAT Chennai22 Jun 2022AY 2012-13

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manoj Kumar Aggarwal, Hon’Ble

For Appellant: Mr.N.V.Balaji, AdvFor Respondent: Mr.Varuvooru Sreedhar
Section 10(34)Section 143(3)Section 14A

…ss expenditure in the hands of the assessee under section 37 of the Income tax Act, 1961?” The Hon’ble Madras High Court relied on the decision of the Hon’ble Supreme Court in the case of Gordon Woodroffe Leather Manufacturing Co. v. CIT reported in [1962] 44 ITR 551, wherein, certain tests laid down by the Hon’ble Supreme Court were that the payment should have been made as a matter of practice which affected the quantum of salary. There should be expectation by the employee for payment of medical expenses. The sum of money was expended on the ground of commercial expediency and in ITA Nos.2758-2761/Chny/2…

T.V.SUNDARAM IYENGAR & SONS LTD. ,MADURAI vs. ACIT CORPORATE CIRCLE 2 , MADURAI

In the result, appeals filed by the assessee in ITA Nos

ITA 2758/CHNY/2019[2010-11]Status: DisposedITAT Chennai22 Jun 2022AY 2010-11

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manoj Kumar Aggarwal, Hon’Ble

For Appellant: Mr.N.V.Balaji, AdvFor Respondent: Mr.Varuvooru Sreedhar
Section 10(34)Section 143(3)Section 14A

…ss expenditure in the hands of the assessee under section 37 of the Income tax Act, 1961?” The Hon’ble Madras High Court relied on the decision of the Hon’ble Supreme Court in the case of Gordon Woodroffe Leather Manufacturing Co. v. CIT reported in [1962] 44 ITR 551, wherein, certain tests laid down by the Hon’ble Supreme Court were that the payment should have been made as a matter of practice which affected the quantum of salary. There should be expectation by the employee for payment of medical expenses. The sum of money was expended on the ground of commercial expediency and in ITA Nos.2758-2761/Chny/2…

ACIT CORPORATE CIRCLE 2 , MADURAI vs. T.V.SUNDARAM IYENGAR & SONS LTD. , MADURAI

In the result, appeals filed by the assessee in ITA Nos

ITA 2754/CHNY/2019[2014-15]Status: DisposedITAT Chennai22 Jun 2022AY 2014-15

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manoj Kumar Aggarwal, Hon’Ble

For Appellant: Mr.N.V.Balaji, AdvFor Respondent: Mr.Varuvooru Sreedhar
Section 10(34)Section 143(3)Section 14A

…ss expenditure in the hands of the assessee under section 37 of the Income tax Act, 1961?” The Hon’ble Madras High Court relied on the decision of the Hon’ble Supreme Court in the case of Gordon Woodroffe Leather Manufacturing Co. v. CIT reported in [1962] 44 ITR 551, wherein, certain tests laid down by the Hon’ble Supreme Court were that the payment should have been made as a matter of practice which affected the quantum of salary. There should be expectation by the employee for payment of medical expenses. The sum of money was expended on the ground of commercial expediency and in ITA Nos.2758-2761/Chny/2…

ACIT CENTRAL CIRCLE, SALEM vs. THRIVENI EARTHMOVERS PVT. LTD., SALEM

In the result, the appeal filed by the Revenue in ITA

ITA 2283/CHNY/2018[2014-15]Status: DisposedITAT Chennai25 Sept 2019AY 2014-15

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…it can inferred that expenditure was incurred voluntarily indirectly to facilitate the carrying on of the assessee company as the expenditure was incurred on grounds of commercial expediency. The Hon’ble SC in the case Gordon Woodrofee Leather Mfg vs. CIT, 44 ITR 551 (SC) held that any expenditure expended on the ground of commercial expediency in order to indirectly facilitate the carrying on the business is allowable as deduction. Therefore the claim falls within the purview of the provisions of Section37(1) of the Act. In the circumstances, the order of the ld. CIT(A) is based on proper appreciation of…

ACIT CENTRAL CIRCLE, SALEM vs. THRIVENI EARTHMOVERS PVT. LTD., SALEM

In the result, the appeal filed by the Revenue in ITA

ITA 2282/CHNY/2018[2013-14]Status: DisposedITAT Chennai25 Sept 2019AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…it can inferred that expenditure was incurred voluntarily indirectly to facilitate the carrying on of the assessee company as the expenditure was incurred on grounds of commercial expediency. The Hon’ble SC in the case Gordon Woodrofee Leather Mfg vs. CIT, 44 ITR 551 (SC) held that any expenditure expended on the ground of commercial expediency in order to indirectly facilitate the carrying on the business is allowable as deduction. Therefore the claim falls within the purview of the provisions of Section37(1) of the Act. In the circumstances, the order of the ld. CIT(A) is based on proper appreciation of…

ACIT CENTRAL CIRCLE, SALEM vs. THRIVENI EARTHMOVERS PVT. LTD., SALEM

In the result, the appeal filed by the Revenue in ITA

ITA 2281/CHNY/2018[2012-13]Status: DisposedITAT Chennai25 Sept 2019AY 2012-13

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…it can inferred that expenditure was incurred voluntarily indirectly to facilitate the carrying on of the assessee company as the expenditure was incurred on grounds of commercial expediency. The Hon’ble SC in the case Gordon Woodrofee Leather Mfg vs. CIT, 44 ITR 551 (SC) held that any expenditure expended on the ground of commercial expediency in order to indirectly facilitate the carrying on the business is allowable as deduction. Therefore the claim falls within the purview of the provisions of Section37(1) of the Act. In the circumstances, the order of the ld. CIT(A) is based on proper appreciation of…

ACIT CENTRAL CIRCLE, SALEM vs. THRIVENI EARTHMOVERS PVT. LTD., SALEM

In the result, the appeal filed by the Revenue in ITA

ITA 2280/CHNY/2018[2011-12]Status: DisposedITAT Chennai25 Sept 2019AY 2011-12

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…it can inferred that expenditure was incurred voluntarily indirectly to facilitate the carrying on of the assessee company as the expenditure was incurred on grounds of commercial expediency. The Hon’ble SC in the case Gordon Woodrofee Leather Mfg vs. CIT, 44 ITR 551 (SC) held that any expenditure expended on the ground of commercial expediency in order to indirectly facilitate the carrying on the business is allowable as deduction. Therefore the claim falls within the purview of the provisions of Section37(1) of the Act. In the circumstances, the order of the ld. CIT(A) is based on proper appreciation of…

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)

…curred by the assessee as either gratuitous or one incurred outside the trading activities of the assessee. The expenditure was therefore deductible under section 37(1). 9.11 The Hon'ble Supreme Court in the case of Gordon Woodroffe Leather Manufacturing Co. (44 ITR 551) laid down the following tests on allowability of gratuity payments as business deduction: Was the payment made as a matter of practice which effected the quantum of salary or was there an expectation by the employee of getting gratuity or was the sum of money expended on the ground of commercial expediency and in order indirectly to facilitate th…

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Gordon Woodroffe Leather Mfg Co. v. CIT (44 ITR 551) — Cited in 23 Judgments | BharatTax