How many judgments cite Hero Cycles Pvt. Ltd. v. CIT?

361 judgments on BharatTax cite Hero Cycles Pvt. Ltd. v. CIT (379 ITR 347), spanning 2011 to 2026.

Which sections of the Income Tax Act does Hero Cycles Pvt. Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 143(3), Section 36(1)(iii), Section 147, Section 1961, Section 143(2), Section 14A.

Hero Cycles Pvt. Ltd. v. CIT

379 ITR 347Supreme Court of India2015#208 most cited

What is Hero Cycles Pvt. Ltd. v. CIT authority for?

The Revenue cannot substitute its judgment for that of a businessman regarding the necessity or reasonableness of an expenditure. If an expense is incurred wholly and exclusively for business purposes, it is deductible, and the Revenue cannot question its commercial expediency.

361

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2026.

Also referred to as

Hero Cycles Pvt. Ltd. v. CIT · 379 ITR 347 · 16 SCC 359 · Section 36(1)(iii) · commercial expediency · business expediency · disallowance of expenditure · interest-free advances · corporate guarantee · wholly and exclusively for business · Revenue's armchair approach · sales promotion expenditure

Also reported as

16 SCC 359

Sections most often in play

Section 143(3)Section 36(1)(iii)Section 147 Section 1961 Section 143(2)Section 14A Section 132 Section 142(1)

Read the full judgment

Issues it is cited on

interest free advances commercial expediency section 36(1)(iii)corporate guarantee business expediency section 36 book profits section 36(1)arm's length price transfer pricing adjustment associated enterprises section 92c

Judgments citing Hero Cycles Pvt. Ltd. v. CIT

DCIT(CC)-8(3), Mumbai vs. Lokhandwala Kataria Construction (Pvt) Ltd, Mumbai

In the result, both the appeals of the Revenue are allowed

ITA 3878/MUM/2024[2018-19]Status: DisposedITAT Mumbai18 Mar 2025AY 2018-19

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Respondent: Mr. Dharmesh Shah &

Section 143(3)Section 36(1)(iii)

…S.A. Builder Ltd. v. CIT [(288 ITR 1] Builder Ltd. v. CIT [(288 ITR 1]  Decision of Hon'ble Supreme Court in the case of Hero Decision of Hon'ble Supreme Court in the case of Hero Decision of Hon'ble Supreme Court in the case of Hero Cycles Pvt. Ltd. v. CIT [379 ITR 347] Cycles Pvt. Ltd. v. CIT [379 ITR 347]  Decision of H Decision of Hon'ble Mumbai Tribunal in the case of on'ble Mumbai Tribunal in the case of Chemosyn Ltd. N. ACIT [139 ITD 68] Chemosyn Ltd. N. ACIT [139 ITD 68]  Decision of Hon'ble Bombay High Court in the case of Decision of Hon'ble Bombay High Court in the case of Decision of Hon'ble Bombay…

Pr. CIT -3 vs. Dlf Ltd.(Fomerly Known As Dlf Universal Ltd

ITA/926/2016HC Delhi06 Mar 2025

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

…ITA 926/2016 & ITA 928/2016 Page 1 of 20 $~8 & 9 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 926/2016 PR. CIT -3 .....Appellant Through: Mr. Sunil Agarwal, SSC with Mr. Shivansh B. Pandya, Mr. Viplav Achrya and Ms. Priya Sarkar, JSCs and Mr. Utkarsh Tiwari, Adv. versus DLF LTD. (FOMERLY KNOWN AS DLF UNIVERSAL LTD. .....Respondent Through: Ms. Kavita Jha, Sr. Adv. wtih Mr. Akash Shukla and Mr. Aditya Bali, Advs. 9 + ITA 928/2016 PR. CIT -3 .....Appellant Through: Mr. Sunil Agarwal,…

Pr. CIT -3 vs. Dlf Ltd. (Formerly Known As Dlf Universal Ltd.)

ITA/928/2016HC Delhi06 Mar 2025

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

Graphtech Exim Private Limited, Delhi vs. ACIT Cen Cir 3 Jaipur, Lic Building Jaipur

In the result, the appeal of the assessee is allowed

ITA 1441/JPR/2024[2017-18]Status: DisposedITAT Jaipur26 Feb 2025AY 2017-18

For Appellant: Mrs. Suhani Meharwal, CAFor Respondent: Shri Manoj Kumar, JCIT-DR

Section 143Section 143(3)Section 68

…interest free advances of Rs.3.63 crores. Thus, when interest free funds are more than the interest free advances, no disallowance out of interest can be made. In support, reliance was placed on the following decisions: • Hero Cycles Pvt. Ltd. Vs. CIT (2016) 379 ITR 347/ 236 Taxman 447 (SC) • CIT Vs. Ram Kishan Verma(2016) 132 DTR 107 (Raj) • CIT Vs. Vijay Solvex Ltd. (2015) 113 DTR 382 (Raj) • CIT Vs. Reliance Utilities & Power Ltd. 313 ITR 340 (Bom) C. Loans and Advances Were Made During the Year ITA NO. 1441/JP/2024 GRAPHTECH EXIM PVT LTD VS ACIT, CENTRAL CIRCLE-3, JAIPUR It is further submitted that the lo…

ACIT., Central Circle-2(4), Hyderabad vs. M/S. Maithri Laboratories Private Limited, Hyderabad

ITA 1124/HYD/2024[2020-21]Status: DisposedITAT Hyderabad04 Feb 2025AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon'Ble

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR

Section 132Section 143(3)Section 153ASection 2(22)(e)

…ssman and usurp his role for deciding what constitutes reasonable level of trade advances that can be given against the purchases. In this regard, reliance is placed on the decision of the Hon'ble Supreme Court in the case of Hero Cycles (P) Ltd Vs.CIT [2015] 379 ITR 347 (SC) (Pg No.97-99 of PB-I), wherein it was held that the Revenue cannot justifiably claim to put itself in the arm- chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. The Hon'ble Aрех Court further held that the inco…

Maithri Laboratories Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

ITA 1059/HYD/2024[2020-21]Status: DisposedITAT Hyderabad04 Feb 2025AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon'Ble

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR

Section 132Section 143(3)Section 153ASection 2(22)(e)

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

Appeal are dismissed

ITA 1052/HYD/2024[2013-14]Status: DisposedITAT Hyderabad04 Feb 2025AY 2013-14

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.A. and Shri K.S. Rajendra KumarFor Respondent: Shri B. Bala Krishna, CIT-DR

Section 132Section 153ASection 153A(1)Section 2(22)(e)

…ssman and usurp his role for deciding what constitutes reasonable level of trade advances that can be given against the purchases. In this regard, reliance is placed on the decision of the Hon’ble Supreme Court in the case of Hero Cycles (P) Ltd Vs.CIT [2015] 379 ITR 347 (SC) (Pg No.97-99 of PB-I), wherein it was held that the Revenue cannot justifiably claim to put itself in the arm- chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. The Hon’ble Apex Court further held that the inco…

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

Appeal are dismissed

ITA 1050/HYD/2024[2011-12]Status: DisposedITAT Hyderabad04 Feb 2025AY 2011-12

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.A. and Shri K.S. Rajendra KumarFor Respondent: Shri B. Bala Krishna, CIT-DR

Section 132Section 153ASection 153A(1)Section 2(22)(e)

…ssman and usurp his role for deciding what constitutes reasonable level of trade advances that can be given against the purchases. In this regard, reliance is placed on the decision of the Hon’ble Supreme Court in the case of Hero Cycles (P) Ltd Vs.CIT [2015] 379 ITR 347 (SC) (Pg No.97-99 of PB-I), wherein it was held that the Revenue cannot justifiably claim to put itself in the arm- chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. The Hon’ble Apex Court further held that the inco…

Bal Reddy Kandunuri, Adilabad vs. ACIT, Central Circle-2(4), Hyderabad

In the result, appeal of the assessee is allowed

ITA 1203/HYD/2024[2020-21]Status: DisposedITAT Hyderabad28 Jan 2025AY 2020-21

Bench: Shri G. Manjunatha & Shri K. Narasimha Chary

For Appellant: Shri A.V. Raghuram, ARFor Respondent: Dr. Sachin Kumar, Sr. AR

Section 115BSection 131Section 132ASection 153ASection 69A

…e assessee. Therefore once commercial expediency for giving the advance is established, no part of the interest expenditure can be disallowed in view of the decision of Hon'ble Supreme Court in case of S.A. Builders 288 ITR 1 and Hero Cycles Pvt. Ltd. vs. CIT 379 ITR 347 where it was held that the Revenue cannot justifiably claim to put itself in the arm- chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. If further held that no businessman can be compelled to maximize his profit and…

Subhash Chand, Faridabad vs. ITO, Ward- 2(4), Faridabad

In the result, the appeal of the assessee is allowed

ITA 989/DEL/2018[2014-15]Status: DisposedITAT Delhi20 Jan 2025AY 2014-15

Bench: Shri Yogesh Kumar U.S & Shri Manish Agarwal[Assessment Year : 2017-18] V.V. Transport, Vs Acit, 96-A, Sindhu Bhawan, Rohtak Subhash Nagar, Rohtak, Haryana-124001. Pan-Aadfv5250G Appellant Respondent Appellant By Ms. Sakshi Pandey, Adv. Respondent By Shri Om Prakash, Sr. Dr Date Of Hearing 15.05.2025 Date Of Pronouncement 08.08.2025 Order Per Manish Agarwal, Am : The Present Appeal Is Filed By The Assessee Against The Order Dated 05.01.20248 Passed By Ld. Commissioner Of Income Tax (A)/Addl/Jcit(A)-7, Kolkata [“Ld.Cit(A)”] In Appeal No.Cit(A), Rohtak/10584/2019-20 U/S 250 Of The Income Tax Act, 1961 [“The Act”] Arising From The Assessment Order Dated 20.12.2019 Passed U/S 143(3) Of The Act Pertaining To Assessment Year 2017-18. 2. Brief Facts Of The Case Are That The Assessee Is A Partnership Firm, Engaged In The Business Of Running Of Petrol Pump. The Return Of Income For The Year Under Appeal Was Filed On 28.10.2017, Declaring Total Income Of Inr 4,29,25,730/-. The Case Of The Assessee Was Selected For Complete Scrutiny For The Reasons Of Cash Deposits During Demonetization Period & Notice U/S 143(2) Was Issued On 24.09.2018. After Considering The Submissions & The Books Of Accounts Submitted, The Ao Had Taken No Adverse Inference On The Issue Of Cash Deposited During Demonetization Period However, He Has Made Disallowance Of Inr 12,20,700/- By Holding That The Assessee Has Made Interest Free Advances To Staff & To One Of The Partners Whereas It Is Paying Interest On The Borrowings. In First Appeal, Ld.Cit(A) Has Deleted The Disallowance Made Out Of The Interest Payments Towards The Staff Advances Given However, Confirmed The Disallowance On Account Of Advances Given To The Partner Of Inr 1 Crore.

Section 143(2)Section 143(3)Section 234ASection 250Section 36

…ITA No.989/Del/2024 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “C” BENCH: NEW DELHI BEFORE SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [Assessment Year : 2017-18] V.V. Transport, vs ACIT, 96-A, Sindhu Bhawan, Rohtak Subhash Nagar, Rohtak, Haryana-124001. PAN-AADFV5250G APPELLANT RESPONDENT Appellant by Ms. Sakshi Pandey, Adv. Respondent by Shri Om Prakash, Sr. DR Date of Hearing 15.05.2025 Date of Pronouncement 08.08.2025 ORDER PER MANISH AGARWAL, AM : The present appeal is filed by the assessee against the order dated 05.01.20248 passed by Ld. Commissioner of Income Tax (A)…

The Commissioner of Income Tax III vs. M/S. Savijana Sea Foods Pvt. Ltd

ITTA/55/2010HC Telangana20 Dec 2024

Bench: J SREENIVAS RAO,ALOK ARADHE

Balaji Fuels, Gurgon vs. Prcit, Gurgaon

In the result, the appeal in ITA No

ITA 929/DEL/2023[2014-15]Status: DisposedITAT Delhi16 Dec 2024AY 2014-15

Bench: Sh. Mahavir Singh & Sh. S. Rifaur Rahmanassessment Year: 2014-15 Balaji Fuels Vs Ito 66, Milestones, Nh 8 Distt. Ward- (3) Gurgaon-122413 New Delhi Pan No.Aajfb5505E (Appellant) (Respondent) Assessment Year: 2014-15 Balaji Fuels Vs Pcit 66, Milestones, Nh 8 Distt. Gurgaon Gurgaon-122413 Pan No.Aajfb5505E (Appellant) (Respondent) Appellant By Manoj Kumar, Ca Respondent By Mr. Javed Akhtar, Cit Dr Date Of Hearing: 16/12/2024 Date Of Pronouncement: 16/12/2024 Order Per Mahavir Singh, Vp: These Appeals By The Assessee Are Arising Out Of The Order Of Cit(A)/Nfac, Delhi In Appeal No. Cit(A), Gurgaon-1/11855/2019- 20 Vide Order Dated 13.06.2022 & Order Of Pcit, Gurgaon Dated

Section 143Section 263Section 36Section 36(1)(iii)

…sing the appeal of the Revenue on this ground. We do not find that question (A)gives rise to any substantial question of law and is therefore rejected.” 7. Apart from that, Ld. Counsel also relied upon the decision of Hero Cycles of Hon’ble Supreme Court CIT 379 ITR 347(SC) wherein it is held as under:- “In so far as the loans to Directors are concerned, it could not be disputed by the Revenue that the assessee had a credit balance in the Bank account when the said advance of Rs.34 lakhs was given. Remarkably, as observed by the CIT(Appeal) in his order, the company had reserve/ surplus to the tune of almost 15…

Balaji Fuels, Haryana vs. ITO, Ward (3), New Delhi

In the result, the appeal in ITA No

ITA 1829/DEL/2022[2014-15]Status: DisposedITAT Delhi16 Dec 2024AY 2014-15

Section 143Section 263Section 36Section 36(1)(iii)

Deputy Commissioner of Income Tax, Central Circle-3, Jaipur vs. Naresh Kumar Gupta, Sriganganagar

In the results the appeal of the revenue stands dismissed and the

ITA 458/JPR/2024[2014-15]Status: DisposedITAT Jaipur28 Nov 2024AY 2014-15

Bench: Him The Order Passed Under Section 143(3) Of The Income Tax Act, [ For Short “Act” ] By The Acit, Circle, Sri Ganganagar [

For Appellant: Shri P.C. Parwal (C.A.)For Respondent: Ms. Alka Gautam (CIT) (V.H.)

Section 143(3)Section 14ASection 36(1)(iii)

…urs for the purpose of business. The expenditure may not have been incurred under any legal obligation, but yet it is allowable as a business expenditure, if it was incurred on grounds of commercial expediency.” Hero Cycles (P.) Ltd. Vs. CIT (Central) (2015) 379 ITR 347 (SC) “Once it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reas…

Income Tax Officer, Ward-9(1), Kolkata vs. Kali Fabrics Private Limited, Kolkata

In the result, appeal of the revenue is dismissed

ITA 291/KOL/2024[2018]Status: DisposedITAT Kolkata27 Nov 2024

Bench: Shri Rajesh Kumar, Am & Shri Sonjoy Sarma, Jm]

Section 143(2)Section 143(3)Section 36Section 36(1)(iii)

…s as noted by the AO is purely commercial and business expediency by relying on the decision of S. A. Builders Ltd. Vs. CIT, Civil Appeal No. 5811 of 2006 and the decision of Hon’ble Apex Court in the case of Hero Cycles Ltd. Vs. CIT [2015] 63 taxmann.com 308/379 ITR 347. Besides, it was also observed by us from the order of the Ld. CIT(A) that assessee’s own interest free funds comprising of share capital, reserves and surplus and interest free loans were far more than the interest free loans then the presumption is that interest free loans were advanced out of interest free own funds available with the assessee…

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

In the result, the appeals filed by the assessee for assessment years 2019-20 and 2020-21 are partly allowed

ITA 885/HYD/2024[2020-21]Status: DisposedITAT Hyderabad08 Nov 2024AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.AFor Respondent: Shri B. Bala Krishna, CIT-DR

Section 132Section 139(1)Section 143(3)Section 153ASection 2(22)(e)

…ssman and usurp his role for deciding what constitutes reasonable level of trade advances that can be given against the purchases. In this regard, reliance is placed on the decision of the Hon’ble Supreme Court in the case of Hero Cycles (P) Ltd Vs.CIT [2015] 379 ITR 347 (SC) (Pg No.97-99 of PB-I), wherein it was held that the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. The Hon’ble Apex Court further held that the incom…

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

In the result, the appeals filed by the assessee for assessment years 2019-20 and 2020-21 are partly allowed

ITA 884/HYD/2024[2019-20]Status: DisposedITAT Hyderabad08 Nov 2024AY 2019-20

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.AFor Respondent: Shri B. Bala Krishna, CIT-DR

Section 132Section 139(1)Section 143(3)Section 153ASection 2(22)(e)

…ssman and usurp his role for deciding what constitutes reasonable level of trade advances that can be given against the purchases. In this regard, reliance is placed on the decision of the Hon’ble Supreme Court in the case of Hero Cycles (P) Ltd Vs.CIT [2015] 379 ITR 347 (SC) (Pg No.97-99 of PB-I), wherein it was held that the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. The Hon’ble Apex Court further held that the incom…

Deputy Commissioner of Income Tax, Circle-11(1), Kolkata vs. South City Projects (Kolkata) Limited, Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1096/KOL/2023[2020-21]Status: DisposedITAT Kolkata24 Oct 2024AY 2020-21

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

Section 36(1)(iii)

…आयकर अपील"य अ"धकरण, कोलकाता पीठ “बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA "ी राजेश कुमार, लेखा सट"य एवं "ी "द"प कुमार चौबे, "या"यक सद"य के सम" [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 1096/Kol/2023 Assessment Year: 2020-21 DCIT, Circle-11(1), Kolkata Vs. South City Projects (Kolkata) Limited (PAN: AAACD 8933 A) ( अपीलाथ" ) Respondent / ""यथ" Appellant / Date of Hearing / सुनवाई 31.07.2024 क" "त"थ Date of Pronouncement/ 24.10.2024 आदेश उ"घोषणा क" "त"थ For the Appellant/ Shri Akkal Dudhwewala, A.R "नधा"रती क" ओर से Smt. Vid…

ITO, Ward-2(4), New Delhi vs. Antheia Constructions P.Ltd, New Delhi

In the result, both the appeals filed by the Revenue are dismissed

ITA 4963/DEL/2017[2014-15]Status: DisposedITAT Delhi13 Sept 2024AY 2014-15

Bench: Shri Saktijit Dey, Hon’Ble & Shri S.Rifaur Rahman

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri Kanv Bali, Sr. DR

Section 133Section 142(1)Section 143(2)

…is used by the subsidiary for some business purposes the assessee would, in our opinion, ordinarily be entitled to deduction of interest on its borrowed loans." allowed: b. Hon'ble Supreme Court in the case of Hero Cycles Pvt. Ltd. ys. CIT(Central). Ludhiana (379 ITR 347) "4. It would be pertinent to mention that insofar as the advance given to M/s. Hero Fibres Limited is concerned, the case put up by the asses lee even before the Assessing Officer was that it had given an undertaking to the financial institutions to provide M/s. Hero Fibres Limited the additional margin to meet the working capital for meeting an…

ITO, New Delhi vs. M/S Antheia Constructions Pvt. Ltd., New Delhi

In the result, both the appeals filed by the Revenue are dismissed

ITA 2373/DEL/2017[2013-14]Status: DisposedITAT Delhi13 Sept 2024AY 2013-14

Bench: Shri Saktijit Dey, Hon’Ble & Shri S.Rifaur Rahman

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri Kanv Bali, Sr. DR

Section 133Section 142(1)Section 143(2)