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.

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 347)

ACIT (Central)-1, Bhopal vs. Som Distilleries and Breweries Ltd., Bhopal

Appeal is partly allowed for statistical

ITA 297/IND/2023[2014-15]Status: DisposedITAT Indore08 Aug 2024AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniay: 2013-14 Som Distilleries & Income-Tax Officer, बनाम/ Breweries Limited, 1(1), Vs. Som House, Bhopal. 23, Zone Ii, M.P. Nagar, Bhopal (Pan: Aabcs3374B) (Assessee/Appellant) (Revenue/Respondent) Ay:2014-15 Acit (Central)-1, Som Distilleries & बनाम/ Bhopal Breweries Limited, Vs. Som House, 23, Zone Ii, M.P. Nagar, Bhopal (Pan: Aabcs3374B) (Revenue/Appellant) (Assessee/Respondent)

Section 139(1)Section 143(2)Section 143(3)Section 14ASection 234A

…आयकर अपीलीय अिधकरण, इंदौर "ायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER AY: 2013-14 Som Distilleries & Income-tax Officer, बनाम/ Breweries Limited, 1(1), Vs. Som House, Bhopal. 23, Zone II, M.P. Nagar, Bhopal (PAN: AABCS3374B) (Assessee/Appellant) (Revenue/Respondent) AY:2014-15 ACIT (Central)-1, SOM Distilleries & बनाम/ Bhopal Breweries Limited, Vs. Som House, 23, Zone II, M.P. Nagar, Bhopal (PAN: AABCS3374B) (Revenue/Appellant) (Assessee/Respondent) Assessee by Shri Sumit Nema, Sr. Adv, Shri Gagan Tiwar…

Som Distilleries and Breweries Ltd., Bhopal vs. ITO-1(1), Bhopal

Appeal is partly allowed for statistical

ITA 271/IND/2023[2013-14]Status: DisposedITAT Indore08 Aug 2024AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniay: 2013-14 Som Distilleries & Income-Tax Officer, बनाम/ Breweries Limited, 1(1), Vs. Som House, Bhopal. 23, Zone Ii, M.P. Nagar, Bhopal (Pan: Aabcs3374B) (Assessee/Appellant) (Revenue/Respondent) Ay:2014-15 Acit (Central)-1, Som Distilleries & बनाम/ Bhopal Breweries Limited, Vs. Som House, 23, Zone Ii, M.P. Nagar, Bhopal (Pan: Aabcs3374B) (Revenue/Appellant) (Assessee/Respondent)

Section 139(1)Section 143(2)Section 143(3)Section 14ASection 234A

…आयकर अपीलीय अिधकरण, इंदौर "ायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER AY: 2013-14 Som Distilleries & Income-tax Officer, बनाम/ Breweries Limited, 1(1), Vs. Som House, Bhopal. 23, Zone II, M.P. Nagar, Bhopal (PAN: AABCS3374B) (Assessee/Appellant) (Revenue/Respondent) AY:2014-15 ACIT (Central)-1, SOM Distilleries & बनाम/ Bhopal Breweries Limited, Vs. Som House, 23, Zone II, M.P. Nagar, Bhopal (PAN: AABCS3374B) (Revenue/Appellant) (Assessee/Respondent) Assessee by Shri Sumit Nema, Sr. Adv, Shri Gagan Tiwar…

ACIT, Sambalpur vs. Smt. Indrani Patnaik, Rourkela

In the result, appeal of the revenue is dismissed

ITA 219/CTK/2023[2019-20]Status: DisposedITAT Cuttack06 Aug 2024AY 2019-20

Bench: Shri George Mathan & Shri Manish Agarwalआयकर अऩीऱ सं/Ita No.219/Ctk/2023 (ननधाारण वषा / Assessment Year : 2019-2020) Acit, Sambalpur Vs Smt. Indrani Patnaik, A-6, Comercial Estate, Civil Township, Rourkela Pan No. :Accpp 6164 E (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) राजस्व की ओर से /Revenue By : Shri Sanjay Kumar, Cit-Dr ननधााररती की ओर से /Assessee By : Shri S.C.Bhadra, Ca सुनवाई की तारीख / Date Of Hearing : 06/08/2024 घोषणा की तारीख/Date Of Pronouncement : 06/08/2024 आदेश / O R D E R Per Bench : This Is An Appeal Filed By The Revenue Against The Order Of The Ld. Cit(A)-2, Bhubaneswar, Dated 29.03.2023, Passed In I.T.Appeal No.Bhubaneswar-2/10625/2018-19 For The Assessment Year 2019-2020, On The Following Grounds Of Appeal :- 1. The Cit(A) Erred In Deleting The Addition Made Towards Peripheral Development Charges Of Rs. 49,49,231/- As Such Expenditure Is Not Allowable As Per The Provisions Of Section 37 Of The Act. 2. The Cit(A) Erred In Deleting The Addition Of Rs. 10,69,56,849/- U/S 14A As The Assessee Has Exempt Income During The Year. 3. The Cit(A) Was Not Correct In Deleting The Addition U/S 14A Holding That Satisfaction Is Not Recorded By The Ao, When The Assessee Has Not Suomoto Disallowed Any Expenditure Related To Earning Exempt Income As Decided By The Hon'Ble Supreme Court In The Case Of Maxopp Investment Ltd Dtd 12.02.2018. 4. The Cit(A) Was Not Correct In Deleting The Addition U/S 14A, When The Ao Has Given A Finding In The Assessment Order That The Assessee Has Shown Investment That Yielded Tax Free

For Appellant: Shri S.C.Bhadra, CAFor Respondent: Shri Sanjay Kumar, CIT-DR

Section 132Section 135Section 143(3)Section 14ASection 153ASection 37Section 37(1)

…hat separate accounts were not maintained by assessee for investments and other expenditure incurred for earning tax-free income - Held, yes [Para 27] [In favour of assessee] 14. Further the Hon’ble Supreme Court in the case of Hero Cycles, reported in [2015] 379 ITR 347 (SC), has considered this issue and held as under :- Section 36(1)(iii) of the Income-tax Act, 1961 - Interest on borrowed capital (Interest free loans) - Assessment year 1988-89 - Whether once it is established that there is nexus between expenditure and purpose of business (which need not necessarily be business of assessee itself), revenue can…

Asst. Commissioner of Income Tax (Central)-I, Bhopal vs. Som Distilleries Private Limited, Bhopal

Appeal is partly allowed for statistical

ITA 289/IND/2023[2014-15]Status: DisposedITAT Indore02 Aug 2024AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 139(1)Section 143(2)Section 143(3)Section 234A

…आयकर अपीलीय अिधकरण, इंदौर "ायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER I.T.A.No.272/Ind/2023 A.Y. 2014-15 M/s. Som Distilleries ITO, बनाम/ Private Limited, 1(3), Vs. Som House, Bhopal 23 Zone II, M.P. Nagar, Bhopal PAN: AACCSO397P (Assessee/Appellant) (Revenue/Respondent) I.T.A.No.289/Ind/2023 A.Y. 2014-15 ACIT, M/s. Som Distilleries बनाम/ (Central)-I, Private Limited, Vs. Bhopal Som House, 23 Zone II, M.P. Nagar, Bhopal PAN: AACCSO397P (Revenue/Appellant) (Assessee/Respondent) Assessee by Shri Sumit Ni…

Som Distilleries Pvt. Ltd., Bhopal vs. ITO-1(3), Bhopal

Appeal is partly allowed for statistical

ITA 272/IND/2023[2014-15]Status: DisposedITAT Indore02 Aug 2024AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 139(1)Section 143(2)Section 143(3)Section 234A

…आयकर अपीलीय अिधकरण, इंदौर "ायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER I.T.A.No.272/Ind/2023 A.Y. 2014-15 M/s. Som Distilleries ITO, बनाम/ Private Limited, 1(3), Vs. Som House, Bhopal 23 Zone II, M.P. Nagar, Bhopal PAN: AACCSO397P (Assessee/Appellant) (Revenue/Respondent) I.T.A.No.289/Ind/2023 A.Y. 2014-15 ACIT, M/s. Som Distilleries बनाम/ (Central)-I, Private Limited, Vs. Bhopal Som House, 23 Zone II, M.P. Nagar, Bhopal PAN: AACCSO397P (Revenue/Appellant) (Assessee/Respondent) Assessee by Shri Sumit Ni…

Utsav Hospitality & Clubs Pvt Ltd, New Delhi vs. ACIT Circle-27(1), New Delhi

In the result, Appeal filed by the assessee is allowed

ITA 9663/DEL/2019[2015-16]Status: DisposedITAT Delhi26 Jul 2024AY 2015-16

Bench: SHRI G.S.PANNU (Vice President), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 143(2)Section 143(3)Section 36(1)(ii)Section 36(1)(iii)Section 68

…e advance of Rs.1,86,24,616/- due from Capital Club (P) Ltd. 2.3 Without prejudice, on the facts and circumstances of the case and in law, the CIT(A) has failed to appreciate that the law laid down by Hon'ble Supreme Court in Hero Cycles P. Ltd. v. CIT [2015] 379 ITR 347 is squarely applicable, hence no disallowance under section 36(1)(iii) was called for. 3. That the appellant craves leave to add, alter, amend or vary any of the ground either at or before the hearing of the appeal.” Page 2 of 14 Utsav Hospitality & Clubs Pvt. Ltd. vs. ITO 3. Brief facts of the case are that, return of income was filed by the…

Advance Valves P.Ltd, New Delhi vs. ACIT, Range-1, New Delhi

In the result, the appeal of the assessee is allowed

ITA 5555/DEL/2017[2013-14]Status: DisposedITAT Delhi26 Jul 2024AY 2013-14

Bench: Shri G.S.Pannu & Shri Kul Bharat[Assessment Year : 2013-14] Advance Valves Pvt.Ltd., Vs Acit, 11-G, Ashok Palace, Range-1, 877-East Park Road, New Delhi. Karol Bagh, New Delhi-110005. Pan-Aaacs0305B Appellant Respondent Appellant By Shri Baldev Raj, Ca Respondent By Ms. Alka Gautam, Sr.Dr & Shri Kanv Bali, Sr. Dr Date Of Hearing 24.07.2024 Date Of Pronouncement 26.07.2024

Section 10Section 143(3)Section 14A

…rdinate Bench of this Tribunal and the Hon’ble Supreme Court in the cases of Godrej Boyce Mfg. Ltd. in Civil Appeal No.7020 of 2011 dated 08.05.2017 and reliance was placed upon the judgement of Hon’ble Supreme Court in the case of Hero Cycles Pvt.Ltd. vs CIT 379 ITR 347 (SC). 10. We have heard Ld. Authorized Representatives of the parties and perused the material available on record. There is no dispute with regard to the fact that before the authorities below, the assessee had suo motto disallowed the expenditure related to administrative expenses. However, in respect of the disallowance for the interest, it w…

Kumar Housing Corporation Private Limited(Previously Kunown As Kul Urban Development Pvt. Ltd), Pune vs. The Income Tax Officer, Ward-14(2), Pune

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

ITA 539/PUN/2024[2016-17]Status: DisposedITAT Pune23 Jul 2024AY 2016-17

Bench: Shri Rama Kanta Panda & Ms. Astha Chandra

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Ramnath P. Murkunde

…agreed by the AR, no addition can be made since there is no estoppel against law. The assessee relied upon the decisions of Hon’ble Supreme Court in the case of S.A. Builders Ltd. Vs. CIT reported in 158 Taxman 74, Hero Cycles Pvt. Ltd. Vs. CIT reported in 379 ITR 347 and various other decisions in order to justify its case that the disallowance of interest was not warranted. It was further submitted that the rate of interest charged by the 4 assessee from its sister concern and the rate at which the amount was borrowed is same and, therefore, there was no reason on the part of the AO to make the disallowanc…

Ind Swift Laboratories Ltd., Chandigarh vs. DCIT, Circle 1(1), Chandigarh

In the result, the appeal is allowed, as indicated

ITA 350/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh04 Jun 2024AY 2017-18

Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri T.N.Singla, C.AFor Respondent: Shri Rohit Sharma, CIT-DR

Section 250Section 35Section 35(1)Section 35(1)(i)Section 35(2)

…to the deduction under section 36(1)(iii). ITA 350/CHD/2023 A.Y. 2017-18 38 36. In 'Bright Enterprises' (supra), 'Abhishek Industries' (supra) was referred to. 37.1 In 'Hero Cycles (P) Ltd. Versus Commissioner of Income Tax (Central), Ludhiana', [2015] 379 ITR 347 (SC), order dated 05.11.2015, passed by the Honorable Supreme Court, the assessee had claimed deduction under section 36(1)(iii), of interest paid on sums borrowed from banks. The AO disallowed the claim. It was observed that the assessee had advanced money to its subsidiary company and this advance did not carry any interest. According to the…

Addl.CIT, Special Range-3, New Delhi vs. Escorts Ltd., Faridabad

In the result, Revenue’s appeal is dismissed

ITA 6191/DEL/2018[2004-05]Status: DisposedITAT Delhi31 May 2024AY 2004-05

Bench: Shri Saktijit Dey, Vice- & Shri Naveen Chandraassessment Year: 2004-05

Section 36(1)(iii)

…owing decisions: 1. S.A. Builders Ltd. v. CIT [2007] 288 ITR 1/158 Taxman 74 (SC); 2. South Indian Bank Ltd. vs. CIT (Civil Appeal No. 9606 of 2011)(SC); 3. CIT(LTU) vs. Reliance Industries Ltd. (2019) 410 ITR 466 (SC); 4. Hero Cycles (P.) Ltd. v. CIT [2015] 379 ITR 347/63 taxmann.com 308/ [2016] 236 Taxman 447 (SC); 5. Munjal Sales Corpn. v. CIT [2008] 298 ITR 298/168 Taxman 43 (SC); 6. Principal Commissioner of Income-tax v. Basti Sugar Mills Co. Ltd. [2018] 98 taxmann.com 401 (Delhi); 7. Principal Commissioner of Income-tax v. Reebok India Company [2018] 98 taxmann.com 413 (Delhi); 5. The learned Departmenta…

Escorts Ltd., Faridabad vs. Addl.CIT, Special Range-3, New Delhi

In the result, Revenue’s appeal is dismissed

ITA 5552/DEL/2018[2004-05]Status: DisposedITAT Delhi31 May 2024AY 2004-05

Bench: Shri Saktijit Dey, Vice- & Shri Naveen Chandraassessment Year: 2004-05

Section 36(1)(iii)

…owing decisions: 1. S.A. Builders Ltd. v. CIT [2007] 288 ITR 1/158 Taxman 74 (SC); 2. South Indian Bank Ltd. vs. CIT (Civil Appeal No. 9606 of 2011)(SC); 3. CIT(LTU) vs. Reliance Industries Ltd. (2019) 410 ITR 466 (SC); 4. Hero Cycles (P.) Ltd. v. CIT [2015] 379 ITR 347/63 taxmann.com 308/ [2016] 236 Taxman 447 (SC); 5. Munjal Sales Corpn. v. CIT [2008] 298 ITR 298/168 Taxman 43 (SC); 6. Principal Commissioner of Income-tax v. Basti Sugar Mills Co. Ltd. [2018] 98 taxmann.com 401 (Delhi); 7. Principal Commissioner of Income-tax v. Reebok India Company [2018] 98 taxmann.com 413 (Delhi); 5. The learned Departmenta…

Mgm Green Energy Limited, Bhubaneswar vs. DCIT, Circle-1(1), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 370/CTK/2019[2014-15]Status: DisposedITAT Cuttack22 May 2024AY 2014-15

Bench: Shri George Mathan & Shri Manish Agarwalआयकर अऩीऱ सं/Ita No.370/Ctk/2019 (ननधाारण वषा / Assessment Year : 2014-2015) Mgm Green Energy Limited, Vs Jcit, Range Rourkela, Rourkela 5-A, Forest Park, Bhubaneswar Pan No. :Aahcm 8472 C (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. ननधााररती की ओर से /Assessee By : Sh A.K.Sabat & Sh B.K.Mahapatra, Cas राजस्व की ओर से /Revenue By : Shri Sanjay Kumar, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 22/05/2024 घोषणा की तारीख/Date Of Pronouncement : 22/05/2024 आदेश / O R D E R Per Bench : This Appeal Is Filed By The Assessee Against The Order Of The Ld. Cit(A)-1. Bhubaneswar, Dated 11.06.2019, In I.T.Appeal No.0388/16-17 For The Assessment Year 2014-2015. 2. The Assessee Has Taken As Many As Six Grounds Of Appeal, Relating To Various Additions/Disallowances Made To The Income Declared By The Assessee & Also Against The Adjustments Made In The Book Profit U/S.115Jb Of The Act. The Grounds Raised By The Assessee Are As Under :- I) The Ld. Cit(A) Is Erred In Dismissing The Appeal Of The Assessee, Which Is Arbitrary, Erroneous & Bad, Both In The Eyes Of Law. Ii) Disallowance Of Interest Expenses U/S.36(Iii) Of The Act At Rs.1,65,18,400/-; Iii) Disallowance Of Expenses U/S.14A Of The Act/Rule 8D Of It Rules At Rs.2,44,82,488/-; Iv) Addition Of Disallowance Of Expenses U/S.14A At Rs.2,44,82,488/- In The Book Profit As Computed U/S 115Jb; V) Addition/Disallowance Of Expenses U/S.115Jb Of The Act Under The Book Profits; Vi) Disallowance Of Differential Depreciation Of Rs.1,16,63,697/-

For Appellant: Sh A.K.Sabat & Sh B.K.Mahapatra, CAsFor Respondent: Shri Sanjay Kumar, CIT-DR

Section 115JSection 123Section 14ASection 2Section 36Section 36(1)(iii)

…e their utilization elsewhere is not brought on record and also the assets acquired out of 9 borrowed funds by the related parties are not appearing in the Balance sheet of the assessee. The Hon‟ble supreme Court in the case of Hero Cycles, reported in [2015] 379 ITR 347 (SC), has considered this issue and held as under :- Section 36(1)(iii) of the Income-tax Act, 1961 - Interest on borrowed capital (Interest free loans) - Assessment year 1988-89 - Whether once it is established that there is nexus between expenditure and purpose of business (which need not necessarily be business of assessee itself), revenue can…