Indian Molasses Co. Pvt. Ltd. v. CIT

37 ITR 66Supreme Court of India1959#438 most cited

What is Indian Molasses Co. Pvt. Ltd. v. CIT authority for?

Expenditure is defined as money paid out or away, which is gone irretrievably. To be deductible under Section 37(1), expenditure must be wholly and exclusively for business, not capital or personal, and not fall under specific provisions of Sections 30 to 36, often justifiable on grounds of commercial expediency.

206

judgments rely on this decision, according to BharatTax’s citation analysis of 366,421 Indian tax judgments — from 2007 to 2026.

Also referred to as

Indian Molasses Co. Pvt. Ltd. v. CIT · Section 37(1) · definition of expenditure · business expenditure deduction · commercial expediency · wholly and exclusively for business · expenditure irretrievably gone · Sections 30-36

Sections most often in play

Section 142(1)Section 143(2)Section 143(3)Section 234BSection 234CSection 11Section 13(1)(c)Section 13(2)(h)
Read the full judgment

Issues it is cited on

section 13(2)accumulation of incomesection 13(3)section 13(1)(c)infrastructure facilitysection 13(1)section 30business expediencymercantile system of accountingcommercial expediencysection 40(a)(i)profits and gains of business or profession

Judgments citing Indian Molasses Co. Pvt. Ltd. v. CIT

Asst CIT 2(2)(1), Mumbai vs. State Bank of India, Mumbai

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

ITA 3882/MUM/2017[2010-11]Status: DisposedITAT Mumbai21 Apr 2026AY 2010-11

Bench: Smt. Beena Pillai () & Shri Jagadish ()

Section 14ASection 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 43B

…ccounting on the ground of diminished hope of recovery. Furthermore, any liability de 11stopp is not an ascertained liability in praesenti and cannot be allowed as deduction under the Income-tax Act as held in the case of Indian Molasses Co. Pvt. Ltd. vs. CIT 37 ITR 66 (SC) and Standard Mills Co. Ltd. Vs. CIT 229 ITR 366 (Bom). Hence, no such ad hoc deduction could be allowed against the amount receivable on redemption of securities which had matured and become due for payment before the close of the accounting year. This ground therefore fails.” 39. The findings of the CIT(A) is based the on the various decision…

State Bank of India, Mumbai vs. Asst CIT Cir 2(2), Mumbai

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

ITA 3680/MUM/2017[2010-11]Status: DisposedITAT Mumbai21 Apr 2026AY 2010-11

Bench: Smt. Beena Pillai () & Shri Jagadish ()

Section 14ASection 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 43B

…ccounting on the ground of diminished hope of recovery. Furthermore, any liability de 11stopp is not an ascertained liability in praesenti and cannot be allowed as deduction under the Income-tax Act as held in the case of Indian Molasses Co. Pvt. Ltd. vs. CIT 37 ITR 66 (SC) and Standard Mills Co. Ltd. Vs. CIT 229 ITR 366 (Bom). Hence, no such ad hoc deduction could be allowed against the amount receivable on redemption of securities which had matured and become due for payment before the close of the accounting year. This ground therefore fails.” 39. The findings of the CIT(A) is based the on the various decision…

Country Club Hospitality & Holidays Limited, Hyderabad vs. DCIT., Circle-1(1), Hyderabad

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

ITA 1480/HYD/2025[2011-12]Status: DisposedITAT Hyderabad27 Mar 2026AY 2011-12
Section 139Section 143(2)Section 143(3)Section 147Section 148Section 149Section 250

…ned counsel, the expression "expenditure" is "what is paid out" and "something which is gone irretrievably". In this connection, learned counsel placed reliance on the judgment of this Court in the case of Indian Molasses Co. (Private) Ltd. v. CIT reported in 37 ITR 66. According to the learned counsel, the increase in 14 Country Club Hospitality & Holidays Limited liability at any point of time prior to payment cannot fall within the meaning of the word "expenditure" in Section 37(1). Therefore, according to the learned counsel, the requirement of expenditure is not met in this case. According to the learned co…

Westcourt Hospitality Pvt Ltd, New Delhi vs. DCIT, Circle-25(1), Delhi

In the result appeal of the assessee is allowed

ITA 3351/DEL/2025[2018-19]Status: DisposedITAT Delhi30 Dec 2025AY 2018-19

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year: 2018-19] Acit, Circle 25(1), Room Vs M/S. Westcourt Hospitality No. 192A, Cr Building, Pvt. Ltd. Ip Estate New-Delhi. 4391, B-5 & 6, Vasant Kunj, 110002 New Delhi-110070. Pan-Aaacw8734G Appellant Respondent [Assessment Year: 2018-19] M/S. Westcourt Hospitality Vs Acit, Circle 25(1),Room Pvt. Ltd. No. 192A, Cr Building, Ip 4391, B-5 & 6, Vasant Estate New-Delhi. 110002 Kunj, New Delhi-110070. Pan-Aaacw8734G Appellant Respondent

Section 142(1)Section 143(2)Section 143(3)Section 250Section 68

…ay not have been incurred under any legal obligation, yet it is allowable as a business expenditure if it was incurred on grounds of commercial expediency - Held, yes. 32. The hon’ble Supreme court in the case of Indian Molasses Co. P. Ltd. v. CIT reported in 37 ITR 66 (SC) held that in order to claim deduction of expenditure u/s 37(1) following conditions should be satisfied: (i) The expenditure in question should not be of the nature described under the specific provisions of sections 30 to 36; (ii) The expenditure should not be of the nature of capital expenditure; (iii) It should not. be; a personal expenditu…

Assistant Commissioner of Income Tax, Circle-25(1), New Delhi vs. Westcourt Hospitality Private Limited, New Delhi

In the result appeal of the assessee is allowed

ITA 3294/DEL/2025[2018-19]Status: DisposedITAT Delhi30 Dec 2025AY 2018-19

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year: 2018-19] Acit, Circle 25(1), Room Vs M/S. Westcourt Hospitality No. 192A, Cr Building, Pvt. Ltd. Ip Estate New-Delhi. 4391, B-5 & 6, Vasant Kunj, 110002 New Delhi-110070. Pan-Aaacw8734G Appellant Respondent [Assessment Year: 2018-19] M/S. Westcourt Hospitality Vs Acit, Circle 25(1),Room Pvt. Ltd. No. 192A, Cr Building, Ip 4391, B-5 & 6, Vasant Estate New-Delhi. 110002 Kunj, New Delhi-110070. Pan-Aaacw8734G Appellant Respondent

Section 142(1)Section 143(2)Section 143(3)Section 250Section 68

…ay not have been incurred under any legal obligation, yet it is allowable as a business expenditure if it was incurred on grounds of commercial expediency - Held, yes. 32. The hon’ble Supreme court in the case of Indian Molasses Co. P. Ltd. v. CIT reported in 37 ITR 66 (SC) held that in order to claim deduction of expenditure u/s 37(1) following conditions should be satisfied: (i) The expenditure in question should not be of the nature described under the specific provisions of sections 30 to 36; (ii) The expenditure should not be of the nature of capital expenditure; (iii) It should not. be; a personal expenditu…

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2830/MUM/2024[2018-19]Status: DisposedITAT Mumbai21 Nov 2025AY 2018-19

Bench: SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL "I" BENCH, MUMBAI SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.2616/Mum/2024 Assessment Year: 2010-2011 Assessment Year: 2012-2013 ITA No.2619/Mum/2024 Assessment Year: 2013-2014 Assessment Year:2015-2016 ITA No.2621/Mum/2024 Assessment Year: 2016-2017 Assessment Year: 2017-2018 ITA No.2623/Mum/2024 Assessment Year: 2018-2019 Assessment Year: 2019-2020 & C.O.96/Mum/2024 C.O.97/Mum/2024 Assessment Year: 2014-2015 Assessment Year: 2012-2013 The New India Assurance Co. Ltd. 87, New India Assurance Building, M. G. Road, Fort, Mumbai - 4…

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2823/MUM/2024[2019-20]Status: DisposedITAT Mumbai21 Nov 2025AY 2019-20

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL "I" BENCH, MUMBAI SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.2616/Mum/2024 Assessment Year: 2010-2011 Assessment Year: 2012-2013 ITA No.2619/Mum/2024 Assessment Year: 2013-2014 Assessment Year:2015-2016 ITA No.2621/Mum/2024 Assessment Year: 2016-2017 Assessment Year: 2017-2018 ITA No.2623/Mum/2024 Assessment Year: 2018-2019 Assessment Year: 2019-2020 & C.O.96/Mum/2024 C.O.97/Mum/2024 Assessment Year: 2014-2015 Assessment Year: 2012-2013 The New India Assurance Co. Ltd. 87, New India Assurance Building, M. G. Road, Fort, Mumbai - 4…

The New India Assurance Co Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle 3(2)(2), Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2622/MUM/2024[2018-19]Status: DisposedITAT Mumbai21 Nov 2025AY 2018-19

Bench: SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL "I" BENCH, MUMBAI SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.2616/Mum/2024 Assessment Year: 2010-2011 Assessment Year: 2012-2013 ITA No.2619/Mum/2024 Assessment Year: 2013-2014 Assessment Year:2015-2016 ITA No.2621/Mum/2024 Assessment Year: 2016-2017 Assessment Year: 2017-2018 ITA No.2623/Mum/2024 Assessment Year: 2018-2019 Assessment Year: 2019-2020 & C.O.96/Mum/2024 C.O.97/Mum/2024 Assessment Year: 2014-2015 Assessment Year: 2012-2013 The New India Assurance Co. Ltd. 87, New India Assurance Building, M. G. Road, Fort, Mumbai - 4…

The New India Assurance Co. Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle 3(2)(2), Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2616/MUM/2024[2012-13]Status: DisposedITAT Mumbai21 Nov 2025AY 2012-13

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL "I" BENCH, MUMBAI SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.2616/Mum/2024 Assessment Year: 2010-2011 Assessment Year: 2012-2013 ITA No.2619/Mum/2024 Assessment Year: 2013-2014 Assessment Year:2015-2016 ITA No.2621/Mum/2024 Assessment Year: 2016-2017 Assessment Year: 2017-2018 ITA No.2623/Mum/2024 Assessment Year: 2018-2019 Assessment Year: 2019-2020 & C.O.96/Mum/2024 C.O.97/Mum/2024 Assessment Year: 2014-2015 Assessment Year: 2012-2013 The New India Assurance Co. Ltd. 87, New India Assurance Building, M. G. Road, Fort, Mumbai - 4…

M/S Kanak Vrindavan Resorts Limited, Jaipur vs. Income Tax Officer, Ward 6(2), Jaipur

In the result, the appeal of the assessee is allowed

ITA 543/JPR/2025[2016-17]Status: DisposedITAT Jaipur02 Sept 2025AY 2016-17

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Sh. Tarun Mittal, CAFor Respondent: Sh. Gautam Singh Choudhary, Addl. CIT
Section 143(1)(a)Section 143(2)Section 143(3)Section 145Section 37

…in respect of such expenditure." Upon perusal of the above mentioned provision of the Act, it could be concluded that in order to claim deduction of expenditure under section 37(1) of the Act, as has been held in the case of Indian Molasses Co. P. Ltd. v. CIT 37 ITR 66 (SC) the following conditions should be satisfied: (i) The expenditure in question should not be of the nature described under the specific provisions of sections 30 to 36; (ii) The expenditure should not be of the nature of capital expenditure; (iii) It should not be a personal expenditure; and (iv) The expenditure should have been laid out or exp…

Dy. Commissioner of Income Tax(Exemptions)-2(1), Mumbai vs. Sheila Gopal Foundation, Mumbai

Appeals are allowed in part and Revenue’s appeals are dismissed

ITA 3318/MUM/2025[2018-19]Status: DisposedITAT Mumbai28 Aug 2025AY 2018-19

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

For Appellant: Adv. Sanjay Sawant and Adv. Sanjeev ShahFor Respondent: Ms. Kavita P. Kaushik
Section 11Section 13(1)(c)Section 13(2)(a)Section 234

…tinction between the word ‘applied’ and the ‘expenditure’ has held that the scope of word ‘applied’ is wider than the word ‘expenditure’. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon’ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…

Dy. Commissioner of Income Tax(Exemptions)-2(1), Mumbai vs. Sheila Gopal Foundation, Mumbai

Appeals are allowed in part and Revenue's appeals are

ITA 3317/MUM/2025[2017-18]Status: DisposedITAT Mumbai28 Aug 2025AY 2017-18

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

Section 11Section 13(2)(a)Section 234B

…tinction between the word 'applied' and the ‘expenditure' has held that the scope of word 'applied' is wider than the word ‘expenditure'. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon'ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…

Dy. Commissioner of Income Tax(Exemptions)-2(1), Mumbai vs. Sheila Gopal Foundation, Mumbai

Appeals are allowed in part and Revenue’s appeals are dismissed

ITA 3316/MUM/2025[2016-17]Status: DisposedITAT Mumbai28 Aug 2025AY 2016-17

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

For Appellant: Adv. Sanjay Sawant and Adv. Sanjeev ShahFor Respondent: Ms. Kavita P. Kaushik
Section 11Section 13(1)(c)Section 13(2)(a)Section 234

…tinction between the word ‘applied’ and the ‘expenditure’ has held that the scope of word ‘applied’ is wider than the word ‘expenditure’. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon’ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…

Dy. Commissioner of Income Tax(Exemptions)-2(1), Mumbai vs. Sheila Gopal Foundation, Mumbai

Appeals are allowed in part and Revenue’s appeals are dismissed

ITA 3315/MUM/2025[2015-16]Status: DisposedITAT Mumbai28 Aug 2025AY 2015-16

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

For Appellant: Adv. Sanjay Sawant and Adv. Sanjeev ShahFor Respondent: Ms. Kavita P. Kaushik
Section 11Section 13(1)(c)Section 13(2)(a)Section 234

…tinction between the word ‘applied’ and the ‘expenditure’ has held that the scope of word ‘applied’ is wider than the word ‘expenditure’. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon’ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…

Dy. Commissioner of Income Tax(Exemptions)-2(1), Mumbai vs. Sheila Gopal Foundation, Mumbai

Appeals are allowed in part and Revenue’s appeals are dismissed

ITA 3314/MUM/2025[2014-15]Status: DisposedITAT Mumbai28 Aug 2025AY 2014-15

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

For Appellant: Adv. Sanjay Sawant and Adv. Sanjeev ShahFor Respondent: Ms. Kavita P. Kaushik
Section 11Section 13(1)(c)Section 13(2)(a)Section 234

…tinction between the word ‘applied’ and the ‘expenditure’ has held that the scope of word ‘applied’ is wider than the word ‘expenditure’. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon’ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…

Dy. Commissioner of Income Tax(Exemptions)-2(1), Mumbai vs. Sheila Gopal Foundation, Mumbai

Appeals are allowed in part and Revenue’s appeals are dismissed

ITA 3313/MUM/2025[2013-14]Status: DisposedITAT Mumbai28 Aug 2025AY 2013-14

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

For Appellant: Adv. Sanjay Sawant and Adv. Sanjeev ShahFor Respondent: Ms. Kavita P. Kaushik
Section 11Section 13(1)(c)Section 13(2)(a)Section 234

…tinction between the word ‘applied’ and the ‘expenditure’ has held that the scope of word ‘applied’ is wider than the word ‘expenditure’. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon’ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…

Dy. Commissioner of Income Tax(Exemptions)-2(1), Mumbai vs. Sheila Gopal Foundation, Mumbai

Appeals are allowed in part and Revenue's appeals are

ITA 3312/MUM/2025[2012-13]Status: DisposedITAT Mumbai28 Aug 2025AY 2012-13

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

For Appellant: Shri Percy Pardiwala a/wFor Respondent: Ms. Kavita P. Kaushik
Section 11Section 13(2)(a)Section 234

…tinction between the word 'applied' and the ‘expenditure' has held that the scope of word 'applied' is wider than the word ‘expenditure'. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon'ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…

Sheila Gopal Foundation, Mumbai vs. Deputy Commissioner of Income Tax Exemption Circle 2, Mumbai

Appeals are allowed in part and Revenue’s appeals are dismissed

ITA 3161/MUM/2025[2012-13]Status: DisposedITAT Mumbai28 Aug 2025AY 2012-13

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

For Appellant: Adv. Sanjay Sawant and Adv. Sanjeev ShahFor Respondent: Ms. Kavita P. Kaushik
Section 11Section 13(1)(c)Section 13(2)(a)Section 234

…tinction between the word ‘applied’ and the ‘expenditure’ has held that the scope of word ‘applied’ is wider than the word ‘expenditure’. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon’ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…

Sheila Gopal Foundation, Mumbai vs. Deputy Commissioner of Income Tax Exemption Circle 2, Mumbai

Appeals are allowed in part and Revenue’s appeals are dismissed

ITA 3160/MUM/2025[2013-14]Status: DisposedITAT Mumbai28 Aug 2025AY 2013-14

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

For Appellant: Adv. Sanjay Sawant and Adv. Sanjeev ShahFor Respondent: Ms. Kavita P. Kaushik
Section 11Section 13(1)(c)Section 13(2)(a)Section 234

…tinction between the word ‘applied’ and the ‘expenditure’ has held that the scope of word ‘applied’ is wider than the word ‘expenditure’. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon’ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…

Sheila Gopal Foundation, Mumbai vs. Deputy Commissioner of Income Tax Exemption Circle 2, Mumbai

Appeals are allowed in part and Revenue’s appeals are dismissed

ITA 3159/MUM/2025[2014-15]Status: DisposedITAT Mumbai28 Aug 2025AY 2014-15

Bench: Shri Saktijit Dey, Vp & Shri Narendra Kumar Billaiya, Am

For Appellant: Adv. Sanjay Sawant and Adv. Sanjeev ShahFor Respondent: Ms. Kavita P. Kaushik
Section 11Section 13(1)(c)Section 13(2)(a)Section 234

…tinction between the word ‘applied’ and the ‘expenditure’ has held that the scope of word ‘applied’ is wider than the word ‘expenditure’. While taking note of the decision of Hon'ble Supreme Court in the case of Indian Molasses Co. Private Ltd. vs. CIT [1959] 37 ITR 66 (SC), the Hon’ble Kerala High Court has held that the money or amount when applied to a purpose will not go out irretrievably. Accordingly, Hon'ble High Court held that application of income/fund does not require that the fund/money has to go irretrievably. No contrary decision has been brought to our notice by ld. DR. In fact, CBDT Circular No. 10…