Indian Molasses Co. Pvt. Ltd. v. CIT

M/S. State Bank of India, Mumbai vs. Jt. CIT. Spl. RG. - 27, Mumbai

Bench: S/Sh.Rajendra & Amit Shuklaआयकर अपील सं./I.T.A. No.3823-24/Mum/2005 िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Ay.S.1997-98, 1998-99 वष" State Bank Of India Addl. Cit- Range-2(2) Accounts & Compliance Deptt. Mumbai. Corporate Centre,Madam Cama Road Vs. Mumbai-400 021. Pan:Aaacs 8577 K (अपीलाथ" /Appellant) (""थ" / Respondent) Revenue By: Shri Rajeshwar Yadav Assessee By:Shri Girish Dave सुनवाई की तारीख / Date Of Hearing :02.03.2016 घोषणा की तारीख / Date Of Pronouncement: 29.04.2016 आयकर अिधिनयम,1961 की धारा 254(1)के अ"ग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) खंडपीठ के अनुसार Per Bench: Challenging The Orders Dated 24.3.2005 & 28.3.2005 The Asssessee Has Filed The Appeals For Above Mentioned Two Ay.S Raising Various Grounds Of Appeal. It Has Also Filed Additional Grounds Of Appeal For The Ay 1997-98.Assessee,A Public Sector Bank Is Engaged In The Business Of Banking.The Details Of Filing Of Returns, Returned Income Etc., For Both The Years Can Be Summarised As Under : A.Y. Roi Filed Returned Assessment Assessed Dt. Of Orders On Income(Rs.) Dt. Income(Rs.) Of Cit(A) 1997-98 28.11.1997 2086,56,04,580/- 27.03.2000 2433,18,77,427/- 24.3.2005 1998-99 30.11.1998 2816,41,01,920/- 14.02.2001 3558,87,03,620/- 28.3.2005

…ground of diminished hope of recovery. Furthermore, any liability de futuro 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. Molasses Co. Pvt.Ltd. vs. CIT 37 ITR 66 (SC) Ltd. vs. CIT 37 ITR 66 (SC) and Standard Mills Ltd. vs. CIT 37 ITR 66 (SC) Standard Mills Co. Ltd. Vs.CIT 229 ITR 366(Bom Co. Ltd. Vs.CIT 229 ITR 366(Bom) 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…

Tata Aig General Insurance Company Ltd, Mumbai vs. DCIT 2(3), Mumbai

In the result, appeals of the revenue are dismissed, whereas appeals of the assessee are allowed, in terms indicated hereinabove

…e are of the view that the amortization claim cannot be considered as an expenditure or allowance within the meaning of rule 5(a) of the First Schedule. As held by the Supreme Court in the case of Indian Molasses Co. (Private) Ltd. vs. CIT, West Bengal (1959) 37 ITR 66 (SC), spending in the sense paying out or away of money is the primary meaning of expenditure. Expenditure is what is paid out or away and is something which is gone irretrievably. Expenditure , which is deductible for income tax purposes, is one which is towards a liability actually existing at the time, but the putting aside of money which may be…

DCIT 2(3), Mumbai vs. Tata Aig General Insurance Co. Ltd, Mumbai

In the result, appeals of the revenue are dismissed, whereas appeals of the assessee are allowed, in terms indicated hereinabove

…e are of the view that the amortization claim cannot be considered as an expenditure or allowance within the meaning of rule 5(a) of the First Schedule. As held by the Supreme Court in the case of Indian Molasses Co. (Private) Ltd. vs. CIT, West Bengal (1959) 37 ITR 66 (SC), spending in the sense paying out or away of money is the primary meaning of expenditure. Expenditure is what is paid out or away and is something which is gone irretrievably. Expenditure , which is deductible for income tax purposes, is one which is towards a liability actually existing at the time, but the putting aside of money which may be…

Addl CIT 2(3), Mumbai vs. Tata Aig General Insurance Co. Ltd, Mumbai

In the result, appeals of the revenue are dismissed, whereas appeals of the assessee are allowed, in terms indicated hereinabove

…e are of the view that the amortization claim cannot be considered as an expenditure or allowance within the meaning of rule 5(a) of the First Schedule. As held by the Supreme Court in the case of Indian Molasses Co. (Private) Ltd. vs. CIT, West Bengal (1959) 37 ITR 66 (SC), spending in the sense paying out or away of money is the primary meaning of expenditure. Expenditure is what is paid out or away and is something which is gone irretrievably. Expenditure , which is deductible for income tax purposes, is one which is towards a liability actually existing at the time, but the putting aside of money which may be…

Tata Aig General Insurance Company Ltd, Mumbai vs. Addl CIT RG 2(3), Mumbai

In the result, appeals of the revenue are dismissed, whereas appeals of the assessee are allowed, in terms indicated hereinabove

…e are of the view that the amortization claim cannot be considered as an expenditure or allowance within the meaning of rule 5(a) of the First Schedule. As held by the Supreme Court in the case of Indian Molasses Co. (Private) Ltd. vs. CIT, West Bengal (1959) 37 ITR 66 (SC), spending in the sense paying out or away of money is the primary meaning of expenditure. Expenditure is what is paid out or away and is something which is gone irretrievably. Expenditure , which is deductible for income tax purposes, is one which is towards a liability actually existing at the time, but the putting aside of money which may be…

Tata Aig General Insurance Company Limited, Mumbai vs. Addl. C.I.T. Range 2(3), Mumbai

In the result, appeals of the revenue are dismissed, whereas appeals of the assessee are allowed, in terms indicated hereinabove

…e are of the view that the amortization claim cannot be considered as an expenditure or allowance within the meaning of rule 5(a) of the First Schedule. As held by the Supreme Court in the case of Indian Molasses Co. (Private) Ltd. vs. CIT, West Bengal (1959) 37 ITR 66 (SC), spending in the sense paying out or away of money is the primary meaning of expenditure. Expenditure is what is paid out or away and is something which is gone irretrievably. Expenditure , which is deductible for income tax purposes, is one which is towards a liability actually existing at the time, but the putting aside of money which may be…

Addl CIT 2(3), Mumbai vs. Tata Aig General Insurance Co. Ltd, Mumbai

In the result, appeals of the revenue are dismissed, whereas appeals of the assessee are allowed, in terms indicated hereinabove

…e are of the view that the amortization claim cannot be considered as an expenditure or allowance within the meaning of rule 5(a) of the First Schedule. As held by the Supreme Court in the case of Indian Molasses Co. (Private) Ltd. vs. CIT, West Bengal (1959) 37 ITR 66 (SC), spending in the sense paying out or away of money is the primary meaning of expenditure. Expenditure is what is paid out or away and is something which is gone irretrievably. Expenditure , which is deductible for income tax purposes, is one which is towards a liability actually existing at the time, but the putting aside of money which may be…

Asst CIT 4(3), Mumbai vs. People Interactive (I) P.Ltd, Mumbai

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kochar

…he assessee incurs any expenditure, which thereafter satisfies the requisite conditions of the sub-section (1). He submitted that the word "expenditure" has been described by the Hon'ble Supreme Court in the case of Indian Molasses Co. (P.) Ltd. v. CIT [1959] 37 ITR 66 as denoting spending or paying out, i.e. something going out of the coffers of the assessee. It was put 12 People Interactive India Private Limited ITA Nos.6990,6986,4979/Mum/2013 Assessment Years : 2007-08,2008-09,2009-10 forth that by issuing shares at discounted premium, nothing is paid out by the company. Once there is no "paying out or away"…

Asst CIT 4(3), Mumbai vs. People Ineractive (I) P.Ltd, Mumbai

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kochar

…he assessee incurs any expenditure, which thereafter satisfies the requisite conditions of the sub-section (1). He submitted that the word "expenditure" has been described by the Hon'ble Supreme Court in the case of Indian Molasses Co. (P.) Ltd. v. CIT [1959] 37 ITR 66 as denoting spending or paying out, i.e. something going out of the coffers of the assessee. It was put 12 People Interactive India Private Limited ITA Nos.6990,6986,4979/Mum/2013 Assessment Years : 2007-08,2008-09,2009-10 forth that by issuing shares at discounted premium, nothing is paid out by the company. Once there is no "paying out or away"…

Inventurus Knowledge Services P.Ltd, Navi Mumbai vs. ITO 5(2)(1), Mumbai

In the result appeal of the assessee company is partly allowed

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: - 2009-10 Inventurus Knowledge Services V. Income Tax Officer Pvt. Ltd. 5(2)(1), C/O. Seren Properties Pvt. Ltd. 525, Aaykar Bhavan, (Sez), Unit No. 204, Build No. 5, M.K. Road, Mindspace Airoli Camp, Plot No. Mumbai - 400 020. 3, Gat No. 95, Kalwa Trans, Thane Creek, Midc Industrial Area, Thane Belapur Road, Airoli, Navi Mumbai – 400 708. Pan/Gir No. Aabck4601P

…prudent trader sets apart to meet a liability, not actually present but only contingent, cannot bear the character of expenses till the liability becomes real. He also referred to the decision of the Hon'ble Supreme Court in the case of Indian Molasses' case (37 ITR 66), wherein also, it was held that where the liability is contingent, the same is not allowable. The Hon'ble Supreme Court observed as under:- "The expenditure which is deductible for income tax purposes is one which is towards a liability actually existing at the time, but the putting aside of money which may become expenditure on the happening of a…

People Interactive (I) P.Ltd, Mumbai vs. Asst CIT 4(3), Mumbai

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kochar

…he assessee incurs any expenditure, which thereafter satisfies the requisite conditions of the sub-section (1). He submitted that the word "expenditure" has been described by the Hon'ble Supreme Court in the case of Indian Molasses Co. (P.) Ltd. v. CIT [1959] 37 ITR 66 as denoting spending or paying out, i.e. something going out of the coffers of the assessee. It was put 12 People Interactive India Private Limited ITA Nos.6990,6986,4979/Mum/2013 Assessment Years : 2007-08,2008-09,2009-10 forth that by issuing shares at discounted premium, nothing is paid out by the company. Once there is no "paying out or away"…