Indian Radio Cable Communications Co. Ltd. v. CIT

5 ITR 270Reported decision1937#9823 most cited

What is Indian Radio Cable Communications Co. Ltd. v. CIT authority for?

A payment computed in relation to profits is still an expenditure, not merely an appropriation of profits, unless it constitutes a division of profits. Such expenditure may be allowable even if not for direct and immediate benefit, but for commercial expediency to indirectly facilitate business.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2022.

Also referred to as

Indian Radio Cable Communications Co. Ltd. v. CIT · 5 ITR 270 · expenditure computed on profits · appropriation of profits · commercial expediency · indirect benefit · deduction of expenditure

Judgments citing Indian Radio Cable Communications Co. Ltd. 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

…udgment of the High Court. The following principles are relevant:— (a) though the question must be decided on the facts of each case the final conclusion is one of law: Indian Radio & Cable Communi cation Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 270 PC, and Tata Hydro- Electric Agencies Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 202 PC; (b) it is not necessary to show that the expenditure was a profitable one or that in fact any profit was earned : Moore v. Stewarts and Lloyds [1906] 6 Tax Cas. 501and Usher's case [1915] AC 433; (c) it is enough to show that the money was ex…

M/S. the Karnataka State Co-Operative Apex Bank Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-5(2)(1), Bangalore

Accordingly, Ground No.3 raised by revenue for assessment years 2011-12 stands dismissed

ITA 1761/BANG/2019[2008-09]Status: DisposedITAT Bangalore08 Apr 2021AY 2008-09

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Ms. Neera Malhotra, CIT(DR)(ITAT)For Respondent: Shri. S. Ramasubramanyan, CA
Section 147

…nditure solely on the ground that it is only appropriation out of profits and not expenditure. The approach of the lower authorities cannot stand the test of law laid down by the Privy Council in the case of Indian Radio Cable Communications Co. Ltd. Vs. CIT (5 ITR 270) wherein it is laid down that when the assessee makes a payment which is computed in relation to profits, it is still an item of expenditure though ascertained by reference to the profits. The payment is not allowable as deduction only in the case of division of profits. Lord Maugham, speaking for the Privy Council held as follows: "It is not unive…

Joint Commissioner of Income Tax, Special Range - 5, Bangalore vs. M/S. the Karnataka State Co-Operative Apex Bank Limited, Bangalore

Accordingly, Ground No.3 raised by revenue for assessment years 2011-12 stands dismissed

ITA 1327/BANG/2019[2011-12]Status: DisposedITAT Bangalore08 Apr 2021AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Ms. Neera Malhotra, CIT(DR)(ITAT)For Respondent: Shri. S. Ramasubramanyan, CA
Section 147

…nditure solely on the ground that it is only appropriation out of profits and not expenditure. The approach of the lower authorities cannot stand the test of law laid down by the Privy Council in the case of Indian Radio Cable Communications Co. Ltd. Vs. CIT (5 ITR 270) wherein it is laid down that when the assessee makes a payment which is computed in relation to profits, it is still an item of expenditure though ascertained by reference to the profits. The payment is not allowable as deduction only in the case of division of profits. Lord Maugham, speaking for the Privy Council held as follows: "It is not unive…

Deputy Commissioner of Income Tax Circle-5(2)(1), Bangalore vs. M/S the Karnataka State Co-Operative Apex Bank Ltd, Bangalore

Accordingly, Ground No.3 raised by revenue for assessment years 2011-12 stands dismissed

ITA 2160/BANG/2017[2014-15]Status: DisposedITAT Bangalore08 Apr 2021AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Ms. Neera Malhotra, CIT(DR)(ITAT)For Respondent: Shri. S. Ramasubramanyan, CA
Section 147

…nditure solely on the ground that it is only appropriation out of profits and not expenditure. The approach of the lower authorities cannot stand the test of law laid down by the Privy Council in the case of Indian Radio Cable Communications Co. Ltd. Vs. CIT (5 ITR 270) wherein it is laid down that when the assessee makes a payment which is computed in relation to profits, it is still an item of expenditure though ascertained by reference to the profits. The payment is not allowable as deduction only in the case of division of profits. Lord Maugham, speaking for the Privy Council held as follows: "It is not unive…

Deputy Commissioner of Income Tax Circle-5(2)(1), Bangalore vs. M/S the Karnataka State Co-Operative Apex Bank Ltd, Bangalore

Accordingly, Ground No.3 raised by revenue for assessment years 2011-12 stands dismissed

ITA 2150/BANG/2017[2008-09]Status: DisposedITAT Bangalore08 Apr 2021AY 2008-09

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Ms. Neera Malhotra, CIT(DR)(ITAT)For Respondent: Shri. S. Ramasubramanyan, CA
Section 147

…nditure solely on the ground that it is only appropriation out of profits and not expenditure. The approach of the lower authorities cannot stand the test of law laid down by the Privy Council in the case of Indian Radio Cable Communications Co. Ltd. Vs. CIT (5 ITR 270) wherein it is laid down that when the assessee makes a payment which is computed in relation to profits, it is still an item of expenditure though ascertained by reference to the profits. The payment is not allowable as deduction only in the case of division of profits. Lord Maugham, speaking for the Privy Council held as follows: "It is not unive…

Karnataka State Co-Operative Apex Bank Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-5(2)(1), Bangalore

Accordingly, Ground No.3 raised by revenue for assessment years 2011-12 stands dismissed

ITA 2082/BANG/2017[2013-14]Status: DisposedITAT Bangalore08 Apr 2021AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Ms. Neera Malhotra, CIT(DR)(ITAT)For Respondent: Shri. S. Ramasubramanyan, CA
Section 147

…nditure solely on the ground that it is only appropriation out of profits and not expenditure. The approach of the lower authorities cannot stand the test of law laid down by the Privy Council in the case of Indian Radio Cable Communications Co. Ltd. Vs. CIT (5 ITR 270) wherein it is laid down that when the assessee makes a payment which is computed in relation to profits, it is still an item of expenditure though ascertained by reference to the profits. The payment is not allowable as deduction only in the case of division of profits. Lord Maugham, speaking for the Privy Council held as follows: "It is not unive…

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

…judgment of the High Court. The following principles are relevant:— (a) though the question must be decided on the facts of each case the final conclusion is one of law: Indian Radio & Cable Communi cation Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 270 PC, and Tata Hydro- Electric Agencies Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 202 PC; (b) it is not necessary to show that the expenditure was a profitable one or that in fact any profit was earned : Moore v. Stewarts and Lloyds [1906] 6 Tax Cas. 501and Usher's case [1915] AC 433; (c) it is enough to show that the money was expe…

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

…judgment of the High Court. The following principles are relevant:— (a) though the question must be decided on the facts of each case the final conclusion is one of law: Indian Radio & Cable Communi cation Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 270 PC, and Tata Hydro- Electric Agencies Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 202 PC; (b) it is not necessary to show that the expenditure was a profitable one or that in fact any profit was earned : Moore v. Stewarts and Lloyds [1906] 6 Tax Cas. 501and Usher's case [1915] AC 433; (c) it is enough to show that the money was expe…

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

…judgment of the High Court. The following principles are relevant:— (a) though the question must be decided on the facts of each case the final conclusion is one of law: Indian Radio & Cable Communi cation Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 270 PC, and Tata Hydro- Electric Agencies Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 202 PC; (b) it is not necessary to show that the expenditure was a profitable one or that in fact any profit was earned : Moore v. Stewarts and Lloyds [1906] 6 Tax Cas. 501and Usher's case [1915] AC 433; (c) it is enough to show that the money was expe…

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

…judgment of the High Court. The following principles are relevant:— (a) though the question must be decided on the facts of each case the final conclusion is one of law: Indian Radio & Cable Communi cation Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 270 PC, and Tata Hydro- Electric Agencies Ltd. v. The Commissioner of Income-tax, Bombay [1937] 5 ITR 202 PC; (b) it is not necessary to show that the expenditure was a profitable one or that in fact any profit was earned : Moore v. Stewarts and Lloyds [1906] 6 Tax Cas. 501and Usher's case [1915] AC 433; (c) it is enough to show that the money was expe…

The Karnataka State Co-Operative Apex Bank Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, grounds of appeal Nos

ITA 1372/BANG/2014[2007-08]Status: DisposedITAT Bangalore29 Feb 2016AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raothe Karnataka State Co-Operative Apex Bank Ltd., ‘Uthunga’, No.1, Pmk Road, Chamarajpet, Bangalore-560018. … Appellant Pan:Aabat 0269 J Vs. Deputy Commissioner Of Income-Tax, Circle 3(1), Bangalore. … Respondent

For Appellant: Shri Bharath L, CAFor Respondent: Shri Sanjay Kumar, CIT(DR)
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 28

…nditure solely on the ground that it is only appropriation out of profits and not expenditure. The approach of the lower authorities cannot stand the test of law laid down by the Privy Council in the case of Indian Radio Cable Communications Co. Ltd. Vs. CIT (5 ITR 270) wherein it is laid down that when the assessee makes a payment which is computed in relation to profits, it is still an item of expenditure though ascertained by reference to the profits. The payment is not allowable as deduction only in the case of division of profits. Lord Maugham, speaking for the Privy Council held as follows: “It is not univ…

Indian Radio Cable Communications Co. Ltd. v. CIT (5 ITR 270) — Cited in 11 Judgments | BharatTax