J.K.Industries v. UOI

Appu Nutritions Private Limited, Chemmanur Hall, Bangalore vs. DCIT-Circle 1(1)(1), Bangalore, Bmtc Building, Koramangala

In the result, the appeal by the assessee is allowed for statistical purposes

Bench: Shri Laxmi Prasad Sahu & Shri Prakash Chand Yadavassessment Year : 2015-16 Appu Nutritious Pvt. Ltd., Vs. Dcit, C/O, Idiom Design & Circle – 1(1)(1), Consulting Ltd., Joseph Bangalore. Chemmanur Hall, 1St Cross, 1St Stage, Indiranagar, Bangalore – 560 038. Pan : Aabca 7049 M Appellant Respondent Appellant By : Shri Ajith Kumar, Director Respondent By : Ms. Neha Sahay, Jcit(Dr)(Itat), Bangalore. Date Of Hearing : 12.11.2024 Date Of Pronouncement : 19.11.2024 O R D E R Per Laxmi Prasad Sahuthis Appeal Is Filed By The Assessee Against The Order Dated 12.07.2024 Of The Cit(Appeals), National Faceless Appeal Centre, Delhi [Nfac], For The Ay 2015-16. 2. Briefly Stated The Facts Of The Case Are That The Assessee Filed Its Return Of Income On 29.09.2015 Declaring ‘Nil’ Income. The Case Was Selected For Scrutiny & Notice Was Issued To The Assessee. During The Page 2 Of 5

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER Assessment Year : 2015-16 Appu Nutritious Pvt. Ltd., Vs. DCIT, C/o, Idiom Design and Circle – 1(1)(1), Consulting Ltd., Joseph Bangalore. Chemmanur Hall, 1st Cross, 1st Stage, Indiranagar, Bangalore – 560 038. PAN : AABCA 7049 M APPELLANT RESPONDENT Appellant by : Shri Ajith Kumar, Director Respondent by : Ms. Neha Sahay, JCIT(DR)(ITAT), Bangalore. Date of hearing : 12.11.2024 Date of Pronouncement : 19.11.2024 O R D E R Per Laxmi Prasad Sahu, Accountant Member…

T.G. Ranganath, Bangalore vs. DCIT, Bangalore

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2008-09

…vs Karnataka Power Transmission Corporation Ltd reported in the [2021] 276 Taxman 439 (Kar), wherein drawing support from the decisions of the Hon'ble Supreme Court of India in the cases of J.K. Industries Ltd. v. Union of India [2007] 165 Taxman 323 /[2008] 297 ITR 176 and CIT v. Bokaro Steel Ltd. [1999] 102 Taxman 94 / 236 ITR 315, held as under: "On the other hand, learned counsel for the assessee has submitted that the mercantile system and accrual system of accounting are synonymous. In this connection, reference has been made to guidance note on accrual system of accounting and our attention has been invit…

T.G. Ranganath, Bangalore vs. ACIT, Bangalore

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2008-09

…vs Karnataka Power Transmission Corporation Ltd reported in the [2021] 276 Taxman 439 (Kar), wherein drawing support from the decisions of the Hon'ble Supreme Court of India in the cases of J.K. Industries Ltd. v. Union of India [2007] 165 Taxman 323 /[2008] 297 ITR 176 and CIT v. Bokaro Steel Ltd. [1999] 102 Taxman 94 / 236 ITR 315, held as under: "On the other hand, learned counsel for the assessee has submitted that the mercantile system and accrual system of accounting are synonymous. In this connection, reference has been made to guidance note on accrual system of accounting and our attention has been invit…

ACIT, Bangalore vs. Sri. T.G. Ranganath, Bangalore

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2008-09

…vs Karnataka Power Transmission Corporation Ltd reported in the [2021] 276 Taxman 439 (Kar), wherein drawing support from the decisions of the Hon'ble Supreme Court of India in the cases of J.K. Industries Ltd. v. Union of India [2007] 165 Taxman 323 /[2008] 297 ITR 176 and CIT v. Bokaro Steel Ltd. [1999] 102 Taxman 94 / 236 ITR 315, held as under: "On the other hand, learned counsel for the assessee has submitted that the mercantile system and accrual system of accounting are synonymous. In this connection, reference has been made to guidance note on accrual system of accounting and our attention has been invit…

M/S. Corporate Leisure & Property Development Pvt. Ltd., Bengaluru vs. DCIT, Central Circle-2(1)(1), Bengaluru

In the result, the appeal fails and is hereby dismissed

Bench: Shri Chandra Poojari & Shri George George K.Assessment Year: 2013-14

…same have now been invoked by the AO, the same cannot be brushed aside. As such the ratio of the above decision would not help the assessee. Hon’ble Supreme Court decided the issue on similar lines in the case of J.K. Industries Ltd. v. Union of India [2008] 297 ITR 176 (SC), while dealing with a challenge to AS-22 (notification dated 7-12-2006). 6.7 The ld. D.R. further submitted that as discussed supra, the ratio of the decision of the Hon'ble Supreme Court in the case of British Paints India Ltd (Supra) squarely applies and there is no estoppel on the AO regarding method of accounting. Similar case was deci…

DCIT, Bangalore vs. Sri. H. Nagaraja, Bangalore

In the result, the appeal by the revenue is allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year : 2008-09

…ssessee is rejected. 5. The issue set aside by the High Court and remitted to the Tribunal in this appeal is limited to consideration of the applicability of Hon’ble Supreme Court judgment in the case of J.K. Industries Ltd. & Anr. v. UOI [2007] 13 SCC 673 / 297 ITR 176 (SC) with regard to assessee’s entitlement to the benefit of matching principle. In this judgment, the Hon’ble Supreme Court on the issue of matching principle has held as follows:- “Matching Principle : 82. Matching Concept is based on the accounting period concept. The paramount object of running a business is to earn profit. In order to ascer…

Assistant Commissioner of Income Tax Circle-1, Bellary vs. Shri Vazhyiel House Narayanan Kutty Menon, Bellary

In the result, the revenue’s appeal is partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Shri George George K.Assessment Year : 2014-15

…2 ITR 254, wherein, Hon’ble Court held that, profits and gains of previous year are required to be computed in accordance with relevant accounting standard. Referring to decision of Hon’ble Supreme Court in case of JK industries Ltd vs UOI, reported in (2008) 297 ITR 176, Ld.Counsel submitted that, rules by which inventories are to be valued are laid down in accounting standards , and are to be followed in determination of accounting income mandatorily. He submitted that Hon’ble Court also held that; “8. Finally, adoption of accounting standards and of accounting income as ‘taxable income’ would avoid distortion…

M/S Gogga Gurusanthaiah and Brothers, Hospet vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeals filed by the assessee are partly allowed as indicated above

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

…2 ITR 254, wherein, Hon’ble Court held that, profits and gains of previous year are required to be computed in accordance with relevant accounting standard. Referring to decision of Hon’ble Supreme Court in case of JK industries Ltd vs UOI, reported in (2008) 297 ITR 176, Ld.Counsel submitted that, rules by which inventories are to be valued are laid down in accounting standards , and are to be followed in determination of accounting income mandatorily. He submitted that Hon’ble Court also held that; “8. Finally, adoption of accounting standards and of accounting income as ‘taxable income’ would avoid distortion…

M/S Gogga Gurusanthaiah and Brothers, Hospet vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeals filed by the assessee are partly allowed as indicated above

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

…2 ITR 254, wherein, Hon’ble Court held that, profits and gains of previous year are required to be computed in accordance with relevant accounting standard. Referring to decision of Hon’ble Supreme Court in case of JK industries Ltd vs UOI, reported in (2008) 297 ITR 176, Ld.Counsel submitted that, rules by which inventories are to be valued are laid down in accounting standards , and are to be followed in determination of accounting income mandatorily. He submitted that Hon’ble Court also held that; “8. Finally, adoption of accounting standards and of accounting income as ‘taxable income’ would avoid distortion…

M/S Gogga Gurusanthaiah and Brothers, Hospet vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeals filed by the assessee are partly allowed as indicated above

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

…2 ITR 254, wherein, Hon’ble Court held that, profits and gains of previous year are required to be computed in accordance with relevant accounting standard. Referring to decision of Hon’ble Supreme Court in case of JK industries Ltd vs UOI, reported in (2008) 297 ITR 176, Ld.Counsel submitted that, rules by which inventories are to be valued are laid down in accounting standards , and are to be followed in determination of accounting income mandatorily. He submitted that Hon’ble Court also held that; “8. Finally, adoption of accounting standards and of accounting income as ‘taxable income’ would avoid distortion…

Vijaya Bank Employees Housing Co-Operative Society Ltd., Bangalore vs. ACIT, Bangalore

In the result, the appeal filed by the assessee is partly allowed, as indicated above

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

…ory to offset cost overrun, and (ii) based on principle of matching concept the expenditure attributable to income shall be allowed. In this context the assessee relied on the judgment of the Hon’ble Apex Court in the case of J.K.Industries v. UOI reported in 297 ITR 176 (SC). 5.1 The CIT(A) proposed to tax the entire interest income earned from bank by holding that the assessee is a mutual society and that non-mutual income is to be taxed in its entirety. This had the effect of enhancing the assessed income and a notice u/s 251(2) of the I.T.Act was issued vide order sheet entry dated 19.12.2013. The assessee i…

M/S Vijaya Bank Employees Housing Co-Operative Society Ltd, Bangalore vs. Income Tax Officer Ward-4(3)(3), Bangalore

In the result, the appeals filed by the assessee are partly allowed, as indicated above

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

…e assessee-society. Therefore, based on the principle of matching concept, the expenditure attributable to income ought to be allowed. In this regard reliance is placed on the judgment of the Hon’ble Apex Court in the case of J.K.Industries v. UOI reported on 297 ITR 176 (SC), wherein the Hon’ble Supreme Court had held as follows:- “The object of incurring expenses is to produce revenue. In measuring the income for a period, revenue is to be adjusted against expenses incurred for producing that revenue. This concept of adjusting / offsetting the expenses against revenue is the matching principle.” 12.6 The above…

M/S Vijaya Bank Employees Housing Co-Operative Society Ltd, Bangalore vs. Assistat Commissioner of Income Tax Circle-4(3)(1), Bangalore

In the result, the appeals filed by the assessee are partly allowed, as indicated above

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

…e assessee-society. Therefore, based on the principle of matching concept, the expenditure attributable to income ought to be allowed. In this regard reliance is placed on the judgment of the Hon’ble Apex Court in the case of J.K.Industries v. UOI reported on 297 ITR 176 (SC), wherein the Hon’ble Supreme Court had held as follows:- “The object of incurring expenses is to produce revenue. In measuring the income for a period, revenue is to be adjusted against expenses incurred for producing that revenue. This concept of adjusting / offsetting the expenses against revenue is the matching principle.” 12.6 The above…