Jamshedpur Motor Accessories Stores v. CIT

95 ITR 664High Court1974#4240 most cited

What is Jamshedpur Motor Accessories Stores v. CIT authority for?

For expenditure to be deductible, its reasonableness must be judged from the businessman's perspective, not the revenue's, considering commercial expediency.

28

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2023.

Also referred to as

Jamshedpur Motor Accessories Stores v CIT · 95 ITR 664 · business expenditure · commercial expediency · reasonableness of expenditure · businessman's point of view · section 10(2)(xv)

Judgments citing Jamshedpur Motor Accessories Stores v. CIT

M/S. the Jampeta Co- Op Urban Bank Ltd, Rajahmundry vs. The Joit CIT, Rajahmundry

In the result, appeals filed by the assessee in ITA No

ITA 160/VIZ/2017[2011-2012]Status: DisposedITAT Visakhapatnam28 May 2018AY 2011-2012

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble & The Jampeta Co-Operative Vs. Acit, Circle-1, Urban Bank Ltd., Jampeta, Rajahmundry. Rajahmundry. Pan No. Aaaat 4048 E (Appellant) (Respondent)

For Appellant: Shri G.V.N. Hari, AdvocateFor Respondent: Shri S. Ravi Shankar Narayan, Sr.DR
Section 143(1)Section 143(3)Section 16Section 45

…a liability to repay the share capital when the concerned member ceases to be a member. Hence “Share capital” in the hands of co-operative societies should be treated as “Borrowed Capital”. (i) In the case of Jamshedpur Motor Accessories Stores Vs. CIT (1974)(95 ITR 664), the Hon'ble Patna High Court has held that the payment of share of profit to the financiers in lieu of interest is not uncommon and hence, if such a payment was made on the ground of commercial expediency, the same is allowable as deduction. (j) In the case of CIT Vs. T.T.D Co-operative Stores Ltd., (1998)(232 ITR 109)(A.P), the rebate to be giv…

The Aryapuram Co-Operative Urban Bank Ltd., Rajahmundry vs. The ACIT, Circle - 1, Rajahmundry

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes; and the appeal filed by the Revenue is dismissed

ITA 177/VIZ/2013[2009-10]Status: DisposedITAT Visakhapatnam28 May 2018AY 2009-10

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri Deba Kumar Sonawal – CIT DR
Section 143(3)Section 144Section 148Section 43Section 43B

…a liability to repay the share capital when the concerned member ceases to be a member. Hence “Share capital” in the hands of co-operative societies should be treated as “Borrowed Capital”. (i) In the case of Jamshedpur Motor Accessories Stores Vs. CIT (1974)(95 ITR 664), the Hon'ble Patna High Court has held that the payment of share of profit to the financiers in lieu of interest is not uncommon and hence, if such a payment was made on the ground of commercial expediency, the same is allowable as deduction. (The Aryapuram Co-op. Urban Bank Ltd.) (j) In the case of CIT Vs. T.T.D Co-operative Stores Ltd., (1998)…

The Jampeta Co-Operative Urban Bank Ltd., Rajahmundry vs. The ACIT, Circle - 1, Rajahmundry

In the result, appeals filed by the assessee in ITA No

ITA 510/VIZ/2014[2010-11]Status: DisposedITAT Visakhapatnam28 May 2018AY 2010-11

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble & The Jampeta Co-Operative Vs. Acit, Circle-1, Urban Bank Ltd., Jampeta, Rajahmundry. Rajahmundry. Pan No. Aaaat 4048 E (Appellant) (Respondent)

For Appellant: Shri G.V.N. Hari, AdvocateFor Respondent: Shri S. Ravi Shankar Narayan, Sr.DR
Section 143(1)Section 143(3)Section 16Section 45

…a liability to repay the share capital when the concerned member ceases to be a member. Hence “Share capital” in the hands of co-operative societies should be treated as “Borrowed Capital”. (i) In the case of Jamshedpur Motor Accessories Stores Vs. CIT (1974)(95 ITR 664), the Hon'ble Patna High Court has held that the payment of share of profit to the financiers in lieu of interest is not uncommon and hence, if such a payment was made on the ground of commercial expediency, the same is allowable as deduction. (j) In the case of CIT Vs. T.T.D Co-operative Stores Ltd., (1998)(232 ITR 109)(A.P), the rebate to be giv…

The ACIT, Circle - 1, Rajahmundry vs. M/Sthe Aryapuram Co-Oprative Urban Bank Ltd., Rajahmundry

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes; and the appeal filed by the Revenue is dismissed

ITA 195/VIZ/2013[2009-10]Status: DisposedITAT Visakhapatnam28 May 2018AY 2009-10

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri Deba Kumar Sonawal – CIT DR
Section 143(3)Section 144Section 148Section 43Section 43B

…a liability to repay the share capital when the concerned member ceases to be a member. Hence “Share capital” in the hands of co-operative societies should be treated as “Borrowed Capital”. (i) In the case of Jamshedpur Motor Accessories Stores Vs. CIT (1974)(95 ITR 664), the Hon'ble Patna High Court has held that the payment of share of profit to the financiers in lieu of interest is not uncommon and hence, if such a payment was made on the ground of commercial expediency, the same is allowable as deduction. (The Aryapuram Co-op. Urban Bank Ltd.) (j) In the case of CIT Vs. T.T.D Co-operative Stores Ltd., (1998)…

The Aryapuram Co-Operative Urban Bank Ltd., Rajahmundry vs. The ACIT, Rajahmundry

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes; and the appeal filed by the Revenue is dismissed

ITA 173/VIZ/2015[2011-12]Status: DisposedITAT Visakhapatnam28 May 2018AY 2011-12

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri Deba Kumar Sonawal – CIT DR
Section 143(3)Section 144Section 148Section 43Section 43B

…a liability to repay the share capital when the concerned member ceases to be a member. Hence “Share capital” in the hands of co-operative societies should be treated as “Borrowed Capital”. (i) In the case of Jamshedpur Motor Accessories Stores Vs. CIT (1974)(95 ITR 664), the Hon'ble Patna High Court has held that the payment of share of profit to the financiers in lieu of interest is not uncommon and hence, if such a payment was made on the ground of commercial expediency, the same is allowable as deduction. (The Aryapuram Co-op. Urban Bank Ltd.) (j) In the case of CIT Vs. T.T.D Co-operative Stores Ltd., (1998)…

Aryapuram Co=Op. Urbank Ltd., Rajahmundry vs. The ACIT, Rajahmundry

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes; and the appeal filed by the Revenue is dismissed

ITA 517/VIZ/2014[2010-11]Status: DisposedITAT Visakhapatnam28 May 2018AY 2010-11

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri Deba Kumar Sonawal – CIT DR
Section 143(3)Section 144Section 148Section 43Section 43B

…a liability to repay the share capital when the concerned member ceases to be a member. Hence “Share capital” in the hands of co-operative societies should be treated as “Borrowed Capital”. (i) In the case of Jamshedpur Motor Accessories Stores Vs. CIT (1974)(95 ITR 664), the Hon'ble Patna High Court has held that the payment of share of profit to the financiers in lieu of interest is not uncommon and hence, if such a payment was made on the ground of commercial expediency, the same is allowable as deduction. (The Aryapuram Co-op. Urban Bank Ltd.) (j) In the case of CIT Vs. T.T.D Co-operative Stores Ltd., (1998)…

ACIT 11(1), Mumbai vs. Sanjay Navin Bhansali, Mumbai

In the result, Revenue’s appeal is dismissed

ITA 6730/MUM/2014[2010-11]Status: DisposedITAT Mumbai11 Oct 2017AY 2010-11

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Chetan KariaFor Respondent: Shri V. Janardhanan
Section 143(1)Section 143(3)

…ering a question of allowability of an item of expenditure, the authority should take into account both oral and documentary evidence, as produced or submitted by the assessee. Likewise, the Patna High Court in the case of Jamshedpur Motor Accessories Stores (95 ITR 664) has held that the fact of incurring on expenditure evidenced by a proper entries in the books of accounts kept in the normal course of business is not to be disbelieved merely because there is no written agreement between the parties to support it. 1.14 The AO has also alleged that the transaction between UTV and the appellant was not revenue ne…

ACIT 19(2), Mumbai vs. Reliance Capital Partners, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 1024/MUM/2014[2009-10]Status: DisposedITAT Mumbai26 Feb 2016AY 2009-10

Bench: Shri B.R. Baskaran (Am) & Shri Ram Lal Negi (Jm)

For Appellant: Shri Jitendra SanghaviFor Respondent: Shri B.S. Bist (Sr. DR)
Section 40A(2)(b)

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & SHRI RAM LAL NEGI (JM) I.T.A. NO. 1024/MUM/2014 (Assessment Year 2009-2010) ACIT – 19(2), Vs. M/s. Reliance Capital Mumbai Partners 3rd floor, Reliance Energy Centre, Santa Cruz (E), Mumbai 400 055. (Appellant) .. (Respondent) PAN No.AAIFR9553P Assessee by : Shri Jitendra Sanghavi Department by : Shri B.S. Bist (Sr. DR) Date of Hearing : 01.03.2016 Date of Pronouncement : 01.03.2016 O R D E R PER B.R. BASKARAN, AM :- The revenue has filed this appeal challenging the order dated 17.12.2013 passed by Ld CIT(A)-18, Mumbai fo…