Kedarnath Jute Mfg. Co. Ltd. v. CIT

82 ITR 363Supreme Court of India1971#89 most cited

What is Kedarnath Jute Mfg. Co. Ltd. v. CIT authority for?

Tax liability for an item of income or expenditure is determined solely by the provisions of the Income-tax Act. Entries in an assessee's books of account are not conclusive and do not govern the taxability or deductibility of an item, as the legal rights and obligations under the Act prevail.

654

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 1998 to 2026.

Also referred to as

Kedarnath Jute Mfg. Co. Ltd. v. CIT · 82 ITR 363 SC · tax liability · accounting entries · books of account · Income-tax Act provisions · tax law vs accounting · section 145 · mercantile system · book profits · section 115JB · section 37(1) · section 43B

Sections most often in play

Section 143(3)Section 1961Section 37(1)Section 43BSection 14ASection 115JBSection 143(1)Section 145
Read the full judgment

Issues it is cited on

section 80hhcsection 80hhbook profitsrevenue expendituresection 80iamercantile system of accountingcapital expendituresection 115jsection 80idisallowance under section 14asection 37(1)section 115jb

Judgments citing Kedarnath Jute Mfg. Co. Ltd. v. CIT

ACIT, Cir-10, Kolkata vs. M/S Ici India Ltd., Kolkata

In the result, Revenue’s appeal is dismissed

ITA 2355/KOL/2005[1996-97]Status: DisposedITAT Kolkata27 Nov 2015AY 1996-97

Bench: Shri Mahavir Singh & Shri Waseem Ahmed

Section 143(3)

…see prayed for the allowabilty of the VRS amount. In support of its claim assessee has submitted the following case laws:- 1. CIT v. Alim Bag Salim Bhai 163 ITR 767 (MP) 2. Kalekhan Mohammed Hanif v. CIT 163 ITR 769 (MP) 3. Kedarnath Jute Mfg. Co. Ltd. v. CIT 82 ITR 363 (SC) 4. Metal Box Co. of India Ltd. v. Their Workmen 73 ITR 53 (SC) 5. ITAT, Kolkata C Bench Rallis India Ltd. v.DCIT Ld. AR also submitted that this Tribunal’s order in assessee’s own case in ITA No. 851/Kol/2008, 1018/Kol/2007 & 1640/Kol/2008 for AYs 2000-01 and 2001-02, involving the exactly similar facts where the decision was in favour of as…

The ADIT (I.T)3(1) vs. M/S. Honkong & Shanghani Banking Corpn. Ltd

In the result, ITA Nos.2519 and 2520/Mum/2004 by revenue stand dismissed, ITA No

ITA 2519/MUM/2004[1999-2000]Status: DisposedITAT Mumbai20 Nov 2015AY 1999-2000

Bench: S/Shri B.R.Baskaran, Am & Pawan Singh, Jm आयकर अपील सं./I.T.A. No.2519 & 2520/Mum/2004 ("नधा"रण वष" / Assessment Year:1999-2000 & 2000-01) M/S Hongkong & Shanghani Asstt.Direrctor Of Income Tax बनाम/ Banking Corporation Ltd., (International Taxation)-3(1), Vs. 52/60, M G Road, 136, Scindia House, Mumbai-400001 N M Marg, Ballard Estate, Mumbai-400038 .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

Section 143(3)

…IT(IT) (2012) 54 SOT 140(Mum) = (2012) 23 taxmann.com 449(Mum); 7 and other six appeals d) DCIT (IT) V/s Chohang Bank 126 ITD 448 (Mum); e) ABN Amro Bank N V V/s JCIT in ITA No.692/Cal/2000(AY-1996-97) dated 30.3.2001; f) Kedarnath Jute Mfg Co. Ltd.V/s CIT- 82 ITR 363 g) The British Bank of Middle East V/s JCIT in ITA No.751/Mum/1998 (AY-1993-94) order dated 28.6.2005 para 71 and 72. 17. We have heard the parties on this issue and perused the materials placed before us including the case law relied upon by the parties. We find that the issue raised by the revenue in this appeal stands covered in favour of the…

The Commissioner of Income Tax vs. M/S Amco Power Systems Ltd

ITA/765/2009HC Karnataka07 Oct 2015

Bench: B.MANOHAR,VINEET SARAN

Section 260

…ayment of Rs.1,00,000/- in the assessment year under consideration though the actual payment was spread over five years. The judgment of the Division Bench also followed a decision of the Supreme Court in Kedarnath Jute Mfg. Co. Ltd. Vs. CIT (1971) 82 ITR 363 (SC) in holding that the issue as to whether the assessee is entitled to a deduction will depend on the provisions under which it is claimed and not on the existence or 39 absence of entries in the books of account which would not be conclusive or decisive. In the present case, there is a finding that though the payment of the cons…

The Commissioner of Income Tax vs. M/S Amco Power Systems Ltd

ITA/769/2009HC Karnataka07 Oct 2015

Bench: B.MANOHAR,VINEET SARAN

Section 260

…ayment of Rs.1,00,000/- in the assessment year under consideration though the actual payment was spread over five years. The judgment of the Division Bench also followed a decision of the Supreme Court in Kedarnath Jute Mfg. Co. Ltd. Vs. CIT (1971) 82 ITR 363 (SC) in holding that the issue as to whether the assessee is entitled to a deduction will depend on the provisions under which it is claimed and not on the existence or 39 absence of entries in the books of account which would not be conclusive or decisive. In the present case, there is a finding that though the payment of the cons…

The Commissioner of Income Tax vs. M/S Amco Power Systems Ltd

ITA/767/2009HC Karnataka07 Oct 2015

Bench: B.MANOHAR,VINEET SARAN

Section 260

…ayment of Rs.1,00,000/- in the assessment year under consideration though the actual payment was spread over five years. The judgment of the Division Bench also followed a decision of the Supreme Court in Kedarnath Jute Mfg. Co. Ltd. Vs. CIT (1971) 82 ITR 363 (SC) in holding that the issue as to whether the assessee is entitled to a deduction will depend on the provisions under which it is claimed and not on the existence or 39 absence of entries in the books of account which would not be conclusive or decisive. In the present case, there is a finding that though the payment of the cons…

The Commissioner of Income Tax vs. M/S Amco Power Systems Ltd

ITA/1046/2008HC Karnataka07 Oct 2015

Bench: B.MANOHAR,VINEET SARAN

Section 260

…ayment of Rs.1,00,000/- in the assessment year under consideration though the actual payment was spread over five years. The judgment of the Division Bench also followed a decision of the Supreme Court in Kedarnath Jute Mfg. Co. Ltd. Vs. CIT (1971) 82 ITR 363 (SC) in holding that the issue as to whether the assessee is entitled to a deduction will depend on the provisions under which it is claimed and not on the existence or 39 absence of entries in the books of account which would not be conclusive or decisive. In the present case, there is a finding that though the payment of the cons…

Sanyo India Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the assessee's appeal for Assessment Year 2007-08 is partly allowed

ITA 1195/BANG/2011[2007-08]Status: DisposedITAT Bangalore14 May 2015AY 2007-08

Bench: Shri N.V. Vasudevan & Shri Jason P. Boazi.T.(T.P) A. No.1195/Bang/2011 (Assessment Year : 2007-08) M/S. Sanyo India Private Limited, Vs. Dy. Commissioner Of Income Tax, No.45, 2Nd Floor, Jublee Building, Circle 12(3), Bangalore. Museum Road, Bangalore-560 025 Pan Aajcs 0730M Appellant Respondent.

For Appellant: Shri Chavali Narayan, C.AFor Respondent: Shri Farhat Hussain Qureshi, CIT(D.R)
Section 143(2)Section 143(3)Section 144C(1)Section 144C(5)Section 92C

…expenditure by deferring the allowability of the said expense over a period of three years. 2. The learned A.O. has placed incorrect and inappropriate reliance on the judicial precedent in the case of Kedarnath Jute Mfg. Co. Ltd. Vs. CIT (Central), Calcutta (82 ITR 363) (SC) without considering the facts of the case. 3. The learned A.O. has erred in law, by carrying out an arbitrary adjustment on account of advertisement and publicity expense by deferring the expense over a period of three years. 4. The learned A.O. has erred in law and on facts by not appreciating the nature of advertisement and publicity expen…

Commissioner of Income Tax Delhi II vs. Medicare Investments Ltd

ITA - 840 / 2008HC Delhi20 Mar 2015

…assessment under the Act. The only consideration for the revenue at that point of time is as to what was the true legal effect of the transaction. Reference was made to several decisions in Kedarnath Jute Mfg. Co. Ltd. v. Commissioner of Income Tax [1971] 82 ITR 363 (SC) ; Delhi Stock Exchange Association Ltd. v. Commissioner of Income Tax [1961] 41 ITR 495 (SC) and First Addl. ITO v. T. M. K. Abdul Kassim [1962] 46 ITR 149 (SC). It was therefore 2015:DHC:2664-DB ITA Nos.25/01, 840/08 & 26/01 Page 11 observed that even if the return filed by the assessee did not set out the proper position that cann…

Commissioner of Income Tax vs. M/S. Abhinandan Investment Ltd

ITA/26/2001HC Delhi20 Mar 2015

…assessment under the Act. The only consideration for the revenue at that point of time is as to what was the true legal effect of the transaction. Reference was made to several decisions in Kedarnath Jute Mfg. Co. Ltd. v. Commissioner of Income Tax [1971] 82 ITR 363 (SC) ; Delhi Stock Exchange Association Ltd. v. Commissioner of Income Tax [1961] 41 ITR 495 (SC) and First Addl. ITO v. T. M. K. Abdul Kassim [1962] 46 ITR 149 (SC). It was therefore 2015:DHC:2664-DB ITA Nos.25/01, 840/08 & 26/01 Page 11 observed that even if the return filed by the assessee did not set out the proper position that cann…

Commissioner of Income Tax vs. M/S. Abhinandan Investment Ltd

ITA/25/2001HC Delhi20 Mar 2015

…assessment under the Act. The only consideration for the revenue at that point of time is as to what was the true legal effect of the transaction. Reference was made to several decisions in Kedarnath Jute Mfg. Co. Ltd. v. Commissioner of Income Tax [1971] 82 ITR 363 (SC) ; Delhi Stock Exchange Association Ltd. v. Commissioner of Income Tax [1961] 41 ITR 495 (SC) and First Addl. ITO v. T. M. K. Abdul Kassim [1962] 46 ITR 149 (SC). It was therefore 2015:DHC:2664-DB ITA Nos.25/01, 840/08 & 26/01 Page 11 observed that even if the return filed by the assessee did not set out the proper position that cann…

Commissioner of Income Tax vs. M/S. Abhinandan Investment Ltd

ITA/840/2008HC Delhi20 Mar 2015

…assessment under the Act. The only consideration for the revenue at that point of time is as to what was the true legal effect of the transaction. Reference was made to several decisions in Kedarnath Jute Mfg. Co. Ltd. v. Commissioner of Income Tax [1971] 82 ITR 363 (SC) ; Delhi Stock Exchange Association Ltd. v. Commissioner of Income Tax [1961] 41 ITR 495 (SC) and First Addl. ITO v. T. M. K. Abdul Kassim [1962] 46 ITR 149 (SC). It was therefore 2015:DHC:2664-DB ITA Nos.25/01, 840/08 & 26/01 Page 11 observed that even if the return filed by the assessee did not set out the proper position that cann…

Oswal Agro Mills Ltd vs. Commissioner of Income Tax

The appeal is partly allowed

ITA/42/2000HC Delhi12 Jan 2015
Section 43B

…ls Ltd. vs. Commissioner of Income Tax ITA No.41/2000 decided on 07.02.2014. This Court had discussed the relevant case law on the subject and especially relied upon the judgment of the Supreme Court in Kedarnath Jute Manufacturing Co. Ltd. v. CIT: (1971)82 ITR 363 (SC), Calcutta Co. ltd. v. CIT: (1959) 37 ITR 1 (SC) and the judgment reported as Bharat Earth Movers v. CIT: (2000) 245 ITR 428 (SC). It is held that the amount is not an ascertained liability. The Court held that such liability is contingent upon an uncertain fact and, therefore, deduction claimed by the assessee was not permissible in vi…

Commissioner of Income Tax vs. M/S Vodafone Essar South Ltd

ITA/594/2014HC Delhi29 Oct 2014

…everal provisions in the Act like Section 43B which provide for different treatment than required under the provisions of the Companies Act or the accounting principles or standards. Reference can be made to Kedarnath Jute Mfg. Co. Ltd. Versus CIT, (1971) 82 ITR 363 where it was held, “… We are wholly unable to appreciate the suggestion that if an assessee under some misapprehension or mistake fails to make an entry in the books of account and although under the law, a 2014:DHC:5567-DB ITA No. 594/2014…

Commissioner of Income Tax-III vs. Sbi Cards & Payment Services Pvt. Ltd

ITA/603/2014HC Delhi29 Sept 2014

Bench: The Tribunal, Relating To The Said Assessment Year. 2. For The Sake Of Convenience, We First Take Up Ita No.603/2014. The 2014:Dhc:5128-Db

Section 260ASection 271(1)

…everal provisions in the Act like Section 43B which provide for different treatment than required under the provisions of the Companies Act or the accounting principles or standards. Reference can be made to Kedarnath Jute Mfg. Co. Ltd. versus CIT, (1971) 82 ITR 363 where it was held, “… We are wholly unable to appreciate the suggestion that if an assessee under some misapprehension or mistake fails to make an entry in the books of account and although under the law, a deduction must be allowed by the Income Tax Officer, the assessee will lose the right of claiming or will be debarred from being allowed…

Oswal Agro Mills Ltd vs. Commissioner of Income Tax

The appeal stands disposed of with no order as to

ITA - 41 / 2000HC Delhi07 Feb 2014
For Appellant: Mr C.S. Aggarwal, Sr. Advocate withFor Respondent: Mr Sanjeev Sabharwal, Sr. Standing Counsel
Section 260A(1)Section 43B

…espective of the fact that the importer/supplier has challenged the levy of additional custom duty and the amount is not quantified. In support of this contention, the appellant has relied on decisions in Kedarnath Jute Manufacturing Co. Ltd. v. CIT: (1971)82 ITR 363 (SC), Calcutta Co. ltd. v. CIT: (1959) 37 ITR 1 (SC), ACIT v. Rattan Chand Kapoor: (1984) 149 ITR 1 (Del.), CIT v. Kwality Ice Cream: (2008) 304 ITR 384 (Del.) and Bharat Earth Movers v. CIT: (2000) 245 ITR 428 (SC). 16. It was submitted that since the subject liability was in the nature of a trading liability which had accrued, the same c…

Oswal Agro Mills Ltd vs. Commissioner of Income Tax

The appeal stands disposed of with no order as to

ITA/41/2000HC Delhi07 Feb 2014
For Appellant: Mr C.S. Aggarwal, Sr. Advocate withFor Respondent: Mr Sanjeev Sabharwal, Sr. Standing Counsel
Section 260A(1)Section 43B

…espective of the fact that the importer/supplier has challenged the levy of additional custom duty and the amount is not quantified. In support of this contention, the appellant has relied on decisions in Kedarnath Jute Manufacturing Co. Ltd. v. CIT: (1971)82 ITR 363 (SC), Calcutta Co. ltd. v. CIT: (1959) 37 ITR 1 (SC), ACIT v. Rattan Chand Kapoor: (1984) 149 ITR 1 (Del.), CIT v. Kwality Ice Cream: (2008) 304 ITR 384 (Del.) and Bharat Earth Movers v. CIT: (2000) 245 ITR 428 (SC). 16. It was submitted that since the subject liability was in the nature of a trading liability which had accrued, the same c…

Commissioner of Income Tax-V vs. Sri S.Venkat Reddy, (PAN ALAPS4009A)

ITTA/501/2013HC Telangana24 Oct 2013

Commissioner of Incometa Viz vs. M/S Rajam Extractions Pvt

ITTA/42/2000HC Telangana01 Aug 2012

Bench: GODA RAGHURAM,M.S.RAMACHANDRA RAO

Commissioner of Income Tax vs. Sri. B. Venkatesam

The appeal stands disposed of with no order as to

ITTA/41/2000HC Telangana01 Dec 2011
For Appellant: Mr C.S. Aggarwal, Sr. Advocate withFor Respondent: Mr Sanjeev Sabharwal, Sr. Standing Counsel
Section 260A(1)Section 43B

…espective of the fact that the importer/supplier has challenged the levy of additional custom duty and the amount is not quantified. In support of this contention, the appellant has relied on decisions in Kedarnath Jute Manufacturing Co. Ltd. v. CIT: (1971)82 ITR 363 (SC), Calcutta Co. ltd. v. CIT: (1959) 37 ITR 1 (SC), ACIT v. Rattan Chand Kapoor: (1984) 149 ITR 1 (Del.), CIT v. Kwality Ice Cream: (2008) 304 ITR 384 (Del.) and Bharat Earth Movers v. CIT: (2000) 245 ITR 428 (SC). 16. It was submitted that since the subject liability was in the nature of a trading liability which had accrued, the same c…

Commissioner of Income Tax vs. M/S Asahi India Safety Glass Ltd

Appeals are dismissed

ITA/1110/2006HC Delhi04 Nov 2011
For Appellant: Mr Sanjeev Rajpal, AdvocateFor Respondent: Mr M.S. Syali, Sr. Advocate with Mr O.P. Sapra, Ms Mahua Kalra & Ms

…see cannot be denied a claim for deduction which is otherwise tenable in law on the ground that the assessee had treated it differently in its books. The observation of the Supreme court in the case of Kedar Nath Jute Manufacturing Co. Ltd. vs CIT (1971) 82 ITR 363 puts this beyond doubt. The relevant observations of the Supreme court on this aspect of the matter are extracted hereinbelow: “……Whether the assessee is entitled to a particular deduction or not will depend on the provision of law relating thereto and not on the view which the assessee might take of his rights nor can the existence or abse…