Keshavji Ravji and Co. v. CIT

82 ITR 913Supreme Court of India1971#431 most cited
209

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2000 to 2025.

Also referred to as

Keshavji Ravji and Co. v. CIT · Section 269SS penalty · Section 269T penalty · Section 271D penalty · Section 271E penalty · cash transactions penalty · literal interpretation tax law · legislative intent tax · income deemed assessee's · definition of relative

Also reported as

49 Taxmann 87

Sections most often in play

Section 143(3)Section 153ASection 131(1A)Section 132ASection 269SSSection 269TSection 271DSection 271E

Issues it is cited on

section 5(8)closely held companyprincipal director general of income-taxaccumulated profitssection 292bsection 292bbsection 260section 260asection 282section 292section 119section 29

Judgments citing Keshavji Ravji and Co. v. CIT

Ultimate Flexipack Ltd, New Delhi vs. DCIT, New Delhi

ITA 901/DEL/2009[2005-06]Status: DisposedITAT Delhi20 Mar 2019AY 2005-06

Bench: Shri R. K. Panda & Ms Suchitra Kamble & Ultimate Flexipack Ltd. Vs Dcit 305, 3Rd Floor, Bhanot Corner, Central Circle-18 Pamposh Enclave, Greater Kailash-1 Ara Centre,E-2, Jhandewalan New Delhi Aaacu6565D New Delhi (Appellant) (Respondent) Dcit Vs Ultimate Flexipack Ltd. Central Circle-18 305, 3Rd Floor, Bhanot Corner, Ara Centre, E-2, Jhandewalan Pamposh Enclave, Greater New Delhi Kailash-1 New Delhi Aaacu6565D (Appellant) (Respondent)

Section 115JSection 80Section 80I

…wing judgments wherein the principle of netting has been approved: i) CIT vs. Nirma Ltd. 367 ITR 12 (Guj) ii) ACG Associated Capsules Pvt. Ltd. vs. CIT 343 ITR 89 (SC) iii) CIT vs. Sri Ram Honda Power Equip 289 ITR 475 (Del) iv) Keshavji Ravji and Co. vs. CIT 183 ITR 1 (SC) The Ld. AR further submitted that identical additional grounds were also raised before the Tribunal in A.Y. 2004-05 and the principle of netting has been accepted by the Tribunal vide its order dated 12.07.2018 in ITA No. 795/Del/2003. 8. As regards to the merit of the case i.e. Ground No. 1 and 2 relating to depreciation amounting to Rs. 11,…

DCIT, New Delhi vs. M/S. Ultimate Flexible Ltd, New Delhi

ITA 2782/DEL/2009[2006-07]Status: DisposedITAT Delhi20 Mar 2019AY 2006-07

Bench: Shri R. K. Panda & Ms Suchitra Kamble & Ultimate Flexipack Ltd. Vs Dcit 305, 3Rd Floor, Bhanot Corner, Central Circle-18 Pamposh Enclave, Greater Kailash-1 Ara Centre,E-2, Jhandewalan New Delhi Aaacu6565D New Delhi (Appellant) (Respondent) Dcit Vs Ultimate Flexipack Ltd. Central Circle-18 305, 3Rd Floor, Bhanot Corner, Ara Centre, E-2, Jhandewalan Pamposh Enclave, Greater New Delhi Kailash-1 New Delhi Aaacu6565D (Appellant) (Respondent)

Section 115JSection 80Section 80I

…wing judgments wherein the principle of netting has been approved: i) CIT vs. Nirma Ltd. 367 ITR 12 (Guj) ii) ACG Associated Capsules Pvt. Ltd. vs. CIT 343 ITR 89 (SC) iii) CIT vs. Sri Ram Honda Power Equip 289 ITR 475 (Del) iv) Keshavji Ravji and Co. vs. CIT 183 ITR 1 (SC) The Ld. AR further submitted that identical additional grounds were also raised before the Tribunal in A.Y. 2004-05 and the principle of netting has been accepted by the Tribunal vide its order dated 12.07.2018 in ITA No. 795/Del/2003. 8. As regards to the merit of the case i.e. Ground No. 1 and 2 relating to depreciation amounting to Rs. 11,…

Ultimate Flexipack Ltd., New Delhi vs. DCIT, New Delhi

ITA 2199/DEL/2009[2006-07]Status: DisposedITAT Delhi20 Mar 2019AY 2006-07

Bench: Shri R. K. Panda & Ms Suchitra Kamble & Ultimate Flexipack Ltd. Vs Dcit 305, 3Rd Floor, Bhanot Corner, Central Circle-18 Pamposh Enclave, Greater Kailash-1 Ara Centre,E-2, Jhandewalan New Delhi Aaacu6565D New Delhi (Appellant) (Respondent) Dcit Vs Ultimate Flexipack Ltd. Central Circle-18 305, 3Rd Floor, Bhanot Corner, Ara Centre, E-2, Jhandewalan Pamposh Enclave, Greater New Delhi Kailash-1 New Delhi Aaacu6565D (Appellant) (Respondent)

Section 115JSection 80Section 80I

…wing judgments wherein the principle of netting has been approved: i) CIT vs. Nirma Ltd. 367 ITR 12 (Guj) ii) ACG Associated Capsules Pvt. Ltd. vs. CIT 343 ITR 89 (SC) iii) CIT vs. Sri Ram Honda Power Equip 289 ITR 475 (Del) iv) Keshavji Ravji and Co. vs. CIT 183 ITR 1 (SC) The Ld. AR further submitted that identical additional grounds were also raised before the Tribunal in A.Y. 2004-05 and the principle of netting has been accepted by the Tribunal vide its order dated 12.07.2018 in ITA No. 795/Del/2003. 8. As regards to the merit of the case i.e. Ground No. 1 and 2 relating to depreciation amounting to Rs. 11,…

The DCIT(Exemption), Bhopal vs. M/S. Indore Education and Service Society, Indore

In the result, the appeal is allowed

ITA 63/IND/2017[2011-12]Status: DisposedITAT Indore15 Mar 2019AY 2011-12

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2012-13

Section 10Section 11Section 143(3)Section 20

…d has held that the Circulars issued by CBDT are binding in nature on the tax authorities, even if the direction S given by CBDT are at variance with the provisions of law. The circulars in effect, are as good as law. To quote: Ellcrman Lines I t d . vs. CIT (82 ITR 913), K. P. Varghese vs. ITO (13 l ITR 597), Bank vs. CIT (237 ITR 8S9), CIT vs. Anjurn M. H. Ghaswnla and Spentex ndustries Ltd. vs. CCE (Civil app. No.- l978 of 2007) 4.15 In the light of above discussion let us revisit thc dccision m Goetze (India) Ltd.: Article 265 of the Constitution empowers the Governmenl to levy and collect tax that it can th…

ACIT, New Delhi vs. M/S. Spice Jet Ltd., Gurgaon

The appeal of the department is dismissed

ITA 6103/DEL/2015[2012-13 (F.Y. 2011-12)]Status: DisposedITAT Delhi28 Feb 2019

Bench: Shri G.D.Agrawal & Shri Sudhanshu Srivastava

For Appellant: Sh. Tarundeep Singh, AdvFor Respondent: Ms. Deepika Mittal, CIT(DR)
Section 194HSection 194JSection 201Section 201(1)

…efficient management of work of assessment. However, these are not meant for contradicting or nullifying any provision of the statute. Relying upon its earlier judgement comprising of three judges in the case of Keshavji Ravji& Co. v. CIT [1990] 49 Taxman 87/183 ITR 1 (SC), it was inter-alia observed that Board cannot pre-empt judicial interpretation and the scope and ambit of a provision of the Act. Also, a circular cannot impose on the taxpayer a burden higher than what the Act itself on a true interpretation, envisages. The task of interpretation of the law is exclusively the domain of the Courts. However, th…

Shri Ashokkumar Khimraj, Ahmedabad vs. The Income Tax Officer, Ward-3(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1247/AHD/2015[2006-07]Status: DisposedITAT Ahmedabad01 Jan 2019AY 2006-07

Bench: Shri Waseem Ahmed & Smt Madhumita Royआयकर अपील सं./I.T.A. No. 1247/Ahd/2015 ("नधा"रण वष" / Assessment Year : 2006-07) Shri Ashokkumar Khimraj Ito, बनाम/ Prop. Ridhi Siddhi Ward – 3(1), Vs. Enterprises, 21, Shitalkunj Ahmedabad. Society, Rambaug Road, Ahmedabad. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Afdpk 6404 N .. (अपीलाथ"/Appellant) (""यथ" / Respondent) Shri Parin Shah, A.R. अपीलाथ" ओर से/ Appellant By : Shri Vinod Talwani, Sr. D.R. ""यथ" क" ओर से/Respondent By:

For Appellant: Shri Vinod Talwani, Sr. D.RFor Respondent: 01/11/2018

…rchase should be liable to tax under the head capital gain. 8.3 We also note that the benevolent circulars issued by the CBDT are binding on the Tribunal as held by the judgment of Hon’ble Supreme Court in the case of Keshavji Ravji & Co. Vs. CIT reported in 183 ITR 1 wherein it was observed as under : The task of interpretation of the laws is the exclusive domain of the courts. However, - this is what Shri Ramachandran really has in mind - circulars beneficial to the assessees and which tone down the rigour of the law issued in exercise of the statutory power under section 119 of the Act or under corresponding…

Kamla Methi, New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal filed by the assessee stand allowed for statistical purposes

ITA 5564/DEL/2015[2011-12]Status: DisposedITAT Delhi25 Oct 2018AY 2011-12

Bench: Shri H. S. Sidhu & Shri L.P. Sahu

For Appellant: Sh. Rajan Bhatia, AdvFor Respondent: Smt. Ranu Mukharjee, Sr. DR

…ntaining the copy of CBDT Circular No. 6/2016 dated 29th February, 2016 on the issue of taxability of surplus on sale of shares and securities – Capital Gains or Business Income – Instructions in order to reduce litigation – reg.; copy of decision reported 183 ITR 1 (SC) in the case of Keshavji Ravji & Co. Vs. CIT; 400 ITR 0009 (SC) in the case of Director Income Tax vs. SRMB Dairy Farming Pvt. Ltd; 130 ITR 471 in the case of CWT(a) vs. Gammon India (P) Ltd.; 178 ITR 481 (MP) in the case of Jaikishan Gopikishan & Sons & Ors. Vs. CIT; 196 ITR 216 (SC) in the case of CIT vs. Vasudeo vs. Dempo and submitted t…

Mahugun India Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, appeal of the Assessee is partly allowed

ITA 2817/DEL/2012[2003-04]Status: DisposedITAT Delhi09 Oct 2018AY 2003-04

Bench: Shri Sudhanshu Srivastava & Shri Anandee Nath Misshra

For Appellant: Dr. Rakesh Gupta, Adv. &For Respondent: Ms. Shefali Swaroop, CIT (DR)
Section 132Section 139Section 142Section 143(1)Section 143(2)Section 153ASection 276DSection 37(1)Section 43Section 43B

…ned u/s 153A are plain and clear and there is no ambiguity. Therefore, the natural and ordinary meaning of the words should be adopted as held by the Hon’ble Apex Court in the following cases Taru Lata Shyam v/s. CIT 108 ITR 345. Keshavji Raoji & Co. v/s. CIT 183 ITR 1: Gum Devdutta VKSS Maryadit v/s. State of Maharashtra AIR 2001 SC 1980 and CIT v/s. Anjum M.H. Ghaswala 252 ITR (Constitution bench). It is the cardinal Rule of interpretation of statute that the words of the statute must be understood in their natural, ordinary or popular sense unless the language of the statute is ambiguous 183 ITR 1 SC (SUPRA).…

M/S. Satelite Television Asian Region Ltd., Mumbai vs. DDIT (Int. I.T) 2(1), Mumbai

In the result, all the appeals by the assessee and the Revenue are partly

ITA 6604/MUM/2004[2001-2002]Status: DisposedITAT Mumbai05 Oct 2018AY 2001-2002

Bench: Shri Shamim Yahya, Am & Shri Ram Lal Negi, Jm

Section 195Section 197Section 40Section 9Section 9(1)(i)

…the income by way of royalty payable by the Government or a resident or a non-resident shall be deemed to accrue or arise in India. The term 'royalty' has been defined in theExplanation 2 to section 9(1)(vi). In the case of Keshavji Ravji & Co. v. CIT [1990] 183 ITR 1/ 49 Taxman 87, the Supreme Court held that an Explanation, generally speaking, is intended to explain the meaning of certain phrases and expressions contained in the statutory provisions. There is no general theory as to the effect and intendment of an Explanation, except that the purpose and intendment are determined by its own words. An Explanati…

Amirali Akbarali Engineer, Mumbai vs. ACIT 24(1), Mumbai

The appeal of the assessee is partly allowed for

ITA 289/MUM/2017[2012-13]Status: DisposedITAT Mumbai01 Oct 2018AY 2012-13

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: 2012-13 Amirali Akbarali Engineer, Vs Acit, A/201, Senha Apna Ghar, Ward-24(1), Unit No.11, Piramal Chamber, Lalbaug, Swami Samarth Nagar, Mumbai Andheri (West), Mumbai-400053 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aacpe9331N

Section 143(2)Section 143(3)Section 54F

…Amirali Akbarali Engineer " Dr. Anand Basappa v. ITO [2004] 91 ITD 53 (Bang.) (para 6), " CIT v. Natu Hansraj [1976] 105 ITR 43 (Guj.) (para 6), " CIT v. T.N. Aravinda Reddy [1979] 120 ITR 46/ 2 Taxman 541 (SC) (para 6), " Keshavji Raoji & Co. v. CIT [1990] 183 ITR 1/ 49 Taxman 87 (SC) (para 7) and " B.B. Sarkar v. CIT [1981] 132 ITR 150/ 7 Taxman 239 (Cal.) (para 10). 2.3. It is further noted that Hon'ble jurisdictional High Court in CIT vs Raman Kumar Suri [2013] 29 taxmann.com 231 (Bombay)/[2013] 212 Taxman 411 (Bombay)/[2013] 255 CTR 257 (Bombay) held as under:- “This appeal by the revenue under Section…

Sci Forbes Ltd, Mumbai vs. ITO 5(3)(2), Mumbai

In the result, assessee’s appeal is dismissed

ITA 6348/MUM/2013[2010-11]Status: DisposedITAT Mumbai15 May 2018AY 2010-11

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2010-11 Shapoorji Pallonji Forbes Income Tax Officer-5(3)(2), Shipping Ltd. (Formerly Room No.526B बनाम/ Known As Sci Forbes Ltd.), Aayakar Bhavan, Vs. C/O- Kalyaniwalla & Mistry M.K. Road, Llp, Esplanade House, Mumbai-400020 02Nd Floor, Hazarimal Somani Marg, Fort, Mumbai-400001 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aakcs0662F

Section 115VSection 56

…eads Ltd., 12 taxmann.com 69; vi) Bharat Oman Refineries Ltd. v/s ITO, 52 taxmann.com 347; 7 Shapoorji Pallonji Forbes Shipping Ltd. (Formerly known as SCI Forbes Ltd.), vii) CIT v/s Indo Swiss Jewels Ltd., 284 ITR 389; viii) Keshavji Ravji and Co. v/s CIT, 183 ITR 1; ix) ACG Associated Capsules Pvt. Ltd. v/s CIT, 343 ITR 89; x) Liberty Footwear Co. v/s CIT, 383 ITR 195. 8. Learned Departmental Representative strongly relying upon the observations of the learned Commissioner (Appeals) and the Assessing Officer submitted, as per the TTS under Chapter–XII–G, only the income from operating qualifying ships are to…

DCIT, CC-II, Chandigarh vs. Smt. Priya Garg, Panchkula

In the result appeal filed by the Revenue is dismissed

ITA 989/CHANDI/2017[2009-10]Status: DisposedITAT Chandigarh11 May 2018AY 2009-10

Bench: Smt. Diva Singh & Ms. Annapurna Guptaassessment Year: 2009-10 The Dy.Cit Vs. Smt. Priya Garg, Central Circle-Ii H.No. 89,Sector-7 Chandigarh Panchkula

For Appellant: Sh. Ashwani KumarFor Respondent: Sh. Ashish Abrol
Section 132Section 139Section 153Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’B’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER Assessment Year: 2009-10 The Dy.CIT Vs. Smt. Priya Garg, Central Circle-II H.No. 89,Sector-7 Chandigarh Panchkula PAN No. AEBPG8990G (Appellant) (Respondent) Assessee By : Sh. Ashwani Kumar Revenue By : Sh. Ashish Abrol Date of hearing : 22/02/2018 Date of Pronouncement : 11/05/2018 ORDER PER ANNAPURNA GUPTA, A.M. The present appeal has been filed by the Revenue against the order of the Ld. CIT(A)-3, Gurgaon dt. 31/03/2017. 2. The Revenue in the above appeal i…

DCIT, Bangalore vs. M/S Google India Pvt. Ltd., Bangalore

In the result, assessee’s appeals IT(IT)A No

ITA 1299/BANG/2015[2010-11]Status: DisposedITAT Bangalore11 May 2018AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Rao

…en it executes instructions lying in it in passive state. Therefore. any consideration made for the use of process would_amount to royalty. Explanation 2 has to be read as part and parcel of section 9(1)(vi) of the Act. Keshavji Ravji and Co. v. CIT [1990] 183 ITR 1 (SC) applied. The second proviso to section 9(1)(vi) carves out an exception from the main section exempting lump sum payment made by a resident for the transfer of all or any rights (including the granting of a licence) in respect of computer software supplied by a non-resident manufacturer along with a computer or computer-based equipment under…

DCIT, CC-II, Chandigarh vs. M/S Dhg Marketing Pvt. Ltd., Chandigarh

In the result the appeal filed by the revenue is

ITA 990/CHANDI/2017[2010-11]Status: DisposedITAT Chandigarh09 May 2018AY 2010-11

Bench: Ms Diva Singh & Ms. Annapurna Guptathe D.C.I.T., Vs. M/S Dhg Marketing Pvt. Ltd., Central Circle-Ii, Sco 49-50, Sector 26, Chandigarh. Chandigarh. Pan: Aadcd1364Q (Appellant) (Respondent)

For Appellant: Shri Gulshan Raj, CIT DRFor Respondent: Shri Ashwani Kumar, CA
Section 132Section 139Section 143(2)Section 153ASection 68

…s the "Total Income" ix) Whether on the facts and circumstances of the case the CIT(A); right in not following the Hon'ble SC judgment on interpretation of statue in the case of Smt. Tarulata Shyam & Others vs. CIT (108 ITR 345), Keshavji Ravji And Co vd CIT (183 ITR 1). Padamsundara Rao (Deed.) & others vs State of Tamil Nadu 255 ITR 147, Prakash Nath Khanna & Others vs CIT 266 ITR 1, Institute of Charted Accountants of India vs. Price water House 93 Taxman 588? x) Whether on the facts and circumstances of the case the CIT(A) is right in not following the Hon'ble HC judgment on the issue of additions in search…

DCIT, CC-II, Chandigarh vs. Sh. R.K. Garg, Chandigarh

In the result, appeal filed by the Revenue is dismissed

ITA 1191/CHANDI/2017[2007-08]Status: DisposedITAT Chandigarh01 May 2018AY 2007-08

Bench: Smt. Diva Singh & Ms. Annapurna Guptaassessment Year: 2007-08

For Appellant: Sh. Ashwani KumarFor Respondent: Sh. Ashish Abrol
Section 139Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’B’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER Assessment Year: 2007-08 The DCIT Vs. Sh. R.K. Garg, Central Circle-II SCO 49-50, Sector-26 Chandigarh Chandigarh PAN No. ABYPG9179M (Appellant) (Respondent) Assessee By : Sh. Ashwani Kumar Revenue By : Sh. Ashish Abrol Date of hearing : 01/02/2018 Date of Pronouncement : 01/05/2018 ORDER PER ANNAPURNA GUPTA, A.M. The present appeal has been filed by the Revenue against the order of the Ld. CIT(A)-3, Gurgaon dt. 18/05/2017. 2. In the present appeal Revenue h…

Dy.Commissioner of Income Tax, Circle-16(2), Hyderabad vs. Maruti Securities Limited, Secundrabad

In the result, appeal filed by the Revenue is allowed for statistical purposes

ITA 1651/HYD/2017[2013-14]Status: DisposedITAT Hyderabad23 Mar 2018AY 2013-14

Bench: Smt. P.Madhavi Devi & Shri D.S. Sunder Singh

For Appellant: Shri K. Sai PrasadFor Respondent: Smt. N. Swapna, DR

…d that circulars issued by the Central Board of Direct Taxes under section 119 of the Act are binding on all officers and persons employed in the execution of the Act even if they deviate from the provisions of the Act. In Keshavji Ravji and Co. v. CIT [1990] 183 ITR 1, a Bench of three judges of this court has also taken the view that circulars beneficial to the assessee which tone down the rigiour of the law and are issued in exercise of the statutory powers under section 119 are binding on the authorities in the administration of the Act. The benefit of such circulars is admissible to the assessee even though…

Adarsh Kumar, New Delhi vs. DCIT, New Delhi

ITA 5096/DEL/2015[2010-11]Status: DisposedITAT Delhi15 Nov 2017AY 2010-11

Bench: Shri H.S. Sidhu & Shri L.P. Sahu

For Appellant: Sh. Amit Goel, & Nippun Mital, CAsFor Respondent: Sh. Ms. Rachna Singh, CIT(DR)
Section 132Section 132(1)Section 153C

…ovisions which are attracted while interpreting tax laws. The need of interpretation arises only when the words used in the statute are on their own term, ambivalent and do not manifest the intention of legislature. [Keshavji Ravji & Co. v/s. CIT - [(1990) 183 ITR 1 (SC)l. Similarly rule of interpretation would come into play only if there is doubt with regard to the express language used. [Pandian Chemicals Ltd. vis. CIT- [(2003) 262 ITR 278 (SC)l. Literal rule: Language of Statute should be read as it is : The first and the most elementary rule of construction is that it is to be assumed that the words…

Adarsh Kumar, New Delhi vs. DCIT, New Delhi

ITA 5095/DEL/2015[2009-10]Status: DisposedITAT Delhi15 Nov 2017AY 2009-10

Bench: Shri H.S. Sidhu & Shri L.P. Sahu

For Appellant: Sh. Amit Goel, & Nippun Mital, CAsFor Respondent: Sh. Ms. Rachna Singh, CIT(DR)
Section 132Section 132(1)Section 153C

…ovisions which are attracted while interpreting tax laws. The need of interpretation arises only when the words used in the statute are on their own term, ambivalent and do not manifest the intention of legislature. [Keshavji Ravji & Co. v/s. CIT - [(1990) 183 ITR 1 (SC)l. Similarly rule of interpretation would come into play only if there is doubt with regard to the express language used. [Pandian Chemicals Ltd. vis. CIT- [(2003) 262 ITR 278 (SC)l. Literal rule: Language of Statute should be read as it is : The first and the most elementary rule of construction is that it is to be assumed that the words…

ACIT, Chennai vs. M/S. Bhavani Distilleries & Chemicals Ltd., Chennai

In the result the Revenue’s appeal in ITA No

ITA 3055/CHNY/2016[2012-13]Status: DisposedITAT Chennai14 Nov 2017AY 2012-13

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

Section 40

…land. Reliance may be placed in the case of Navnit Lal C. Javeri v. K.K. Sen [56 ITR 198 (SC)]. Even if the directions contained in the circular issued by the CBDT deviate from the provisions of the Act, they are binding on the ITO [Ellerman Lines Ltd. v. CIT 82 ITR 913 (SC)] and K.P. Varghese v. ITO 131 ITR 597(SC)]. In view of the above, I am of the considered opinion that the facts of the appellant is covered by the circulars and communications issued by the Board. Further, the jurisdictional High Court has held that there is no distinction between premium on debenture and discount on debenture and the expendi…

JCIT (OSD), Chennai vs. Bhavani Distilleries & Chemicals Pvt Ltd., Chennai

In the result the Revenue’s appeal in ITA No

ITA 1571/CHNY/2016[2011-12]Status: DisposedITAT Chennai14 Nov 2017AY 2011-12

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

Section 40

…land. Reliance may be placed in the case of Navnit Lal C. Javeri v. K.K. Sen [56 ITR 198 (SC)]. Even if the directions contained in the circular issued by the CBDT deviate from the provisions of the Act, they are binding on the ITO [Ellerman Lines Ltd. v. CIT 82 ITR 913 (SC)] and K.P. Varghese v. ITO 131 ITR 597(SC)]. In view of the above, I am of the considered opinion that the facts of the appellant is covered by the circulars and communications issued by the Board. Further, the jurisdictional High Court has held that there is no distinction between premium on debenture and discount on debenture and the expendi…