Lachminarayan Madan Lal v. CIT

Sitaram Chemicals, Ambernath vs. DCIT Cir 2, Kalyan

In the result, this appeal by the assessee stands partly allowed

Bench: Shri Shamim Yahya

…urchase invoices does not mean that the genuineness is proved, but the overall circumstances requires to proof that the expenses are genuine. Therefore, in principle the judgment of Hon'ble SC is relied upon i.e. in the case of Lachminarayan Madan Lal vs. CIT 86 ITR 439(SC), wherein held that even if there is an agreement between assessee and agents for payment, that does not bind Income tax officer to allow the payment was made exclusively and wholly for the purposes of the business. In the case of the appellant, expenditure (purchase) claimed to have been incurred; initial burden is on the appellant to prove th…

Shyam K Gyanchandani, Ulhasnagar vs. ACIT Cir (2), Kalyan

In the result, this appeal by the assessee stands partly allowed

Bench: Shri Shamim Yahya

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ ‘SMC’, मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “SMC”, MUMBAI Before Shri Shamim Yahya, Accountant Member ITA No.6369/Mum/2016 : Asst.Year 2009-2010 Shri Shyam K.Gyanchandani Asst.Commissioner of Income-tax बनाम/ 402 Shree Ganpati Plaza Circle 2 Chopra Court, Ulhasnagar-421 003. Kalyan. Vs. PAN : AAZPG6917H. (अपीलाथ" /Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से /Appellant by : Shri Hari H.Dudani ""यथ" क" ओर से /Respondent by : Shri B.Satyanarayana Raju (Sr.DR) सुनवाई क" तार"ख / घोषणा क" तार"ख / Date of Hearing : 18.05.2017 Date of Pronouncement : 05.07.2017…

ITO WD 1(5), Kalyan vs. Gopal Ramshish Tripathi, Bhiwandi

In the result, the appeal for all three years, are PARTLY

Bench: Shri R.C.Sharma, Am

…hrough banking channels, justification for purchases made from hawala parties as genuine, sales made against such purchases, etc., I would like to place the reliance on finding of the Hon'ble Supreme Court, in the case of Lachminarayan Madan Lal v. CIT (1972) 86 ITR 439 (SC), wherein it is held that even if there is an agreement, between the assessee and its agents for payments of certain amounts as commission, assuming there was such payment, that does not bind the Income-tax Officer to hold that the payment was made exclusively and wholly for the purposes of the assessee's business. In this case, the Supreme Co…

ITO 10(2)(3), Mumbai vs. Astamed Healthcare (I P.Ltd, Mumbai

In the result this appeal by the revenue stands allowed for statistical purposes

Bench: Shri Shamim Yahya & Shri Ravish Sood

…g agents or payment of certain amounts does not bind the assessing officer to hold that the payment was made exclusively and wholly for the purposes of business. Reliance is placed on following Hon’ble Supreme Court decisions 1. Lakshmi Naryan Madanlal Vs CIT 86 ITR 439(SC), 2. Swadeshi cotton Mills Ltd Vs CIT 63 ITR 57(SC)” 9. We find that Ld. CIT-A has not at all addressed this aspect of assessing officer observation. Payment of service tax only is not conclusive satisfaction of AO’s, requirement. It is not the case that Ld. CIT-A himself verified that proper services were rendered by the concerned party to jus…

Asst CIT 24(2), Mumbai vs. Dinesh V. Bahirwani, Mumbai

Bench: Shri Sanjay Garg & Shri Ashwani Tanejaassessment Year: 2010-11 Dinesh V. Bahirwani, Dcit 20(2), Unit No.605, Business Suites बनाम/ Mumbai- 9 Ploot No.83, Vs. S.V. Rd, Santacruz(W) Mumbai-400054 (Appellant) (Revenue) P.A. No. Abrpb3559K Assessment Year: 2010-11 Acit 24(2) Dinesh V. Bahirwani, 612, Piramal Chambers, Unit No.605, Business बनाम/ Lalbaug, Suites 9 Ploot No.83, Vs. Mumbai-400012 S.V. Rd, Santacruz(W) Mumbai-400054 (Respondent) (Revenue) P.A. No. Abrpb3559K Appellant By Shri Vipul Shah (Ar) Shri B.S. Bist (Sr. Dr) Revenue By सुनवाई क" तार"ख/Date Of Hearing : 18/10/2016 18/10/2016 आदेश क" तार"ख /Date Of Order: आदेश / O R D E R

…cases in respect of expenditure in general (refer: Ram Bahadur Thakur Ltd. vs. CIT [2003] 261 ITR 390 (Ker); CIT vs. Navsari Cotton & Silk Mills [1982] 135 ITR 546 (Guj)), and commission expenditure in particular (refer: Lachminarayan Madan Lal vs. CIT [1972] 86 ITR 439 (SC); Lakshmiratan Cotton Mills Co. Ltd. vs. CIT [1969] 73 ITR 634 (SC)) are referred to draw home the point. The findings by the ld. CIT(A) are based on bald claims, de hors any material on record. Merely making general statements, without basis in any material on record, which has moved the ld. CIT(A), would not prove a claim. His taking cogniza…

Dinesh V Bahirwani, Mumbai vs. DCIT 20(2), Mumbai

Bench: Shri Sanjay Garg & Shri Ashwani Tanejaassessment Year: 2010-11 Dinesh V. Bahirwani, Dcit 20(2), Unit No.605, Business Suites बनाम/ Mumbai- 9 Ploot No.83, Vs. S.V. Rd, Santacruz(W) Mumbai-400054 (Appellant) (Revenue) P.A. No. Abrpb3559K Assessment Year: 2010-11 Acit 24(2) Dinesh V. Bahirwani, 612, Piramal Chambers, Unit No.605, Business बनाम/ Lalbaug, Suites 9 Ploot No.83, Vs. Mumbai-400012 S.V. Rd, Santacruz(W) Mumbai-400054 (Respondent) (Revenue) P.A. No. Abrpb3559K Appellant By Shri Vipul Shah (Ar) Shri B.S. Bist (Sr. Dr) Revenue By सुनवाई क" तार"ख/Date Of Hearing : 18/10/2016 18/10/2016 आदेश क" तार"ख /Date Of Order: आदेश / O R D E R

…cases in respect of expenditure in general (refer: Ram Bahadur Thakur Ltd. vs. CIT [2003] 261 ITR 390 (Ker); CIT vs. Navsari Cotton & Silk Mills [1982] 135 ITR 546 (Guj)), and commission expenditure in particular (refer: Lachminarayan Madan Lal vs. CIT [1972] 86 ITR 439 (SC); Lakshmiratan Cotton Mills Co. Ltd. vs. CIT [1969] 73 ITR 634 (SC)) are referred to draw home the point. The findings by the ld. CIT(A) are based on bald claims, de hors any material on record. Merely making general statements, without basis in any material on record, which has moved the ld. CIT(A), would not prove a claim. His taking cogniza…

Quantium Advisors P. Ltd, Mumbai vs. DCIT Cir 1(3), Mumbai

Appeal of the assessee is allowed

Bench: Shri G.S.Pannu & Shri Pawan Singhquantum Advisors Pvt. Ltd., 503, Regent Chamber, Nariman Point, Mumbai 400 021. Pan:Aaacq 0281C ... Appellant Vs.

…e was an agreement between assessee and QIEF is not determinative of the issue of allowability of expenditure under section 37(1) of the Act . By relying on the ratio of the judgment of the Hon'ble Supreme Court in the case of Lachminarayan Madan Lal Vs. CIT, 86 ITR 439(SC) he observed that it was open for the Revenue to examine the relevant factors and determine allowability of expenditure 5 under section 37(1) of the Act. According to him, the factors in the present case show that the amounts have not been laid out wholly and exclusively for the purpose of business, and he retained the disallowance, albeit on…

M/S. Stock Traders Pvt. Ltd., Mumbai vs. ACIT Cir 2(3), Mumbai

In the result, the appeal for the assessment year 1995-96 is dismissed

…nly invoices raised by PAG and the summary given for nature of so called services claimed to have rendered by PAG are not sufficient to prove that PAG was actually engaged in providing consultancy services to STPL. In the case of Laxminarayan Madanlal vs. CIT 86 ITR 439 the Apex Court has held that mere existence of an agreement to pay commission does not bind A.O to allow the deduction. The mere existence of an agreement between the assessee and its selling agent or payment of certain amounts as commission does not bind the ITO to hold that the payments were made exclusively and wholly for the purpose of the ass…

M/S. Stock Traders Pvt. Ltd., Mumbai vs. ACIT Cir 2(3), Mumbai

In the result, the appeal for the assessment year 1995-96 is dismissed

…nly invoices raised by PAG and the summary given for nature of so called services claimed to have rendered by PAG are not sufficient to prove that PAG was actually engaged in providing consultancy services to STPL. In the case of Laxminarayan Madanlal vs. CIT 86 ITR 439 the Apex Court has held that mere existence of an agreement to pay commission does not bind A.O to allow the deduction. The mere existence of an agreement between the assessee and its selling agent or payment of certain amounts as commission does not bind the ITO to hold that the payments were made exclusively and wholly for the purpose of the ass…

Kamlesh S. Mehta, Mumbai vs. ITO 21(2)(2), Mumbai

The appeal of the assessee is partly allowed for statistical purpose

Bench: The Ld. Assessing Officer & The Accounts Of The Assessee Are Audited One, Therefore, The Addition Is Purely On The Basis Guess Work. Our Attention Was Invited To Exhibit A (Pages 1 & 2) & Exhibit D Containing Ledger Of Transportation, Octroi & Staff Welfare Expenses.

…by the Assessing Officer. The ratio laid down by Hon’ble Andhra Pradesh High Court in Transport Corporation of India Ltd. 269 ITR 701 (AP), decision from a jurisdictional High Court in Ramanand Sagar vs DCIT 256 ITR 134 (Bom.) and also Laxmit Narayan Madanlal 86 ITR 439 (SC) from Hon’ble Apex Court supports our view. Identical ratio was laid down in Dalmia Jain & company Ltd. 33 ITR 294 (Pat.), Liberty Cinema 52 ITR 153 (Cal.) and Udaipur Mineral Development Syndicate Pvt. Ltd. 269 ITR 263 (Raj.). 8 Kamlesh S. Mehta 3.4. Section 28 of the Act deals with profit & gains of business or profession, whereas, section…