M.P. Financial Corporation v. CIT

165 ITR 765High Court1987#2616 most cited

What is M.P. Financial Corporation v. CIT authority for?

The expression 'expenditure' under Section 37(1) of the Income Tax Act can include an amount that is a 'loss' even if it has not been paid out by the assessee.

44

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2009 to 2026.

Also referred to as

M.P. Financial Corporation v. CIT · 165 ITR 765 · Section 37(1) · expenditure · loss · business expenditure · revenue expenditure · intangible assets · discount on debentures · amortisation

Sections most often in play

Section 37(1)Section 194HSection 271(1)(c)Section 35ABASection 35ABBSection 40(a)(ia)Section 143(3)Section 263

Issues it is cited on

section 35abbsection 194hintangible assetssection 30section 35section 201(1)profits and gains of business or professionsection 253section 32section 201section 40(a)section 40(a)(ia)

Judgments citing M.P. Financial Corporation v. CIT

Commissioner of Income Tax Delhi -IV vs. Govind Nagar Sugar Ltd

Appeals are allowed and orders passed by the Tribunal are set aside and the

ITA/1208/2008HC Delhi19 Nov 2010

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE SURESH KUMAR KAIT

Section 4Section 43B

…case of Commissioner of Income Tax Vs. Woodward Governor India (P) Ltd. [312 ITR 214]. The principle laid down would be relevant even for our purpose and therefore, we extract the same: “14. In the case of M.P. Financial Corporation v. CIT reported in 165 ITR 765 the Madhya Pradesh High Court has held that the expression "expenditure" as used in Section 37 may, in the circumstances of a particular case, cover an amount which is a "loss" even though the said amount has not gone out from the pocket of the assessee. This view of the Madhya Pradesh High Court has been approved by this Court in the case…

Deputy Commissioner of Income Tax vs. Curls & Curves India Ltd

ITA-1093/2008HC Delhi29 Oct 2010

…Ltd. [312 ITR 214], the Supreme Court, albeit, in other context, explained this concept. The principle laid down would be relevant even for our purpose and therefore, we extract the same: “14. In the case of M.P. Financial Corporation v. CIT reported in 165 ITR 765 the Madhya Pradesh High Court has held that the expression "expenditure" as used in Section 37 may, in the circumstances of a particular case, cover an amount which is a "loss" even though the said amount has not gone out from the pocket of the assessee. This view of the Madhya Pradesh High Court has been approved by this Court in the case…

Deputy Commissioner of Income Tax vs. Curls & Curves India Ltd

ITA - 1093 / 2008HC Delhi29 Oct 2010

…Ltd. [312 ITR 214], the Supreme Court, albeit, in other context, explained this concept. The principle laid down would be relevant even for our purpose and therefore, we extract the same: “14. In the case of M.P. Financial Corporation v. CIT reported in 165 ITR 765 the Madhya Pradesh High Court has held that the expression "expenditure" as used in Section 37 may, in the circumstances of a particular case, cover an amount which is a "loss" even though the said amount has not gone out from the pocket of the assessee. This view of the Madhya Pradesh High Court has been approved by this Court in the case…

Commissioner of Income Tax, Delhi vs. M/S Woodward Governor India P. Ltd

C.A. No.-002206-002206 - 2009Supreme Court08 Apr 2009
Section 143Section 143(1)(a)Section 143(2)Section 37(1)Section 43(1)

…as used in Section 37 may, in 11 the circumstances of a particular case, cover an amount which is really a “loss” even though the said amount has not gone out from the pocket of the assessee. 14. In the case of M.P. Financial Corporation v. CIT reported in 165 ITR 765 the Madhya Pradesh High Court has held that the expression “expenditure” as used in Section 37 may, in the circumstances of a particular case, cover an amount which is a “loss” even though the said amount has not gone out from the pocket of the assessee. This view of the Madhya Pradesh High Court has been approved by this Court in the case of Mad…