Madras Industrial Investment Corporation Ltd. v. CIT

225 ITR 802Supreme Court of India1997#111 most cited

What is Madras Industrial Investment Corporation Ltd. v. CIT authority for?

Expenditure that provides an enduring benefit should be amortized over its useful life, not allowed as a deduction in a single year, to prevent a distorted picture of profits. Specifically, premium paid on debentures for their issue should be amortized on a straight-line method over the life of the debentures.

568

judgments rely on this decision, according to BharatTax’s citation analysis of 367,164 Indian tax judgments — from 2008 to 2026.

Also referred to as

Madras Industrial Investment Corporation Ltd. v. CIT · 225 ITR 802 · SC · enduring benefit · amortisation · section 37(1) · revenue expenditure · capital expenditure · premium on debentures · straight line method · matching principle

Sections most often in play

Section 143(3)Section 37(1)Section 153ASection 147Section 153CSection 132Section 14ASection 263
Read the full judgment

Issues it is cited on

enduring benefitsection 32(1)revenue expenditureintangible assetssection 32capital expendituresection 35commercial expediencysection 30book profitsamalgamationmercantile system of accounting

Judgments citing Madras Industrial Investment Corporation Ltd. v. CIT

Assistant Commissioner of Income Tax, Nagpur vs. M/S. Bilt Graphic Paper Products Limited, Gurgaon

In the result, the appeal of the Revenue is dismissed

ITA 213/NAG/2017[2011-12]Status: DisposedITAT Nagpur28 Jun 2022AY 2011-12

Bench: Shri Sandeep Gosain, Jm & Shri Arun Khodpia, Am Assessment Year: 2011-12 The Acit Vs. M/S.Bilt Graphic Paper Products Ltd. Circle-5 First India Place, Tower ‘C’, Mehrauli – Gurgaon Nagpur Road, Gurgaon-Haryana 122 022 Pan No.:Aadcb 2230 M Appellant Respondent Assessee By: Shri K.P. Dewani Adv. Revenue By :Shri Piyush Kolhe (Cit-Dr) Date Of Hearing: 28/04/2022 Date Of Pronouncement: 28 / 06 /2022 Order Per: Sandeep Gosain, J.M. This Is An Appeal By Revenue Against Order Of Learned Commissioner Of Income Tax (Appeals)-4, Nagpur For Assessment Year 2011-12 Dated 30.03.2017 In Appeal No Cit(A)-4/59/15-16. Grounds Of Appeal Of Revenue For Assessment Year 2011-12 Are As Under :

For Appellant: Shri K.P. Dewani AdvFor Respondent: Shri Piyush Kolhe (CIT-DR)
Section 115JSection 143(3)Section 40A(9)

…ure incurred by appellant has been spread over the period for which the debenture have been issued. The aforesaid treatment in the accounts is in line with the decision of Hon'ble Apex Court in case of Madras Industrial Investment Corporation Ltd. reported at 225 ITR 802 (SC). In view of above claim of appellant as regard to amortization of expenditure incurred over the tenure of debenture cannot be faulted. Thus the addition made by A.O in case of appellant in unjustified and is therefore be directed to be deleted. The ground of appeal of the appellant is allowed.’’ 14.3 The facts and circumstances for the year…

Asstt. CIT, Cir- 7, Nagpur vs. M/S. Newquest Corporation Ltd., Chandrapur

ITA 328/NAG/2014[2008-09]Status: DisposedITAT Nagpur28 Jun 2022AY 2008-09

Bench: Shri Sandeep Gosain, Jm & Shri Arun Khodpia, Am Assessment Year: 2008-2009 The Acit Vs. M/S.Newquest Corporation Ltd. Circle-7, (Now Known As M/S. Avantha Nagpur Holding Ltd. Ballalrpur Paper Mills P.O. Ballarpur, Distt. Chandrapur Pan No.:Aabcb 6134 E Appellant Respondent

For Appellant: Shri K.P. Dewani (Adv.)For Respondent: ShriPiyushKolhe (CIT-DR)
Section 40

…he assesse submitted that assessee has claimed deduction in respect of premium accrued for the year under consideration. The claim of the assessee is in terms of law laid down by Apex Court in the case of Maderas Industrial Investment Corporation Ltd. vs CIT, 225 ITR 802 wherein it is concluded by the Hon’ble Apex Court that Discount on debenture is revenue expenditure allowable proportionately over the life of the debentures’’. The ld. of the assessee also relied on the decision of ITAT Hyderabad Bench in the case of Gati Limited (ITA No. 1467/Hyd/17 dated 20- 06-2018). The ld. AR further submitted that the conv…

Jt. CIT (OSD), CC-7(2), Mumbai vs. M/S. Andhra Expressway Ltd, Mumbai

In the result, both the appeals filed by the revenue stands dismissed

ITA 1588/MUM/2021[2014-15]Status: DisposedITAT Mumbai24 Jun 2022AY 2014-15

Bench: Shri G. S. Pannu & Shri Amit Shukla, Jm आयकरअपीलसं./ I.T.A. No. 1588/Mum/2021 (ननधधारणवर्ा / Assessment Year: 2014-15) & आयकरअपीलसं./ I.T.A. No. 1589/Mum/2021 (ननधधारणवर्ा / Assessment Year: 2013-14) Jcit (Osd), Cc-7(2), M/S Andhra Expressway Ltd. R. No. 655, Aayakar बनाम/ Ground Floor, Gammon Bhavan, M. K. Road, House, Veer Savarkar Vs. Mumbai-400020 Marg, Prabhadevi, Mumbai-400 025 स्थधयीलेखधसं./जीआइआरसं./ Pan No. Aadca3577E (अपीलधथी/Appellant) (प्रत्यथी / Respondent) : अपीलधथीकीओरसे/ Appellant By : Smt. Shailja Rai, Ld. Dr प्रत्यथीकीओरसे/Respondent By Shri Rakesh Joshi, Ld. Ar : सुनवधईकीतधरीख/ : 01.06.2022 Date Of Hearing घोर्णधकीतधरीख / : 24.06.2022 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeals Have Been Filed By The Revenue Against The Separate Impugned Order Of Even Date 29.06.2021, Passed By 2

For Appellant: Smt. Shailja Rai, Ld. DR
Section 143(3)Section 32Section 32(1)(ii)Section 80I

…e to recoup the expenditure incurred, the assessee cannot be treated as the "owner" of the property and cannot be allowed depreciation u/s 32(1 )(ii) of the Act. However, the CBDT has also held, following the law laid down in Madras Industrial Investment Corp 225 ITR 802 (SC), the entire cost of construction and development of the infrastructure facility has to be amortized evenly over the period of the concessionaire agreement and allowed as business expenditure u/s 37(1) of the Act after excluding the time taken for creation of such facility. 7.2.3. It is found that the CBDT's view with regard to the assessee n…

Dy. Commissioner of Income Tax, Circle-16(1), Hyderabad vs. Next Education India Private Limited, Hyderabad

In the result, appeal of the Revenue and cross appeal filed by the assessee are partly allowed

ITA 1413/HYD/2019[2016-17]Status: DisposedITAT Hyderabad08 Jun 2022AY 2016-17

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2016-17

For Appellant: Sri S. Raghunathan, ARFor Respondent: Sri T. Sunil Goutam,DR
Section 115JSection 142(1)Section 143(2)Section 143(3)

…r to section 40A(7) of the 1961 Act. We may add that the above principle of commercial accounting in Metal Box Co. of India Ltd.'s case (supra) also find place in the judgment of this Court in the case of Madras Industrial Investment Corpn. Ltd. v. CIT [1997] 225 ITR 802, in which the Court has explained the meaning of the word "expenditure" in section 37 of the 1961 Act. In other words, the principle enunciated in Metal Box Co. Page 8 of 17 ITA No 1413 of 2019 Next Education India (P) Ltd Hyderabad of India Ltd.'s case (supra) which has been reiterated in Shree Sajjan Mills Ltd.'s case (supra) (up to 1-4-1973…

Dy. Commissioner of Income Tax, Circle-2(2), Hyderabad vs. Guruvayoor Infrastructure Private Limited, Hyderabad

In the result, appeal of the revenue is partly allowed for statistical purposes in above terms

ITA 381/HYD/2020[2017-18]Status: DisposedITAT Hyderabad31 May 2022AY 2017-18

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Shri Venkatraman IyerFor Respondent: Shri Y.V.S.T. Sai
Section 143

…principle' on accounting wherein the expenses claimed are matched with the income earned by the assessee. The said CBDT Circular No.9j2014 has relied on the Hon'ble Supreme Court decision in the case of Madras Industrial Investment Corporation Limited vs CIT[225 ITR 8021 wherein the Hon'ble Supreme Court has allowed spreading over a liability over a number of years on the ground that there was continuing benefit to the company over a period. The Hon'ble Supreme Court has clearly brought out the principle that since there is continuing benefit to the business of the company over the entire period, the liability t…

Dy. Commissioner of Income Tax, Circle-2(2), Hyderabad vs. Guruvayoor Infrastructure Private Limited, Hyderabad

In the result, appeal of the revenue is partly allowed for statistical purposes in above terms

ITA 380/HYD/2020[2013-14]Status: DisposedITAT Hyderabad31 May 2022AY 2013-14

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Shri Venkatraman IyerFor Respondent: Shri Y.V.S.T. Sai
Section 143

…principle' on accounting wherein the expenses claimed are matched with the income earned by the assessee. The said CBDT Circular No.9j2014 has relied on the Hon'ble Supreme Court decision in the case of Madras Industrial Investment Corporation Limited vs CIT[225 ITR 8021 wherein the Hon'ble Supreme Court has allowed spreading over a liability over a number of years on the ground that there was continuing benefit to the company over a period. The Hon'ble Supreme Court has clearly brought out the principle that since there is continuing benefit to the business of the company over the entire period, the liability t…

Dy. Commissioner of Income Tax, Circle-2(2), Hyderabad vs. Guruvayoor Infrastructure Private Limited, Hyderabad

In the result, appeal of the revenue is partly allowed for statistical purposes in above terms

ITA 1641/HYD/2019[2016-17]Status: DisposedITAT Hyderabad31 May 2022AY 2016-17

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Shri Venkatraman IyerFor Respondent: Shri Y.V.S.T. Sai
Section 143

…principle' on accounting wherein the expenses claimed are matched with the income earned by the assessee. The said CBDT Circular No.9j2014 has relied on the Hon'ble Supreme Court decision in the case of Madras Industrial Investment Corporation Limited vs CIT[225 ITR 8021 wherein the Hon'ble Supreme Court has allowed spreading over a liability over a number of years on the ground that there was continuing benefit to the company over a period. The Hon'ble Supreme Court has clearly brought out the principle that since there is continuing benefit to the business of the company over the entire period, the liability t…

Dy. Commissioner of Income Tax, Circle-2(2), Hyderabad vs. Guruvayoor Infrastructure Privat Limited, Hyderabad

In the result, appeal of the revenue is partly allowed for statistical purposes in above terms

ITA 1640/HYD/2019[2015-16]Status: DisposedITAT Hyderabad31 May 2022AY 2015-16

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Shri Venkatraman IyerFor Respondent: Shri Y.V.S.T. Sai
Section 143

…principle' on accounting wherein the expenses claimed are matched with the income earned by the assessee. The said CBDT Circular No.9j2014 has relied on the Hon'ble Supreme Court decision in the case of Madras Industrial Investment Corporation Limited vs CIT[225 ITR 8021 wherein the Hon'ble Supreme Court has allowed spreading over a liability over a number of years on the ground that there was continuing benefit to the company over a period. The Hon'ble Supreme Court has clearly brought out the principle that since there is continuing benefit to the business of the company over the entire period, the liability t…

Dy. Commissioner of Income Tax, Circle-2(2), Hyderabad vs. Guruvayoor Infrastructure Private Limited, Hyderabad

In the result, appeal of the revenue is partly allowed for statistical purposes in above terms

ITA 1639/HYD/2019[2014-15]Status: DisposedITAT Hyderabad31 May 2022AY 2014-15

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Shri Venkatraman IyerFor Respondent: Shri Y.V.S.T. Sai
Section 143

…principle' on accounting wherein the expenses claimed are matched with the income earned by the assessee. The said CBDT Circular No.9j2014 has relied on the Hon'ble Supreme Court decision in the case of Madras Industrial Investment Corporation Limited vs CIT[225 ITR 8021 wherein the Hon'ble Supreme Court has allowed spreading over a liability over a number of years on the ground that there was continuing benefit to the company over a period. The Hon'ble Supreme Court has clearly brought out the principle that since there is continuing benefit to the business of the company over the entire period, the liability t…

Dy. Commissioner of Income Tax, Central Circle-3(2), Hyderabad vs. Hyderabad Educational Institutions Private Limited, Hyderabad

In the result, all the appeals of Revenue are dismissed

ITA 437/HYD/2019[2015-16]Status: DisposedITAT Hyderabad26 May 2022AY 2015-16

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri V.SrinivasanFor Respondent: Shri Y.V.S.T.Sai, CIT-DR
Section 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA No. A.Y. Appellant Respondent 1004/Hyd/2019 2012-13 M/s.Hyderabad Dy.Commissioner of Educational 1005/Hyd/2019 2013-14 Income Tax, Institutions Pvt. Ltd., 1006/Hyd/2019 2014-15 Central Circle-3(2), Shankarpally Mandal 437/Hyd/2019 2015-16 Hyderabad (PAN: AACCK9435E) 1007/Hyd/2019 2016-17 Assessee by: Shri V.Srinivasan, Revenue by: Shri Y.V.S.T.Sai, CIT-DR Date of hearing: 23/05/2022 Pronouncement on: 26/05/2022 ORDER PER K. NARASIMHA CHARY, JM: Ch…

Dy. Commissioner of Income Tax, Central Circle-3(2), Hyderabad vs. Hyderabad Educational Institutional Private Limited, Ranga Reddy

In the result, all the appeals of Revenue are dismissed

ITA 1007/HYD/2019[2016-17]Status: DisposedITAT Hyderabad26 May 2022AY 2016-17

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri V.SrinivasanFor Respondent: Shri Y.V.S.T.Sai, CIT-DR
Section 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA No. A.Y. Appellant Respondent 1004/Hyd/2019 2012-13 M/s.Hyderabad Dy.Commissioner of Educational 1005/Hyd/2019 2013-14 Income Tax, Institutions Pvt. Ltd., 1006/Hyd/2019 2014-15 Central Circle-3(2), Shankarpally Mandal 437/Hyd/2019 2015-16 Hyderabad (PAN: AACCK9435E) 1007/Hyd/2019 2016-17 Assessee by: Shri V.Srinivasan, Revenue by: Shri Y.V.S.T.Sai, CIT-DR Date of hearing: 23/05/2022 Pronouncement on: 26/05/2022 ORDER PER K. NARASIMHA CHARY, JM: Ch…

Dy. Commissioner of Income Tax, Central Circle-3(2), Hyderabad vs. Hyderabad Educational Institutional Private Limited, Ranga Reddy

In the result, all the appeals of Revenue are dismissed

ITA 1006/HYD/2019[2014-15]Status: DisposedITAT Hyderabad26 May 2022AY 2014-15

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri V.SrinivasanFor Respondent: Shri Y.V.S.T.Sai, CIT-DR
Section 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA No. A.Y. Appellant Respondent 1004/Hyd/2019 2012-13 M/s.Hyderabad Dy.Commissioner of Educational 1005/Hyd/2019 2013-14 Income Tax, Institutions Pvt. Ltd., 1006/Hyd/2019 2014-15 Central Circle-3(2), Shankarpally Mandal 437/Hyd/2019 2015-16 Hyderabad (PAN: AACCK9435E) 1007/Hyd/2019 2016-17 Assessee by: Shri V.Srinivasan, Revenue by: Shri Y.V.S.T.Sai, CIT-DR Date of hearing: 23/05/2022 Pronouncement on: 26/05/2022 ORDER PER K. NARASIMHA CHARY, JM: Ch…

Dy. Commissioner of Income Tax, Central Circle-3(2), Hyderabad vs. Hyderabad Educational Institutional Private Limited, Ranga Reddy

In the result, all the appeals of Revenue are dismissed

ITA 1005/HYD/2019[2013-14]Status: DisposedITAT Hyderabad26 May 2022AY 2013-14

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri V.SrinivasanFor Respondent: Shri Y.V.S.T.Sai, CIT-DR
Section 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA No. A.Y. Appellant Respondent 1004/Hyd/2019 2012-13 M/s.Hyderabad Dy.Commissioner of Educational 1005/Hyd/2019 2013-14 Income Tax, Institutions Pvt. Ltd., 1006/Hyd/2019 2014-15 Central Circle-3(2), Shankarpally Mandal 437/Hyd/2019 2015-16 Hyderabad (PAN: AACCK9435E) 1007/Hyd/2019 2016-17 Assessee by: Shri V.Srinivasan, Revenue by: Shri Y.V.S.T.Sai, CIT-DR Date of hearing: 23/05/2022 Pronouncement on: 26/05/2022 ORDER PER K. NARASIMHA CHARY, JM: Ch…

Dy. Commissioner of Income Tax, Central Circle-3(2), Hyderabad vs. Hyderabad Educational Institutional Private Limited, Ranga Reddy

In the result, all the appeals of Revenue are dismissed

ITA 1004/HYD/2019[2012-13]Status: DisposedITAT Hyderabad26 May 2022AY 2012-13

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri V.SrinivasanFor Respondent: Shri Y.V.S.T.Sai, CIT-DR
Section 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA No. A.Y. Appellant Respondent 1004/Hyd/2019 2012-13 M/s.Hyderabad Dy.Commissioner of Educational 1005/Hyd/2019 2013-14 Income Tax, Institutions Pvt. Ltd., 1006/Hyd/2019 2014-15 Central Circle-3(2), Shankarpally Mandal 437/Hyd/2019 2015-16 Hyderabad (PAN: AACCK9435E) 1007/Hyd/2019 2016-17 Assessee by: Shri V.Srinivasan, Revenue by: Shri Y.V.S.T.Sai, CIT-DR Date of hearing: 23/05/2022 Pronouncement on: 26/05/2022 ORDER PER K. NARASIMHA CHARY, JM: Ch…

Gmr Highways Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle- 3(1)(2), Bangalore

In the result, Ground no. 1 raised for A

ITA 495/BANG/2020[2016-17]Status: DisposedITAT Bangalore25 May 2022AY 2016-17

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Yogesh A Thar, CA
Section 14ASection 201Section 234B

…Court in Para 16 of Taparia Tools Ltd. (supra), discussed how the decision in the case of Madras Industrial (supra) will not be applicable to the facts of that case by observing as under: “16. Judgment in Madras Industrial Investment Corpn. Ltd. v. CIT [1997] 225 ITR 802/91 Taxman 340 (SC) was cited by the learned counsel for the Revenue to justify the decision taken by the courts below. We find that the Court categorically held even in that case that the general principle is that ordinarily revenue expenditure incurred wholly and exclusively for the purpose of business is to be allowed in the year in which it is…

Gmr Highways Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle 3(1)(2), Bangalore

In the result, Ground no. 1 raised for A

ITA 1643/BANG/2019[2015-16]Status: DisposedITAT Bangalore25 May 2022AY 2015-16

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Yogesh A Thar, CA
Section 14ASection 201Section 234B

…Court in Para 16 of Taparia Tools Ltd. (supra), discussed how the decision in the case of Madras Industrial (supra) will not be applicable to the facts of that case by observing as under: “16. Judgment in Madras Industrial Investment Corpn. Ltd. v. CIT [1997] 225 ITR 802/91 Taxman 340 (SC) was cited by the learned counsel for the Revenue to justify the decision taken by the courts below. We find that the Court categorically held even in that case that the general principle is that ordinarily revenue expenditure incurred wholly and exclusively for the purpose of business is to be allowed in the year in which it is…

Assistant Commissioner of Income Tax, Central Circle-2(2), Bengaluru vs. M/S. Gmr Infrastructure Limited, Bengaluru

In the result, Ground no. 1 raised for A

ITA 1744/BANG/2017[2013-14]Status: DisposedITAT Bangalore25 May 2022AY 2013-14

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Yogesh A Thar, CA
Section 14ASection 201Section 234B

…Court in Para 16 of Taparia Tools Ltd. (supra), discussed how the decision in the case of Madras Industrial (supra) will not be applicable to the facts of that case by observing as under: “16. Judgment in Madras Industrial Investment Corpn. Ltd. v. CIT [1997] 225 ITR 802/91 Taxman 340 (SC) was cited by the learned counsel for the Revenue to justify the decision taken by the courts below. We find that the Court categorically held even in that case that the general principle is that ordinarily revenue expenditure incurred wholly and exclusively for the purpose of business is to be allowed in the year in which it is…

Assistant Commissioner of Income Tax, Central Circle-2(2), Bangalore vs. M/S. Gmr Infrastructure Limited, Bengaluru

In the result, Ground no. 1 raised for A

ITA 1743/BANG/2017[2012-13]Status: DisposedITAT Bangalore25 May 2022AY 2012-13

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Yogesh A Thar, CA
Section 14ASection 201Section 234B

…Court in Para 16 of Taparia Tools Ltd. (supra), discussed how the decision in the case of Madras Industrial (supra) will not be applicable to the facts of that case by observing as under: “16. Judgment in Madras Industrial Investment Corpn. Ltd. v. CIT [1997] 225 ITR 802/91 Taxman 340 (SC) was cited by the learned counsel for the Revenue to justify the decision taken by the courts below. We find that the Court categorically held even in that case that the general principle is that ordinarily revenue expenditure incurred wholly and exclusively for the purpose of business is to be allowed in the year in which it is…

Assistant Commissioner of Income Tax, Central Circle-2(2), Bengaluru vs. M/S. Gmr Infrastructure Limited, Bengaluru

In the result, Ground no. 1 raised for A

ITA 1742/BANG/2017[2011-12]Status: DisposedITAT Bangalore25 May 2022AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Yogesh A Thar, CA
Section 14ASection 201Section 234B

…Court in Para 16 of Taparia Tools Ltd. (supra), discussed how the decision in the case of Madras Industrial (supra) will not be applicable to the facts of that case by observing as under: “16. Judgment in Madras Industrial Investment Corpn. Ltd. v. CIT [1997] 225 ITR 802/91 Taxman 340 (SC) was cited by the learned counsel for the Revenue to justify the decision taken by the courts below. We find that the Court categorically held even in that case that the general principle is that ordinarily revenue expenditure incurred wholly and exclusively for the purpose of business is to be allowed in the year in which it is…

Assistant Commissioner of Income Tax Central Circle-2(2), Bangalore vs. M/S Gmr Infrastructure Ltd, Bangalore

In the result, Ground no. 1 raised for A

ITA 1741/BANG/2017[2010-11]Status: DisposedITAT Bangalore25 May 2022AY 2010-11

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Yogesh A Thar, CA
Section 14ASection 201Section 234B

…Court in Para 16 of Taparia Tools Ltd. (supra), discussed how the decision in the case of Madras Industrial (supra) will not be applicable to the facts of that case by observing as under: “16. Judgment in Madras Industrial Investment Corpn. Ltd. v. CIT [1997] 225 ITR 802/91 Taxman 340 (SC) was cited by the learned counsel for the Revenue to justify the decision taken by the courts below. We find that the Court categorically held even in that case that the general principle is that ordinarily revenue expenditure incurred wholly and exclusively for the purpose of business is to be allowed in the year in which it is…