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 367,181 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

ACIT, Chennai vs. Sundaram Finance Limited, Chennai

Appeals of the revenue stand partly allowed for statistical purposes

ITA 287/CHNY/2015[2006-07]Status: DisposedITAT Chennai09 Mar 2022AY 2006-07

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./ Ita Nos.74/Chny/2015 (िनधाEरण वषE / Assessment Years: 2006-07) & आयकर अपील सं./ Ita Nos.75/Chny/2015 (िनधाEरण वषE / Assessment Years: 2007-08) & आयकर अपील सं./ Ita Nos.76/Chny/2015 (िनधाEरण वषE / Assessment Years: 2008-09) & आयकर अपील सं./ Ita Nos.77/Chny/2015 (िनधाEरण वषE / Assessment Years: 2009-10) & आयकर अपील सं./ Ita Nos.78/Chny/2015 (िनधाEरण वषE / Assessment Years: 2010-11) M/S. Sundaram Finance Ltd. Acit बनाम/ 21 Patullos Road Large Taxpayer Unit, Vs. Chennai – 600 002. Chennai. "थायी लेखा सं./जीआइ आर सं./Pan/Gir No. Aaacs-4944-A (अपीलाथ"/Appellant) : (""थ" / Respondent) & आयकर अपील सं./ Ita Nos.287 & 288/Chny/2015 (िनधाEरण वषE / Assessment Year: 2006-07) & आयकर अपील सं./ Ita Nos.289 & 290/Chny/2015 (िनधाEरण वषE / Assessment Year: 2007-08) & आयकर अपील सं./ Ita No.291/Chny/2015 (िनधाEरण वषE / Assessment Years: 2008-09) & आयकर अपील सं./ Ita No.292/Chny/2015 (िनधाEरण वषE / Assessment Year: 2009-10) & आयकर अपील सं./ Ita No.293/Chny/2015 (िनधाEरण वषE / Assessment Years: 2010-11) Acit M/S. Sundaram Finance Ltd., बनाम/ Large Taxpayer Unit, 21 Patullos Road Vs. Chennai. Chennai – 600002. "थायी लेखा सं./जीआइ आर सं./Pan/Gir No. Aaacs-4944-A (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ" की ओरसे/ Appellant By : Shri R. Vijayaraghavan (Advocate)-Ld. Ar ""थ" की ओरसे/Respondent By : Shri Kumar Ajeet- Ld. Cit-Dr

For Appellant: Shri R. Vijayaraghavan (Advocate)-Ld. ARFor Respondent: Shri Kumar Ajeet- Ld. CIT-DR
Section 143(3)Section 41(4)

…come, the assessee has claimed the balance amount of Rs.610.17 Lacs also on the ground that it is a revenue expenditure and allowable in full. Reliance was placed on the decision of Hon’ble Supreme Court in the case of Madras Industrial Investment Corp. Ltd. (225 ITR 802) for the same. However, following assessment order for AY 2005-06, Ld. AO denied the deduction so claimed by the assessee. The Ld. CIT(A) chose to follow appellate order for AY 2005-06 and confirmed the stand of Ld. AO. Aggrieved the assessee is in further appeal before us. 6.2 We find that this issue has been dealt with by Tribunal in ITA Nos.72…

ACIT, Central-2, Indore vs. M/S Krti Sangam Infrastructure Ltd, Indore

In the result, appeals of the Revenue ITANo

ITA 15/IND/2021[2015-16]Status: DisposedITAT Indore08 Mar 2022AY 2015-16

Bench: Shri Mahavir Prasad & Shri Manish Boradvirtual Hearing Assessment Year:2017-18 Acit Central-2, M/S Kalyan Toll Infrastructure Indore Ltd., Indore बनाम/ (Appellant) (Respondent ) Vs. P.A. No.Aacck1840M Assessment Year:2015-16 Acit Central-2, M/S Keti Sangam Infrastructure India Ltd., Indore बनाम/ Indore Vs. (Appellant) (Respondent ) P.A. No.Aadck0129Q Revenue By Shri P.K. Mitra, Cit-Dr Assessees By Shri Ajay Tulsiyan, Ca Date Of Hearing: 22.12.2021 Date Of Pronouncement: 08.03.2022 आदेश / O R D E R

Section 14Section 143(3)Section 14A

…t with in the same previous year. Thus, by application of the matching concept, in a year where there is no exempt income. There cannot be a disallowance of expenditure in relation to such assumed income. (Madras Industrial Investment Corporation Ltd vs. CIT (225 ITR 802). The language of s. 14A (1) should be read in that context and such that it advances the scheme of the Act rather than distort it. 16.In conclusion, we are of the view that the provision of s.14A read with rule 8D of the rules cannot be made applicable in a vacuum i.e. in the absence of exempt income. The questios of law are answered in favour…

ACIT Central-2, Indore vs. M/S Kallyan Toll Infrastructure Ltd, Indore

In the result, appeals of the Revenue ITANo

ITA 14/IND/2021[2017-18]Status: DisposedITAT Indore08 Mar 2022AY 2017-18

Bench: Shri Mahavir Prasad & Shri Manish Boradvirtual Hearing Assessment Year:2017-18 Acit Central-2, M/S Kalyan Toll Infrastructure Indore Ltd., Indore बनाम/ (Appellant) (Respondent ) Vs. P.A. No.Aacck1840M Assessment Year:2015-16 Acit Central-2, M/S Keti Sangam Infrastructure India Ltd., Indore बनाम/ Indore Vs. (Appellant) (Respondent ) P.A. No.Aadck0129Q Revenue By Shri P.K. Mitra, Cit-Dr Assessees By Shri Ajay Tulsiyan, Ca Date Of Hearing: 22.12.2021 Date Of Pronouncement: 08.03.2022 आदेश / O R D E R

Section 14Section 143(3)Section 14A

…t with in the same previous year. Thus, by application of the matching concept, in a year where there is no exempt income. There cannot be a disallowance of expenditure in relation to such assumed income. (Madras Industrial Investment Corporation Ltd vs. CIT (225 ITR 802). The language of s. 14A (1) should be read in that context and such that it advances the scheme of the Act rather than distort it. 16.In conclusion, we are of the view that the provision of s.14A read with rule 8D of the rules cannot be made applicable in a vacuum i.e. in the absence of exempt income. The questios of law are answered in favour…

Venture Lighting India Limited, Chennai vs. ACIT Corporate Circle 3(2), Chennai

In the result, considering the factual matrix in the instant case, material available on record and the judicial precedence discussed above, the appeals filed by the assessee in ITA Nos

ITA 1209/CHNY/2019[2010-11]Status: DisposedITAT Chennai04 Mar 2022AY 2010-11

Bench: Shri Mahavir Singhand Shri Girish Agrawalआयकर अपील सं./Ita Nos.: 2945 & 2946/Chny/2018 & 1209/Chny/2019 िनधा"रण वष" /Assessment Years: 2012-13, 2014-15 & 2010-11 The Acit / Dcit, M/S. Venture Lighting India Limited, Corporate Circle – 3(2), V. Plot No.A-30, D5, Phase-Ii, Chennai. Zone-B, Mepz, Tambaram, Chennai – 600 045. Pan: Aaaca 9284H (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri S. Sridhar, Advocate ""यथ" क" ओर से/Respondent By : Shri G. Johnson, Addl.Cit सुनवाई क" तार"ख/Date Of Hearing : 03.03.2022 घोषणा क" तार"ख/Date Of Pronouncement : 04.03.2022 आदेश /O R D E R Per Girish Agrawal, Am: The Two Appeals In Ita Nos. 2945 & 2946/Chny/2018 By The Assessee Are Arising Out Of Common Order Of Learned Commissioner Of Income Tax (Appeals)-11, Chennai In Ita Nos.112/16-17 & 160/17-18, Dated 29.09.2018. The Assessments Were Framed By The Acit / Dcit, Corporate Circle 3(2), Chennai For The Assessment Years 2012-13 &

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri G. Johnson, Addl.CIT
Section 143(3)

…n 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 Madras Industrial Investment Corporation Ltd. v. CIT reported in 225 ITR 802. According to the Law and Practice of Income Tax by Kanga and Palkhivala, Section 37(1) is a residuary section extending the allowance to items of business expenditure not covered by Sections 30 to 36. This Section, according to the learned Author, covers cases of business expenditure only, and not of business losses which are, however, deductibl…

Venture Lighting India Limited, Chennai vs. ACIT Corporate Circle 3(2), Chennai

In the result, considering the factual matrix in the instant case, material available on record and the judicial precedence discussed above, the appeals filed by the assessee in ITA Nos

ITA 2946/CHNY/2018[2014-15]Status: DisposedITAT Chennai04 Mar 2022AY 2014-15

Bench: Shri Mahavir Singhand Shri Girish Agrawalआयकर अपील सं./Ita Nos.: 2945 & 2946/Chny/2018 & 1209/Chny/2019 िनधा"रण वष" /Assessment Years: 2012-13, 2014-15 & 2010-11 The Acit / Dcit, M/S. Venture Lighting India Limited, Corporate Circle – 3(2), V. Plot No.A-30, D5, Phase-Ii, Chennai. Zone-B, Mepz, Tambaram, Chennai – 600 045. Pan: Aaaca 9284H (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri S. Sridhar, Advocate ""यथ" क" ओर से/Respondent By : Shri G. Johnson, Addl.Cit सुनवाई क" तार"ख/Date Of Hearing : 03.03.2022 घोषणा क" तार"ख/Date Of Pronouncement : 04.03.2022 आदेश /O R D E R Per Girish Agrawal, Am: The Two Appeals In Ita Nos. 2945 & 2946/Chny/2018 By The Assessee Are Arising Out Of Common Order Of Learned Commissioner Of Income Tax (Appeals)-11, Chennai In Ita Nos.112/16-17 & 160/17-18, Dated 29.09.2018. The Assessments Were Framed By The Acit / Dcit, Corporate Circle 3(2), Chennai For The Assessment Years 2012-13 &

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri G. Johnson, Addl.CIT
Section 143(3)

…n 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 Madras Industrial Investment Corporation Ltd. v. CIT reported in 225 ITR 802. According to the Law and Practice of Income Tax by Kanga and Palkhivala, Section 37(1) is a residuary section extending the allowance to items of business expenditure not covered by Sections 30 to 36. This Section, according to the learned Author, covers cases of business expenditure only, and not of business losses which are, however, deductibl…

Venture Lighting India Limited, Chennai vs. ACIT Corporate Circle 3(2), Chennai

In the result, considering the factual matrix in the instant case, material available on record and the judicial precedence discussed above, the appeals filed by the assessee in ITA Nos

ITA 2945/CHNY/2018[2012-13]Status: DisposedITAT Chennai04 Mar 2022AY 2012-13

Bench: Shri Mahavir Singhand Shri Girish Agrawalआयकर अपील सं./Ita Nos.: 2945 & 2946/Chny/2018 & 1209/Chny/2019 िनधा"रण वष" /Assessment Years: 2012-13, 2014-15 & 2010-11 The Acit / Dcit, M/S. Venture Lighting India Limited, Corporate Circle – 3(2), V. Plot No.A-30, D5, Phase-Ii, Chennai. Zone-B, Mepz, Tambaram, Chennai – 600 045. Pan: Aaaca 9284H (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri S. Sridhar, Advocate ""यथ" क" ओर से/Respondent By : Shri G. Johnson, Addl.Cit सुनवाई क" तार"ख/Date Of Hearing : 03.03.2022 घोषणा क" तार"ख/Date Of Pronouncement : 04.03.2022 आदेश /O R D E R Per Girish Agrawal, Am: The Two Appeals In Ita Nos. 2945 & 2946/Chny/2018 By The Assessee Are Arising Out Of Common Order Of Learned Commissioner Of Income Tax (Appeals)-11, Chennai In Ita Nos.112/16-17 & 160/17-18, Dated 29.09.2018. The Assessments Were Framed By The Acit / Dcit, Corporate Circle 3(2), Chennai For The Assessment Years 2012-13 &

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri G. Johnson, Addl.CIT
Section 143(3)

…n 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 Madras Industrial Investment Corporation Ltd. v. CIT reported in 225 ITR 802. According to the Law and Practice of Income Tax by Kanga and Palkhivala, Section 37(1) is a residuary section extending the allowance to items of business expenditure not covered by Sections 30 to 36. This Section, according to the learned Author, covers cases of business expenditure only, and not of business losses which are, however, deductibl…

63 Moons Technologies Ltd. (Formerly Known As Financial Technologies (India) Ltd.), Mumbai vs. DCIT, Cent. Cir. - 8(3), Mumbai

In the result, assessee’s appeals are partly allowed

ITA 4775/MUM/2016[2009-10]Status: DisposedITAT Mumbai16 Dec 2021AY 2009-10

Bench: Shri Shamim Yahya (Am) & Shri Amarjit Singh (Jm)

For Appellant: Shri Chetan A.KariaFor Respondent: Shri Vatsalya Saxena
Section 14ASection 14A(1)Section 40Section 92C

…b section (6) of section 35D, It has been in following cases, that such interest / premium can be claimed in the respective year on pro-rata basis, Following the view taken by the Supreme Court in Madras Industrial Investment Corporation Ltd. vs. CIT (1997) 225 ITR 802 (SC), the High Court held that the liability should be spread over the period of the debentures as was held in the case of National Engineering Industries Ltd, Vs.. CIT (1999) 236ITR 577 (Cal). In the case of CIT vs. Tungabhadra Industries Ltd. (1994) 207 ITR 553, it was held that where debentures were redeemable at a premium on expiry of certai…

Shree Balaji Engicons Pvt. Ltd, Jharsuguda vs. Principal CIT, Sambalpur

In the result, appeal of the assessee in ITA No

ITA 195/CTK/2019[204-15]Status: DisposedITAT Cuttack15 Dec 2021

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am आयकर अपीऱ सं./Ita Nos.193/Ctk/2019 (नििाारण वषा / Assessment Year :2014-2015) M/S Rawats-Balaji(Jv), Vs Pr.Cit, Sambalpur At/Po-Belpahar(Rs), Dist : Jharsuguda Pan No. : Aabar 9061 J Tan No. : Bbnr01647 C & आयकर अपीऱ सं./Ita Nos.194/Ctk/2019 (नििाारण वषा / Assessment Year :2014-2015) M/S Sbepl-Gril(Jv), Vs Pr.Cit, Sambalpur At/Po-Belpahar(Rs), Dist : Jharsuguda Pan No. : Aafas 2639 R Tan No. : Bbns04348 B & आयकर अपीऱ सं./Ita Nos.195/Ctk/2019 (नििाारण वषा / Assessment Year :2014-2015) Shree Balaji Engicons Pvt Ltd Vs Pr.Cit, Sambalpur At/Po-Belpahar(Rs), Dist : Jharsuguda Pan No. : Aagcs 4292 P Tan No. : Bbns00091 A (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) .. ननधाारिती की ओर से /Assessee By : Shri Satyanarayan Agarwal, Ar िाजस्व की ओर से /Revenue By : Shri M.K.Gautam, Citdr सुनवाई की तािीख / Date Of Hearing : 26/10/2021 घोषणा की तािीख/Date Of Pronouncement : 23/12/2021 आदेश / O R D E R Per Bench: These Three Appeals Have Been Filed By Three Different Assessees Against The Order Passed By The Pr.Cit, Sambalpur, U/S.263 Of The Act, All Dated 30.03.2019 For The Assessment Year 2014-2015. 2

For Appellant: Shri Satyanarayan Agarwal, ARFor Respondent: Shri M.K.Gautam, CITDR
Section 143(3)Section 14ASection 263Section 80I

…आयकर अपीऱीय अधिकरण, कटक न्यायपीठ, कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI MANISH BORAD, AM आयकर अपीऱ सं./ITA Nos.193/CTK/2019 (नििाारण वषा / Assessment Year :2014-2015) M/s Rawats-Balaji(JV), Vs Pr.CIT, Sambalpur At/Po-Belpahar(RS), Dist : Jharsuguda PAN No. : AABAR 9061 J TAN No. : BBNR01647 C AND आयकर अपीऱ सं./ITA Nos.194/CTK/2019 (नििाारण वषा / Assessment Year :2014-2015) M/s SBEPL-GRIL(JV), Vs Pr.CIT, Sambalpur At/Po-Belpahar(RS), Dist : Jharsuguda PAN No. : AAFAS 2639 R TAN No. : BBNS04348 B AND आयकर अपीऱ सं./ITA Nos.195/CTK/2019 (नििाारण वषा / Asse…

M/S- Sbep-Gril(Joint Venture), Jharsuguda vs. Principal CIT, Sambalpur

In the result, appeal of the assessee in ITA No

ITA 194/CTK/2019[2014-15]Status: DisposedITAT Cuttack15 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am आयकर अपीऱ सं./Ita Nos.193/Ctk/2019 (नििाारण वषा / Assessment Year :2014-2015) M/S Rawats-Balaji(Jv), Vs Pr.Cit, Sambalpur At/Po-Belpahar(Rs), Dist : Jharsuguda Pan No. : Aabar 9061 J Tan No. : Bbnr01647 C & आयकर अपीऱ सं./Ita Nos.194/Ctk/2019 (नििाारण वषा / Assessment Year :2014-2015) M/S Sbepl-Gril(Jv), Vs Pr.Cit, Sambalpur At/Po-Belpahar(Rs), Dist : Jharsuguda Pan No. : Aafas 2639 R Tan No. : Bbns04348 B & आयकर अपीऱ सं./Ita Nos.195/Ctk/2019 (नििाारण वषा / Assessment Year :2014-2015) Shree Balaji Engicons Pvt Ltd Vs Pr.Cit, Sambalpur At/Po-Belpahar(Rs), Dist : Jharsuguda Pan No. : Aagcs 4292 P Tan No. : Bbns00091 A (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) .. ननधाारिती की ओर से /Assessee By : Shri Satyanarayan Agarwal, Ar िाजस्व की ओर से /Revenue By : Shri M.K.Gautam, Citdr सुनवाई की तािीख / Date Of Hearing : 26/10/2021 घोषणा की तािीख/Date Of Pronouncement : 23/12/2021 आदेश / O R D E R Per Bench: These Three Appeals Have Been Filed By Three Different Assessees Against The Order Passed By The Pr.Cit, Sambalpur, U/S.263 Of The Act, All Dated 30.03.2019 For The Assessment Year 2014-2015. 2

For Appellant: Shri Satyanarayan Agarwal, ARFor Respondent: Shri M.K.Gautam, CITDR
Section 143(3)Section 14ASection 263Section 80I

…आयकर अपीऱीय अधिकरण, कटक न्यायपीठ, कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI MANISH BORAD, AM आयकर अपीऱ सं./ITA Nos.193/CTK/2019 (नििाारण वषा / Assessment Year :2014-2015) M/s Rawats-Balaji(JV), Vs Pr.CIT, Sambalpur At/Po-Belpahar(RS), Dist : Jharsuguda PAN No. : AABAR 9061 J TAN No. : BBNR01647 C AND आयकर अपीऱ सं./ITA Nos.194/CTK/2019 (नििाारण वषा / Assessment Year :2014-2015) M/s SBEPL-GRIL(JV), Vs Pr.CIT, Sambalpur At/Po-Belpahar(RS), Dist : Jharsuguda PAN No. : AAFAS 2639 R TAN No. : BBNS04348 B AND आयकर अपीऱ सं./ITA Nos.195/CTK/2019 (नििाारण वषा / Asse…

M/S- Rawat Balaji (Joint Venture), Jharsuguda vs. Prilncipal, CIT, Sambalpur

In the result, appeal of the assessee in ITA No

ITA 193/CTK/2019[204-15]Status: DisposedITAT Cuttack15 Dec 2021

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am आयकर अपीऱ सं./Ita Nos.193/Ctk/2019 (नििाारण वषा / Assessment Year :2014-2015) M/S Rawats-Balaji(Jv), Vs Pr.Cit, Sambalpur At/Po-Belpahar(Rs), Dist : Jharsuguda Pan No. : Aabar 9061 J Tan No. : Bbnr01647 C & आयकर अपीऱ सं./Ita Nos.194/Ctk/2019 (नििाारण वषा / Assessment Year :2014-2015) M/S Sbepl-Gril(Jv), Vs Pr.Cit, Sambalpur At/Po-Belpahar(Rs), Dist : Jharsuguda Pan No. : Aafas 2639 R Tan No. : Bbns04348 B & आयकर अपीऱ सं./Ita Nos.195/Ctk/2019 (नििाारण वषा / Assessment Year :2014-2015) Shree Balaji Engicons Pvt Ltd Vs Pr.Cit, Sambalpur At/Po-Belpahar(Rs), Dist : Jharsuguda Pan No. : Aagcs 4292 P Tan No. : Bbns00091 A (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) .. ननधाारिती की ओर से /Assessee By : Shri Satyanarayan Agarwal, Ar िाजस्व की ओर से /Revenue By : Shri M.K.Gautam, Citdr सुनवाई की तािीख / Date Of Hearing : 26/10/2021 घोषणा की तािीख/Date Of Pronouncement : 23/12/2021 आदेश / O R D E R Per Bench: These Three Appeals Have Been Filed By Three Different Assessees Against The Order Passed By The Pr.Cit, Sambalpur, U/S.263 Of The Act, All Dated 30.03.2019 For The Assessment Year 2014-2015. 2

For Appellant: Shri Satyanarayan Agarwal, ARFor Respondent: Shri M.K.Gautam, CITDR
Section 143(3)Section 14ASection 263Section 80I

…आयकर अपीऱीय अधिकरण, कटक न्यायपीठ, कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI MANISH BORAD, AM आयकर अपीऱ सं./ITA Nos.193/CTK/2019 (नििाारण वषा / Assessment Year :2014-2015) M/s Rawats-Balaji(JV), Vs Pr.CIT, Sambalpur At/Po-Belpahar(RS), Dist : Jharsuguda PAN No. : AABAR 9061 J TAN No. : BBNR01647 C AND आयकर अपीऱ सं./ITA Nos.194/CTK/2019 (नििाारण वषा / Assessment Year :2014-2015) M/s SBEPL-GRIL(JV), Vs Pr.CIT, Sambalpur At/Po-Belpahar(RS), Dist : Jharsuguda PAN No. : AAFAS 2639 R TAN No. : BBNS04348 B AND आयकर अपीऱ सं./ITA Nos.195/CTK/2019 (नििाारण वषा / Asse…

Torrent Power Ltd., Ahmedabad vs. The ACIT., Range-8, Ahmedabad

In the result cross objection filed by the assessee is partly allowed for statistical purposes

ITA 776/AHD/2012[2008-09]Status: DisposedITAT Ahmedabad08 Dec 2021AY 2008-09

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

For Appellant: Shri S.N. Soparkar, Sr. AdvocateFor Respondent: Shri Vinod Tanwani, CIT.D.R
Section 143(3)Section 254

…आयकर अपीलीय अिधकरण, अहमदाबाद "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ B’’ BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT And SHRI WASEEM AHMED, ACCOUNTANT MEMBER Sl. ITA No(s) Asset. Appeal(s) by No(s) Year(s) Appellant vs. Respondent Appellant Respondent 1. 1577/Ahd/2015 2006-07 Torrent Power Limited, D.C.I.T.,(OSD) Torrent House, Nr. Circle-8, Dinesh Hall, Off Ashram Ahmedabad. Road, Ahmedabad-380009. PAN: AACCT0294J 2. 776/Ahd/2012 2008-09 Torrent Power Limited, A.C.I.T., Ahmedabad. Range-8, Ahmedabad. PAN: AACCT0294J 3. 738/Ahd/2012 2008-09…

M/S Infosys Bpm Limited, Bangalore vs. Joint Commissioner of Income Tax Special Range-3, Bangalore

In the result, the appeal of the assessee is treated as partly allowed

ITA 2884/BANG/2018[2009-10]Status: DisposedITAT Bangalore22 Nov 2021AY 2009-10

Bench: Shri George George K. & Shri B.R. Baskaranassessment Year:2009-10

For Appellant: Shri Padamchand Khincha, A.RFor Respondent: Shri Sumer Singh, D.R
Section 10ASection 115JSection 143(3)Section 14ASection 40

…s 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 Madras Industrial Investment Corpn. Ltd. v. CIT [1997] 139 CTR (SC) 555 : (1997) 225 ITR 802 (SC). According to the Law and Practice of Income-tax by Kanga and Palkhivala, s. 37(1) is a residuary section extending the allowance to items of business expenditure not covered by ss. 30 to 36. This section, according to the learned author, covers cases of business expenditure only, and not of business losses which are, however, deductible on…

Addl. CIT, New Delhi vs. M/S. Jasper Infotech Pvt. Ltd., New Delhi

ITA 2605/DEL/2017[2012-13]Status: DisposedITAT Delhi10 Nov 2021AY 2012-13

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: N o n eFor Respondent: Ms. Sarita Singh [CIT] – D. R
Section 143(3)

…ch expenditure, even in the year in which it is incurred, and the expenditure fulfils the test laid down under section 37 of the Act> it has to be allowed. Only in exceptional cases, the nature mentioned in Madras Industrial Investment Corporation Ltd. [1997] 225 ITR 802 (SC), the expenditure can be allowed to be spread over, that too, when the assessee chooses to do so." (ii) Casio India Ltd. (335 ITR 196) "4. Challenging this order, the instant appeal is preferred by the,Revenue under section 260A of the Act. Having regard to the facts narrated above, we are of the opinion that no question of law arises in this…

Dy CIT CC-1(4), Mumbai vs. M/S. Marine Drive Hospitality & Realty P. Ltd., Mumbai

In the result both the appeals filed by the revenue are dismissed

ITA 70/MUM/2021[2013-14]Status: DisposedITAT Mumbai03 Nov 2021AY 2013-14

Bench: Shri M Balaganesh & Shri Pavan Kumar Gadale & Dcit, Cc – 1(4), Vs. M/S. Marine Drive 9Th Floor, 902, Pratishta Hospitality & Reality Bhavan, Old Cgo Bldg Pvt Ltd., (Annexe), Mk Road, Ground Floor, Db Mumbai – 400 020. House, Gen. Ak Vaidya Marg, Goregaon (E), Mumbai – 400 063. Pan/Gir No. : Aaccn1891R Appellant .. Respondent

For Appellant: Shri. Suresh Parisamy. DRFor Respondent: Ms. Hema Kataria. AR
Section 143(1)Section 143(2)Section 143(3)Section 14A

…with in the same previous year. Thus, by application of the matching concept, in a year where there is no exempt income, there cannot be a disallowance of expenditure in relation to such assumed income. ('Madras Industrial Investment Corporation Ltd vs. CIT (225 ITR 802))." 4.8 Likewise in the case of CIT vs. Delite Enterprises ITA No.110 of 2009, the Hon'ble Bombay High Court held that when there is no exempted income no disallowance u/s 14A could be made by observing as under: "In so far as Question (A) is concerned, on facts we find that there is no profit for the relevant assessment year. Hence the ITA No. 7…

Axis Bank Limited, Ahmedabad vs. The Dy.CIT, Circle-1 Now Circle-1(1)(1), Ahmedabad

In the result appeal of the Revenue is partly allowed for statistical purposes

ITA 311/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Oct 2021AY 2010-11

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedsl. Ita No(S) Asset. Appeal(S) By No(S) Year(S) Appellant Vs. Respondent Appellant Respondent 1. 311/Ahd/2016 2010-11 Axis Bank Limited, D.C.I.T., “Trishul”, 3Rd Floor, Circle-1(1)(1) Opp. Samtheshwar Ahmedabad. Mahadev Near Law Garden, Ellisbridge, Ahmedabad-380006. Pan: Aaacu2414K 2. 2176/Ahd/2016 2011-12 Axis Bank Limited, D.C.I.T., “Trishul”, 3Rd Floor, Circle-1(1)(1) Opp. Samtheshwar Ahmedabad. Mahadev Near Law Garden, Ellisbridge, Ahmedabad-380006. Pan: Aaacu2414K 3. 2173/Ahd/2016 2011-12 D.C.I.T., Axis Bank Limited, Circle-1(1)(1) Ahmedabad. Ahmedabad. Pan: Aaacu2414K 4. 165/Ahd/2017 2012-13 Axis Bank Limited, D.C.I.T., Ahmedabad. Circle-1(1)(1) Ahmedabad. Pan: Aaacu2414K 5. 287/Ahd/2017 2012-13 D.C.I.T., Axis Bank Limited, Circle-1(1)(1) Ahmedabad. Ahmedabad. Pan: Aaacu2414K 6-7 520 & 2013-14 Axis Bank Limited, D.C.I.T., 521/Ahd/2018 & Ahmedabad. Circle-1(1)(1) 2014-15 Ahmedabad. Pan: Aaacu2414K 8-9 604 & 605/ 2013-14 D.C.I.T., Axis Bank Limited, Ahd/2018 & Circle-1(1)(1) Ahmedabad. 2014-15 Ahmedabad. Pan: Aaacu2414K

For Appellant: Shri S.N. Soparkar, Sr. Advocate with Smt. Urvashi Shodhan, and Shri Parin Shah,For Respondent: Shri Anshu Prakash, CIT.DR
Section 14A

…eceipt of interest orbill discount where the borrower himself is using the fjnds of the bank for future periodand hence the receipt is related Lo the period of such use , The judgment of Supremecourt in the case of Madras Industrial Investment Corporation Lid 225 ITR 802 is alsonot relevant to the facts of the appellant's case as in that case the assessee was making use of the funds for future period and hence the expense was spread over the period of use In the instant case, it is not the case of any such expenditure of which benefit is received (or future years but here the case is of receipt of income on accru…

D.C.I.T. Cir. 7(1), Mumbai vs. M/S. Peninsula Land Ltd., Mumbai

Appeal stand partly allowed

ITA 3696/MUM/2009[2005-06]Status: DisposedITAT Mumbai27 Oct 2021AY 2005-06

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील िं./ I.T.A. No.3440/Mum/2009 (धििाारण वर्ा / Assessment Year: 2005-06) M/S Peninsula Land Limited Dcit – 7(1), (Previously Known As Morarjee Realties Ltd.) 622, Aaykar Bhavan Peninsula Spenta, 2Nd Floor बिाम M. K. Marg Mathuradas Mills Compound, Mumbai – 400 020 / Vs. Senapati Bapat Marg, Lower Parel, Mumbai-400 013 स्थायीलेखा िं./ जीआइआर िं./ Pan/Gir No. Aaact-5173-A (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : & आयकरअपील िं./ I.T.A. No. 3696/Mum/2009 (धििाारण वर्ा / Assessment Year: 2005-06) Dcit – 7(1), M/S Peninsula Land Limited 622, Aaykar Bhavan (Previously Known As Morarjee Realties Ltd.) Peninsula Spenta, 2Nd Floor बिाम/ M. K. Marg Mumbai – 400 020 Mathuradas Mills Compound, Vs. Senapati Bapat Marg, Lower Parel, Mumbai-400 013 स्थायीलेखा िं./ जीआइआर िं./ Pan/Gir No. Aaact-5173-A (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Shri Vijay Mehta - Ld. Ar Revenue By : Shri H. N. Singh – Ld. Cit-Dr ुनवाई की तारीख / : 05/08/2021 Date Of Hearing घोषणा की तारीख / : 27/10/2021 Date Of Pronouncement

For Appellant: Shri Vijay Mehta - Ld. ARFor Respondent: Shri H. N. Singh – Ld. CIT-DR
Section 143(3)Section 35D

…Rs.24,24,98,793/- on account of deferred revenue expenditure by holding that sec.35DDA does not prevent the assessee from claiming deduction in the case of slump sale and by relying on the decision of the Supreme Court in the case of Madras Indl. Corpn. Ltd. (225 ITR 802) without appreciating the fact that the decision of the Supreme Court is distinguishable from the facts of the assessee in as much as in the said decision there was no slump sale and the issue was regarding the discounting of debentures ammortised over a number of years but claimed as a deduction whereas in the present case the assessee sold its…

Deputy Commissioner of Income Tax-6(1)(2), Mumbai vs. M/S. Axis Asset Management Co. Ltd, Mumbai

In the result, the appeals filed by the revenue are hereby dismissed

ITA 5380/MUM/2019[2014-15]Status: DisposedITAT Mumbai27 Sept 2021AY 2014-15

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm (Hearing Through Video Conferencing Mode) आयकर अपील सं/ I.T.A. Nos. 5380 & 5381/Mum/2019 (निर्धारण वर्ा / Assessment Years: 2014-15 & 2015-16) बिधम/ Dcit-6(1)(2) M/S. Axis Asset Management Room No.506, 5Th Floor, Co. Ltd. Vs. Axis House, 1St Floor, C-2, Aayakar Bhavan, Maharshi Karve Road, Mumbai- Wadala International Centre, 400020. Panduranga Budhkar Marg, Worli, Mumbai-400025. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aahca5892 (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Brajendra Kumar (Dr) Assessee By: Shri Fenil Bhatt (Ar) सुनवाई की तारीख / Date Of Hearing: 04/08/2021 घोषणा की तारीख /Date Of Pronouncement: 27/09/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Above Mentioned Appeals Against The Different Order Passed By The Commissioner Of Income Tax (Appeals) -12, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Ys.2014-15 & 2015-16. Ita. No.5380/Mum/2019 2. The Revenue Has Filed The Present Appeal Against The Order Dated 23.04.2019 Passed By The Cit(A)-12, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2014-15. Ita Nos. 5380 & 5381/Mum/2019 A.Ys.2014-15 & 2015-16 3. The Revenue Has Raised The Following Grounds: -

For Appellant: Shri Fenil Bhatt (AR)For Respondent: Shri Brajendra Kumar (DR)
Section 143(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI AMARJIT SINGH, JM (Hearing through Video Conferencing Mode) आयकर अपील सं/ I.T.A. Nos. 5380 & 5381/Mum/2019 (निर्धारण वर्ा / Assessment Years: 2014-15 & 2015-16) बिधम/ DCIT-6(1)(2) M/s. Axis Asset Management Room No.506, 5th Floor, Co. Ltd. Vs. Axis House, 1st Floor, C-2, Aayakar Bhavan, Maharshi Karve Road, Mumbai- Wadala International Centre, 400020. Panduranga Budhkar Marg, Worli, Mumbai-400025. स्थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAHCA5892 (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue by: Shri Brajendra…

DCIT Central Circle -II, Gurgaon vs. Orient Craft Ltd., New Delhi

ITA 5040/DEL/2019[2016-17]Status: DisposedITAT Delhi24 Sept 2021AY 2016-17

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 14ASection 14A(1)Section 153DSection 234B

…case, the Ld. CIT(A) has erred in deleting the disallowance of product development / sampling expenses Rs. 20,98,66,789/- made by the AO by ignoring the decision of the Hon’ble Supreme Court in the case of Madras Industrial Investment Corporation Ltd. v. CIT 225 ITR 802. iii) Whether section 14A(1) of the Income Tax Act, 1961 would stand attracted even if the tax-exempt income is not actually earned during a particular year subject to expenditure relatable to such income having been incurred during the year. 5 I.T.As. No.3313 & 5040/DEL/2019 iv) Whether on the facts and in the circumstances of the case and in…

DCIT Central Circle -II, Gurgaon vs. Orient Craft Ltd., New Delhi

Appeal is dismissed

ITA 5039/DEL/2019[2015-16]Status: DisposedITAT Delhi24 Sept 2021AY 2015-16

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 153A

…case, the Ld. CIT (A) has erred in deleting the disallowance of product development / sampling expenses Rs 16,06,31,683/- made by the AO by ignoring the decision of the Hon'ble Supreme Court in the case of Madras Industrial Investment Corporation Ltd. Vs. CIT 225 ITR 802. ii) Whether on the facts and in the circumstances of the case, the Ld. CIT (A) has erred in deleting the addition of Rs. 9,20,23,623/- on account of unexplained cash sales which the director of assessee company had admitted in his statement recorded under oath during the search proceedings. iii) Whether section 14A(1) of the Income Tax Act, 1961…

DCIT Central Circle -II, Gurgaon vs. Orient Craft Ltd., New Delhi

ITA 5038/DEL/2019[2014-15]Status: DisposedITAT Delhi24 Sept 2021AY 2014-15

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Pramita M. Biswas, CIT-D.R
Section 153ASection 28Section 45(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND Dr. B.R.R. KUMAR, ACCOUNTANT MEMBER I.T.A. No.3311/DEL/2019 Assessment Year: 2014-2015 Orient Craft Ltd., vs. DCIT, Central Circle-II, C/O RRA Tax India D-28, Gurgaon. South Extn. Part-I, New Delhi. TAN/PAN: AAACO0068M (Appellant) (Respondent) I.T.A. No.5038/DEL/2019 Assessment Year: 2014-2015 DCIT, Central Circle-II, Orient Craft Ltd., C/O RRA Tax Gurgaon. vs. India D-28, South Extn. Part-I, New Delhi. TAN/PAN: AAACO0068M (Appellant) (Respondent) Appellant by: Dr. Rakesh Gupta, Adv. Respondent by: M…