Madras Industrial Investment Corporation Ltd. v. CIT

Addl CIT Cen Cir IX, Mumbai vs. Prism Cement Ltd, Mumbai

Appeals are disposed of in terms

Bench: Shri Joginder Singh & Shri Rajendra

…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…

ACIT Cen Cir Cir-34, Mumbai vs. Prism Cement Ltd, Mumbai

Appeals are disposed of in terms

Bench: Shri Joginder Singh & Shri Rajendra

…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…

DCIT Cen Cir 34, Mumbai vs. Prism Cement Ltd, Mumbai

Appeals are disposed of in terms

Bench: Shri Joginder Singh & Shri Rajendra

…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…

United Home Entertainment P.Ltd, Mumbai vs. DCIT 7(3), Mumbai

In the result, the appeal of the assessee for the assessment year 2009-10 is partly allowed for statistical purposes

…of dubbing the program will be available at least for this period. It is in this background that we may refer to the following observations of Hon’ble Supreme Court in the case of Madras High Court in Madras Industrial Investment Corpn. Ltd. vs. CIT [(1997)) 225 ITR 802 (SC)]: "...Sec. 37(1) further requires that the expenditure should not be of a capital nature. The question whether a particular expenditure is revenue expenditure incurred for the purpose of business must be determined on a consideration of all the facts and circumstances, and by the application of principles of commercial trading. The question…

DCIT 7(3), Mumbai vs. United Home Entertainment P.Ltd, Mumbai

In the result, the appeal of the assessee for the assessment year 2009-10 is partly allowed for statistical purposes

…of dubbing the program will be available at least for this period. It is in this background that we may refer to the following observations of Hon’ble Supreme Court in the case of Madras High Court in Madras Industrial Investment Corpn. Ltd. vs. CIT [(1997)) 225 ITR 802 (SC)]: "...Sec. 37(1) further requires that the expenditure should not be of a capital nature. The question whether a particular expenditure is revenue expenditure incurred for the purpose of business must be determined on a consideration of all the facts and circumstances, and by the application of principles of commercial trading. The question…

DCIT 7(3), Mumbai vs. United Home Entertainment P.Ltd, Mumbai

In the result, the appeal of the assessee for the assessment year 2009-10 is partly allowed for statistical purposes

…of dubbing the program will be available at least for this period. It is in this background that we may refer to the following observations of Hon’ble Supreme Court in the case of Madras High Court in Madras Industrial Investment Corpn. Ltd. vs. CIT [(1997)) 225 ITR 802 (SC)]: "...Sec. 37(1) further requires that the expenditure should not be of a capital nature. The question whether a particular expenditure is revenue expenditure incurred for the purpose of business must be determined on a consideration of all the facts and circumstances, and by the application of principles of commercial trading. The question…

Natvar Parikh & Co.P. Ltd, Mumbai vs. ACIT Cen Cir 40, Mumbai

In the result, appeals of the assessee are allowed in part, whereas appeal of revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…ified period of time, the issue has been dealt by the ITAT Special Bench in the case of Club Mahindra Holidays, 40 DTR 1, wherein after considering the decision of Hon’ble Supreme Court in the case of E.D.Sasoon, 26 ITR 27, Madras Industrial Corporation Ltd., 225 ITR 802, Calcutta Co. Ltd. 37 ITR 1 and in the case of Rotork Controls India Pvt. Ltd., 314 ITR 62, it was held that membership fee received for 33/25 years was liable to spread over the period of time for which such fee is received. Respectfully following the same, we direct the AO to tax 1/25th share of fee in each year, rather than taxing the entire s…

ACIT Cen Cir 40, Mumbai vs. Natwar Parikh & Co. P. Ltd, Mumbai

In the result, appeals of the assessee are allowed in part, whereas appeal of revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…ified period of time, the issue has been dealt by the ITAT Special Bench in the case of Club Mahindra Holidays, 40 DTR 1, wherein after considering the decision of Hon’ble Supreme Court in the case of E.D.Sasoon, 26 ITR 27, Madras Industrial Corporation Ltd., 225 ITR 802, Calcutta Co. Ltd. 37 ITR 1 and in the case of Rotork Controls India Pvt. Ltd., 314 ITR 62, it was held that membership fee received for 33/25 years was liable to spread over the period of time for which such fee is received. Respectfully following the same, we direct the AO to tax 1/25th share of fee in each year, rather than taxing the entire s…

Natvar Parikh & Company Pvt.Ltd., Mumbai vs. The Dy.C.I.T., Central Circle 40, Mumbai

In the result, appeals of the assessee are allowed in part, whereas appeal of revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…ified period of time, the issue has been dealt by the ITAT Special Bench in the case of Club Mahindra Holidays, 40 DTR 1, wherein after considering the decision of Hon’ble Supreme Court in the case of E.D.Sasoon, 26 ITR 27, Madras Industrial Corporation Ltd., 225 ITR 802, Calcutta Co. Ltd. 37 ITR 1 and in the case of Rotork Controls India Pvt. Ltd., 314 ITR 62, it was held that membership fee received for 33/25 years was liable to spread over the period of time for which such fee is received. Respectfully following the same, we direct the AO to tax 1/25th share of fee in each year, rather than taxing the entire s…

Natvar Parikh & Company Pvt.Ltd., Mumbai vs. The Dy.C.I.T., Central Circle 40, Mumbai

In the result, appeals of the assessee are allowed in part, whereas appeal of revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…ified period of time, the issue has been dealt by the ITAT Special Bench in the case of Club Mahindra Holidays, 40 DTR 1, wherein after considering the decision of Hon’ble Supreme Court in the case of E.D.Sasoon, 26 ITR 27, Madras Industrial Corporation Ltd., 225 ITR 802, Calcutta Co. Ltd. 37 ITR 1 and in the case of Rotork Controls India Pvt. Ltd., 314 ITR 62, it was held that membership fee received for 33/25 years was liable to spread over the period of time for which such fee is received. Respectfully following the same, we direct the AO to tax 1/25th share of fee in each year, rather than taxing the entire s…

Piramyd Retail & Merchandising P.Ltd, Mumbai vs. DCIT 5(2), Mumbai

In the result, appeal of the assessee stands allowed

Bench: Shri D. Karunakara Rao & Shri Amit Shukla

…ount and the entire expenses could not have been claimed in this year u/s 37(1) as ‘business expenditure’. For coming to this conclusion, he relied upon the decision of Hon’ble Supreme Court in the case of Madras Industrial Investment Corporation, reported in 225 ITR 802 and Bombay High Court decision in the case of Taparia Tools Ltd., reported in 260 ITR 102 which as per the AO has given the legal recognition to the concept of “deferred revenue expenses”. From the stage of the CIT(A) such a disallowance of expenditure was reduced to Rs. 40,55,560/- on the ground that to 3 Piramyd Retail and Merchandising Pvt Ltd…