Mahalakshmi Sugar Mills Co. v. CIT

123 ITR 429Supreme Court of India1980#1603 most cited

What is Mahalakshmi Sugar Mills Co. v. CIT authority for?

Payments that are compensatory in nature, such as interest paid for the delayed payment of statutory dues like cess, are an allowable business deduction under section 37(1) of the Income-tax Act. Such payments are not considered a penalty for an infringement of law.

70

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 1993 to 2025.

Also referred to as

Mahalakshmi Sugar Mills Co. v. CIT · section 37(1) · compensatory interest deduction · delayed payment interest · business expenditure allowability · penalty versus compensatory · income tax deduction · 123 ITR 429 · interest on statutory dues · deductibility of fines and penalties

Also reported as

16 CTR 198

Sections most often in play

Section 147Section 37Section 115BAASection 69CSection 153CSection 69ASection 250Section 143(3)

Issues it is cited on

section 10(2)(xv)explanation to section 37prohibited by lawsection 201(1a)block of assetssection 37(1)profits and gains of business or professionput to userevenue expendituresection 30section 37capital expenditure

Judgments citing Mahalakshmi Sugar Mills Co. v. CIT

M/S. Works Station Systems (P) Ltd., Bhopal vs. ACIT (Central) Gwalior, Station Bhopal, Bhopal

In the result, the appeal of the assessee is allowed

ITA 933/IND/2019[2017-18]Status: DisposedITAT Indore27 Aug 2020AY 2017-18

Bench: Shri Kul Bharatassessment Year: 2017-18

Section 132Section 139Section 153ASection 37Section 37(1)

…Charges on delayed supply 50,256 5. In Ground No. (1), the objection raised is in respect to delayed payment of entry tax. 5.1 It is submitted that in view of the judgment of Hon’ble Supreme Court in the case of Laxmi Sugar Mills Co Ltd Vs. CIT reported in 123 ITR 429 (SC), this is a deductible expenditure u/s. 37(1) of the Act. the Hon’ble Supreme Court has held as under : 5.2 In our opinion, the interest paid under s. 3(3) of the Cess Act cannot be described as a penalty paid for an infringement of the law. As that is the only ground on which the revenue resist the claim of the assessee to a deduction of the…

DCIT, Trivandrum vs. Asianet Satellite Communications Ltd, Trivandrum

In the result, both the appeals of the Revenue are dismissed

ITA 662/COCH/2019[2010-11]Status: DisposedITAT Cochin20 Feb 2020AY 2010-11

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM ITA No.661 & 662 /Coch/2019 Assessment Years: 2007-08 & 2010-11 The Deputy Commissioner of Vs. Asianet Satellite Communications Income-tax, Circle-1(1), Ltd., 2nd Trivandrum floor, Leela infopark, Technopark Campus, Kazhakuttom, Trivandrum-695 581. [PAN:AAECA 5548E] (Revenue-Respondent) (Assessee-Respondent) Revenue by Shri Mritunjaya Sharma, Sr. DR Assessee by Shri Rajeev R., CA Date of hearing 02/03/2020 Date of pronouncement 04/03/2020 O R D E R Per CHANDRA POOJARI, AM: These…

DCIT, Trivandrum vs. Asianet Satellite Communications Ltd, Trivandrum

In the result, both the appeals of the Revenue are dismissed

ITA 661/COCH/2019[2007-08]Status: DisposedITAT Cochin20 Feb 2020AY 2007-08

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM ITA No.661 & 662 /Coch/2019 Assessment Years: 2007-08 & 2010-11 The Deputy Commissioner of Vs. Asianet Satellite Communications Income-tax, Circle-1(1), Ltd., 2nd Trivandrum floor, Leela infopark, Technopark Campus, Kazhakuttom, Trivandrum-695 581. [PAN:AAECA 5548E] (Revenue-Respondent) (Assessee-Respondent) Revenue by Shri Mritunjaya Sharma, Sr. DR Assessee by Shri Rajeev R., CA Date of hearing 02/03/2020 Date of pronouncement 04/03/2020 O R D E R Per CHANDRA POOJARI, AM: These…

ITO 2(2)(3), Mumbai vs. Nishigandha Polymers P.Ltd, Mumbai

Accordingly, ground raised by the revenue are dismissed

ITA 6530/MUM/2017[2013-14]Status: DisposedITAT Mumbai10 Jan 2020AY 2013-14

Bench: Shri S. Rifaur Rahman, Am & Shri Ram Lal Negi, Jm आयकरअपीलसं./ I.T.A. No. 6530/Mum/2017 (निर्धारणवर्ा / Assessment Year: 2013-14)

For Appellant: Ms. Kavita Kaushik, DRFor Respondent: Shri Shailesh S. Shah, AR
Section 143(2)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, AM & SHRI RAM LAL NEGI, JM आयकरअपीलसं./ I.T.A. No. 6530/Mum/2017 (निर्धारणवर्ा / Assessment Year: 2013-14) Nishigandha Polymers ITO 2(2)(3) Room no. 542, 5th floor, Pvt. Ltd. बिधम/ 3rd floor, Rustom Bldg, 29 Aayakar Bhavan, M. K. Vs. Veer Nariman Road, Road, Mumbai-400 020 Mumbai-400 023 स्थायीलेखासं./जीआइआरसं./PAN No. AAACN6044J (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant by : Ms. Kavita Kaushik, DR प्रत्यथीकीओरसे/Respondentby : Shri Shailesh S. Shah, AR सुनवाईकीतारीख/ : 11.11.2019 Date of Hearing घोष…

M/S. Triune Energy Pvt. Ltd., New Delhi vs. DCIT, New Delhi

ITA 95/DEL/2017[2012-13]Status: DisposedITAT Delhi17 Dec 2019AY 2012-13

Bench: Shri R.K.Panda & Shri Kuldip Singh

For Appellant: Sh. Gautam Jain, Adv. Sh. Lalit Mohan, CAFor Respondent: Shri Saras Kumar, Sr.DR
Section 2(22)(e)Section 36Section 36(1)Section 36(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘G’ : NEW DELHI) BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.95/Del./2017, A.Y. 2012-13 M/s. Triune Energy P. Ltd. Vs. DCIT, B-1/H-4, Mohan Cooperative Indl. Circle-25(2) Estate, Mathura Road, New Delhi New Delhi PAN : AAKCS1045E (APPELLANT) (RESPONDENT) ASSESSEE BY : Sh. Gautam Jain, Adv. Sh. Lalit Mohan, CA REVENUE BY : Shri Saras Kumar, Sr.DR Date of Hearing : 27.11.2019 Date of Order : 17.12.2019 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : The appellant M/s. Triune Energy P. Ltd., New Delhi (hereinafter refer…

DCIT, Circle-4(2), Ahmedabad vs. M/S. Deloitte Haskins and Sells, Ahmedabad

ITA 1984/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad01 Oct 2019AY 2014-15

Bench: Shri Sudhanshu Srivastava & Shri Amarjit Singhay: 2013-14 Ay: 2014-15

For Appellant: Shri Percy Pardiwala, Niraj Sheth, ARsFor Respondent: Shri S.K. Dev, Sr. DR
Section 143

…ITA 1983 & 1984/AHD/2017 AY: 2013-14 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH AHMEDABAD BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AY: 2013-14 AY: 2014-15 DCIT, vs Deloittee Haskins & Sells, Cir.4(2), A/209, A Wing, 3rd Floor, Heritage, 2nd Floor, Pratyaksh Kar Nr. Gujarat Vidyapith, Bhavan, Nr. Politechnic Off Ashram Road, Pancjararapole, Ambawadi, Usmanpura, Ahmedabad. Ahmedabad-380 015 (Appellant) (Respondent) Appellant by: Shri Percy Pardiwala, Niraj Sheth, ARs Respondent by: Shri S.K. Dev, Sr. DR Date of hearing : 28.06.2019 Date of pr…

DCIT, Circle-4(2), Ahmedabad vs. M/S. Deloitte Haskins and Sells, Ahmedabad

ITA 1983/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad01 Oct 2019AY 2013-14

Bench: Shri Sudhanshu Srivastava & Shri Amarjit Singhay: 2013-14 Ay: 2014-15

For Appellant: Shri Percy Pardiwala, Niraj Sheth, ARsFor Respondent: Shri S.K. Dev, Sr. DR
Section 143

…ITA 1983 & 1984/AHD/2017 AY: 2013-14 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH AHMEDABAD BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AY: 2013-14 AY: 2014-15 DCIT, vs Deloittee Haskins & Sells, Cir.4(2), A/209, A Wing, 3rd Floor, Heritage, 2nd Floor, Pratyaksh Kar Nr. Gujarat Vidyapith, Bhavan, Nr. Politechnic Off Ashram Road, Pancjararapole, Ambawadi, Usmanpura, Ahmedabad. Ahmedabad-380 015 (Appellant) (Respondent) Appellant by: Shri Percy Pardiwala, Niraj Sheth, ARs Respondent by: Shri S.K. Dev, Sr. DR Date of hearing : 28.06.2019 Date of pr…

Cineyug Worldwide, Mumbai vs. DCIT CC 3(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 4225/MUM/2018[2013-14]Status: DisposedITAT Mumbai20 Sept 2019AY 2013-14

Bench: Shri S. Rifaur Rahman & Shri Ram Lal Negi: A.Y : 2013-14

For Appellant: Shri Shubham Rathi &For Respondent: Shri Kumar Padmapani Bora
Section 143(2)Section 143(3)Section 37Section 43B

…h Court in the case of CIT vs Kaypee Mechanical India (P.) Ltd., 271 CTR 591 (Guj.) and further he submitted that in the following cases also, interest on late payment of statutory dues were allowed by various courts :- i) Mahalakshmi Sugar Mills Co. vs CIT, 123 ITR 429 (SC) ii) Lachmandas Mathurdas vs CIT, 254 ITR 799 (SC) iii) CIT vs Ishwari Khetan Sugar Mills Pvt. Ltd., 272 ITR 224 (All) iv) CIT vs Delhi Automobiles, 272 ITR 381 (Delhi) v) Euro RSCG Advertising (P.) Ltd. vs ACIT, (2012) 53 SOT 90 (Mumbai) vi) Chander K. Raichandani vs ACIT, ITA No. 799/Mum/2012 dated 08.02.2013 5. On the other hand, the ld.…

M/S Fitwel Tools & Forgings Private Limited, Tumkur vs. Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes

ITA 449/BANG/2018[2014-15]Status: DisposedITAT Bangalore04 Sept 2019AY 2014-15

Bench: Shri N.V Vasudevan, Vice Presidnet & Shri B.R Baskaranassessment Year : 2014-15

For Appellant: Shri Bharath L, C.AFor Respondent: Dr. P.V Pradeep Kumar, Addl. CIT
Section 3(3)Section 37Section 37(1)

…t allowable deduction, the Hon’ble Supreme Court held that the interest paid on income-tax shall not be allowable. On the contrary, the ld AR placed his reliance on the decision rendered by Hon’ble Supreme Court in the case of Mahalakshmi Sugar Mills Vs. CIT, 123 ITR 429, wherein it was held that the interest provided for u/s 3(3) of UP Sugar Cane CESS Act is in the nature of compensation paid to govt. for delay in payment of CESS and it would not be described as penalty for Page 3 of 7 infringement of law. The ld AR also placed his reliance on the decision rendered by co-ordinate bench in the case of Velankani…

DCIT, Corporate Citcle -3(2), Chennai vs. Vsl India Pvt.Ltd., Chennai

In the result, the appeal of Revenue is dismissed

ITA 138/CHNY/2018[2012-13]Status: DisposedITAT Chennai08 Aug 2019AY 2012-13

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. No.138/Chny/2018. "नधा$रण वष$ /Assessment Year :2012-13

For Appellant: Mr.R.Clement Ramesh KumarFor Respondent: Mr.T.Vasudevan,Advocate
Section 143(3)Section 75

…ons of section 75 in the Service Tax Act, Chapter-IV of the Finance Act,1994, held that interest on delayed payment of service tax is only compensatory in nature placing reliance in the following decisions, i) Mahalakshmi Sugar Mills Co. Vs.C.I.T in (1980) 123 ITR 429 (SC) ii) Lachmanda Mathuradas in 254 ITR 799 (SC) iii) Swadeshi Cotton Mills Ltd., Vs. 233 ITR 199 (SC), :- 4 -: directed the Assessing Officer to delete the addition of interest on delayed payment of Service Tax. Being aggrieved with the order of the ld.CIT(A), the Revenue is before us in the present appeal. 4. Before us, ld. Senior D.R place…

DCIT, New Delhi vs. M/S. Dlf Ltd., New Delhi

ITA 2749/DEL/2013[2008-09]Status: DisposedITAT Delhi27 May 2019AY 2008-09

Bench: Shri Amit Shukla & Shri L.P. Sahu

For Appellant: Shri R.S. Singhvi & Shri SatyajeetFor Respondent: Shri Puneet Rai, Adv. Special counsel
Section 10Section 142ASection 143(3)Section 14ASection 40Section 43B

…nder the IT Act, which is calculated with reference to the tax on income, cannot be allowed as deduction". Before holding so, the Court considered the decision of the apex Court in the case of Mahalakshmi Sugar Mills Co. vs. CIT (1980) 16 CTR (SC) 198: (1980) 123 ITR 429 (SC): TC 17R.877 a decision rendered by three learned Judges of the apex Court and held that the ratio of that judgment had no application to the case before it in the case of Bharat Commerce & Industries Ltd. vs. CIT (supra). The assessee in the case of Mahalakshmi Sugar Mills Co. (supra), had claimed deduction of interest paid on arrears of sug…

Dlf Ltd., New Delhi vs. Addl. CIT, New Delhi

ITA 2126/DEL/2013[2008-09]Status: DisposedITAT Delhi27 May 2019AY 2008-09

Bench: Shri Amit Shukla & Shri L.P. Sahu

For Appellant: Shri R.S. Singhvi & Shri SatyajeetFor Respondent: Shri Puneet Rai, Adv. Special counsel
Section 10Section 142ASection 143(3)Section 14ASection 40Section 43B

…nder the IT Act, which is calculated with reference to the tax on income, cannot be allowed as deduction". Before holding so, the Court considered the decision of the apex Court in the case of Mahalakshmi Sugar Mills Co. vs. CIT (1980) 16 CTR (SC) 198: (1980) 123 ITR 429 (SC): TC 17R.877 a decision rendered by three learned Judges of the apex Court and held that the ratio of that judgment had no application to the case before it in the case of Bharat Commerce & Industries Ltd. vs. CIT (supra). The assessee in the case of Mahalakshmi Sugar Mills Co. (supra), had claimed deduction of interest paid on arrears of sug…

Vidyut Metallics P.Ltd, Mumbai vs. Assistant Commissioner of Income Tax Central Circle- 38(New Central Circle-6(3), Mumbai

The appeal stands partly allowed in terms of our above order

ITA 5243/MUM/2017[2010-11]Status: DisposedITAT Mumbai19 Mar 2019AY 2010-11

Bench: Hon’Ble Shri C.N. Prasad, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.5243/Mum/2017 (िनधा"रण वष" / Assessment Year: 2010-11) & आयकरअपील सं./ I.T.A. No.5244/Mum/2017 (िनधा"रण वष" / Assessment Year: 2011-12) M/S. Vidyut Metallics Pvt.Ltd. Acit-Cc 38 बनाम/ 4Th Floor, Malhotra House [New Central Circle-6(3) 19Th Floor, Air India Building Opp. Gpo, Fort Vs. Mumbai-400 001. Nariman Point, Mumbai-21. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcv-3305-R (अपीलाथ"/Appellant) (""थ" / Respondent) :

For Appellant: Shri Prateek Jha and Shri Dr. Prayag Jha- Ld. ARsFor Respondent: Shri Rajiv Gobgtra - Ld.DR
Section 143(3)Section 201(1)Section 40

…y obligation under the Income-tax Act, which is calculated with reference to the tax on income, cannot be allowed as deduction". 11. Before holding so, the Court considered the decision of the Apex Court in the case of Mahalakshmi Sugar Mills Co. v. CIT[1980] 123 ITR 429 / 3 Taxman 52 , a decision rendered by the three learned Judges of the Apex Court and held that the ratio of that judgment had no application to the case before it in the case of Bharat Commerce & Industries Ltd. (supra). The assessee in the case of Mahalakshmi Sugar Mills Co. (supra) had claimed deduction of interest paid on arrears of sugarcane…

M/S. Deepali Designs and Exhibits Pvt. Ltd., Delhi vs. DCIT, New Delhi

Appeal of the Revenue is dismissed and appeal of the Assessee is partly allowed for statistical purpose

ITA 1827/DEL/2015[2011-12]Status: DisposedITAT Delhi14 Mar 2019AY 2011-12

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 36

…on, the interest paid for late deposit of the same is also a permissible deduction and should be allowed in the same manner. Reliance in this respect is placed on the decision of the Hon’ble Supreme Court in the case of Mahalaxmi Sugar Mills Co. v. CIT (1980) 123 ITR 429. Considering these facts, the impugned addition made by the Assessing Officer was unjustified and cannot be sustained. Accordingly, the addition of Rs. 15,50,903/- made by the Assessing Officer on account of disallowance of interest paid on service tax is deleted.” The payment of interest on late deposit of service tax with the government accoun…

ACIT, New Delhi vs. M/S. Deepali Design & Exhibits (P) Ltd., New Delhi

Appeal of the Revenue is dismissed and appeal of the Assessee is partly allowed for statistical purpose

ITA 1710/DEL/2015[2011-12]Status: DisposedITAT Delhi14 Mar 2019AY 2011-12

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 36

…on, the interest paid for late deposit of the same is also a permissible deduction and should be allowed in the same manner. Reliance in this respect is placed on the decision of the Hon’ble Supreme Court in the case of Mahalaxmi Sugar Mills Co. v. CIT (1980) 123 ITR 429. Considering these facts, the impugned addition made by the Assessing Officer was unjustified and cannot be sustained. Accordingly, the addition of Rs. 15,50,903/- made by the Assessing Officer on account of disallowance of interest paid on service tax is deleted.” The payment of interest on late deposit of service tax with the government accoun…

DCIT, Central Circle - 1(4), Kolkata vs. M/S. Hindustan Urban Infrastructure Ltd.(Hindustan Vidyut Product Ltd., New Delhi

ITA 1616/KOL/2017[2012-13]Status: DisposedITAT Kolkata31 Dec 2018AY 2012-13

Bench: Shri S.S.Godara & Shri, M. Balaganesh

Section 143(3)Section 195Section 246ASection 271(1)(c)Section 40Section 40ASection 9(1)(vii)

…ount of contractual default and thus are contractual liability and not penal liability appear plausible. The Apex Court in Prakash Cotton Mills Ltd. vs. CIT 201 ITR 684 has held, inter alia,- “… The decision of this court in Mahalakshmi Sugar Mills Co. (1980) 123 ITR 429 and the decision of the Division Bench of the Andhra Pradesh High Court in Hyderabad Alwyn Metal Works Ltd. (1988) 172 ITR 113 with the views of which we are in complete agreement, are, in our opinion, decisions which settle the law on the question as to when an amount paid by an assessee as interest or damages or penalty could be regarded as com…

DCIT, Central Circle - 1(4), Kolkata vs. M/S. Hindustan Urban Infrastructure Ltd.(Hindustan Vidyut Product Ltd., New Delhi

ITA 1615/KOL/2017[2011-12]Status: DisposedITAT Kolkata31 Dec 2018AY 2011-12

Bench: Shri S.S.Godara & Shri, M. Balaganesh

Section 143(3)Section 195Section 246ASection 271(1)(c)Section 40Section 40ASection 9(1)(vii)

…ount of contractual default and thus are contractual liability and not penal liability appear plausible. The Apex Court in Prakash Cotton Mills Ltd. vs. CIT 201 ITR 684 has held, inter alia,- “… The decision of this court in Mahalakshmi Sugar Mills Co. (1980) 123 ITR 429 and the decision of the Division Bench of the Andhra Pradesh High Court in Hyderabad Alwyn Metal Works Ltd. (1988) 172 ITR 113 with the views of which we are in complete agreement, are, in our opinion, decisions which settle the law on the question as to when an amount paid by an assessee as interest or damages or penalty could be regarded as com…

DCIT, CC-1(3), Kolkata vs. M/S. Rungta Mines Ltd., Kolkata

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

ITA 1531/KOL/2017[2014-15]Status: DisposedITAT Kolkata05 Oct 2018AY 2014-15
For Appellant: Shri A. K. Tiwari, CIT, ld. DRFor Respondent: Shri Subash Agarwal, Advocate
Section 37(1)

…ructure at the loading station. I also Htnd that the issue is squarely covered by the various judicial decisions placed on record by the Ld AR in course of the appellate proceedings. The Hon’ble Supreme Court has in the case of Mahalaxmi Sugar Mills CO (1980) 123 ITR 429 laid down the basic principle for deciding as to whether a claim of damages or penalty was allowable u/s. 37(1) : whenever any statutory impost paid by an assessee by way of damages or penalty or interest is claimed as an allowable expenditure u/s. 37(1) of the Income Tax Act, the assessing authority is required to examine the scheme of the provi…

Sakal Paper Ltd., Pune vs. ACIT, Cir.-6, Pune

In the result, appeal of Revenue is dismissed and appeal of assessee is partly allowed

ITA 937/PUN/2008[2005-06]Status: DisposedITAT Pune01 Aug 2018AY 2005-06

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.725/Pun/2008 यििाारण वषा / Assessment Year : 2005-06 The Asst. Commissioner Of Income Tax, अऩीऱाथी/Appellant Circle-6, Pune …. Vs. Sakal Papers Ltd., 595, Budhawar Peth, …. प्रत्यथी / Respondent Pune – 411002 Pan: Aaccs7605Q

For Appellant: Shri Ashok KothariFor Respondent: Shri Mukesh Jha
Section 143(3)Section 80I

…y the company. The amount of compensation / damages being clearly penal in character especially when the Supreme Court has proved the mens rea of the company, is therefore, held to be not allowable u/s. 37(1) of the I.T. Act, 1961. (Mahalaxmi Sugar Mills Co., 123 ITR 429 (S.C) followed in Prakash Cotton Mills vs. CIT 111 CTR 389 (S.C) & Standard Batteries, 119 CTR 353 (S.C). In view of the above, ground of appeal No.iv is dismissed.” 16. The assessee is in appeal against the order of CIT(A). 17. The learned Authorized Representative for the assessee took us through the factual aspects of the case and also point…

ACIT, Cir.-6., Pune vs. Sakal Paper Ltd., Pune

In the result, appeal of Revenue is dismissed and appeal of assessee is partly allowed

ITA 725/PUN/2008[2005-06]Status: DisposedITAT Pune01 Aug 2018AY 2005-06

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.725/Pun/2008 यििाारण वषा / Assessment Year : 2005-06 The Asst. Commissioner Of Income Tax, अऩीऱाथी/Appellant Circle-6, Pune …. Vs. Sakal Papers Ltd., 595, Budhawar Peth, …. प्रत्यथी / Respondent Pune – 411002 Pan: Aaccs7605Q

For Appellant: Shri Ashok KothariFor Respondent: Shri Mukesh Jha
Section 143(3)Section 80I

…y the company. The amount of compensation / damages being clearly penal in character especially when the Supreme Court has proved the mens rea of the company, is therefore, held to be not allowable u/s. 37(1) of the I.T. Act, 1961. (Mahalaxmi Sugar Mills Co., 123 ITR 429 (S.C) followed in Prakash Cotton Mills vs. CIT 111 CTR 389 (S.C) & Standard Batteries, 119 CTR 353 (S.C). In view of the above, ground of appeal No.iv is dismissed.” 16. The assessee is in appeal against the order of CIT(A). 17. The learned Authorized Representative for the assessee took us through the factual aspects of the case and also point…