Maharashtra Sugar Mills Ltd: 82 ITR 452 (SC) and Rajasthan State Warehousing Corporation v. CIT (242 ITR 450)

Q: What is Maharashtra Sugar Mills Ltd: 82 ITR 452 (SC) and Rajasthan State Warehousing Corporation v. CIT authority for?

Expenditure incurred by an assessee operating a composite business that generates both taxable and non-taxable income is fully allowable without apportionment. This position led to the subsequent insertion of Section 14A, which disallowed expenditure related to earning exempt income.

Q: How many judgments cite Maharashtra Sugar Mills Ltd: 82 ITR 452 (SC) and Rajasthan State Warehousing Corporation v. CIT?

154 judgments on BharatTax cite Maharashtra Sugar Mills Ltd: 82 ITR 452 (SC) and Rajasthan State Warehousing Corporation v. CIT (242 ITR 450), spanning 2009 to 2025.

Q: Which sections of the Income Tax Act does Maharashtra Sugar Mills Ltd: 82 ITR 452 (SC) and Rajasthan State Warehousing Corporation v. CIT come up under?

It is most often cited in judgments turning on Section 14A, Section 143(3), Section 8D, Section 36(1)(vii), Section 115JB, Section 1961.

Sbi Capital Markets Ltd., Mumbai vs. Addl.C.I.T. Ltu, Mumbai

In the result, the 1st, 2nd, 3rd and 4th ground of appeals are partly allowed

ITA 2483/MUM/2012[2008-09]Status: DisposedITAT Mumbai09 Feb 2018AY 2008-09

Bench: Shri D.T. Garasia () & Shri N.K. Pradhan () Assessment Year: 2008-09 & Assessment Year: 2009-10 Sbi Capital Markets Ltd. Addl.Cit Ltu, 202, Maker Tower E, Cuff 29Th Floor Centre-I, Vs. Parade, World Trade Centre, Mumbai-400005 Cuffe Parade, Mumbai-400005 Pan No. Aaacs7914E Appellant Respondent Assessee By : Mr. Rajnikant V. Chaniyari, Ar Revenue By : Mr. V. Justin, Dr Date Of Hearing : 15/11/2017 Date Of Pronouncement : 09/02/2018

For Appellant: Mr. Rajnikant V. Chaniyari, ARFor Respondent: Mr. V. Justin, DR

Section 143(3)Section 14ASection 14A(2)

…tion 14A was enacted by the Parliament in order to overcome the judgments of the Supreme Court in the cases of CIT v. Indian Bank Ltd. AIR 1965 SC 1473, CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 ITR 452 and Rajasthan State Warehousing Corpn. v. CIT [2000] 242 ITR 450/109 Taxman 145, in which it was held that in the case of a composite and indivisible business, which results in earning of taxable and non-taxable income, it is impermissible to apportion the expenditure between what was laid out for the earning of taxable income as opposed to non-taxable income. The effect of section 14A is to widen the theory o…

Assistant Commissioner of Income Tax, Circle-1, Kota vs. M/S Jainco Enterprises Pvt. Ltd., Kota

In the result, the appeal of the revenue stands dismissed

ITA 755/JPR/2017[2014-15]Status: DisposedITAT Jaipur26 Dec 2017AY 2014-15

For Appellant: NoneFor Respondent: Shri R.A. Verma (Addl.CIT) fu/kZkfjrh dh vksj ls@

Section 143(3)Section 145(3)Section 14ASection 2(24)(x)

…9. We are unable to subscribe to the aforesaid view. The provisions of section 14A were inserted as a response to the judgments of the Supreme Court in CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 ITR 452 and Rajasthan State Ware Housing Corpn. v. CIT [2000] 242 ITR 450/109 Taxman 145 in terms of which, expenditure incurred by an assessee carrying on a composite business giving rise to both taxable as well as non-taxable income, was allowable in entirety without apportionment. It was thus that s. 14A was inserted providing that no deduction shall be allowable in respect of expenditure incurred in relation to the…

Triway Forwarders Pvt. Ltd., Chennai vs. ACIT, Chennai

In the result, the appeal of the assessee is allowed

ITA 932/CHNY/2017[2012-2013]Status: DisposedITAT Chennai28 Nov 2017AY 2012-2013

Bench: Shri Abraham P.George & Shri George Mathanआयकर अपील सं./I.T.A. No.932/Mds/2017 "नधा"रण वष" /Assessment Year : 2012-2013. M/S. Triway Forwarders Pvt. Limited, Vs The Assistant Commissioner Of No.14, Jaffer Street, Income Tax, Mannady, Company Circle Iii(2) Chennai 600 001. Chennai.

For Appellant: Shri. N. Devanathan, AdvocateFor Respondent: Shri. M. Palanichamy, IRS, JCIT

Section 14A

…ovisions of section 14A were inserted as a response to the judgments of the Supreme Court in Commissioner of Income Tax Vs. Maharashtra Sugar Mills Limited (1971) (82 ITR 452) and Rajasthan State Ware Housing Corporation Vs. Commissioner of Income Tax ((2002) 242 ITR 450) in terms of which, expenditure incurred by an assesee carrying on a composite business giving rise to both taxable as well as non- taxable income, was allowable in entirety without apportionment. It was thus that s. 14A was inserted providing that no deduction shall be allowable in respect of expenditure incurred in relation to the earning of in…

Auto Shell Cast Pvt Ltd., Coimbatore vs. DCIT, Coimbatore

In the result, the appeal of the assessee is allowed

ITA 931/CHNY/2017[2013-14]Status: DisposedITAT Chennai28 Nov 2017AY 2013-14

Bench: Shri Abraham P.George & Shri George Mathanआयकर अपील सं./I.T.A. No.931/Mds/2017 "नधा"रण वष" /Assessment Year : 2013-2014

For Respondent: Shri M. Palanichamy, JCIT

Section 14ASection 43B

…ovisions of section 14A were inserted as a response to the judgments of the Supreme Court in Commissioner of Income Tax Vs. Maharashtra Sugar Mills Limited (1971) (82 ITR 452) and Rajasthan State Ware Housing Corporation Vs. Commissioner of Income Tax ((2002) 242 ITR 450) in terms of which, expenditure incurred by an assesee carrying on a composite business giving rise to both taxable as well as non- taxable income, was allowable in entirety without apportionment. It was thus that s. 14A was inserted providing that no deduction shall be allowable in respect of expenditure incurred in relation to the earning of in…

Assistant Commissioner of Income Tax, Circle-1, Kota vs. M/S Tolaram Satyadev Agro Pvt. Ltd., Kota

In the result, appeal of the revenue stands dismissed

ITA 672/JPR/2017[2013-14]Status: DisposedITAT Jaipur09 Oct 2017AY 2013-14

For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri R.A. Verma (Addl.CIT) fu/kZkfjrh dh vksj ls@

Section 14A

…. We are unable to subscribe to the aforesaid view. The provisions of section 14A were inserted as a response to the judgments of the Supreme Court in CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 ITR 4.52 and Rajasthan State Ware Housing Corpn. v. CIT [2000] 242 ITR 450/109 Taxman 145 in terms of which, expenditure incurred by an assessee carrying on a composite business giving rise to both taxable as well as non-tcucable income, was allowable in entirety without apportionment. It was thus that s. 14A was inserted providing that no deduction shall be allowable in respect of expenditure incurred in relation to th…

Assistant Commissioner of Income Tax, Circle-1, Kota vs. Sudha Hospital & Medical Research Centre, Kota

In the result, appeal of the revenue stands dismissed

ITA 671/JPR/2017[2014-15]Status: DisposedITAT Jaipur09 Oct 2017AY 2014-15

For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri R.A. Verma (Addl.CIT) fu/kZkfjrh dh vksj ls@

Section 14A

…9. We are unable to subscribe to the aforesaid view. The provisions of section 14A were inserted as a response to the Judgments of the Supreme Court in CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 ITR 452 and Rajasthan State Ware Housing Corpn. v. CIT [2000] 242 ITR 450/109 Taxman 145 in terms of which, expenditure incurred by an assessee carrying on a composite business giving rise to both taxable as well as non-taxable income, was allowable in entirety without apportionment. It was thus that s. 14A was inserted providing that no deduction shall be allowable in respect of expenditure incurred in relation to the…

Assistant Commissioner of Income Tax, Circle-1, Kota vs. M/S Naresh Kumar Manoj Kumar, Kota

In the result, appeal of the revenue stands dismissed

ITA 670/JPR/2017[2013-14]Status: DisposedITAT Jaipur09 Oct 2017AY 2013-14

For Appellant: Shri P.C. Parwal (CA)For Respondent: Smt. Poonam Roy (DCIT) fu/kZkfjrh dh vksj ls@

Section 145(3)Section 14A

…We are unable to subscribe to the aforesaid view. The provisions of section 14A were inserted ' as a response to the judgments of the Supreme Court in CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 1TR 452 and Rajasthan State Ware Housing Corpn. v. CIT [2000] 242 ITR 450/109 Taxman 145 in terms of which, expenditure incurred by an assessee carrying on a composite business giving rise to both taxable as well as non-taxable income, was allowable in entirety without apportionment. It was thus that s. 14A was inserted providing that no deduction shall be allowable in respect of expenditure incurred in relation to the…

Asst CIT Cen Cir 2(4), Mumbai vs. Twinkle Enviro Tech P.Ltd, Mumbai

In the result, the appeal is allowed for statistical purposes

ITA 5052/MUM/2015[2011-12]Status: DisposedITAT Mumbai27 Sept 2017AY 2011-12

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2011-12 Acit-2(4) Twinkle Enviro Tech P. Room No. 802, 8Th Ltd. 317/318 Parvatiindl. Vs. Floor, Old Cgo Estate, Sunmill Building, Annex Compound, Lower M.K. Road Parel(W) Mumbai-400020. Mumbai-400013 Pan No. Aaact4038N (Appellant) (Respondent) Revenue By : Shri Ram Tiwari, Dr Assessee By : None Date Of Hearing : 12/07/2017 Date Of Pronouncement: 27/09/2017

For Appellant: NoneFor Respondent: Shri Ram Tiwari, DR

Section 10(34)Section 143(3)Section 14A

…tion 14A was enacted by the Parliament in order to overcome the judgments of the Supreme Court in the cases of CIT v. Indian Bank Ltd. AIR 1965 SC 1473, CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 ITR 452 and Rajasthan State Warehousing Corpn. v. CIT [2000] 242 ITR 450/109 Taxman 145, in which it was held that in the case of a composite and indivisible business, which results in earning of taxable and non-taxable income, it is impermissible to apportion the expenditure between what was laid out for the earning of taxable income as opposed to non-taxable income. The effect of section 14A is to widen the theory o…

Pn Nj Industries P.Ltd, Navi Mumbai vs. ACIT Cir 10(3)(Old) DCIT Cir 15(2)(2) (New), Mumbai

In the result, the appeal is allowed for statistical purposes

ITA 2324/MUM/2015[2009-10]Status: DisposedITAT Mumbai12 Sept 2017AY 2009-10

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2009-10 M/S Pn Nj Industries Pvt. Acit, Circle-10(3) (Old) Ltd. Dcit, Circle-15(2)(2) Vs. Plot No. A-470, Ttc (New) Industries Area, Midc, 4Th Floor, Mahape, P.O. Ghansoi, Aayakarbhavan, M.K. Navi Mumbai-400701 Road, Mumbai-400020 Pan No. Aaccs1519B (Appellant) (Respondent) Assessee By : Mr. Govind Javeri, Ar Revenue By: Mr. Saurabh Kumar Rai, Dr Date Of Hearing : 15/06/2017 Date Of Pronouncement: 12/09/2017

For Appellant: Mr. Govind Javeri, ARFor Respondent: Mr. Saurabh Kumar Rai, DR

Section 143(3)Section 14A

…tion 14A was enacted by the Parliament in order to overcome the judgments of the Supreme Court in the cases of CIT v. Indian Bank Ltd. AIR 1965 SC 1473, CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 ITR 452 and Rajasthan State Warehousing Corpn. v. CIT [2000] 242 ITR 450/109 Taxman 145, in which it was held that in the case of a composite and indivisible business, which results in earning of taxable and non-taxable income, it is impermissible to apportion the expenditure between what was laid out for the earning of taxable income as opposed to non-taxable income. The effect of section 14A is to widen the theory o…

M/S. Kal Airways Pvt. Ltd., Chennai vs. DCIT, Chennai

In the result, the appeals of the assessee for both the assessment years are allowed for statistical purpose

ITA 2847/CHNY/2016[2012-13]Status: DisposedITAT Chennai30 Jun 2017AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri Abraham P. George] आयकर अपील सं./I.T.A. Nos. 2846 & 2847/Mds/2016 "नधा"रण वष" /Assessment Years : 2011-12 & 2012-13

For Appellant: Shri. K. Ramakrishnan, C.AFor Respondent: Shri. Pathlavath Peerya, CIT

Section 10(33)Section 14A

…as a response to the judgments of the Supreme Court in Commissioner of Income Tax Vs. Maharashtra Sugar Mills Limited (1971) ITA Nos.2846 & 2847/Mds/16 :- 6 -: (82 ITR 452) and Rajasthan State Ware Housing Corporation Vs. Commissioner of Income Tax ((2002) 242 ITR 450) in terms of which, expenditure incurred by an assessee carrying on a composite business giving rise to both taxable as well as non-taxable income, was allowable in entirety without apportionment. It was thus that s.14A was inserted providing that no deduction shall be allowable in respect of expenditure incurred in relation to the earning of inc…

M/S. Kal Airways Pvt. Ltd., Chennai vs. DCIT, Chennai

In the result, the appeals of the assessee for both the assessment years are allowed for statistical purpose

ITA 2846/CHNY/2016[2011-12]Status: DisposedITAT Chennai30 Jun 2017AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri Abraham P. George] आयकर अपील सं./I.T.A. Nos. 2846 & 2847/Mds/2016 "नधा"रण वष" /Assessment Years : 2011-12 & 2012-13

For Appellant: Shri. K. Ramakrishnan, C.AFor Respondent: Shri. Pathlavath Peerya, CIT

Section 10(33)Section 14A

…as a response to the judgments of the Supreme Court in Commissioner of Income Tax Vs. Maharashtra Sugar Mills Limited (1971) ITA Nos.2846 & 2847/Mds/16 :- 6 -: (82 ITR 452) and Rajasthan State Ware Housing Corporation Vs. Commissioner of Income Tax ((2002) 242 ITR 450) in terms of which, expenditure incurred by an assessee carrying on a composite business giving rise to both taxable as well as non-taxable income, was allowable in entirety without apportionment. It was thus that s.14A was inserted providing that no deduction shall be allowable in respect of expenditure incurred in relation to the earning of inc…

Mira Textiles & Industries (India) Ltd., Chennai vs. ITO, Chennai

In the result, the appeal of the assessee stands allowed

ITA 225/CHNY/2017[2012-13]Status: DisposedITAT Chennai22 Jun 2017AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri Abraham P. George] आयकर अपील सं./I.T.A. No.225/Mds/2017 "नधा"रण वष" /Assessment Year : 2012-2013. Mira Textiles & Industries (I) Ltd, Vs. The Income Tax Officer, Flat F2, Upper Crest Apartments, Corporate Ward 4(3) No.11, School Street, Chennai. Koyambedu, Chennai [Pan Aaacm 4365R]

For Appellant: Shri. S. Vidya, C.AFor Respondent: Shri. Ashish Tripathi, JCIT

Section 14Section 14ASection 4Section 5

…ovisions of section 14A were inserted as a response to the judgments of the Supreme Court in Commissioner of Income Tax Vs. Maharashtra Sugar Mills Limited (1971) (82 ITR 452) and Rajasthan State Ware Housing Corporation Vs. Commissioner of Income Tax ((2002) 242 ITR 450) in terms of which, expenditure incurred by an assessee carrying on a composite business giving rise to both taxable as well as non-taxable income, was allowable in entirety without apportionment. It was thus that s.14A was inserted providing that no deduction shall be allowable in respect of expenditure incurred in relation to the earning of inc…

Aditya Birla Finance Ltd, Mumbai vs. Addl CIT RG 2(1), Mumbai

Appeal of the assessee is partly allowed for statistical purposes

ITA 5732/MUM/2011[2008-09]Status: DisposedITAT Mumbai12 Apr 2017AY 2008-09

Bench: Shri Joginder Singh & Shri Rajendraassessment Year-2008-09 M/S Aditya Birla Finance Acit-2(1), Limited (One Indiabulls R. No.575, 5Th Floor, बनाम/ Center, Tower-1, 18Th Floor, Aayakar Bhavan, Vs. Jupiter Mill Compound, 841, M.K. Road, Senapati Bapat Marg, Mumbai-400020 Elphinstone Road, Mumbai-400012 Pan No.Aabcb5769M ("नधा"रती /Assessee) (राज"व /Revenue) Assessment Year-2008-09 Acit-2(1), M/S Aditya Birla Finance R. No.575, 5Th Floor, Limited (One Indiabulls बनाम/ Aayakar Bhavan, Center, Tower-1, 18Th Floor, Vs. M.K. Road, Jupiter Mill Compound, 841, Mumbai-400020 Senapati Bapat Marg, Elphinstone Road, Mumbai-400012 Pan No. Aabcb5769M (राज"व /Revenue) ("नधा"रती /Assessee) M/S Aditya Birla Finance Ltd.

Section 14ASection 260

…or to insertion of Section 14A 3.5. Prior to the introduction of section 14A in the said Act, the position of law was as laid down by the Supreme Court in CIT v. Maharashtra Sugar Mills Ltd: 82 ITR 452 (SC) and Rajasthan State Warehousing Corporation v. CIT: 242 ITR 450 (SC) was different. In Maharashtra sugar Mills Ltd (supra) the assessee’s business comprised of two parts, namely, (1) cultivation of sugar cane and (2) the manufacture of sugar. The Revenue had contended that as the income from the cultivation of sugar cane, being the result of an agricultural operation, was not exigible to tax, therefore, any e…

Aishwarya Rai Bachchan, Mumbai vs. DCIT Cen Cir 2, Mumbai

In the result, appeals of the Revenue are dismissed, whereas appeal of assessee is allowed for statistical purposes

ITA 3873/MUM/2013[2004-05]Status: DisposedITAT Mumbai18 Jan 2017AY 2004-05