Narandas Mathuradas & Co. v. CIT

35 ITR 461High Court1959#6992 most cited

What is Narandas Mathuradas & Co. v. CIT authority for?

Expenditure incurred or losses arising incidentally to the carrying on of a business, rather than for the acquisition of a business or as a temporary investment, are deductible in computing the profits and gains of that business from a broad commercial perspective.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2022.

Also referred to as

Narandas Mathuradas & Co. v. CIT · business expenditure · incidental to business · commercial aspect · true profits · revenue loss · deposit for business

Judgments citing Narandas Mathuradas & Co. v. CIT

M/S. India Medtronics Pvt.Ltd., Baroda vs. The Dy.CIT., Circle-1(2), Baroda

In the result, similarly the Assessee’s appeal is partly allowed

ITA 480/AHD/2011[2005-06]Status: DisposedITAT Mumbai30 Sept 2022AY 2005-06

Bench: Shri Amit Shukla & Shri Gagan Goyal

For Appellant: Sh. Rajan R. Vora with Sh. Nikhil TiwariFor Respondent: Dr. Yogesh Kamath/ Akhtar Hussain Ansari

Section 234BSection 271Section 274Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K”, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI GAGAN GOYAL, ACCOUNTANT MEMBER ITA No.3361/Ahd./2010 (A.Y: 2006–07) India Medtronic Pvt. Ltd. 1261, Solitaire Corporate Park, Building No.12, 6th Floor, Andheri Ghatkopar Link Road, Andheri –East, Mumbai –400093 PAN – AAACI4227Q ……………. Appellant Vs. Dy. Commissioner of Income Tax Circle–1(2), Baroda ……………. Respondent Assesseeby : Sh. Rajan R. Vora with Sh. Nikhil Tiwari Respondent by : Dr. Yogesh Kamath/ Akhtar Hussain Ansari Date of Hearing : 30/09/2022 Date of Pronouncement : 30/09/2022 ORDER PER G…

The DCIT, Circle-1(2), Rajkot vs. M/S. Drb Commodities Pvt. Ltd., Rajkot

ITA 234/RJT/2017[2014-15]Status: HeardITAT Rajkot24 Feb 2022AY 2014-15

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Respondent byFor Respondent: Shri Aarsi Prasad, CIT D.R

Section 143(3)Section 40

…on. Further that, it was incurred in the character of the trade and during the ordinary course of business. On this aspect, we have considered the judgment passed by the Hon’ble Bombay High Court in the case of Narandas Mathuradas & Co. vs. CIT, reported in 35 ITR 461. While dealing with the identical issue the Hon’ble Court was pleased to observe as follows: “3. Therefore, we must approach this question not from any technical point of view, but from the broad commercial aspect of the matter, and what we have really to decide is whether in arriving at the profits and gains of a business carried on by the assess…

The DCIT, Circle-1(2), Rajkot vs. M/S. D.M.L. World Trade Pvt. Ltd., Rajkot

ITA 233/RJT/2017[2014-15]Status: HeardITAT Rajkot24 Feb 2022AY 2014-15

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Respondent byFor Respondent: Shri Aarsi Prasad, CIT D.R

Section 143(3)Section 40

…on. Further that, it was incurred in the character of the trade and during the ordinary course of business. On this aspect, we have considered the judgment passed by the Hon’ble Bombay High Court in the case of Narandas Mathuradas & Co. vs. CIT, reported in 35 ITR 461. While dealing with the identical issue the Hon’ble Court was pleased to observe as follows: “3. Therefore, we must approach this question not from any technical point of view, but from the broad commercial aspect of the matter, and what we have really to decide is whether in arriving at the profits and gains of a business carried on by the assess…

The Dy. Commr. of Income Tax, Cir.-1(2), Rajkot-Gujarat vs. M/S Dml Exim Pvt. Ltd., Rajkot-Gujarat

ITA 232/RJT/2017[2014-15]Status: HeardITAT Rajkot24 Feb 2022AY 2014-15

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Respondent byFor Respondent: Shri Aarsi Prasad, CIT D.R

Section 143(3)Section 40

…on. Further that, it was incurred in the character of the trade and during the ordinary course of business. On this aspect, we have considered the judgment passed by the Hon’ble Bombay High Court in the case of Narandas Mathuradas & Co. vs. CIT, reported in 35 ITR 461. While dealing with the identical issue the Hon’ble Court was pleased to observe as follows: “3. Therefore, we must approach this question not from any technical point of view, but from the broad commercial aspect of the matter, and what we have really to decide is whether in arriving at the profits and gains of a business carried on by the assess…

The DCIT, Circle-1(2), Rajkot vs. M/S. Drb Commodities Pvt. Ltd., Rajkot

ITA 231/RJT/2017[2011-12]Status: HeardITAT Rajkot24 Feb 2022AY 2011-12

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Respondent byFor Respondent: Shri Aarsi Prasad, CIT D.R

Section 143(3)Section 40

…on. Further that, it was incurred in the character of the trade and during the ordinary course of business. On this aspect, we have considered the judgment passed by the Hon’ble Bombay High Court in the case of Narandas Mathuradas & Co. vs. CIT, reported in 35 ITR 461. While dealing with the identical issue the Hon’ble Court was pleased to observe as follows: “3. Therefore, we must approach this question not from any technical point of view, but from the broad commercial aspect of the matter, and what we have really to decide is whether in arriving at the profits and gains of a business carried on by the assess…

The DCIT, Circle-1 (2), Rajkot vs. Shri Narendra Nanjibhai Davda, Rajkot

ITA 230/RJT/2017[2014-15]Status: HeardITAT Rajkot24 Feb 2022AY 2014-15

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Respondent byFor Respondent: Shri Aarsi Prasad, CIT D.R

Section 143(3)Section 40

…on. Further that, it was incurred in the character of the trade and during the ordinary course of business. On this aspect, we have considered the judgment passed by the Hon’ble Bombay High Court in the case of Narandas Mathuradas & Co. vs. CIT, reported in 35 ITR 461. While dealing with the identical issue the Hon’ble Court was pleased to observe as follows: “3. Therefore, we must approach this question not from any technical point of view, but from the broad commercial aspect of the matter, and what we have really to decide is whether in arriving at the profits and gains of a business carried on by the assess…

The DCIT, Circle 2(1), Rajkot-Gujarat vs. Smt Meenaben H Lakhani, Rajkot-Gujarat

ITA 229/RJT/2017[2014-15]Status: HeardITAT Rajkot24 Feb 2022AY 2014-15

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Respondent byFor Respondent: Shri Aarsi Prasad, CIT D.R

Section 143(3)Section 40

…on. Further that, it was incurred in the character of the trade and during the ordinary course of business. On this aspect, we have considered the judgment passed by the Hon’ble Bombay High Court in the case of Narandas Mathuradas & Co. vs. CIT, reported in 35 ITR 461. While dealing with the identical issue the Hon’ble Court was pleased to observe as follows: “3. Therefore, we must approach this question not from any technical point of view, but from the broad commercial aspect of the matter, and what we have really to decide is whether in arriving at the profits and gains of a business carried on by the assess…

DCIT, Ahmedabad vs. Arvindbhai M. Prajapati, Ahmedabad

In the result, appeal filed by the Revenue is dismissed

ITA 1598/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad28 Sept 2021AY 2013-14

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed) [Through Virtual Court]

For Appellant: Shri S. N. Divetia, A.RFor Respondent: Shri S. S. Shukla, Sr. D.R

…did not give any enduring advantage or capital asset and the amounts were written off in the course of assessee’s business. And in support of its contention, Ld. A.R. cited an order of Bombay High Court in the matter of Narandas Mathuradas Co. vs. CIT [1959] 35 ITR 461 (Bom) on identical issue relief was granted to the assessee with following observations: "Business loss - "Firm responding to tender for supply of commodity - Consequent to acceptance of the tender, assessee depositing money by way of security - Assessee failing to effect supplies as agreed - Accordingly security amount forfeited - The security d…

The Dy. Commr. of Income Tax, Cir.-1(2), Rajkot-Gujarat vs. M/S Dml Exim Pvt. Ltd., Rajkot-Gujarat

Appeal is dismissed

ITA 27/RJT/2016[2012-13]Status: DisposedITAT Rajkot28 Jul 2020AY 2012-13

Bench: Shri Waseem Ahmed& Ms. Madhumita Roy

For Appellant: Shri M. N. Maurya, CIT DR

…t directly affects the balance sheet. Hence, the same cannot be set off a revenue loss against the legitimate income. 27. We have also considered the judgment passed by the Hon’ble Bombay High Court in the case of Narandas Mathuradas &Co. vs. CIT reported in 35 ITR 461. While dealing with the identical issue the Hon’ble Court was pleased to observe as follows:- “3. Therefore, we must approach this question not from any technical point of view, but from the broad commercial aspect of the matter, and what we have really to decide is whether in arriving at the profits and gains of a business carried on by the asses…

The Dy. Commr. of Income Tax, Cir.-1(2), Rajkot-Gujarat vs. M/S D.M.L. Exim Pvt. Ltd., Rajkot-Gujarat

Appeal is dismissed

ITA 360/RJT/2015[2011-12]Status: DisposedITAT Rajkot28 Jul 2020AY 2011-12

Bench: Shri Waseem Ahmed& Ms. Madhumita Roy

For Appellant: Shri M. N. Maurya, CIT DR

…t directly affects the balance sheet. Hence, the same cannot be set off a revenue loss against the legitimate income. 27. We have also considered the judgment passed by the Hon’ble Bombay High Court in the case of Narandas Mathuradas &Co. vs. CIT reported in 35 ITR 461. While dealing with the identical issue the Hon’ble Court was pleased to observe as follows:- “3. Therefore, we must approach this question not from any technical point of view, but from the broad commercial aspect of the matter, and what we have really to decide is whether in arriving at the profits and gains of a business carried on by the asses…

M/S. D.M.L. Exim Pvt. Ltd., Rajkot-Gujarat vs. The Assistant Commissioner of Income Tax, Circle-5, Rajkot-Gujarat

Appeal is dismissed

ITA 315/RJT/2015[2011-12]Status: DisposedITAT Rajkot28 Jul 2020AY 2011-12

Bench: Shri Waseem Ahmed& Ms. Madhumita Roy

For Appellant: Shri M. N. Maurya, CIT DR

…t directly affects the balance sheet. Hence, the same cannot be set off a revenue loss against the legitimate income. 27. We have also considered the judgment passed by the Hon’ble Bombay High Court in the case of Narandas Mathuradas &Co. vs. CIT reported in 35 ITR 461. While dealing with the identical issue the Hon’ble Court was pleased to observe as follows:- “3. Therefore, we must approach this question not from any technical point of view, but from the broad commercial aspect of the matter, and what we have really to decide is whether in arriving at the profits and gains of a business carried on by the asses…

Altus Group (India) Pvt. Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 1226/DEL/2016[2012-13]Status: DisposedITAT Delhi14 Nov 2019AY 2012-13

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2012-13

Section 36Section 36(2)Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘E’, NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2012-13 M/s. Altus Group (India) Pvt. Vs. DCIT, Ltd., Circle-2(1), New Delhi C/o- M.L. Garg & Co. CAs, K-60, 2nd Floor, Opp. PVR Plaza, Connaught Place, New Delhi PAN :AAECP1689F (Appellant) (Respondent) And Assessment Year: 2012-13 DCIT, Vs. M/s. Altus Group (India) Pvt. Circle-2(1), New Delhi Ltd., S-327, Greater Kailash-II, New Delhi PAN :AAECP1689F (Appellant) (Respondent) Assessee by Shri Manish Garg, CA Department by Shri K. Hauthang, Sr.DR…

DCIT, New Delhi vs. M/S. Altus Group (India) Pvt. Ltd., New Delhi

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

ITA 1276/DEL/2016[2012-13]Status: DisposedITAT Delhi14 Nov 2019AY 2012-13

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2012-13

Section 36Section 36(2)Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘E’, NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2012-13 M/s. Altus Group (India) Pvt. Vs. DCIT, Ltd., Circle-2(1), New Delhi C/o- M.L. Garg & Co. CAs, K-60, 2nd Floor, Opp. PVR Plaza, Connaught Place, New Delhi PAN :AAECP1689F (Appellant) (Respondent) And Assessment Year: 2012-13 DCIT, Vs. M/s. Altus Group (India) Pvt. Circle-2(1), New Delhi Ltd., S-327, Greater Kailash-II, New Delhi PAN :AAECP1689F (Appellant) (Respondent) Assessee by Shri Manish Garg, CA Department by Shri K. Hauthang, Sr.DR…

Taj Sats Air Catering Ltd, Mumbai vs. Asst CIT Circle- 2(3)(1), Mumbai

In the result, the appeal of the assessee is hereby ordered to be allowed

ITA 762/MUM/2018[2014-15]Status: DisposedITAT Mumbai30 Apr 2019AY 2014-15

For Appellant: Shri M.P. Lohia/ HemenFor Respondent: Ms. Neelima Nadkarni (DR)

…on and, therefore, it could in no sense be held that the deposit of security was made for acquiring a business. Accordingly, the loss resulting from the forfeiture of security money was a revenue loss.” In the case of Narandas Mathuradas & Co. Vs. CIT (1959) 35 ITR 461 (Bom) High Court has specifically held that- “This was not a case where the assessee made the deposit in order to acquire a business, nor was this a case where an amount was deposited as a short or a temporary, investment yielding interest, the deposit being necessary in order that the assessee should be permitted to carry on a particular business…

M/S. Bhagirath Coach & Metal Fabricators Pvt. Ltd., Indore vs. The DCIT 1(1), Indore

In the result appeal of the assessee is allowed

ITA 351/IND/2017[2013-14]Status: DisposedITAT Indore17 Dec 2018AY 2013-14

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Boradassessment Year 2013-14 M/S. Bhagirath Coach & Dcit 1(1), Metal Fabricators Pvt. Ltd, Vs. Indore C/O M. Mehta & Co, 11/5, South Tukoganj, Indore (Appellant) (Respondent ) Pan No.Aaacb7112P Revenue By Shri R.P. Mourya, Sr.Dr Assessee By S/Shri S.N. Agrawal & Pankaj Mogra,Cas Date Of Hearing 17.12.2018 Date Of Pronouncement 19.12.2018 O R D E R

Section 143(2)Section 143(3)Section 37(1)

…t or a advantage endeavour in nature. As such the loss clearly cannot be attributed to the business carried on by the assessee. Reliance was placed on following judgments; (i) Hon'ble Bombay High Court in the case of Narandas Mathuradas & Co. V/s CIT (1959) 35 ITR 461 (Bom). (ii) Hon'ble Supreme Court in the case of Badridas Daga V/s CIT 34 ITR 10 (iii) Hon'ble Supreme Court in the case of CIT V/s R.B. Rungta & Co. 50 ITR 233 (iv) Madeva Upendra Sinai Vs. Union of India (1975) 98 ITR 209 (SC) (v) Ramchandar Shivnarayan Vs. CIT (1978) 111 ITR 263(SC) Bhagirath Coach & Metal Fabricators Pvt. Ltd Jwala Pr…

Avery India Ltd., Haryana vs. D.C.I.T, Cir- 1, Kolkata

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

ITA 601/KOL/2013[2006-07]Status: DisposedITAT Kolkata27 Nov 2015AY 2006-07

Bench: : Shri Mahavir Singh & Shri Balaganesh

For Appellant: Shri Saurabh Kedia, ld.A/RFor Respondent: Shri D. Naskar, JCIT, ld.DR

Section 143(3)Section 28Section 37(1)

…egard is placed on the Sub-Total ( C ) 2,26,101 following judgements:- M/s. Pyoginam –vs- Add.CIT (2010 130 TTJ 7 (Del) CIT-vs- Sugar Dealers (1975) 100 ITR 424(All) Thackers H.P & Co –vs- CIT (1982) 134 ITR 21(MP) Narandas Mathuradas and Co –vs- CIT (1959) 35 ITR 461 (Bom) Dheerajlal Raghav & Co. ITO (1978) 5 TTJ 557 (Cuttack) Rent Deposit [ deposited but not refundable while vacating the flat The rent deposits were made in Rent Deposit 2,000 respect of flat taken on lease by the Sub-Total[D] 2,000 company for use by its employees. The said flat was vacated by the company’s employee long back; however, in spit…