National Engineering Industries Limited v. CIT

208 ITR 1002Reported decision1994#6773 most cited

What is National Engineering Industries Limited v. CIT authority for?

Discount and premium on debentures are treated similarly, and tax is deductible only at the time of redemption.

17

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2017.

Also referred to as

National Engineering Industries Limited v. CIT · 208 ITR 1002 · discount on debentures · premium on debentures · tax deduction at source · redemption of debentures · CBDT circular

Judgments citing National Engineering Industries Limited v. CIT

ACIT, Chennai vs. M/S. Bhavani Distilleries & Chemicals Ltd., Chennai

In the result the Revenue’s appeal in ITA No

ITA 3055/CHNY/2016[2012-13]Status: DisposedITAT Chennai14 Nov 2017AY 2012-13

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

Section 40

…t Leasing Company of India Ltd reported in 292 ITR 110, the decision of the Hon’ble Apex Court in the case Madras Industrial Corporation Ltd., vs. CIT reported in 225 ITR 802, the decision in the case National Engineering Industries Ltd vs. CIT reported in 236 ITR 557 held that there is no distinction between the discount on debentures and premium on debentures and further relying on the circular issued by the CBDT held that the tax is required to be deducted only at the time of redemption of debentures and accordingly directed the Ld.AO to delete the addition by observing as under:- “6.3 Now, the second is…

JCIT (OSD), Chennai vs. Bhavani Distilleries & Chemicals Pvt Ltd., Chennai

In the result the Revenue’s appeal in ITA No

ITA 1571/CHNY/2016[2011-12]Status: DisposedITAT Chennai14 Nov 2017AY 2011-12

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

Section 40

…t Leasing Company of India Ltd reported in 292 ITR 110, the decision of the Hon’ble Apex Court in the case Madras Industrial Corporation Ltd., vs. CIT reported in 225 ITR 802, the decision in the case National Engineering Industries Ltd vs. CIT reported in 236 ITR 557 held that there is no distinction between the discount on debentures and premium on debentures and further relying on the circular issued by the CBDT held that the tax is required to be deducted only at the time of redemption of debentures and accordingly directed the Ld.AO to delete the addition by observing as under:- “6.3 Now, the second is…

ACIT, Chennai vs. Bhavani Distilleries and Chemicals Ltd., Chennai

In the result the Revenue’s appeal in ITA No

ITA 1584/CHNY/2014[2009-10]Status: DisposedITAT Chennai14 Nov 2017AY 2009-10

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

Section 40

…t Leasing Company of India Ltd reported in 292 ITR 110, the decision of the Hon’ble Apex Court in the case Madras Industrial Corporation Ltd., vs. CIT reported in 225 ITR 802, the decision in the case National Engineering Industries Ltd vs. CIT reported in 236 ITR 557 held that there is no distinction between the discount on debentures and premium on debentures and further relying on the circular issued by the CBDT held that the tax is required to be deducted only at the time of redemption of debentures and accordingly directed the Ld.AO to delete the addition by observing as under:- “6.3 Now, the second is…

ACIT, Chennai vs. M/S. Bhavani Distilleries and Chemicals Limited, Chennai

In the result the Revenue’s appeal in ITA No

ITA 68/CHNY/2012[2008-09]Status: DisposedITAT Chennai14 Nov 2017AY 2008-09

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

Section 40

…t Leasing Company of India Ltd reported in 292 ITR 110, the decision of the Hon’ble Apex Court in the case Madras Industrial Corporation Ltd., vs. CIT reported in 225 ITR 802, the decision in the case National Engineering Industries Ltd vs. CIT reported in 236 ITR 557 held that there is no distinction between the discount on debentures and premium on debentures and further relying on the circular issued by the CBDT held that the tax is required to be deducted only at the time of redemption of debentures and accordingly directed the Ld.AO to delete the addition by observing as under:- “6.3 Now, the second is…

ACIT, Chennai vs. M/S. Bhavani Distilleries and Chemicals Ltd., Chennai

In the result the Revenue’s appeal in ITA No

ITA 888/CHNY/2010[2007-08]Status: DisposedITAT Chennai14 Nov 2017AY 2007-08

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

Section 40

…t Leasing Company of India Ltd reported in 292 ITR 110, the decision of the Hon’ble Apex Court in the case Madras Industrial Corporation Ltd., vs. CIT reported in 225 ITR 802, the decision in the case National Engineering Industries Ltd vs. CIT reported in 236 ITR 557 held that there is no distinction between the discount on debentures and premium on debentures and further relying on the circular issued by the CBDT held that the tax is required to be deducted only at the time of redemption of debentures and accordingly directed the Ld.AO to delete the addition by observing as under:- “6.3 Now, the second is…

Bhavani Distilleris and Chemicals Ltd., Chennai vs. ACIT, Chennai

In the result the Revenue’s appeal in ITA No

ITA 814/CHNY/2010[2007-08]Status: DisposedITAT Chennai14 Nov 2017AY 2007-08

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

Section 40

…t Leasing Company of India Ltd reported in 292 ITR 110, the decision of the Hon’ble Apex Court in the case Madras Industrial Corporation Ltd., vs. CIT reported in 225 ITR 802, the decision in the case National Engineering Industries Ltd vs. CIT reported in 236 ITR 557 held that there is no distinction between the discount on debentures and premium on debentures and further relying on the circular issued by the CBDT held that the tax is required to be deducted only at the time of redemption of debentures and accordingly directed the Ld.AO to delete the addition by observing as under:- “6.3 Now, the second is…

ACIT, Trichy vs. The Karur Vysya Bank Ltd., Karur

In the result, I.T.A. Nos

ITA 1527/CHNY/2013[2005-06]Status: DisposedITAT Chennai27 Apr 2017AY 2005-06

Bench: Shri N.R.S. Ganesan & Shri Abraham P. Georgeआयकर अपील सं./Ita Nos.1340 & 1341/Mds/2013 "नधा"रण वष" / Assessment Years : 2003-04 & 2005-06

For Appellant: Shri N. Quadir Hoseyn, AdvocateFor Respondent: Shri S. Sankaralingam, CIT

…sessment year 2006-07. This Tribunal held that ex- gratia amount paid to the employees amounts to allowable expenditure. In fact, this Tribunal placed its reliance on the judgment of Calcutta High Court in CIT v. National Engineering Industries Ltd. (1994) 208 ITR 1002. 36. We have also carefully gone through the judgment of Madras High Court in Lakshmi Vilas Bank (supra). The Madras High Court found that the ex-gratia payment made to the employees in the form of incentive is a business expenditure. Therefore, it has to be allowed under Section 37 of the Act. In view of this judgment of Madras High Court in…

ACIT, Trichy vs. The Karur Vysya Bank Ltd., Karur

In the result, I.T.A. Nos

ITA 1496/CHNY/2013[2003-04]Status: DisposedITAT Chennai27 Apr 2017AY 2003-04

Bench: Shri N.R.S. Ganesan & Shri Abraham P. Georgeआयकर अपील सं./Ita Nos.1340 & 1341/Mds/2013 "नधा"रण वष" / Assessment Years : 2003-04 & 2005-06

For Appellant: Shri N. Quadir Hoseyn, AdvocateFor Respondent: Shri S. Sankaralingam, CIT

…sessment year 2006-07. This Tribunal held that ex- gratia amount paid to the employees amounts to allowable expenditure. In fact, this Tribunal placed its reliance on the judgment of Calcutta High Court in CIT v. National Engineering Industries Ltd. (1994) 208 ITR 1002. 36. We have also carefully gone through the judgment of Madras High Court in Lakshmi Vilas Bank (supra). The Madras High Court found that the ex-gratia payment made to the employees in the form of incentive is a business expenditure. Therefore, it has to be allowed under Section 37 of the Act. In view of this judgment of Madras High Court in…

The Karur Vysya Bank Ltd., Karur vs. Addl. CIT, Trichy

In the result, I.T.A. Nos

ITA 1341/CHNY/2013[2005-06]Status: DisposedITAT Chennai27 Apr 2017AY 2005-06

Bench: Shri N.R.S. Ganesan & Shri Abraham P. Georgeआयकर अपील सं./Ita Nos.1340 & 1341/Mds/2013 "नधा"रण वष" / Assessment Years : 2003-04 & 2005-06

For Appellant: Shri N. Quadir Hoseyn, AdvocateFor Respondent: Shri S. Sankaralingam, CIT

…sessment year 2006-07. This Tribunal held that ex- gratia amount paid to the employees amounts to allowable expenditure. In fact, this Tribunal placed its reliance on the judgment of Calcutta High Court in CIT v. National Engineering Industries Ltd. (1994) 208 ITR 1002. 36. We have also carefully gone through the judgment of Madras High Court in Lakshmi Vilas Bank (supra). The Madras High Court found that the ex-gratia payment made to the employees in the form of incentive is a business expenditure. Therefore, it has to be allowed under Section 37 of the Act. In view of this judgment of Madras High Court in…

The Karur Vysya Bank Ltd., Karur vs. Addl. CIT, Trichy

In the result, I.T.A. Nos

ITA 1340/CHNY/2013[2003-04]Status: DisposedITAT Chennai27 Apr 2017AY 2003-04

Bench: Shri N.R.S. Ganesan & Shri Abraham P. Georgeआयकर अपील सं./Ita Nos.1340 & 1341/Mds/2013 "नधा"रण वष" / Assessment Years : 2003-04 & 2005-06

For Appellant: Shri N. Quadir Hoseyn, AdvocateFor Respondent: Shri S. Sankaralingam, CIT

…sessment year 2006-07. This Tribunal held that ex- gratia amount paid to the employees amounts to allowable expenditure. In fact, this Tribunal placed its reliance on the judgment of Calcutta High Court in CIT v. National Engineering Industries Ltd. (1994) 208 ITR 1002. 36. We have also carefully gone through the judgment of Madras High Court in Lakshmi Vilas Bank (supra). The Madras High Court found that the ex-gratia payment made to the employees in the form of incentive is a business expenditure. Therefore, it has to be allowed under Section 37 of the Act. In view of this judgment of Madras High Court in…

City Union Bank Limited, Kumbakonam vs. JCIT, Kumbakonam

In the result, the appeals filed for the assessment year 2007-08 filed by

ITA 2035/CHNY/2014[2008-09]Status: DisposedITAT Chennai28 Dec 2016AY 2008-09

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri V. Vivekanandan, CIT
Section 143(1)Section 143(2)Section 143(3)Section 148Section 194JSection 195JSection 40A

…yees without distinguishing the quality of work of the employees. Whereas, the Ld. CIT(A) has found Rs. 5,60,15,000/- is business expenditure and relied on the decision of the Calcutta High Court in the case of National Engineering Industries Limited Vs. CIT 208 ITR 1002 (Kolkata), similarly, co- ordinate bench of the Tribunal in the case of Lakshmi Vilas Bank Limited and Karur Vysya Bank Limited, where ex-gratia payments are in the nature of Business expenditure u/s. 37(1) of the Act and allowed the assessee claim. The Ld. DR argued that the ex-gratia payments does not pertains to business and CIT(A) erred…

City Union Bank Limited, Kumbakonam vs. JCIT, Kumbakonam

In the result, the appeals filed for the assessment year 2007-08 filed by

ITA 2034/CHNY/2014[2007-08]Status: DisposedITAT Chennai28 Dec 2016AY 2007-08

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri V. Vivekanandan, CIT
Section 143(1)Section 143(2)Section 143(3)Section 148Section 194JSection 195JSection 40A

…yees without distinguishing the quality of work of the employees. Whereas, the Ld. CIT(A) has found Rs. 5,60,15,000/- is business expenditure and relied on the decision of the Calcutta High Court in the case of National Engineering Industries Limited Vs. CIT 208 ITR 1002 (Kolkata), similarly, co- ordinate bench of the Tribunal in the case of Lakshmi Vilas Bank Limited and Karur Vysya Bank Limited, where ex-gratia payments are in the nature of Business expenditure u/s. 37(1) of the Act and allowed the assessee claim. The Ld. DR argued that the ex-gratia payments does not pertains to business and CIT(A) erred…

ACIT, Kumbakonam vs. City Union Bank Limited, Kumbakonam

In the result, the appeals filed for the assessment year 2007-08 filed by

ITA 1804/CHNY/2014[2010-11]Status: DisposedITAT Chennai28 Dec 2016AY 2010-11

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri V. Vivekanandan, CIT
Section 143(1)Section 143(2)Section 143(3)Section 148Section 194JSection 195JSection 40A

…yees without distinguishing the quality of work of the employees. Whereas, the Ld. CIT(A) has found Rs. 5,60,15,000/- is business expenditure and relied on the decision of the Calcutta High Court in the case of National Engineering Industries Limited Vs. CIT 208 ITR 1002 (Kolkata), similarly, co- ordinate bench of the Tribunal in the case of Lakshmi Vilas Bank Limited and Karur Vysya Bank Limited, where ex-gratia payments are in the nature of Business expenditure u/s. 37(1) of the Act and allowed the assessee claim. The Ld. DR argued that the ex-gratia payments does not pertains to business and CIT(A) erred…

ACIT, Kumbakonam vs. City Union Bank Limited, Kumbakonam

In the result, the appeals filed for the assessment year 2007-08 filed by

ITA 1803/CHNY/2014[2009-10]Status: DisposedITAT Chennai28 Dec 2016AY 2009-10

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri V. Vivekanandan, CIT
Section 143(1)Section 143(2)Section 143(3)Section 148Section 194JSection 195JSection 40A

…yees without distinguishing the quality of work of the employees. Whereas, the Ld. CIT(A) has found Rs. 5,60,15,000/- is business expenditure and relied on the decision of the Calcutta High Court in the case of National Engineering Industries Limited Vs. CIT 208 ITR 1002 (Kolkata), similarly, co- ordinate bench of the Tribunal in the case of Lakshmi Vilas Bank Limited and Karur Vysya Bank Limited, where ex-gratia payments are in the nature of Business expenditure u/s. 37(1) of the Act and allowed the assessee claim. The Ld. DR argued that the ex-gratia payments does not pertains to business and CIT(A) erred…

ACIT, Kumbakonam vs. City Union Bank Limited, Kumbakonam

In the result, the appeals filed for the assessment year 2007-08 filed by

ITA 1802/CHNY/2014[2008-09]Status: DisposedITAT Chennai28 Dec 2016AY 2008-09

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri V. Vivekanandan, CIT
Section 143(1)Section 143(2)Section 143(3)Section 148Section 194JSection 195JSection 40A

…yees without distinguishing the quality of work of the employees. Whereas, the Ld. CIT(A) has found Rs. 5,60,15,000/- is business expenditure and relied on the decision of the Calcutta High Court in the case of National Engineering Industries Limited Vs. CIT 208 ITR 1002 (Kolkata), similarly, co- ordinate bench of the Tribunal in the case of Lakshmi Vilas Bank Limited and Karur Vysya Bank Limited, where ex-gratia payments are in the nature of Business expenditure u/s. 37(1) of the Act and allowed the assessee claim. The Ld. DR argued that the ex-gratia payments does not pertains to business and CIT(A) erred…

ACIT, Kumbakonam vs. City Union Bank Limited, Kumbakonam

In the result, the appeals filed for the assessment year 2007-08 filed by

ITA 1801/CHNY/2014[2008-09]Status: DisposedITAT Chennai28 Dec 2016AY 2008-09

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri V. Vivekanandan, CIT
Section 143(1)Section 143(2)Section 143(3)Section 148Section 194JSection 195JSection 40A

…yees without distinguishing the quality of work of the employees. Whereas, the Ld. CIT(A) has found Rs. 5,60,15,000/- is business expenditure and relied on the decision of the Calcutta High Court in the case of National Engineering Industries Limited Vs. CIT 208 ITR 1002 (Kolkata), similarly, co- ordinate bench of the Tribunal in the case of Lakshmi Vilas Bank Limited and Karur Vysya Bank Limited, where ex-gratia payments are in the nature of Business expenditure u/s. 37(1) of the Act and allowed the assessee claim. The Ld. DR argued that the ex-gratia payments does not pertains to business and CIT(A) erred…

ACIT, Kumbakonam vs. City Union Bank Limited, Kumbakonam

In the result, the appeals filed for the assessment year 2007-08 filed by

ITA 1671/CHNY/2014[2007-08]Status: DisposedITAT Chennai28 Dec 2016AY 2007-08

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri V. Vivekanandan, CIT
Section 143(1)Section 143(2)Section 143(3)Section 148Section 194JSection 195JSection 40A

…yees without distinguishing the quality of work of the employees. Whereas, the Ld. CIT(A) has found Rs. 5,60,15,000/- is business expenditure and relied on the decision of the Calcutta High Court in the case of National Engineering Industries Limited Vs. CIT 208 ITR 1002 (Kolkata), similarly, co- ordinate bench of the Tribunal in the case of Lakshmi Vilas Bank Limited and Karur Vysya Bank Limited, where ex-gratia payments are in the nature of Business expenditure u/s. 37(1) of the Act and allowed the assessee claim. The Ld. DR argued that the ex-gratia payments does not pertains to business and CIT(A) erred…