Prakash Cotton Mills Pvt. Ltd. v. CIT

201 ITR 684Supreme Court of India1993#766 most cited

What is Prakash Cotton Mills Pvt. Ltd. v. CIT authority for?

Compensatory interest or damages paid for a breach of contract, arising in the normal course of business, are allowable as a deduction under section 37(1) as wholly and exclusively incurred for business purposes. This principle extends to indirect taxes paid in the course of business, which are admissible as business expenditure.

133

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2010 to 2026.

Also referred to as

Prakash Cotton Mills v. CIT · Section 37(1) deduction · business expenditure · compensatory interest · damages for breach of contract · indirect tax · allowability of interest · business expediency · Supreme Court · 201 ITR 684

Sections most often in play

Section 37(1)Section 43BSection 36(1)(va)Section 143(3)Section 41(2)Section 201(1A)Section 41(1)Section 145(3)
Read the full judgment

Issues it is cited on

prohibited by lawinterest under section 201(1a)section 244asection 201(1a)business expediencyemployees contribution to pfinterest on securitiessection 41(1)section 37(1)section 41computer softwareeligible business

Judgments citing Prakash Cotton Mills Pvt. Ltd. v. CIT

Bharat Textiles and Proofing Industries Limited, Chennai vs. ITO, Corp Ward 1(2), Chennai

In the result, appeal filed by the assessee is partly allowed

ITA 1621/CHNY/2024[2017-18]Status: DisposedITAT Chennai18 Sept 2024AY 2017-18

Bench: Shri Aby T. Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita No.1621/Chny/2024 िनधा"रण वष"/Assessment Year: 2017-18 V. M/S.Bharat Textiles & Proofing – The Ito, Industries Ltd., Corporate Ward-1(2), New No.64, Old No.43, Chennai. Sattana Naicken Street, Choolai, Chennai-600 112. [Pan: Aaacb 2540 D] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri D. Anand, AdvocateFor Respondent: Shri R. Bhoopathi, Addl.CIT
Section 36(1)(va)Section 37Section 43B

…ere compensatory in nature and hence allowable u/s.36(1)(va) of the Act. For that we rely on the decision of the Hon’ble Supreme Court in the M/s.Bharat Textiles & Proofing Industries Ltd. :: 6 :: case of Prakash Cotton Mills Pvt. Ltd. v. CIT reported [1993] 201 ITR 684 (SC) wherein the Hon’ble Andhra Pradesh High Court’s decision in the case of CIT v. Hyderabad Allwyn Metal Works Ltd. reported in [1988] 172 ITR 113 (AP-HC) was concurred to. It is noted that the Hon’ble Supreme Court in Prakash Cotton Mills Pvt. Ltd. supra concurred with the view of the Division Bench of the Hon’ble Andhra Pradesh High Court,…

Asiatic Colour Chem Industries Private Ltd., Ahmedabad vs. The Jt.. Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 60/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad11 Sept 2024AY 2015-16

Bench: Ms. Suchitra Kamble (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)

For Appellant: Shri Chetan Agrawal, A.RFor Respondent: Shri Ashesh R. Rewar, Sr. D.R
Section 143(3)Section 40Section 92C

…is an allowable expenditure u/s. 37(1) of the Income Tax Act as held in the Hon’ble Supreme Court decision in case of Prakash I.T.A No. 60/Ahd/2021 A.Y. 2015-16 Page No. 6 Asiatic Colour Chem. Industries Pvt. Ltd. vs. Jt. CIT Cotton Mills Pvt. Ltd. vs. CIT 201 ITR 684 wherein the unauthorized structure has been regulated and was treated as a revenue receipt which has impacted the business of the assessee. Thus, this ground no. 1 of assessee’s appeal is allowed. 8 As regards ground no. 2, the ld. Authorized Representative submitted that while confirming the addition of Rs. 38,72,827/- being adjustment made by…

ACIT 14 (1)(2), Mumbai vs. Shriram Chits Maharastra Limited, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 66/MUM/2024[2017-18]Status: DisposedITAT Mumbai03 Jun 2024AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2017-18

For Appellant: Mr. Raghav MenonFor Respondent: Mr. Ashok Kumar Ambastha, Sr. DR
Section 37(1)

…g on the case of Makalakshmi Sugar Mills Co. also relied on the decision of Makalakshmi Sugar Mills Co. also relied on the decision of the apex court in the cases of Prakash Cotton Mills Pvt. Ltd. t in the cases of Prakash Cotton Mills Pvt. Ltd. V. CIT [1993] 201 ITR 684; Malwa Vansapati and Chemical V. CIT [1993] 201 ITR 684; Malwa Vansapati and Chemical Co. v. CIT [1997] 225 ITR 383 and CIT vs. Ahmedabad Co. v. CIT [1997] 225 ITR 383 and CIT vs. Ahmedabad Cotton Manufacturing Co. Ltd. [1994] 205 ITR 163. In all Cotton Manufacturing Co. Ltd. [1994] 205 ITR 163. In all these cases, the court was concerned with th…

M/S Pothys, Chennai vs. DCIT, Central Circle-1(3), Chennai

The appeal is allowed

ITA 1360/CHNY/2023[2020-21]Status: DisposedITAT Chennai15 May 2024AY 2020-21

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita No. 1360/Chny/2023 (िनधा"रणवष" / Assessment Year: 2020-21) M/S. Pothys, Vs. The Deputy Commissioner Of No.15, Dr.Nageswara Rao Road, Income Tax, T. Nagar, Central Circle 1(3), Chennai – 600 017. Chennai. [Pan: Aaffp 2437B] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri N. Arjun Raj, Advocate For Shri Y. Sridhar, Ca ""यथ" क" ओर से /Respondent By : Shri Ar.V. Srinivasan, Addl. Cit सुनवाई क" तारीख/Date Of Hearing : 09.05.2024 घोषणा क" तारीख /Date Of Pronouncement : 15.05.2024 आदेश / O R D E R Manu Kumar Giri ()

For Appellant: Shri N. Arjun Raj, AdvocateFor Respondent: Shri AR.V. Srinivasan, Addl. CIT
Section 143(3)Section 200Section 206Section 206CSection 234ESection 37Section 91

…e which is of compensatory nature and other of penal nature and subsequently allow the component / penalty of compensatory nature and disallow the penalty of penal nature. 12. The similar view was adopted in the case of Malwa Vanaspati & Chemical Co. v. CIT [225 ITR 383(SC)], where the assessee is required to pay an amount comprising both the elements of compensation and penalty, and further the compensation is allowable as business expenditure, but not the penalty. 13. In the case of M/s Neelkamal Realtors Suburban Pvt. Ltd. Vs The Asst. Commissioner of Income Tax, ITA No. 86/Mum/2021 dated 28.04.2022 at para…

Express Publications (Madurai)Private Ltd., Chennai vs. DCIT, Company Circle-II(1), Chennai

In the result, the appeal stands partly allowed

ITA 805/CHNY/2023[2014-15]Status: DisposedITAT Chennai07 May 2024AY 2014-15

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita No.805/Chny/2023 (िनधा"रणवष" / Assessment Year: 2014-15) Express Publications (Madurai) P. Ltd, Vs. Dcit No.29, Express Garden, Company Circle Ii (1) Second Main Road Industrial Estate, Now Corporate Circle 2 (1) Ambattur, Chennai 600 058. Chennai 600 034. [Pan: Aaaci 0842D] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Ms. Abirami Narendranath, Advocate ""यथ" क" ओर से /Respondent By : Shri Saujanya Ranjan, Irs, Jcit. सुनवाई क" तार"ख/Date Of Hearing : 22.04.2024 घोषणा क" तार"ख /Date Of Pronouncement : 07.05.2024 आदेश / O R D E R Manu Kumar Giri ()

For Appellant: Ms. Abirami Narendranath, AdvocateFor Respondent: Shri Saujanya Ranjan, IRS, JCIT
Section 143(3)Section 14ASection 36(1)(iii)Section 40Section 40a

…Assessing authorities are duty bound to bifurcate the two components of the levy and allow deduction in respect of the element of levy which is compensatory in nature. This is in law laid down by Hon’ble Supreme Court in the case of Prakash Cotton Mills Ltd, 201 ITR 684 by approving the judgment of Hon’ble Andhra Pradesh in the case of Hyderabad Allwyn Metal Works Ltd (supra) and the same ratio was reiterated by the Hon’ble Supreme Court in the case of Swedeshi Cotton Mills Co. Ltd. (supra), in view of the above legal positions, we are of the considered opinion that the matter requires remission to the Assessing…

M/S.G.S. Atwal & Co.(Engg)(P)Ltd, Kolkata vs. DCIT, Cir-11(1), Kolkata

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

ITA 1009/KOL/2023[2018-19]Status: DisposedITAT Kolkata29 Apr 2024AY 2018-19

Bench: Shri Sanjay Garg & Shri Rakesh Mishra

For Appellant: Shri Soumitra Choudhury, Advocate & ShriFor Respondent: Shri B. K. Singh, JCIT, Sr. DR
Section 139(1)Section 143(1)Section 143(3)Section 201Section 36(1)(va)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA Nos.1008 & 1009/KOL/2023 Assessment Years: 2017-18 & 2018-19 M/s. G. S. Atwal & Co. Deputy Commissioner of (Engg.) Pvt. Ltd. Income-tax, Circle-11(1), 4B, Little Russell Street, Vs. Kolkata. Kolkata-700071. (PAN: AABCG0816E) (Appellant) (Respondent) Present for: Appellant by : Shri Soumitra Choudhury, Advocate & Shri Pronabesh Sarkar, Advocate Respondent by : Shri B. K. Singh, JCIT, Sr. DR Date of Hearing : 22.04.2024 Date of Pronouncement : 29.04.2024 O R D E R PER RAKES…

M/S.G.S. Atwal & Co.(Engg) (P)Ltd., Kolkata vs. DCIT, Cir-11(1), Kolkata

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

ITA 1008/KOL/2023[2017-18]Status: DisposedITAT Kolkata29 Apr 2024AY 2017-18

Bench: Shri Sanjay Garg & Shri Rakesh Mishra

For Appellant: Shri Soumitra Choudhury, Advocate & ShriFor Respondent: Shri B. K. Singh, JCIT, Sr. DR
Section 139(1)Section 143(1)Section 143(3)Section 201Section 36(1)(va)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA Nos.1008 & 1009/KOL/2023 Assessment Years: 2017-18 & 2018-19 M/s. G. S. Atwal & Co. Deputy Commissioner of (Engg.) Pvt. Ltd. Income-tax, Circle-11(1), 4B, Little Russell Street, Vs. Kolkata. Kolkata-700071. (PAN: AABCG0816E) (Appellant) (Respondent) Present for: Appellant by : Shri Soumitra Choudhury, Advocate & Shri Pronabesh Sarkar, Advocate Respondent by : Shri B. K. Singh, JCIT, Sr. DR Date of Hearing : 22.04.2024 Date of Pronouncement : 29.04.2024 O R D E R PER RAKES…

Hindustan Coca-Cola Beverages Pvt. Ltd., New Delhi vs. JCIT, Special Range- 4, New Delhi

In the result, Appeals filed by the Assessee in ITA No

ITA 2315/DEL/2019[2012-13]Status: DisposedITAT Delhi05 Mar 2024AY 2012-13

Bench: SHRI M. BALAGANESH (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

…ty which are compensatory in nature are allowable as a deduction u/s 37(1) of the Act, damages which are penal in nature and in respect of infraction of law are not allowable as a business expenditure. In the case of Prakash Cotton Mills P. Ltd. Vs CIT (1996) 201 ITR 684 (SC), Hon'ble Supreme Court held that when a particular component comprises compensatory as well as penal amount, deduction is allowable in respect of amount compensatory in nature only. In these circumstances, it is seen that none of the case laws actually support the contention of the assessee and are in fact, against its stand that traffic cha…

Hindustan Coca-Cola Beverages Pvt. Ltd., New Delhi vs. Addlcit, Special Range-4, New Delhi

In the result, Appeals filed by the Assessee in ITA No

ITA 6506/DEL/2018[2013-14]Status: DisposedITAT Delhi05 Mar 2024AY 2013-14

Bench: SHRI M. BALAGANESH (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

…ty which are compensatory in nature are allowable as a deduction u/s 37(1) of the Act, damages which are penal in nature and in respect of infraction of law are not allowable as a business expenditure. In the case of Prakash Cotton Mills P. Ltd. Vs CIT (1996) 201 ITR 684 (SC), Hon'ble Supreme Court held that when a particular component comprises compensatory as well as penal amount, deduction is allowable in respect of amount compensatory in nature only. In these circumstances, it is seen that none of the case laws actually support the contention of the assessee and are in fact, against its stand that traffic cha…

Addl. CIT, Special Range- 4, New Delhi vs. Hindustan Coca-Cola Beverages Pvt. Ltd., New Delhi

In the result, Appeals filed by the Assessee in ITA No

ITA 6296/DEL/2018[2013-14]Status: DisposedITAT Delhi05 Mar 2024AY 2013-14

Bench: SHRI M. BALAGANESH (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

…ty which are compensatory in nature are allowable as a deduction u/s 37(1) of the Act, damages which are penal in nature and in respect of infraction of law are not allowable as a business expenditure. In the case of Prakash Cotton Mills P. Ltd. Vs CIT (1996) 201 ITR 684 (SC), Hon'ble Supreme Court held that when a particular component comprises compensatory as well as penal amount, deduction is allowable in respect of amount compensatory in nature only. In these circumstances, it is seen that none of the case laws actually support the contention of the assessee and are in fact, against its stand that traffic cha…

Hindustan Coca-Cola Beverages Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 4, New Delhi

In the result, Appeals filed by the Assessee in ITA No

ITA 5925/DEL/2018[2011-12]Status: DisposedITAT Delhi05 Mar 2024AY 2011-12

Bench: SHRI M. BALAGANESH (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

…ty which are compensatory in nature are allowable as a deduction u/s 37(1) of the Act, damages which are penal in nature and in respect of infraction of law are not allowable as a business expenditure. In the case of Prakash Cotton Mills P. Ltd. Vs CIT (1996) 201 ITR 684 (SC), Hon'ble Supreme Court held that when a particular component comprises compensatory as well as penal amount, deduction is allowable in respect of amount compensatory in nature only. In these circumstances, it is seen that none of the case laws actually support the contention of the assessee and are in fact, against its stand that traffic cha…

Addl. CIT, Special Range- 4, New Delhi vs. Hindustan Coca-Cola Beverages Pvt. Ltd., New Delhi

In the result, Appeals filed by the Assessee in ITA No

ITA 5903/DEL/2018[2011-12]Status: DisposedITAT Delhi05 Mar 2024AY 2011-12

Bench: SHRI M. BALAGANESH (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

…ty which are compensatory in nature are allowable as a deduction u/s 37(1) of the Act, damages which are penal in nature and in respect of infraction of law are not allowable as a business expenditure. In the case of Prakash Cotton Mills P. Ltd. Vs CIT (1996) 201 ITR 684 (SC), Hon'ble Supreme Court held that when a particular component comprises compensatory as well as penal amount, deduction is allowable in respect of amount compensatory in nature only. In these circumstances, it is seen that none of the case laws actually support the contention of the assessee and are in fact, against its stand that traffic cha…

DCIT Cir - 3(1), Mumbai vs. M/S. Bajaj Auto Ltd., Mumbai

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 573/MUM/2007[2000-2001]Status: DisposedITAT Mumbai28 Nov 2023AY 2000-2001

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…incidental to carrying on the business and after referring the decision of Hon’ble Supreme Court in the case of P a g e | 49 ITA No. 2125 & 1399/Mum/2005 & ITA No. 3055 & 2655/Mum/2005 A.Y. 1999-2000 & 2000 -2001 Bajaj Auto Limited Prakash Cotton Mills Ltd. (201 ITR 684) submitted that the amount which are compensatory in nature to be allowed. However, the assessing officer has disallowed such claim treating the same as panel in nature. 100. The ld. CIT(A) has allowed the claim in respect of fines paid u/s 112(a) and 125 of the Custom Act 1962 holding that same were venial in nature. The ld. CIT(A) has also con…

M/S. Bajaj Auto Ltd., Mumbai vs. The Dy CIT Cir 3(1), Mumbai

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 3055/MUM/2005[2000-2001]Status: DisposedITAT Mumbai28 Nov 2023AY 2000-2001

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…incidental to carrying on the business and after referring the decision of Hon’ble Supreme Court in the case of P a g e | 49 ITA No. 2125 & 1399/Mum/2005 & ITA No. 3055 & 2655/Mum/2005 A.Y. 1999-2000 & 2000 -2001 Bajaj Auto Limited Prakash Cotton Mills Ltd. (201 ITR 684) submitted that the amount which are compensatory in nature to be allowed. However, the assessing officer has disallowed such claim treating the same as panel in nature. 100. The ld. CIT(A) has allowed the claim in respect of fines paid u/s 112(a) and 125 of the Custom Act 1962 holding that same were venial in nature. The ld. CIT(A) has also con…

The DCIT 3(1), Mumbai vs. M/S. Bajajaj Auto Ltd., Mumbai

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 2655/MUM/2005[2000-2001]Status: DisposedITAT Mumbai28 Nov 2023AY 2000-2001

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…incidental to carrying on the business and after referring the decision of Hon’ble Supreme Court in the case of P a g e | 49 ITA No. 2125 & 1399/Mum/2005 & ITA No. 3055 & 2655/Mum/2005 A.Y. 1999-2000 & 2000 -2001 Bajaj Auto Limited Prakash Cotton Mills Ltd. (201 ITR 684) submitted that the amount which are compensatory in nature to be allowed. However, the assessing officer has disallowed such claim treating the same as panel in nature. 100. The ld. CIT(A) has allowed the claim in respect of fines paid u/s 112(a) and 125 of the Custom Act 1962 holding that same were venial in nature. The ld. CIT(A) has also con…

M/S. Bajaj Auto Ltd., Mumbai vs. The Dy CIT RG 3(1), Mumbai

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 2125/MUM/2005[1999-2000]Status: DisposedITAT Mumbai28 Nov 2023AY 1999-2000

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…incidental to carrying on the business and after referring the decision of Hon’ble Supreme Court in the case of P a g e | 49 ITA No. 2125 & 1399/Mum/2005 & ITA No. 3055 & 2655/Mum/2005 A.Y. 1999-2000 & 2000 -2001 Bajaj Auto Limited Prakash Cotton Mills Ltd. (201 ITR 684) submitted that the amount which are compensatory in nature to be allowed. However, the assessing officer has disallowed such claim treating the same as panel in nature. 100. The ld. CIT(A) has allowed the claim in respect of fines paid u/s 112(a) and 125 of the Custom Act 1962 holding that same were venial in nature. The ld. CIT(A) has also con…

The Dy CIT RG 3(1), Mumbai vs. M/S. Bajaj Auto Ltd, Mumbai

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 1933/MUM/2005[1999-2000]Status: DisposedITAT Mumbai28 Nov 2023AY 1999-2000

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…incidental to carrying on the business and after referring the decision of Hon’ble Supreme Court in the case of P a g e | 49 ITA No. 2125 & 1399/Mum/2005 & ITA No. 3055 & 2655/Mum/2005 A.Y. 1999-2000 & 2000 -2001 Bajaj Auto Limited Prakash Cotton Mills Ltd. (201 ITR 684) submitted that the amount which are compensatory in nature to be allowed. However, the assessing officer has disallowed such claim treating the same as panel in nature. 100. The ld. CIT(A) has allowed the claim in respect of fines paid u/s 112(a) and 125 of the Custom Act 1962 holding that same were venial in nature. The ld. CIT(A) has also con…

M/S. Standard Chartered Bank, Mumbai vs. DDIT (I.T) - 2(1), Mumbai

In the result, the appeal of revenue is partly allowed

ITA 3377/MUM/2006[1998-1999]Status: DisposedITAT Mumbai13 Nov 2023AY 1998-1999

Bench: Shri Vikas Awasthy & Shri Gagan Goyalstandard Chartered Bank Taxation Department, 23-25, M. G. Road, 3Rd Floor, Fort, Mumbai-400 001 Pan: Aabcs4681D ..... Appellant Vs. Ddit (Intl. Tax)-2(1) Scindia House, Ballard Estate, N. M. Marg, Mumbai-400 038 ..... Respondent

For Appellant: Shri Madhur Agarwal, Ld. ARFor Respondent: Shri Anil Sant, Ld. DR
Section 115JSection 145Section 195Section 195(1)Section 250Section 40Section 90(2)

…tenance. 3.3 AO’s contention (Page 27, para 11): The AO relied on the Appellant’s own case Ld. CIT (A) order for A.Y. 1991-92, wherein the Ld. CIT (A) placed reliance on the decision of Hon’ble Apex Court in the case of Prakash Cotton Mills Pvt. Ltd. vs. CIT 201 ITR 684 and held that the payment of penal interest is not compensatory but penal in nature and disallowed the same under section 37(1) of the Act. 3.4 CIT(A)’s decision (Page 23, para 9) The Ld. CIT(A) followed its decision for the A.Y. 1995-96 in the Appellant’s own case, wherein it was held that such payment made to RBI is compensatory in nature and…

Expat Engineering India Limited, Bengaluru vs. ACIT, Circle-2(1)(2), Bengaluru

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

ITA 34/BANG/2023[2014-15]Status: DisposedITAT Bangalore09 Nov 2023AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2014-15

For Appellant: Shri Ravi Shankar, A.RFor Respondent: Shri Parithivel, D.R
Section 143Section 250

…of his submission that the interest paid by the assessee was merely compensatory in character besides relying on the case of Makalakshmi Sugar Mills Co. also relied on the decision of the apex court in the cases of Prakash Cotton Mills Pvt Ltd. v. CIT [1993] 201 ITR 684; Malwa Vanaspati and Chemical Co. v. CIT [1997] 225 ITR 383 and CIT v. Ahmedabad Cotton Manufacturing Co. Ltd. [1994] 205 ITR 163. In all these cases, the court was concerned with an indirect tax payable by the assessee in the course of its business and admissible as business expenditure. Further liability for interest which had been incurred by…

Flemingo Dutyfree Shop Pvt Ltd, Mumbai vs. DCIT, Cen-Cir-8(4), Mumbai

In the result, the appeal of the assessee is dismissed

ITA 2218/MUM/2023[2016-2017]Status: DisposedITAT Mumbai16 Oct 2023AY 2016-2017

Bench: Shri Aby T Varkey & Shri Amarjit Singhflemingo Dutyfree Shop Vs. Dcit, Central Circle-8(4) Private Limited, 6Th Floor, Aayakar D-73/1 Ttc D-73/1 Ttc Bhavan, M.K. Road, Industrial Area, New Marine Lines, Midc Turbhe, Churchgate, Navi Mumbai – 400705 Mumbai – 400 020 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacf7909E Appellant .. Respondent [ Appellant By : J.P. Baragra Respondent By : Ujjawal Kumar Chavan Date Of Hearing 26.09.2023 Date Of Pronouncement 16.10.2023

For Appellant: J.P. BaragraFor Respondent: Ujjawal Kumar Chavan
Section 143(2)Section 201Section 37(1)

…rely compensatory in character besides P a g e | 6 Flemingo Dutyfree Shop Pvt. Ltd. Vs. DCIT, CC-8(4) relying on the case of Makalakshmi Sugar Mills Co. also relied on the decision of the apex court in the cases of Prakash Cotton Mills Pvt Ltd. v. CIT [1993] 201 ITR 684 ; Malwa Vanaspati and Chemical Co. v. CIT [19971 225 ITR 383 and CITv. Ahmedabad Cotton Manufacturing Co. Ltd. [1994] 205 ITR 163. In all these cases, the court was concerned with an indirect tax payable by the assessee in the course of its business and admissible as business expenditure. Further liability for interest which had been incurred by…