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.

How many judgments cite Prakash Cotton Mills Pvt. Ltd. v. CIT?

133 judgments on BharatTax cite Prakash Cotton Mills Pvt. Ltd. v. CIT (201 ITR 684), spanning 2010 to 2026.

Which sections of the Income Tax Act does Prakash Cotton Mills Pvt. Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 37(1), Section 43B, Section 36(1)(va), Section 143(3), Section 41(2), Section 201(1A).

Prakash Cotton Mills Pvt. Ltd. v. CIT (201 ITR 684)

DCIT, New Delhi vs. M/S. Bses Yamuna Power Ltd., Delhi

In the result appeal filed by revenue stands dismissed

ITA 3800/DEL/2015[2008-09]Status: DisposedITAT Delhi08 Feb 2019AY 2008-09

Bench: Smt. Beena A Pillai & Shri Prashant Maharishiay: 2008-09

For Appellant: Sh. Rohit Jain, AdvFor Respondent: Sh. JK Mishra, CIT, DR

Section 143(2)

…nsation paid in the regular course of business, which was purely compensatory in nature and cannot, be disallowed under section 37 of the Act. Reliance in this regard has been placed by the Learned AR on the following decisions: Prakash Cotton Mills vs. CIT: 201 ITR 684 (SC) - CIT vs. Indian Copper Corporation Ltd.: 161 ITR 327 (Pat) - CIT vs. Grand Cashew Corporation: 182 ITR 216 (Ker) - Jama Auto Industries vs. CIT: 299 ITR 92 (P&H) - CIT vs. Hindustan Copper Ltd.: 55 Taxman 392 (Cal) - CIT vs. Todi Tea Col. Ltd: 239 ITR 28 (Cal.) - G.L. Rexroth Industries Ltd. vs. DCIT: 59 TTJ 757 (Ahd.) - CIT vs. Deverson…

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)

…tioned in its submissions. The AR’s argument that such damages are business expenditure incurred on account 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 quest…

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)

…tioned in its submissions. The AR’s argument that such damages are business expenditure incurred on account 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 quest…

DCIT, CC-1(3), Kolkata vs. M/S Bonai Industrial Company Ltd., Kolkata

In the result, the appeals filed by the Revenue (in ITA no

ITA 1533/KOL/2017[2014-15]Status: DisposedITAT Kolkata10 Oct 2018AY 2014-15

Bench: Shria. T. Varkey, J.M &Dr. A.L.Saini, A.M आयकरअपीलसं./Ita No.1533/Kol/2017 ("नधा"रणवष" / Assessment Year: 2014-15) Dcit, Cc-1(3)/Kolkata Vs. M/S. Bonai Industrial Company Ltd. Aayakar Bhawan Poorva, 3Rd Floor, 8A, Express Tower, 42A, Shakespeare 110-Shantipally, Kolkata – 700 107. Sarani, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aaacb 9156 F (Appellant) .. (Respondent) & आयकरअपीलसं./Ita No.1532/Kol/2017 ("नधा"रणवष" / Assessment Year: 2014-15) Dcit, Cc-1(3)/Kolkata Vs. M/S. Feegrade & Company Pvt. Ltd. Aayakar Bhawan Poorva, 3Rd Floor, 8A, Express Tower, 42A, Shakespeare 110-Shantipally, Kolkata – 700 107. Sarani, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aaacf 6825 D (Appellant) .. (Respondent) Appellant By :Shri A. Bhattacharjee, Addl. Cit Respondent By :Shri Subash Agarwal, Advocate सुनवाईक"तार"ख/ Date Of Hearing : 04/10/2018 घोषणाक"तार"ख/Date Of Pronouncement : 10/10/2018 आदेश / O R D E R Per Dr. A. L. Saini: These Two Appeals Filed By The Revenue, Pertaining To Assessment Year 2014-15 Are Directed Against Separate Orders Passed By The Ld. Commissioner Of Income Tax(Appeals)-20, Kolkata,Which In Turn Arise Out Of Separate Assessment M/S. Bonai Industrial Company Ltd M/S. Feegrade& Company Pvt. Ltd. Assessment Year: 2014-15 Orders Passed By The Assessing Officer U/S 143(3) Of The Income Tax Act 1961 (Hereinafter Referred To As The ‘Act’).

For Appellant: Shri A. Bhattacharjee, Addl. CITFor Respondent: Shri Subash Agarwal, Advocate

Section 143(3)Section 14ASection 73

…avour of the assessee by the decision of ITAT Mumbai bench in the case of Taurian Iron & Steel Co.(P)Ltd (supra). In the aforesaid decision the Hon’ble ITAT after considering the decision of the Hon’ble Supreme Court in the case of Prakash Cotton Mills P.Ltd. 201 ITR 684 (SC) and also the nature of railway punitive charges held that the payments made to the railways for overloading of the wagons is compensatory in nature and cannot be disallowed under Explanation to Section 37(1) of the Act. The other decisions relied upon by the assessee supports the plea of the assessee and where the decisions rendered in the c…

DCIT, CC-1(3), Kolkata vs. M/S Feegrade & Company Pvt. Ltd., Kolkata

In the result, the appeals filed by the Revenue (in ITA no

ITA 1532/KOL/2017[2014-15]Status: DisposedITAT Kolkata10 Oct 2018AY 2014-15

Bench: Shria. T. Varkey, J.M &Dr. A.L.Saini, A.M आयकरअपीलसं./Ita No.1533/Kol/2017 ("नधा"रणवष" / Assessment Year: 2014-15) Dcit, Cc-1(3)/Kolkata Vs. M/S. Bonai Industrial Company Ltd. Aayakar Bhawan Poorva, 3Rd Floor, 8A, Express Tower, 42A, Shakespeare 110-Shantipally, Kolkata – 700 107. Sarani, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aaacb 9156 F (Appellant) .. (Respondent) & आयकरअपीलसं./Ita No.1532/Kol/2017 ("नधा"रणवष" / Assessment Year: 2014-15) Dcit, Cc-1(3)/Kolkata Vs. M/S. Feegrade & Company Pvt. Ltd. Aayakar Bhawan Poorva, 3Rd Floor, 8A, Express Tower, 42A, Shakespeare 110-Shantipally, Kolkata – 700 107. Sarani, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aaacf 6825 D (Appellant) .. (Respondent) Appellant By :Shri A. Bhattacharjee, Addl. Cit Respondent By :Shri Subash Agarwal, Advocate सुनवाईक"तार"ख/ Date Of Hearing : 04/10/2018 घोषणाक"तार"ख/Date Of Pronouncement : 10/10/2018 आदेश / O R D E R Per Dr. A. L. Saini: These Two Appeals Filed By The Revenue, Pertaining To Assessment Year 2014-15 Are Directed Against Separate Orders Passed By The Ld. Commissioner Of Income Tax(Appeals)-20, Kolkata,Which In Turn Arise Out Of Separate Assessment M/S. Bonai Industrial Company Ltd M/S. Feegrade& Company Pvt. Ltd. Assessment Year: 2014-15 Orders Passed By The Assessing Officer U/S 143(3) Of The Income Tax Act 1961 (Hereinafter Referred To As The ‘Act’).

For Appellant: Shri A. Bhattacharjee, Addl. CITFor Respondent: Shri Subash Agarwal, Advocate

Section 143(3)Section 14ASection 73

…avour of the assessee by the decision of ITAT Mumbai bench in the case of Taurian Iron & Steel Co.(P)Ltd (supra). In the aforesaid decision the Hon’ble ITAT after considering the decision of the Hon’ble Supreme Court in the case of Prakash Cotton Mills P.Ltd. 201 ITR 684 (SC) and also the nature of railway punitive charges held that the payments made to the railways for overloading of the wagons is compensatory in nature and cannot be disallowed under Explanation to Section 37(1) of the Act. The other decisions relied upon by the assessee supports the plea of the assessee and where the decisions rendered in the c…

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)

…to allow deduction u/s. 37(1) of the Income Tax Act whenever such examination reveals the concerned impost to be purely compensatory in nature. “ The Hon’ble Supreme Court reiterated the same legal position in the case of Prakash Cotton Mills Pvt. Ltd (1993) 201 ITR 684. In the case of Hero Cycles Ltd 178 Taxman 484, the Hon’ble Punjab & Haryana High Court allowed the deduction of the amount paid to the Electricity Board as penalty for violation of power regulations, ie. Extra charges paid for drawing extra load in peak hours. In the case of Western Coalfields Ltd (2009) 124 TTJ (Nag) 659, the Hon’ble ITAT, Nagp…

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

…learly 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 pointed out that on the death of founder of assessee, some share…

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

…learly 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 pointed out that on the death of founder of assessee, some share…

M/S Emm Kay Industries Limited, Jalandhar vs. Assistant Commissioner of Income Tax, Central Circle-II, Jalandhar

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

ITA 672/ASR/2017[2006-07]Status: DisposedITAT Amritsar05 Jul 2018AY 2006-07

Bench: Sh. Sanjay Arora & Sh. N.K.Choudhryita No.672(Asr)/2017 Assessment Year:2006-07

For Appellant: Sh. Sandeep Vijh (Ld. CA)For Respondent: Sh. Sandeep Chauhan (Ld. DR)

Section 153ASection 250(6)

…IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. SANJAY ARORA, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA No.672(Asr)/2017 Assessment Year:2006-07 M/s. Emm Kay Industries Vs. Asst. CIT Limited Central Circle-II D-29, Focal Point, Jalandhar Jalandhar PAN:AAACE 3104E (Appellant) (Respondent) Appellant by: Sh. Sandeep Vijh (Ld. CA) Respondent by: Sh. Sandeep Chauhan (Ld. DR) Date of hearing: 26.06.2018 Date of pronouncement:05.07.2018 ORDER PER N.K.CHOUDHRY, JM: The instant appeal has been preferred by the Assessee/Appellant, on feeling aggrieved against the order dat…

Microsec Insurance Brokers Ltd., Kolkata vs. ITO, WD-7(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1345/KOL/2016[2010-2011]Status: DisposedITAT Kolkata24 May 2018AY 2010-2011

Bench: Shri P.M. Jagtap, Am] I.T.A. No. 1345/Kol/2016 Assessment Year: 2010-11 Microsec Insurance Brokers Ltd.................................………………………………………Appellant Shivam Chambers, 53, Syed Amir Ali Avenue, Kolkata – 700 019. [Pan: Aadcm 3059 K] Ito Ward 7(1) Kolkata...................……………………………………………....................Respondent Aayakar Bhawan, P-7, Chowringhee Square, Kolkata – 700 069. Appearances By: Shri Akkal Dudhwewala, Advocate Appearing On Behalf Of The Assessee. Shri Alok Nag, Addl. Cit Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : April 09, 2018 Date Of Pronouncing The Order : May 24, 2018 Order This Appeal Filed By The Assessee Is Directed Against The Order Of Ld. Cit (Appeals) – 18, Kolkata Dated 15.04.2016 & The Solitary Issue Involved Therein Relates To The Disallowance Of Rs. 5,00,000/- Made By The A.O. & Confirmed By The Ld. Cit(A) On Account Of Penalty Charges Paid To Insurance Regularly & Development Authority “(Irda)”.

Section 143(3)

…A.O. on account of penalty charges for the following reasons given in his impugned order: “I have carefully considered the facts of the case and the submission of the assessee and the case laws relied upon. In the case of Prakash Cotton Mills Pvt. Ltd. vs CIT 201 ITR 684, Hon’ble Supreme Court has held that whenever a statutory levy paid by assessee by way of damages or penalty or interest is claimed as an allowable expenditure, the A.O. is required to examine whether it is compensatory or penal in nature. If the levy is compensatory in nature then this may be allowed as expenditure. Keeping this in mind now let…

DCIT 2(2), Mumbai vs. Paresh Construction & Foundations P.Ltd, Mumbai

ITA 6850/MUM/2012[2008-09]Status: DisposedITAT Mumbai04 Apr 2018AY 2008-09

For Appellant: Shri Vipul JoshiFor Respondent: Shri Rajat Mittal - DR

Section 143(1)Section 143(3)Section 254(1)

…at the assessee had used the machinery for the purpose which was not committed by law, that it was violation of one of the conclusions imposed on it for acquiring machines. We refer to M/s. Paresh Constructions & Foundations the case of Prakash Cotton Mills (201 ITR 684) and Meddi Venkatram & Company Pvt. Ltd., (229 ITR 534) and confirmed the order of AO. 6.2.Before us,the AR submitted the assessee had approached the Settlement Commission of Customs and Central Excise,that the commission had deleted the penalty,that interest was levied for the violation of the conditions for the imported machinery,that the one…

JCIT (OSD) 9(1)(2), Mumbai vs. Aptech Ltd, Mumbai

In the result, this appeal filed by the Revenue is partly allowed for statistical purposes

ITA 3369/MUM/2016[2007-08]Status: DisposedITAT Mumbai01 Mar 2018AY 2007-08

Bench: Shri Shamim Yahya, Am & Shri Ram Lal Negi, Jm आयकर अपील सं./I.T.A. No.3369/Mum/2016 ("नधा"रण वष" / Assessment Year: 2007-08) Dy. Cit-9(1)(2), M/S. Aptech Limited बनाम/ Room No. 260A, 2Nd Floor, A-65, Aptech House, Midc, Aayakar Bhavan, M. K. Road, Andheri (E), Mumbai-400 093 Vs. Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aadca 0602 L (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Ram Tiwari ""यथ" क" ओर से/Respondent By : Shri Rutuja Pawar सुनवाई क" तार"ख / : 04.01.2018 Date Of Hearing घोषणा क" तार"ख / : 01.03.2018 Date Of Pronouncement आदेश / O R D E R Per Shamim Yahya, A. M.: This Appeal By The Revenue Is Directed Against The Order By The Commissioner Of Income Tax (Appeals) Dated 29.04.2014 & Pertains To The Assessment Year 2007- 08. 2. The Grounds Of Appeal Read As Under: I) “Whether On The Facts & In The Circumstances Of The Case, The Ld. Cit- (A) Erred In Deleting The Penalty On The Issue Of Provision For Rebate Claimed Without Appreciating The Fact That The Same Was A Mere Provision & Was 2 Dy. Cit Vs. M/S. Aptech Limited Patently Not Allowable Which Amounts To Furnishing Inaccurate Particulars In The Return Of Income, Thus Liable For Penalty?" Ii) “'Whether On The Facts & In The Circumstances Of The Case, The Ld. Cit- (A) Erred In Deleting The Penalty On The Issue Of Provision For Leave Encashment Without Appreciating The Fact That The Same Was Not Paid Before The Due Date Of Filing Of Return Of Income As Mandated By Clause (F) Of Section 43B Of The It, Act, Thereby Making A Claim Which Is Patently Inaccurate, Hence Liable For Penalty?" '

For Appellant: Shri Ram TiwariFor Respondent: Shri Rutuja Pawar

Section 271(1)(c)Section 36(2)Section 43B

…of infrastructure, faculty absenteeism etc. The assessee submitted that this loss was incurred in the ordinary course of conduct of its business. For its claim of rebate, the assessee relied on the decisions in the cases of Prakash Cotton Mills Pvt Ltd v CIT 201 ITR 684 (SC);CIT v RD Sharam & Co. 137 ITR 333 (Bom) and Jamna Auto Industries v CIT 299 ITR 92 (P & H). However, the Assessing Officer held that the claim of the assessee is in the nature of contingent liability as the contractual liability crystallizes only when the assessee agrees to pay. During the course of appeal before the ld. Commissioner of I…

DCIT, CC-1(3), Kolkata vs. M/S. Bonai Industrial Company Limited, Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 1655/KOL/2016[2013-14]Status: DisposedITAT Kolkata09 Feb 2018AY 2013-14

Bench: Shri Aby.T Varkey & Shri Waseem Ahmedassessment Year :2013-14

Section 143(3)Section 37(1)Section 73

…has to allow deduction u/s 37(1) of the Income Tax Act whenever such examination reveals the concerned impost to be purely compensatory in nature". The Hon'ble Supreme Court reiterated the same legal position in the case of Prakash Cotton Mills Pvt Ltd (1993) 201 ITR 684. In the case of Hero Cycles Ltd 178 Taxman 484, the Hon'ble Punjab & Haryana High Court allowed the deduction of the amount paid to the Electricity Board as penalty for violation of power regulations, i.e. extra charges paid for drawing extra load in peak hours. In the case of Western Coalfields Ltd (2009) 124 TTJ (Nag) 659, the ITA No.1655/Kol/2…

DCIT, CC-1(3), Kolkata vs. M/S Feegrade & Company Ltd., Kolkata

In the result the appeal by the revenue is dismissed

ITA 1654/KOL/2016[2013-14]Status: DisposedITAT Kolkata10 Jan 2018AY 2013-14

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ] Assessment Year : 2013-14

For Appellant: Shri Arindam Bhattacharjee, Addl.CITFor Respondent: Shri Subash Agarwal, Advocate

Section 143(3)Section 3Section 37(1)Section 73

…l not be applicable. In the decision relied upon by CIT(A) there is also a discussion about the notification issued by the railway ministry of overloading charges and also the decision of the Hon’ble Supreme Court in the case of Prakash Cotton Mills Pvt. Ltd. 201 ITR 684 (SC) and the decision of the Hon’ble Punjab and Haryana High Court in the case of Hero Cycles Ltd. 178 Taxmann 484 (P&H). Reference was also made to the decision of ITAT Nagpur bench in the case of Western Coalfields Ltd (2009) 124 TTJ (Nag) 659. In the decision last cited on the same nature of expenses namely compensatory charges to the railways…

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

In the result the appeal by the revenue is dismissed

ITA 1653/KOL/2016[2013-14]Status: DisposedITAT Kolkata10 Jan 2018AY 2013-14

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ] Assessment Year : 2013-14

For Appellant: Shri A.K.Tiwari, CITFor Respondent: Shri Subash Agarwal, Advocate

Section 143(3)Section 3Section 37(1)Section 73

…l not be applicable. In the decision relied upon by CIT(A) there is also a discussion about the notification issued by the railway ministry of overloading charges and also the decision of the Hon’ble Supreme Court in the case of Prakash Cotton Mills Pvt. Ltd. 201 ITR 684 (SC) and the decision of the Hon’ble Punjab and Haryana High Court in the case of Hero Cycles Ltd. 178 Taxmann 484 (P&H). Reference was also made to the decision of ITAT Nagpur bench in the case of Western Coalfields Ltd (2009) 124 TTJ (Nag) 659. In the decision last cited on the same nature of expenses namely compensatory charges to the railways…

DCIT, CC-193, Kolkata vs. M/S Rungta Sons Private Ltd., Kolkata

In the result the appeal by the revenue is dismissed

ITA 1652/KOL/2016[2013-14]Status: DisposedITAT Kolkata10 Jan 2018AY 2013-14

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ] Assessment Year : 2013-14

For Appellant: Shri Arindam Bhattacharjee, Addl. CITFor Respondent: Shri Subash Agarwal, Advocate

Section 143(3)Section 3Section 37(1)Section 73

…l not be applicable. In the decision relied upon by CIT(A) there is also a discussion about the notification issued by the railway ministry of overloading charges and also the decision of the Hon’ble Supreme Court in the case of Prakash Cotton Mills Pvt. Ltd. 201 ITR 684 (SC) and the decision of the Hon’ble Punjab and Haryana High Court in the case of Hero Cycles Ltd. 178 Taxmann 484 (P&H). Reference was also made to the decision of ITAT Nagpur bench in the case of Western Coalfields Ltd (2009) 124 TTJ (Nag) 659. In the decision last cited on the same nature of expenses namely compensatory charges to the railways…

M/S. Lumax Industries Ltd., New Delhi vs. JCIT, New Delhi

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

ITA 6961/DEL/2014[2010-11]Status: DisposedITAT Delhi05 Dec 2017AY 2010-11

Bench: Shri R. K. Panda & Shri Kuldip Singhassessment Year : 2010-11 Lumax Industries Ltd., Jcit, Range- 4, B-85/86, Mayapuri Industrial New Delhi. Vs. Area, Phase-1, New Delhi. Pan : Aaacl1126D (Appellant) (Respondent)

For Appellant: Shri Pradeep Dinodia, AdvFor Respondent: Shri H. K. Choudhary, CIT-DR

Section 143(3)

…and is not for infraction of any law and, therefore, is an allowable expenditure u/s 37 of the I.T. Act. For the above proposition, he relied on the decision of the Hon’ble Supreme Court in the case of (i) Prakash Cotton Mills Pvt. Ltd. vs. CIT reported in 201 ITR 684, (ii) Lachmandas Mathuradas vs. CIT reported in 254 ITR 799 and various other decisions as mentioned in the Paper Book. 25. Ld. DR on the other hand heavily relied on the order of the Assessing Officer/TPO/DRP. 26. After hearing both the sides, we find the assessee had claimed expenses on account of interest paid on belated payment of excis…

DCIT, Hassan vs. M/S Sujatha Narayan & Associates, Hassan

In the result, the appeals of the assessee are partly allowed for statistical purposes and that of the revenue are dismissed

ITA 71/BANG/2011[2005-06]Status: DisposedITAT Bangalore06 Jan 2017AY 2005-06

Bench: Shri Sunil Kumar Yadav & Shri S. Jayaraman

For Appellant: Shri A. Shankar, AdvocateFor Respondent: Shri G.R. Reddy, CIT(DR)(ITAT)-1

Section 148Section 234BSection 30Section 40Section 40A(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ITA Nos.51 to 53/Bang/2011 Assessment years : 2005-06 to 2007-08 M/s. Sujatha Narayan & Associates, Vs. The Additional Commissioner of “Gangadhareswara Nilaya”, Income Tax, No.65/14, Post Box No.32, Hassan Range, B.M. Road, Hassan. Hassan – 573 201. PAN: ABBFS 1226J APPELLANT RESPONDENT ITA Nos.71 to 73/Bang/2011 Assessment years : 2005-06 to 2007-08 The Deputy Commissioner of Vs. M/s. Sujatha Narayan & Income Tax, Associates, Circle 1, Hassan – 573 201. PAN: ABBFS…

M/S. Sujatha Narayanan & Associates, Hassan vs. ACIT, Hassan

In the result, the appeals of the assessee are partly allowed for statistical purposes and that of the revenue are dismissed

ITA 51/BANG/2011[2005-06]Status: DisposedITAT Bangalore06 Jan 2017AY 2005-06

Bench: Shri Sunil Kumar Yadav & Shri S. Jayaraman

For Appellant: Shri A. Shankar, AdvocateFor Respondent: Shri G.R. Reddy, CIT(DR)(ITAT)-1

Section 148Section 234BSection 30Section 40Section 40A(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ITA Nos.51 to 53/Bang/2011 Assessment years : 2005-06 to 2007-08 M/s. Sujatha Narayan & Associates, Vs. The Additional Commissioner of “Gangadhareswara Nilaya”, Income Tax, No.65/14, Post Box No.32, Hassan Range, B.M. Road, Hassan. Hassan – 573 201. PAN: ABBFS 1226J APPELLANT RESPONDENT ITA Nos.71 to 73/Bang/2011 Assessment years : 2005-06 to 2007-08 The Deputy Commissioner of Vs. M/s. Sujatha Narayan & Income Tax, Associates, Circle 1, Hassan – 573 201. PAN: ABBFS…

DCIT 4(2)(1), Mumbai vs. Pranav Securities P.Ltd, Mumbai

The appeal of the revenue stands dismissed

ITA 1144/MUM/2015[2011-12]Status: DisposedITAT Mumbai20 Dec 2016AY 2011-12

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am)

For Appellant: Ms.Mahua Sarkar

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

…r the statutory scheme enables incurring of such expenditure in the course of assessee's business - CIT v. Ahmedabad Cotton Mfg. Co. Ltd. 71 Taxman 56/[1994] 205 [ER 163 (SC).  The Hon’ble Apex Court in the case of Prakash Cotton Mills (P) Ltd V/s CIT (1993) 201 ITR 684 has been held that, “whenever any statutory impost paid by an Assessee by way of damages or penalty or interest is claimed as a allowable expenditure under section 37(1) of the Act, the assessing authority is required to examine the scheme of the provisions of the relevant stature providing for payment of such impost notwithstanding the nomenclat…

Prakash Cotton Mills Pvt. Ltd. v. CIT

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