What is Punjab Stainless Steel Inds v. CIT authority for?

This case establishes that merely having sufficient interest-free own funds does not automatically prevent interest disallowance on interest-free advances; the assessee must affirmatively prove the business or commercial expediency of such advances.

How many judgments cite Punjab Stainless Steel Inds v. CIT?

66 judgments on BharatTax cite Punjab Stainless Steel Inds v. CIT (324 ITR 396), spanning 2017 to 2025.

Which sections of the Income Tax Act does Punjab Stainless Steel Inds v. CIT come up under?

It is most often cited in judgments turning on Section 36(1)(iii), Section 37(1), Section 57(iii), Section 143(3), Section 153A, Section 2(28A).

Punjab Stainless Steel Inds v. CIT (324 ITR 396)

THE DY.CIT, CENTRAL CIRCLE-1, VADODARA vs. PAWAN EDIFICE PVT. LTD., VADODARA

Appeals are partly allowed for\nstatistical reasons

ITA 529/AHD/2023[2013-14]Status: DisposedITAT Ahmedabad20 Aug 2025AY 2013-14

For Appellant: \nMs. Amrin Pathan, ARFor Respondent: \nShri Ashok Kumar Suthar, Sr. DR

Section 115JSection 139(1)Section 143(2)Section 143(3)Section 14ASection 36Section 68Section 80G

…\npresumption can be rebutted only by cogent evidence showing that the\nadvances were either made from non-interest-bearing funds or were for\npurposes of commercial expediency. The Hon'ble Delhi High Court in\nPunjab Stainless Steel Industries v. ACIT [2011] 324 ITR 396 (Del) has also\nemphasised that even the availability of sufficient own funds does not, by\nitself, absolve the assessee from establishing the business purpose of the\nadvances; the element of commercial expediency must be affirmatively\nproved. In fact, the learned CIT(A) has rightly placed reliance on the ratio\nlaid down by these judicial prec…

PAWAN EDIFICE PVT. LTD.,VADODARA vs. THE DY.CIT, CIRCLE-2(1)(2), VADODARA

ITA 477/AHD/2023[2013-14]Status: DisposedITAT Ahmedabad20 Aug 2025AY 2013-14

For Appellant: Ms. Amrin Pathan, ARFor Respondent: Shri Ashok Kumar Suthar, Sr. DR

Section 115JSection 139(1)Section 143(2)Section 143(3)Section 14ASection 36Section 68Section 80G

…This presumption can be rebutted only by cogent evidence showing that the advances were either made from non-interest-bearing funds or were for purposes of commercial expediency. The Hon'ble Delhi High Court in Punjab Stainless Steel Industries v. ACIT [2011] 324 ITR 396 (Del) has also emphasised that even the availability of sufficient own funds does not, by itself, absolve the assessee from establishing the business purpose of the advances; the element of commercial expediency must be affirmatively proved. In fact, the learned CIT(A) has rightly placed reliance on the ratio laid down by these judicial precedent…

DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(3), MUMBAI, MUMBAI vs. PRATEEK APPARELS PRIVATE LIMITED, KARNATAKA

In the result, appeals of the Revenue in ITA No

ITA 3099/MUM/2025[2018-19]Status: DisposedITAT Mumbai04 Aug 2025AY 2018-19

For Appellant: \nShri Shankarlal Jain & Shri Satish KumarFor Respondent: \nShri R A Dhyani, (CIT DR)

Section 132Section 143(3)Section 153ASection 36(1)(iii)

…112,44,60,945/-\nas against capital and free reserves as on 31.03.2017 of\nRs.112,30,75,200/-.No borrowed fund was used for advancing loans. It\nwas submitted that the AO has relied upon the decision of Punjab High\nCourt in case of Punjab Stainless Steel Ltd 324 ITR 396 (Delhi)\nand of High Court of Madras in case of K. Somasundaram &\nBrothers 238 ITR 939 (Madras). However, High Court of Punjab,\nitself, has recently considered a similar issue in case of CIT vs. Max\nIndia Ltd 398 ITR 209 (P&H). The Tribunal in that case held\ninterest free funds available were sufficient for interest free loans and\nadvances a…

DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -3(3), MUMBAI vs. PRATEEK APPARELS PRIVATE LIMITED, KARNATAKA

In the result, appeals of the Revenue in ITA No

ITA 2936/MUM/2025[2014-15]Status: DisposedITAT Mumbai04 Aug 2025AY 2014-15

For Appellant: \nShri Shankarlal Jain & Shri Satish KumarFor Respondent: \nShri R A Dhyani, (CIT DR)

Section 132Section 143(3)Section 153ASection 36(1)(iii)

…112,44,60,945/-\nas against capital and free reserves as on 31.03.2017 of\nRs.112,30,75,200/-.No borrowed fund was used for advancing loans. It\nwas submitted that the AO has relied upon the decision of Punjab High\nCourt in case of Punjab Stainless Steel Ltd 324 ITR 396 (Delhi)\nand of High Court of Madras in case of K. Somasundaram &\nBrothers 238 ITR 939 (Madras). However, High Court of Punjab,\nitself, has recently considered a similar issue in case of CIT vs. Max\nIndia Ltd 398 ITR 209 (P&H). The Tribunal in that case held\ninterest free funds available were sufficient for interest free loans and\nadvances a…

GAYATRI ENERGY VENTURES PRIVATE LIMITED,HYDERABAD vs. ACIT., CIRCLE-2(1), HYDERABAD

In the result, appeal of the Assessee is allowed

ITA 467/HYD/2025[2018-19]Status: DisposedITAT Hyderabad07 Jul 2025AY 2018-19

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA KC Devdas & CA Swapnil DeshukhFor Respondent: Shri B Bala Krishna, CIT-DR

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “A” BENCH: HYDERABAD BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER ITA.No.467/Hyd./2025 Assessment Year 2018-2019 M/s. Gayatri Energy Ventures Private Limited, The ACIT, Circle-2(1), vs. Hyderabad – 500 082. Hyderabad. PAN AADCG1029R (Appellant) (Respondent) For Assessee : CA KC Devdas & CA Swapnil Deshukh For Revenue : Shri B Bala Krishna, CIT-DR Date of Hearing : 17.06.2025 Date of Pronouncement : 07.07.2025 ORDER PER MANJUNATHA G. : The above appeal has been filed by the Assessee against the order dated 23.02.2024 of the learn…

KIRI INDUSTRIES LIMITED,AHMEDABAD vs. THE DY.CIT, CIRCLE-2(1)(1), AHMEDABAD

In the result, appeal of the assessee is partly allowed

ITA 1513/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad19 Dec 2024AY 2018-19

Bench: Dr.Brr Kumarshri Tr Senthil Kumar

For Appellant: Shri Tushar Hemani, Sr. Advocate with Shri Parimalsinh B Parmar, ARFor Respondent: Shri Rignesh Das, Sr. DR

Section 14ASection 234ASection 270ASection 36(1)(iii)Section 36(1)(va)Section 40

…been incurred under any legal obligation, but yet it is allowable as a business expenditure, if it was incurred on grounds of commercial expediency". Further, following this judgment the High Court of Delhi, in the case of Punjab Stainless Steel Inds. Vs. CIT 324 ITR 396, has further elaborated "The commercial expediency would include such purpose as is expected by the assessee to advance its business interest and may include measures taken for preservation, protection or advancement of its business interests, which has to be distinguished from the personal interest of its directors or partners, as the case may b…

MAGENDRA SINGH RATHORE,ALWAR vs. DCIT CENTRAL CIRCLE-2, JAIPUR

In the result the appeal of the assessee is partly allowed

ITA 483/JPR/2024[2017-18]Status: DisposedITAT Jaipur23 Sept 2024AY 2017-18

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Mahendra Gargiya (Adv.) &For Respondent: Shri Anup Singh (Addl. CIT)

Section 143(3)Section 234ASection 36(1)(iii)Section 57

…he expression "for the purpose of business" includes expenditure voluntarily incurred for commercial expediency, and it is immaterial if a third party also benefits thereby.” 6.2 The Hon’ble Delhi High Court, in the case of PunjabStainless Steel Inds. Vs. CIT 324 ITR 396, has further elaborated stating that: “The commercial expediency would include suchpurpose as is expected by the assessee to advance itsbusiness interest and may include measures taken forpreservation, protection or advancement of its businessinterests, which has to be distinguished from thepersonal interest of its directors or partners, asthe ca…

SHRI. MOOLCHAND KIRAN KUMAR JAIN,CHENNAI vs. DCIT, CENTRAL CIRCLE 1(4), CHENNAI, CHENNAI

In the result, appeal filed by the assessee for assessment years 2020-21 & 2021-22 are partly allowed for statistical purposes

ITA 1418/CHNY/2023[2021-22]Status: DisposedITAT Chennai09 Apr 2024AY 2021-22

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1417 & 1418/Chny/2023 िनधा"रण वष" / Assessment Years: 2020-21 & 2021-22 Shri. Moolchand Kiran Kumar Deputy Commissioner Of Jain, V. Income-Tax, No. 123, Usman Road, Central Circle 1(4), T. Nagar, Chennai – 600 017. Chennai – 600 034. [Pan: Achpm-2247-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. D. Anand, Advocate : Shri. V. Nandakumar, Cit ""यथ" क" ओर से/Respondent By सुनवाई क" तारीख/Date Of Hearing : 26.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 09.04.2024 आदेश /O R D E R

For Appellant: Shri. D. Anand, Advocate

Section 153ASection 28Section 36Section 36(1)(iii)Section 36(1)(vii)Section 36(2)Section 37Section 37(1)

…been incurred under any legal obligation, but yet it is allowable as a business expenditure, if it was incurred on grounds of commercial expediency". Further, following this judgment the High Court of Delhi, in the case of Punjab Stainless Steel Inds. Vs. CIT 324 ITR 396, has further elaborated "The commercial expediency would include such purpose as is expected by the assessee to advance its business interest and may include measures taken for preservation, protection or advancement of its business interests, which has to be distinguished from the personal interest of its directors or partners, as the case may b…

SHRI. MOOLCHAND KIRAN KUMAR JAIN,CHENNAI vs. DCIT, CENTRAL CIRCLE 1(4), CHENNAI

In the result, appeal filed by the assessee for assessment years 2020-21 & 2021-22 are partly allowed for statistical purposes

ITA 1417/CHNY/2023[2020-21]Status: DisposedITAT Chennai09 Apr 2024AY 2020-21

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1417 & 1418/Chny/2023 िनधा"रण वष" / Assessment Years: 2020-21 & 2021-22 Shri. Moolchand Kiran Kumar Deputy Commissioner Of Jain, V. Income-Tax, No. 123, Usman Road, Central Circle 1(4), T. Nagar, Chennai – 600 017. Chennai – 600 034. [Pan: Achpm-2247-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. D. Anand, Advocate : Shri. V. Nandakumar, Cit ""यथ" क" ओर से/Respondent By सुनवाई क" तारीख/Date Of Hearing : 26.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 09.04.2024 आदेश /O R D E R

For Appellant: Shri. D. Anand, Advocate

Section 153ASection 28Section 36Section 36(1)(iii)Section 36(1)(vii)Section 36(2)Section 37Section 37(1)

…been incurred under any legal obligation, but yet it is allowable as a business expenditure, if it was incurred on grounds of commercial expediency". Further, following this judgment the High Court of Delhi, in the case of Punjab Stainless Steel Inds. Vs. CIT 324 ITR 396, has further elaborated "The commercial expediency would include such purpose as is expected by the assessee to advance its business interest and may include measures taken for preservation, protection or advancement of its business interests, which has to be distinguished from the personal interest of its directors or partners, as the case may b…

MG FINVEST PVT LTD,NEW DELHI vs. ITO WARD - 16(1), NEW DELHI

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

ITA 1773/DEL/2020[2015-16]Status: DisposedITAT Delhi20 Oct 2023AY 2015-16

Bench: SHRI M. BALAGANESH (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

Section 143(3)

…decision of Hon’ble Supreme Court in the case of CIT vs. Reliance Industries Ltd. reported in 410 ITR 466 (SC). The Ld. DR placed on record a decision of Hon’ble Jurisdictional High Court in the case of Punjab Stainless Steel Industries v. CIT, reported in 324 ITR 396 (Delhi) in support of the argument of the Revenue. We have gone through the said decision and in that case there was a categorical finding that interest free advances were extended out of the borrowed funds and not out of any credit balance available with that assessee. On those facts, disallowance was confirmed by the Hon’ble High Court. This d…

RAJESH AGRAWAL,RAIPUR vs. DEPUTY COMMISSIONER OF INCOME TAX, RAIPUR-1(1), RAIPUR

In the result, the appeal of the assessee is allowed in terms of our aforesaid observations

ITA 249/RPR/2022[2010-11]Status: DisposedITAT Raipur19 Oct 2023AY 2010-11

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.249/Rpr/2022 "नधा"रण वष" / Assessment Year : 2010-11 Rajesh Agrawal C/O. M/S. Chhattisgarh Steel Traders, 15/343, Main Road, Jawahar Nagar, Raipur (C.G.)-492 001. Pan : Acppa2905F .......अपीलाथ" / Appellant बनाम / V/S. The Deputy Commissioner Of Income Tax, Raipur-1(1), Raipur (C.G.) ……""यथ" / Respondent

For Appellant: Shri Ravi Agrawal, CAFor Respondent: Shri Satya Prakash Sharma, Sr. DR

Section 143(2)Section 143(3)Section 36(1)(iii)

…आयकर अपील"य अ"धकरण "यायपीठ रायपुर म"। IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI RAVISH SOOD, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.249/RPR/2022 "नधा"रण वष" / Assessment Year : 2010-11 Rajesh Agrawal C/o. M/s. Chhattisgarh Steel Traders, 15/343, Main Road, Jawahar Nagar, Raipur (C.G.)-492 001. PAN : ACPPA2905F .......अपीलाथ" / Appellant बनाम / V/s. The Deputy Commissioner of Income Tax, Raipur-1(1), Raipur (C.G.) ……""यथ" / Respondent Assessee by : Shri Ravi Agrawal, CA Revenue by : Shri Satya Prakash Sharma, Sr. DR सुनवाई क" तार"ख / Date of…

JAGSON INTERNATIONAL LTD. ,DELHI vs. DCIT CIRCLE-13(1), DELHI

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

ITA 902/DEL/2022[2017-18]Status: DisposedITAT Delhi04 Aug 2023AY 2017-18

Bench: Shri Saktijit Dey & Shri M. Balaganeshassessment Year: 2017-18 Jagson International Ltd., Vs Dcit, H-35, 1St Floor, Circle-13(1), Jangpura Extension, Delhi. New Delhi – 110 014. Pan: Aaacj2147A Assessment Year: 2017-18 Dcit, Vs. Jagson International Ltd., H-35, 1St Floor, Circle-13(1), Delhi Jangpura Extension, New Delhi – 110 014. Pan: Aaacj2147A (Appellant) (Respondent) Assessee By : Shri Rajiv Saxena, Ms Sumangla Saxena & Shri Shyam Sunder, Advocates Revenue By : Mohd. Gayasuddin Ansari, Cit, Dr Date Of Hearing : 08.05.2023 Date Of Pronouncement : 04.08.2023

For Appellant: Shri Rajiv SaxenaFor Respondent: Mohd. Gayasuddin Ansari, CIT, DR

Section 115JSection 115VSection 143(3)Section 407

…ncurred under any legal obligation, but yet it is allowable as a business expenditure, if it was incurred on grounds of commercial expediency". Further, following this judgment, the High Court of Delhi, in the case of Punjab Stainless Steel Industries vs. CIT 324 ITR 396, has further elaborated "The commercial expediency would include such purpose as is expected by the assessee to advance its business interest and may include measures taken for preservation, protection or the personal interest of its directors or partners, as the case may be. In other words, there has to be a nexus between the advancing of funds…

JCIT CIRCLE-13(1), NEW DELHI vs. JAGSON INTERNATIONAL LTD., NEW DELHI

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

ITA 1303/DEL/2022[2017-18]Status: DisposedITAT Delhi04 Aug 2023AY 2017-18

Bench: Shri Saktijit Dey & Shri M. Balaganeshassessment Year: 2017-18 Jagson International Ltd., Vs Dcit, H-35, 1St Floor, Circle-13(1), Jangpura Extension, Delhi. New Delhi – 110 014. Pan: Aaacj2147A Assessment Year: 2017-18 Dcit, Vs. Jagson International Ltd., H-35, 1St Floor, Circle-13(1), Delhi Jangpura Extension, New Delhi – 110 014. Pan: Aaacj2147A (Appellant) (Respondent) Assessee By : Shri Rajiv Saxena, Ms Sumangla Saxena & Shri Shyam Sunder, Advocates Revenue By : Mohd. Gayasuddin Ansari, Cit, Dr Date Of Hearing : 08.05.2023 Date Of Pronouncement : 04.08.2023

For Appellant: Shri Rajiv SaxenaFor Respondent: Mohd. Gayasuddin Ansari, CIT, DR

Section 115JSection 115VSection 143(3)Section 407

…ncurred under any legal obligation, but yet it is allowable as a business expenditure, if it was incurred on grounds of commercial expediency". Further, following this judgment, the High Court of Delhi, in the case of Punjab Stainless Steel Industries vs. CIT 324 ITR 396, has further elaborated "The commercial expediency would include such purpose as is expected by the assessee to advance its business interest and may include measures taken for preservation, protection or the personal interest of its directors or partners, as the case may be. In other words, there has to be a nexus between the advancing of funds…

APOSTLE TRADING CONSULTANTS P.LTD,NEW DELHI vs. DCIT, CIRCLE-3(1), NEW DELHI

In the result, appeal filed by the Assessee stands allowed for statistical purpose

ITA 2484/DEL/2018[2014-15]Status: DisposedITAT Delhi27 Jun 2023AY 2014-15

Bench: Sh. Anil Chaturvedi, Hon’Blesh. N.K. Choudhry, Hon'Bleapostle Trading Consultants Private Vs. Dcit – Circle – 3(1) Limited New Delhi B-304, New Friends Colony New Delhi - 110065 Pan: Aahca2341Q

Section 250

…fore the Assessing Officer. The Ld. Commissioner by considering the judgements passed by the Hon'ble Apex Court in the case of S.A. Builders v. CIT(A), Chandigarh [288 ITR 1] and the Hon'ble Delhi High Court in the case of Punjab Stainless Steel Inds. v. CIT [324 ITR 396], considered the case of the Assessee from the point of view of commercial expediency and affirmed the addition of ₹.1,65,60,000/- made on account of disallowance of the proportionate interest expenses u/s.36(1)(iii) of the Act , by observing as under: “1. The interest bearing loan has been diverted to sister concern without any interest. 2. The…

ALL GROW FINANCE & INVESTMENT PVT. LTD.,NEW DELHI vs. DCIT CIRCLE-10(1), NEW DELHI

In the result, appeal of assessee is dismissed

ITA 1072/DEL/2019[2003-04]Status: DisposedITAT Delhi09 May 2023AY 2003-04

Bench: Sh. Anil Chaturvedi & Sh. Yogesh Kumar Usall Grow Finance & Vs. Dcit Investment Pvt. Ltd. Circle – 10(1) Shop No.118, Tikona Park New Delhi New Delhi-110 020 Pan No. Aaaca 4941 P (Appellant) (Respondent) Assessee By --None- Revenue By Shri Kanv Bali, Sr. D.R. Date Of Hearing: 02.05.2023 Date Of Pronouncement: 09.05.2023

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR US, JUDICIAL MEMBER All Grow Finance & Vs. DCIT Investment Pvt. Ltd. Circle – 10(1) Shop No.118, Tikona Park New Delhi New Delhi-110 020 PAN No. AAACA 4941 P (APPELLANT) (RESPONDENT) Assessee by --None- Revenue by Shri Kanv Bali, Sr. D.R. Date of hearing: 02.05.2023 Date of Pronouncement: 09.05.2023 ORDER PER ANIL CHATURVEDI, AM: This appeal filed by the assessee is directed against the order dated 18.12.2018 of the Commissioner of Income Tax (Appeals)-34, New Delhi relating to Ass…

ASUDA HOLDINGS PRIVATE LIMITED,MUMBAI vs. COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE (NFAC) , MUMBAI

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

ITA 2854/MUM/2022[2014-2015]Status: DisposedITAT Mumbai03 Apr 2023AY 2014-2015

Bench: Shri Kuldip Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 36(1)(iii)Section 50(1)Section 50(2)

…incurred under any legal obligation, but yet it is allowable as a business expenditure, if it was incurred on grounds of commercial expediency" 5) Further, following this judgement the High Court of Delhi, in the case of "Punjab Stainless Steel Inds. Vs. CIT 324 ITR 396, has further elaborated "The commercial expediency would include such purpose as is expected by the assessee to advance its business interest and may include measures taken for preservation, protection or advancement of its business interest, which has to be distinguished from the personal interest of its directors or partners, as the case Page…

SHRI SURINDER SINGH BHATIA,INDORE vs. THE JCIT RANGE-3, INDORE

Appeals are allowed/statistically allowed in terms indicated above

ITA 774/IND/2016[2011-12]Status: DisposedITAT Indore31 Mar 2023AY 2011-12

Bench: Ms. Suchitra Kamble & Shri B.M. Biyani(Conducted Through Virtual Court) Assessment Year: 2010-11 &

Section 143(3)Section 36(1)(iii)

…ividual party are provided, hence disallowance of Rs. 12,44,569/- as made by Assessing Officer is hereby confirmed. Reliance is placed on the decisions in cases of Harrisons Malayam Ltd. [2012] 25 taxman.com 546 (Kerala) and Punjab Stainless Steel Ind. [2010] 324 ITR 396 (Del.). Ground No. 4 of appeal is dismissed.” 18. During hearing before us, Ld. AR attacked the orders of lower authorities on several premises. At the outset he submitted that the AO has Page 7 of 13 Shri Surinder Singh Bhatia ITA No.129/Ind/2015 & 774/Ind/2016 Assessment year 2010-11 recorded a patently incorrect finding that the assessee has…

SHRI SURINDER SINGH BHATIA,INDORE vs. THE JCIT- 3, INDORE

Appeals are allowed/statistically allowed in terms indicated above

ITA 129/IND/2015[2010-11]Status: DisposedITAT Indore31 Mar 2023AY 2010-11

Bench: Ms. Suchitra Kamble & Shri B.M. Biyani(Conducted Through Virtual Court) Assessment Year: 2010-11 &

Section 143(3)Section 36(1)(iii)

…ividual party are provided, hence disallowance of Rs. 12,44,569/- as made by Assessing Officer is hereby confirmed. Reliance is placed on the decisions in cases of Harrisons Malayam Ltd. [2012] 25 taxman.com 546 (Kerala) and Punjab Stainless Steel Ind. [2010] 324 ITR 396 (Del.). Ground No. 4 of appeal is dismissed.” 18. During hearing before us, Ld. AR attacked the orders of lower authorities on several premises. At the outset he submitted that the AO has Page 7 of 13 Shri Surinder Singh Bhatia ITA No.129/Ind/2015 & 774/Ind/2016 Assessment year 2010-11 recorded a patently incorrect finding that the assessee has…

ITO 25 (3)(3), MUMBAI vs. RAHUL KANTILAL SHAH, MUMBAI

In the result, the appeal filed by the revenue is dismissed

ITA 6806/MUM/2018[2013-14]Status: DisposedITAT Mumbai13 Dec 2022AY 2013-14

Bench: Shri M Balaganesh & Shri Pavan Kumar Gadaleito – 25(3)(3) Vs. Rahul Kantilal Shah Room No. 606, 6Th Floor 701, Saroj Bldg, C-10, Pratyaksh Kar Sardar Vallabhbhai Bhavan, Bkc Complex Patel Road, Opp Pawan Bandra (E), Mumbia – Hans, Vile Parle (W) 400 051. Mumbai – 400 056. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaips0543C Appellant .. Respondent Appellant By : Ms. Samruddhi Hande.Dr Respondent By : Mr. Anuj Kisnadwala.Ar Date Of Hearing 23.09.2022 Date Of Pronouncement 19.12.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Revenue Has Filed The Appeal Against The Order Passed By The Commissioner Of Income Tax (Cit(A)) - 37, Mumbai Passed U/S 143(3) & 250 U/Sec Of The Act. The Revenue Has Raised The Fallowing Grounds Of Appeal:

For Appellant: Ms. Samruddhi Hande.DRFor Respondent: Mr. Anuj Kisnadwala.AR

Section 143(3)Section 14ASection 57Section 68

…been incurred under any legal obligation, but yet it is allowable as a business expenditure, if it was incurred on grounds of commercial expediency". Further, following this judgment the High Court of Delhi, in the case of Punjab Stainless Steel Inds. Vs. CIT 324 ITR 396, has further elaborated "The commercial expediency would include such purpose as is expected by the assessee to advance its business interest and may include measures taken for preservation, protection or advancement of its business interests, which has to be distinguished from the Rahul Kantilal Shah, Mumbai. personal interest of its directors o…

DCIT, CIRCLE- 13(1), NEW DELHI vs. JAGSON INTERNATIONAL LTD., NEW DELHI

ITA 5375/DEL/2019[2016-17]Status: DisposedITAT Delhi25 Nov 2022AY 2016-17

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Rajiv Saxena, Adv. &For Respondent: Sh. Rajesh Kumar, CIT DR

Section 115JSection 115VSection 143(3)Section 14ASection 36Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI Before Sh. C. N. Prasad, Judicial Member Dr. B. R. R. Kumar, Accountant Member ITA No. 6872/Del/2018 : Asstt. Year : 2015-16 ITA No. 5375/Del/2019 : Asstt. Year : 2016-17 DCIT, Vs Jagson International Ltd., 3rd Floor, Vandana Building, 11, Circle-13(1), New Delhi-110002 Tolstoy Marg, Connaught Place, New Delhi-110001 (APPELLANT) (RESPONDENT) PAN No. AAACJ2147A CO No. 83/Del/2022 (in ITA No. 6872/Del/2018 : Asstt. Year : 2015-16) Jagson International Ltd., Vs DCIT, 3rd Floor, Vandana Building, 11, Circle-13(1), Tolstoy Marg, Connaught Place, New De…

Punjab Stainless Steel Inds v. CIT