R 217 (Delhi) (HC) 2. National Agricultural Co-operative Marketing Federation of India Ltd. v. CIT

393 ITR 666High Court2017#9045 most cited

What is R 217 (Delhi) (HC) 2. National Agricultural Co-operative Marketing Federation of India Ltd. v. CIT authority for?

A liability incurred by an assessee, even if disputed, is deductible in the year it is incurred and becomes enforceable, such as through an arbitration award or court decree, regardless of subsequent legal challenges or stays.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2018 to 2025.

Also referred to as

National Agricultural Co-operative Marketing Federation of India Ltd. v. CIT · 393 ITR 666 · section 37(1) · allowable deduction · incurred liability · disputed liability · arbitration award · court decree · enforceable liability

Sections most often in play

Section 37(1)Section 10(10C)Section 10(15)(iv)Section 10(34)Section 143(3)Section 14ASection 35ABBSection 35DDA

Issues it is cited on

section 10(10c)section 80lacompensatory interestsection 35abbsection 35ddasection 80lsection 35ddsection 72aapproved gratuity fundsection 44csection 10(15)carry forward of losses

Judgments citing R 217 (Delhi) (HC) 2. National Agricultural Co-operative Marketing Federation of India Ltd. v. CIT

Bharti Telemedia Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 624/DEL/2024[2021-22]Status: DisposedITAT Delhi12 Dec 2025AY 2021-22

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…e year in which the assessee had incurred such liability and the payee files suit for recovery, dehors the fact that liability was disputed by the assessee. 47. In the case of National Agricultural Cooperative Marketing Federation of India Ltd. v. CІТ: [2017] 393 ITR 666 (Delhi), the assessee claimed deduction of interest determined to be payable under an arbitration award dated 28.01.2000. On appeal filed by the assessee. Division Bench (DB) of the High Court, by an order dated 28.02.2001, granted stay of the execution of the said decree. For tax purposes, claim of such interest payable by assessee on amount awa…

DCIT, Circle 4(2), New Delhi vs. M/S Bharti Telemedia Ltd, New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4966/DEL/2024[2020-21]Status: DisposedITAT Delhi12 Dec 2025AY 2020-21

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…e year in which the assessee had incurred such liability and the payee files suit for recovery, dehors the fact that liability was disputed by the assessee. 47. In the case of National Agricultural Cooperative Marketing Federation of India Ltd. v. CІТ: [2017] 393 ITR 666 (Delhi), the assessee claimed deduction of interest determined to be payable under an arbitration award dated 28.01.2000. On appeal filed by the assessee. Division Bench (DB) of the High Court, by an order dated 28.02.2001, granted stay of the execution of the said decree. For tax purposes, claim of such interest payable by assessee on amount awa…

Bharti Telemedia Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4960/DEL/2024[2020-21]Status: DisposedITAT Delhi12 Dec 2025AY 2020-21

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…e year in which the assessee had incurred such liability and the payee files suit for recovery, dehors the fact that liability was disputed by the assessee. 47. In the case of National Agricultural Cooperative Marketing Federation of India Ltd. v. CІТ: [2017] 393 ITR 666 (Delhi), the assessee claimed deduction of interest determined to be payable under an arbitration award dated 28.01.2000. On appeal filed by the assessee. Division Bench (DB) of the High Court, by an order dated 28.02.2001, granted stay of the execution of the said decree. For tax purposes, claim of such interest payable by assessee on amount awa…

DCIT, Circle 4(2), New Delhi vs. Ms Bharti Telemedia Ltd, New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4868/DEL/2024[2016-17]Status: DisposedITAT Delhi12 Dec 2025AY 2016-17

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…e year in which the assessee had incurred such liability and the payee files suit for recovery, dehors the fact that liability was disputed by the assessee. 47. In the case of National Agricultural Cooperative Marketing Federation of India Ltd. v. CІТ: [2017] 393 ITR 666 (Delhi), the assessee claimed deduction of interest determined to be payable under an arbitration award dated 28.01.2000. On appeal filed by the assessee. Division Bench (DB) of the High Court, by an order dated 28.02.2001, granted stay of the execution of the said decree. For tax purposes, claim of such interest payable by assessee on amount awa…

Pr. Commissioner of Income Tax-12 vs. National Agricultural Co-Operative Marketing Federation of India

ITA/178/2024HC Delhi07 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

Section 40

…rendered in respect of earlier assessment years allowed the Assessee’s appeal in respect of AY 2014-15. It is also conceded that the controversy relating to AYs 2003-04, 2004-05, 2006-07 and 2007-08 had travelled to this Court and in NAFED v. CIT: (2017) 393 ITR 666 (Del) assessment years 2001-02 and 2002-03, which relates to this Court, had upheld the decision of the learned ITAT, deleting the disallowance made by the AO on the aforesaid grounds. The Special Leave Petition preferred by the Revenue against the said decision was also dismissed [CIT v. NAFED]: (2023) 459 ITR 593. 6. In view of the above,…

DCIT 2(2)(2), Mumbai vs. The Hongkong and Shanghai Banking Corp Ltd, Mumbai

In the result, assessee’s appeals are allowed wherein

ITA 4786/MUM/2016[2005-06]Status: DisposedITAT Mumbai30 Apr 2024AY 2005-06

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

Section 10(15)(iv)Section 10(34)Section 143(3)Section 14A

…6. We find that the decision of the ITAT Delhi Special Bench in the case of NAFED (ITA No. 1999 & 2000/Del/2008) dated 16.10.2015 which has been relied upon by the income-tax department has been reversed by the Delhi High Court vide order dated 19 April 2017 (393 ITR 666). Further, the Special Leave Petition filed by the income tax department has also been dismissed by the Supreme Court of India. The relevant para of the Delhi High Court decision is as under: M/s. Hongkong & Shanghai Banking Corporation Ltd. "In the present case, with the Award having been made rule of the Court by a learned Single Judge of this…

The Hong Kong & Shanghai Banking Corporation Ltd., Mumbai vs. Jt. Director of Income Tax (International Taxation) - Range -3, Mumbai

In the result, assessee’s appeals are allowed wherein

ITA 4765/MUM/2016[2005-06]Status: DisposedITAT Mumbai30 Apr 2024AY 2005-06

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

Section 10(15)(iv)Section 10(34)Section 143(3)Section 14A

…6. We find that the decision of the ITAT Delhi Special Bench in the case of NAFED (ITA No. 1999 & 2000/Del/2008) dated 16.10.2015 which has been relied upon by the income-tax department has been reversed by the Delhi High Court vide order dated 19 April 2017 (393 ITR 666). Further, the Special Leave Petition filed by the income tax department has also been dismissed by the Supreme Court of India. The relevant para of the Delhi High Court decision is as under: M/s. Hongkong & Shanghai Banking Corporation Ltd. "In the present case, with the Award having been made rule of the Court by a learned Single Judge of this…

DDIT (It) 3(1), Mumbai vs. Hongkong & Sanghai Banking Corporation Ltd, Mumbai

In the result, assessee’s appeals are allowed wherein

ITA 7824/MUM/2010[2004-05]Status: DisposedITAT Mumbai30 Apr 2024AY 2004-05

Bench: IN THE INCOME TAX APPELLATE TRIBUNAL, ‘H’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL, ACCOUNTANT MEMBER ITA No.7336/Mum/2010 (Assessment Year :2004-05) & ITA No.4765/Mum/2016 (Assessment Year :2005-06) The Hongkong & Shanghai Banking Corporation Ltd. Srnior Vice President Tax, India Area Management 5th Floor, Hongkong Bank Building, 52/60, MG Road Fort, Mumbai – 400 001 (Appellant) Vs. The Joint Director of Income Tax (International Taxation)-3, Mumbai 1st Flo

Section 10(15)(iv)Section 10(34)Section 143(3)Section 14A

…6. We find that the decision of the ITAT Delhi Special Bench in the case of NAFED (ITA No. 1999 & 2000/Del/2008) dated 16.10.2015 which has been relied upon by the income-tax department has been reversed by the Delhi High Court vide order dated 19 April 2017 (393 ITR 666). Further, the Special Leave Petition filed by the income tax department has also been dismissed by the Supreme Court of India. The relevant para of the Delhi High Court decision is as under: M/s. Hongkong & Shanghai Banking Corporation Ltd. "In the present case, with the Award having been made rule of the Court by a learned Single Judge of this…

The Hongkong & Shanghai Banking Corporation Ltd, Mumbai vs. DDIT (It) 3(1), Mumbai

In the result, assessee’s appeals are allowed wherein

ITA 7336/MUM/2010[2004-05]Status: DisposedITAT Mumbai30 Apr 2024AY 2004-05

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL, ACCOUNTANT MEMBER & The Hongkong & Shanghai Banking Corporation Ltd. Srnior (Vice President)

Section 10(15)(iv)Section 10(34)Section 143(3)Section 14A

…6. We find that the decision of the ITAT Delhi Special Bench in the case of NAFED (ITA No. 1999 & 2000/Del/2008) dated 16.10.2015 which has been relied upon by the income-tax department has been reversed by the Delhi High Court vide order dated 19 April 2017 (393 ITR 666). Further, the Special Leave Petition filed by the income tax department has also been dismissed by the Supreme Court of India. The relevant para of the Delhi High Court decision is as under: M/s. Hongkong & Shanghai Banking Corporation Ltd. "In the present case, with the Award having been made rule of the Court by a learned Single Judge of this…

Ashokkumar Parmar, Pune vs. Income-Tax Officer, Ward - 5(5), Pune

In the result, the appeal is allowed

ITA 2053/PUN/2017[2012-13]Status: DisposedITAT Pune13 Aug 2020AY 2012-13

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviननधधारण वषा / Assessment Year : 2012-13 Ashokkumar Parmar, Vs. Ito, Ward-5(5), Shraddha, Plot No.6, Pune Sujay Garden, Mukund Nagar, Pune 411037 Pan : Afwpp9573Q Appellant Respondent Assessee By Shri Manish Somani Revenue By Shri Prathamesh J. Lawand Date Of Hearing 13-08-2020 Date Of Pronouncement 14-08-2020 आदेश / Order

…f liability, which becomes enforceable on the award having been made rule of the Court earlier. This proposition has been laid down by the Hon‟ble Delhi High Court in National Agricultural Co-operative Marketing Federation of India Ltd. (NAFED) vs. CIT (2017) 393 ITR 666 (Del). 6. Testing the factual scenario on the touchstone of the above principles, it is manifested that the enforceable liability against the assessee was created in the extant year on the dismissal of the assessee‟s suit for specific performance by the Civil Court. The view point by the ld. CIT(A) that the assessee can get deduction only when th…

ACIT 25(3), Mumbai vs. Punit Constructions, Mumbai

In the result, the appeal filed by the assessee is allowed and the appeal filed by the Revenue is dismissed

ITA 6980/MUM/2014[2011-12]Status: DisposedITAT Mumbai21 Feb 2018AY 2011-12

Bench: Sri Joginder Singh, Jm & G. Manjunatha, Am M/S Punit Construction Co. Jcit-25(3), 5Th C-11, 3Rd Floor, Floor, Agarwal Golden Chamber, Plot No. 13/A, Fun Pratyaksh Kar Bhavan, Vs. Republic Road, Off New Link Bkc, Bandra(E), Road, Andheri(W), Mumbai-400051 Mumbai-400053 Appellant .. Respondent Pan No. Aaafp1231E Acit-25(3), M/S Punit Construction Co. Room No.308, 3Rd Floor, Agarwal Residency, Bldg. No.C-11, Pratyaksh Kar Shankar Lane, Vs. Bhavan, Bkc, Bandra(E), Kandivali(W), Mumbai-400051 Mumbai-400067

For Appellant: Dr. K. Shivram/Aditya AjgaonkarFor Respondent: HN Singh, CIT DR
Section 143(2)Section 143(3)Section 80Section 80I

…y to pay has been wiped out from existence. In this regard, he relied upon the following judgments: 1. Dalmia Cement (Bharat) Ltd. vs. CIT (2016) 137 DTR 217 (Delhi) (HC) 2. National Agricultural Co-operative Marketing Federation of India Ltd. vs. CIT (2017) 393 ITR 666 (Delhi)(HC) 3. CIT vs. Kumaran & Co. (1992) 194 ITR 85 (Ker.)(HC) 4. CIT vs. Investigation & Security Service (India) (P) (Ltd) (1990) 182 ITR 358 (AP) (HC) 17. We have heard both the parties and considered material on record. The AO disallowed provision for outstanding expenses related to ULC charges payable to Government of Maharashtra. The AO…

Punit Construction Co., Mumbai vs. CIT 25, Mumbai

In the result, the appeal filed by the assessee is allowed and the appeal filed by the Revenue is dismissed

ITA 6337/MUM/2014[211-12]Status: DisposedITAT Mumbai21 Feb 2018

Bench: Sri Joginder Singh, Jm & G. Manjunatha, Am M/S Punit Construction Co. Jcit-25(3), 5Th C-11, 3Rd Floor, Floor, Agarwal Golden Chamber, Plot No. 13/A, Fun Pratyaksh Kar Bhavan, Vs. Republic Road, Off New Link Bkc, Bandra(E), Road, Andheri(W), Mumbai-400051 Mumbai-400053 Appellant .. Respondent Pan No. Aaafp1231E Acit-25(3), M/S Punit Construction Co. Room No.308, 3Rd Floor, Agarwal Residency, Bldg. No.C-11, Pratyaksh Kar Shankar Lane, Vs. Bhavan, Bkc, Bandra(E), Kandivali(W), Mumbai-400051 Mumbai-400067

For Appellant: Dr. K. Shivram/Aditya AjgaonkarFor Respondent: HN Singh, CIT DR
Section 143(2)Section 143(3)Section 80Section 80I

…y to pay has been wiped out from existence. In this regard, he relied upon the following judgments: 1. Dalmia Cement (Bharat) Ltd. vs. CIT (2016) 137 DTR 217 (Delhi) (HC) 2. National Agricultural Co-operative Marketing Federation of India Ltd. vs. CIT (2017) 393 ITR 666 (Delhi)(HC) 3. CIT vs. Kumaran & Co. (1992) 194 ITR 85 (Ker.)(HC) 4. CIT vs. Investigation & Security Service (India) (P) (Ltd) (1990) 182 ITR 358 (AP) (HC) 17. We have heard both the parties and considered material on record. The AO disallowed provision for outstanding expenses related to ULC charges payable to Government of Maharashtra. The AO…

R 217 (Delhi) (HC) 2. National Agricultural Co-operative Marketing Federation of India Ltd. v. CIT (393 ITR 666) — Cited in 12 Judgments | BharatTax