R.C. Gupta v. Commissioner of Income Tax

298 ITR 161High Court2008#3502 most cited

What is R.C. Gupta v. Commissioner of Income Tax authority for?

Contractual liabilities are allowable deductions in the year the liability is incurred, even if disputed by the assessee, rather than the year of actual payment or dispute resolution.

34

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2011 to 2025.

Also referred to as

R.C. Gupta v. CIT · 298 ITR 161 · contractual liability · allowable deduction · year of incurring liability · mercantile system of accounting · section 37(1) · section 143(3)

Also reported as

166 Taxmann 191

Sections most often in play

Section 143(3)Section 35ABBSection 37(1)

Issues it is cited on

section 10(2)(xv)section 80lacompensatory interestsection 35abbsection 80lsection 10(2)section 10(1)section 72acarry forward of lossessection 72mercantile system of accountingrule of consistency

Judgments citing R.C. Gupta v. Commissioner of Income Tax

M/S Aggarwal & Modi Enterprises vs. Commissioner of Income Tax

ITA - 1274 / 2009HC Delhi21 Jan 2016

…f the licence fee and this was not to deny the liability to pay the licence fee in terms of the original agreement entered into with NDMC. 34. Mr. Aggarwal placed reliance on the decision of this Court in R.C. Gupta v. Commissioner of Income Tax (2008) 298 ITR 161 (Del) and the decisions referred therein namely, Kedarnath Jute Manufacturing Co. Ltd. & CIT (1971)82 ITR 363 (SC), J.K. Synthetics Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (1980) 125 ITR 33 (All), Union of India v. J.K. Synthetics Ltd. (1993) 199 ITR 14 (SC) and Bharat Earth Movers v. CIT (2…

M/S Aggarwal & Modi Enterprises vs. The Commissioner of Income Tax

ITA - 354 / 2003HC Delhi21 Jan 2016

…f the licence fee and this was not to deny the liability to pay the licence fee in terms of the original agreement entered into with NDMC. 34. Mr. Aggarwal placed reliance on the decision of this Court in R.C. Gupta v. Commissioner of Income Tax (2008) 298 ITR 161 (Del) and the decisions referred therein namely, Kedarnath Jute Manufacturing Co. Ltd. & CIT (1971)82 ITR 363 (SC), J.K. Synthetics Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (1980) 125 ITR 33 (All), Union of India v. J.K. Synthetics Ltd. (1993) 199 ITR 14 (SC) and Bharat Earth Movers v. CIT (2…

M/S Aggarwal & Modi Enterprise vs. The Commissioner of Income Tax

ITA - 355 / 2003HC Delhi21 Jan 2016

…f the licence fee and this was not to deny the liability to pay the licence fee in terms of the original agreement entered into with NDMC. 34. Mr. Aggarwal placed reliance on the decision of this Court in R.C. Gupta v. Commissioner of Income Tax (2008) 298 ITR 161 (Del) and the decisions referred therein namely, Kedarnath Jute Manufacturing Co. Ltd. & CIT (1971)82 ITR 363 (SC), J.K. Synthetics Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (1980) 125 ITR 33 (All), Union of India v. J.K. Synthetics Ltd. (1993) 199 ITR 14 (SC) and Bharat Earth Movers v. CIT (2…

M/S Aggarwal & Modi Enterprise vs. Commissioner of Income Tax

ITA - 769 / 2006HC Delhi21 Jan 2016

…f the licence fee and this was not to deny the liability to pay the licence fee in terms of the original agreement entered into with NDMC. 34. Mr. Aggarwal placed reliance on the decision of this Court in R.C. Gupta v. Commissioner of Income Tax (2008) 298 ITR 161 (Del) and the decisions referred therein namely, Kedarnath Jute Manufacturing Co. Ltd. & CIT (1971)82 ITR 363 (SC), J.K. Synthetics Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (1980) 125 ITR 33 (All), Union of India v. J.K. Synthetics Ltd. (1993) 199 ITR 14 (SC) and Bharat Earth Movers v. CIT (2…

Aggarwal & Modi Enterprises Pv vs. C.I.T

ITA - 770 / 2006HC Delhi21 Jan 2016

…f the licence fee and this was not to deny the liability to pay the licence fee in terms of the original agreement entered into with NDMC. 34. Mr. Aggarwal placed reliance on the decision of this Court in R.C. Gupta v. Commissioner of Income Tax (2008) 298 ITR 161 (Del) and the decisions referred therein namely, Kedarnath Jute Manufacturing Co. Ltd. & CIT (1971)82 ITR 363 (SC), J.K. Synthetics Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (1980) 125 ITR 33 (All), Union of India v. J.K. Synthetics Ltd. (1993) 199 ITR 14 (SC) and Bharat Earth Movers v. CIT (2…

M/S Aggarwal & Modi Enterprise vs. Commissioner of Income Tax

ITA - 876 / 2006HC Delhi21 Jan 2016

…f the licence fee and this was not to deny the liability to pay the licence fee in terms of the original agreement entered into with NDMC. 34. Mr. Aggarwal placed reliance on the decision of this Court in R.C. Gupta v. Commissioner of Income Tax (2008) 298 ITR 161 (Del) and the decisions referred therein namely, Kedarnath Jute Manufacturing Co. Ltd. & CIT (1971)82 ITR 363 (SC), J.K. Synthetics Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (1980) 125 ITR 33 (All), Union of India v. J.K. Synthetics Ltd. (1993) 199 ITR 14 (SC) and Bharat Earth Movers v. CIT (2…

Aggarwal & Modi Enterpises Co vs. Commissioner of Income Tax

ITA - 1123 / 2007HC Delhi21 Jan 2016

…f the licence fee and this was not to deny the liability to pay the licence fee in terms of the original agreement entered into with NDMC. 34. Mr. Aggarwal placed reliance on the decision of this Court in R.C. Gupta v. Commissioner of Income Tax (2008) 298 ITR 161 (Del) and the decisions referred therein namely, Kedarnath Jute Manufacturing Co. Ltd. & CIT (1971)82 ITR 363 (SC), J.K. Synthetics Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (1980) 125 ITR 33 (All), Union of India v. J.K. Synthetics Ltd. (1993) 199 ITR 14 (SC) and Bharat Earth Movers v. CIT (2…

M/S Aggarwal & Modi Enterprises Pvt Ltd vs. Commissioner of Income Tax

ITA - 1273 / 2009HC Delhi21 Jan 2016

…f the licence fee and this was not to deny the liability to pay the licence fee in terms of the original agreement entered into with NDMC. 34. Mr. Aggarwal placed reliance on the decision of this Court in R.C. Gupta v. Commissioner of Income Tax (2008) 298 ITR 161 (Del) and the decisions referred therein namely, Kedarnath Jute Manufacturing Co. Ltd. & CIT (1971)82 ITR 363 (SC), J.K. Synthetics Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (1980) 125 ITR 33 (All), Union of India v. J.K. Synthetics Ltd. (1993) 199 ITR 14 (SC) and Bharat Earth Movers v. CIT (2…

M/S Aggarwal & Modi Enterprises vs. Commissioner of Income Tax

ITA - 1277 / 2009HC Delhi21 Jan 2016

…f the licence fee and this was not to deny the liability to pay the licence fee in terms of the original agreement entered into with NDMC. 34. Mr. Aggarwal placed reliance on the decision of this Court in R.C. Gupta v. Commissioner of Income Tax (2008) 298 ITR 161 (Del) and the decisions referred therein namely, Kedarnath Jute Manufacturing Co. Ltd. & CIT (1971)82 ITR 363 (SC), J.K. Synthetics Limited v. O.S. Bajpai, ITO (1976) 105 ITR 864 (All), Swadeshi Cotton Mill Co. Ltd. v. CIT (1980) 125 ITR 33 (All), Union of India v. J.K. Synthetics Ltd. (1993) 199 ITR 14 (SC) and Bharat Earth Movers v. CIT (2…

National Agricultural Cooperative Marketing Federation of India Ltd vs. JCIT Range-32

ITA 2000/DEL/2008[2001-2002]Status: DisposedITAT Delhi16 Oct 2015AY 2001-2002

Bench: Justice (Retd.) Dev Darshan Sud, Hon’Ble, Shri G.C. Gupta, Vp & Shri R.S. Syal Am

For Appellant: Shri Hiren Mehta &For Respondent: Smt. Sulekha Verma, CIT, DR
Section 142Section 143(3)Section 148Section 40

…llowed deduction of interest. 16. The ld. AR has relied on certain judgments of the Hon’ble jurisdictional High Court to bolster the deductibility of interest. We find such reliance as completely misplaced. The first judgment is R.C. Gupta vs. CIT (2008) 166 Taxmann 191 (Del). The facts of the case are that the assessee therein made certain purchases from company ‘H’ in the year 1975 and the amount was payable, but, there was dispute on the liability to pay. The assessee claimed deduction for the said amount in its computation of income for the A.Y. 1979-80. The AO disallowed it on the ground that: ‘the sai…

National Agricultural Cooperative Marketing Federation of India Ltd vs. JCIT Range-32

ITA 1999/DEL/2008[2001-2002]Status: DisposedITAT Delhi16 Oct 2015AY 2001-2002

Bench: Justice (Retd.) Dev Darshan Sud, Hon’Ble, Shri G.C. Gupta, Vp & Shri R.S. Syal Am

For Appellant: Shri Hiren Mehta &For Respondent: Smt. Sulekha Verma, CIT, DR
Section 142Section 143(3)Section 148Section 40

…llowed deduction of interest. 16. The ld. AR has relied on certain judgments of the Hon’ble jurisdictional High Court to bolster the deductibility of interest. We find such reliance as completely misplaced. The first judgment is R.C. Gupta vs. CIT (2008) 166 Taxmann 191 (Del). The facts of the case are that the assessee therein made certain purchases from company ‘H’ in the year 1975 and the amount was payable, but, there was dispute on the liability to pay. The assessee claimed deduction for the said amount in its computation of income for the A.Y. 1979-80. The AO disallowed it on the ground that: ‘the sai…

National Agricultural Co-Operative Marketing Federagin of India Ltd vs. Commissioner of Income Tax Delhi XI & Anr

ITA/1096/2008HC Delhi03 Jun 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

…f the amount of compensation. He submitted that though the decision was rendered in the context of land acquisition, however, the ratio is applicable to award made by the Arbitrators. Learned counsel also relied upon the cases of R.C.Gupta v. CIT (2008) 298 ITR 161; Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC); Navjivan Roller Flour and Pulse Mills Ltd. v. DCIT (2009) ITAs No.1096/2008, 1138/2008, & 1146/2008 Page 7 of 15 315 ITR 190 and J.K. Industries Ltd. v. UOI 297 ITR 176. Faslika Electric Supply Co. v. CIT 143 ITR 551 (Delhi) 5. On the other hand, learned counsel for the Rev…

National Agricultural Co-Operative Marketing Federation of India Ltd vs. Commissioner of Income Tax Delhi XI & Anr

ITA - 1138 / 2008HC Delhi03 Jun 2011

…of the amount of compensation. He submitted that though the decision was rendered in the context of land acquisition, however, the ratio is applicable to award made by the Arbitrators. Learned counsel also relied upon the cases of **R.C.Gupta v. CIT** (2008) 298 ITR 161: Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC); Navjivan Roller Flour and Pulse Mills Ltd. v. DCIT (2009) ![](_page_6_Picture_1.jpeg) 315 ITR 190 and *J.K. Industries Ltd. v. UOI* 297 ITR 176. Faslika Electric Supply Co. v. CIT 143 ITR 551 (Delhi) - 5. On the other hand, learned counsel for the Revenue submitted that it was only with the…

National Agricultural Co-Operative Marketing Federagin of India Ltd vs. Commissioner of Income Tax Delhi XI & Anr

ITA - 1096 / 2008HC Delhi03 Jun 2011

…f the amount of compensation. He submitted that though the decision was rendered in the context of land acquisition, however, the ratio is applicable to award made by the Arbitrators. Learned counsel also relied upon the cases of R.C.Gupta v. CIT (2008) 298 ITR 161; Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC); Navjivan Roller Flour and Pulse Mills Ltd. v. DCIT (2009) 2011:DHC:3136-DB ITAs No.1096/2008, 1138/2008, & 1146/2008 Page 7 of 15 315 ITR 190 and J.K. Industries Ltd. v. UOI 297 ITR 176. Faslika Electric Supply Co. v. CIT 143 ITR 551 (Delhi) 5. On the other hand, learned co…