SA Builders, 288 ITR 1 (SC) and CIT v. Panipat Woollen and General Mills Company Ltd.

103 ITR 66Supreme Court of India1976#1030 most cited

What is SA Builders, 288 ITR 1 (SC) and CIT v. Panipat Woollen and General Mills Company Ltd. authority for?

The Income Tax Department cannot sit in the armchair of a businessman or question their commercial wisdom and business decisions. Expenses incurred for business expediency, determined from the businessman's point of view, are allowable business expenses.

105

judgments rely on this decision, according to BharatTax’s citation analysis of 367,327 Indian tax judgments — from 2016 to 2026.

Also referred to as

SA Builders · Panipat Woollen Mills · commercial expediency · business expenditure · allowable expenses · revenue cannot question commercial wisdom · Income Tax Department armchair businessman · genuine business expenses · Section 37(1) income tax

Sections most often in play

Section 1961Section 1962Section 143(3)Section 56(2)(viib)Section 142(1)Section 143(2)Section 133(6)Section 68

Issues it is cited on

nav methoddcf methodstrategic investmentsection 56(2)(viib)valuation of sharescommercial rightscommercial expediencysection 251(1)section 56(2)(vii)date of transferintangible assetssection 56(2)

Judgments citing SA Builders, 288 ITR 1 (SC) and CIT v. Panipat Woollen and General Mills Company Ltd.

Techpark Hotels Pvt Ltd, Gurgaon vs. Addi. CIT Special Range-9, New Delhi

In the result, the appeal filed by the Assessee is allowed

ITA 9450/DEL/2019[2015-16]Status: DisposedITAT Delhi20 Mar 2026AY 2015-16

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumartechpark Hotels Pvt. Ltd., Addl. Cit, Ground Floor, Central Wing, Special Range-9, Thapar House 124, Janpath, Vs. New Delhi. New Delhi-110001. Pan-Aabce5833H (Appellant) (Respondent) Assessee By Shri Neeraj Jain, Adv. & Shri Tavish Verma, Adv. Ms. Harpreet Kaur Hansra Sr. Dr Department By Date Of Hearing 20.01.2026 Date Of Pronouncement 20.03.2026 O R D E R Per Vimal Kumar, Jm: The Appeal Filed By The Assessee Is Against Order Dated 11.09.2019 Of The Learned Commissioner Of Income Tax (Appeals), New Delhi [Hereinafter Referred To As ‘The Ld. Cit(A)’] Passed U/S 250 Of The Income Tax Act, 1961, [Hereinafter Referred To As ‘The Act’] Arising Out Of Assessment Order Dated 30.12.2017 Of The Ld. Assessing Officer U/S 143(3) Of The Act For Assessment Year 2015-16. 2. Brief Facts Of The Case Are That The Assessee Filed Return Declaring Loss Of Rs.23,06,28,106/- On 30.11.2015. Notice U/S 143(2) Dated 22.09.2016 Was Issued. Notices U/S 142(1) Were Issued. Sh. Nikhil Agarwal & Shri Nirmal Malpani, Ca Appeared & Filed Details. On Completion Of Proceedings, Ld. Ao Vide Order Dated Techpark Hotels Pvt. Ltd. Vs. Acit

Section 142(1)Section 143(2)Section 143(3)Section 154Section 234DSection 250Section 56(2)Section 56(2)(viib)

…ch manner risk has to be undertaken. Such an approach of the revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC)and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable and how the business should be carried out. Commercial expediency has to be seen from the point of view of businessman. Here in this case if the investment has made keeping assessee's own business objective of projection of…

Kasturi Medical Centre Private Limited, Joka, Thakurpukur vs. Additional/Joint/Deputy/Assisstant Commissioner of Income Tax/Income-Tax Officer, Delhi

In the result the appeal of the assessee is allowed

ITA 318/KOL/2025[2018-19]Status: DisposedITAT Kolkata12 Dec 2025AY 2018-19

Bench: Shri Manunatha G & Shri Sonjoy Sarmai.T.A. No.318/Kol/2025 Assessment Year: 2018-19 Kasturi Medical Centre Pvt. Ltd……………….................................……….…Appellant 5, Diamond Harbour Road, 3A Bus Stand, Joka, Thakurpukur, W.B – 700104. [Pan: Aacck1872F] Vs. Acit, Nfac, Delhi…….…………..…………….…..….......……..…...…..…..Respondent Appearances By: Shri Indernil Banerjee, Fca, Appeared On Behalf Of The Revenue. Shri Soumitra Ghosh, Sr. Dr, Appeared On Behalf Of The Assessee. Date Of Concluding The Hearing : September 16, 2025 Date Of Pronouncing The Order : December 12, 2025 Order Per Sonjoy Sarma: This Appeal Is Filed By The Assessee Against The Order Of The Learned Cit(A) Passed For The Assessment Year 2018–19, Whereby The Addition Of ₹85,40,911 Made By The Assessing Officer On Estimated Basis After Rejection Of Books Of Account Under Section 145(3) Of The Income-Tax Act, 1961 Was Confirmed. 2. Brief Facts Of The Case Are That The Assessee Filed Its Return Of Income For Ay 2018–19 Declaring Total Income Of ₹2,05,59,220. The Case Was Selected For Complete Scrutiny Under The Scrutiny Assessment Scheme, 2019, Primarily On The Issue Of Large Refund Claimed Out Of Advance Tax. Accordingly, Notices Under Section 143(2) & Section 142(1) Of The Act Along With Questionnaires Were Duly Issued & Served.

Section 142(1)Section 143(2)Section 145(3)

…without properly verifying the evidences submitted by the assessee. The Hon'ble Supreme Court in CIT Walchand & Co. (P) Ltd (1967) 65 ITR 381 (SC), J.K. Woollen Manufacturers CIT (1969) 72 ITR 612 (SC) and CIT v Panipat Woollen & General Mills Co. Lal (1976) 103 ITR 66 (SC) held that so long as the expenditure is real and incurred for business purposes, the Department cannot substitute its own wisdom to determine what is "reasonable." This doctrine has been reaffirmed in SA. Builders Laid. v. CIT (Appeals) (2007) 288 ITR 1 (SC) and Hero Cycles (P) Lal x CIT (2015) 379 ITR 347 (SC), where it was emphasised that o…

Deputy Commissioner of Income Tax, Circle-1(1), New Delhi, Delhi vs. Anand Nvh Products Pvt Ltd, Delhi

ITA 3612/DEL/2024[2016-17]Status: DisposedITAT Delhi26 Sept 2025AY 2016-17

Bench: Shri Yogesh Kumar U.S. & Shri Avdhesh Kumar Mishra

Section 35

…2002] 121 Taxman 706 (Delhi) 2. CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381 (SC) 3. J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC), 4. Aluminium Corpn. of India Ltd. v. CIT [1972]86 ITR 11 (SC) 5. CIT v. Panipat Woollen & General Mills Co. Ltd. [1976] 103 ITR 66 (SC) 6. Punjab & Haryana High Court in Jamna Auto Industries [2008] 167 Taxman 192 (Punjab & Haryana) Considering the above discussion and case laws relied upon, it is held that the expenses claimed by the appellant are genuine business expenses exclusively for business expediency of the business of the appellant and hence are allowable as busines…

DCIT 2(2)(1), Mumbai vs. Max Hospitals and Allied Services Limited, Mumbai

In the result, appeals by the revenue are dismissed

ITA 3085/MUM/2025[2018-19]Status: DisposedITAT Mumbai11 Aug 2025AY 2018-19

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Revenue byFor Respondent: Shri Vivek Perampurna, CIT D/R
Section 143(3)Section 263Section 56(2)(viib)

…ch manner risk has to be undertaken. Such an approach of the revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC)and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable and how the I.T.A. No. 3083/Mum/2025 I.T.A. No. 3084/Mum/2025 I.T.A. No. 3085/Mum/2025 9 business should be carried out. Commercial expediency has to be seen from the point of view of businessman. Here in this case if the i…

DCIT 2(2)(1), Mumbai vs. Max Hospitals and Allied Services Limited, Mumbai

In the result, appeals by the revenue are dismissed

ITA 3084/MUM/2025[2017-18]Status: DisposedITAT Mumbai11 Aug 2025AY 2017-18

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Revenue byFor Respondent: Shri Vivek Perampurna, CIT D/R
Section 143(3)Section 263Section 56(2)(viib)

…ch manner risk has to be undertaken. Such an approach of the revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC)and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable and how the I.T.A. No. 3083/Mum/2025 I.T.A. No. 3084/Mum/2025 I.T.A. No. 3085/Mum/2025 9 business should be carried out. Commercial expediency has to be seen from the point of view of businessman. Here in this case if the i…

DCIT 2(2)(1), Mumbai vs. Max Hospitals and Allied Services Limited, Mumbai

In the result, appeals by the revenue are dismissed

ITA 3083/MUM/2025[2016-17]Status: DisposedITAT Mumbai11 Aug 2025AY 2016-17

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Revenue byFor Respondent: Shri Vivek Perampurna, CIT D/R
Section 143(3)Section 263Section 56(2)(viib)

…ch manner risk has to be undertaken. Such an approach of the revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC)and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable and how the I.T.A. No. 3083/Mum/2025 I.T.A. No. 3084/Mum/2025 I.T.A. No. 3085/Mum/2025 9 business should be carried out. Commercial expediency has to be seen from the point of view of businessman. Here in this case if the i…

Tata Cummins Private Limited, Pune vs. The DCIT Circle-1-Jamshedpur and the Assessment Unit, Income-Tax Department, NFAC, Delhi, Jamshedpur

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

ITA 430/RAN/2024[2021-22]Status: DisposedITAT Ranchi12 Jun 2025AY 2021-22

Bench: Shri George Mathan & Shri Ratnesh Nandan Sahaytata Cummins Private Limited, D.C.I.T., Cummins India Office, Tower-A, 7Th Circle-1, Vs. Floor, Survey No. 21, Balewadi, Pune, Jamshedpur. Maharashtra. Pan No. Aaact 6353 L Appellant/ Assessee Respondent/ Revenue

…nt of view of businessman. Here in this case if the investment has made keeping assessee's own business objective of projection of films and media entertainment, then such commercial wisdom cannot be questioned." ii. In CIT v Panipat Woolen and General Mills (103 ITR 66), the Supreme Court has held that held that the test of commercial expediency cannot be reduced in the shape of a ritualistic formula, nor can it be put in a water-tight compartment so as to be confined in a straight-jacket. The test merely means that the court will place itself in the position of a businessman and find out whether the expenses in…

Jt.CIT (OSD) Central Circle 16, New Delhi vs. Nidra Hospitality P.Ltd, New Delhi

Appeal is dismissed

ITA 1954/DEL/2023[2017-18]Status: DisposedITAT Delhi18 Dec 2024AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri M. Balaganeshassessment Year: 2017-18 Jt. Cit(Osd), Vs. M/S. Nidra Hospitality P. Ltd., Central Circle-16, 32/7, Plot No. 9, New Delhi Samalka, Nh-8, New Delhi Pan :Aaccn9116H (Appellant) (Respondent) Assessee By Ms. Jyoti Narula, Ca Ms. Himani Chauhan, Ca Department By Sh. Akhilesh Kumar Yadav, Sr. Dr Date Of Hearing 05.12.2024 Date Of Pronouncement 18.12.2024 Order

Section 143(3)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER Assessment Year: 2017-18 Jt. CIT(OSD), Vs. M/s. Nidra Hospitality P. Ltd., Central Circle-16, 32/7, Plot No. 9, New Delhi Samalka, NH-8, New Delhi PAN :AACCN9116H (Appellant) (Respondent) Assessee by Ms. Jyoti Narula, CA Ms. Himani Chauhan, CA Department by Sh. Akhilesh Kumar Yadav, Sr. DR Date of hearing 05.12.2024 Date of pronouncement 18.12.2024 ORDER PER SATBEER SINGH GODARA, JM This Revenue’s appeal for assessment year 2017-18, arises against the Commis…

Shaha Finlease Private Limited, Mumbai vs. Dy Commissioner of Income Tax 13(2)(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 4182/MUM/2023[2013-14]Status: DisposedITAT Mumbai17 Dec 2024AY 2013-14

Bench: SHRI AMIT SHUKLA (Judicial Member), MS PADMAVATHY S (Accountant Member)

Section 143(3)Section 56Section 56(1)(viib)Section 68

…ch manner risk has to be undertaken. Such an approach of the revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC)and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable 12 Shaha Finlease Pvt. Ltd., and how the business should be carried out. Here in this case if the investment has made keeping assessee's own business objective of projection of films and media entertainment, then such comme…

People Care Hospitals Private Limited, Faridabad vs. ITO, Ward 2(1), Faridabad

In the result, the appeals of the assesses are allowed

ITA 100/DEL/2021[2016-17]Status: DisposedITAT Delhi08 Nov 2024AY 2016-17

Bench: Sh. S. Rifaur Rahman & Sh. Sudhir Kumarassessment Year: 2016-17 People Care Hospitals Private Vs Ito Limited, Plot No.1066, Baba Ward- 2 (1) Nagar, Near Janta Barat Ghar, Faridabad Old Faridabad, Haryana 121002 Pan No.Aagcp8745G (Appellant) (Respondent) Assessment Year: 2016-17 Geranium Barkers Pvt. Ltd. Vs Ito 103/B, Near Shyamji Mandir Ward-1 (3) Malerna Road, Adarsh Nagar, Faridabad Ballabgarh Haryana -122004 Pan No.Aafcg3396P (Appellant) (Respondent) Assessment Year: 2016-17 Riven Health Club Pvt. Ltd. Vs Ito Ff-9, Vishnu Place Near Ward- 2 (2) Neelam Flyover Sector-20B Faridabad Faridabad Haryana121001 Pan No. Aagcr1343A (Appellant) (Respondent) Appellants By Sh. Rajeev Saxena, Advocate Ms. Sumangla Saxena, Advocate Sh. Dishant Sethi, Advocate

Section 131oSection 142(1)Section 143Section 143(2)Section 143(3)Section 251(1)Section 271(1)(c)Section 56(2)(viib)Section 68

…anner risk has to be undertaken. Such an approach of the 17 revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC) and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable and how the business should be carried out. Commercial expediency has to be seen from the point of view of businessman. Here in this case if the investment has made keeping assessee's own business objective of projection of…

Riven Health Club Pvt. Ltd., Faridabad vs. ITO Ward-2(2), Faridabad

In the result, the appeals of the assesses are allowed

ITA 103/DEL/2021[2016-17]Status: DisposedITAT Delhi06 Nov 2024AY 2016-17

Bench: Sh. S. Rifaur Rahman & Sh. Sudhir Kumarassessment Year: 2016-17 People Care Hospitals Private Vs Ito Limited, Plot No.1066, Baba Ward- 2 (1) Nagar, Near Janta Barat Ghar, Faridabad Old Faridabad, Haryana 121002 Pan No.Aagcp8745G (Appellant) (Respondent) Assessment Year: 2016-17 Geranium Barkers Pvt. Ltd. Vs Ito 103/B, Near Shyamji Mandir Ward-1 (3) Malerna Road, Adarsh Nagar, Faridabad Ballabgarh Haryana -122004 Pan No.Aafcg3396P (Appellant) (Respondent) Assessment Year: 2016-17 Riven Health Club Pvt. Ltd. Vs Ito Ff-9, Vishnu Place Near Ward- 2 (2) Neelam Flyover Sector-20B Faridabad Faridabad Haryana121001 Pan No. Aagcr1343A (Appellant) (Respondent) Appellants By Sh. Rajeev Saxena, Advocate Ms. Sumangla Saxena, Advocate Sh. Dishant Sethi, Advocate

Section 131oSection 142(1)Section 143Section 143(2)Section 143(3)Section 251(1)Section 271(1)(c)Section 56(2)(viib)Section 68

…anner risk has to be undertaken. Such an approach of the 17 revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC) and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable and how the business should be carried out. Commercial expediency has to be seen from the point of view of businessman. Here in this case if the investment has made keeping assessee's own business objective of projection of…

Geranium Bakers Private Lmited, Ballabhgarh vs. ITO Ward-1(3), Faridabad

In the result, the appeals of the assesses are allowed

ITA 102/DEL/2021[2016-17]Status: DisposedITAT Delhi06 Nov 2024AY 2016-17

Bench: Sh. S. Rifaur Rahman & Sh. Sudhir Kumarassessment Year: 2016-17 People Care Hospitals Private Vs Ito Limited, Plot No.1066, Baba Ward- 2 (1) Nagar, Near Janta Barat Ghar, Faridabad Old Faridabad, Haryana 121002 Pan No.Aagcp8745G (Appellant) (Respondent) Assessment Year: 2016-17 Geranium Barkers Pvt. Ltd. Vs Ito 103/B, Near Shyamji Mandir Ward-1 (3) Malerna Road, Adarsh Nagar, Faridabad Ballabgarh Haryana -122004 Pan No.Aafcg3396P (Appellant) (Respondent) Assessment Year: 2016-17 Riven Health Club Pvt. Ltd. Vs Ito Ff-9, Vishnu Place Near Ward- 2 (2) Neelam Flyover Sector-20B Faridabad Faridabad Haryana121001 Pan No. Aagcr1343A (Appellant) (Respondent) Appellants By Sh. Rajeev Saxena, Advocate Ms. Sumangla Saxena, Advocate Sh. Dishant Sethi, Advocate

Section 131oSection 142(1)Section 143Section 143(2)Section 143(3)Section 251(1)Section 271(1)(c)Section 56(2)(viib)Section 68

…anner risk has to be undertaken. Such an approach of the 17 revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC) and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable and how the business should be carried out. Commercial expediency has to be seen from the point of view of businessman. Here in this case if the investment has made keeping assessee's own business objective of projection of…

Assistant Commissioner of Income Tax, Circle -1, Nagpur vs. M/S Raghav Finvest Pvt Ltd, Nagpur

In the result, appeal filed by the Revenue is dismissed

ITA 121/NAG/2020[2012-13]Status: DisposedITAT Nagpur25 Oct 2024AY 2012-13

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Abhay AgrawalFor Respondent: Shri Abhay Y. Marathe

…hi HC) approved by SC in 288 ITR 1, CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381 (SC), J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC), Aluminium Corpn.of India Ltd. v. CIT [1972] 86 ITR 11 (SC) and CIT v. Panipat Woollen & General Mills Co. Ltd. [1976] 103 ITR 66 (SC). 4.8 During the course of appellate proceedings, the appellant was asked about applicability of provisions of section 56(2)(viib) of the Act. The appellant submitted that the aforesaid provision has been inserted for the first time vide Finance Act 2012 w.e.f 01/04/2013. This has been clarified vide CBDT Circular No.3/2012 dated 12/06/2012. T…

Dy Commissioner of Income Tax, Circle-1, Nagpur vs. M/S Nihal Gits Pvt.Ltd, Nagpur

In the result, appeal filed by the Revenue is dismissed

ITA 95/NAG/2018[2012-2013]Status: DisposedITAT Nagpur25 Oct 2024AY 2012-2013

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Abhay AgrawalFor Respondent: Shri Abhay Y. Marathe

…hi HC) approved by SC in 288 ITR 1, CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381 (SC), J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC), Aluminium Corpn.of India Ltd. v. CIT [1972] 86 ITR 11 (SC) and CIT v. Panipat Woollen & General Mills Co. Ltd. [1976] 103 ITR 66 (SC). 4.8 During the course of appellate proceedings, the appellant was asked about applicability of provisions of section 56(2)(viib) of the Act. The appellant submitted that the aforesaid provision has been inserted for the first time vide Finance Act 2012 w.e.f 01/04/2013. This has been clarified vide CBDT Circular No.3/2012 dated 12/06/2012. T…

Asstt.Commissioner of Income Tax Circle-1, Nagpur vs. Vishnu Gilts Pvt.Lt, Nagpur

In the result, appeal filed by the Revenue is dismissed

ITA 237/NAG/2018[2012-13]Status: DisposedITAT Nagpur25 Oct 2024AY 2012-13

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Abhay AgrawalFor Respondent: Shri Abhay Y. Marathe

…hi HC) approved by SC in 288 ITR 1, CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381 (SC), J.K. Woollen Mfrs. v. CIT [1969] 72 ITR 612 (SC), Aluminium Corpn.of India Ltd. v. CIT [1972] 86 ITR 11 (SC) and CIT v. Panipat Woollen & General Mills Co. Ltd. [1976] 103 ITR 66 (SC). 4.8 During the course of appellate proceedings, the appellant was asked about applicability of provisions of section 56(2)(viib) of the Act. The appellant submitted that the aforesaid provision has been inserted for the first time vide Finance Act 2012 w.e.f 01/04/2013. This has been clarified vide CBDT Circular No.3/2012 dated 12/06/2012. T…

Ags Developers Pvt Ltd, Jasola Delhi vs. Income Tax Officer Ward 1 (4), New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 2185/DEL/2024[2008-2009]Status: DisposedITAT Delhi18 Oct 2024AY 2008-2009

Bench: Shri Kul Bharat[Assessment Year : 2008-09] Ags Developers Pvt.Ltd., Vs Ito, H.No.47, Pocket Ii, Ward -1(4), Near Appollo Hospital, Jasola, New Delhi. New Delhi-110076. Pan-Aafca1795G Appellant Respondent Appellant By Shri Sandeep Goel, Adv. Respondent By Shri Siddharth B.S. Meena, Sr.Dr Date Of Hearing 04.09.2024 Date Of Pronouncement 18.10.2024

Section 143(1)Section 147Section 148Section 250Section 68

…sufficient when surrounding and attending facts predicate a cover up. These facts reflect and indicate proper paper work or documentation but genuineness, creditworthiness, identity are deeper and obtrusive. Hon’ble SC Panipat Wollen and General Mills [1976] 103 ITR 66, 74 Hon’ble SC Gosalia Shipping P Ltd [1978] 113 ITR 307, 311 Hon’ble SC Aloke Mitra [1980] 126 ITR, 599, 611 Hon’ble SC MB Kharwar [1969] 72 ITR 603 Hon’ble Kolha Hirdagarh Co. Ltd [1949] 17 ITR 545, 555 Bombay HC Hon’ble SC Juggilal Kamlapat [1969] 73 ITR 702 Hon’ble SC McDowell & Co [1985] 154 TTR 148 Hon’ble SC CIT Vs Durga Prasad More [1971]…

ITO, Ward-2(4), New Delhi vs. Antheia Constructions P.Ltd, New Delhi

In the result, both the appeals filed by the Revenue are dismissed

ITA 4963/DEL/2017[2014-15]Status: DisposedITAT Delhi13 Sept 2024AY 2014-15

Bench: Shri Saktijit Dey, Hon’Ble & Shri S.Rifaur Rahman

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri Kanv Bali, Sr. DR
Section 133Section 142(1)Section 143(2)

…junction in taxing statutes may not, except on peril of penalty, be violated, but it may lawfully be circumvented." The appellant has also placed reliance on the judgment of Hon'ble Supreme Court in the case of CIT Vs. Panipat Woollen & General Mills Co. Ltd. 103 ITR 66 (SC) "The test of commercial expediency cannot be reduced in the shape of a ritualistic formula, nor can it be put in a water-tight compartment so as to be confined in a strait-jacket. The test merely means that the Court will place itself in the position of a businessman and find out whether the expenses incurred could be said to have been laid o…

ITO, New Delhi vs. M/S Antheia Constructions Pvt. Ltd., New Delhi

In the result, both the appeals filed by the Revenue are dismissed

ITA 2373/DEL/2017[2013-14]Status: DisposedITAT Delhi13 Sept 2024AY 2013-14

Bench: Shri Saktijit Dey, Hon’Ble & Shri S.Rifaur Rahman

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri Kanv Bali, Sr. DR
Section 133Section 142(1)Section 143(2)

…junction in taxing statutes may not, except on peril of penalty, be violated, but it may lawfully be circumvented." The appellant has also placed reliance on the judgment of Hon'ble Supreme Court in the case of CIT Vs. Panipat Woollen & General Mills Co. Ltd. 103 ITR 66 (SC) "The test of commercial expediency cannot be reduced in the shape of a ritualistic formula, nor can it be put in a water-tight compartment so as to be confined in a strait-jacket. The test merely means that the Court will place itself in the position of a businessman and find out whether the expenses incurred could be said to have been laid o…

Sparsh Beauty Care Pvt. Ltd., Haryana vs. ITO Ward-2(4), Haryana

In the result, the appeals of the assesses are allowed

ITA 86/DEL/2021[2016-17]Status: DisposedITAT Delhi05 Sept 2024AY 2016-17

Bench: Dr. B. R.R. Kumar & Sh. Sudhir Kumarassessment Year: 2016-17 M/S. Punyah Building Vs Ito Materials Pvt. Ltd. Ward-2 (1) House No.1002, Near Talab Faridabad Shiv Colony, Old Faridabad Haryana Ballahgarh Haryana 122002 Pan No.Aagcp8742B (Appellant) (Respondent) Assessment Year: 2016-17 Sparsh Beauty Care Pvt. Ltd. Vs Ito Plot No.1066, Near Janta Barat Ward-2 (4) Ghar Baba Nagar, Faridabad Faridabad Haryana 121002 Haryana Pan No.Aascs2575D (Appellant) (Respondent) Assessment Year: 2016-17 Speedy Courier Services Pvt. Vs Ito Ltd. Ward- 2 (4) Plot No.1022, Near Talab Shiv Faridabad Colony, Faridabad Haryana Pan No.Aascs2579R (Appellant) (Respondent)

Section 131oSection 142(1)Section 143Section 143(2)Section 143(3)Section 251(1)Section 271(1)(c)Section 56(2)(viib)Section 68

…h manner risk has to be undertaken. Such an approach of the revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC) and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable and how the business should be carried out. Commercial expediency has to be seen from the point of view of businessman. Here in this case if the investment has made keeping assessee's own business objective of projection of…

Punyah Building Materials Pvt Ltd, Faridabad vs. ITO Ward - 2(1), Faridabad

In the result, the appeals of the assesses are allowed

ITA 81/DEL/2021[2016-17]Status: DisposedITAT Delhi05 Sept 2024AY 2016-17

Bench: Dr. B. R.R. Kumar & Sh. Sudhir Kumarassessment Year: 2016-17 M/S. Punyah Building Vs Ito Materials Pvt. Ltd. Ward-2 (1) House No.1002, Near Talab Faridabad Shiv Colony, Old Faridabad Haryana Ballahgarh Haryana 122002 Pan No.Aagcp8742B (Appellant) (Respondent) Assessment Year: 2016-17 Sparsh Beauty Care Pvt. Ltd. Vs Ito Plot No.1066, Near Janta Barat Ward-2 (4) Ghar Baba Nagar, Faridabad Faridabad Haryana 121002 Haryana Pan No.Aascs2575D (Appellant) (Respondent) Assessment Year: 2016-17 Speedy Courier Services Pvt. Vs Ito Ltd. Ward- 2 (4) Plot No.1022, Near Talab Shiv Faridabad Colony, Faridabad Haryana Pan No.Aascs2579R (Appellant) (Respondent)

Section 131oSection 142(1)Section 143Section 143(2)Section 143(3)Section 251(1)Section 271(1)(c)Section 56(2)(viib)Section 68

…h manner risk has to be undertaken. Such an approach of the revenue has been judicially frowned by the Hon'ble Apex Court on several occasions, for instance in the case of SA Builders, 288 ITR 1 (SC) and CIT vs. Panipat Woollen and General Mills Company Ltd., 103 ITR 66 (SC). The Courts have held that Income Tax Department cannot sit in the armchair of businessman to decide what is profitable and how the business should be carried out. Commercial expediency has to be seen from the point of view of businessman. Here in this case if the investment has made keeping assessee's own business objective of projection of…