Satkal Papers P Ltd. v. Hon’ble Bombay High Court

114 ITR 256High Court1978#8692 most cited

What is Satkal Papers P Ltd. v. Hon’ble Bombay High Court authority for?

The court considers whether a deduction is allowable when the expense is incurred for the sponsorship of studies abroad for a child who was 21 years old at the time of the agreement.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2023.

Also referred to as

Satkal Papers P Ltd. v. CIT · section 40a(2)(a) · section 37(1) · child sponsorship · studies abroad · genuineness of transaction · fair market value · related party expense · income tax deduction

Issues it is cited on

section 40a(2)(a)section 40a(2)childsection 40afair market valuesection 37(1)section 133section 133asection 40section 37genuineness of the transactionsection 133(6)

Judgments citing Satkal Papers P Ltd. v. Hon’ble Bombay High Court

Dy. Commissioner of Income-Tax, Central Circle-1(2), Mumbai vs. M/S Capacit"E Infraprojects Ltd, Mumbai

In the result, the appeals filed by the Revenue are allowed

ITA 957/MUM/2023[2020-21]Status: DisposedITAT Mumbai29 Dec 2023AY 2020-21

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Ita Nos. 954 To 957/Mum/2023 Assessment Years: 2017-18 To 2020-21 Dy. Cit, Central Circle-1(2), M/S Capacit’E Infraprojects 906, 9Th Floor, Pratistha Ltd., Bhavan, Old Cgo Building Vs. 605-607, Shrikant Chamber, (Annexe), M.K. Road, Phase-I, 6Th Floor, Adjacent To Mumbai-400020. R K Studio, Sion-Trombay Road, Chembur, Mumbai-400071. Pan No. Aaecc 9463 G Appellant Respondent

For Appellant: Mr. Viraj MehtaFor Respondent: Mr. Solgy Jose T. Kottaram, CIT-DR
Section 37(1)

…of the assessee. The Ld. CIT(A) relied on the decision of the Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs CIT (114 ITR 256). 14.2 Before us the learned DR referred Before us the learned DR referred to the age of sh Asutosh to the age of sh Asutosh Katyal mentioned as 21 years at the time of entering agreement for Katyal mentioned as 21 years at the time of entering agreement for Katyal mentioned as 21 years at the time of entering agreement for sponsoring of studies…

Dy. Commissioner of Income Tax, Central Circle-1(2), Mumbai vs. M/S Capacit"E Infraproject Ltd, Mumbai

In the result, the appeals filed by the Revenue are allowed

ITA 956/MUM/2023[2019-20]Status: DisposedITAT Mumbai29 Dec 2023AY 2019-20

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Ita Nos. 954 To 957/Mum/2023 Assessment Years: 2017-18 To 2020-21 Dy. Cit, Central Circle-1(2), M/S Capacit’E Infraprojects 906, 9Th Floor, Pratistha Ltd., Bhavan, Old Cgo Building Vs. 605-607, Shrikant Chamber, (Annexe), M.K. Road, Phase-I, 6Th Floor, Adjacent To Mumbai-400020. R K Studio, Sion-Trombay Road, Chembur, Mumbai-400071. Pan No. Aaecc 9463 G Appellant Respondent

For Appellant: Mr. Viraj MehtaFor Respondent: Mr. Solgy Jose T. Kottaram, CIT-DR
Section 37(1)

…of the assessee. The Ld. CIT(A) relied on the decision of the Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs CIT (114 ITR 256). 14.2 Before us the learned DR referred Before us the learned DR referred to the age of sh Asutosh to the age of sh Asutosh Katyal mentioned as 21 years at the time of entering agreement for Katyal mentioned as 21 years at the time of entering agreement for Katyal mentioned as 21 years at the time of entering agreement for sponsoring of studies…

Dy. Commissioner of Income Tax, Central Circle-1(2), Mumbai vs. M/S Capacit"E Infraproject Ltd, Mumbai

In the result, the appeals filed by the Revenue are allowed

ITA 955/MUM/2023[2018-19]Status: DisposedITAT Mumbai29 Dec 2023AY 2018-19

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Ita Nos. 954 To 957/Mum/2023 Assessment Years: 2017-18 To 2020-21 Dy. Cit, Central Circle-1(2), M/S Capacit’E Infraprojects 906, 9Th Floor, Pratistha Ltd., Bhavan, Old Cgo Building Vs. 605-607, Shrikant Chamber, (Annexe), M.K. Road, Phase-I, 6Th Floor, Adjacent To Mumbai-400020. R K Studio, Sion-Trombay Road, Chembur, Mumbai-400071. Pan No. Aaecc 9463 G Appellant Respondent

For Appellant: Mr. Viraj MehtaFor Respondent: Mr. Solgy Jose T. Kottaram, CIT-DR
Section 37(1)

…of the assessee. The Ld. CIT(A) relied on the decision of the Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs CIT (114 ITR 256). 14.2 Before us the learned DR referred Before us the learned DR referred to the age of sh Asutosh to the age of sh Asutosh Katyal mentioned as 21 years at the time of entering agreement for Katyal mentioned as 21 years at the time of entering agreement for Katyal mentioned as 21 years at the time of entering agreement for sponsoring of studies…

Dy. Commissioner of Income Tax, Central Circle-1(2), Mumbai vs. M/S Capacit"E Infraprojects Ltd, Mumbai

In the result, the appeals filed by the Revenue are allowed

ITA 954/MUM/2023[2017-2018]Status: DisposedITAT Mumbai29 Dec 2023AY 2017-2018

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Ita Nos. 954 To 957/Mum/2023 Assessment Years: 2017-18 To 2020-21 Dy. Cit, Central Circle-1(2), M/S Capacit’E Infraprojects 906, 9Th Floor, Pratistha Ltd., Bhavan, Old Cgo Building Vs. 605-607, Shrikant Chamber, (Annexe), M.K. Road, Phase-I, 6Th Floor, Adjacent To Mumbai-400020. R K Studio, Sion-Trombay Road, Chembur, Mumbai-400071. Pan No. Aaecc 9463 G Appellant Respondent

For Appellant: Mr. Viraj MehtaFor Respondent: Mr. Solgy Jose T. Kottaram, CIT-DR
Section 37(1)

…of the assessee. The Ld. CIT(A) relied on the decision of the Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs Hon’ble Bombay High Court in the case of Satkal Papers P Ltd Vs CIT (114 ITR 256). 14.2 Before us the learned DR referred Before us the learned DR referred to the age of sh Asutosh to the age of sh Asutosh Katyal mentioned as 21 years at the time of entering agreement for Katyal mentioned as 21 years at the time of entering agreement for Katyal mentioned as 21 years at the time of entering agreement for sponsoring of studies…

Rishi Chemical Works Pvt. Ltd., Kolkata vs. A.C.I.T., Central Circle-2(1), Kolkata

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 542/KOL/2022[2014-2015]Status: DisposedITAT Kolkata17 Jan 2023AY 2014-2015

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

…but it was not sufficient to hold that appellant assessee had proved nexus between expenditure and its'business activities. The Hon’ble court upheld the action of the A.O. and in the process also distinguished the case of Sakai Papers Pvt. Ltd. Vs. CIT (1978) 114 ITR 256 (Bombay H.C.). This is one of the judgements on which the assessee has relied in support of its claim. (c) In the case of Westin Hospitability Services Pvt. Ltd. Vs. DCIT, Central Circle-39 (2011) 9 taxmann.com 79 (Mumbai), the Hon'ble ITAT upheld the decision of the AO regarding disallowances of foreign education expenses of director’s son. Asse…

Rishi Chemical Works Pvt. Ltd., Kolkata vs. ACIT, Central Circle-2(1), Kolkata

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 541/KOL/2022[2013-2014]Status: DisposedITAT Kolkata17 Jan 2023AY 2013-2014

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

…but it was not sufficient to hold that appellant assessee had proved nexus between expenditure and its'business activities. The Hon’ble court upheld the action of the A.O. and in the process also distinguished the case of Sakai Papers Pvt. Ltd. Vs. CIT (1978) 114 ITR 256 (Bombay H.C.). This is one of the judgements on which the assessee has relied in support of its claim. (c) In the case of Westin Hospitability Services Pvt. Ltd. Vs. DCIT, Central Circle-39 (2011) 9 taxmann.com 79 (Mumbai), the Hon'ble ITAT upheld the decision of the AO regarding disallowances of foreign education expenses of director’s son. Asse…

Soujanya Color Private Limited, Mumbai vs. DCIT Circle-3, Mumbai

ITA 2041/MUM/2018[2014-15]Status: DisposedITAT Mumbai10 Feb 2020AY 2014-15

Bench: Shri Pawan Singh, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 2041/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2014-15)

For Appellant: Ms. Hiral D. Sejpal, ARFor Respondent: Shri V. Vinod Kumar
Section 143Section 143(1)Section 143(2)Section 37

…IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JM & SHRI S. RIFAUR RAHMAN, AM आयकरअपीलसं./ I.T.A. No. 2041/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2014-15) DCIT Circle-3 Soujanya Color Pvt. Ltd. बिधम/ Room No. 2, B ‘Wing, 6th C-35/36, TTC Industrial floor, Ashar IT Park, Area, MIDC Pawane, Vs. Road, No. L6 Z, Wagle Navi Mumbai-400 705 Estate , Thane-400 604 स्थायीलेखासं./जीआइआरसं./PAN No. AAMCS0859G (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant by : Ms. Hiral D. Sejpal, AR प्रत्यथीकीओरसे/Respondentby : Shri V. Vinod Kumar, DR सुनवाईकीतारीख/ : 13.01.2020…

Marvel Drugs P. Ltd, Mumbai vs. ACIT 6(3), Mumbai

In the result, all the three appeals of the assessee are partly allowed for statistical purposes

ITA 1089/MUM/2010[2004-05]Status: DisposedITAT Mumbai20 May 2019AY 2004-05

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year: 2004-05 Assessment Year: 2005-06 Assessment Year: 2006-07

For Appellant: Shri Nishant Thakkar, A.RFor Respondent: Shri D.G. Pansari, D.R
Section 143(1)Section 40A(2)(b)Section 40a

…ing expenses incurred on account of Abhishek Shah were personal in nature and thereby confirming the disallowance of Rs. 24,02,435/-. 2. The learned CIT(A) erred in distinguishing the decision of the Hon'ble Bombay High Court in case of Sakal Paper Pvt. Ltd. 114 ITR 256 without 3. The learned CIT(A) erred in ignoring the contribution made by Abhishek Shah while undergoing training which evidences the fact that these expenses were in the nature of business expenditure. 4. The learned CIT(A) erred in holding that as Abhishek Shah and Bhowli Shah were not connected to the appellant either as employee or as adviso…

M/S. Shree Lakhi Metals and Steels Pvt. Ltd., Kolkata vs. Principal CIT, Central - 3, Kolkata

Appeal is allowed partly in above terms

ITA 523/KOL/2018[2013-14]Status: DisposedITAT Kolkata17 May 2019AY 2013-14

Bench: Shri J. Sudhakar Reddy & Shri S.S. Godara) I.T.A No. 523/Kol/2018 Assessment Year: 2013-14 M/S. Shree Lakhi Metals & Steels Pvt. Ltd.....…..……………….…...……..…..………….....….....Appellant 3Rd Floor 8C, Maharshi Devendra Road Kolkata – 700 007 [Pan : Aakcs 8597 F] Vs. Pr. Commissioner Of Income Tax, Central - 3, Kolkata......................................................Respondent Appearances By: Shri S.M. Surana, Advocate, Appeared On Behalf Of The Assessee. Shri Radhey Shyam, Cit D/R. Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : February 20Th, 2019 Date Of Pronouncing The Order : May 17Th, 2019 Order Per S.S. Godara, Jm :- This Assessee’S Appeal For Assessment Year 2013-14 Arises Against The Order Of The Principal Commissioner Of Income Tax - 3, Kolkata Passed In Case No. F. No. Pr. Cit- 3/Hqrs.-3/Kol/U/S263/Shree Lakhi Metals & Steel Pvt. Ltd./2017-18, Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961 (In Short ‘The Act’).

Section 143(3)Section 263Section 37Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA (Before Shri J. Sudhakar Reddy, Accountant Member & Shri S.S. Godara, Judicial Member) I.T.A No. 523/Kol/2018 Assessment Year: 2013-14 M/s. Shree Lakhi Metals and Steels Pvt. Ltd.....…..……………….…...……..…..………….....….....Appellant 3rd Floor 8C, Maharshi Devendra Road Kolkata – 700 007 [PAN : AAKCS 8597 F] Vs. Pr. Commissioner of Income Tax, Central - 3, Kolkata......................................................Respondent Appearances by: Shri S.M. Surana, Advocate, appeared on behalf of the assessee. Shri Radhey Shyam, CIT D/R. appearing on behal…

Singhi & Co., Kolkata vs. ACIT, Cir-54, Kolkata

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

ITA 971/KOL/2016[2010-2011]Status: DisposedITAT Kolkata28 Nov 2018AY 2010-2011

Bench: Sh. P.M.Jagtap & Sh. S.S.Viswanethra Ravi[Assessment Year: 2010-11] Vs Singhi & Co., Acit, 1B, Old Post Office Street, Circle-54, 54/1, Rafi Kolkata-700001. Ahmed Kidwai Road, Pan-Aasfs9578D Kolkata-700016. (Appellant) (Respondent) Appellant By Sh.Akkal Dudhwewala, Fca Respondent By Sh. Pradip Majumden, Addl. Cit. Sr.Dr Date Of Hearing 03.09.2018 Date Of Pronouncement 28.11.2018 Order Per S.S. Viswanethra Ravi

…’ble High Court of Allahabad in the case of CIT vs U.P.Asbestos Ltd. [2014] 52 taxmann.com 452 (Allahabad), in the case of CIT vs Naidunia News & Networking P.Ltd. [2012] 23 taxmann.com 422 (Madhya Pradesh) and in the case of Sakal Papers P.Ltd. Vs CIT [1978] 114 ITR 256 (Bom.). We find no evidence whatsoever filed before us or before the authorities below except contract 3 [Assessment Year: 2010-11] dated 05.10.2008 for education cost, partnership agreement dated 01.12.2007 and supplementary partnership dated 01.04.2009 at pages 09 to 19 of the Paper Book respectively. But, no such evidence was filed to show th…

Ajanta Pharma Ltd, Mumbai vs. DCIT Cen Cir 7(2), Mumbai

In the result, appeal of the assessee is allowed, as above

ITA 6882/MUM/2016[2012-13]Status: DisposedITAT Mumbai19 Jan 2018AY 2012-13

Bench: Shri G.S. Pannu & Shri Ram Lal Negi: A.Y : 2012-13

For Appellant: Shri J.D. Mistri &For Respondent: Shri R.P. Meena
Section 115JSection 132(4)Section 153ASection 271Section 271(1)(c)Section 292B

…s training expense in the account books, and was fully documented and genuinely incurred. It has been pointed out that though assessee has an arguable case in view of the judgment of the Hon'ble Bombay High Court in the case of Sakal Papers (P.) Ltd. vs. CIT, 114 ITR 256 (Bom.), but it decided to withdraw the claim for deduction in the statement 19 M/s. Ajanta Pharma Ltd. recorded u/s 132(4) of the Act and included the same in the return of income filed in pursuance of notice u/s 153A(1) of the Act. 17. Similarly, with regard to the disallowance out of purchases, the learned representative pointed out that the…

ITO WD 8(2)(1), Mumbai vs. Haldyn Glass Gujarat Ltd, Mumbai

ITA 3069/MUM/2014[2004-05]Status: DisposedITAT Mumbai01 Jan 2016AY 2004-05
For Respondent: Ms. Kusum Bansal-DR
Section 10(14)Section 143(3)Section 254(1)Section 37

…on of Board of directors,that he was a good student and had knowledge of the working of the company. It is not uncommon for companies to reimburse expenditure incurred on education of directors. Here,we would like to refer to the case of Sakal Papers Pvt.Ltd.(114 ITR 256). Facts of the case were that the assessee, a closely-held company with two shareholders (husband and wife),both directors,published a leading Marathi newspaper. Their daughter, who was a Master of Arts with English and French as special subjects, worked in the editorial department of the paper from September, 1955, starting as an apprentice. In…

Satkal Papers P Ltd. v. Hon’ble Bombay High Court (114 ITR 256) — Cited in 12 Judgments | BharatTax