Saurashtra Cement and Chemical Industries Ltd. v. CIT

213 ITR 523High Court1995#248 most cited

What is Saurashtra Cement and Chemical Industries Ltd. v. CIT authority for?

Expenditure is deductible in the year it is determined and crystallised as a liability, even if it relates to a transaction of an earlier year, provided accounts are maintained on a mercantile basis.

311

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2010 to 2026.

Also referred to as

Saurashtra Cement and Chemical Industries Ltd. · CIT · 213 ITR 523 · deductible expenditure · mercantile basis · liability crystallised · earlier year transaction

Also reported as

11 CTR 139

Sections most often in play

Section 143(3)Section 37(1)Section 14ASection 40(a)(ia)Section 35DSection 44ABSection 10(2A)Section 143(3A)

Issues it is cited on

recognised provident fundsection 43b(f)section 50bapproved gratuity fundsection 40a(9)section 211initial assessment yearsection 35dwholly and exclusively for businesssection 80jsection 115jasection 80hhc

Judgments citing Saurashtra Cement and Chemical Industries Ltd. v. CIT

The Dy.Commissioner of Income-Tax, Jammu vs. M/S Fill Industries, Srinagar

In the result appeal of the assessee ground no 4 to 4

ITA 290/ASR/2015[2003-04]Status: DisposedITAT Amritsar24 Feb 2023AY 2003-04

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250Section 32Section 43(1)Section 80I

…machinery and therefore, it cannot be held that undertakings are not eligible to claim deduction u/s 80IB of the Act. We rely upon the decision of Hon’ble Gujarat High Court in the case of CIT Vs. Saurashtra Cement and Chemicals Industries Limited reported in 123 ITR 669 in this regard. Also, we rely upon the decisions of various courts of law I.T.A. Nos.288 to 294/Asr/2015 33 i.e.i) CIT vs. Paul Brothers 216 ITR 548 (Bombay) ii) G.B. Bros and Konda Rajagopala Chetty vs. ITO 262 ITR 774 (AP) iii) CIT vs. Bhilai Engineering Corporation (P) ltd. 133 ITR 687 (MP) iv) ITO vs. Laxmi Packers (2007) 14 SOT 303 that on…

The Dy.Commissioner of Income-Tax, Jammu vs. M/S Fill Industries, Srinagar

In the result appeal of the assessee ground no 4 to 4

ITA 289/ASR/2015[2002-03]Status: DisposedITAT Amritsar24 Feb 2023AY 2002-03

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250Section 32Section 43(1)Section 80I

…machinery and therefore, it cannot be held that undertakings are not eligible to claim deduction u/s 80IB of the Act. We rely upon the decision of Hon’ble Gujarat High Court in the case of CIT Vs. Saurashtra Cement and Chemicals Industries Limited reported in 123 ITR 669 in this regard. Also, we rely upon the decisions of various courts of law I.T.A. Nos.288 to 294/Asr/2015 33 i.e.i) CIT vs. Paul Brothers 216 ITR 548 (Bombay) ii) G.B. Bros and Konda Rajagopala Chetty vs. ITO 262 ITR 774 (AP) iii) CIT vs. Bhilai Engineering Corporation (P) ltd. 133 ITR 687 (MP) iv) ITO vs. Laxmi Packers (2007) 14 SOT 303 that on…

M/S Fil Industries Ltd, Srinagar vs. The Addl. Commissioner of Income Tax, Srinagar

In the result appeal of the assessee ground no 4 to 4

ITA 255/ASR/2015[2008-09]Status: DisposedITAT Amritsar24 Feb 2023AY 2008-09

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250Section 32Section 43(1)Section 80I

…machinery and therefore, it cannot be held that undertakings are not eligible to claim deduction u/s 80IB of the Act. We rely upon the decision of Hon’ble Gujarat High Court in the case of CIT Vs. Saurashtra Cement and Chemicals Industries Limited reported in 123 ITR 669 in this regard. Also, we rely upon the decisions of various courts of law I.T.A. Nos.288 to 294/Asr/2015 33 i.e.i) CIT vs. Paul Brothers 216 ITR 548 (Bombay) ii) G.B. Bros and Konda Rajagopala Chetty vs. ITO 262 ITR 774 (AP) iii) CIT vs. Bhilai Engineering Corporation (P) ltd. 133 ITR 687 (MP) iv) ITO vs. Laxmi Packers (2007) 14 SOT 303 that on…

The West Bengal Power Development Corporation Ltd., Kolkata vs. D.C.I.T., Circle-4(2), Kolkata

In the result, all the appeals of the assessee are allowed

ITA 336/KOL/2020[2014-15]Status: DisposedITAT Kolkata20 Jan 2023AY 2014-15

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma

Section 250Section 43B

…recorded that more than 50 per cent of expenses could be claimed only on actual expenses, as they were covered under section 43B(d). ” 39. Similarly Hon’ble Gujarat High Court in the case of Saurashtra Cement and Chemical Industries Limited –vs.- CIT (1995) 213 ITR 523 (Guj.) has held as under:- “Merely because an expense relates to a transaction of an earlier year it does not become a liability payable in the earlier year unless it can be said that the liability was determined and crystallized in the year in question on the basis of maintaining accounts on the mercantile basis. In each case where the accounts…

The West Bengal Power Development Corporation Ltd., Kolkata vs. D.C.I.T., Circle-4(2), Kolkata

In the result, all the appeals of the assessee are allowed

ITA 335/KOL/2020[2012-13]Status: DisposedITAT Kolkata20 Jan 2023AY 2012-13

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma

Section 250Section 43B

…recorded that more than 50 per cent of expenses could be claimed only on actual expenses, as they were covered under section 43B(d). ” 39. Similarly Hon’ble Gujarat High Court in the case of Saurashtra Cement and Chemical Industries Limited –vs.- CIT (1995) 213 ITR 523 (Guj.) has held as under:- “Merely because an expense relates to a transaction of an earlier year it does not become a liability payable in the earlier year unless it can be said that the liability was determined and crystallized in the year in question on the basis of maintaining accounts on the mercantile basis. In each case where the accounts…

The West Bengal Power Development Corporation Ltd., Kolkata vs. D.C.I.T., Circle-4(2), Kolkata

In the result, all the appeals of the assessee are allowed

ITA 334/KOL/2020[2009-10]Status: DisposedITAT Kolkata20 Jan 2023AY 2009-10

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma

Section 250Section 43B

…recorded that more than 50 per cent of expenses could be claimed only on actual expenses, as they were covered under section 43B(d). ” 39. Similarly Hon’ble Gujarat High Court in the case of Saurashtra Cement and Chemical Industries Limited –vs.- CIT (1995) 213 ITR 523 (Guj.) has held as under:- “Merely because an expense relates to a transaction of an earlier year it does not become a liability payable in the earlier year unless it can be said that the liability was determined and crystallized in the year in question on the basis of maintaining accounts on the mercantile basis. In each case where the accounts…

The West Bengal Power Development Corporation Ltd., Kolkata vs. D.C.I.T., Circle-4(2), Kolkata

In the result, all the appeals of the assessee are allowed

ITA 333/KOL/2020[2007-08]Status: DisposedITAT Kolkata20 Jan 2023AY 2007-08

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma

Section 250Section 43B

…recorded that more than 50 per cent of expenses could be claimed only on actual expenses, as they were covered under section 43B(d). ” 39. Similarly Hon’ble Gujarat High Court in the case of Saurashtra Cement and Chemical Industries Limited –vs.- CIT (1995) 213 ITR 523 (Guj.) has held as under:- “Merely because an expense relates to a transaction of an earlier year it does not become a liability payable in the earlier year unless it can be said that the liability was determined and crystallized in the year in question on the basis of maintaining accounts on the mercantile basis. In each case where the accounts…

DCIT - CC-3(2), Mumbai vs. Aarti Drugs Limited, Mumbai

In the result, the appeal by the Revenue is partly allowed

ITA 2503/MUM/2021[2012-13]Status: DisposedITAT Mumbai20 Jan 2023AY 2012-13

Bench: Shri S. Rifaur Rahman & Shri Sandeep Singh Karhail

For Appellant: Shri S.S. Nagar a/wFor Respondent: Shri R.S. Srivastav
Section 139Section 14ASection 250Section 32(1)Section 801ASection 80I

…h the accounting treatment followed regularly. The appellant has taken the plea that since bank charges have crystallized in the year under consideration, same ought to be allowed in this year. The appellant has relied on the case of Saurashtra Cement (1995) (213 ITR 523)(Gujrat) in support of the proposition that even though theexpenditure relates to prior period, if the liability has accrued during the year, then the expenditure has to be allowed as deduction. On similar facts, I find that the then CIT (Appeal) has adjudicated the issue in appellant's own case for AY 2009-10 (in appeal no CIT (A)-14/IT 98/Rg.6(…

Excel Crop Care Limited, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 6(3), Mumbai

In the result, all 7 appeals pertaining to the assessee are disposed of by partly allowing the appeal is of the assessee and the learned assessing officer for assessment year 2009 – 10, 2010 – 11 a...

ITA 395/MUM/2018[2012-13]Status: DisposedITAT Mumbai09 Jan 2023AY 2012-13

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Jeet Kamdar, ARFor Respondent: Shri Suresh Periasamy, DR
Section 115JSection 143Section 145ASection 14ASection 80

…is accounted for in the books of account. The decision of the Honourable Bombay High Court in case of CIT versus Mahanagar gas Ltd as well as the decision of the Honourable Gujarat High Court in case of Saurashtra cement and chemical industries Ltd versus CIT 213 ITR 523 also supports the case of the assessee. Accordingly, ground number 3 of the appeal of the AO is dismissed. Identical ground number three is also raised for assessment year 2010 – 11 by the learned assessing officer in ITA number 4762/M/2015, which is also dismissed. 057. Accordingly, additional ground raised by the assessee on this aspect has al…

DCIT Cen Cir 6(3), Mumbai vs. Excel Crop Care Ltd, Mumbai

In the result, all 7 appeals pertaining to the assessee are disposed of by partly allowing the appeal is of the assessee and the learned assessing officer for assessment year 2009 – 10, 2010 – 11 a...

ITA 6665/MUM/2016[2011-12]Status: DisposedITAT Mumbai09 Jan 2023AY 2011-12

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Jeet Kamdar, ARFor Respondent: Shri Suresh Periasamy, DR
Section 115JSection 143Section 145ASection 14ASection 80

…is accounted for in the books of account. The decision of the Honourable Bombay High Court in case of CIT versus Mahanagar gas Ltd as well as the decision of the Honourable Gujarat High Court in case of Saurashtra cement and chemical industries Ltd versus CIT 213 ITR 523 also supports the case of the assessee. Accordingly, ground number 3 of the appeal of the AO is dismissed. Identical ground number three is also raised for assessment year 2010 – 11 by the learned assessing officer in ITA number 4762/M/2015, which is also dismissed. 057. Accordingly, additional ground raised by the assessee on this aspect has al…

DCIT CC 6(3), Mumbai vs. Excel Crop Care Ltd, Mumbai

In the result, all 7 appeals pertaining to the assessee are disposed of by partly allowing the appeal is of the assessee and the learned assessing officer for assessment year 2009 – 10, 2010 – 11 a...

ITA 4762/MUM/2015[2010-11]Status: DisposedITAT Mumbai09 Jan 2023AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Jeet Kamdar, ARFor Respondent: Shri Suresh Periasamy, DR
Section 115JSection 143Section 145ASection 14ASection 80

…is accounted for in the books of account. The decision of the Honourable Bombay High Court in case of CIT versus Mahanagar gas Ltd as well as the decision of the Honourable Gujarat High Court in case of Saurashtra cement and chemical industries Ltd versus CIT 213 ITR 523 also supports the case of the assessee. Accordingly, ground number 3 of the appeal of the AO is dismissed. Identical ground number three is also raised for assessment year 2010 – 11 by the learned assessing officer in ITA number 4762/M/2015, which is also dismissed. 057. Accordingly, additional ground raised by the assessee on this aspect has al…

Excel Crop Care Ltd, Mumbai vs. Asst CIT Cen Cir 38, Mumbai

In the result, all 7 appeals pertaining to the assessee are disposed of by partly allowing the appeal is of the assessee and the learned assessing officer for assessment year 2009 – 10, 2010 – 11 a...

ITA 3906/MUM/2015[2010-11]Status: DisposedITAT Mumbai09 Jan 2023AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Jeet Kamdar, ARFor Respondent: Shri Suresh Periasamy, DR
Section 115JSection 143Section 145ASection 14ASection 80

…is accounted for in the books of account. The decision of the Honourable Bombay High Court in case of CIT versus Mahanagar gas Ltd as well as the decision of the Honourable Gujarat High Court in case of Saurashtra cement and chemical industries Ltd versus CIT 213 ITR 523 also supports the case of the assessee. Accordingly, ground number 3 of the appeal of the AO is dismissed. Identical ground number three is also raised for assessment year 2010 – 11 by the learned assessing officer in ITA number 4762/M/2015, which is also dismissed. 057. Accordingly, additional ground raised by the assessee on this aspect has al…

ACIT CC 6(3), Mumbai vs. Excel Crop Care Ltd, Mumbai

In the result, all 7 appeals pertaining to the assessee are disposed of by partly allowing the appeal is of the assessee and the learned assessing officer for assessment year 2009 – 10, 2010 – 11 a...

ITA 7140/MUM/2014[2009-10]Status: DisposedITAT Mumbai09 Jan 2023AY 2009-10

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Jeet Kamdar, ARFor Respondent: Shri Suresh Periasamy, DR
Section 115JSection 143Section 145ASection 14ASection 80

…is accounted for in the books of account. The decision of the Honourable Bombay High Court in case of CIT versus Mahanagar gas Ltd as well as the decision of the Honourable Gujarat High Court in case of Saurashtra cement and chemical industries Ltd versus CIT 213 ITR 523 also supports the case of the assessee. Accordingly, ground number 3 of the appeal of the AO is dismissed. Identical ground number three is also raised for assessment year 2010 – 11 by the learned assessing officer in ITA number 4762/M/2015, which is also dismissed. 057. Accordingly, additional ground raised by the assessee on this aspect has al…

Vatika Hotels Pvt. Ltd., New Delhi vs. ACIT Central Circle-8, New Delhi

ITA 7833/DEL/2019[2009-10]Status: DisposedITAT Delhi11 Nov 2022AY 2009-10

Bench: Shri N.K. Billaiya & Shri Kul Bharat

For Appellant: Shri C.S. Aggarwal, Sr. AdvFor Respondent: Shri Sanjai Kumar Yadav, Addl. CIT-DR
Section 57

…r 2007–08, similar claim in subsequent assessment years cannot be denied to the assessee. Strong reliance was placed on the decision of the Hon'ble Bombay High Court in the case of Paul Brothers 216 ITR 548, Sourashtra Cement and of Chemicals Industries Ltd 123 ITR 669 Gujarat High Court and Sassoon Chemicals and Drugs Ltd 388 ITR 1 [Supreme Court]. 28. Per contra the learned DR strongly supported the findings of the ld. CITA. 29. We have carefully perused the orders of the authorities below. It is true that the said claim was made during the assessment proceedings for Assessment Year 2007-08 wherein the Ass…

Parry Phytoremedies Private Limited, (E.I.D. Parry India Limited), Pune vs. Deputy Commissioner of Income-Tax, Circle - 4, Pune

The appeal of the assessee is ALLOWED in aforestated terms

ITA 20/PUN/2019[2013-14]Status: DisposedITAT Pune10 Nov 2022AY 2013-14

Bench: Shri S. S. Viswanethra Ravi & Shri G. D. Padmahshaliआयकर अपऩल सं. / Ita No.20/Pun/2019 निर्धारण वर्ा / Assessment Year : 2013-2014 Parry Phytoremedies Private Limited (Now Known As E.I.D. Parry (India) Limited) S.No.73/2, Shivane Industrial Estate, Warje, Nda Rd, Nr Agarwal Godown, Pune – 411023 Pan: Aaccp9589J . . . . . . . अपऩलधथी / Appellant बनाम / V/S. Dy. Commissioner Of Income Tax, Circle – 4, Pune . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee By : Shri S. A. Gundecha Revenue By : Shri M. G. Jasnani सपिवधई की तधरऩख / Date Of Conclusive Hearing : 03/11/2022 घोर्णध की तधरऩख / Date Of Pronouncement : 10/11/2022 आदेश / Order Per G. D. Padmahshali, Am; This Appeal Challenges The Order Of Commissioner Of Income Tax (Appeals)-3, Pune [For Short “Cit(A)”] Dt. 01/02/2018 Passed U/S 250 Of The Income-Tax Act, 1961 [For Short “The Act”], Which Ascended Out Of Order Of Assessment Dt. 24/02/2016 Passed U/S 143(3) By The Dy. Commissioner Of Income Tax, Circle 4, Pune [For Short “Ao”] For Assessment Year [For Short “Ay”] 2013-14. Itat-Pune Page 1 Of 17

For Appellant: Shri S. A. GundechaFor Respondent: Shri M. G. Jasnani
Section 143(3)Section 250Section 37

…of crystallisation of loss of refund, is eligible for claim of allowance in terms of section 37(1) of the Act and this view finds force in the decision of Hon'ble Gujarat High Court in the case of “Saurastra Cement & Chemical Industry Ltd. Vs CIT” reported in 213 ITR 523 whereby their Lordship vide para 16 have held that; "Having considered the materials on record, we do not find any justification for the disallowance of the claim of the assessee on such an abstract proposition. Merely because an expense relates to a transaction of an earlier year it does not become a liability payable in the earlier year unless…

DCIT-Ltu - 2, Mumbai vs. Ambuja Cements Ltd, Mumbai

In the result, the appeal of the revenue is dismissed

ITA 2958/MUM/2019[2010-11]Status: DisposedITAT Mumbai07 Nov 2022AY 2010-11
Section 143(3)Section 14A

…axmann.com 3/217 Taxman 288/355 ITR 14 (Delhi) ITA Nos. 1889 and 1241/Mum/2018, 2384, 2958, 3475 and 3843/Mum/2019 Assessment years: 2010-11, 2011-12 and 2012-13 Page 58 of 99 7. Saurashtra Cement & Chemical Industries Ltd. v. CIT [1979] 2 Taxman 22/[1980] 123 ITR 669 (GUJARAT) 8. Ace Multi Axes System Ltd. v. Dy. CIT [2015] 228 Taxman 98/[2014] 49 taxmann.com 168/367 ITR 266 (Karnataka) 9. ITO v. Smt. Urmila Bhandari [IT Appeal Nos.766, 2593 (Delhi) of 2013, dated 20-10-2014] 10. Dy. CIT v. Selvel Advertising (P.) Ltd. [2015] 58 taxmann.com 196 (Kol.-Trib.) 11. Century Enka Limited v. Dy. CIT [2015] 58 taxman…

DCIT, Circle-3, Jaipur vs. M/S. Joy Syndicate & Enclave Pvt. Ltd., Jaipur

In the result, the appeal filed by the Revenue is allowed for statistical purposes

ITA 102/JPR/2020[2013-14]Status: DisposedITAT Jaipur26 Sept 2022AY 2013-14
For Appellant: Shri Rajeev Sogani ( C.A.)For Respondent: Ms Runi Pal (Addl. CIT)a fu/kZkfjrh dh vksj ls@
Section 14ASection 801Section 80I

…1 (SC) High Court: Case law Sr. No. HC Rajasthan CIT vs Malborough Polychem (P.) Ltd. [2009] 309 1 ITR 43 (Raj) Cit vs Western Outdoor Interactive (P.) Bombay 2 Ltd. [2012] 349 ITR 309 (bom) Saurashtra Cement & Chemical Gujrat Industries Ltd vs CIT [1980] 123 ITR 669 (Guj.) 3. ITAT: Sr. Name of Case LAW No. Bench Delhi Resistoflex Dynamics (P.) Ltd. vs DCIT [2014] 1 159 TTJ 423 Tata Communications Internet Services Ltd. vs Delhi 2. ITO [2010] 4 ITR(T) 249 7. It is submitted that no reassessment proceedings have been initiated for earlier years when the deduction stood allowed in scrutiny assessment. DCIT vs.…

Hitz Fm Radio India Pvt.Ltd., New Delhi vs. ACIT, Circle-11(2), New Delhi

In the result, the appeal by the assessee stands allowed

ITA 9043/DEL/2019[2013-14]Status: DisposedITAT Delhi11 Aug 2022AY 2013-14
For Appellant: Shri Sanjiv Sapra, CAFor Respondent: Md. Gayasuddin Ansari, Sr. DR

…1/2012 on the same basis as interest on OTEF also deserves to be allowed during the year under consideration for which reliance is placed on the following case laws: 8 ITA No.9043/Del./2019  243 ITR 35, CIT vs. Anna Transport Corporation Ltd. (Madras HC)  213 ITR 523, Surashtra Cement and Chemical Industries Ltd. vs. CIT (Gujarat HC)  153 ITD 111, Hindustan Zinc Ltd. vs. Addl CIT (Jaipur Trib) (TM)  ITAT Chandigarh Bench judgment dated 20101/2022 in the case of MIs Kamla Retail Ltd. (Now known as Ethos Limited vs. Addl CIT (ITA No. 1023/Chd/2019) - refer to findings recorded at para 7 of such judgment. 9. C…

Sutlej Textiles and Industries Ltd., Rajasthan vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed and the appeal of the Revenue is dismissed

ITA 3703/DEL/2015[2007-08]Status: DisposedITAT Delhi08 Aug 2022AY 2007-08

Bench: Shri Kul Bharat & Shri Pradip Kumar Kedia

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Anuj Garg, Sr.D.R
Section 115JSection 147

…of escapement of charitable income by such income of earlier year. Secondly, the assessee had adjusted the prior period expense against prior period income in sync with plethora of judicial precedents including Saurashtra Cement & Chemical Industries vs. CIT, 213 ITR 523 (Guj.) wherein it has been clearly held that the assessee is entitled to make such adjustment and offer the net income of the earlier years. Thus, the action of the Assessing Officer in the original assessment cannot be assailed and the allegation of escapement could not have been made in the factual backdrop. The action of Assessing Officer is t…

DCIT, New Delhi vs. M/S Sutlej Textiles and Industries Ltd., Rajasthan

In the result, the appeal of the assessee is allowed and the appeal of the Revenue is dismissed

ITA 3371/DEL/2015[2007-08]Status: DisposedITAT Delhi08 Aug 2022AY 2007-08

Bench: Shri Kul Bharat & Shri Pradip Kumar Kedia

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Anuj Garg, Sr.D.R
Section 115JSection 147

…of escapement of charitable income by such income of earlier year. Secondly, the assessee had adjusted the prior period expense against prior period income in sync with plethora of judicial precedents including Saurashtra Cement & Chemical Industries vs. CIT, 213 ITR 523 (Guj.) wherein it has been clearly held that the assessee is entitled to make such adjustment and offer the net income of the earlier years. Thus, the action of the Assessing Officer in the original assessment cannot be assailed and the allegation of escapement could not have been made in the factual backdrop. The action of Assessing Officer is t…