Saurashtra Cement & Chemical Industries v. CIT

THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1),, VADODARA vs. AMBALAL SARABHI ENTERPRISES LIMITED,, VADODARA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

…T(A) noted that the expenses were allowable under the mercantile system of accounting in the year in which they crystallized, as per the principles laid down in the judgment of the Hon’ble Gujarat High Court in Saurashtra Cement & Chemical Industries vs. CIT (213 ITR 532). The CIT(A) also noted that the Similar disallowances in earlier years had been deleted by appellate authorities or the Tribunal, making the issue covered in favour of the assessee. 38. The AR, during the course of the hearing, before us stated that the issue was already decided in favour of the assessee in its own case by the Co- ordinate Benc…

THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1),, VADODARA vs. AMBALAL SARABHI ENTERPRISES LIMITED,, VADODARA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

…T(A) noted that the expenses were allowable under the mercantile system of accounting in the year in which they crystallized, as per the principles laid down in the judgment of the Hon’ble Gujarat High Court in Saurashtra Cement & Chemical Industries vs. CIT (213 ITR 532). The CIT(A) also noted that the Similar disallowances in earlier years had been deleted by appellate authorities or the Tribunal, making the issue covered in favour of the assessee. 38. The AR, during the course of the hearing, before us stated that the issue was already decided in favour of the assessee in its own case by the Co- ordinate Benc…

AMBALAL SARABHAI ENTERPRISES LTD.,,BARODA vs. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1),, BARODA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

…T(A) noted that the expenses were allowable under the mercantile system of accounting in the year in which they crystallized, as per the principles laid down in the judgment of the Hon’ble Gujarat High Court in Saurashtra Cement & Chemical Industries vs. CIT (213 ITR 532). The CIT(A) also noted that the Similar disallowances in earlier years had been deleted by appellate authorities or the Tribunal, making the issue covered in favour of the assessee. 38. The AR, during the course of the hearing, before us stated that the issue was already decided in favour of the assessee in its own case by the Co- ordinate Benc…

AMBALAL SARABHAI ENTERPRISES LTD.,,BARODA vs. THE DY.COMMISSIONER OF INCOME TAX,CIRCLE-1(1)(1),, BARODA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

…T(A) noted that the expenses were allowable under the mercantile system of accounting in the year in which they crystallized, as per the principles laid down in the judgment of the Hon’ble Gujarat High Court in Saurashtra Cement & Chemical Industries vs. CIT (213 ITR 532). The CIT(A) also noted that the Similar disallowances in earlier years had been deleted by appellate authorities or the Tribunal, making the issue covered in favour of the assessee. 38. The AR, during the course of the hearing, before us stated that the issue was already decided in favour of the assessee in its own case by the Co- ordinate Benc…

THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1),, VADODARA vs. AMBALAL SARABHAI ENTERPRISES LIMITED,, VADODARA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

…T(A) noted that the expenses were allowable under the mercantile system of accounting in the year in which they crystallized, as per the principles laid down in the judgment of the Hon’ble Gujarat High Court in Saurashtra Cement & Chemical Industries vs. CIT (213 ITR 532). The CIT(A) also noted that the Similar disallowances in earlier years had been deleted by appellate authorities or the Tribunal, making the issue covered in favour of the assessee. 38. The AR, during the course of the hearing, before us stated that the issue was already decided in favour of the assessee in its own case by the Co- ordinate Benc…

AMBALAL SARABHAI ENTERPRISES LTD.,,BARODA vs. THE DY. COMMISSIONER OF INCOME TAX-1(1)(1),, BARODA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

…T(A) noted that the expenses were allowable under the mercantile system of accounting in the year in which they crystallized, as per the principles laid down in the judgment of the Hon’ble Gujarat High Court in Saurashtra Cement & Chemical Industries vs. CIT (213 ITR 532). The CIT(A) also noted that the Similar disallowances in earlier years had been deleted by appellate authorities or the Tribunal, making the issue covered in favour of the assessee. 38. The AR, during the course of the hearing, before us stated that the issue was already decided in favour of the assessee in its own case by the Co- ordinate Benc…

AMBALAL SARABHAI ENTERPRISES LTD.,,BARODA vs. THE DY. COMMISSIONER OF INCOME TAX-1(1)(1),, BARODA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

…T(A) noted that the expenses were allowable under the mercantile system of accounting in the year in which they crystallized, as per the principles laid down in the judgment of the Hon’ble Gujarat High Court in Saurashtra Cement & Chemical Industries vs. CIT (213 ITR 532). The CIT(A) also noted that the Similar disallowances in earlier years had been deleted by appellate authorities or the Tribunal, making the issue covered in favour of the assessee. 38. The AR, during the course of the hearing, before us stated that the issue was already decided in favour of the assessee in its own case by the Co- ordinate Benc…

AMBALAL SARABHAI ENTERPRISES LIMITED,,BARODA vs. THE ACIT.,CIRCLE-1(1),, BARODA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

…T(A) noted that the expenses were allowable under the mercantile system of accounting in the year in which they crystallized, as per the principles laid down in the judgment of the Hon’ble Gujarat High Court in Saurashtra Cement & Chemical Industries vs. CIT (213 ITR 532). The CIT(A) also noted that the Similar disallowances in earlier years had been deleted by appellate authorities or the Tribunal, making the issue covered in favour of the assessee. 38. The AR, during the course of the hearing, before us stated that the issue was already decided in favour of the assessee in its own case by the Co- ordinate Benc…

AMBALAL SARABHAI ENTERPRISES LIMITED,,BARODA vs. THE ACIT.,CIRCLE-1(1),, BARODA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

…T(A) noted that the expenses were allowable under the mercantile system of accounting in the year in which they crystallized, as per the principles laid down in the judgment of the Hon’ble Gujarat High Court in Saurashtra Cement & Chemical Industries vs. CIT (213 ITR 532). The CIT(A) also noted that the Similar disallowances in earlier years had been deleted by appellate authorities or the Tribunal, making the issue covered in favour of the assessee. 38. The AR, during the course of the hearing, before us stated that the issue was already decided in favour of the assessee in its own case by the Co- ordinate Benc…

GUJARAT URJA VIKAS NIGAM LTD.,,BARODA vs. THE DY.CIT, CIRCLE-1(1),, BARODA

In the result, appeal I.T

…nt and the AO's observations. The issue of allowability of any Prior Period Expense debited in the Profit & Loss Account is required to be adjudicated as per ratio laid down by the Hon'ble High Court of Gujarat in the case of Saurashtra Cement & Chemicals Ltd 213 ITR 532 (Guj). In this decision the High Court, with regard to allowability of Prior Period Expenses, has observed as under:- I.T.A Nos 3358, 1988, 3359, 3360, 3437, 2014, 3438 & 3439/Ahd/2015 Page No 12 "Having considered the material on record, we do not find any justification for the disallowance of the claim of the assesses on such an abstract prop…

THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1)(1),, VADODARA vs. GUJARAT URJA VIKAS NIGAM LTD.,, BARODA

In the result, appeal I.T

…nt and the AO's observations. The issue of allowability of any Prior Period Expense debited in the Profit & Loss Account is required to be adjudicated as per ratio laid down by the Hon'ble High Court of Gujarat in the case of Saurashtra Cement & Chemicals Ltd 213 ITR 532 (Guj). In this decision the High Court, with regard to allowability of Prior Period Expenses, has observed as under:- I.T.A Nos 3358, 1988, 3359, 3360, 3437, 2014, 3438 & 3439/Ahd/2015 Page No 12 "Having considered the material on record, we do not find any justification for the disallowance of the claim of the assesses on such an abstract prop…

AMBALAL SARABHAI ENTERPRISES LTD.,,BARODA vs. THE DY. COMMISSIONER OF INCOME TAX-1(1)(1),, BARODA

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad)

…is issue at page no. 22, 25 in Para 21 and ld. CIT(A) has discussed this issue at page no. 13 , 14 in Para 4.16. Ld. CIT(A) granted relief to the assessee citing a judgment of Gujarat High Court in the matter of Saurashtra Cement & Chemical Industries vs. CIT 213 ITR 532 with regard to allowability of prior period expenses. 38. Now Revenue is before us. ITA Nos. 933 & 1313/Ahd/2016 13 . A.Y. 1999-2000 39. Ld. A.R. cited a judgment of Hon’ble Gujarat High Court in the Tax Appeal No. 223 of 2007 wherein in similar circumstances, Hon’ble Gujarat High Court dismiss the appeal of the Revenue with following observat…