Sayaji Iron & Engg. Co. v. CIT

253 ITR 749High Court2002#525 most cited

What is Sayaji Iron & Engg. Co. v. CIT authority for?

For a limited company, expenses cannot be disallowed merely on the grounds of presumed personal use of assets by directors or by treating the expenditure as a non-business purpose. Percentage disallowances of expenses in such cases are not sustainable.

181

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2026.

Also referred to as

Sayaji Iron & Engg. Co. v. CIT · 253 ITR 749 · disallowance of expenses · personal use directors · non-business purpose · limited company expenses · business expediency · Section 40A

Sections most often in play

Section 143(3)Section 147Section 148Section 40(a)(ia)Section 119Section 127Section 133ASection 142(2A)
Read the full judgment

Issues it is cited on

section 198section 2(31)business expediencysection 40a(2)(b)material facts necessary for assessmentsection 40a(2)mere change of opinionsection 40ablock of assetsenduring benefitsection 40a(3)section 30

Judgments citing Sayaji Iron & Engg. Co. v. CIT

Ajay Enterprises Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Appeal is dismissed and appeal of the assessee in ITA No

ITA 1704/DEL/2015[2012-13]Status: DisposedITAT Delhi30 Jul 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Dr. B.R.R. Kumar

For Appellant: S/Shri Pradeep Dinodia & R.KFor Respondent: Date of hearing
Section 143(3)Section 41(1)

…on’ble ITAT has upheld the said Order of ld. CIT (A). The 9 ITA. .899, 1348, 1349-D-2013, 5776-D-2014, 2083-D-2015, 1704-D-2015 assessee also referred to and relied upon the judgment of Hon’ble Gujarat High Court in the case of Sayaji Iron & Engineering Ltd. 253 ITR 749 (Gujarat) to claim that there cannot be any personal element in the hands of the corporate entity and disallowance made by the AO was wholly unjustified. Reference was also made to the case of Hon’ble Punjab & Haryana High Court in the case of CIT Patiala vs. Road Master Industries of India (P) Ltd. 2009-TIOL-446- HC-P&H to submit that once an FB…

DCIT, New Delhi vs. M/S. Ajay Enterprises Pvt. Ltd., New Delhi

Appeal is dismissed and appeal of the assessee in ITA No

ITA 5776/DEL/2014[2011-12]Status: DisposedITAT Delhi30 Jul 2021AY 2011-12

Bench: Shri Amit Shukla & Shri Dr. B.R.R. Kumar

For Appellant: S/Shri Pradeep Dinodia & R.KFor Respondent: Date of hearing
Section 143(3)Section 41(1)

…on’ble ITAT has upheld the said Order of ld. CIT (A). The 9 ITA. .899, 1348, 1349-D-2013, 5776-D-2014, 2083-D-2015, 1704-D-2015 assessee also referred to and relied upon the judgment of Hon’ble Gujarat High Court in the case of Sayaji Iron & Engineering Ltd. 253 ITR 749 (Gujarat) to claim that there cannot be any personal element in the hands of the corporate entity and disallowance made by the AO was wholly unjustified. Reference was also made to the case of Hon’ble Punjab & Haryana High Court in the case of CIT Patiala vs. Road Master Industries of India (P) Ltd. 2009-TIOL-446- HC-P&H to submit that once an FB…

DCIT, New Delhi vs. M/S Ajay Enterprises Pvt. Ltd., New Delhi

Appeal is dismissed and appeal of the assessee in ITA No

ITA 1349/DEL/2013[2009-10]Status: DisposedITAT Delhi30 Jul 2021AY 2009-10

Bench: Shri Amit Shukla & Shri Dr. B.R.R. Kumar

For Appellant: S/Shri Pradeep Dinodia & R.KFor Respondent: Date of hearing
Section 143(3)Section 41(1)

…on’ble ITAT has upheld the said Order of ld. CIT (A). The 9 ITA. .899, 1348, 1349-D-2013, 5776-D-2014, 2083-D-2015, 1704-D-2015 assessee also referred to and relied upon the judgment of Hon’ble Gujarat High Court in the case of Sayaji Iron & Engineering Ltd. 253 ITR 749 (Gujarat) to claim that there cannot be any personal element in the hands of the corporate entity and disallowance made by the AO was wholly unjustified. Reference was also made to the case of Hon’ble Punjab & Haryana High Court in the case of CIT Patiala vs. Road Master Industries of India (P) Ltd. 2009-TIOL-446- HC-P&H to submit that once an FB…

ACIT Circle 20(3), Mumbai vs. M/S Real Gold Developers LLP, Mumbai

In the result, both the appeals of the Revenue are dismissed

ITA 2733/MUM/2019[2013-14]Status: DisposedITAT Mumbai09 Jul 2021AY 2013-14

Bench: Shri Rajesh Kumar & Shri Amarjit Singhassessment Year: 2013-14

For Appellant: Shri Vijay Mehta, A.RFor Respondent: Shri Sushil Kumar Mishra, D.R
Section 143(1)Section 143(3)

…ed for non business purpose more so when genuineness of the business expenditure and facts contained in the log book were accepted. The Ld. A.R. relied on the decision of Hon’ble Gujarat High Court in the case of Sayaji Iron and Engineering Co. vs. CIT (2002) 253 ITR 749 and submitted that the disallowance as sustained by Ld. CIT(A) may kindly be deleted. 7. The Ld. D.R., on the other hand, relied heavily on the order of AO and submitted that even Ld. CIT(A) has wrongly allowed the partial relief to the assessee and prayed that the relief allowed by Ld. CIT(A) may kindly be reversed and order of AO may be kindly…

M/S Real Gold Developers LLP, Mumbai vs. ACIT Range 20(3), Mumbai

In the result, both the appeals of the Revenue are dismissed

ITA 1940/MUM/2019[2013-14]Status: DisposedITAT Mumbai09 Jul 2021AY 2013-14

Bench: Shri Rajesh Kumar & Shri Amarjit Singhassessment Year: 2013-14

For Appellant: Shri Vijay Mehta, A.RFor Respondent: Shri Sushil Kumar Mishra, D.R
Section 143(1)Section 143(3)

…ed for non business purpose more so when genuineness of the business expenditure and facts contained in the log book were accepted. The Ld. A.R. relied on the decision of Hon’ble Gujarat High Court in the case of Sayaji Iron and Engineering Co. vs. CIT (2002) 253 ITR 749 and submitted that the disallowance as sustained by Ld. CIT(A) may kindly be deleted. 7. The Ld. D.R., on the other hand, relied heavily on the order of AO and submitted that even Ld. CIT(A) has wrongly allowed the partial relief to the assessee and prayed that the relief allowed by Ld. CIT(A) may kindly be reversed and order of AO may be kindly…

Pragati Glass Pvt. Ltd., Bharuch vs. Assistant Commissioner of Income Tax, Circle-1, Bharuch

In the result, ground No. 4 is allowed

ITA 504/SRT/2018[2013-14]Status: DisposedITAT Surat02 Jul 2021AY 2013-14

Bench: Shri Pawan Singh () & Dr. Arjun Lal Saini () Assessment Year: 2013-14 Pragati Glass Private Limited, Asst. Commissioner Of Income Tax, Kharach, Kosamba (R.S), District Vs. Cir. 1, Bharuch-394120 Station Road, Bharuch-392001. Pan No. Aabcp 7377 H Appellant Respondent

For Appellant: Mr. Surandra Modiani, ARFor Respondent: Ms. Anupama Singla, Sr. DR
Section 115JSection 143(3)Section 14ASection 36(1)(va)

…verified before making ad-hoc disallowance. The ITA No. 504/SRT/2018 10 Ld. AR prayed for relating the entire disallowances to support its contention. The Ld. AR relied upon the decision of Hon'ble Gujarat High Court in Sayaji Iron & Engg. Co. v. CIT (2002) 253 ITR 749 (Guj). 15. On the other hand, the Ld. DR for the Revenue supported the order of Ld. CIT(A). The Ld. DR submits that the Ld. CIT(A). was very reasonable in restricting the disallowance of expenses @ 10%. 16. We have considered the rival submission of both the parties and have gone through the orders of authorities below. We find that during the as…

Ugc Buildwell Pvt. Ltd., New Delhi vs. ACIT, New Delhi

The appeals of the assessee are allowed

ITA 2155/DEL/2015[2005-06]Status: DisposedITAT Delhi12 Mar 2021AY 2005-06

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble(Through Video Conferencing)

Section 132Section 143(1)Section 153ASection 40A(3)

…1 ITA Nos. 1351 & 2155/Del/2015 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘A’ NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) I.T.A. No.2155/Del/2015 (A.Y 2005-06) USG Buildwell Pvt. Ltd. Vs Additional Commissioner M-11, Middle Circle, Connaught of Income-tax Circus, New Delhi Central Circle-32, AAACU4507B New Delhi (APPELLANT) (RESPONDENT) I.T.A. No.1351/Del/2015 (A.Y 2006-07) USG Buildwell Pvt. Ltd. Vs Deputy Commissioner of M-11, Middle Circle, Connaught Income-tax Circus, New Delhi Central Circle-32, AAACU4507B N…

Usg Buildwell Pvt Ltd, New Delhi vs. Deputy Commissioner of Income-Tax, New Delhi

The appeals of the assessee are allowed

ITA 1351/DEL/2015[2006-07]Status: DisposedITAT Delhi12 Mar 2021AY 2006-07

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble(Through Video Conferencing)

Section 132Section 143(1)Section 153ASection 40A(3)

…1 ITA Nos. 1351 & 2155/Del/2015 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘A’ NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) I.T.A. No.2155/Del/2015 (A.Y 2005-06) USG Buildwell Pvt. Ltd. Vs Additional Commissioner M-11, Middle Circle, Connaught of Income-tax Circus, New Delhi Central Circle-32, AAACU4507B New Delhi (APPELLANT) (RESPONDENT) I.T.A. No.1351/Del/2015 (A.Y 2006-07) USG Buildwell Pvt. Ltd. Vs Deputy Commissioner of M-11, Middle Circle, Connaught Income-tax Circus, New Delhi Central Circle-32, AAACU4507B N…

DCIT, New Delhi vs. M/S. Dlf Ltd., New Delhi

In the result ITA number 4794/del/2015 filed by the learned assessing officer for assessment year 2011 – 12 is dismissed

ITA 4794/DEL/2015[2011-12]Status: DisposedITAT Delhi29 Sept 2020AY 2011-12

Bench: Sh. Prashant Maharishi & Sh. K. N. Chary(Through Video Conferencing) Dlf Limited Addl. Cit Dlf Centre, (9Th Floor) Vs Range-10 Sansad Marg, 404, C. R. Building New Delhi-110001 New Delhi Pan No.Aaacd3494N (Appellant) (Respondent) Addl. Cit Dlf Limited Dlf Centre, (9Th Floor) Range-10 Vs 404, C. R. Building Sansad Marg, New Delhi New Delhi-110001 Pan No.Aaacd3494N (Appellant) (Respondent)

Section 14ASection 80I

…aragraph number 24 wherein we have held that the company cannot have any personal expenditure as it is a distinct assessable entity is per definition of person u/s 2 (31) of the act. Such is also the mandate of the decision of Honourable Gujarat High Court in 253 ITR 749. The learned CIT – A has also followed the same. In view of this we do not find any infirmity in the order of the learned CIT – A in deleting the disallowance is of expenses of ₹ 23,440,014. Accordingly ground number 16 of the appeal is dismissed. 15. Ground number 19 of the appeal is with respect to the addition on account of carbon credits amou…

Dlf Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result ITA number 4794/del/2015 filed by the learned assessing officer for assessment year 2011 – 12 is dismissed

ITA 4159/DEL/2015[2011-12]Status: DisposedITAT Delhi29 Sept 2020AY 2011-12

Bench: Sh. Prashant Maharishi & Sh. K. N. Chary(Through Video Conferencing) Dlf Limited Addl. Cit Dlf Centre, (9Th Floor) Vs Range-10 Sansad Marg, 404, C. R. Building New Delhi-110001 New Delhi Pan No.Aaacd3494N (Appellant) (Respondent) Addl. Cit Dlf Limited Dlf Centre, (9Th Floor) Range-10 Vs 404, C. R. Building Sansad Marg, New Delhi New Delhi-110001 Pan No.Aaacd3494N (Appellant) (Respondent)

Section 14ASection 80I

…aragraph number 24 wherein we have held that the company cannot have any personal expenditure as it is a distinct assessable entity is per definition of person u/s 2 (31) of the act. Such is also the mandate of the decision of Honourable Gujarat High Court in 253 ITR 749. The learned CIT – A has also followed the same. In view of this we do not find any infirmity in the order of the learned CIT – A in deleting the disallowance is of expenses of ₹ 23,440,014. Accordingly ground number 16 of the appeal is dismissed. 15. Ground number 19 of the appeal is with respect to the addition on account of carbon credits amou…

Hindumal Balmukund Investment Co.Pvt.Ltd., Pune vs. Deputy Commissioner of Income Tax, Pune

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

ITA 570/PUN/2017[2013-14]Status: DisposedITAT Pune14 Sept 2020AY 2013-14

Bench: Shri P.M. Jagtap & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita No.570/Pun/2017 िनधा"रण वष" / Assessment Year : 2013-14 Hindumal Balmukund Investment Co. Pvt. Ltd., 2Nd Floor, Lohia Jain House, Bhandarkar Road, Shivajinagar, Pune-411045. .......अपीलाथ" / Appellant Pan : Aaach4226Q बनाम / V/S. Dcit, Circle-11, ……""यथ" / Respondent Pune. Assessee By : Shri Vardhaman Jain Revenue By : Shri S. P. Walimbe सुनवाई क" तारीख / Date Of Hearing : 11.09.2020 घोषणा क" तारीख / Date Of Pronouncement : 14.09.2020 आदेश / Order Per P.M. Jagtap, Vp : This Appeal Is Preferred By The Assessee Against The Order Of Ld. Cit(A)-1, Pune Dated 16.01.2017 On The Following Grounds As Originally Raised :- “1. The Learned Cit(A) Erred In Law & On Facts In Confirming The Disallowance Of Rs.6,13,115, Being Depreciation On Car. 2. The Learned Cit(A) Further Erred In Law & On Facts In Confirming The Disallowance Of The Claim Of Rs.1,88,07,686 U/S 80Ia(4) Of The I T Act, 1961.” 2. At The Time Of Hearing Before Us, Ld. Representatives Of Both The Sides Have Agreed That The Issue Involved In Ground No.1 Of This Appeal Relating To The Disallowance Made By The Assessing Officer & Confirmed By The Ld. Cit(A) Out Of The Depreciation On Car For Personal Use Of Directors Is Squarely Covered In Favour Of The Assessee By The Decision Of This Tribunal Rendered In Assessee’S Own Case For The Immediately Preceding Assessment Year I.E. A.Y. 2012-13 Vide

For Appellant: Shri Vardhaman JainFor Respondent: Shri S. P. Walimbe
Section 38(2)Section 80HSection 80ISection 80J

…There is no dearth of judicial precedents holding that there cannot be any disallowance of expenses in the hands of company on account of personal use even by its Directors. The Hon’ble Gujarat High Court in Sayaji Iron and Engineering Company vs. CIT (2002) 253 ITR 749 (Guj) has held that there cannot be any disallowance of personal expenses for cars on account of personal use by the director. It has been further held that no disallowance can be made even by treating such expenditure as not having been incurred for the business purpose. Similar view has been taken by the Delhi Bench of the Tribunal in several c…

M/S. Delhi Surgical & Dressing Pvt. Ltd., Delhi vs. DCIT, New Delhi

In the result, ITA No.5058/Del/2016 is allowed and ITA No

ITA 5059/DEL/2016[2013-14]Status: DisposedITAT Delhi27 Aug 2020AY 2013-14

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Jagdish Singh, Sr. DR
Section 147Section 271Section 271(1)(c)Section 274Section 50C

…director of the company by giving him the best medical treatment who, in turn, is responsible for the huge growth in the sales of the assessee company. Referring to the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Sayaji Iron & Steel Co., 253 ITR 749, he submitted that there cannot be any personal expenditure in the case of a company as the company is an inanimate person. He accordingly submitted that the order of the CIT(A) disallowing the expenditure should be set aside and the disallowance made by the AO should be deleted. 19. The ld. DR, on the other hand, heavily relied on the order of t…

The Asstt. Commissioner of Income Tax, Vapi Circle, Vapi vs. M/S. Mitsu Limited, Daman

In the result, the appeal of the Revenue is dismissed

ITA 3510/AHD/2016[2000-01]Status: DisposedITAT Surat04 May 2020AY 2000-01

Bench: Shri Sandip Gosain & Shri O. P. Meenav. ""यथ"/Respondent आ.अ.सं././././I "नधा"र अपीलाथ" Appellant S .T.A No. ण N वष"/A Y: 1 1671/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2006 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 2 1371/Ah 2002- Assistant V. M/S. Mitsu Limited, D/2006 03 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q Co.No.1 2002- M/S. Mitsu Limited, V. Assistant 3 84/Ahd/ 03 304/2, Iind Phase, Commissioner Of 2006 Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 4 1672/Ah 2003- M/S. Mitsu Limited, V. Assistant D/2006 04 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 5 1764/Ah 2003- Assistant V. M/S. Mitsu Limited, D/2006 04 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q 6 1000/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2016 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 7 3510/Ah 2000- Assistant V. M/S. Mitsu Limited, D/2016 01 Commissioner Of Page 2 Of 83 Mitsu Ltd. V. Acit- Vapi/I.T.A. No.1671-1371,Co-184,1672-1764,1614 &1000/Ahd/2006/A.Y.02-03,03-04,06-07.02-03 Income Tax-Vapi 304/2, Iind Phase, Circle, Vapi Gidc, Vapi 396195 Pan: Aaccm 2764 Q

Section 143

…eign travel undertaken by directors for business purpose and there no justification for disallowing 50% on pure estimate. The Ld. AR for the assessee also relied the decision of Hon’ble Gujarat High Court in case of Sayaji Iron & Engineering Co. v. CIT [2002] 253 ITR 749 [2002] 121 Taxman 43 (Guj). In view of these facts and circumstances, the ld. CIT (A) observed that the AO has not brought on record any material/ evidence that 1/5th expenditure was not incurred for business purpose. The AO has not analyzed each and every visit and particular trip of director that he has over stayed. Therefore, considering afore…

M/S. Mitsu Private Limited, Vapi vs. The ACIT, Vapi Circle, Vapi

In the result, the appeal of the Revenue is dismissed

ITA 1000/AHD/2016[2002-03]Status: DisposedITAT Surat04 May 2020AY 2002-03

Bench: Shri Sandip Gosain & Shri O. P. Meenav. ""यथ"/Respondent आ.अ.सं././././I "नधा"र अपीलाथ" Appellant S .T.A No. ण N वष"/A Y: 1 1671/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2006 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 2 1371/Ah 2002- Assistant V. M/S. Mitsu Limited, D/2006 03 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q Co.No.1 2002- M/S. Mitsu Limited, V. Assistant 3 84/Ahd/ 03 304/2, Iind Phase, Commissioner Of 2006 Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 4 1672/Ah 2003- M/S. Mitsu Limited, V. Assistant D/2006 04 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 5 1764/Ah 2003- Assistant V. M/S. Mitsu Limited, D/2006 04 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q 6 1000/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2016 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 7 3510/Ah 2000- Assistant V. M/S. Mitsu Limited, D/2016 01 Commissioner Of Page 2 Of 83 Mitsu Ltd. V. Acit- Vapi/I.T.A. No.1671-1371,Co-184,1672-1764,1614 &1000/Ahd/2006/A.Y.02-03,03-04,06-07.02-03 Income Tax-Vapi 304/2, Iind Phase, Circle, Vapi Gidc, Vapi 396195 Pan: Aaccm 2764 Q

Section 143

…eign travel undertaken by directors for business purpose and there no justification for disallowing 50% on pure estimate. The Ld. AR for the assessee also relied the decision of Hon’ble Gujarat High Court in case of Sayaji Iron & Engineering Co. v. CIT [2002] 253 ITR 749 [2002] 121 Taxman 43 (Guj). In view of these facts and circumstances, the ld. CIT (A) observed that the AO has not brought on record any material/ evidence that 1/5th expenditure was not incurred for business purpose. The AO has not analyzed each and every visit and particular trip of director that he has over stayed. Therefore, considering afore…

DCIT Central Circle-6(2), Mumbai vs. Indiawin Sports Pvt. Ltd., Mumbai

Appeal is Allowed

ITA 59/MUM/2019[2013-14]Status: DisposedITAT Mumbai06 Mar 2020AY 2013-14

Bench: Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm

For Appellant: Shri Nimesh Vora (AR)For Respondent: Shri V. Sreekar (DR)
Section 143(1)Section 143(2)

…be made u1s.37 of the Act. The addition, if any, can be ITA. Nos. 59 & 60/M/2019 230 & 231/M/2019 A.Y.2013-14 & 2014-15 made in the hands of a person (e.g. employee, directors etc.) receiving such benefits. 1 Sayaji Iron & Engg. Co. (A leading judgment IT ha 253 ITR 749 Gujarat HC subsequently been followed by the Mumbai tribunal in various cases as under) 2 Rainkish Textiles (P)Ltd. Vs. ITO (para 8) 16 taxmann.cam 57 ITAT Mumbai 3 Johnson & Johnson Ltd. Vs ACIT (Para 35) 43 taxmann.com ITAT Mumbai 255 4 KSS Ltd. (2016) vs DOT (para 6.2) 66 taxmann.com 97 ITAT Mumbai 5 Fairfield Atlas Ltd. Vs. ACIT (para 9) 3 ta…

Priya Blue Industries Pvt. Ltd., Bhavnagar vs. The Asstt. Commissioner of Income Tax, Circle-1, Bhavnagar

ITA 1/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad21 Feb 2020AY 2013-14

Bench: Shri Rajpal Yadav & Shri T. S. Kapoorआयकर अपील सं./I.T.A. Nos. 1 & 2/Ahd/2018 ("नधा"रण वष" / Assessment Years : 2013-14 & 2014-15)

For Appellant: Shri T. P. Hemani, Sr. Advocate

…enses incurred by assessee may involve an element of personal nature. Before learned CIT(A), it was contended that similar disallowance was made in earlier year and learned CIT(A) had deleted the same relying on the judgment of Sayaji Iron & Engg. Co. vs. CIT 253 ITR 749 (Guj.). However, the learned CIT(A) did not accept the contention of the assessee by holding that rule of res judicata do not apply to Income Tax proceedings. We find that assessee is engaged in similar kind of activities as in the earlier year and similar issue arose in AY 2012-13 and wherein the learned CIT(A) had deleted the similar disallowan…

DCIT CC 6(2), Mumbai vs. Indiawin Sports P. Ltd, Mumbai

In the result, both appeal of the assessee as well as the revenue are dismissed

ITA 4678/MUM/2018[2015-16]Status: DisposedITAT Mumbai19 Feb 2020AY 2015-16

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Blem/S. Indiawin Sports Private Limited V. Dy. Commissioner Of Income-Tax Court House, 3Rd Floor Central Circle – 6(2) Lokmanya Tilak Marg, Dhobi Talao Room No. 1903, Air India Building Mumbai – 400 002 Nariman Point, Mumbai – 400 021 Pan: Aadcr8195F (Appellant) (Respondent) Dy. Commissioner Of Income-Tax V. M/S. Indiawin Sports Private Limited Court House, 3Rd Floor Central Circle – 6(2) Lokmanya Tilak Marg, Dhobi Talao Room No. 1903, Air India Building Mumbai – 400 002 Nariman Point, Mumbai – 400 021 Pan: Aadcr8195F (Appellant) (Respondent)

For Appellant: Shri Rajesh LakharaFor Respondent: Shri Awungshi Gimson

…company and subsequently, no disallowance in the hands of a company can be made u/s 37 of the Act. The addition, if any, can be made in the hands of a person (e.g. employee, directors etc.) receiving such benefits. Sayaji Iron & Engg. Co (A leading judgement- 253 ITR 749 Gujarat HC It has subsequently been followed by the Mumbai tribunal in various cases as under) Ramkishin Textiles (P.) Ltd vs ITO (Para-8) 16 taxmann.com 57 ITAT-Mumbai Johnson & Johnson Ltd vs ACIT (Para-35) 43 taxmann .com 255 TAT-Mumbai KSS Ltd-92016) vs DOT (Para-6.2) 66 taxmann. com 97 ITAT-Mumbai Fairfield Atlas Ltd. Vs ACIT (Para-9) 3 taxm…

Indiawin Sports P. Ltd, Mumbai vs. DCIT CC 6(2), Mumbai

In the result, both appeal of the assessee as well as the revenue are dismissed

ITA 4614/MUM/2018[2015-16]Status: DisposedITAT Mumbai19 Feb 2020AY 2015-16

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Blem/S. Indiawin Sports Private Limited V. Dy. Commissioner Of Income-Tax Court House, 3Rd Floor Central Circle – 6(2) Lokmanya Tilak Marg, Dhobi Talao Room No. 1903, Air India Building Mumbai – 400 002 Nariman Point, Mumbai – 400 021 Pan: Aadcr8195F (Appellant) (Respondent) Dy. Commissioner Of Income-Tax V. M/S. Indiawin Sports Private Limited Court House, 3Rd Floor Central Circle – 6(2) Lokmanya Tilak Marg, Dhobi Talao Room No. 1903, Air India Building Mumbai – 400 002 Nariman Point, Mumbai – 400 021 Pan: Aadcr8195F (Appellant) (Respondent)

For Appellant: Shri Rajesh LakharaFor Respondent: Shri Awungshi Gimson

…company and subsequently, no disallowance in the hands of a company can be made u/s 37 of the Act. The addition, if any, can be made in the hands of a person (e.g. employee, directors etc.) receiving such benefits. Sayaji Iron & Engg. Co (A leading judgement- 253 ITR 749 Gujarat HC It has subsequently been followed by the Mumbai tribunal in various cases as under) Ramkishin Textiles (P.) Ltd vs ITO (Para-8) 16 taxmann.com 57 ITAT-Mumbai Johnson & Johnson Ltd vs ACIT (Para-35) 43 taxmann .com 255 TAT-Mumbai KSS Ltd-92016) vs DOT (Para-6.2) 66 taxmann. com 97 ITAT-Mumbai Fairfield Atlas Ltd. Vs ACIT (Para-9) 3 taxm…

DCIT Cir 6(3)(1), Mumbai vs. Idbi Federal Life Insurance Co. Ltd, Mumbai

Accordingly, the same is dismissed

ITA 6971/MUM/2017[2011-12]Status: DisposedITAT Mumbai07 Feb 2020AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Bledy. Commissioner Of Income- Tax V. M/S. Idbi Federal Life Insurance Circle – 6(3)(1) Company Pvt. Ltd., 22Nd Floor, A Wing, Marathon Futurex Room No. 506, 5Th Floor N.M. Joshi Marg, Lower Parel (E) Aayakar Bhavan, M.K. Road Mumbai – 400 013 Mumbai – 400 020 Pan: Aabci6227M (Appellant) (Respondent)

For Appellant: Ms. Arati VissanjiFor Respondent: Shri Awangshi Gimson
Section 10(34)Section 14ASection 44

…be undue harassment to assessee and chaos in administration of tax laws”. 6 CO. NO. 10/MUM/2019 M/s. IDBI Federal Life Insurance Company Pvt. Ltd., 8. Carrying this principle further, the Hon’ble Gujarat High Court in Sayaji Iron and Engineering Co. v. CIT [253 ITR 749] reiterated that no Tribunal of fact has any right or jurisdiction to come to a conclusion entirely contrary to the one reached by another bench of the same Tribunal on the same facts, and if a bench of a Tribunal on identical facts is allowed to come to a conclusion directly opposed to the conclusion reached by another bench of the Tribunal on a…

Corel Traders Private Limited, Mumbai vs. Income Tax Officer-1(1)(2), Mumbai

In the result, the appeal filed by the assessee is hereby ordered to be allowed

ITA 6086/MUM/2018[2014-15]Status: DisposedITAT Mumbai15 Jan 2020AY 2014-15

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.6086/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2014-15) Corel Traders Pvt. Ltd. बिधम/ Ito 1(1)(2) 37, Prabhat Building, 6Th Room No.529, 5Th Floor, Vs. Floor, 28-B, Churchgate, Aayakar Bhavan, Mumbai- Mumbai-400020. 400020. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. :Aadcr4263J (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Dhirendra M. Shah (Ar) Revenue By: Shri Somnath Wajale सुनवाई की तारीख / Date Of Hearing: 06/01/2020 घोषणा की तारीख /Date Of Pronouncement: 15/01/2020 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 15.05.2018 Passed By The Commissioner Of Income Tax (Appeals) -2, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2014- 15. 2. The Assessee Has Raised The Following Grounds: -

For Appellant: Shri Dhirendra M. Shah (AR)For Respondent: Shri Somnath Wajale
Section 143(1)Section 143(2)

…the facts of the case relied by the Ld. Representative of the assessee, therefore, taking into account all the facts and circumstances of the case and also relying upon the case Hon’ble Gujarat High Court in the case of Sayaji Iron & Engg. Co. 4 A.Y.2014-15 253 ITR 749 (Guj). The claim of the expenses is hereby allowed. Accordingly, all the issues are decided in favour of the assessee against the revenue. 5. In the result, the appeal filed by the assessee is hereby ordered to be allowed. Order pronounced in the open court on 15/01/2020 /- (AMARJIT SINGH) (SHAMIM YAHYA) लेखध सदस्य / ACCOUNTANT MEMBER न्यधनिक…