SC in CIT v. Delhi Safe Deposits Co. Ltd.

133 ITR 756Supreme Court of India1982#2613 most cited

What is SC in CIT v. Delhi Safe Deposits Co. Ltd. authority for?

Expenditure is laid out wholly and exclusively for the purposes of trade or business when it is incurred by the assessee as incidental to their trade, for the purpose of keeping the trade going and making it pay, and not in any other capacity than as a trader.

44

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2025.

Also referred to as

CIT v. Delhi Safe Deposits Co. Ltd. · 133 ITR 756 · Section 37(1) · business expenditure · wholly and exclusively · incidental to trade · keeping trade going · allowed expenses · deductibility of expenses · foreign travel expenditure

Sections most often in play

Section 10AA Section 195 Section 234B Section 234C Section 271(1)(c)Section 37(1)Section 80IA(8)Section 90

Issues it is cited on

section 24(1)section 80ia(8)section 9(1)(vii)(b)section 195(2)fees for included services trade creditors section 90(2)percentage completion method business connection commercial expediency section 9(1)(vii)section 10aa

Judgments citing SC in CIT v. Delhi Safe Deposits Co. Ltd.

DCIT, C-1, (E), Chandigarh vs. M/S Manav Mangal Society, Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 30/CHANDI/2020[2016-17]Status: DisposedITAT Chandigarh27 May 2021AY 2016-17

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM आयकर अपील सं./ ITA Nos. 02 & 03/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 M/s Manav Mangal Society, Dy. Commissioner of Income Tax, बनाम Sector-21-C, Circle-1, (Exemptions), Chandigarh. Chandigarh. "थायी लेखा सं./PAN NO: AAAAM0564C अपीलाथ"/Appellant ""यथ"/Respondent आयकर अपील सं./ ITA Nos. 136 & 137/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 D…

M/S Manav Mangal Society, Chandigarh vs. DCIT, C-1, (E), Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 3/CHANDI/2020[2011-12]Status: DisposedITAT Chandigarh27 May 2021AY 2011-12

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM आयकर अपील सं./ ITA Nos. 02 & 03/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 M/s Manav Mangal Society, Dy. Commissioner of Income Tax, बनाम Sector-21-C, Circle-1, (Exemptions), Chandigarh. Chandigarh. "थायी लेखा सं./PAN NO: AAAAM0564C अपीलाथ"/Appellant ""यथ"/Respondent आयकर अपील सं./ ITA Nos. 136 & 137/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 D…

DCIT, C-1, (E), Chandigarh vs. M/S Manav Mangal Society, Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 29/CHANDI/2020[2015-16]Status: DisposedITAT Chandigarh27 May 2021AY 2015-16

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM आयकर अपील सं./ ITA Nos. 02 & 03/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 M/s Manav Mangal Society, Dy. Commissioner of Income Tax, बनाम Sector-21-C, Circle-1, (Exemptions), Chandigarh. Chandigarh. "थायी लेखा सं./PAN NO: AAAAM0564C अपीलाथ"/Appellant ""यथ"/Respondent आयकर अपील सं./ ITA Nos. 136 & 137/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 D…

DCIT, C-1, (E), Chandigarh vs. M/S Manav Mangal Society, Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 28/CHANDI/2020[2014-15]Status: DisposedITAT Chandigarh27 May 2021AY 2014-15

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM आयकर अपील सं./ ITA Nos. 02 & 03/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 M/s Manav Mangal Society, Dy. Commissioner of Income Tax, बनाम Sector-21-C, Circle-1, (Exemptions), Chandigarh. Chandigarh. "थायी लेखा सं./PAN NO: AAAAM0564C अपीलाथ"/Appellant ""यथ"/Respondent आयकर अपील सं./ ITA Nos. 136 & 137/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 D…

DCIT, Circle-1(Exemption), Chandigarh vs. M/S Manav Mangal School( Manav Mangal Society), Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 27/CHANDI/2020[2013-14]Status: DisposedITAT Chandigarh27 May 2021AY 2013-14

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM आयकर अपील सं./ ITA Nos. 02 & 03/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 M/s Manav Mangal Society, Dy. Commissioner of Income Tax, बनाम Sector-21-C, Circle-1, (Exemptions), Chandigarh. Chandigarh. "थायी लेखा सं./PAN NO: AAAAM0564C अपीलाथ"/Appellant ""यथ"/Respondent आयकर अपील सं./ ITA Nos. 136 & 137/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 D…

M/S Manav Mangal Society, Chandigarh vs. DCIT, C-1, (E), Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 2/CHANDI/2020[2010-11]Status: DisposedITAT Chandigarh27 May 2021AY 2010-11

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM आयकर अपील सं./ ITA Nos. 02 & 03/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 M/s Manav Mangal Society, Dy. Commissioner of Income Tax, बनाम Sector-21-C, Circle-1, (Exemptions), Chandigarh. Chandigarh. "थायी लेखा सं./PAN NO: AAAAM0564C अपीलाथ"/Appellant ""यथ"/Respondent आयकर अपील सं./ ITA Nos. 136 & 137/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 D…

DCIT, C-1, (E), Chandigarh vs. M/S Manav Mangal Society, Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 137/CHANDI/2020[2011-12]Status: DisposedITAT Chandigarh27 May 2021AY 2011-12

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM आयकर अपील सं./ ITA Nos. 02 & 03/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 M/s Manav Mangal Society, Dy. Commissioner of Income Tax, बनाम Sector-21-C, Circle-1, (Exemptions), Chandigarh. Chandigarh. "थायी लेखा सं./PAN NO: AAAAM0564C अपीलाथ"/Appellant ""यथ"/Respondent आयकर अपील सं./ ITA Nos. 136 & 137/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 D…

DCIT, C-1, (E), Chandigarh vs. M/S Manav Mangal Society, Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 136/CHANDI/2020[2010-11]Status: DisposedITAT Chandigarh27 May 2021AY 2010-11

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM आयकर अपील सं./ ITA Nos. 02 & 03/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 M/s Manav Mangal Society, Dy. Commissioner of Income Tax, बनाम Sector-21-C, Circle-1, (Exemptions), Chandigarh. Chandigarh. "थायी लेखा सं./PAN NO: AAAAM0564C अपीलाथ"/Appellant ""यथ"/Respondent आयकर अपील सं./ ITA Nos. 136 & 137/Chd/2020 "नधा"रण वष" / Assessment Years : 2010-11 & 2011-12 D…

M/S Karnataka State Co-Operative Apex Bank Ltd vs. Deputy Commissioner of Income Tax

In the result, the impugned order dated

ITA/275/2015HC Karnataka01 Mar 2021

Bench: ALOK ARADHE,ASHOK S.KINAGI

Section 143(1)Section 143(3)Section 260Section 260ASection 27

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF MARCH 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE ASHOK S. KINAGI I.T.A. NO.275 OF 2015 BETWEEN: M/S. KARNATAKA STATE CO-OPERATIVE APEX BANK LTD., REP. BY ITS SECRETARY SRI C.N. DEVARAJ 'UTHUNGA', NO.1, PAMPA MAHAKAVI ROAD CHAMARAJAPET, BANGALORE-560018. ... APPELLANT (BY SRI. A. SHANKAR, SR. COUNSEL FOR SRI. M. LAVA, ADV.,) AND: DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3(1), UNITY BUILDINGS ANNEXE 4TH FLOOR, MISSION ROAD BANGALORE-560027. ... RESPONDENT (BY SRI. K.V. ARAVIND, ADV.,)…

M/S. Safina Hotels Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 6(1)(1), Bangalore

In the result, the appeal of the assessee is allowed

ITA 2512/BANG/2019[2016-17]Status: DisposedITAT Bangalore09 Nov 2020AY 2016-17

Bench: Shri N.V. Vasudevan & Shri Chandra Poojarim/S. Safina Hotels Pvt. Ltd., 84/85, Safina Plaza, Infantry Road, Bangalore-560 001 ….Appellant Pan Aaccs 5146G Vs. Dy. Commissioner Of Income Tax, Circle 6(1)(1), Bangalore. ……Respondent. Assessee By: Shri Tata Krishna, Advocate. Revenue By: Shri Kannan Narayanan, Jcit(D.R)

For Appellant: Shri Tata Krishna, AdvocateFor Respondent: Shri Kannan Narayanan, JCIT(D.R)

Section 143(2)Section 143(3)Section 32Section 37

…granted the maintenance expenditure of Car, it is not proper to disallow the depreciation on the same Car. He relied on the following judgements : 14 i) CIT Vs. Malayalam Plantations Ltd. (1964) 53 ITR 140 (SC) ii) CIT Vs. Delhi Safe Deposit Co. Ltd. (1982) 133 ITR 756 (SC) iii) CIT Vs. Lawrence D’Souza (2011) 203 Taxman 200 (Kar) iv) Hirsh Bracelet India (P) Ltd. Vs. ACIT (2019) 178 ITD 601 (Bang – Trib) v) Sai Fragrance & Flavours (P) Ltd. Vs. ACIT (2018) 169 ITD 235 (Mum-Trib). 5.1 Further it was submitted that even the assessee has discontinued hotel business it is necessary to use the Car by the Director o…

Shri Sucha Singh Rai, Raipur (Cg) vs. The Assistant Commissioner of Income Tax, Raipur (Cg)

In the result, appeal of the assessee is allowed

ITA 239/BIL/2016[2012-13]Status: DisposedITAT Raipur27 Jun 2019AY 2012-13

Bench: Shri Partha Sarathi Chaudhury & Dr. Mitha Lal Meenaआयकर अपीऱ सं. / Ita No. 239/Rpr/2016 नििाारण वषा / Assessment Year : 2012-13

For Appellant: Shri Praveen Jain, CAFor Respondent: Shri A.K. Laskar, JCIT

…This view has been upheld by the Hon'ble Apex Court in the case of Commissioner of Income Tax Vs. Chandulal Keshavlal & Co. reported as 38 ITR 601 (SC). 10. Further, we find in the case of Commissioner Of Income Tax Vs Delhi Safe Deposit Co. Ltd reported in 133 ITR 756 (SC), it has been opined by the Hon'ble Apex Court that considering as to what would be the true test of expenditure laid out wholly and exclusively for the purposes of trade or business is that it is incurred by the assessee as incidental to its trade for the purpose of keeping the trade going and of making it pay. 11. We further observe as per…

DCIT 1(2)(1), Mumbai vs. Lic Nomura Mutual Fund Asset Management Co. Ltd, Mumbai

ITA 3823/MUM/2017[2011-12]Status: DisposedITAT Mumbai12 Jun 2019AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Mrs. Nilu Jaggi, DRFor Respondent: Shri Vijay Mehta, AR

…ions cited above and specifically in the case of Sassoon J David & Co. Pvt. Ltd. vs. CIT (118 ITR 261), Karnataka High Court decision in CIT vs. Canara Bank Ltd. (ITA No. 1397 of 2006), Supreme Court decision in the case of CIT v. Delhi Safe Deposit Co. Ltd. (133 ITR 756) and Chandulal Keshavlal & Co. (38 ITR 601; I am of the considered opinion that expenditure was incurred by company in order to preserve the income generating machinery since about90% of income derives from mutual fund by the appellant company being the asset manager and to instill confidence among the investors of the scheme and hence, this expe…

Vaaya Renewable Energy (Purna) Private Limited, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 3(1)`, Mumbai

The appeal of the assessee is allowed

ITA 535/MUM/2018[2012-13]Status: DisposedITAT Mumbai03 May 2018AY 2012-13

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Years: 2012-13 Vaaya Renewable Energy Dcit, (Purna) Private Limited, Central Circle-3(1), बनाम/ A-9, Enercon Tower, Veera 19Th Floor, Air India Bldg. Vs. Desai Raod, Veera Nariman Point, Industrial Estate, Mumbai-400021 Andheri (West), Mumbai-400053 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No.Aadcv7290F "नधा"रती क" ओर से / Assessee By Shri Hemakataria राज"व क" ओर से / Revenue By Ms. N. Hemlatha-Dr

…iness, may be regarded as revenue expenditure laid out wholly and exclusively for the purposes of business. Identical ratio was laid down in Bombay Steam Navigation Company vs CIT (1965) 56 ITR 52, 61 (Supreme Court), CIT vs Delhi Safe Deposit company Ltd.(133 ITR 756)(Supreme Court), CIT vs Rajaram Bandekar (208 ITR 503)(Bom.) and B.K. Khanna & Company Pvt. Ltd. (247 ITR 705)(Del.). There are certain decision, where the Hon'ble Court even went to the extent, where the expenditure, in the course of trade, which is un- remunerative is none the less a proper deduction if wholly and exclusively made for the…

DCIT Cir 3(3)(1), Mumbai vs. Anil Dhirajlal Ambani, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3676/MUM/2016[2011-12]Status: DisposedITAT Mumbai23 Mar 2018AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm Dcit – Circle 3(3)(1) Vs. Shri Anil Dhirajlal Ambani Room No.609, 39, Sea Wind 6Th Floor Cuffe Parade Aayakar Bhavan Colaba, M.K.Road, Mumbai – 400 005 Mumbai – 400 020 Pan/Gir No. Aad[A3703D Appellant) Respondent) ..

Section 143(1)Section 143(2)Section 143(3)Section 37(1)

…can ignore the certificates issued by the D.G.T.D. is clearly erroneous. The conclusion recorded by the authorities by ignoring this certificate cannot be accepted 22. Reliance was also placed on the ruling in the case of CIT v. Delhi Safe Deposit Co. Ltd. (133 ITR 756) (SC) (Page No. 39 to 45 of the LPB) wherein it was held that expenditure incurred to save business reputation is an admissible expenditure. The relevant extract of the decision is reproduced as under: "... The true test of an expenditure laid out wholly and exclusively for the purposes of trade or business is that it is incurred by the assessee…

ACIT, Circle-4(1), Visakhapatnam vs. Sri Varalakshmi Jute Twine Mills Pvt. Ltd, Rajam

In the result, appeals filed by the Revenue in ITA

ITA 458/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR

Section 143(1)Section 143(3)

…in formulating any general principles candidly recognizing that it is difficult to formulate a test or principle which may be sufficiently accurate and yet exhaustive enough to cover all possible cases. 9.10 In the case of CIT vs. Delhi Safe Deposit Co. Ltd. 133 ITR 756 (SC) held that "The true test of an expenditure laid out wholly and exclusively for the purposes of trade or business is that it is incurred by the assessee as incident to his trade for the purpose of keeping the trade going and of making it pay and not in any other capacity than of a trader. The assessee incurred the impugned expenditure to avoi…

Sri Varalakshmi Jute Twine Mills Private Limited, Rajam vs. DCIT, Circle-4(1), Visakhapatnam

In the result, appeals filed by the Revenue in ITA

ITA 404/VIZ/2017[2013-2014]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2013-2014

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR

Section 143(1)Section 143(3)

…in formulating any general principles candidly recognizing that it is difficult to formulate a test or principle which may be sufficiently accurate and yet exhaustive enough to cover all possible cases. 9.10 In the case of CIT vs. Delhi Safe Deposit Co. Ltd. 133 ITR 756 (SC) held that "The true test of an expenditure laid out wholly and exclusively for the purposes of trade or business is that it is incurred by the assessee as incident to his trade for the purpose of keeping the trade going and of making it pay and not in any other capacity than of a trader. The assessee incurred the impugned expenditure to avoi…

Sri Varalakshmi Jute Twine Mills Pvt. Ltd., Rajam vs. The ITO, Srikakulam

In the result, appeals filed by the Revenue in ITA

ITA 349/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR

Section 143(1)Section 143(3)

…in formulating any general principles candidly recognizing that it is difficult to formulate a test or principle which may be sufficiently accurate and yet exhaustive enough to cover all possible cases. 9.10 In the case of CIT vs. Delhi Safe Deposit Co. Ltd. 133 ITR 756 (SC) held that "The true test of an expenditure laid out wholly and exclusively for the purposes of trade or business is that it is incurred by the assessee as incident to his trade for the purpose of keeping the trade going and of making it pay and not in any other capacity than of a trader. The assessee incurred the impugned expenditure to avoi…

The DCIT, Visakhapatnam vs. Sri Varalakshmi Jute Mills Pvt Ltd, Srikakulam

In the result, appeals filed by the Revenue in ITA

ITA 340/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam09 Feb 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Ito, Ward-3, Mills Pvt. Ltd., Bobbili Road, Srikakulam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L Acit, Circle-4(1), Vs. M/S. Sri Varalakshmi Jute Visakhapatnam. Twine Mills Pvt. Ltd., Bobbili Road, Rajam (Po), Srikakulam District. Pan No. Aadcs 1167 L Sri Varalakshmi Jute Twine Vs. Dcit, Circle-4(1), Mills Pvt. Ltd., Bobbili Road, Visakhapatnam. Rajam (Po), Srikakulam Dist. Pan No. Aadcs 1167 L (Appellants) (Respondents)

For Appellant: Shri Yogesh A. Thar &For Respondent: Shri T. Satyanandam – Sr.DR

Section 143(1)Section 143(3)

…in formulating any general principles candidly recognizing that it is difficult to formulate a test or principle which may be sufficiently accurate and yet exhaustive enough to cover all possible cases. 9.10 In the case of CIT vs. Delhi Safe Deposit Co. Ltd. 133 ITR 756 (SC) held that "The true test of an expenditure laid out wholly and exclusively for the purposes of trade or business is that it is incurred by the assessee as incident to his trade for the purpose of keeping the trade going and of making it pay and not in any other capacity than of a trader. The assessee incurred the impugned expenditure to avoi…

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

In the result, the appeals of the assessee for A

ITA 1348/DEL/2013[2008-09]Status: DisposedITAT Delhi31 Jul 2017AY 2008-09

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: A.Y. 2008-09For Respondent: A.Y. 2008-09

…udgments support this view:- 1. Sasoon J. David & NCo. Pvt. Ltd. Vs. CIT 118 ITR 261 (SC). 2. CIT Vs. Walchand & Co. 65 ITR 381 (SC). 3. J. K. Woolen Mills Vs. CIT 72 ITR 612 (SC). 4. Aluminium Corporation Vs. CIT 86 ITR 11 (SC). 5. CIT Vs. Delhi Safe Deposit 133 ITR 756 (SC). 6. SA Builders Ltd. Vs. CIT 288 ITR 1 (SC). ITA Nos. 898 & 899 and 1348 & 1349/Del./2013 25 4. Further, the AO has invoked Section 40A(2) for the sales made to sister concern. Section 40A(2) does not involve sale/revenue, but it is for expenses incurred. Moreover, the cost paid by the sister concern has been accepted in the assessment pro…

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

In the result, the appeals of the assessee for A

ITA 898/DEL/2013[2008-09]Status: DisposedITAT Delhi31 Jul 2017AY 2008-09

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: A.Y. 2008-09For Respondent: A.Y. 2008-09

…udgments support this view:- 1. Sasoon J. David & NCo. Pvt. Ltd. Vs. CIT 118 ITR 261 (SC). 2. CIT Vs. Walchand & Co. 65 ITR 381 (SC). 3. J. K. Woolen Mills Vs. CIT 72 ITR 612 (SC). 4. Aluminium Corporation Vs. CIT 86 ITR 11 (SC). 5. CIT Vs. Delhi Safe Deposit 133 ITR 756 (SC). 6. SA Builders Ltd. Vs. CIT 288 ITR 1 (SC). ITA Nos. 898 & 899 and 1348 & 1349/Del./2013 25 4. Further, the AO has invoked Section 40A(2) for the sales made to sister concern. Section 40A(2) does not involve sale/revenue, but it is for expenses incurred. Moreover, the cost paid by the sister concern has been accepted in the assessment pro…