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 10AASection 195Section 234BSection 234CSection 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 servicestrade creditorssection 90(2)percentage completion methodbusiness connectioncommercial expediencysection 9(1)(vii)section 10aa

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

Kotak Securities Ltd, Mumbai vs. Addl CIT RG 4(3), Mumbai

ITA 3494/MUM/2010[2007-08]Status: DisposedITAT Mumbai22 Feb 2017AY 2007-08

Bench: S/Shri Rajendra, A.M. & Sanjay Garg,J.M. आयकर अपील सं आयकर अपील सं././././Ita No. 3494/Mum/2010,िनधा"रण आयकर अपील सं आयकर अपील सं िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2007-08 वष" Kotak Securities Limited Addl. Cit 1St Floor, Bakthawar Range-4(3), Aayakar Bhavan Vs. 229 Nariman Point,Mumbai-400 021. Mumbai-400 020. Pan: Aaack 3436 F (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri Pavan Kumar Beerla Assessee By: Shri F.V. Irani सुनवाई क" तारीख / Date Of Hearing: 18.01.2017 घोषणा क" तारीख / Date Of Pronouncement: 22.02.2017 आयकर अिधिनयम आयकर अिधिनयम,1961 क" क" धारा धारा 254(1)के अ"तग"त आदेश के अ"तग"त आदेश आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा के अ"तग"त आदेश के अ"तग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य,राजे"" के अनुसार लेखा सद"य राजे"" के अनुसार -Per Rajendra,Am: लेखा सद"य लेखा सद"य राजे"" के अनुसार राजे"" के अनुसार Challenging The Order Dt. 17.03.2010 Of Cit(A)-8,Mumbai The Assessee Has Filed The Present Appeal.Assessee-Company,A Share Broker, Filed Its Return Of Income On 31.10.2007 Declaring Its Total Income Of Rs.390.03 Crores.The Assessing Officer(Ao) Completed Assessment On 30. 03.2009,Determining Its Income At Rs.401.55 Crores.

For Appellant: Shri F.V. IraniFor Respondent: Shri Pavan Kumar Beerla
Section 14ASection 254(1)Section 36(1)(vii)

…3494/M/10(07-08) Kotak Securities Ltd. आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण “ए” ” ” ” "यायपीठ मुंबई म"। आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण "यायपीठ मुंबई म"। "यायपीठ मुंबई म"। "यायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI सव"ी राजे"", लेखा सद"य एवं संजय गग" ,"याियक सद"य Before S/Shri Rajendra, A.M. and Sanjay Garg,J.M. आयकर अपील सं आयकर अपील सं././././ITA No. 3494/Mum/2010,िनधा"रण आयकर अपील सं आयकर अपील सं िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2007-08 वष" Kotak Securities Limited Addl. CIT 1st Floor, Bakthawar Range-4(3), Aayakar Bhavan Vs. 229 Nariman Point,Mumbai-40…

M/S. Stock Traders Pvt. Ltd., Mumbai vs. ACIT Cir 2(3), Mumbai

In the result, the appeal for the assessment year 1995-96 is dismissed

ITA 2803/MUM/2003[1996-1997]Status: DisposedITAT Mumbai05 Apr 2016AY 1996-1997
Section 143(3)Section 250

…and since the assessee was engaged in the business of making investments, the expenses so incurred by the assessee were deductible under section 37(1) and in the light of Hon’ble Supreme Court’s judgment in the case of CIT Vs Delhi Safe Deposit Co Ltd [(1982) 133 ITR 756 (SC)]. Reliance was also placed on the judgment of Hon’ble Bombay Court, in the case of CIT Vs Rajaram Bondekar [(1994) 208 ITR 503 (Bom)], in support of the proposition that the mere fact that expenditure incurred by the assessee benefits a third party would not lead to disallowance as long as the expenses are incurred wholly and exclusively for…

M/S. Stock Traders Pvt. Ltd., Mumbai vs. ACIT Cir 2(3), Mumbai

In the result, the appeal for the assessment year 1995-96 is dismissed

ITA 2802/MUM/2003[1995-1996]Status: DisposedITAT Mumbai05 Apr 2016AY 1995-1996
Section 143(3)Section 250

…and since the assessee was engaged in the business of making investments, the expenses so incurred by the assessee were deductible under section 37(1) and in the light of Hon’ble Supreme Court’s judgment in the case of CIT Vs Delhi Safe Deposit Co Ltd [(1982) 133 ITR 756 (SC)]. Reliance was also placed on the judgment of Hon’ble Bombay Court, in the case of CIT Vs Rajaram Bondekar [(1994) 208 ITR 503 (Bom)], in support of the proposition that the mere fact that expenditure incurred by the assessee benefits a third party would not lead to disallowance as long as the expenses are incurred wholly and exclusively for…

Leading Line Merchand Traders Pvt Ltd

Appeal is dismissed

ITA - 74 / 2012HC Delhi08 Feb 2012
Section 37Section 37(1)

…i.e. Directors of Ballarpur Industries Ltd. was incurred as incidental to their trade, for the purpose of keeping the trade going on and making it pay and not in any other capacity than that of a trader. [CIT Vs. Delhi Sale Deposit Co. Ltd. (1982) 133 ITR 756 (SC)] . 9. No substantial question of law arises in the present appeal. Appeal is dismissed. No costs. . . . SANJIV KHANNA, J . . . . . . . R.V.EASWAR, J . FEBRUARY 08, 2012 . vld . . . . . . . $ 22 to 25 . . .…