Shree Sajjan Mills Ltd. v. CIT

156 ITR 585Supreme Court of India1985#884 most cited

What is Shree Sajjan Mills Ltd. v. CIT authority for?

A liability for gratuity, even if actuarially valued and claimed as ascertained, is deductible under Section 37 only for amounts actually paid, especially when no formal provision for the amount has been made.

119

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2009 to 2026.

Also referred to as

Shree Sajjan Mills Ltd. v. CIT · Section 37(1) · gratuity deduction · actuarial valuation · ascertained liability · actual payment · no provision for gratuity · 156 ITR 585 · SC 1985

Also reported as

23 Taxmann 37

Sections most often in play

Section 143(3)Section 147Section 148Section 115JBSection 195Section 37(1)Section 40(a)(ia)Section 44
Read the full judgment

Issues it is cited on

section 4(3)section 205section 36(1)(v)section 10(23c)(iv)advancement of general public utilitysection 52proviso to section 2(15)mliput to usecomputer softwaresection 10(23c)section 40a

Judgments citing Shree Sajjan Mills Ltd. v. CIT

M/S. Maass Flange India Pvt.Ltd, Pune vs. Deputy Commissioner of Income-Tax, Circle - 14, Pune

In the result, appeal of the assessee is allowed

ITA 1382/PUN/2019[2012-13]Status: DisposedITAT Pune10 Feb 2020AY 2012-13

Bench: Shri D. Karunakara Rao, Am & Shri Laliet Kumar, Jm आयकर अपीऱ सं. / Ita No.1382/Pun/2019 नििाारण वषा / Assessment Year : 2012-13

For Appellant: Shri Kishore PhadkeFor Respondent: Shri Pankaj Garg
Section 2(5)Section 36(1)(iv)Section 36(1)(v)Section 37

…t a strict construction of a provision does not rule out the application of the principles of reasonable construction to give effect to the purpose and intention of any particular provision of the Act. (See: Shri Sajjan Mills Ltd. Vs. CIT, M.P. & Anr., [1985] 156 ITR 585). From a bare a reading of section 36(1)(v) of the Act, it is manifest that the real intention behind the provision is that the employer should not have any control over the funds of the irrevocable trust created exclusively for the benefit of the employees. In the instant case, it is evident from the findings recorded by the Commissioner and aff…

ACIT Ltu-2, Chennai vs. Chemplast Sanmar Limited, Chennai

In the result, the appeal of the assessee in I

ITA 2963/CHNY/2017[2014-15]Status: DisposedITAT Chennai04 Dec 2019AY 2014-15

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

ACIT Ltu-2, Chennai vs. Chemplast Sanmar Limited, Chennai

In the result, the appeal of the assessee in I

ITA 2962/CHNY/2017[2013-14]Status: DisposedITAT Chennai04 Dec 2019AY 2013-14

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

ACIT Ltu-2, Chennai vs. Chemplast Sanmar Limited, Chennai

In the result, the appeal of the assessee in I

ITA 2961/CHNY/2017[2012-13]Status: DisposedITAT Chennai04 Dec 2019AY 2012-13

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

ACIT Ltu-2, Chennai vs. Chemplast Sanmar Limited, Chennai

In the result, the appeal of the assessee in I

ITA 2960/CHNY/2017[2011-12]Status: DisposedITAT Chennai04 Dec 2019AY 2011-12

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

ACIT Ltu-2, Chennai vs. Chemplast Sanmar Limited, Chennai

In the result, the appeal of the assessee in I

ITA 2958/CHNY/2017[2009-10]Status: DisposedITAT Chennai04 Dec 2019AY 2009-10

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

ACIT Ltu-2, Chennai vs. Chemplast Sanmar Limited, Chennai

In the result, the appeal of the assessee in I

ITA 2957/CHNY/2017[2008-09]Status: DisposedITAT Chennai04 Dec 2019AY 2008-09

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

Chemplast Sanmar Limited, Chennai vs. DCIT Ltu, Chennai

In the result, the appeal of the assessee in I

ITA 2810/CHNY/2017[2013-14]Status: DisposedITAT Chennai04 Dec 2019AY 2013-14

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

Chemplast Sanmar Limited, Chennai vs. DCIT Ltu, Chennai

In the result, the appeal of the assessee in I

ITA 2809/CHNY/2017[2012-13]Status: DisposedITAT Chennai04 Dec 2019AY 2012-13

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

Chemplast Sanmar Limited, Chennai vs. DCIT Ltu, Chennai

In the result, the appeal of the assessee in I

ITA 2808/CHNY/2017[2011-12]Status: DisposedITAT Chennai04 Dec 2019AY 2011-12

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

Chemplast Sanmar Limited, Chennai vs. DCIT Ltu, Chennai

In the result, the appeal of the assessee in I

ITA 2807/CHNY/2017[2010-11]Status: DisposedITAT Chennai04 Dec 2019AY 2010-11

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita Nos.2807, 2808, 2809 & 2810/Chny/2017 धनिाजरण वर्ज /Assessment Years: 2010-11, 2011-12, 2012-13 & 2013-14 M/S. Chemplast Sanmar Limited, The Deputy Commissioner Of No.9, Cathedral Road, Income Tax, Chennai – 600 086. Vs. Large Tax Payer Unit, [Pan: Aaacc 3000F] 1775, 21 Mahatma Gandhi High Road, Chennai – 600 034 (अपीलार्थी/Appellant) (प्रत्यथी/Respondent)

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Mr. M. Srinivasa Rao, JCIT

…ness or profession”. In other words, section 40A had effect notwithstanding anything contained in ss. 30 to 39 of the Act. In view of the above observation, the Assessing Officer is directed to follow the decision in the case of Shree Sajjan Mills Ltd. v. CIT 156 ITR 585 (SC) and also the decision in the case of South Madras Electric Supply Corporation Ltd. v. CIT 244 ITR 780 (Mad) and decide the issue afresh. Accordingly, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed for statistical purposes. 10. Similar ground has also been raised in the appeals of the a…

Vedanta Ltd (Earlier Known As Sterlite Industries (India) Ltd.), Gurgaon vs. ACIT, Circle- 26(1), New Delhi

The appeal of the assessee is allowed

ITA 1454/DEL/2019[2010-11]Status: DisposedITAT Delhi09 Oct 2019AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishivedanta Ltd. Vs. Acit, (Earlier Known As Sterlite Circle-26(1), Industries (India) Ltd,) New Delhi Core-6, 3Rd Floor, Scope Complex, 7, Lodhi Road, New Delhi Pan: Aaccs7101B (Appellant) (Respondent)

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Smt Sulekha Verma, CIT DR
Section 234BSection 263Section 271

…d amount to allowing the apprehended losses in the furture from the profits of the current year which is not accepted on any principal of law or accountancy. The same view was echoed by the Hon’ble Apex court in the cases of shree Sajjam Mill Ltd Vs. CIT (SC) 156 ITR 585 and Indian Mollasses Co (P) Ltd Vs CIT (SC) 37 ITR 66, wherein it was clearly held that contingent liabilities do not constitute expenditure and cannot be subject matter of deduction even under the Mercantile system of accounting. Expenditure which is deductible for Income Tax purposes is towards a liability actually existing at the time but sett…

Mr.Hastimal Phoolchandji Jain, Hubli vs. The Income Tax Officer Ward-1(4), Hubli

In the result, the appeal by the assessee is allowed

ITA 37/BANG/2019[2014-15]Status: FixedITAT Bangalore31 Jul 2019AY 2014-15

Bench: Shri N.V. Vasudevan & Shri Jason P. Boazassessment Year : 2014-15

For Appellant: Shri H.N. Khincha, CAFor Respondent: Shri Vikas Suryavamshi, Addl.CIT(DR)(ITAT), Bengaluru
Section 2(41)Section 271(1)(c)Section 40A(2)Section 40A(2)(a)Section 40A(2)(b)

…d in the aforesaid order that the rate of interest would be bound to be more, when the loans are given without any security. The Tribunal made a reference to the decision of the Hon’ble Supreme Court in the case of Upper India Publishing House P. Ltd. v. CIT, 156 ITR 585 (SC) wherein the Hon’ble Apex Court held that section 40A(2)(b) cannot have any application unless it is first held that the expenditure was excessive and unreasonable. Taking all the above circumstances into consideration, the Tribunal held that 18% rate of interest was fair and reasonable. 11. The ld. DR submitted that the aforesaid decision w…

Valsad District Co.Op .Bank Ltd., Surat vs. Dy.CIT, Valsad Range, Valsad

In the result, the appeal of the assessee is partly allowed for this assessment year

ITA 827/AHD/2016[2012-13]Status: DisposedITAT Surat14 May 2019AY 2012-13

Bench: Shri Bhavnesh Saini & Shri O. P. Meena

Section 143Section 143(3)Section 36(1)Section 36(1)(v)Section 37Section 37(1)

…he Section, yet a strict construction of a provision does not rule out the application of the principles of reasonable construction to give effect to the purpose and intention of any particular provision of the Act. (See: Shree Sajjan Mills Ltd. v. CIT [1985] 156 ITR 585/23 Taxman 37 (SC). From a bare reading of Section 36(1)(v) of the Act, it is manifest that the real intention behind the provision is that the employer should not have any control over the funds of the irrevocable trust created exclusively for the benefit of the employees. In the instant case, it is evident from the findings recorded by the Commi…

Valsad District Co.Op .Bank Ltd., Surat vs. Dy.CIT, Valsad Range, Valsad

In the result, the appeal of the assessee is partly allowed for this assessment year

ITA 826/AHD/2016[2007-08]Status: DisposedITAT Surat14 May 2019AY 2007-08

Bench: Shri Bhavnesh Saini & Shri O. P. Meena

Section 143Section 143(3)Section 36(1)Section 36(1)(v)Section 37Section 37(1)

…he Section, yet a strict construction of a provision does not rule out the application of the principles of reasonable construction to give effect to the purpose and intention of any particular provision of the Act. (See: Shree Sajjan Mills Ltd. v. CIT [1985] 156 ITR 585/23 Taxman 37 (SC). From a bare reading of Section 36(1)(v) of the Act, it is manifest that the real intention behind the provision is that the employer should not have any control over the funds of the irrevocable trust created exclusively for the benefit of the employees. In the instant case, it is evident from the findings recorded by the Commi…

Valsad District Co.Op .Bank Ltd., Surat vs. Dy.CIT, Valsad Circle, Valsad

In the result, the appeal of the assessee is partly allowed for this assessment year

ITA 842/AHD/2015[2011-12]Status: DisposedITAT Surat14 May 2019AY 2011-12

Bench: Shri Bhavnesh Saini & Shri O. P. Meena

Section 143Section 143(3)Section 36(1)Section 36(1)(v)Section 37Section 37(1)

…he Section, yet a strict construction of a provision does not rule out the application of the principles of reasonable construction to give effect to the purpose and intention of any particular provision of the Act. (See: Shree Sajjan Mills Ltd. v. CIT [1985] 156 ITR 585/23 Taxman 37 (SC). From a bare reading of Section 36(1)(v) of the Act, it is manifest that the real intention behind the provision is that the employer should not have any control over the funds of the irrevocable trust created exclusively for the benefit of the employees. In the instant case, it is evident from the findings recorded by the Commi…

Integral Urban Co-Operative Bank Ltd., Jaipur vs. Income Tax Officer, Ward-2-1, Jaipur

In the result, the appeal is partly allowed

ITA 1075/JPR/2018[2012-13]Status: DisposedITAT Jaipur13 May 2019AY 2012-13

Bench: Us. In This Appeal, The Assessee Bank Has Taken The Following Grounds Of Appeal:-

For Appellant: Shri Dilip Shivpuri (Adv.)For Respondent: Shri K.C. Meena (ACIT)
Section 145Section 234ASection 36(1)(viia)Section 36(1)(viii)Section 37(1)

…s is allowable under IT Act. These provisions are only contingent liability and not the crystallized one i.e. not the ascertained liabilities. Further, the ld. CIT(A) placed reliance on the following decisions as under:- • Shree Sajjan Mills Ltd. vs. CIT (SC) 156 ITR 585. • Indian Molasses Co. (P.) Ltd. vs. CIT 37 ITR 66. • Rajasthan State mines and Minerals Ltd. Vs. CIT (Raj) 208 ITR 1010. • T.N. Small Industries Dev. Corpn vs.CIT (Mad) 242 ITR 122. • CIT Vs pallaavan Transport Corporation Limited (Mad) 230 ITR 288. • CIT vs. Kattabomman Transport Corporation Ltd. (Mad) 324 ITR 71. Hence, the findings of the Ass…

Nhpc Ltd., Faridabad vs. ACIT, Faridabad

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

ITA 3738/DEL/2015[2010-11]Status: DisposedITAT Delhi08 May 2019AY 2010-11

Bench: Sh. Bhavnesh Saini & Sh. N. S. Sainiita No. 3650/Del/2015 : Asstt. Year : 2010-11 Dy. Commissioner Of Income Vs M/S Nhpc Ltd., Tax, Circle-Ii, Nhpc Complex, Sector-33, Faridabad Faridabad (Appellant) (Respondent) Pan No. Aaacn0149C Ita No. 3738/Del/2015 : Asstt. Year : 2010-11 M/S Nhpc Ltd., Vs Asstt. Commissioner Of Income Nhpc Complex, 4Th Floor, Tax, Circle-Ii, Finance Div, Sector-33, Faridabad Faridabad-121003 (Appellant) (Respondent) Pan No. Aaacn0149C Assessee By : Sh. Ved Jain, Adv. & Sh. Himanshu Aggarwal, Ca Revenue By : Sh. Amit Katoch, Sr. Dr Date Of Hearing : 06.05.2019 Date Of Pronouncement : 08.05.2019 Order Per N. S. Saini:

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Sh. Amit Katoch, Sr. DR
Section 115JSection 143(3)Section 43A

…in para 3 of the assessment order, the AO has added the above provisions for the ITA Nos. 3650 & 3738/Del/2015 16 NHPC Ltd. purpose of computing book profit u/s 115JB following the decision of Hon'ble Supreme Court in the case of Shree Sajjan Mills vs. CIT (156 ITR 585) after holding the said provisions to be only contingent and unascertained. In Shree Sajjan Mills case, the claim for deduction was set up on the ground that amount of gratuity payable to its employees!?was worked out actuarially, which was ascertained by virtue of actuarial valuation and .was deductible under section 37(1) of the Act. 10.4 The a…

DCIT, Faridabad vs. M/S. Nhpc Ltd., Faridabad

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

ITA 3650/DEL/2015[2010-11]Status: DisposedITAT Delhi08 May 2019AY 2010-11

Bench: Sh. Bhavnesh Saini & Sh. N. S. Sainiita No. 3650/Del/2015 : Asstt. Year : 2010-11 Dy. Commissioner Of Income Vs M/S Nhpc Ltd., Tax, Circle-Ii, Nhpc Complex, Sector-33, Faridabad Faridabad (Appellant) (Respondent) Pan No. Aaacn0149C Ita No. 3738/Del/2015 : Asstt. Year : 2010-11 M/S Nhpc Ltd., Vs Asstt. Commissioner Of Income Nhpc Complex, 4Th Floor, Tax, Circle-Ii, Finance Div, Sector-33, Faridabad Faridabad-121003 (Appellant) (Respondent) Pan No. Aaacn0149C Assessee By : Sh. Ved Jain, Adv. & Sh. Himanshu Aggarwal, Ca Revenue By : Sh. Amit Katoch, Sr. Dr Date Of Hearing : 06.05.2019 Date Of Pronouncement : 08.05.2019 Order Per N. S. Saini:

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Sh. Amit Katoch, Sr. DR
Section 115JSection 143(3)Section 43A

…in para 3 of the assessment order, the AO has added the above provisions for the ITA Nos. 3650 & 3738/Del/2015 16 NHPC Ltd. purpose of computing book profit u/s 115JB following the decision of Hon'ble Supreme Court in the case of Shree Sajjan Mills vs. CIT (156 ITR 585) after holding the said provisions to be only contingent and unascertained. In Shree Sajjan Mills case, the claim for deduction was set up on the ground that amount of gratuity payable to its employees!?was worked out actuarially, which was ascertained by virtue of actuarial valuation and .was deductible under section 37(1) of the Act. 10.4 The a…

Sharma Cars Pvt. Ltd., Ahmedabad vs. The Dy. CIT, Circle-8, Now Circle-4(1)(1), Ahmedabad

In the result, appeal of the assessee is partly allowed for statistical purpose

ITA 1655/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad01 Feb 2019AY 2011-12

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./ Ita No. 1655/Ahd/2015 "नधा"रण वष"/Assessment Year: 2011-12 Sharma Cars P.Ltd. Dcit, Cir.8 “Kayakalp”, N.H. No.8 Vs Ahmedabad. Naroda, Ahmedabad 382330. Pan: Aadcs 0305 E अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri T.P. Hemani & Shri P.B. Parmar, Ar Revenue By : Shri Vinod Tanwani, Sr.Dr

For Appellant: Shri T.P. Hemani, and Shri P.B. Parmar, ARFor Respondent: Shri Vinod Tanwani, Sr.DR
Section 143(2)Section 40A(2)Section 40A(2)(b)

…the case of the appellant. The provisions of sec,40A starts with non obstante clause and have overriding effect over the provisions of any other section of Income-tax Act, 1961. It was held by the Hon'ble Supreme Court in Shri Sajjan Mills Ltd. vs CIT (1985) 156 ITR 585(SC). Further Hon'ble Guj'arat High Court in CIT vs Bharat Vijay Mills Ltd. (1988) reported at 128 ITR 633 (Guj.) has held that provisions of sec.40A have been declared to be of overriding nature. The non obstante clause at the beginning of sec. 40A(1) clearly indicate that if any other provisions exist somewhere on the statute book, they have to…