How many judgments cite Shree Sajjan Mills Ltd. v. CIT?

119 judgments on BharatTax cite Shree Sajjan Mills Ltd. v. CIT (156 ITR 585), spanning 2009 to 2026.

Which sections of the Income Tax Act does Shree Sajjan Mills Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 143(3), Section 147, Section 148, Section 115JB, Section 195, Section 37(1).

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 147 Section 148 Section 115JB Section 195 Section 37(1)Section 40(a)(ia)Section 44

Read the full judgment

Issues it is cited on

section 4(3)section 205 section 36(1)(v)section 10(23c)(iv)advancement of general public utility section 52 proviso to section 2(15)mli put to use computer software section 10(23c)section 40a

Judgments citing Shree Sajjan Mills Ltd. v. CIT

CIT vs. Jagdish Prasad Gupta

ITA/711/2011HC Delhi18 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…ent demands were actually a claim for damages. It was, therefore no better than a contingent liability. Reliance was placed on the decision in CIT v. Goverdhan Ltd. [1968] 69 ITR 675 (SC); Shree Sajjan Mills Ltd. v. Commissioner of Income Tax, M.P. [1985] 156 ITR 585 (SC); CIT v. ITA 711/2011 & batch matters Page 22 of 39 Indian Smelting & Refinery Co. Ltd. [1998] 230 ITR 194 (Bom.) as affirmed in Indian Smelting & Refinery v. CIT [2001] 116 TAXMANN 606 (SC); Indian Molasses Co. (Privat…

Jagdish Prasad Gupta

ITA/695/2010HC Delhi18 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

Priya Ltd., Mumbai vs. DCIT (OSD), Cir 2(3), Mumbai

The appeal of the assessee is disposed off in terms indicated hereinabove and the appeal of the Revenue is dismissed

ITA 3231/MUM/2015[2010-11]Status: DisposedITAT Mumbai21 Feb 2017AY 2010-11

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2010-11 Priya Ltd. Dcit(Osd), Circle-2(3), 209-210, Kimatraj Building बनाम/ R. No. 552, 5Th Floor, 02 Floor, 77/79 Vs. Aayakar Bhavan, M.K.Road, M.K. Road, Mumbai-400020 Mumbai-400002 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aaacp2210Q Assessment Year: 2010-11 Dcit(Osd), Priya Ltd. 209-210, Kimatraj Building Circle-2(3), बनाम/ 02 Floor, 77/79 R. No. 552, 5Th Floor, Vs. M.K. Road, Aayakar Bhavan, M.K.Road, Mumbai-400002 Mumbai-400020 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aaacp2210Q

Section 10(33)Section 143(3)Section 14ASection 260A

…se under consideration these facts were missing, that liability would arise only when any claim was made by the purchasers and not before. He placed reliance on the judgments of Indian Molasses Co. P. Ltd (37 ITR 66),Calcutta Co. Ltd (37ITR1) Sajjan Mill Ltd (156 ITR 585). He finally held that the assessee had made a provision regarding charges payable in terms of sale which had not crystallised ,that the assessee failed to prove the actual incurrence of liability under the warranty cause, that in absence of any such details, acceptance of the claim without any basis could not be allowed, that the AO was justifi…

Ubm India P.Ltd, Mumbai vs. Asst CIT 8(3), Mumbai

In the result, the assessee’s appeal is partly allowed for the statistical purposes

ITA 1130/MUM/2013[2009-10]Status: DisposedITAT Mumbai25 May 2016AY 2009-10

Bench: Shri Jason P. Boaz, Am & Shri Sandeep Gosain, Jm आयकर अपील सं./ I.T.A. No. 1130/Mum/2013 ("नधा"रण वष" / Assessment Year: 2009-10)

For Appellant: Shri Anil Kumar Das

Section 143(1)Section 143(3)

…s a contingent liability. Therefore, it is not allowable in the year under consideration. To strengthen this view reliance is 6 M/s. UBM India Pvt. Ltd. Vs. ACIT placed on the decision of the Hon'ble Supreme Court in the case of Shree Sajjan Mills Ltd vs. CIT 156 ITR 585 where it is held that- "Contingent liabilities do not constitute expenditure and cannot be the 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 setting apart money which might become expenditure on the happen…

Crompton Greaves Ltd, Mumbai vs. CIT -6, Mumbai

In the result, the appeals filed by the assessee company in ITA no

ITA 2836/MUM/2014[2007-08]Status: DisposedITAT Mumbai01 Feb 2016AY 2007-08

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kochar"ी शैल" कुमार यादव, "या"यक सद"य एवं "ी "ी रिमत कोचर, लेखाकार सद"य के सम" । आयकर अपील सं./I.T.A. No. 1994/Mum/2013 ("नधा"रण वष" / Assessment Year : 2007-08) आयकर अपील सं./I.T.A. No. 2836/Mum/2014 ("नधा"रण वष" / Assessment Year : 2007-08) M/S Crompton Greaves बनाम/ Cit – 6,Mumbai, Ltd.,6Th Floor, C.G. House, 5Th Floor, V. Dr. A.B. Road, Worli, Aayakar Bhavan, Mumbai – 400 030. M.K. Road, Mumbai – 400 020. "थायी लेखा सं./Pan : Aaacc3840K .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Assessee By Shri Pradeep N. Kapasi Revenue By : Shri C.W. Angolkar सुनवाई क" तार"ख /Date Of Hearing : 29-10-2015 घोषणा क" तार"ख /Date Of Pronouncement : 01-02-2016

For Respondent: Shri C.W. Angolkar

Section 143(3)Section 263

…expenditure can be allowed u/s 28 or 37 of the Act , unless the assessee company followed mercantile system of accounting and liability claimed on accrual basis has crystallized during the previous year relying on decision of Shri Sajjan Mills Limited v. CIT 156 ITR 585(SC). The CIT noticed from the schedule 16 read with note 33 to schedule 13, that ITA 1994Mum/13 & ITA 2836/Mum/14 6 the expenditure of Rs. 17.72 crores claimed by the assessee company was nothing but “provisions” for expenditure. The CIT observed that the A.O. failed to make relevant and meaningful enquiry to the fact that liabilities in this r…

D.C.I.T Cir - 11, Kolkata. vs. M/S Eastern Metec Pvt Ltd, Kolkata

In the result, Revenue’s appeal is partly allowed for statistical purposes

ITA 411/KOL/2013[2009-10]Status: DisposedITAT Kolkata07 Oct 2015AY 2009-10

Bench: Shri N.V. Vasudevan & Shri Waseem Ahmedassessment Year :2009-10

Section 143(3)

…hese provisions are merely contingent liabilities and no expenditure has been incurred in actually so far. The AO has also cited the case laws in regard to assessee’s claim as detailed below:- Hon’ble Supreme court in the case of Shri Sajjan Mills Ltd. v, CIT 156 ITR 585 (SC) and Hon’ble Madras High court in the case of CIT Vs. Rotork Controls India Ltd. (2007) 293 ITR 311 (Mad) ITA No.411/Kol/2013 A.Y. 2009-10 DCIT Cir-11, Kol. V. M/s Estern Metec Pvt. Ltd. Page 3 Before the CIT(A) the assessee has pointed out that the judgment of the Hon’ble supreme Court has reversed the judgment of the Hon’ble Madras High Co…

Commissioner of Income Tax-XI vs. M/S Dlf Commercial Project Corporation

The appeal is allowed in the above terms

ITA/507/2013HC Delhi15 Jul 2015

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 263Section 32Section 32(1)(iia)

…re not undertaken, there would have been a ITA 507/2013 Page 21 likelihood of the higher figure not being realized after tariff finalization. 21. There is authority, in the form of Supreme Court judgments in Shree Sajjan Mills Ltd v. CIT, (1985) 156 ITR 585, Bharat Earth Movers Ltd v. CIT, (2000) 245 ITR 428 and Metal Box Company of India Ltd v. Their Workmen, (1969) 73 ITR 53, that a provision made on a reasonable basis, it would be in the nature of an ascertained liability and that in a mercantile system of accounting, provision for liability ascertained during the course of the relevant acc…

Commissioner of Income Tax vs. M/S Vodafone Essar South Ltd

ITA/594/2014HC Delhi29 Oct 2014

…ct was enacted to specify and stipulate that provision for gratuity would be allowed in the profit and loss account when additional conditions stated therein were also satisfied. [See decision of the Supreme Court in Shree Sajjan Mills Ltd. v. CIT, (1985) 156 ITR 585 (SC)] 15. Again in Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC), it has been observed:- “The law is settled: If a business liability has definitely arisen in the accounting year, the deduction should be allowed although the liability may have to be quantified and discharged at a future date. What should be certain is the incurring of…

Commissioner of Income Tax ¿¿¿ II vs. M/s. Jain Studios Ltd

ITA-607/2009HC Delhi30 Sept 2011

….. (1986) 158 ITR 416 (SC) a question had arisen as to whether an assessed was entitled to the deduction of the estimated gratuity payable under an agreement. The Supreme Court relying on its earlier decision in the case of Shri Saiian Mills Ltd., (1985) 156 ITR 585 held that the liability having arisen under an agreement accrued in the relevant year of accounts and that claim would be admissible provided the provision for gratuity was based on "a legal and scientific basis. The real test, therefore, is that if the amount eventually payable could be properly ascertained and its value commercially de…

Commissioner of Income Tax Delhi VI vs. Whirphool of India Ltd

Appeal is disposed of in the aforesaid terms

ITA/1154/2008HC Delhi24 Jan 2011

Bench: Pointing Out The Questions Of Law Which Were Framed While Admitting This Appeal & To Answer Those Questions, We Deem It Appropriate To Take Note Of The Facts Under Which These Questions Have Arisen For Consideration. 2. In The Assessment Year 1996-97 Relevant To Financial Year 1995-96, The Respondent/Assessee Had Filed Its Return Of Income On 30Th November, 1996 Declaring A Loss Of ` 48.71 Crores. This Income Was Assessed Under Section 143 (3) Of The Income-Tax Act (Hereinafter Referred To As The „Act‟) Making Various Additions. The Assessing Officer Assessed The Loss At ` 45.25 Crores Instead Of `

Section 143Section 40

…away of these sums irretrievably”. 10. Another case referred by Mr. Sahni was again a judgment of Supreme Court in Shree Sajjan Mills Ltd. Vs. Commissioner of ITA No.1154/2009 Page 9 of 22 Income Tax, M.P. & Another, 156 ITR 585. One of the questions referred to the High Court in the said case was as follows:- “Whether on the facts and in the circumstances of the case, the Tribunal was right in law in allowing deduction of Rs.15,71,855 under Section 37 of the I.T. Act, 1961 out of the sum of Rs.28,59,431 for which provision was made towards liability for gratuity…

Commissioner of Income Tax Delhi VI vs. Whirphool of India Ltd

Appeal is disposed of in the aforesaid terms

ITA - 1154 / 2008HC Delhi24 Jan 2011

Section 143Section 40

…to be returned if the annuities were not bought and the setting apart of the money was not a paying out or away of these sums irretrievably”. 10. Another case referred by Mr. Sahni was again a judgment of 2011:DHC:428-DB Income Tax, M.P. & Another, 156 ITR 585. One of the questions referred to the High Court in the said case was as follows:- “Whether on the facts and in the circumstances of the case, the Tribunal was right in law in allowing deduction of Rs.15,71,855 under Section 37 of the I.T. Act, 1961 out of the sum of Rs.28,59,431 for which provision was made towards liability for gratuity…

Commissioner of Income Tax vs. Triveni Engineering & Industries Ltd

ITA - 346 / 2009HC Delhi29 Nov 2010

Section 37(1)

…e Supreme Court and certain High Courts in support of her aforesaid arguments. These are as under: (i) Indian Molasses Company Pvt. Ltd. Vs. Commissioner of Income Tax [37 ITR 66 (SC)]; (ii) Shri Sajjan Mills Ltd. Vs. Commissioner of Income Tax [156 ITR 585 (SC)]; (iii) Commissioner of Income Tax Vs. Lachhman Das Mathura Das [124 ITR 411(All)], (iv) Commissioner of Income Tax Vs. Seshasayee Industries Ltd. [242 ITR 691 (Mad)]. 10. Mr. Ajay Vohra, learned counsel appearing for the assessee, countered the aforesaid submissions of the learned counsel for the Revenue. He supported the decis…

Commnr. of Income Tax, Coimbatore vs. M/S. Textool Co. Ltd

The appeal is dismissed with no order

C.A. No.-000447-000447 - 2003Supreme Court09 Sept 2009

Section 256(1)Section 36Section 36(1)(v)Section 40A(7)

…n 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. Commissioner of Income Tax, M.P. & Anr. (1985) 156 ITR 585). From a bare reading of Sectin 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 t…

M/S. Rotork Controla India (P) Ltd vs. Commnr. of Income Tax, Chennai

Appeals stand allowed in favour of the assessee with no order as to

C.A. No.-003506-003510 - 2009Supreme Court12 May 2009

Section 37

…d reliance on the judgments of the Supreme Court in the case of Indian Molasses Co. (Private) Ltd. v. Commissioner of Income-tax , West Bengal – (1959) 37 ITR 66 (SC) and Shree Sajjan Mills Ltd. v. Commissioner of Income-tax, M.P., and Anr. – (1985) 156 ITR 585 (SC). 6. Mr. S. Ganesh, learned senior counsel, appearing on behalf of the assessee, submitted that in this case the High Court had erred in not following the Rule of Consistency. In this connection, it was urged that right from assessment year 1983-84 upto assessment year 1991-92, the Tribunal had come to the conclusion that Valve 8 Actu…