Southern Technologies Ltd. v. JCIT

320 ITR 577Supreme Court of India2010#216 most cited

What is Southern Technologies Ltd. v. JCIT authority for?

The case concerns the allowability of deductions for provisions made under Section 36 of the Income Tax Act, 1961, especially those related to bad and doubtful debts. It distinguishes such deductions from the recognition of interest income on non-performing assets (NPAs).

353

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2010 to 2026.

Also referred to as

Southern Technologies Ltd. v. JCIT · Section 36 deduction · provision for bad and doubtful debts · Section 36(1)(viia) · Section 36(1)(vii) · allowability of provision · MAT section 115JB · non-performing assets · profits and gains of business or profession · bad debt deduction conditions · Income Tax Act 1961

Sections most often in play

Section 36(1)(vii)Section 14ASection 1961Section 115JBSection 37(1)Section 143(3)Section 36(1)(viia)Section 10(34)
Read the full judgment

Issues it is cited on

section 36(2)(v)section 41(4)section 36(1)(viia)section 36(2)section 36(1)(vii)section 36(1)(viii)section 115jb(2)section 10(34)additional depreciationsection 41section 36(1)profits and gains of business or profession

Judgments citing Southern Technologies Ltd. v. JCIT

JCIT (OSD) Circle-2, Trichy vs. The Karur Vysya Bank Ltd., Karur

In the result, appeal filed by the Revenue for assessment year

ITA 635/CHNY/2020[2017-18]Status: DisposedITAT Chennai20 Sept 2024AY 2017-18

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकर अपील सं./Ita No.: 620/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 Deputy Commissioner Of Income M/S. Karur Vysya Bank, V. Tax, Finance &Control Dept., Circle -2(1), Erode Road, Trichy. Karur – 639 002. [Pan: Aaact-3373-J] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 635/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 M/S. Karur Vysya Bank, The Joint Commissioner Of V. Finance &Control Dept., Income Tax, Erode Road, Circle -2, Karur – 639 002. No.44, Williams Road, [Pan: Aaact-3373-J] Contanment, Trichy – 620 001. (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee By : Shri. Ananthan, Ca & Smt. R. Lalitha, Ca Department By : Shri. Nilay Baran Som, Cit सुनवाई क" तारीख/Date Of Hearing : 05.08.2024 घोषणा क" तारीख/Date Of Pronouncement : 20.09.2024 आदेश /O R D E R Per S. R. Raghunatha:

For Appellant: Shri. Ananthan, CA & Smt. R. Lalitha, CAFor Respondent: Shri. Nilay Baran Som, CIT
Section 145Section 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 36(2)(v)

…und, such payment could not be deducted under section 28 on general principle in arriving at profits and gains of business in a commercial sense. 9. The CIT(A) failed to appreciate decision of the Hon'ble Supreme Court in the case of southern Technologies Ltd 320 ITR 577 (SC) where held that the expenditure covered u/s 30 to 36 is not allowable u/s 37of the Act. 10.The CIT(A) erred in allowing the claim of the assessee towards provision of bad and doubtful debts u/s 36(1)(viia) of the Act. 11.The CIT(A) failed to appreciate that the concept of considering the incremental Average rural advance was upheld by the Ho…

ACIT, Circle 1(1), Chandigarh vs. M/S Sml Isuzu Ltd., Chandigarh

ITA 644/CHANDI/2022[2015-16]Status: DisposedITAT Chandigarh18 Sept 2024AY 2015-16

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Rohit Jain, Advocate and Ms. Somya Jain, C.AFor Respondent: Shri Vivek Vardhan, JCIT, Sr. DR
Section 143(2)Section 143(3)Section 147Section 148Section 250Section 253Section 3

…n the balance sheet, it would be regarded as provision or actual write off of debt / asset [ Vijaya Bank Vs. CIT : 323 ITR 166 relied upon]. The assessee further relies upon the judgment of Supreme Court of India in case of southern Technologies Ltd. Vs. JCIT 320 ITR 577 and states that in Instant case besides debiting the P&L account they have correspondingly reduced the amount from debtors account on the asset side of the balance sheet and consequently, at the end of the year, the figure shown on the asset side was net of the alleged provision. Such treatment amounted to actual write off for the purpose of avai…

ACIT, Amravati Circle, Amravati vs. Chandrapur Dist Central Co-Op Bank Ltd, Chandrapur

In the result, appeal filed by the Revenue is dismissed

ITA 398/NAG/2023[2014-15]Status: DisposedITAT Nagpur18 Sept 2024AY 2014-15

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Mahavir AtalFor Respondent: Shri Sandeep Salonkhe
Section 271(1)(c)Section 36Section 36(1)Section 36(1)(viia)

…t at Rs. 105,69,80,000/- which is 10% of the aggregate rural advances of the bank The aforesaid claim was allowable to the assessee as per the ratio laid down by the Hon ble Supreme court in the aforesaidreferred to cases of Southern Technologies Ltd. Vs JCIT 320 ITR 577 and Catholic Syrian Bank Ltd. Vs 343 ITR 270. The impugned order passed by the id. CIT(A) is in consonance with the observations made by the ITAT F Bench, New Delhi having same combination in assessee s own case for the assessment year 2009-10 ie Prathma Bank Vs CIT (2016) 52 ITR (Trib.) 454 (Del.) (supra). We, therefore considering the totality…

Deputy Commissioner of Income Tax, Amravati & Chandrapur Circle, Amravati vs. Chandrapur District Central Co-Op Bank Ltd., Chandrapur

In the result, appeal filed by the Revenue is allowed for statistical purposes

ITA 89/NAG/2022[2018-19]Status: DisposedITAT Nagpur21 Aug 2024AY 2018-19

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Mahavir AtalFor Respondent: Shri Kailash C. Kanojiya
Section 143(3)Section 271(1)(c)Section 274Section 36(1)(viia)

…at Rs. 105,69,80,000/- which is 10% of the aggregate rural advances of the bank. The aforesaid claim was allowable to the assessee as per the ratio laid down by the Hon ble Supreme court in the aforesaid referred to cases of Southern Technologies Ltd. Vs JCIT 320 ITR 577 and Catholic Syrian Bank Ltd. Vs CIT 343 ITR 270. The impugned order passed by the Id. CIT(A) is in consonance with the observations made by the ITAT F Bench, New Delhi having same combination in assessee s own case for the assessment year 2009-10 i.e. Prathma Bank Vs CIT (2016) 52 ITR (Trib.) 454 (Del.) (supra). We, therefore, considering the to…

ACIT, Chandrapur Circle, Chandrapur vs. Chandrapur Distt. Central Co-Op Bank Ltd, Chandrapur

In the result, appeal filed by the Revenue is allowed for statistical purposes

ITA 399/NAG/2019[2015-16]Status: DisposedITAT Nagpur21 Aug 2024AY 2015-16

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Mahavir AtalFor Respondent: Shri Kailash C. Kanojiya
Section 143(3)Section 271(1)(c)Section 274Section 36(1)(viia)

…at Rs. 105,69,80,000/- which is 10% of the aggregate rural advances of the bank. The aforesaid claim was allowable to the assessee as per the ratio laid down by the Hon ble Supreme court in the aforesaid referred to cases of Southern Technologies Ltd. Vs JCIT 320 ITR 577 and Catholic Syrian Bank Ltd. Vs CIT 343 ITR 270. The impugned order passed by the Id. CIT(A) is in consonance with the observations made by the ITAT F Bench, New Delhi having same combination in assessee s own case for the assessment year 2009-10 i.e. Prathma Bank Vs CIT (2016) 52 ITR (Trib.) 454 (Del.) (supra). We, therefore, considering the to…

Assistant Commissioner of Income Tax, Chandrapur Circle, Chandrapur vs. M/S Chandrapur District Central Co-Oprative Bank Limted, Chandrapur

In the result, appeal filed by the Revenue is allowed for statistical purposes

ITA 241/NAG/2018[2013-14]Status: DisposedITAT Nagpur21 Aug 2024AY 2013-14

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Mahavir AtalFor Respondent: Shri Kailash C. Kanojiya
Section 143(3)Section 271(1)(c)Section 274Section 36(1)(viia)

…at Rs. 105,69,80,000/- which is 10% of the aggregate rural advances of the bank. The aforesaid claim was allowable to the assessee as per the ratio laid down by the Hon ble Supreme court in the aforesaid referred to cases of Southern Technologies Ltd. Vs JCIT 320 ITR 577 and Catholic Syrian Bank Ltd. Vs CIT 343 ITR 270. The impugned order passed by the Id. CIT(A) is in consonance with the observations made by the ITAT F Bench, New Delhi having same combination in assessee s own case for the assessment year 2009-10 i.e. Prathma Bank Vs CIT (2016) 52 ITR (Trib.) 454 (Del.) (supra). We, therefore, considering the to…

JCIT(OSD) Corporate Circle-1(1), Chennai vs. M/S Cholamandalam Investment and Fiance Comppany Limited, Chennai

In the result, the appeals filed by the assessee in ITA

ITA 515/CHNY/2023[2018-19]Status: DisposedITAT Chennai14 Aug 2024AY 2018-19

Bench: Shri Mahavir Singhand Shri S.R. Raghunatha

For Appellant: Shri Ajit Jain, CA (Through Virtual)For Respondent: Shri Nilay Baran Som, CIT
Section 143(3)

…shareholders as a part of conservative accounting principle. However, the same is not applicable in respect of disclosure of income for tax purposes. This principle has been upheld by the Hon'ble Supreme Court in the case of Southern Technologies reported in 320 ITR 577. In the said case, it has been observed, in the context of the 1998 RBI Directive on NPA, "we need to emphasise that the 1998 Directions has nothing to do with the accounting treatment or taxability of "income" under the IT Act. The two, viz., IT Act and the 1998 Directions operate in different fields." Also, the Assessing officers, in their asse…

JCIT(OSD) Corporate Circle-1(1), Chennai vs. M/S Cholamandalam Investment and Fiance Comppany Limited, Chennai

In the result, the appeals filed by the assessee in ITA

ITA 514/CHNY/2023[2017-18]Status: DisposedITAT Chennai14 Aug 2024AY 2017-18

Bench: Shri Mahavir Singhand Shri S.R. Raghunatha

For Appellant: Shri Ajit Jain, CA (Through Virtual)For Respondent: Shri Nilay Baran Som, CIT
Section 143(3)

…shareholders as a part of conservative accounting principle. However, the same is not applicable in respect of disclosure of income for tax purposes. This principle has been upheld by the Hon'ble Supreme Court in the case of Southern Technologies reported in 320 ITR 577. In the said case, it has been observed, in the context of the 1998 RBI Directive on NPA, "we need to emphasise that the 1998 Directions has nothing to do with the accounting treatment or taxability of "income" under the IT Act. The two, viz., IT Act and the 1998 Directions operate in different fields." Also, the Assessing officers, in their asse…

Cholamandalam Investment &Finance Company Limited, Parrys, Chennai vs. ACIT- Corporate Circle -1(2), Chennai

In the result, the appeals filed by the assessee in ITA

ITA 384/CHNY/2023[AY 2017-2018]Status: DisposedITAT Chennai14 Aug 2024

Bench: Shri Mahavir Singhand Shri S.R. Raghunatha

For Appellant: Shri Ajit Jain, CA (Through Virtual)For Respondent: Shri Nilay Baran Som, CIT
Section 143(3)

…shareholders as a part of conservative accounting principle. However, the same is not applicable in respect of disclosure of income for tax purposes. This principle has been upheld by the Hon'ble Supreme Court in the case of Southern Technologies reported in 320 ITR 577. In the said case, it has been observed, in the context of the 1998 RBI Directive on NPA, "we need to emphasise that the 1998 Directions has nothing to do with the accounting treatment or taxability of "income" under the IT Act. The two, viz., IT Act and the 1998 Directions operate in different fields." Also, the Assessing officers, in their asse…

M/S Cholamandalam Investment & Finance Company Limited, Chennai vs. DCIT-1(2), Chennai

In the result, the appeals filed by the assessee in ITA

ITA 847/CHNY/2020[2012-13]Status: DisposedITAT Chennai14 Aug 2024AY 2012-13

Bench: Shri Mahavir Singhand Shri S.R. Raghunatha

For Appellant: Shri Ajit Jain, CA (Through Virtual)For Respondent: Shri Nilay Baran Som, CIT
Section 143(3)

…shareholders as a part of conservative accounting principle. However, the same is not applicable in respect of disclosure of income for tax purposes. This principle has been upheld by the Hon'ble Supreme Court in the case of Southern Technologies reported in 320 ITR 577. In the said case, it has been observed, in the context of the 1998 RBI Directive on NPA, "we need to emphasise that the 1998 Directions has nothing to do with the accounting treatment or taxability of "income" under the IT Act. The two, viz., IT Act and the 1998 Directions operate in different fields." Also, the Assessing officers, in their asse…

M/S Syndicate Bank, Manipal vs. Deputy Commissioner of Income Tax, Circle - 1, Udupi

In the result, appeal of the revenue in ITA No

ITA 1219/BANG/2019[2015-16]Status: DisposedITAT Bangalore08 Aug 2024AY 2015-16

Bench: Shri Chandra Poojari & Shri Keshav Dubeyassessment Year: 2015-16

For Appellant: Shri S. Ananthan, A.RFor Respondent: Ms. Neera Malhotra, D.R
Section 115JSection 36(1)(vii)Section 36(1)(viia)

…lowance of Rs.975,06,92,286/- u/s 36(1)(vii) of the Act being the Non-Rural Write off by the bank. 3. Facts of the issue are that the learned Assessing Officer relying on the decision of Hon'ble Supreme Court in the case of Southern Technologies vs CIT [2010] 352 ITR 577 (SC) disallowed the claim holding that the assessee bank had not debited the amount of doubtful debt to P&L A/c instead they had debited the provision for NPA to P&L A/c. The assessee bank relying on the decision of Hon'ble Supreme Court in the case of Vijaya Bank 323 IT R 166 contended before the learned Commissioner of Income Tax (Appeals) that…

M/S. Vaasautomation Private Limited, Kanchipurm vs. ACIT, Coprporate Circle-3(2), Chennai

In the result, all the grounds of appeal raised by the assesse are dismissed

ITA 140/CHNY/2024[2015-16]Status: DisposedITAT Chennai31 Jul 2024AY 2015-16

Bench: Shri Aby T Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita No.140/Chny/2024 निर्धारण वर्ा /Assessment Years: - 2015-16 M/S.Vaasautomation India Pvt Ltd., The Asst.Commissioner Of Income Plot No.H18 & H19, Sipcot Industrial Tax(Osd), Park, Vallam Vadagal, Echoor Post, Corporate Circle-3(2), Sriperumbudur Taluk, Chennai Kancheepuram Dist, Kanchipuram-631604. [Pan: Aaach2759N] (अपीलार्थी/Assesse) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assesse By : Shri N.Venkatasubramanian, C.A, प्रत्यर्थी की ओर से /Respondent By : Shri P.Sajit Kumar, Jcit सुनवाई की तारीख/Date Of Hearing : 04.07.2024 घोषणा की तारीख /Date Of Pronouncement : 31.07.2024

For Respondent: Shri P.Sajit Kumar, JCIT
Section 143(3)Section 250Section 36(1)(vii)Section 36(1)(viia)Section 36(2)

…ter 1.4.1989 however, a mere provision for bad debt would not be entitled to deduction under Section 36(1)(vii) of the Act. In context of such statutory change, the Supreme Court referred to the decision in case of Southern Technologies Ltd. v. Jt. CIT [2010] 320 ITR 577/187 Taxman 346, in which the following observations were made : "Prior to April 1, 1989, the law, as it then stood, took the view that even in cases in which the assesse(s) makes only a provision in its accounts for bad debts and interest thereon and even though the amount is not actually written off by debiting the profit and loss account of the…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 464/HYD/2023[2010-11]Status: DisposedITAT Hyderabad29 Jul 2024AY 2010-11

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…nt under current category following the prudential norms prescribed by the NABARD. However, the guidelines for prudential norms cannot be overriding the Income Tax Act as envisaged in the Apex Courts judgment in the case of Southern Technologies Ltd. Vs. JCIT(320 ITR 577). The assessee, if required by the prudential norms can make a provision for diminished value as part of appropriation but it cannot equate the investment in bonds to the stock in trade for claiming the diminished value as expenditure. In view of the above the claim of depreciation was disallowed. On the above order for the A.Y.2008-09 the assess…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 463/HYD/2023[2014-15]Status: DisposedITAT Hyderabad29 Jul 2024AY 2014-15

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…nt under current category following the prudential norms prescribed by the NABARD. However, the guidelines for prudential norms cannot be overriding the Income Tax Act as envisaged in the Apex Courts judgment in the case of Southern Technologies Ltd. Vs. JCIT(320 ITR 577). The assessee, if required by the prudential norms can make a provision for diminished value as part of appropriation but it cannot equate the investment in bonds to the stock in trade for claiming the diminished value as expenditure. In view of the above the claim of depreciation was disallowed. On the above order for the A.Y.2008-09 the assess…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 462/HYD/2023[2013-14]Status: DisposedITAT Hyderabad29 Jul 2024AY 2013-14

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…nt under current category following the prudential norms prescribed by the NABARD. However, the guidelines for prudential norms cannot be overriding the Income Tax Act as envisaged in the Apex Courts judgment in the case of Southern Technologies Ltd. Vs. JCIT(320 ITR 577). The assessee, if required by the prudential norms can make a provision for diminished value as part of appropriation but it cannot equate the investment in bonds to the stock in trade for claiming the diminished value as expenditure. In view of the above the claim of depreciation was disallowed. On the above order for the A.Y.2008-09 the assess…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-5(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 461/HYD/2023[2012-13]Status: DisposedITAT Hyderabad29 Jul 2024AY 2012-13

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…nt under current category following the prudential norms prescribed by the NABARD. However, the guidelines for prudential norms cannot be overriding the Income Tax Act as envisaged in the Apex Courts judgment in the case of Southern Technologies Ltd. Vs. JCIT(320 ITR 577). The assessee, if required by the prudential norms can make a provision for diminished value as part of appropriation but it cannot equate the investment in bonds to the stock in trade for claiming the diminished value as expenditure. In view of the above the claim of depreciation was disallowed. On the above order for the A.Y.2008-09 the assess…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 460/HYD/2023[2011-12]Status: DisposedITAT Hyderabad29 Jul 2024AY 2011-12

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…nt under current category following the prudential norms prescribed by the NABARD. However, the guidelines for prudential norms cannot be overriding the Income Tax Act as envisaged in the Apex Courts judgment in the case of Southern Technologies Ltd. Vs. JCIT(320 ITR 577). The assessee, if required by the prudential norms can make a provision for diminished value as part of appropriation but it cannot equate the investment in bonds to the stock in trade for claiming the diminished value as expenditure. In view of the above the claim of depreciation was disallowed. On the above order for the A.Y.2008-09 the assess…

The Andhra Pradesh State Co Operative Bank Limited, Hyderabad vs. Asst. Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 241/HYD/2018[2009-10]Status: DisposedITAT Hyderabad29 Jul 2024AY 2009-10

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…nt under current category following the prudential norms prescribed by the NABARD. However, the guidelines for prudential norms cannot be overriding the Income Tax Act as envisaged in the Apex Courts judgment in the case of Southern Technologies Ltd. Vs. JCIT(320 ITR 577). The assessee, if required by the prudential norms can make a provision for diminished value as part of appropriation but it cannot equate the investment in bonds to the stock in trade for claiming the diminished value as expenditure. In view of the above the claim of depreciation was disallowed. On the above order for the A.Y.2008-09 the assess…

The Andhra Pradesh State Cooperative Bank Limited, Hyderabad vs. Asst.Commissioner of Income Tax, Circle-5(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 1796/HYD/2017[2008-09]Status: DisposedITAT Hyderabad29 Jul 2024AY 2008-09

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…nt under current category following the prudential norms prescribed by the NABARD. However, the guidelines for prudential norms cannot be overriding the Income Tax Act as envisaged in the Apex Courts judgment in the case of Southern Technologies Ltd. Vs. JCIT(320 ITR 577). The assessee, if required by the prudential norms can make a provision for diminished value as part of appropriation but it cannot equate the investment in bonds to the stock in trade for claiming the diminished value as expenditure. In view of the above the claim of depreciation was disallowed. On the above order for the A.Y.2008-09 the assess…

Grass Associates Pvt Ltd, Kochi vs. The ITO, Corp.Ward-13), Kochi

In the result, the appeal filed by the assessee is dismissed

ITA 71/COCH/2022[2009-10]Status: DisposedITAT Cochin30 May 2024AY 2009-10

Bench: Shri Sanjay Arora, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Sri. Mathew Joseph, CAFor Respondent: Smt.J.M. Jamuna Devi, Sr. DR
Section 143(3)

…eory, argue of it being necessitated for business reasons. True, but, then, it is the real income, subject to the provisions of the Act, that is taxable (Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521(SC); Southern Technologies Ltd. v. Jt. CIT [2010] 320 ITR 577 (SC)). The said theory is thus is to be applied consistent with the provisions of the Act and, two, the common law. 4.3 We have, at this stage, two options, i.e., to restore the matter back to the AO for examining the deductibility of the expenditure from the standpoint of Explanation to sec.37(1), qua which there is no finding; there being no e…