Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT

Petronet Mhb Limited, Bangalore vs. The Income Tax Officer, Ward-5(1)(3), Bangalore

In the result, both the appeal of the assessee is allowed

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year : 2013-14

…ction under section 37(1) cannot be declined. As to what should be relevant for examining this aspect of the matter, we may only refer to the observations of Hon'ble Supreme Court in the case of Sri Venkata Satyanarayna Rice Mill Contractors Co. v. CIT [1997] 223 ITR 101 : " …... any contribution made by an assessee to a public welfare fund which is directly connected or related with the carrying on of the assessee's business or which results in the benefit to the assessee's business has to be regarded as an allowable deduction under section 37(1) of the Act. Such a donation, whether voluntary or at the instance…

M/S Bosch Limited, Bangalore vs. Assistant Commissioner of Income Tax Ltu Circle-1, Bangalore

In the result, appeal of the assessee is partly allowed

Bench: Shri N.V. Vasudevan & Ms. Padmavathy Sassessment Year : 2013-14 Bosch Limited, Vs. The Assistant Commissioner Hosur Road, Adugodi, Of Income Tax, Ltu, Bangalore – 560 030. Circle 1, Pan: Aaacm 9840P Bangalore. Appellant Respondent Appellant By : Shri Percy Pardiwala, Advocate Respondent By : Shri V S Chakrapani, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 01.09.2022 Date Of Pronouncement : 13.09.2022 O R D E R Per Padmavathy S.2. This Appeal Is Against The Order Of The Cit(Appeals), Bangalore-9, Bangalore Dated 31.3.2018 For The Assessment Year 2013- 14. 3. The Assessee Raised Grounds Pertaining To The Following Issues:- Deduction U/S. 35(2Ab) Computed On Net Expenditure As Opposed To Gross Expenditure Disallowance Of Provision For Bad & Doubtful Debts I) Disallowance Of Provision For Long Term Service Award Disallowance Of Expenditure U/S. 14A Of The Act Ii) Page 2 Of 67

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND Ms. PADMAVATHY S, ACCOUNTANT MEMBER Assessment year : 2013-14 Bosch Limited, Vs. The Assistant Commissioner Hosur Road, Adugodi, of Income Tax, LTU, Bangalore – 560 030. Circle 1, PAN: AAACM 9840P Bangalore. APPELLANT RESPONDENT Appellant by : Shri Percy Pardiwala, Advocate Respondent by : Shri V S Chakrapani, CIT(DR)(ITAT), Bengaluru. Date of hearing : 01.09.2022 Date of Pronouncement : 13.09.2022 O R D E R Per Padmavathy S., Accountant Member 2. This appeal is against the order of the CIT(Appeals), Bangalo…

M/S. the Sandur Manganese & Iron Ores Ltd, Sandur vs. Assistant Commissioner of Income Tax, Circle-1, Bellary

In the result, both the appeals filed by the assessee stands partly allowed

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

…social welfare of the area in which the business operation is carried on is absolutely essential to exist in the business and to run it in a successful manner as held in the following cases: a) Sri Venkata Satyanarayana Rice Mill Contractors Co vs. CIT (1997) 223 ITR 101 (SC) b) CIT vs. Madras Refineries Ltd (2004) 266 ITR 170 (Mad) c) CIT 86 Anr vs. Infosys Technologies Ltd, 246 CTR 371 d) CIT vs. M.N. Swaminathan, 47 DTR 359. 6. The learned CIT(A) ought to have allowed the expenditure of Rs. 10,40,000/- incurred as Marriage Gift given to the employees as a part of staff welfare payment and accordingly the same…

M/S. the Sandur Manganese & Iron Ores Ltd, Sandur vs. Assistant Commissioner of Income Tax, Circle-1, Bellary

In the result, both the appeals filed by the assessee stands partly allowed

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

…social welfare of the area in which the business operation is carried on is absolutely essential to exist in the business and to run it in a successful manner as held in the following cases: a) Sri Venkata Satyanarayana Rice Mill Contractors Co vs. CIT (1997) 223 ITR 101 (SC) b) CIT vs. Madras Refineries Ltd (2004) 266 ITR 170 (Mad) c) CIT 86 Anr vs. Infosys Technologies Ltd, 246 CTR 371 d) CIT vs. M.N. Swaminathan, 47 DTR 359. 6. The learned CIT(A) ought to have allowed the expenditure of Rs. 10,40,000/- incurred as Marriage Gift given to the employees as a part of staff welfare payment and accordingly the same…

M/S Xindia Steels Limited, Koppal vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeal by the assessee is allowed

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy Sassessment Year : 2014-15

…the future. Expenditure in this sense is equal to disbursement which, to use a homely phrase means something which comes out of the traders pocket." ……………. 23. In the matter of SRI VENKATA SATYANARAYANA RICE MILL CONTRACTORS COMPANY vs CIT reported in (1997) 223 ITR 101 (SC), question arose as to whether contribution made to District Welfare Fund maintained by the District Collector would be against public policy or is an expenditure allowable under Section 37(1) of the Act and it came to be held that such contribution is not against public policy and would be allowable under Section 37(1) of the Act. It was als…

M/S Kumaraswamy Mineral Export Pvt. Ltd., Bengaluru vs. Joint Commissioner of Income Tax Bellary Range, Bellary

In the result, the appeal of the assessee stands allowed

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2011-12 M/S. Kumaraswamy Mineral Exports Pvt. Ltd., [For & On Behalf Of The Joint Erstwhile Partnership Commissioner Of Firm M/S. Kumaraswamy Income Tax, Mineral Exports], Bellary Range, No. 58, Cunningham Vs. Bellary. Road Cross, Bangalore – 560 052. Pan: Aabfk8539K Appellant Respondent : Shri S.V. Ravishankar, Assessee By Advocate : Shri Sumer Singh Meena, Revenue By Cit Dr(Osd) Date Of Hearing : 21-12-2021 Date Of Pronouncement : 04-01-2022 Order Per Beena Pillaipresent Appeal Has Been Filed By Assessee Against The Order Dated 22/03/2018 Passed By Ld.Cit(A), Gulbarga For Assessment Year 2011-12 On Following Grounds Of Appeal: “1. The Order Passed By The Learned Commissioner Of Income-Tax [Appeals]-4, Bengaluru Dated 22/03/2018 & The Order Of Assessment Passed By The Learned Assessing Officer Under Section 143 [3] Of The Act Dated 28/03/2014, In So Far As It Is Against The Appellant, Is Opposed To The Law, Weight Of Evidence, Probabilities, Facts & Circumstances In The Appellant'S Case.

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment Year : 2011-12 M/s. Kumaraswamy Mineral Exports Pvt. Ltd., [For and on behalf of The Joint erstwhile Partnership Commissioner of Firm M/s. Kumaraswamy Income Tax, Mineral Exports], Bellary Range, No. 58, Cunningham Vs. Bellary. Road Cross, Bangalore – 560 052. PAN: AABFK8539K APPELLANT RESPONDENT : Shri S.V. Ravishankar, Assessee by Advocate : Shri Sumer Singh Meena, Revenue by CIT DR(OSD) Date of Hearing : 21-12-2021 Date of Pronouncement : 04-01-2022 ORDER…

B Rudra Gouda, Bellary vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeal filed by assessee stands partly allowed and the appeal by revenue stands dismissed

…& 1199/Bang/2018 Expenditure in this sense is equal to disbursement which, to use a homely phrase means something which comes out of the traders pocket." ……………. 23. In the matterof SRI VENKATASATYANARAYANARICE MILL CONTRACTORSCOMPANY vs CIT reported in (1997) 223 ITR 101 (SC), question arose as to whether contribution made to District Welfare Fund maintained by the District Collector would be against public policy or is an expenditure allowable under Section 37(1) of the Act and it came to be held that such contribution is not against public policy and would be allowable under Section 37(1) of the Act. It was als…

The Assistant Commissioner of Income Tax Circle-1, Bellary vs. Sri B Rudra Gowda, Bellary

In the result, the appeal filed by assessee stands partly allowed and the appeal by revenue stands dismissed

…& 1199/Bang/2018 Expenditure in this sense is equal to disbursement which, to use a homely phrase means something which comes out of the traders pocket." ……………. 23. In the matterof SRI VENKATASATYANARAYANARICE MILL CONTRACTORSCOMPANY vs CIT reported in (1997) 223 ITR 101 (SC), question arose as to whether contribution made to District Welfare Fund maintained by the District Collector would be against public policy or is an expenditure allowable under Section 37(1) of the Act and it came to be held that such contribution is not against public policy and would be allowable under Section 37(1) of the Act. It was als…

M/S the Sandur Manganese & Iron Ores Ltd., Sandur vs. JCIT, Bellary

In the result, all the appeals of the assessee are partly allowed

Bench: Shri B. R. Baskaran & Smt. Beena Pillai

…f the future. Expenditure in this sense is equal to disbursement which, to use a homely phrase means something which comes out of the traders pocket." ……………. 23. In the matterof SRI VENKATA SATYANARAYANA RICE MILL CONTRACTORS COMPANY vs CIT reported in (1997) 223 ITR 101 (SC), question arose as to whether contribution made to District Welfare Fund maintained by the District Collector would be against public policy or is ITA Nos.1515 to 1517/Bang/2015 M/s. The Sandur Manganese & Iron Ores Ltd., Sandur Page 12 of 19 an expenditure allowable under Section 37(1) of the Act and it came to be held that such contributi…

M/S the Sandur Manganese & Iron Ores Ltd., Sandur vs. JCIT, Bellary

In the result, all the appeals of the assessee are partly allowed

Bench: Shri B. R. Baskaran & Smt. Beena Pillai

…f the future. Expenditure in this sense is equal to disbursement which, to use a homely phrase means something which comes out of the traders pocket." ……………. 23. In the matterof SRI VENKATA SATYANARAYANA RICE MILL CONTRACTORS COMPANY vs CIT reported in (1997) 223 ITR 101 (SC), question arose as to whether contribution made to District Welfare Fund maintained by the District Collector would be against public policy or is ITA Nos.1515 to 1517/Bang/2015 M/s. The Sandur Manganese & Iron Ores Ltd., Sandur Page 12 of 19 an expenditure allowable under Section 37(1) of the Act and it came to be held that such contributi…

M/S the Sandur Manganese & Iron Ores Ltd., Sandur vs. JCIT, Bellary

In the result, all the appeals of the assessee are partly allowed

Bench: Shri B. R. Baskaran & Smt. Beena Pillai

…f the future. Expenditure in this sense is equal to disbursement which, to use a homely phrase means something which comes out of the traders pocket." ……………. 23. In the matterof SRI VENKATA SATYANARAYANA RICE MILL CONTRACTORS COMPANY vs CIT reported in (1997) 223 ITR 101 (SC), question arose as to whether contribution made to District Welfare Fund maintained by the District Collector would be against public policy or is ITA Nos.1515 to 1517/Bang/2015 M/s. The Sandur Manganese & Iron Ores Ltd., Sandur Page 12 of 19 an expenditure allowable under Section 37(1) of the Act and it came to be held that such contributi…

M/S Zeenath Transport Company, Bellary vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, appeal filed by the assessee stands partly allowed as indicated herein above

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…e expenditure, the nature of the right acquired, and their relation inter se, and this is the only key to resolve the issue in the light of the general principles, which are followed in such cases. In Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT,223 ITR 101(SC),Honble Apex Court held that the correct test is that of commercial expediency. In Chemicals & Plastics India Ltd.(supra), Hon’ble Madras High Court while adjudicating as to whether or not the amount of Rs. 1.5 lakhs paid towards the construction of building of the Madras Chamber of Commerce was allowable as business expenditure, held that sin…

Sri. B. Rudragouda, Bellary vs. The Deputy Commissioner of Income Tax, Circle- 1, Bellary

In the result, the appeal is allowed

Bench: Shri Chandra Poojari & Shri George George K.

…o win the goodwill of the local community. Thus, it was submitted that the said expenditure is an admissible business expenditure under section 37 of IT Act. He relied on the following case laws:- (1) Sri Venkata Satyanarayana Rice Mill Contractors Co. [1997] 223 ITR 101 (SC) (2) CIT v. Infosys Technologies Ltd. [2014] 360 ITR 714 (Kar) (3) Mysore Kirloskar Ltd. v. CIT [1987] 30 Taxman 467 (Kar) (4) CIT v. Madras Refineries Ltd. [2004] 266 ITR 170 (Mad) (5) CIT v. Cheran Transport Corpn. Ltd. [1996] 219 ITR 203 (Mad) (6) CIT v. Madura Coats Ltd. [2009] 24 DTR (Mad) 24 (7) CIT v. Velumanickam Lodge [2009] 317 ITR…

Sri. B. Rudragouda, Bellary vs. The Assistant Commissioner of Income Tax, Circle- 1, Bellary

In the result, the appeal is allowed

Bench: Shri Chandra Poojari & Shri George George K.

…o win the goodwill of the local community. Thus, it was submitted that the said expenditure is an admissible business expenditure under section 37 of IT Act. He relied on the following case laws:- (1) Sri Venkata Satyanarayana Rice Mill Contractors Co. [1997] 223 ITR 101 (SC) (2) CIT v. Infosys Technologies Ltd. [2014] 360 ITR 714 (Kar) (3) Mysore Kirloskar Ltd. v. CIT [1987] 30 Taxman 467 (Kar) (4) CIT v. Madras Refineries Ltd. [2004] 266 ITR 170 (Mad) (5) CIT v. Cheran Transport Corpn. Ltd. [1996] 219 ITR 203 (Mad) (6) CIT v. Madura Coats Ltd. [2009] 24 DTR (Mad) 24 (7) CIT v. Velumanickam Lodge [2009] 317 ITR…