Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT

223 ITR 101Supreme Court of India1997#1526 most cited

What is Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT authority for?

The classification of expenditure as capital or revenue is a factual determination, and an assessee's admission, especially when supported by evidence found during a search, can confirm the capital nature of an expense.

74

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2011 to 2026.

Also referred to as

Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT · 223 ITR 101 · section 132 · section 153C · section 153A · revenue expenditure · capital expenditure · classification of expenditure · assessee admission · search assessment · deductibility of expenses · capitalization of expenses

Sections most often in play

Section 143(3)Section 244ASection 132Section 153ASection 153CSection 234BSection 234DSection 250

Issues it is cited on

section 8d(2)(ii)section 14(2)section 153cofsection 8dsection 33bsection 10(2)(xv)section 134section 198section 80ia(5)section 10(2)section 197asection 14a(1)

Judgments citing Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT

Petronet Lng Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is allowed

ITA 5230/DEL/2015[2009-10]Status: DisposedITAT Delhi18 Mar 2021AY 2009-10

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…ome is not an allowable deduction for computing taxable income of any company. It was not incurred for the purpose of business. Reliance was placed on the following decisions by the ld. CIT (A):  Sri Venkata Satyancrayana Rice Mills Contractors Co. vs. CIT (223 ITR 101) SC.  CIT & Anr. vs. Infosys Technologies Ltd. (2014) 360 ITR 714.  Krishna Sahakari Sakhar Karkhana Ltd. v. CIT (229 ITR 577).  Surat Electricity Co. Ltd. vs. ACIT, 125 ITD 227 (Ahd.).  Addl. CIT vs. Rajasthan Spinning and Weaving Mills, 274 ITR 463 (Raj.)  Mehsana District Cooperative Milk Producers Union Ltd., 205 ITR 601 (Guj.) 73. The…

DCIT, New Delhi vs. M/S. Petronet Lng Ltd., New Delhi

Appeal of the assessee is allowed

ITA 4904/DEL/2015[2011-12]Status: DisposedITAT Delhi18 Mar 2021AY 2011-12

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…ome is not an allowable deduction for computing taxable income of any company. It was not incurred for the purpose of business. Reliance was placed on the following decisions by the ld. CIT (A):  Sri Venkata Satyancrayana Rice Mills Contractors Co. vs. CIT (223 ITR 101) SC.  CIT & Anr. vs. Infosys Technologies Ltd. (2014) 360 ITR 714.  Krishna Sahakari Sakhar Karkhana Ltd. v. CIT (229 ITR 577).  Surat Electricity Co. Ltd. vs. ACIT, 125 ITD 227 (Ahd.).  Addl. CIT vs. Rajasthan Spinning and Weaving Mills, 274 ITR 463 (Raj.)  Mehsana District Cooperative Milk Producers Union Ltd., 205 ITR 601 (Guj.) 73. The…

DCIT, New Delhi vs. M/S. Petronet Lng Ltd., New Delhi

Appeal of the assessee is allowed

ITA 4903/DEL/2015[2010-11]Status: DisposedITAT Delhi18 Mar 2021AY 2010-11

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…ome is not an allowable deduction for computing taxable income of any company. It was not incurred for the purpose of business. Reliance was placed on the following decisions by the ld. CIT (A):  Sri Venkata Satyancrayana Rice Mills Contractors Co. vs. CIT (223 ITR 101) SC.  CIT & Anr. vs. Infosys Technologies Ltd. (2014) 360 ITR 714.  Krishna Sahakari Sakhar Karkhana Ltd. v. CIT (229 ITR 577).  Surat Electricity Co. Ltd. vs. ACIT, 125 ITD 227 (Ahd.).  Addl. CIT vs. Rajasthan Spinning and Weaving Mills, 274 ITR 463 (Raj.)  Mehsana District Cooperative Milk Producers Union Ltd., 205 ITR 601 (Guj.) 73. The…

DCIT, New Delhi vs. M/S. Petronet Lng Ltd., New Delhi

Appeal of the assessee is allowed

ITA 4902/DEL/2015[2009-10]Status: DisposedITAT Delhi18 Mar 2021AY 2009-10

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…ome is not an allowable deduction for computing taxable income of any company. It was not incurred for the purpose of business. Reliance was placed on the following decisions by the ld. CIT (A):  Sri Venkata Satyancrayana Rice Mills Contractors Co. vs. CIT (223 ITR 101) SC.  CIT & Anr. vs. Infosys Technologies Ltd. (2014) 360 ITR 714.  Krishna Sahakari Sakhar Karkhana Ltd. v. CIT (229 ITR 577).  Surat Electricity Co. Ltd. vs. ACIT, 125 ITD 227 (Ahd.).  Addl. CIT vs. Rajasthan Spinning and Weaving Mills, 274 ITR 463 (Raj.)  Mehsana District Cooperative Milk Producers Union Ltd., 205 ITR 601 (Guj.) 73. The…

Rungta Mines Ltd., Kolkata vs. Principal CIT - 1, Kolkata

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

ITA 1326/KOL/2018[2013-14]Status: DisposedITAT Kolkata06 Jan 2021AY 2013-14

Bench: Sri J. Sudhakar Reddy & Smt. Madhumita Roy)

Section 143(3)Section 263Section 37(1)

…encies and society at large, thereby creating an atmosphere in which the business can succeed in a greater measure with the aid of such goodwill (CIT v. Madras Refineries Ltd. [2004]266 ITR 170, Sri Venkata Satyanarayna Rice Mill Contractors Co. v. CIT [1997] 223 ITR 101, Hindustan Petroleum Corporation Ltd Vs DC IT [(2005) 96 ITO 186 (Bom)] (iii) The amendment in the scheme of Section 37(1), which has been introduced with effect from 1st April 2015, cannot be construed as to disadvantage to the assessee in the period prior to this amendment. This disabling provision, as set out in Explanation 2 to Section 37(1),…

M/S. Veerabhadrappa Sangappa & Company, Sandur vs. The Assistant Commissioner of Income Tax, Circle- 1, Bellary

In the result appeal filed by assessee stands partly allowed

ITA 1054/BANG/2019[2013-14]Status: DisposedITAT Bangalore08 Dec 2020AY 2013-14

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiassessment Year : 2013–14

For Appellant: Shri Chythanya K.K, AdvocateFor Respondent: Shri Muzaffar Hussain, CIT
Section 145Section 28Section 5

…y of 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 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…

DCIT (Ltu), New Delhi vs. M/S. Gail (India) Ltd., New Delhi

Appeal is dismissed

ITA 4642/DEL/2013[1996-97]Status: DisposedITAT Delhi26 Oct 2020AY 1996-97

Bench: Sh. R. K. Panda & Ms Suchitra Kamble

Section 80HSection 80I

…of its business activities on the environment. Being so, the Ld. AR submitted that the aforesaid expenditure is liable to deduction under Section 37(1) of the Act. The Ld. AR relied upon the following decisions: i. Sri Venkata Satyanarayana Rice Mill vs. CIT 223 ITR 101 (SC) ii. CIT vs. D.T.T.D.C. Ltd. 350 ITR 1 (Del.) iii. CIT vs. Madras Refineries Ltd. 266 ITR 170 (Mad.) iv. CIT vs. India Radiator Ltd. 236 ITR 719 (Mad.) v. Gujarat Guardian Ltd. vs. DCIT ITA No. 3214/Del/2013 (Del. ITAT) vi. Airport Authority of India vs. CIT 340 ITR 407 (Del HC) 26. We have heard both the parties and perused all the relevant…

Gail (India) Ltd., New Delhi vs. DCIT-Ltu Delhi, New Delhi

Appeal is dismissed

ITA 4454/DEL/2013[1996-97]Status: DisposedITAT Delhi26 Oct 2020AY 1996-97

Bench: Sh. R. K. Panda & Ms Suchitra Kamble

Section 80HSection 80I

…of its business activities on the environment. Being so, the Ld. AR submitted that the aforesaid expenditure is liable to deduction under Section 37(1) of the Act. The Ld. AR relied upon the following decisions: i. Sri Venkata Satyanarayana Rice Mill vs. CIT 223 ITR 101 (SC) ii. CIT vs. D.T.T.D.C. Ltd. 350 ITR 1 (Del.) iii. CIT vs. Madras Refineries Ltd. 266 ITR 170 (Mad.) iv. CIT vs. India Radiator Ltd. 236 ITR 719 (Mad.) v. Gujarat Guardian Ltd. vs. DCIT ITA No. 3214/Del/2013 (Del. ITAT) vi. Airport Authority of India vs. CIT 340 ITR 407 (Del HC) 26. We have heard both the parties and perused all the relevant…

M/S. Rajasthan State Mines & Minerals Ltd., Jaipur vs. Addl.CIT, Range-6, Jaipur

In the result, appeal of the assessee is allowed

ITA 213/JPR/2020[2007-08]Status: DisposedITAT Jaipur04 Aug 2020AY 2007-08
For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri K.C. Gupta (JCIT)

…ainly result in benefit to the assessee’s business and, therefore, is an allowable expenditure under section 37(1) of the IT Act. He has relied upon the judgment of Hon’ble Supreme Court in case of Sri Venkata Satyanarayana Rice Mill Contractors Co. vs. CIT, 223 ITR 101 (SC). He has also referred to various decisions on this point including the decision of Hon’ble Madras High Court in case of CIT vs. Madras Refinery Ltd. 266 ITR 170 (Madras) and decisions of this Tribunal dated 25.08.2006 and 31.03.2010 in assessee’s own case for the assessment years 1993-94 and 2006-07 respectively. He has further submitted…

M/S Gogga Gurushanthiah & Bros., Hospet vs. ACIT, Bellary

In the result, appeal of the assessee is allowed

ITA 504/BANG/2014[2009-10]Status: DisposedITAT Bangalore29 May 2020AY 2009-10

Bench: Shri A. K. Garodia & Shri Pavan Kumar Gadaleassessment Year : 2009-10 Shri. Goggagurushantiah & Bros, Acit/Dcit, P. No.4, Mine Owners & Mineral Circle – I, Grinders Nehru Co-Op Colony, Vs. Bellary. Hospet. Pan : Aacfg 6895 M Appellant Respondent Assessee By : Shri.B. S. Balachandran, Advocate Revenue By : Shri. A. Ramesh Kumar, Jcit (Dr)(Itat), Bengaluru Date Of Hearing : 04.03.2020 Date Of Pronouncement : 29.05.2020 O R D E R Per A.K. Garodiathis Appeal Is Filed By The Assessee & The Same Is Directed Against The Order Of Learned Cit(A), Hubli, Dated 22.01.2014 For Assessment Year 2009-10. 2. The Grounds Raised By The Assessee Are As Under: The Learned Commissioner Of Income-Tax (Appeals), Hubli Is Not 1. Justified In Rejecting The Claim For Expenditure Amounting To Rs. 10,00,000/- Being The Amount Of Contribution Paid To The Deputy Commissioner, Bellary For Hampi Utsay. 2. The Learned Commissioner Of Income-Tax (Appeals), Hubli Is Not Justified In Treating The Expenditure Of Contribution Paid To The Deputy Commissioner, Bellary For Hampi Utsav As Not Incurred For The Purpose Of Business As Provided U/S 37 Of It Act 1961. Page 2 Of 4

For Appellant: Shri.B. S. Balachandran, AdvocateFor Respondent: Shri. A. Ramesh Kumar, JCIT (DR)(ITAT), Bengaluru
Section 37Section 37(1)

…an allowable expenditure under section 37 of the Income Tax Act, 1961. It was pointed out that in para 23 of this judgment, the judgment of Hon’ble Page 3 of 4 Apex court rendered in the case of Sri. Venkatasathyanarayana Rice Mills Contractors Co. Vs. CIT, 223 ITR 101 was noted and it was also noted that in that case, question arose was this 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 of the Income Tax Act, 1961, and it was held that such contribution is not against public policy and…

Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad vs. Mylan Laboratories Limited, Hyderabad

In the result, appeal of the assessee is partly allowed

ITA 12/HYD/2019[2014-15]Status: DisposedITAT Hyderabad13 Nov 2019AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Respondent: Sh. YVST Sai, D.R
Section 251Section 28Section 32Section 32(1)Section 37(1)Section 43(1)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘A’ BENCH : Hyderabad Before Smt. P. Madhavi Devi, Judicial Member And Shri S. Rifaur Rahman, Accountant Member ITA No. 2335/Hyd./2018 Assessment Year: 2014-15 Mylan Laboratories Limited. Vs. Dy.CIT, Circle 16(2) Hyderabad Hyderabad. PAN: AADCM3491M (Appellant) (Respondent) ITA No. 12/Hyd./2019 Assessment Year: 2014-15 Dy.CIT, Circle 16(2) vs. Mylan Laboratories Limited. 2nd Floor, B Block, Plot No.564/A/22, Road no.92 I.T.Towers, A.C.Guards, Jubilee Hills Masab Tank Hyderabad 500 034. Hyderabad & (Appellant) (Respondent) For Revenue: Sh. YVST Sai, D.R. For…

Mylan Laboratories Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad

In the result, appeal of the assessee is partly allowed

ITA 2335/HYD/2018[2014-15]Status: DisposedITAT Hyderabad13 Nov 2019AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Respondent: Sh. YVST Sai, D.R
Section 251Section 28Section 32Section 32(1)Section 37(1)Section 43(1)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘A’ BENCH : Hyderabad Before Smt. P. Madhavi Devi, Judicial Member And Shri S. Rifaur Rahman, Accountant Member ITA No. 2335/Hyd./2018 Assessment Year: 2014-15 Mylan Laboratories Limited. Vs. Dy.CIT, Circle 16(2) Hyderabad Hyderabad. PAN: AADCM3491M (Appellant) (Respondent) ITA No. 12/Hyd./2019 Assessment Year: 2014-15 Dy.CIT, Circle 16(2) vs. Mylan Laboratories Limited. 2nd Floor, B Block, Plot No.564/A/22, Road no.92 I.T.Towers, A.C.Guards, Jubilee Hills Masab Tank Hyderabad 500 034. Hyderabad & (Appellant) (Respondent) For Revenue: Sh. YVST Sai, D.R. For…

Nalwa Steel Power Limited, New Delhi vs. DCIT, Circle- 17(2), New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 451/DEL/2019[2014-15]Status: DisposedITAT Delhi10 Oct 2019AY 2014-15

Bench: Shri N.K. Billaiya & Shri Suchitra Kambleassessment Year: 2014-15

Section 144CSection 92BSection 92C

…uction 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 2: * . . 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 Vibhutigudda Mines Private Limited, Bellary vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the assessee’s appeal for Assessment Year 2012-13 is allowed

ITA 2843/BANG/2018[2012-13]Status: DisposedITAT Bangalore03 Jul 2019AY 2012-13

Bench: Shri N. V. Vasudevan & Shri Jason P Boazassessment Year : 2012-13 M/S. Vibhutigudda Mines Pvt. Ltd., Vs. The Assistant Commissioner No.60/356-A, “Modi Bhavan” Of Income Tax, Hospet Road, Allipur, Circle – 1, ‘Aaykar Bhavan’ Bellary – 583 105. Staff Road, Fort, Pan : Aaacv 5851 D Bellary – 583 103. Appellant Respondent Assessee By : Shri. B. S. Balachandran, Advocate Revenue By : Shri. A. Ramesh Kumar, Jcit Date Of Hearing : 07.05.2019 Date Of Pronouncement : 03.07.2019

For Appellant: Shri. B. S. Balachandran, AdvocateFor Respondent: Shri. A. Ramesh Kumar, JCIT
Section 143(1)Section 143(3)Section 14ASection 37(1)

…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…

M/S Sjvn Ltd. ( Formerly Satluj Jal Vidyut Nigam Limited), Shimla vs. DCIT, Circle, Shimla

ITA 835/CHANDI/2018[2014-15]Status: DisposedITAT Chandigarh28 Mar 2019AY 2014-15
For Appellant: Shri Rajiv Sood, CAFor Respondent: Smt.Mona Mohanti, CIT DR
Section 250(6)

…uction 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. C/T [1997] 223 ITR 101 2: . . . any contribution made by an assessce 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 instanc…

M/S Sjvn Ltd. ( Formerly Satluj Jal Vidyut Nigam Limited), Shimla vs. DCIT, Circle, Shimla

ITA 834/CHANDI/2018[2013-14]Status: DisposedITAT Chandigarh28 Mar 2019AY 2013-14
For Appellant: Shri Rajiv Sood, CAFor Respondent: Smt.Mona Mohanti, CIT DR
Section 250(6)

…uction 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. C/T [1997] 223 ITR 101 2: . . . any contribution made by an assessce 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 instanc…

ACIT, Circle, Shimla vs. M/S Satluj Jal Vidyut Nigam Limited, Shimla

ITA 827/CHANDI/2018[2014-15]Status: DisposedITAT Chandigarh28 Mar 2019AY 2014-15
For Appellant: Shri Rajiv Sood, CAFor Respondent: Smt.Mona Mohanti, CIT DR
Section 250(6)

…uction 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. C/T [1997] 223 ITR 101 2: . . . any contribution made by an assessce 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 instanc…

Nalwa Steel Power Limited, New Delhi vs. ACIT, Circle- 17(2), New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 7176/DEL/2017[2013-14]Status: DisposedITAT Delhi31 Dec 2018AY 2013-14

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 143(3)Section 144CSection 144C(5)Section 80ISection 92D

…uction 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 2: 30 * . . 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 insta…

Bengal NRI Complex Limited, Kolkata vs. DCIT, Circle - 6(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 2231/KOL/2017[2014-15]Status: DisposedITAT Kolkata30 Nov 2018AY 2014-15

Bench: "ी जे. सुधाकर रे"डी, लेखा सद"य एवं/And "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri J. Sudhakar Reddy, Am & Shri A. T. Varkey, Jm]

Section 135Section 36(1)Section 37(1)

…encies and society at large, thereby creating an atmosphere in which the business can succeed in a greater measure with the aid of such goodwill (CIT v. Madras Refineries Ltd. [2004]266 ITR 170, Sri Venkata Satyanarayna Rice Mill Contractors Co. v. CIT [1997] 223 ITR 101, Hindustan Petroleum Corporation Ltd Vs DCIT [(2005) 96 ITO 186 (Bom)] (iii) The amendment in the scheme of Section 37(1), which has been introduced with effect from 1st April 2015, cannot be construed as to disadvantage to the assessee in the period prior to this amendment. This disabling provision, as set out in Explanation 2 to Section 37(1),…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 467/DEL/2014[2009-10]Status: DisposedITAT Delhi17 Oct 2018AY 2009-10

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 467/Del/2014 (A.Y 2009-10)

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…advantageous in the long run, by creating goodwill and brand image. The Ld. AR further submitted that CSR expenses are allowable as revenue expenditure, as has been held in the following decisions: i) Sri Venkata Satyanarayana Rice Mill Contractors Co v. CIT: 223 ITR 101 ii) CIT v. Ranbaxy Laboratories Ltd. : ITA No.743 of 2008 iii) CIT v. Madras Refineries Ltd.: 266 ITR 170 (Mad.) iv) CIT v. Rajasthan Spinning and Weaving Mills Ltd.: 281 ITR 408 (Raj.), The Rajasthan High Court, while relying on its decision in the assessee’s own case reported at 274 ITR 465 decided the issue in favour of the assessee. v) The…