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

Mumbai Sez P.Ltd, Mumbai vs. DCIT Cen Cir 39, Mumbai

In the result the appeal of the assessee is partly allowed

ITA 3429/MUM/2012[2007-08]Status: DisposedITAT Mumbai11 Jul 2018AY 2007-08

Bench: Shri Pawan Singh & Shri Rajesh Kumarmumbai Sez Limited Dcit, Cc-39. 1St Floor, Jai Centre, 34, P D Mello Road, Vs. Opp. Red Gate, Masjid, Mumbai-400009. Pan: Aabcg2739C Appellant Respondent Appellant By : Shri Madhur Agarwal (Ar) Respondent By : Shri Kumar Sanjay (Cit-Dr) Date Of Hearing : 23.05.2018 Date Of Pronouncement : 11.07.2018 Order Under Section 254(1)Of Income Tax Act Per Pawan Singh;

For Appellant: Shri Madhur Agarwal (AR)For Respondent: Shri Kumar Sanjay (CIT-DR)
Section 143(3)Section 14ASection 254(1)Section 263

…the assessee is establishing SEZ. And it was rightly allowed by assessing officer. It was submitted that Social welfare expenses are allowable expenses in view of the Supreme Court decision in Sri Venkata Satyanarayan Rice Mill Contractors Co Vs CIT [1997] 223 ITR 101 (SC) and Madras High Court in CIT Vs Velumanickum Lodge [2009] 317 ITR 338 (Mad). In support of his submission related with the validity of order under section 263 the ld AR for the assessee relied on the decision of Hon’ble Bombay High Court in CIT Vs Gabriel India Ltd [1993]203 ITR 108 (Bom), Delhi High Court in CIT Vs Leisure Wear Export L…

State Bank of India, Mumbai vs. ACIT Cir 2(2)

In the result, appeal of the revenue is dismissed

ITA 4736/MUM/2010[1999-2000]Status: DisposedITAT Mumbai31 Jan 2018AY 1999-2000

Bench: Shri G.S. Pannu & Shri Pawan Singhstate Bank Of India Acit Circle (2)(2), Financial Reporting, Compliance & Mumbai. Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent) Acit Circle (2)(2), State Bank Of India Mumbai. Financial Reporting, Compliance & Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent)

For Respondent: Shri R.P. Meena (CIT-DR)
Section 14ASection 195Section 253Section 254(1)Section 36(1)(viia)Section 40Section 43D

…pages 432 to 8 of the compilation. Nuclear Power Corporation of India Ltd (ITA No. 336/Mum/1999 (page 29 to 32 of compilation. The ld counsel also placed reliance on the following judicial decision in this regard. Shri Venkatsatyanarayana Rice Mills vs CIT [223 ITR 101](SC) CIT versus Indian radiators Ltd 436 ITR 719 Madras CIT versus Emiici Engineering Ltd 242 ITR 86 CIT versus Travancore Cochin chemicals Ltd 243 ITR 284 33. The ld DR on the other hand, contended that this facility was restricted to only officers and not employees, hence, it was arbitrary and unreasonable, hence, assessee being a governmen…

ACIT Cir 2(2), Mumbai vs. State Bank of India, Mumbai

In the result, appeal of the revenue is dismissed

ITA 4598/MUM/2010[1999-00]Status: DisposedITAT Mumbai31 Jan 2018AY 1999-00

Bench: Shri G.S. Pannu & Shri Pawan Singhstate Bank Of India Acit Circle (2)(2), Financial Reporting, Compliance & Mumbai. Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent) Acit Circle (2)(2), State Bank Of India Mumbai. Financial Reporting, Compliance & Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent)

For Respondent: Shri R.P. Meena (CIT-DR)
Section 14ASection 195Section 253Section 254(1)Section 36(1)(viia)Section 40Section 43D

…pages 432 to 8 of the compilation. Nuclear Power Corporation of India Ltd (ITA No. 336/Mum/1999 (page 29 to 32 of compilation. The ld counsel also placed reliance on the following judicial decision in this regard. Shri Venkatsatyanarayana Rice Mills vs CIT [223 ITR 101](SC) CIT versus Indian radiators Ltd 436 ITR 719 Madras CIT versus Emiici Engineering Ltd 242 ITR 86 CIT versus Travancore Cochin chemicals Ltd 243 ITR 284 33. The ld DR on the other hand, contended that this facility was restricted to only officers and not employees, hence, it was arbitrary and unreasonable, hence, assessee being a governmen…

T.D. Power Systems Limited, Bangalore vs. DCIT, Bangalore

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

ITA 607/BANG/2016[2011-12]Status: DisposedITAT Bangalore22 Dec 2017AY 2011-12

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raom/S.T D Power Systems Ltd. Plot Nos.27, 28 & 29, Kiadb Industrial Area, Dobbspet, Bengaluru-562 111 … Appellant Pan:Aabct 0360 J Vs. Deputy Commissioner Of Income-Tax Ltu, Bengaluru … Respondent

For Appellant: Shri Satyanarayana Murthy, CAFor Respondent: Shri S.Nambirajan, Addl.CIT(DR)
Section 37

…le expenditure u/s 37 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short]. In this connection, reliance was placed on the decision of the Hon’ble Supreme Court in the case of Sri Venkata Satyanaraya Rice Mills Contractors Co. vs. CIT (223 ITR 101). The AO disallowed the claim. 4. On appeal before the CIT(A), the same came to be confirmed as the expenditure was incurred outside India. 5. We heard rival submissions and perused the material on record. The issue in the present appeal is whether the amount of contribution made to Red Cross Society, Japan is an allowable expenditure while com…

Rajasthan State Mines & Minerals Ltd., Jaipur vs. ACIT, Jaipur

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

ITA 253/JPR/2015[2007-08]Status: DisposedITAT Jaipur30 May 2017AY 2007-08

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh dqy Hkkjr] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 253/JP/2015 fu/kZkj.k o"kZ@Assessment Year : 2007-08. cuke M/s Rajasthan State Mines, & Minerals The Assistant Commissioner Vs. Ltd., C-89-90, Lal Kothi, Janpath, of Income Tax, Circle-6, Jaipur. Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AAACR 7857 H vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 295/JP/2015 fu/kZkj.k o"kZ@Assessment Year : 200…

I.T.O WD - 7(3), Kolkata. vs. M/S Shalini Properties & Developers Private Limited., Kolkata

In the result the appeal preferred by the revenue is dismissed

ITA 171/KOL/2013[2009-10]Status: DisposedITAT Kolkata28 Feb 2017AY 2009-10

Bench: Hon’Ble Sri M.Balaganesh, Am & Shri Partha Sarathi Chaudhury, Jm] I.T.A No. 171/Kol/2013 Assessment Year : 2009-10 I.T.O., Ward-7(3) -Vs.- M/S. Shalini Properties & Developers Kolkata Pvt. Limited., Kolkata [Pan : Aahcs 7896 N] (Respondent) (Appellant) For The Appellant : Shri Arup Kumar Sinha, Cit For The Respondent : Shri Manoj Kataruka, Advocate

For Appellant: Shri Arup Kumar Sinha, CITFor Respondent: Shri Manoj Kataruka, Advocate
Section 143(3)Section 301Section 37(1)

…009-10 Minister Fund for obtaining permit for export of gram is an allowable expense. This decision of Hon’ble Madhya Pradesh High Court has been approved by Hon’ble Supreme Court in the case of Sri Venkata Satyanarayana Rice Mill Contractors Co. v CIT (1997) 223 ITR 101. In that case the Hon’ble Supreme Court has held as follows :- “ Business expenditure – Contribution made to District Welfare Fund – The correct test is allowability of such expenditure is commercial expediency and not whether it was compulsory or not – Contribution was not illegal or opposed to public policy but was for the benefit of the genera…

M/S. Hindustan Petroleum Corporation Ltd., Mumbai vs. Addl. CIT. RG. - 1(1), Mumbai

In the result, appeal of the Revenue is dismissed

ITA 2736/MUM/2007[2003-2004]Status: DisposedITAT Mumbai23 Nov 2016AY 2003-2004

Bench: Shri R.C. Sharma & Shri Pawan Singh

For Respondent: Shri Rahul Raman, (CIT-DR)
Section 14ASection 253Section 32(1)(ii)Section 35Section 35ASection 36(1)(iii)Section 37(1)Section 80MSection 86

…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 Satuanartuma 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 of…

B.K. Khare & Company, Mumbai vs. Asst CIT 11(Hq), Mumbai

In the result, appeal of the assessee is allowed

ITA 4500/MUM/2014[2009-10]Status: DisposedITAT Mumbai24 Oct 2016AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.4500/Mum/2014 (निर्धारण वषा / Assessment Year :2009-2010) M/S. B.K. Khare & Vs. Acit (11) (2), Mumbai Company, 706-707, Sharda Chambers New Marine Lines, Mumbai – 400 0201 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaafb0265E (अऩीराथी /Appellant) (प्रत्मथी / Respondent) ..

Section 143(3)Section 37(1)Section 80

…ourt held that the approach needs to be that of a practical and prudent businessman rather than from the Revenue's strict classification of a right. Relying on the decision of the Supreme Court in the case of Sri Venkata Satyanarayana Rice Mill Contractor Co (223 ITR 101) it held that the correct test is that of commercial expediency. In that case' the Supreme Court had held that any contribution made by the assessee to a fund 5 B. Khare And Company which is directly connected or related to the carrying on of the assessee's business or which results in benefit to the assessee's business, has to be regarded as a…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…Corp Ltd. ITA Nos. 1545/Del/2015 and 2424/Del/2015 (AY 2010-11) ITA No. 1609/Del/2016 and 914/Del/2016 (AY 2011-12) Page 413 of 484 Meeting Social Responsibilities, which have indirect business nexus: i. VenkataSatyanarayana Rice Mill Contractors Co V. CIT: 223 ITR 101 (SC) ii. CIT Vs. Chemicals and Plastics India Ltd. 292 ITR 115 (Mad.) iii. CIT v. Madras Refineries Ltd.: 266 ITR 170 (Mad) iv. CIT v. Chennai Petroleum Corpn. Ltd: T.C.(A).No.57 of 2006 (Mad.) v. CIT vsJayendrakumarHiralal: 327 ITR 147 (Guj.) vi. CIT vs. Karnataka Financial Corporation: 326 ITR 355 (Kar.) vii. Infosys Technologies Ltd. v. JCIT:…

Ramesh Builders, Mumbai vs. ITO 12(1)(1), Mumbai

In the result, the appeal filed by the assessee-Ramesh Builders(India) in ITA N0

ITA 1798/MUM/2012[2007-08]Status: DisposedITAT Mumbai27 Jul 2016AY 2007-08

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1797/Mum/2012 ("नधा"रण वष" / Assessment Year : 2007-08) Ramesh Builders (India), Income Tax बनाम/ 9, Dhiraj Chambers, Officer,12(1)(2),Aayakar V. 9, Hazarimal Somani Marg, Bhavan,M.K. Road, Fort,Mumbai – 400001. Mumbai. "थायी लेखा सं./Pan : Aaafr4655E .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Dr. Mukesh Jain,DR
Section 143(3)Section 45(4)

…ntended by the assessee that the same is allowable u/s 37(1) of the Act. The assessee placed reliance on the following decisions:- (i) Jugal Kishore Baldev Sahai v. CIT (1967) 63 ITR 228. (ii) Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT (1977) 223 ITR 101. (iii) CIT v. Walchand & Co. (P) Ltd. (1967) 65 ITR 381 (iv) Sasson J. David & Co. (P) Ltd. v. CIT (1979) 118 ITR 261 (v) CIT v. Birla Cotton Spg. & Wvg.Mills (1972) 82 ITR 166 (vi)S.A. Builders Ltd. v. CIT (2007) 288 ITR 1 ITA 1797/Mum/2012 & 40 ITA 1798/Mum/2012 The A.O. went through the submission of the assessee and distinguished the case…

Ramesh Builders (India), Mumbai vs. ITO 12(1)(2), Mumbai

In the result, the appeal filed by the assessee-Ramesh Builders(India) in ITA N0

ITA 1797/MUM/2012[2007-08]Status: DisposedITAT Mumbai27 Jul 2016AY 2007-08

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1797/Mum/2012 ("नधा"रण वष" / Assessment Year : 2007-08) Ramesh Builders (India), Income Tax बनाम/ 9, Dhiraj Chambers, Officer,12(1)(2),Aayakar V. 9, Hazarimal Somani Marg, Bhavan,M.K. Road, Fort,Mumbai – 400001. Mumbai. "थायी लेखा सं./Pan : Aaafr4655E .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Dr. Mukesh Jain,DR
Section 143(3)Section 45(4)

…ntended by the assessee that the same is allowable u/s 37(1) of the Act. The assessee placed reliance on the following decisions:- (i) Jugal Kishore Baldev Sahai v. CIT (1967) 63 ITR 228. (ii) Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT (1977) 223 ITR 101. (iii) CIT v. Walchand & Co. (P) Ltd. (1967) 65 ITR 381 (iv) Sasson J. David & Co. (P) Ltd. v. CIT (1979) 118 ITR 261 (v) CIT v. Birla Cotton Spg. & Wvg.Mills (1972) 82 ITR 166 (vi)S.A. Builders Ltd. v. CIT (2007) 288 ITR 1 ITA 1797/Mum/2012 & 40 ITA 1798/Mum/2012 The A.O. went through the submission of the assessee and distinguished the case…

Commissioner of Income Tax-VI vs. M/S. Yum Restaurants (I) Pvt. Ltd

ITA/614/2014HC Delhi30 Jan 2015
Section 260ASection 37

…t was of commercial expediency. As long as the payment is made for the purposes of the business, and not by way of penalty for infraction of any law, the same would be allowable as a deduction (Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT [1997] 223 ITR 101 (SC)). The commercial expediency of a businessman’s decision to incur a particular expenditure cannot be tested on the touchstone of strict legal liability to incur such expenditure. Such decisions are to be taken from a business point of view and have to be respected by the authorities, regardless of the fact that it may appear, to the latter, t…

Commissioner of Income Tax-VI vs. M/S Yum Restaurants (I) Pvt. Ltd

ITA-614/2014HC Delhi30 Jan 2015
Section 260ASection 37

…t was of commercial expediency. As long as the payment is made for the purposes of the business, and not by way of penalty for infraction of any law, the same would be allowable as a deduction (Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT [1997] 223 ITR 101 (SC)). The commercial expediency of a businessman’s decision to incur a particular expenditure cannot be tested on the touchstone of strict legal liability to incur such expenditure. Such decisions are to be taken from a business point of view and have to be respected by the authorities, regardless of the fact that it may appear, to the latter, t…

CIT vs. Desiccant Rotors International Pvt Ltd

ITA/572/2011HC Delhi11 Jul 2011

Bench: We Reproduce The Substantial Questions Of Law, Which Are To Be Answered, We Deem It Appropriate To State The Facts & Circumstances Under Which These Questions Of Law Arise For Consideration. The Respondent-Assessee Was Incorporated In

Section 37(1)

…23. It was an expenditure which was motivated purely by commercial purpose and would be allowable under Section 37(1) of the Act as held by the Apex Court in the case of Sri Venkata Satya Narayana Rice Mill Contractor Co. Vs. Commissioner of Income Tax [223 ITR 101]. 24. As regards consent judgment passed by the US District Court in accordance with Clause 2 read with Clause 3 of the Settlement Agreement, the law is well-settled by the Supreme Court in the case of Pulavathi Venkata Subba Rao Vs. Valluri [AIR 1967 SC 591], wherein the Court held that: “A compromise decree is not a decision of the Co…