Srikakollu Subba Rao & Co. and Ors. v. Union of India and Other

DCIT Cen Cir 1(4), Mumbai vs. Grasim Industries Ltd, Mumbai

In the result, appeal of the revenue and the assessee are partly allowed, and the additional ground of the assessee is dismissed

Bench: Shri Narendra Kumar Billaiya & Shri Anikesh Banerjee

…of section 43B of the Act. The assessee claimed a deduction of these amounts by placing reliance upon the ITAT decisions in own case for earlier years and decision of Hon'ble Andhra Pradesh High Court in the case Srikakollu Subbarao & Co. vs. Union of India (173 ITR 708) and contended that no disallowance under section 43B of the Act can be made in relation to liabilities that have not become payable under the relevant law, even though the same has accrued in the year under consideration. 2. The Ld. DR argued that the Ld. AO rejected the contention of the Assessee by placing reliance upon the findings given in…

Grasim Industries Limited, Mumbai vs. DCIT, CC-1(4), Mumbai

In the result, appeal of the revenue and the assessee are partly allowed,

Bench: Shri Narendra Kumar Billaiya & Shri Anikesh Banerjee

…of section 43B of the Act. The assessee claimed a deduction of these amounts by placing reliance upon the ITAT decisions in own case for earlier years and decision of Hon'ble Andhra Pradesh High Court in the case Srikakollu Subbarao & Co. vs. Union of India (173 ITR 708) and contended that no disallowance under section 43B of the Act can be made in relation to liabilities that have not become payable under the relevant law, even though the same has accrued in the year under consideration. 2. The Ld. DR argued that the Ld. AO rejected the contention of the Assessee by placing reliance upon the findings given in…

Aditya Birla Fashion and Retail Ltd., Mumbai vs. ADIT, CPC, Bengaluru

In the result, appeal of assessee stands dismissed

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.1643/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2020-21) Aditya Birla Fashion & बिधम / Acit, Cpc, Retail Ltd. Piramal Agastya Bengaluru, Vs. Corporate Park, Building A, Karnataka-560500. 4Th & 5Th Floor, L.B.S. Road, Kurla-Mumbai-400070. स्थधयी लेखध सं/.जीआइआर सं/.Pan/Gir No. : Aaecp2371C (अपीलार्थी / Appellant) .. (प्रत्यर्थी / Respondent)

…s and allowable as per the decision of the Hon’ble Supreme Court in the case of Bharat Earth movers Ltd. Vs. CIT [245 ITR 428 (SC)]. The assessee also referred to the decision of the Hon’ble Andhra Pradesh High Court in the case of Srikakollu Shubbarao & Co. (173 ITR 708), wherein the Hon’ble High Court has held that section 43B of the Act applies to statutory payments which are payable; and the Ld. AR also referred to the decision of this Tribunal in assessee’s predecessor-company for A.Y. 2008-09 (ITA No. 3178/Mum/2012) wherein the Tribunal had held that leave salary provision is not disallowable u/s. 43B(f) as…

DCIT-3(4), Mumbai vs. M/S Idbi Bank Ltd, Mumbai

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

Bench: Shri Kuldip Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bledcit- 3(4) V. M/S. Idbi Bank Ltd 29Th Floor, Center-1 Central Processing Unit (Tds) World Trade Center, Cuffe Parade Plot No. 82/83, Elemach Bldg Mumbai- 400005 Road No. 7, Street No. 15 Midc, Andheri (E) Mumbai- 400093 Pan: Aabci8842G (Appellant) (Respondent) M/S. Idbi Bank Ltd V. Acit/Dcit-Ltu 22Nd Floor, Idbi Tower 29Th Floor, Centre No. 1 Wtc Complex, Cuffe Parade World Trade Centre, Cuffe Parade Mumbai- 400005 Mumbai- 400005 Pan: Aabci8842G (Appellant) (Respondent)

…hat the explanation to Sec. 43B referring to the amendment of the word any sum payable is applicable only for clause (a) of Sec.43B which means that it is not applicable for clause (f).Hon'ble Andhra Pradesh High Court in the case of Srikakollu Shubbarao & Co.173 ITR 708 has held that in order to apply the provisions of Sec. 43B not only should be the liability to pay the tax or duty be incurred in the accounting year but also should be statutorily payable in the accounting year. In our considered opinion, the provision for leave salary is not a statutory liability but only a contractual liability which is payabl…

M/S Avacend Solution Pvt. Ltd, Mumbai vs. I.T.O. - 9(1)(4), Mumbai

In the result, this appeal by the assessee is allowed for statistical purpose

Bench: Shri Shamim Yahya (Am) & Shri Pavan Kumar Gadale (Jm)

…se. 5. However, Ld.CIT(A) confirmed the addition choosing not to follow Hon’ble jurisdictional High Court, but referred to Hon’ble Andhra Pradesh High Court in the case of Srikakollu Subba Rao & Co & Ors v. Union of India & Ors (1988) 71 CTR (AP) 34 : (1988) 173 ITR 708 (AP). 6. Against this order, assessee is in appeal before us. 7. We have heard the Ld. DR and perused the record. We find that Ld.CIT(A) without mentioning any reason has chosen not to follow Hon’ble Bombay High Court on the issue. In the said Hon’ble Bombay High Court decision it was held that “having perused the aforesaid decisions, we are cl…

DCIT - 4(2)(2), Mumbai vs. Gbtl Ltd. (Formerly Known As M/S. Grasim Bhiwani Textiles Ltd.), Mumbai

In the result, Revenue’s appeal is partly allowed

Bench: Shri Shamim Yahya, Am & Amarjit Singh, Jm Dcit-4(2)(2) M/S. Gbtl Ltd. Room No.640, 6Th Floor (Formerly Known As M/S. Grasim Aaykar Bhawan, Bhiwani Textiles Ltd.) Vs. M.K.Road 409, Cotton Exchange Building Mumbai-400 020 Kalbadevi Road, Mumbai-400 002 Pan/Gir No. Aaccg9347F (Appellant) : (Respondent)

…hat the Explanation to Sec. 43B referring to the amendment of the word any sum payable is applicable only for clause (a) of Sec.43B which means that it is not applicable for clause (f).Hon'ble Andhra Pradesh High Court in the case of Srikakollu Shubbarao & Co.173 ITR 708 has held that in order to apply the provisions of Sec. 43B not only be the liability to pay the tax or duty be incurred in the accounting year but also should be statutorily payable in the accounting year. In our considered opinion, the provision for leave salary is not a statutory liability but only a contractual liability which is payable only…

Asst CIT(Ltu) 1, Mumbai vs. Aditya Birla Nuvo Ltd, Mumbai

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

Bench: Shri Vikas Awasthy & Shri N.K.Pradhanaditya Birla Nuvo Limited, A4, Aditya Birla Center, S.K.Ahire Marg, Worli, Mumbai 400 020 Pan:Aaaci 1747H ...... Appellant Vs. Addl. Commissioner Of Income Tax- Ltu-1 World Trade Centre, 29Th Floor, Centre -1, Cuffe Parade, Mumbai 400 005. ..... Respondent Asstt. Commissioner Of Income Tax- Ltu-1 World Trade Centre, 29Th Floor, Centre -1, Cuffe Parade, Mumbai 400 005. ..... Appellant

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K ”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI N.K.PRADHAN, ACCOUNTANT MEMBER Aditya Birla Nuvo Limited, A4, Aditya Birla Center, S.K.Ahire Marg, Worli, Mumbai 400 020 PAN:AAACI 1747H ...... Appellant Vs. Addl. Commissioner of Income Tax- LTU-1 World Trade Centre, 29th Floor, Centre -1, Cuffe Parade, Mumbai 400 005. ..... Respondent Asstt. Commissioner of Income Tax- LTU-1 World Trade Centre, 29th Floor, Centre -1, Cuffe Parade, Mumbai 400 005. ..... Appellant Vs. Aditya Birla Nuvo Limited, A4, Aditya Birla Center, S.K.Ahire Marg, Worli, Mumba…

Addl Cirt G 3(2), Mumbai vs. Aditya Birla Nuvo Ltd, Mumbai

Appeal of the assessee is partly allowed

…hat the explanation to Sec. 43B referring to the amendment of the word any sum payable is applicable only for clause (a) of Sec.43B which means that it is not applicable for clause (f).Hon’ble Andhra Pradesh High Court in the case of Srikakollu Shubbarao & Co.173 ITR 708 has held that in order to apply the provisions of Sec. 43B not only should be the liability to pay the tax or duty be incurred in the accounting year but also should be statutorily payable in the accounting year. In our considered opinion, the provision for leave salary is not a statutory liability but only a contractual liability which is payabl…

Aditya Birla Nuvo Ltd ( Formerly Known As Indian Rayon and Industries Ltd), Mumbai vs. Addl CIT RG 3(2), Mumbai

…hat the explanation to Sec. 43B referring to the amendment of the word any sum payable is applicable only for clause (a) of Sec.43B which means that it is not applicable for clause (f).Hon’ble Andhra Pradesh High Court in the case of Srikakollu Shubbarao & Co.173 ITR 708 has held that in order to apply the provisions of Sec. 43B not only should be the liability to pay the tax or duty be incurred in the accounting year but also should be statutorily payable in the accounting year. In our considered opinion, the provision for leave salary is not a statutory liability but only a contractual liability which is payabl…

Addl CIT 3(2), Mumbai vs. Aditya Birla Nuvo Ltd ( Formerly Known As Indian Rayon & Industries Ltd), Mumbai

…hat the explanation to Sec. 43B referring to the amendment of the word any sum payable is applicable only for clause (a) of Sec.43B which means that it is not applicable for clause (f).Hon’ble Andhra Pradesh High Court in the case of Srikakollu Shubbarao & Co.173 ITR 708 has held that in order to apply the provisions of Sec. 43B not only should be the liability to pay the tax or duty be incurred in the accounting year but also should be statutorily payable in the accounting year. In our considered opinion, the provision for leave salary is not a statutory liability but only a contractual liability which is payabl…