Swadeshi Cotton Mills Co. Ltd. v. CIT

ITO 10(2)(3), Mumbai vs. Astamed Healthcare (I P.Ltd, Mumbai

In the result this appeal by the revenue stands allowed for statistical purposes

Bench: Shri Shamim Yahya & Shri Ravish Sood

…the assessing officer to hold that the payment was made exclusively and wholly for the purposes of business. Reliance is placed on following Hon’ble Supreme Court decisions 1. Lakshmi Naryan Madanlal Vs CIT 86 ITR 439(SC), 2. Swadeshi cotton Mills Ltd Vs CIT 63 ITR 57(SC)” 9. We find that Ld. CIT-A has not at all addressed this aspect of assessing officer observation. Payment of service tax only is not conclusive satisfaction of AO’s, requirement. It is not the case that Ld. CIT-A himself verified that proper services were rendered by the concerned party to justify the commission payment. Hon’ble Apex Court in t…

DCIT Cen Cir 29, Mumbai vs. Yash Raj Films P. Ltd, Mumbai

…the services. Therefore, the assessee has failed to establish that additional specialized skilled services were rendered by the Director. The Ld. CIT(A) went on to rely upon the decision of the Hon’ble Supreme Court in the case of Swadeshi Cotton Mills Vs CIT 63 ITR 57. Decision of Madras High Court in the case of Mycol (Private) Ltd. Vs CIT 150 ITR 609. The Ld. CIT(A) finally concluded that remuneration paid to the directors are not wholly and exclusively for the production of three movies released during the year as the assessee could not establish the nexus between the specific services rendered by the directo…

Yash Raj Films Pvt. Ltd., Mumbai vs. A.C.I.T. Central Circle 29, Mumbai

…the services. Therefore, the assessee has failed to establish that additional specialized skilled services were rendered by the Director. The Ld. CIT(A) went on to rely upon the decision of the Hon’ble Supreme Court in the case of Swadeshi Cotton Mills Vs CIT 63 ITR 57. Decision of Madras High Court in the case of Mycol (Private) Ltd. Vs CIT 150 ITR 609. The Ld. CIT(A) finally concluded that remuneration paid to the directors are not wholly and exclusively for the production of three movies released during the year as the assessee could not establish the nexus between the specific services rendered by the directo…

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

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

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)

…its borrowed loans.” The A.O. observed that the assessee’s contentions cannot be accepted as these expenditure are non-recurring in-nature. The A.O. relied on the decision of Hon’ble Supreme Court in the case of Swadeshi Cotton Mills Co. Ltd. v. CIT, (1967) 63 ITR 65(SC) wherein it was held that compensation payable for breach of contract was capital expenditure. The AO held that the assessee is a firm engaged in the business of builder and developers. The expenses incurred by the assessee firm regarding the said payment of the compensation is not pertaining to the assessee's said real estate business. The comp…

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

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)

…its borrowed loans.” The A.O. observed that the assessee’s contentions cannot be accepted as these expenditure are non-recurring in-nature. The A.O. relied on the decision of Hon’ble Supreme Court in the case of Swadeshi Cotton Mills Co. Ltd. v. CIT, (1967) 63 ITR 65(SC) wherein it was held that compensation payable for breach of contract was capital expenditure. The AO held that the assessee is a firm engaged in the business of builder and developers. The expenses incurred by the assessee firm regarding the said payment of the compensation is not pertaining to the assessee's said real estate business. The comp…

M/S. Stock Traders Pvt. Ltd., Mumbai vs. ACIT Cir 2(3), Mumbai

In the result, the appeal for the assessment year 1995-96 is dismissed

…ere payment by itself would not entitle an assessee for deduction of the said expenditure unless the same was proved to be paid for commercial considerations. The onus of proof at all relevant times rest upon the assessee. In the case of Swadeshi Cotton Mills 63 ITR 57 (SC) the Apex ITA Nos.2802, 2803 & 2088/Mum/03 Assessment years: 1995-96 to 97-98 Page 10 of 16 Court has held that additional commission to Directors in addition to monthly remuneration for extra commercial reason is not allowable as deduction. Under the circumstances and facts of the case I hold that no services have been rendered by the PAG as…

M/S. Stock Traders Pvt. Ltd., Mumbai vs. ACIT Cir 2(3), Mumbai

In the result, the appeal for the assessment year 1995-96 is dismissed

…ere payment by itself would not entitle an assessee for deduction of the said expenditure unless the same was proved to be paid for commercial considerations. The onus of proof at all relevant times rest upon the assessee. In the case of Swadeshi Cotton Mills 63 ITR 57 (SC) the Apex ITA Nos.2802, 2803 & 2088/Mum/03 Assessment years: 1995-96 to 97-98 Page 10 of 16 Court has held that additional commission to Directors in addition to monthly remuneration for extra commercial reason is not allowable as deduction. Under the circumstances and facts of the case I hold that no services have been rendered by the PAG as…