TR 212 (Guj); III. CIT vs. Indian Commercial Co. P. Ltd. (1977) 106 ITR 465 (Bom.); IV. CIT v. Murari Lal Ahuja & Sons.

177 ITR 228High Court1989#13654 most cited

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2026.

Sections most often in play

Section 142(1)Section 143(1)(a)Section 250(6)Section 270A Section 37

Judgments citing TR 212 (Guj); III. CIT vs. Indian Commercial Co. P. Ltd. (1977) 106 ITR 465 (Bom.); IV. CIT v. Murari Lal Ahuja & Sons.

AXA PARENTERALS LIMITED,UP vs. ASSESSMENT UNIT, DELHI

ITA 5040/DEL/2025[2020-21]Status: DisposedITAT Delhi28 Jan 2026AY 2020-21

Bench: Shris. Rifaur Rahman & Shri Raj Kumar Chauhan

Section 142(1)Section 143(1)(a)Section 250Section 250(6)Section 270Section 37Section 37(1)

…b State Electricity Board for delay in delivery of goods has been held deductible because the same was not on account of infraction of any law]. (3) CIT v. S.A. Builders P. Ltd., (2008) 299 ITR 88, 90, 91 (Pun), following CIT v Murari Lal Ahuja & Sons, (1989) 177 ITR 228 (Punj); CIT v. indo Asian Switch gears (P) Ltd., (1196) 222, ITR (Punj) [compensation for breach of contractual obligations held deductible) (4) Hind Mercantile Corpn. Ltd. v. CIT [1963) 49 ITR 23 (Mad.). Damages for Breach of contract for export of goods before declaration of export policy of the Government are deductible. 6 AXA Parenterals Lt…

DCIT CENTRAL CIRCLE-27 , NEW DELHI vs. BRAHMA CITY PVT LTD, NEW DELHI

In the result, the appeal of the Revenue is dismissed

ITA 9240/DEL/2019[2014-15]Status: DisposedITAT Delhi14 Jul 2022AY 2014-15

Bench: Shri Challa Nagendra Prasad & Shri Pradip Kumar Kedia

For Appellant: Shri Amaresh Singh, CIT-D.RFor Respondent: Shri Salil Kapoor, Adv

Section 143(3)Section 263

…nal in nature. " 5) In Standard Batteries Ltd. v. Commissioner of Income-Tax 211 ITR 444, the Supreme Court followed and reiterated the view taken in Prakash Cotton Mills P. Ltd.'s case (supra). In Commissioner of Income-Tax v. Murari Lai Ahuja and sons (P&H) 177 ITR 228, while considering the case of damages for breach of contract, the Punjab & Haryana High Court held that if the amount is expended as payment on account of compensation for breach of contract, the same shall be treated as commercial expediency and the loss incurred thereon shall be exigible to be deducted from the income of the assessee. In the s…

M/S. TRIUNE ENERGY PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

ITA 95/DEL/2017[2012-13]Status: DisposedITAT Delhi17 Dec 2019AY 2012-13

Bench: Shri R.K.Panda & Shri Kuldip Singh

For Appellant: Sh. Gautam Jain, Adv. Sh. Lalit Mohan, CAFor Respondent: Shri Saras Kumar, Sr.DR

Section 2(22)(e)Section 36Section 36(1)Section 36(2)

…mount is wholly compensatory in nature and where the amount is composite which contains elements of compensation and penalty then it is only the compensatory part which is allowable as a deduction and not the penal part. This Court in Murari Lal Ahuja's case (177 ITR 228 (P&H) held that where an assessee, engaged in the business of sale of cotton, having failed to fulfil the contract for supply of cotton to certain mills, settled the deal by paying a sum as compensation, the amount of compensation paid by the assessee was held to be an allowable deduction. Similar view was expressed by a Division Bench of this Co…

DCIT CEN CIR 23 CEN RG -7, MUMBAI vs. THAKUR ESTATE DEVELOPMENT P.LTD, MUMBAI

In the result, the appeal is partly allowed

ITA 3184/MUM/2014[2011-12]Status: DisposedITAT Mumbai09 Feb 2018AY 2011-12

Bench: Shri D.T. Garasia () & Shri N.K. Pradhan () Assessment Year: 2011-12 Dcit-23 M/S Thakur Estate Room No. 409, 4Th Floor, Development Pvt. Ltd. Vs. Aayakar Bhavan, M.K. Road, Ashok Nagar, Churchgate, Kandivali (E) Mumbai-400020 Mumbai-400101 Pan No. Aaact5599A Appellant Respondent Revenue By : Mr. Manjunatha Swamy, Cit-Dr Assessee By : Mr. Rajan.R. Vora, Ar Date Of Hearing : 13/11/2017 Date Of Pronouncement : 09/02/2018

For Appellant: Mr. Rajan.R. Vora, ARFor Respondent: Mr. Manjunatha Swamy, CIT-DR

Section 143(3)

…or breach of contract as in the present case is an allowable expenditure u/s 37 of the Act. Reliance is placed by him on the decision in CIT v. Hans Machoo & Co. 247 ITR 79 (Del), CIT v. SA Builder Pvt. Ltd. 299 ITR 88 (P&H) and CIT v. Murari Lal Ahuja & Sons 177 ITR 228 (P&H). 7. We have heard the rival submissions and perused the relevant materials on record. The reasons for decision are given below. The facts in detail have been delineated hereinbefore. We mention below the crucial facts for adjudication of the present case: a) MIDC staked a claim on certain portion of the land and also another person with the…

FIRDOSH NOSHIR ANKLESARIA,MUMBAI vs. ITO 17(2)(4), MUMBAI

In the result, these appeals filed by the Assessee are partly allowed

ITA 5490/MUM/2015[2008-09]Status: DisposedITAT Mumbai11 Aug 2016AY 2008-09

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2008-09 & Assessment Year: 2009-10 Firdosh Noshir Anklesaria Ito 17(2)(4) 5 Gr Floor, Kaka Bldg, Piramal Chambers, बनाम/ 649 Firdoshi Rd. Dadar R.No. 220 4Th Floor, Vs. Mumbai-400014 Lalbaug, Mumbai-40013 (Appellant) (Respondent ) P.A. No.Aaapa6428N Appellant By Shri Neel Khandelwal (Ar) Revenue By Shri A.K. Dhondial (Dr)

Section 133(6)

…Haryana High Court, therefore, allowed a claim for compensation for breach of contractual obligation in CIT v. S.A. Builders P.Ltd. 299 ITR 88(P&H) after review of the case law on the subject and following its own decision in CIT v. Murari Lal Ahuja and Sons 177 ITR 228(P&H) and CIT v. Indo Asian Switch- Gears P.Ltd. 222 ITR 772(P&H). Similar view was also taken by a Full Bench of Punjab & Haryana High Court in Famna Auto Industries v. CIT 299 ITR 92 (P&H) in respect of damages paid for breach of contract, because the assessee was unable to obtain import licence for import of goods agreed to be purchased. The Fu…

DCIT, NEW DELHI vs. M/S NICE PROJECTS PVT. LTD.,, NEW DELHI

In the result, the appeal filed by the Revenue stands dismissed

ITA 3950/DEL/2013[2009-10]Status: DisposedITAT Delhi19 Apr 2016AY 2009-10

Bench: Sh. J.S. Reddy, Am & Smt. Beena A Pillai, Jm Ita No. 3950/Del/2013 : Asstt. Year : 2009-10 Dcit Vs Nice Projects P. Ltd. Circle 13(1), C-56A, Kalkaji, New Delhi. New Delhi. Aaccn2830N (Appellant) (Respondent) Pan No. Afwpc1171P Assessee By : Sh. Mohit Gupta, Ca Revenue By : Dev Jyoti Das, Cit-Dr Date Of Hearing : Date Of Pronouncement : 17.02.2016 19.04.2016

For Appellant: Sh. Mohit Gupta, CAFor Respondent: Dev Jyoti Das, CIT-DR

Section 143(1)Section 143(2)Section 194CSection 194ISection 37(1)Section 40

…nouncements: I. CIT vs. Sri Rajagopal Transports P. Ltd. (1983) 144 ITR 573 (Mad.); II. Addl. CIT vs. Arvind Mills Ltd. (1977) 109 ITR 212 (Guj); III. CIT vs. Indian Commercial Co. P. Ltd. (1977) 106 ITR 465 (Bom.); IV. CIT vs. Murari Lal Ahuja & Sons, (1989) 177 ITR 228 (P&H). 3. Aggrieved by the order of the ld. CIT(A) the Revenue is in appeal before us on these two issues. 6 3.1. We have perused the order of the authorities below. The assessee deducted tax u/s 194C of the Act instead of section 194I of the Act. There is no allegation against the assessee that the TDS so deducted have not been deposited with t…

M/S DAYCO SECURITES (P) LTD.,KOLKATA vs. D.C.I.T.CIR - 6,KOL., KOLKATA

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

ITA 1798/KOL/2012[2006-07]Status: DisposedITAT Kolkata15 Apr 2016AY 2006-07

Bench: Shri P. M. Jagtap, A.M. & Shri S.S.Viswanethra Ravi, J.M.)

For Appellant: Shri D.C.Modok, FCAFor Respondent: Shri Uday Kumar Sardar, Addl.CIT, Sr.DR

Section 143(3)Section 37

…a stock exchange penalty and such bodies having no authority of law, the amounts being paid towards various defaults cannot be treated as penalty. It does not constitute any violation of law and relied on a case law CIT-vs- Murarilal Ahuja & Sons reported in 177 ITR 228. The ld. DR relied on AO’s order. 14. We may refer to the definition of penalties in Corpus Juris Secundum, Volume 70, page 387 which contains a comprehensive definition of the word "Penalty is an elastic term with many different shades of meaning. The term involves the idea of punishment, either corporal or pecuniary, or civil or criminal altho…