United Commercial Bank v. CIT

240 ITR 355Supreme Court of India1999#245 most cited

What is United Commercial Bank v. CIT authority for?

Liabilities accrued on a notional basis are allowable as deductions under the mercantile system of accounting even if their exact quantification or discharge is deferred to a future date or if the demand itself is disputed.

314

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2009 to 2026.

Also referred to as

United Commercial Bank v. CIT · Section 145 · Section 37(1) · mercantile system of accounting · accrual basis deduction · unascertained liability · provision for expenses · deferred quantification · disputed liability · business deductions

Also reported as

156 CTR 380

Sections most often in play

Section 143(3)Section 37(1)Section 36(1)(viia)Section 14ASection 36(1)(vii)Section 145Section 36(1)(viii)Section 10(34)

Issues it is cited on

section 36(2)(v)section 145(1)section 36(1)(viia)section 36(2)section 36(1)(vii)interest on securitiesmercantile system of accountingsection 10(34)profits and gains of business or professionsection 145section 36(1)disallowance u/s 14a

Judgments citing United Commercial Bank v. CIT

DCIT, Circle-6, Kolkata vs. Uco Bank, Kolkata

In the result, the appeal of the assessee in ITA No

ITA 1281/KOL/2012[2008-2009]Status: DisposedITAT Kolkata05 Oct 2016AY 2008-2009

Bench: Shri M. Balaganesh, Am & Shri S.S. Viswanethra Ravi, Jm]

For Appellant: S/Shri D.S.Damle & Akkal Dudhwewala, FCAFor Respondent: Shri G. Mallikarjuna, CIT, DR
Section 143(3)Section 36(1)(viia)

…of Rule 8D and worked out the disallowance u/s 14A of the Act to the tune of Rs. 22,83,24,845/- in the assessment. The ld CITA held that the investments were held as stock in trade by the assessee and the Hon’ble Apex Court in assessee’s own case reported in 240 ITR 355 (SC) had held that the investments held by the assessee are to be held as stock in trade. Moreover, all these investments were statutorily required to be maintained as per the policy of RBI on socio-economic considerations. The bank has to make these investments as a legal necessity although many of them may not be remunerative in terms of return…

Uco Bank, Kolkata vs. DCIT, Circle -6, Kolkata

In the result, the appeal of the assessee in ITA No

ITA 1202/KOL/2012[2008-2009]Status: DisposedITAT Kolkata05 Oct 2016AY 2008-2009

Bench: Shri M. Balaganesh, Am & Shri S.S. Viswanethra Ravi, Jm]

For Appellant: S/Shri D.S.Damle & Akkal Dudhwewala, FCAFor Respondent: Shri G. Mallikarjuna, CIT, DR
Section 143(3)Section 36(1)(viia)

…of Rule 8D and worked out the disallowance u/s 14A of the Act to the tune of Rs. 22,83,24,845/- in the assessment. The ld CITA held that the investments were held as stock in trade by the assessee and the Hon’ble Apex Court in assessee’s own case reported in 240 ITR 355 (SC) had held that the investments held by the assessee are to be held as stock in trade. Moreover, all these investments were statutorily required to be maintained as per the policy of RBI on socio-economic considerations. The bank has to make these investments as a legal necessity although many of them may not be remunerative in terms of return…

ACIT, Circle-43, Kolkata vs. M/S. Jewel India Jewellers, Kolkata

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

ITA 202/KOL/2015[2011-2012]Status: DisposedITAT Kolkata04 Oct 2016AY 2011-2012

Bench: Shri P.M.Jagtap & Shri S.S.Viswanethra Ravi

Section 142(1)Section 143(2)

…sment proceedings of the assessee. Then there is no justifiable reason to reject the same method during the year under appeal. In this regard, we place reliance on the decision of the Hon’ble Apex Court in the case of United Commercial Bank vs CIT reported in 240 ITR 355 (SC) wherein the principles were laid down for valuation of assets at page 366. We find that the following decisions also support the case of the assessee:- CIT vs Sant Ram Mangat Ram reported in (2005) 275 ITR 312 (P&H) CIT vs Ema India Ltd reported in (2006) 296 ITR 510 (All) CIT vs Jagatjit Industries Ltd reported in (2011) 339 ITR 382 (Del)…

The Burdwan Central Co - Operative Bank Limited, Burdwan vs. A.C.I.T Cir - 2, Burdwan

In the result the appeal of the assessee is partly allowed

ITA 1243/KOL/2013[2009-10]Status: DisposedITAT Kolkata02 Sept 2016AY 2009-10

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] Assessment Year : 2009-10

For Appellant: Shri Pratap Kanti Ghosh, , FCAFor Respondent: Shri Sallong Yaden, Addl.CIT
Section 143(3)

…n allowable deduction in the computation of the profits of the appellant. The Hon’ble court referred to the following judgments —CIT vs. South India Bank Ltd. 241 ITR 374 (Ker), Malabar Co-operative Central Bank Ltd. vs. CIT 101 ITR 87 (Ker), UCO Bank vs. CIT 240 ITR 355 (SC), CIT vs. Karnataka State Co-operative Apex Bank 251 ITR 194 (SC) and Mehsana District Central Co-operative Bank Ltd. vs. ITO 251 ITR 522 (SC) and distinguished the decision in the case of Vijaya Bank Ltd. vs. Addl. CIT (1991) 94 CTR (SC) 216 : (1991) 187 ITR 541 (SC). The Hon’ble Court finally concluded that Securities held by banks constitu…

Il & Fs Employees Welfare Trust, Mumbai vs. Addl CIT 19 (3), Mumbai

Appeal of the assessee is hereby allowed and appeal of the revenue is hereby dismissed

ITA 5235/MUM/2014[2009-10]Status: DisposedITAT Mumbai26 Aug 2016AY 2009-10

Bench: Shri G.S.Pannu, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.5235/M/2014 ("नधा"रण वष" / Assessment Year: 2009-10) Il & Fs Employees Welfare Addl. Commr. Of Income बनाम/ Trust Tax 19(3) Vs. Plot No. C-22, G Block, Room No.301, 3Rd Floor, Bandra-Kurla Complex, Piramal Chambers, Parel, Bandra(E), Mumbai - 400012 Mumbai -400051 आयकर अपील सं/ I.T.A. No.5223/M/2014 ("नधा"रण वष" / Assessment Year: 2009-10) Addl. Commr. Of Income Tax Il & Fs Employees Welfare बनाम/ 19(3) Trust Vs. Room No.305, 3Rd Floor, Plot No. C-22, G Block, Piramal Chambers, Parel, Bandra-Kurla Complex, Mumbai - 400012 Bandra(E), Mumbai -400051 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaati0422N

For Appellant: Shri Dilip V. LakhaniFor Respondent: Shri Bhanwar Singh Ratnoo
Section 142(1)Section 143(1)Section 143(2)Section 14ASection 234BSection 234CSection 45

…Overseas Bank 51 taxaman 283 (Madras). The finding of the Assessing Officer was A.Y. 2009-10 confirmed by the CIT(A). However, the assessee has also placed reliance on the law settled by the Hon’ble Supreme Court in case of United Commercial Bank reported in 240 ITR 355 but the CIT(A) nowhere discussed the said law and endorsed the view of the Assessing Officer. CIT(A) was also of the view that the trust was not carrying out the activity of shares therefore the contention of the appellant has been declined. Infact, assessee in his accounts books was treating the investment as stock in trade and accordingly books…

Asst CIT 19(3), Mumbai vs. Il & Fs Employees Welfare Trust, Mumbai

Appeal of the assessee is hereby allowed and appeal of the revenue is hereby dismissed

ITA 5223/MUM/2014[2009-10]Status: DisposedITAT Mumbai26 Aug 2016AY 2009-10

Bench: Shri G.S.Pannu, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.5235/M/2014 ("नधा"रण वष" / Assessment Year: 2009-10) Il & Fs Employees Welfare Addl. Commr. Of Income बनाम/ Trust Tax 19(3) Vs. Plot No. C-22, G Block, Room No.301, 3Rd Floor, Bandra-Kurla Complex, Piramal Chambers, Parel, Bandra(E), Mumbai - 400012 Mumbai -400051 आयकर अपील सं/ I.T.A. No.5223/M/2014 ("नधा"रण वष" / Assessment Year: 2009-10) Addl. Commr. Of Income Tax Il & Fs Employees Welfare बनाम/ 19(3) Trust Vs. Room No.305, 3Rd Floor, Plot No. C-22, G Block, Piramal Chambers, Parel, Bandra-Kurla Complex, Mumbai - 400012 Bandra(E), Mumbai -400051 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaati0422N

For Appellant: Shri Dilip V. LakhaniFor Respondent: Shri Bhanwar Singh Ratnoo
Section 142(1)Section 143(1)Section 143(2)Section 14ASection 234BSection 234CSection 45

…Overseas Bank 51 taxaman 283 (Madras). The finding of the Assessing Officer was A.Y. 2009-10 confirmed by the CIT(A). However, the assessee has also placed reliance on the law settled by the Hon’ble Supreme Court in case of United Commercial Bank reported in 240 ITR 355 but the CIT(A) nowhere discussed the said law and endorsed the view of the Assessing Officer. CIT(A) was also of the view that the trust was not carrying out the activity of shares therefore the contention of the appellant has been declined. Infact, assessee in his accounts books was treating the investment as stock in trade and accordingly books…

Jbf Industries Ltd, Mumbai vs. Addl CIT RG 4(2), Mumbai

Appeal of the assessee is hereby allowed and appeal of the revenue is hereby dismissed

ITA 2695/MUM/2011[2007-08]Status: DisposedITAT Mumbai12 Aug 2016AY 2007-08

Bench: Shri G.S.Pannu, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.5235/M/2014 ("नधा"रण वष" / Assessment Year: 2009-10) Il & Fs Employees Welfare Addl. Commr. Of Income बनाम/ Trust Tax 19(3) Vs. Plot No. C-22, G Block, Room No.301, 3Rd Floor, Bandra-Kurla Complex, Piramal Chambers, Parel, Bandra(E), Mumbai - 400012 Mumbai -400051 आयकर अपील सं/ I.T.A. No.5223/M/2014 ("नधा"रण वष" / Assessment Year: 2009-10) Addl. Commr. Of Income Tax Il & Fs Employees Welfare बनाम/ 19(3) Trust Vs. Room No.305, 3Rd Floor, Plot No. C-22, G Block, Piramal Chambers, Parel, Bandra-Kurla Complex, Mumbai - 400012 Bandra(E), Mumbai -400051 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaati0422N

For Appellant: Shri Dilip V. LakhaniFor Respondent: Shri Bhanwar Singh Ratnoo
Section 142(1)Section 143(1)Section 143(2)Section 14ASection 234BSection 234CSection 45

…Overseas Bank 51 taxaman 283 (Madras). The finding of the Assessing Officer was A.Y. 2009-10 confirmed by the CIT(A). However, the assessee has also placed reliance on the law settled by the Hon’ble Supreme Court in case of United Commercial Bank reported in 240 ITR 355 but the CIT(A) nowhere discussed the said law and endorsed the view of the Assessing Officer. CIT(A) was also of the view that the trust was not carrying out the activity of shares therefore the contention of the appellant has been declined. Infact, assessee in his accounts books was treating the investment as stock in trade and accordingly books…

Oriental Bank of Commerce, Gurgaon vs. ACIT, New Delhi

In the result, the appeal filed by the Assessee stands allowed

ITA 1020/DEL/2013[2007-08]Status: DisposedITAT Delhi04 Aug 2016AY 2007-08

Bench: Shri H.S. Sidhu & Shri Anadi N. Mishra

For Appellant: Sh. K.V.S.R. Krishna, CAFor Respondent: Ms. Deepika Mittal, CIT(DR)
Section 271

…Income Tax 356 ITR 549 and CIT vs. Bank of Baroda 262 ITR 334 and a decision of honourable Bombay High Court in case of CIT vs. HDFC Bank Ltd. reported at 368 ITR 377 considering decision of honourable supreme court in case of united commercial bank V CIT 240 ITR 355 and Southern technologies Limited 5 V Jt CIT 320 ITR 577, wherein Hon’ble High Court has held as under:- “9. In the present case, we find that the facts and issues that are covered by the aforesaid judgment squarely apply to the facts and issues raised in the present Appeal. Not only are we in full agreement with the judgment of this Court in…

DCIT 20(2), Mumbai vs. Kokan Mercantile Co Op Bank Ltd, Mumbai

Appeal is allowed

ITA 281/MUM/2015[2011-12]Status: DisposedITAT Mumbai28 Jul 2016AY 2011-12

Bench: S/Sh.Rajendra & C.N. Prasadआयकर अपील अपील संसंसंसं./I.T.A./281/Mum/2015,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2011-12 आयकर आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Dcit-20(2) M/S. Kokan Mercantile Co-Op Bank Ltd. Room No.217, 2Nd Floor 1St Floor, Harbour Crest Piramal Chambers, Lalbaug, Parel Vs. Mazgaon Mumbai-400 012. Mumbai-400 010. Pan:Aaaak 2527 P (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By:Shri Sanjeev Kashyap-Sr. Ar Assessee By: Shri M. Subramanian सुनवाई क" तारीख / Date Of Hearing: 28.07.2016 घोषणा क" तारीख / Date Of Pronouncement: 28.07.2016 आयकर आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) "" केकेकेके अनुसार अनुसार अनुसार Per Rajendra, Am- अनुसार राजे"" "" "" लेखा सद"य सद"य राजे लेखा लेखा लेखा सद"य सद"य राजे राजे Challenging The Order,Dated 31/10/2014 Of The Cit (A)-29, Mumbai, The Assessing Officer(Ao) Has Filed The Present Appeal. 2.Assessee-Bank,Filed Its Return Of Income On 28/09/2011,Declaring Total Income At Rs.3.64 Crores.Later On, It Filed A Revised Return On 11/09/2012, Declaring Income Of Rs. 2.68 Crores.The Ao Completed The Assessment On 28/02/2014,Under Section 143 (3) Of The Act Determining The Income Of The Assessee At Rs.7.53 Crores.

For Appellant: Shri M. SubramanianFor Respondent: Shri Sanjeev Kashyap-Sr. AR
Section 143Section 145(2)Section 254(1)

…r a particular item of investment 2 281/M/15-(11-12) Kokan Mercantile in securities as per the RBI guidelines constitute stock-in-trade or capital assets and after considering the decision of Hon’ble Apex Court in United Commercial Bank vs. CIT reported in 240 ITR 355 and considered the investment made in security as a stock-in- trade. 31.The CIT(A) further relied upon the order of co-ordinate bench in case titled as ACIT vs. The Bank of Rajasthan Ltd. reported in 2011-TIOL 35 and deleted the addition. 32.We have carefully considered the rival contention of the parties and gone through the material available o…

M/S D.K.Basak Jewellers Pvt. Ltd., Kolkata vs. DCIT. Cir. 12, Kolkata

In the result, the appeal of the assessee in ITA No

ITA 51/KOL/2013[2009-10]Status: DisposedITAT Kolkata20 Jul 2016AY 2009-10

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

For Appellant: S/Shri S. L. Kochar & Anil Kochar, AdvocatesFor Respondent: Shri Rajat Kumar Kureel, JCIT, Sr. DR
Section 133ASection 143(3)

…of stocks and the LIFO method followed by the assessee in his remand report No. DCIT / Cir-12/Kol./Remand Report/D.K.Basak/2012- 13/941 dated 1.10.2012. He further relied on the decision of the Hon’ble Supreme Court in the case of UCO Bank vs CIT reported in 240 ITR 355 (SC) wherein the Hon’ble Apex Court at page 366 of the Judgement had laid down the principles of valuation of stock. 3.8. In response to this, the ld DR argued that the stock discrepancies were found in survey and the Government approved departmental valuer was also present at the time of survey for valuation of stocks found in the survey. The s…

D.C.I.T Cir - 12, Kolkata. vs. M/S D.K..Basak Jewellers Pvt Ltd., Kolkata

In the result, the appeal of the assessee in ITA No

ITA 379/KOL/2013[2009-10]Status: DisposedITAT Kolkata20 Jul 2016AY 2009-10

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

For Appellant: S/Shri S. L. Kochar & Anil Kochar, AdvocatesFor Respondent: Shri Rajat Kumar Kureel, JCIT, Sr. DR
Section 133ASection 143(3)

…of stocks and the LIFO method followed by the assessee in his remand report No. DCIT / Cir-12/Kol./Remand Report/D.K.Basak/2012- 13/941 dated 1.10.2012. He further relied on the decision of the Hon’ble Supreme Court in the case of UCO Bank vs CIT reported in 240 ITR 355 (SC) wherein the Hon’ble Apex Court at page 366 of the Judgement had laid down the principles of valuation of stock. 3.8. In response to this, the ld DR argued that the stock discrepancies were found in survey and the Government approved departmental valuer was also present at the time of survey for valuation of stocks found in the survey. The s…

M/S Prithvi Granities Pvt. Ltd vs. Addl.C.I.T

In the result, grounds challenging re-assessment proceedings are dismissed

ITA 991/BANG/2013[2007-08]Status: DisposedITAT Bangalore20 Jul 2016AY 2007-08

Bench: Smt. Asha Vijayaraghavan & Shri Inturi Rama Raom/S.Prithvi Granites Pvt.Ltd. No.196, 3Rd Phase, Bommasandra Indl. Area, Anekal Taluk Bangalore-560025. … Appellant Pa No.Aadcp 9920 C Vs.

For Appellant: Shri V.Chandrashekar, AdvocateFor Respondent: Shri Sunil Kumar Agarwala, JCIT(DR)
Section 143(3)Section 148Section 153

…tock of the next year and having accepted the closing stock as on 31.03.2006, the AO is precluded from doubting the Opening Stock value as on 1.4.2006. Reliance is placed on the decision of the Allahabad High Court in 278 ITR 213 and Supreme Court decision in 240 ITR 355. 7. The learned authorities below erred in allocating the total sale consideration received on the sale of property between Land and Building without considering the depreciation. The guidance value of the building has been ascertained without considering the depreciation on the building. Page 3 of 8 8. The appellant craves leave to add, alter, a…

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

Appeal is allowed

ITA 5720/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Jul 2016AY 2007-08

Bench: Shri I.C. Sudhir & Shri L.P. Sahu Assessment Year: 2007-08 Assessment Year: 2007-08 Maruti Suzuki India Ltd., Vs. Additional Cit, Plot No.1, Nelson Mandela Road, Range-6, Vasant Road, New Delhi. New Delhi. (Pan: Aaacm0829Q) (Appellant) (Respondent) Assessee By: S/Shri Ajay Vohra, Sr. Adv. Neeraj Jain, Rohit Jain, Adv. Romit Katyal & Ms. Tejasvi Jain, Cas Department By:Shri Amrendra Kumar, Cit(Dr)

For Appellant: S/Shri Ajay Vohra, Sr. Adv. NeerajFor Respondent: Shri Amrendra Kumar, CIT(DR)

…en though its actual quantification and discharge is deferred to a future date: a) Assessee’s own case decided in favour by CIT (A) for AY 2003-04 b) Calcutta Discount Co. Ltd. 37 ITR 1 (SC) c) Metal Box (1969) 73 ITR 53 (SC) d) United Commercial Bank v. CIT 240 ITR 355 (SC) e) Bharat Earth Movers 245 ITR 428 (SC). f) Kelvinator of India Ltd. reported in 256 ITR 1 confirmed by SC in 320 ITR 561 g) CIT v. Vinitec Corpn. (P) Ltd. : 278 ITR 337 (Del.) h) National Mineral Development Corporation Ltd. v. JCIT : 98 ITD 278 (Hyd. ITAT) 26.3.9 The Hon’ble Supreme Court in the case of CIT vs Woodward Governor India (P) L…

D.C.I.T Cir - 6, Kolkata. vs. M/S Uco Bank, Kolkata

In the result, assessee’s appeal is partly allowed and that of Revenue’s appeal stands dismissed

ITA 911/KOL/2013[2009-10]Status: DisposedITAT Kolkata05 Jul 2016AY 2009-10

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 115JSection 143(3)Section 14ASection 212Section 36(1)(viia)Section 43B

…er in share, therefore the rigorous provision u/s 14A r.w.s 8D of the IT Rule shall not be applied with respect to share held by way of stock-in-trade. In this connection, whether assessee is a dealer in share or not we are placing our reliance in the case of 240 ITR 355 respectfully where it has been held that the assessee is dealer in shares. The relevant extract of the case UNITED COMMERCIAL BANK vs. COMMISSIONER OF INCOME TAX (1999) 156 CTR 0380 : (1999) 240 ITR 0355 (1999) 106 TAXMAN 0601 whereby Hon’ble SUPREME COURT OF INDIA held as under : “It is an established rule of commercial practice and accountancy…

Uco Bank, Kolkata vs. D.C.I.T Cir - 6, Kolkata.

In the result, assessee’s appeal is partly allowed and that of Revenue’s appeal stands dismissed

ITA 585/KOL/2013[2009-10]Status: DisposedITAT Kolkata05 Jul 2016AY 2009-10

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 115JSection 143(3)Section 14ASection 212Section 36(1)(viia)Section 43B

…er in share, therefore the rigorous provision u/s 14A r.w.s 8D of the IT Rule shall not be applied with respect to share held by way of stock-in-trade. In this connection, whether assessee is a dealer in share or not we are placing our reliance in the case of 240 ITR 355 respectfully where it has been held that the assessee is dealer in shares. The relevant extract of the case UNITED COMMERCIAL BANK vs. COMMISSIONER OF INCOME TAX (1999) 156 CTR 0380 : (1999) 240 ITR 0355 (1999) 106 TAXMAN 0601 whereby Hon’ble SUPREME COURT OF INDIA held as under : “It is an established rule of commercial practice and accountancy…

A.C.I.T Cir - 43, Kolkata vs. M/S Jewell India Jewellers, Kolkata

In the result, the appeal of the revenue is dismissed

ITA 2085/KOL/2013[2009-10]Status: DisposedITAT Kolkata01 Jun 2016AY 2009-10

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Alok Kr. Nag, JCIT, Sr. DRFor Respondent: Shri S. M. Surana, Advocate &
Section 143(3)

…sment proceedings of the assessee. Then there is no justifiable reason to reject the same method during the year under appeal. In this regard, we place reliance on the decision of the Hon’ble Apex Court in the case of United Commercial Bank vs CIT reported in 240 ITR 355 (SC) wherein the principles were laid down for valuation of assets at page 366. We find that the following decisions also support the case of the assessee:- CIT vs Sant Ram Mangat Ram reported in (2005) 275 ITR 312 (P&H) CIT vs Ema India Ltd reported in (2006) 296 ITR 510 (All) CIT vs Jagatjit Industries Ltd reported in (2011) 339 ITR 382 (Del)…

Allahabad Bank, Kolkata vs. Add.CIT, Range-6, Kolkata

In the result the appeal of the revenue is dismissed

ITA 1199/KOL/2012[2008-2009]Status: DisposedITAT Kolkata01 Jun 2016AY 2008-2009

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] Assessment Year : 2008-09

For Appellant: Shri Barun Kumar Ghosh & Shri Piyush Dey, FCAFor Respondent: Shri Rajat Subhra Biswas, CIT(DR)
Section 28Section 36Section 36(1)Section 36(1)(viia)

…s of appeal, we permit the assessee to raise the additional ground and modify grounds No.3 & 4 as prayed for by the Assessee. 19. The ld. Counsel for the assessee submitted before us that the Hon’ble Supreme Court in the case of United Commercial Bank vs CIT 240 ITR 355 (SC) has taken a view that all investment held by a bank are stock in trade of business of the assesee. He drew our attention to the decision of the Hon’ble ITAT, Kolkata Bench in the case of Gulshan Investment Co. Ltd wherein this Tribunal took a view that when the shares, units of mutual funds or bonds which yield tax free income are not shown…

Addl CIT Cen Cir IX, Mumbai vs. Prism Cement Ltd, Mumbai

Appeals are disposed of in terms

ITA 8503/MUM/2010[2007-08]Status: DisposedITAT Mumbai16 May 2016AY 2007-08

Bench: Shri Joginder Singh & Shri Rajendra

Section 143(3)Section 147Section 35E

…due is brought into credit before it is actually received; it brings into debit an expenditure for which a legal liability has been incurred before it is actually disbursed. (see judgment of this Court in the case of United Commercial Bank v. CIT reported in 240 ITR 355). Therefore, the accounting method followed by an assessee continuously for a given period of time needs to be presumed to be correct till the AO comes to the conclusion for reasons to be given that the system does not reflect true and correct profits. As stated, there is no finding given by the AO on the correctness of the accounting standard fo…

ACIT Cen Cir Cir-34, Mumbai vs. Prism Cement Ltd, Mumbai

Appeals are disposed of in terms

ITA 3859/MUM/2010[2006-07]Status: DisposedITAT Mumbai16 May 2016AY 2006-07

Bench: Shri Joginder Singh & Shri Rajendra

Section 143(3)Section 147Section 35E

…due is brought into credit before it is actually received; it brings into debit an expenditure for which a legal liability has been incurred before it is actually disbursed. (see judgment of this Court in the case of United Commercial Bank v. CIT reported in 240 ITR 355). Therefore, the accounting method followed by an assessee continuously for a given period of time needs to be presumed to be correct till the AO comes to the conclusion for reasons to be given that the system does not reflect true and correct profits. As stated, there is no finding given by the AO on the correctness of the accounting standard fo…

DCIT Cen Cir 34, Mumbai vs. Prism Cement Ltd, Mumbai

Appeals are disposed of in terms

ITA 5751/MUM/2009[2005-06]Status: DisposedITAT Mumbai16 May 2016AY 2005-06

Bench: Shri Joginder Singh & Shri Rajendra

Section 143(3)Section 147Section 35E

…due is brought into credit before it is actually received; it brings into debit an expenditure for which a legal liability has been incurred before it is actually disbursed. (see judgment of this Court in the case of United Commercial Bank v. CIT reported in 240 ITR 355). Therefore, the accounting method followed by an assessee continuously for a given period of time needs to be presumed to be correct till the AO comes to the conclusion for reasons to be given that the system does not reflect true and correct profits. As stated, there is no finding given by the AO on the correctness of the accounting standard fo…