Wall Construction Co Ltd. v. JCIT

102 TTJ 505Income Tax Appellate Tribunal2006#5391 most cited

What is Wall Construction Co Ltd. v. JCIT authority for?

Interest expenditure on borrowed funds used for stock-in-trade is allowable as a deduction in the year the revenue is offered to tax, even when following the percentage completion method for recognizing revenue.

21

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2020 to 2024.

Also referred to as

Wall Street Construction Ltd · 102 TTJ 505 · Section 36(1)(iii) · interest expenditure · deduction · stock-in-trade · percentage completion method · revenue recognition · borrowed funds

Sections most often in play

Section 115JB of the ActSection 143(3) of the ActSection 14A of the ActSection 1961Section 1962Section 250 of the Income-tax ActSection 36(1)(iii) of the Act

Issues it is cited on

project completion methodpercentage completion methodsection 36(l)(iii)section 36(1)(ii)section 36(l)section 245dsection 36(1)(iii)mercantile system of accountingsection 43(1)section 57(iii)disallowance of interest expendituresection 36(1)

Judgments citing Wall Construction Co Ltd. v. JCIT

DCIT Cent. Cir. -7(3), Mumbai vs. Palava Dwellers Pvt. Ltd., Mumbai

In the result, appeal of the Revenue is dismissed and appeal of the assessee is allowed

ITA 2147/MUM/2018[2014-15]Status: DisposedITAT Mumbai20 Feb 2020AY 2014-15

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Bledy. Commissioner Of Income-Tax V. M/S. Palava Dwellers Pvt. Ltd., Central Circle – 7(3) 412, 71-G, Vardhman Chamber Room No. 655, 6Th Floor C.P. Road, Horniman Circle Aayakar Bhavan, M.K. Road Fort, Mumbai Mumbai – 400 020 Pan: Aabcl1117D (Appellant) (Respondent) Lodha Developers Limited Dy. Commissioner Of Income-Tax V. {Since Merged M/S. Palava Dwellers Pvt. Ltd.,} Central Circle – 7(3) 412, 4Th Floor, 17G, Vardhman Chamber Room No. 655, 6Th Floor Cawasji Patel Road, Horniman Circle Aayakar Bhavan, M.K. Road Fort, Mumbai - 400 001 Mumbai – 400 020 Pan: Aabcl1117D (Appellant) (Respondent)

For Appellant: Shri Rajan R. VoraFor Respondent: Shri Awungshi Gimson
Section 143(3)Section 14ASection 36(1)(iii)

…Lokandwala Construction Industries Ltd., [260 ITR 579]. 4. Not convinced with the submissions of the assessee, the Assessing Officer placing reliance on the judgement of the Hon'ble Special Bench, Mumbai in the case of M/s. Wall Street Construction Limited [102 TTJ 505] wherein it has been held that the interest cost shall be debited to work in 4 ITA No. 2147 & 2348/MUM/2018 (A.Y: 2014-15) Lodha Developers Limited {since merged M/s. Palava Dwellers Pvt. Ltd.,} progress and allowed to be claimed as deduction only in the year in which corresponding income offered to tax, Assessing Officer denied the claim of the…