Western India Vegetable Products Ltd. v. CIT

26 ITR 151High Court1954#995 most cited

What is Western India Vegetable Products Ltd. v. CIT authority for?

Revenue expenditure incurred after a business is set up and ready to commence, but before its actual commencement, is allowable as a deduction even if no income is earned in that period. The previous year for a business begins from the date it is set up.

108

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2007 to 2026.

Also referred to as

Western India Vegetable Products Ltd. v. CIT · 26 ITR 151 · Section 10(2) · Section 37(1) Income Tax Act 1961 · setting up of business · commencement of business · revenue expenditure · business deductions · previous year

Sections most often in play

Section 143(2)Section 10(2)Section 142(1)Section 143(3)Section 1961Section 250Section 115JBSection 139(1)

Issues it is cited on

section 10(2)section 57(iii)section 57revenue expendituresection 10income from other sourcesprevious yearcompanyindiabusinesssection 143section 143(3)

Judgments citing Western India Vegetable Products Ltd. v. CIT

M/S Crown Home Engineers Pvt Ltd, Bangalore vs. The Assistant Commissioner of Income Tax Circle-2(1)(1), Bangalore

In the result, the appeal is partly allowed

ITA 1572/BANG/2017[2012-13]Status: DisposedITAT Bangalore09 Sept 2020AY 2012-13

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year: 2012-13

For Appellant: Shri Bharat.L, CAFor Respondent: Smt. R.Premi, JCIT(DR)(ITAT), Bengaluru
Section 28Section 29Section 3

…The ld. AR relied on various decisions as follows:- 1 Vardhman Developers Ltd. — Hon. ITAT (Mumbai) — 55 taxmann.com 370 2 Berger Impex India (P) Ltd. — Hon. ITAT Delhi — ITA No.4019/De1/2010 Western India Vegetable Products Ltd. [1954]-Hon. Bombay High Court-26 ITR 151 3 ESPN Software India (P.) Ltd [2009]-Hon. Delhi High Court- 184 TAXMAN 452 4 Page 3 of 5 Saurashtra Cement & Chemical Industries Ltd. [1973R-ion. Gujarat High Court- 5 91 ITR 170 Dhoomketu Builders & Development (P.) Ltd. [2013]-Hon. Delhi Court-34 6 taxmann.com 18 UE Development India (P.) Ltd. [2013]-Hon. Bangalore ITAT- 7 35taxmann.com 607 6…

Jindal Reality Pvt. Ltd., New Delhi vs. ITO, New Delhi

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

ITA 1651/DEL/2016[2008-09]Status: DisposedITAT Delhi18 Aug 2020AY 2008-09

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am [Through Video Conferencing] आयकर अपील सं. / Ita No.5057/Del/2010 "नधा"रण वष" /Assessment Year 2007-08 Jindal Reality Pvt.Ltd. Flat No.1104, 11Th Floor, Hemkunt Chamber, 89Th Nehru Place, New Delhi. ..........अपीलाथ"/Appellant Pan-Aaccd2575L Vs The Dcit, …………. ""यथ" / Respondent Circle-4(1), New Delhi-110002. अपीलाथ" क" ओर से / Appellant By : Sh. Rohit Jain, Adv. & Sh. Deepesh Jain, Ca ""यथ" क" ओर से / Respondent By : Sh. J.K.Mishra, Cit Dr

For Appellant: Sh. Rohit Jain, Adv. &For Respondent: Sh. J.K.Mishra, CIT DR
Section 143(3)

…t steps were taken by the assessee for the commencement of the business and, after deliberating upon the issue in paras 12 to 14 and relying on the ratio laid down by the Hon’ble Bombay High Court in the case of Western India Vegetable Products Ltd. vs CIT 26 ITR 151 (Bom.); Hon’ble Gujarat High Court in the case of CIT vs Saurashtra Cement and Chemical Industries Ltd. 91 ITR 170 (Guj.) and Hon’ble Delhi High Court in the cases of Dhoomketu Builders & Development (P.) Ltd. vs ACIT 368 ITR 680 (Del.) and in CIT vs Arcane Developers (P) Ltd. 368 ITR 627 (Del.), has held as under:- “19. Applying the above s…

ITO, New Delhi vs. M/S. Jindal Realty Pvt. Ltd., New Delhi

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

ITA 4340/DEL/2014[2009-10]Status: DisposedITAT Delhi18 Aug 2020AY 2009-10

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am [Through Video Conferencing] आयकर अपील सं. / Ita No.5057/Del/2010 "नधा"रण वष" /Assessment Year 2007-08 Jindal Reality Pvt.Ltd. Flat No.1104, 11Th Floor, Hemkunt Chamber, 89Th Nehru Place, New Delhi. ..........अपीलाथ"/Appellant Pan-Aaccd2575L Vs The Dcit, …………. ""यथ" / Respondent Circle-4(1), New Delhi-110002. अपीलाथ" क" ओर से / Appellant By : Sh. Rohit Jain, Adv. & Sh. Deepesh Jain, Ca ""यथ" क" ओर से / Respondent By : Sh. J.K.Mishra, Cit Dr

For Appellant: Sh. Rohit Jain, Adv. &For Respondent: Sh. J.K.Mishra, CIT DR
Section 143(3)

…t steps were taken by the assessee for the commencement of the business and, after deliberating upon the issue in paras 12 to 14 and relying on the ratio laid down by the Hon’ble Bombay High Court in the case of Western India Vegetable Products Ltd. vs CIT 26 ITR 151 (Bom.); Hon’ble Gujarat High Court in the case of CIT vs Saurashtra Cement and Chemical Industries Ltd. 91 ITR 170 (Guj.) and Hon’ble Delhi High Court in the cases of Dhoomketu Builders & Development (P.) Ltd. vs ACIT 368 ITR 680 (Del.) and in CIT vs Arcane Developers (P) Ltd. 368 ITR 627 (Del.), has held as under:- “19. Applying the above s…

Jindal Reality Pvt. Limited, New Delhi vs. DCIT, New Delhi

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

ITA 5057/DEL/2010[2007-08]Status: DisposedITAT Delhi18 Aug 2020AY 2007-08

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am [Through Video Conferencing] आयकर अपील सं. / Ita No.5057/Del/2010 "नधा"रण वष" /Assessment Year 2007-08 Jindal Reality Pvt.Ltd. Flat No.1104, 11Th Floor, Hemkunt Chamber, 89Th Nehru Place, New Delhi. ..........अपीलाथ"/Appellant Pan-Aaccd2575L Vs The Dcit, …………. ""यथ" / Respondent Circle-4(1), New Delhi-110002. अपीलाथ" क" ओर से / Appellant By : Sh. Rohit Jain, Adv. & Sh. Deepesh Jain, Ca ""यथ" क" ओर से / Respondent By : Sh. J.K.Mishra, Cit Dr

For Appellant: Sh. Rohit Jain, Adv. &For Respondent: Sh. J.K.Mishra, CIT DR
Section 143(3)

…t steps were taken by the assessee for the commencement of the business and, after deliberating upon the issue in paras 12 to 14 and relying on the ratio laid down by the Hon’ble Bombay High Court in the case of Western India Vegetable Products Ltd. vs CIT 26 ITR 151 (Bom.); Hon’ble Gujarat High Court in the case of CIT vs Saurashtra Cement and Chemical Industries Ltd. 91 ITR 170 (Guj.) and Hon’ble Delhi High Court in the cases of Dhoomketu Builders & Development (P.) Ltd. vs ACIT 368 ITR 680 (Del.) and in CIT vs Arcane Developers (P) Ltd. 368 ITR 627 (Del.), has held as under:- “19. Applying the above s…

Amrutha Power Projects Private Limited, Hyderabad vs. Income Tax Officer, Ward-1(1), Hyderabad

In the result, the appeal of the assessee is partly allowed as indicated hereinabove

ITA 1944/HYD/2017[2014-15]Status: DisposedITAT Hyderabad03 Aug 2020AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamonyassessment Year: 2014-15 Amrutha Power Projects Vs. Income Tax Officer, Private Limited, Ward-1(1), Hyderabad. Hyderabad. Pan: Aaica 5884 B (Appellant) (Respondent) Assessee By: Sri P. Murali Mohan Rao Revenue By: Sri S. Murali Mohan, Dr Date Of Hearing: 22/06/2020 Date Of Pronouncement: 04/08/2020

For Appellant: Sri P. Murali Mohan RaoFor Respondent: Sri S. Murali Mohan, DR
Section 143(3)

…generation of power. Thus, as per the provisions of Section 3 of the Act the business of the assessee company cannot be considered to be set- up. In the decision render by the Hon’ble Bombay High Court in the case Western Vegetable Products vs CIT reported in 26 ITR 151 it was held that the expression ‘setting up’ means, as defined in the Oxford English Dictionary, “to place one foot” or “to establish” and in contradistinction to “commence”. The distinction is that when a business is established and ready to commence business then it can be said that the business is set-up. But before it is ready to commence busi…

Jindal Reality Pvt. Limited, New Delhi vs. ACIT, New Delhi

In the result, appeal of the assessee is allowed

ITA 1408/DEL/2011[2006-07]Status: DisposedITAT Delhi22 Jun 2020AY 2006-07

Bench: Ms. Sushma Chowla & Shri O.P.Kantआयकर अपील सं. / Ita No.1408/Del/2011 "नधा"रण वष" / Assessment Year-2006-07

For Respondent: Sh. J. Mishra, CIT.DR
Section 143(3)

…on of land in own name and further gave loan to the associates for acquisition of land and then entered into development agreement for the development of township at Sonepat. 15. The Hon’ble Bombay High Court in Western India Vegetable Products Ltd. vs CIT 26 ITR 151 (Bom.) has laid down the proposition that there was a clear distinction between a person commencing a business and a person setting up a business and for the purpose of the Indian Income Tax Act, the setting up of the business and not the commencement of the business, is to be considered. It is only after the business is set up in the previous ye…

Btw-Atlanta Transformers India Pvt. Ltd., Bharuch vs. ACIT, Circle-1(1)(1), Vadodara

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

ITA 1642/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad06 Mar 2020AY 2013-14
For Appellant: Shri S.N.Soparkar, A.RFor Respondent: Shri Vidhyut Trivedi, Sr. D.R
Section 115JSection 143(2)Section 143(3)Section 154

…ss has been set up. We have also gone through the judicial pronouncements referred by the ld. counsel and noticed that facts of these cases are distinguishable from the case of the asssessee. In the case of Western India Vegetables Product Ltd. Vs. CIT (1954) 26 ITR 151 (Bom.) it is held that first purchase of raw material was made in end of Sep. 1946 from which inference could be drawn that assessee had set up its business by that date. In the case of CIT Vs. Samsung India Electronics Ltd. (2013) 37 taxmann.com 239 (Delhi) the assessee company was ready to commence trading operation as on the date of incorporati…

M/S Pragnya Crest Properties Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-3(1)(2), Bangalore

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

ITA 1576/BANG/2017[2012-13]Status: DisposedITAT Bangalore03 Mar 2020AY 2012-13

Bench: Shri Pradip Kumar Kedia, Am & Smt.Beena Pillai, Jm

For Appellant: Shri Sathyanarayanamurthi, CAFor Respondent: Shri B.R.Ramesh, JCIT
Section 143(3)Section 14ASection 271

…the normal course of business is required to be allowed, after setting up of business irrespective of the fact whether the revenue is not yet earned in view of the decision of the Hon’ble Bombay High Court in the case of Western India Vegetable products Ltd. 26 ITR 151 (Bom.). The action of the assessee in any case is a revenue neutral affair and the revenue is not put to any tax loss per se by such alleged premature claim. 13. We further find that the controversy is no longer resintegra and clearly covered by the decision of the co-ordinate Bench of the Tribunal in Sunny Vista Realtors Pt.Ltd. vs ACIT in ITA N…

M/S Coffeeday Natural Resources Pvt Limited, Bangalore vs. The Deputy Commissioner of Income Tax Circle-2(1)(1), Bangalore

In the result, appeal of the assessee is allowed for statistical purposes

ITA 1368/BANG/2017[2013-14]Status: DisposedITAT Bangalore20 Feb 2020AY 2013-14

Bench: Shri A. K. Garodia & Shri Pavan Kumar Gadaleassessment Year : 2013-14 M/S. Coffeeday Natural Resources The Deputy Commissioner Of Income Tax, Pvt. Ltd., Circle – 2(1)(1), No.23/2, Coffeeday Square, Vs. Bengaluru. Vittal Mallya Road, Bengaluru – 560 001. Pan : Aaecc 4959 M Appellant Respondent Assessee By : Shri. C. Ramesh, Ca Revenue By : Shri. Balakrishnan N, Addl. Cit (Dr)(Itat), Bengaluru Date Of Hearing : 16.01.2020 Date Of Pronouncement : 20.02.2020 O R D E R

For Appellant: Shri. C. Ramesh, CAFor Respondent: Shri. Balakrishnan N, Addl. CIT (DR)(ITAT), Bengaluru
Section 3

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER Assessment year : 2013-14 M/s. Coffeeday Natural Resources The Deputy Commissioner of Income Tax, Pvt. Ltd., Circle – 2(1)(1), No.23/2, Coffeeday Square, Vs. Bengaluru. Vittal Mallya Road, Bengaluru – 560 001. PAN : AAECC 4959 M APPELLANT RESPONDENT Assessee by : Shri. C. Ramesh, CA Revenue by : Shri. Balakrishnan N, Addl. CIT (DR)(ITAT), Bengaluru Date of hearing : 16.01.2020 Date of Pronouncement : 20.02.2020 O R D E R Per A.K. Garodia, Accountant Member This app…

M/S Maruti Inssurance Broking Pvt. Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 6442/DEL/2016[2012-13]Status: DisposedITAT Delhi10 Feb 2020AY 2012-13

Bench: Shri R.K. Panda & Shri K. Narasimha Charyassessment Year: 2012-13 Maruti Insurance Broking Pvt. Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi. New Delhi. Pan: Aagcm8887L (Appellant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Advocate, Ms Tejasvi Jain, Ca, Ms Somya Jain, Ca Revenue By : Ms Rakhi Bimal, Sr. Dr Date Of Hearing : 11.11.2019 Date Of Pronouncement : 10.02.2020 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 18Th October, 2016 Of The Cit(A)-6, Delhi, Relating To Assessment Year 2012-13. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Company & Is Engaged In The Business Of Soliciting Motor Insurance Business. It Was Incorporated On 24.11.2010 & Applied For Grant Of Direct Broker Licence To Irda, Vide Application Dated 01.12.2010 & Was Awarded Licence As A Direct Broker Of Irda In February, 2012. It Filed Its Return Of Income On 29Th September, 2012 Declaring An Income Of Rs.23,750/- & Claiming Current Year Loss Of Rs.2,78,22,376/-.

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Ms Rakhi Bimal, Sr. DR
Section 143(3)

…. Accordingly, the deduction claimed was held to be allowable. He also relied on the following decisions:- 1. CIT v. ESPN Software: 301 ITR 368 (Del.) 2. CIT vs. Hughes Escort Communications: 311 ITR 253 (Del.) 3. Western India Vegetable Products Ltd. v. CIT: 26 ITR 151 (Bom.) 4. Daimler India Commercial Vehicles (P.) Ltd vs. DCIT: 416 ITR 343 (Mad) 5. CIT vs. Franco Tosi Ingegneria: 241 ITR 268 (Mad.) 6. Religare Macquarie Wealth Management Ltd v. ACIT: 2396/Del/2013 (Del. Trib.) 7. DCIT v. Gujarat Nre Coke Limited: 115 TTJ 822 (Kol Trib.) 8. DCIT v. PPFAS Asset Management (P.) Ltd.: 176 ITD 541 (Mum. Trib.) 9.…

DCIT CC 6(3), Mumbai vs. Horizon Infrastructure Ltd, Mumbai

In the result, appeal filed by the assessee ITA No

ITA 844/MUM/2018[2013-14]Status: DisposedITAT Mumbai09 Aug 2019AY 2013-14

Bench: Shri G. Manjunatha & Shri Ravish Soodita No.2471/Mum/2018 (Assessment Year: 2013-14) (Assessment Year: 2014-15) Horizon Infrastructure Ltd. Vs. Dcit,Cc-6(3) (Now Known As Skil Air India Building Infrastructure Ltd.) Nariman Point Mumbai-400 021 Skil House, 209 Bank Street Cross Lane, Fort Mumbai-400 023

Section 14ASection 32

…en though the business was not commenced, expenditure incurred towards such business needs to be allowed as revenue expenditure. The Ld. AR further referring to the decision of Hon’ble Bombay High Court in the case of Western India vegetable products vs CIT, 26 ITR 151 submitted that the court has clearly held that when, a business is established and is ready to commence business, then it can be said that it has been setup, but before it is ready to commence business is not setup. The Ld. AR referring to the decision of ITAT, Delhi Bench in the case of Wirlpool India Limited reported in 19 SOT 593 (Delhi) sub…

Horizon Infrastructure Ltd(Now Known As Skil Infrastructure Limited), Mumbai vs. DCIT CC 6(3), Mumbai

In the result, appeal filed by the assessee ITA No

ITA 2470/MUM/2018[2013-14]Status: DisposedITAT Mumbai09 Aug 2019AY 2013-14

Bench: Shri G. Manjunatha & Shri Ravish Soodita No.2471/Mum/2018 (Assessment Year: 2013-14) (Assessment Year: 2014-15) Horizon Infrastructure Ltd. Vs. Dcit,Cc-6(3) (Now Known As Skil Air India Building Infrastructure Ltd.) Nariman Point Mumbai-400 021 Skil House, 209 Bank Street Cross Lane, Fort Mumbai-400 023

Section 14ASection 32

…en though the business was not commenced, expenditure incurred towards such business needs to be allowed as revenue expenditure. The Ld. AR further referring to the decision of Hon’ble Bombay High Court in the case of Western India vegetable products vs CIT, 26 ITR 151 submitted that the court has clearly held that when, a business is established and is ready to commence business, then it can be said that it has been setup, but before it is ready to commence business is not setup. The Ld. AR referring to the decision of ITAT, Delhi Bench in the case of Wirlpool India Limited reported in 19 SOT 593 (Delhi) sub…

Horizon Country Wide Logistics Ltd(Now Succeeded on Amalgamation by Skil Infrastructure Limited ), Mumbai vs. DCIT 1(2)(Presently ACIT--6(3)), Mumbai

In the result, appeal filed by the assessee ITA No

ITA 5817/MUM/2017[2010-11]Status: DisposedITAT Mumbai09 Aug 2019AY 2010-11

Bench: Shri G. Manjunatha & Shri Ravish Soodita No.2471/Mum/2018 (Assessment Year: 2013-14) (Assessment Year: 2014-15) Horizon Infrastructure Ltd. Vs. Dcit,Cc-6(3) (Now Known As Skil Air India Building Infrastructure Ltd.) Nariman Point Mumbai-400 021 Skil House, 209 Bank Street Cross Lane, Fort Mumbai-400 023

Section 14ASection 32

…en though the business was not commenced, expenditure incurred towards such business needs to be allowed as revenue expenditure. The Ld. AR further referring to the decision of Hon’ble Bombay High Court in the case of Western India vegetable products vs CIT, 26 ITR 151 submitted that the court has clearly held that when, a business is established and is ready to commence business, then it can be said that it has been setup, but before it is ready to commence business is not setup. The Ld. AR referring to the decision of ITAT, Delhi Bench in the case of Wirlpool India Limited reported in 19 SOT 593 (Delhi) sub…

DCIT CC 6(3), Mumbai vs. Horizon Infrastructure Ltd, Mumbai

In the result, appeal filed by the assessee ITA No

ITA 5779/MUM/2017[2012-13]Status: DisposedITAT Mumbai09 Aug 2019AY 2012-13

Bench: Shri G. Manjunatha & Shri Ravish Soodita No.2471/Mum/2018 (Assessment Year: 2013-14) (Assessment Year: 2014-15) Horizon Infrastructure Ltd. Vs. Dcit,Cc-6(3) (Now Known As Skil Air India Building Infrastructure Ltd.) Nariman Point Mumbai-400 021 Skil House, 209 Bank Street Cross Lane, Fort Mumbai-400 023

Section 14ASection 32

…en though the business was not commenced, expenditure incurred towards such business needs to be allowed as revenue expenditure. The Ld. AR further referring to the decision of Hon’ble Bombay High Court in the case of Western India vegetable products vs CIT, 26 ITR 151 submitted that the court has clearly held that when, a business is established and is ready to commence business, then it can be said that it has been setup, but before it is ready to commence business is not setup. The Ld. AR referring to the decision of ITAT, Delhi Bench in the case of Wirlpool India Limited reported in 19 SOT 593 (Delhi) sub…

M/S Sambhav Institutions (India) Private Limited, Bangalore vs. Income Tax Officer Ward-12(2), Bangalore

In the result, all the three appeals filed by the assessee are allowed for statistical purposes

ITA 1760/BANG/2018[2010-11]Status: DisposedITAT Bangalore31 Jul 2019AY 2010-11

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Siddesh Gaddi, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 271(1)(c)

…ssee can claim expense on setting up of its business. ITA Nos. 1758 to 1760/Bang/2018 Page 8 of 21 3.9. Reference can be made and reliance can be placed on the ruling of the Honourable Court in the case of Western India Vegetable Products Ltd. Vs. CIT [1954] 26 ITR 151 (BOM.) wherein the above principle has been upheld. The Honourable Court observed and held as under: Therefore if this case were to be applied to the present assessee, then we would be driven to the conclusion that, if anything, the Tribunal has taken a view of the case very favourable to the assessee because on the facts of this case it would see…

M/S Sambhav Institutions (India) Private Limited, Bangalore vs. Income Tax Officer Ward-12(2), Bangalore

In the result, all the three appeals filed by the assessee are allowed for statistical purposes

ITA 1759/BANG/2018[2009-10]Status: DisposedITAT Bangalore31 Jul 2019AY 2009-10

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Siddesh Gaddi, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 271(1)(c)

…ssee can claim expense on setting up of its business. ITA Nos. 1758 to 1760/Bang/2018 Page 8 of 21 3.9. Reference can be made and reliance can be placed on the ruling of the Honourable Court in the case of Western India Vegetable Products Ltd. Vs. CIT [1954] 26 ITR 151 (BOM.) wherein the above principle has been upheld. The Honourable Court observed and held as under: Therefore if this case were to be applied to the present assessee, then we would be driven to the conclusion that, if anything, the Tribunal has taken a view of the case very favourable to the assessee because on the facts of this case it would see…

M/S Sambhav Institutions (India) Private Limited, Bangalore vs. Income Tax Officer Ward-12(2), Bangalore

In the result, all the three appeals filed by the assessee are allowed for statistical purposes

ITA 1758/BANG/2018[2008-09]Status: DisposedITAT Bangalore31 Jul 2019AY 2008-09

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Siddesh Gaddi, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 271(1)(c)

…ssee can claim expense on setting up of its business. ITA Nos. 1758 to 1760/Bang/2018 Page 8 of 21 3.9. Reference can be made and reliance can be placed on the ruling of the Honourable Court in the case of Western India Vegetable Products Ltd. Vs. CIT [1954] 26 ITR 151 (BOM.) wherein the above principle has been upheld. The Honourable Court observed and held as under: Therefore if this case were to be applied to the present assessee, then we would be driven to the conclusion that, if anything, the Tribunal has taken a view of the case very favourable to the assessee because on the facts of this case it would see…

ITO 2(1)(1), Mumbai vs. Quickjet Cargo Airlines P.Ltd, Mumbai

In the result, Revenue’s appeal stands dismissed

ITA 7461/MUM/2016[2009-10]Status: DisposedITAT Mumbai23 Apr 2019AY 2009-10

Bench: Shri Shamim Yahya & Shri Amarjit Singh & Assessment Year-2009-10

Section 143(3)Section 271(1)Section 271(1)(c)

…hus, it is argued that no penalty can be levied merely for disallowance of some expenditure, which is not found ingenuine one. 3.3 In support of its contention, the AR has relied upon the following case laws:- 1) Western India Vegetable Products Ltd. v. CIT 26 ITR 151 (Born). 2) CI T v.ESPN Software India (P) Ltd. 301 ITR 368 Delhi High Court . 3) CIT v. Reliance Petroproducts Pvt. Ltd. 322 ITR 158 4) CIT v. Nalin P. Shah ITA No. 48 3013 (Born) Further in paper book two, the assessee has submitted the statement of profile of technical staff, details of pilot training expenses and training of its staff members.…

Assisstant Commissioner of Income Tax 6(2)(1), Mumbai vs. Credit Alpha Alternative Investments Advisors Private Limited, Mumbai

ITA 5294/MUM/2017[2012-13]Status: DisposedITAT Mumbai27 Mar 2019AY 2012-13

Bench: Shri Rajesh Kumar, Am & Shri Amarjit Singh, Jm

For Appellant: Shri Atul Ambavat (AR)For Respondent: Shri Abi Rama Kartikiyen (DR)
Section 143(1)Section 143(2)Section 46A

…titute of Chartered Accountants of India for Revenue-Recognition, also reiterates that revenue should be recognized only when there is certainty in realization of the consideration and not otherwise. Reliance is placed on the case of Hon'ble Mumbai High Court 26 ITR 151 (Bom) in Western India Vegetable Products Ltd. Vs CIT and ACT 6(1), Mumbai vs Department of Income tax dated 20/9/ 2012(Indivision Investment Advisors Limited) in which it was held that when the business was established and was ready to commence business, the business has to be taken as set up and expenses have to be allowed.” 5. On appraisal of t…

DCIT, New Delhi vs. M/S. Jatra Ruchi Cosmetics (India) Pvt. Ltd., New Delhi

The appeal of the revenue is dismissed

ITA 5877/DEL/2015[2010-11]Status: DisposedITAT Delhi20 Feb 2019AY 2010-11

Bench: Shri H.S.Sidhu & Shri Prashant Maharishidcit, Vs. Jatra Ruchi Cosmetics Circle-13(1), (India) Pvt. Ltd, Cr Building, Shop No. 1 To 4, World New Delhi Trade Centre, Barakhamba Road, New Delhi Pan: Aaccj2047F (Appellant) (Respondent)

For Appellant: NoneFor Respondent: Shri Janardan Das, Sr. DR
Section 143(3)

…ss". It is well settled that there is a difference between the date of setting up of a business and the date of commencement of the business. This distinction has been brought out by the Bombay High Court in Western India Vegetable Products Ltd. v. CIT [1954] 26 ITR 151 by observing that when a business is established and is ready to commence business then it can be said that it has been "set up" but before it is ready to commence business it is not "set up". There may be an interregnum between the date of setting up of the business and the date of actual commencement of the business but under the Act all expense…