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

ACIT, Circle - 5(2), Kolkata vs. M/S. Thiess Mines India Pvt. Ltd., Kolkata

In the result, this issue is adjudicated in favour of the assessee

ITA 485/KOL/2018[2013-14]Status: DisposedITAT Kolkata09 Jan 2019AY 2013-14

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey)

Section 250

…g Officer in the assessment order has recorded that the expenses were incurred before actual business operation started on 1st October, 1995 and in view of judicial pronouncement of the Bombay High Court in Western India Vegetables Products Ltd. v. CIT [1954] 26 ITR 151 and Supreme Court in CWT v. Ramaraju Surgical Cotton Mills Ltd. [1967] 63 ITR 478 and Sarabhai Management Corpn. Ltd. v. CIT [1991] 192 ITR 151 (SC), the same should be disallowed as expenditure. We may only note that the Assessing Officer did not go into the factual matrix applicable to the assessee's case to find out the date of setting up of bu…

ACIT, Circle-5(2), Kolkata vs. M/S Thiess Mines India Pvt. Ltd., Kolkata

In the result, this issue is adjudicated in favour of the assessee

ITA 2163/KOL/2016[2012-13]Status: DisposedITAT Kolkata09 Jan 2019AY 2012-13

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey)

Section 250

…g Officer in the assessment order has recorded that the expenses were incurred before actual business operation started on 1st October, 1995 and in view of judicial pronouncement of the Bombay High Court in Western India Vegetables Products Ltd. v. CIT [1954] 26 ITR 151 and Supreme Court in CWT v. Ramaraju Surgical Cotton Mills Ltd. [1967] 63 ITR 478 and Sarabhai Management Corpn. Ltd. v. CIT [1991] 192 ITR 151 (SC), the same should be disallowed as expenditure. We may only note that the Assessing Officer did not go into the factual matrix applicable to the assessee's case to find out the date of setting up of bu…

The Dy.Commissioner of Income Tax Circle-2(1)(1), Ahmedabad vs. M/S. Gujarat International Finance Tech-City Co. Limited, Gandhinagar

In the result, both the grounds of appeal of the revenue are dismissed

ITA 1177/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad30 Nov 2018AY 2012-13
For Appellant: Shri Vijay Ranjan, A.RFor Respondent: Shri S.K. Dev, Sr. D.R
Section 115JSection 143(2)Section 143(3)Section 32Section 37Section 37(1)

…finite import ... ... Thus, the Hon'ble High Court has held that in order to determine whether the business of the assessee has commenced or not, it is essential to see what the business of the assessee is. In the case of Western India Vegetable Products Ltd. 26 ITR 151, the Hon'ble Bombay High Court has held as under: " "There is difference between the two expressions "setting up" and "commenced". The expression "setting up" means, as is defined in Oxford English Dictionary, "to place on f foot" or "to establish", and in contradiction to "commence". The distinction is that when is established and is ready to com…

Conglome Technconstruction Pvt. Ltd., Bangalore vs. Dt.C.I.T., Bangalore

In the result, the assessee’s appeal for Assessment Year 2009-10

ITA 1497/BANG/2014[2009-10]Status: DisposedITAT Bangalore05 Nov 2018AY 2009-10

Bench: Shri Sunil Kumar Yadav & Shri Jason P. Boaz

For Appellant: Shri. S. K. Mutsaddi, CAFor Respondent: Shri. Siddappaji, ACIT
Section 143(1)Section 143(3)Section 147Section 148Section 251(2)Section 92C

…business model and business cycle of the industry. In the present case under consideration, the business said to have set up, when it is ready or established to commence its operation, for which, we refer to the case law Western India Vegetable Products Ltd., 26 ITR 151 (Bom.). Similarly, in the case of Arcane Developers (supra) date of setting up of business depends upon facts and the nature of the business. This is the reason why we have referred to the objects for incorporation of the company and the main business activities in which assessee was engaged. IT(TP)A No. 1497/Bang/2014 Page 10 of 20 9. The ratio…

DCIT Cir 2(2)(1), Mumbai vs. L & T Mhi Boilers P.Ltd, Mumbai

Appeal stands dismissed

ITA 712/MUM/2016[2009-10]Status: DisposedITAT Mumbai07 Sept 2018AY 2009-10

Bench: Shri C.N. Prasad, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./I.T.A. No.712/Mum/2016 (िनधा"रणवष" / Assessment Year:2009-10) Deputy Commissioner Of Income Tax L & T Mhi Boilers Private Limited 3Rd Floor, L & T House, N.M.Marg, Circle-2(2)(1) बनाम/ Room No.545, Aaykar Bhavan, Vs. Ballard Estate, Fort M.K.Road, Mumbai-400 020 Mumbai-400 098 "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabcl-2635-C (अपीलाथ"/Appellant) (""थ" / Respondent) : Revenue By : R.P.Meena, Ld.Cit Dr Assessee By : Vijay Mehta, Ld. Ar सुनवाई की तारीख/ : 10/07/2018 Date Of Hearing घोषणा की तारीख / : 07/09/2018 Date Of Pronouncement

For Appellant: Vijay Mehta, Ld. ARFor Respondent: R.P.Meena, Ld.CIT DR
Section 143(3)Section 14A

…set-up notwithstanding the fact that 9 L & T MHI Boilers Pvt.Ltd Assessment Year-2009-10 the actual commencement of the business has not taken place. The Hon’ble Bombay High Court in the landmark case of Western Indian Vegetables Products Ltd. v. CIT [1954] 26 ITR 151 aptly explained the distinction between concept of commencement and setting up of business and observed as under: "It seems to us, that the expression 'setting up' means, as is defined in the Oxford English Dictionary, to place on foot or to establish, and in contradistinction to 'commence'. The distinction is this that when a business is establis…

DCIT -1(3)(2), Mumbai vs. Tata Lockheed Martinaerostructures Ltd., Hyderabad

In the result , appeal of the Revenue is partly allowed as indicated above

ITA 2667/MUM/2016[2011-12]Status: DisposedITAT Mumbai08 Aug 2018AY 2011-12

Bench: Shri Saktijit Dey & Shri Ramit Kochar

For Appellant: Ms. Arati VissanjiFor Respondent: Shri V. Justin,DR
Section 143(3)Section 14A

…आयकर अपीऱीय अधिकरण “E” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर अपीऱ सं./I.T.A. No.2667/Mum/2016 (नििाारण वर्ा / Assessment Year : 2011-12) बिाम/ DCIT-1(3)(2) Tata Lockheed Martin Room no. 540, 5 t h floor, Aerostructures Ltd. Aayakar Bhavan, M.K Road, Survey No. 64, Unit No. 1, v. Mumbai-400020 Building no. 9, 6 t h floor, Raheja Mindspace, Madhapur, Hyderabad-500081, Andhra Pradesh स्थायी ऱेखा सं./ PAN : AADCT5968N (अपीऱाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue by : Shri V. Jus…

DCIT, Circle-2(1), Hyderabad vs. Karvy Global Services Limited, Hyderabad

The appeals are dismissed

ITA 745/HYD/2017[2006-07]Status: DisposedITAT Hyderabad08 Jun 2018AY 2006-07

Bench: Smt. P. Madhavi Devi & Shri B. Ramakotaiah

For Appellant: Shri P. Murali Krishna, ARFor Respondent: Smt. Geetender Mann, DR
Section 147Section 3

…on the principles laid down by the jurisdictional High Court in the case of CIT Vs. Sponge Iron India Ltd., [201 ITR 770] (AP) and also on the principles laid down by the Hon'ble Bombay High Court in the case of Western India Vegetable Products Ltd., Vs. CIT [26 ITR 151] and CIT Vs. Saurashtra Cement and Chemical Industries Ltd., [91 ITR 170] (Gujarat). It also relied on various other case law as extracted by the CIT(A) in his order. 4. After considering the above, Ld.CIT(A) allowed the contentions of assessee by stating as under: “6. I have considered the assessment order, grounds of appeal and the AR submissi…

DCIT, Circle-2(1), Hyderabad vs. Karvy Global Services Limited, Hyderabad

The appeals are dismissed

ITA 1659/HYD/2016[2007-08]Status: DisposedITAT Hyderabad08 Jun 2018AY 2007-08

Bench: Smt. P. Madhavi Devi & Shri B. Ramakotaiah

For Appellant: Shri P. Murali Krishna, ARFor Respondent: Smt. Geetender Mann, DR
Section 147Section 3

…on the principles laid down by the jurisdictional High Court in the case of CIT Vs. Sponge Iron India Ltd., [201 ITR 770] (AP) and also on the principles laid down by the Hon'ble Bombay High Court in the case of Western India Vegetable Products Ltd., Vs. CIT [26 ITR 151] and CIT Vs. Saurashtra Cement and Chemical Industries Ltd., [91 ITR 170] (Gujarat). It also relied on various other case law as extracted by the CIT(A) in his order. 4. After considering the above, Ld.CIT(A) allowed the contentions of assessee by stating as under: “6. I have considered the assessment order, grounds of appeal and the AR submissi…

ITO 3(1)(4), Mumbai vs. G.E. Global Sourcing India P.Ltd, Mumbai

In the result appeal of the Revenue in I

ITA 4194/MUM/2016[2009-10]Status: DisposedITAT Mumbai09 Nov 2017AY 2009-10

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 4194/Mum/2016 (नििाारण वर्ा / Assessment Year : 2009-10)

For Appellant: NoneFor Respondent: Shri V. Vidyadhar
Section 271Section 271(1)(c)

…the case may be, the date on which the source of income newly comes into existence and ending with the said financial year. Reference is also drawn to the judgment of Hon'ble Bombay High Court in the case of Western India Vegetable Products Ltd. v. CIT [1954] 26 ITR 151 whereby the Hon'ble Bombay High Court has drawn a distinction between the setting up of business and the commencement of business as under: 'Now, turning to our statute, the deductions claimed are under Section 10(2) and they are in relation to a business and in order that those deductions can be allowed, the business must be carried on by the ass…

M/S. Religare Macquarie Wealth Management Ltd., New Delhi vs. ACIT, New Delhi

In the result ground No. 5 of the appeal of the assessee is allowed

ITA 2396/DEL/2013[2008-09]Status: DisposedITAT Delhi09 Oct 2017AY 2008-09

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishim/S. Religare Macquarie Wealth Vs. Acit, Management Ltd, Circle-15(1), D-3, P-3B, District Centre, New Delhi Saket, New Delhi Pan:Aadcr5677C (Appellant) (Respondent)

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Atiq Ahmad, Sr. DR
Section 14ASection 28Section 36Section 37(1)

…ich assessee has started putting in place w.e.f. 01/04/2007. At page No. 148 of the paper book assessee has given the detail of the salary for the month of April 2007. Hon‟ble Bombay High Court in western India vegetable products private limited versus CIT in 26 ITR 151 has held that that businesses held to be set up when it is established and ready to commence the business. Therefore, all expenditure incurred when the businesses set up till the time it commences the business are also deductible as revenue expenditure. The final distinction has been made by the courts that when the businesses are set up all the e…

ACIT, New Delhi vs. M/S. Asf Insignia Sez Pvt. Ltd., New Delhi

Appeal is dismissed

ITA 6732/DEL/2014[2010-11]Status: DisposedITAT Delhi15 Sept 2017AY 2010-11

Bench: Shri O.P. Kant & Shri Amit Shuklain Ita Nos. 6732 & 6733/Del/2014 Assessment Years: 2010-11 & 2011-12 Acit, Circle-3(2), Vs. Asf Insignia Sez Pvt. Ltd. New Delhi (Earlier Known As Canton Buildwell Pvt. Ltd.), 11, Babar Lane, Bengali Market, New Delhi (Applicant) (Respondent) (Pan: Aaccc7148L) Co. No. 194/Del/2015 Assessment Year: 2011-12 Asf Insignia Sez Pvt. Ltd. Vs. Acit, Circle-3(2), (Earlier Known As Canton New Delhi Buildwell Pvt. Ltd.), 11, Babar Lane, Bengali Market, New Delhi (Applicant) (Respondent) (Pan: Aaccc7148L) Revenue By: Shri R.C. Dande, Sr. Dr Assessee By: Ms. Rano Jain, Adovcate Shri Ashish Goel, Ca

For Appellant: Ms. Rano Jain, AdovcateFor Respondent: Shri R.C. Dande, Sr. DR
Section 143(3)

…ITA Nos. 6732 & 6733/Del/2014 CO No. 194/Del/2015 Assessment Years: 2010-11 & 2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH “A” BENCH NEW DELHI) BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER & SHRI AMIT SHUKLA, JUDICIAL MEMBER In ITA Nos. 6732 & 6733/Del/2014 Assessment Years: 2010-11 & 2011-12 ACIT, Circle-3(2), Vs. ASF Insignia SEZ Pvt. Ltd. New Delhi (Earlier known as Canton Buildwell Pvt. Ltd.), 11, Babar Lane, Bengali Market, New Delhi (Applicant) (Respondent) (PAN: AACCC7148L) CO. No. 194/Del/2015 Assessment Year: 2011-12 ASF Insignia SEZ Pvt. Ltd. Vs. ACIT, Circle-3(2), (Earlier known as Canton New…

ACIT, New Delhi vs. M/S. Ats Estates Pvt. Ltd., New Delhi

Appeal is dismissed

ITA 6753/DEL/2014[2008-09]Status: DisposedITAT Delhi11 Sept 2017AY 2008-09

Bench: Shri O.P. Kant & Shri Amit Shuklain Ita Nos. 6732 & 6733/Del/2014 Assessment Years: 2010-11 & 2011-12 Acit, Circle-3(2), Vs. Asf Insignia Sez Pvt. Ltd. New Delhi (Earlier Known As Canton Buildwell Pvt. Ltd.), 11, Babar Lane, Bengali Market, New Delhi (Applicant) (Respondent) (Pan: Aaccc7148L) Co. No. 194/Del/2015 Assessment Year: 2011-12 Asf Insignia Sez Pvt. Ltd. Vs. Acit, Circle-3(2), (Earlier Known As Canton New Delhi Buildwell Pvt. Ltd.), 11, Babar Lane, Bengali Market, New Delhi (Applicant) (Respondent) (Pan: Aaccc7148L) Revenue By: Shri R.C. Dande, Sr. Dr Assessee By: Ms. Rano Jain, Adovcate Shri Ashish Goel, Ca

For Appellant: Ms. Rano Jain, AdovcateFor Respondent: Shri R.C. Dande, Sr. DR
Section 143(3)

…ITA Nos. 6732 & 6733/Del/2014 CO No. 194/Del/2015 Assessment Years: 2010-11 & 2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH “A” BENCH NEW DELHI) BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER & SHRI AMIT SHUKLA, JUDICIAL MEMBER In ITA Nos. 6732 & 6733/Del/2014 Assessment Years: 2010-11 & 2011-12 ACIT, Circle-3(2), Vs. ASF Insignia SEZ Pvt. Ltd. New Delhi (Earlier known as Canton Buildwell Pvt. Ltd.), 11, Babar Lane, Bengali Market, New Delhi (Applicant) (Respondent) (PAN: AACCC7148L) CO. No. 194/Del/2015 Assessment Year: 2011-12 ASF Insignia SEZ Pvt. Ltd. Vs. ACIT, Circle-3(2), (Earlier known as Canton New…

M/S. Malti Builders Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 649/DEL/2013[2008-09]Status: DisposedITAT Delhi22 Jun 2017AY 2008-09

Bench: Sh. N. K. Saini, Am & Smt. Beena A. Pillai, Jm Ita No. 649/Del/2013 : Asstt. Year : 2008-09 Ita No. 650/Del/2013 : Asstt. Year : 2009-10 Malti Builders Pvt. Ltd., Vs Asstt. Commissioner Of Income 41, Ff-1, 1St Floor, Friends Tax, Central Circle-23, Colony(East), New Delhi-110065 New Delhi-110055 (Appellant) (Respondent) Pan No. Axmpk7608P Assessee By : Sh. Sanjay Garg, Ca Revenue By : Ms. Rachna Singh, Cit Dr Date Of Hearing : 24.04.2017 Date Of Pronouncement : 22.06.2017 Order Per N. K. Saini, Am: These Two Appeals By The Assessee Are Directed Against The Separate Orders Each Dated 26.11.2012 Of Ld. Cit(A)-Xxxiii, New Delhi.

For Appellant: Sh. Sanjay Garg, CAFor Respondent: Ms. Rachna Singh, CIT DR
Section 153ASection 22Section 24

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI Before Sh. N. K. Saini, AM and Smt. Beena A. Pillai, JM ITA No. 649/Del/2013 : Asstt. Year : 2008-09 ITA No. 650/Del/2013 : Asstt. Year : 2009-10 Malti Builders Pvt. Ltd., Vs Asstt. Commissioner of Income 41, FF-1, 1st Floor, Friends Tax, Central Circle-23, Colony(East), New Delhi-110065 New Delhi-110055 (APPELLANT) (RESPONDENT) PAN No. AXMPK7608P Assessee by : Sh. Sanjay Garg, CA Revenue by : Ms. Rachna Singh, CIT DR Date of Hearing : 24.04.2017 Date of Pronouncement : 22.06.2017 ORDER Per N. K. Saini, AM: These two appeals by the assessee are d…

Talpady Umashankar Shenava, Mumbai vs. DCIT Cir 6(1), Mumbai

In the result, appeal of assessee is dismissed

ITA 6785/MUM/2013[2010-11]Status: DisposedITAT Mumbai12 May 2017AY 2010-11

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am Talpady Umashankkar Shenava Dy. Commissioner Of Income Tax, Flat No. 1401 A Wing, 14 Th Aayakar Bhavan, Floor, Lady Rattan Towers, Mumbai Dainik Shivker Marg, Off Dr. Vs. A.E. Moses Rd Worli Mumbai-400 018 Pan No. Aglps5429C .. Appellant Respondent Assessee By .. Shri Mandar Vaidya. Ar .. Shri Naveen Gupta, Dr Revenue By Date Of Hearing .. 03-05-2017 .. Date Of Pronouncement 12-05-2017 O R D E R Per Mahavir Singh, Jm:

Section 143(3)

…ssessee against the claim of business expenditure clearly reveals that the same is make believe story. The learned Counsel for the assessee relied on the decision of Hon’ble Bombay High Court in the case of Western India Vegetable Products Ltd. Vs. CIT (1954) 26 ITR 151 (Bom). But we find that the issue is not of setting of business or institution of business before us now, which is before Hon’ble Bombay High Court, but here the very existence of business is in doubt. The assessee is unable to prove the claim of business expenses, hence, we are of the view that the lower authorities have rightly disallowed the ex…

DCIT Cen Cir 2(3), Mumbai vs. Hagwood Commercial Developers P.Ltd, Mumbai

In the result appeal of the assessee in ITA no

ITA 1540/MUM/2015[2012-13]Status: DisposedITAT Mumbai08 Feb 2017AY 2012-13

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1306/Mum/2015 ("नधा"रण वष" / Assessment Year : 2012-13) M/S Hagwood Commercial Acit, Cc -13, बनाम/ Developers Pvt. Ltd., Old Cgo, V. 105/106, Provogue House, M.K. Road, Off. New Link Road, Churchgate, Andheri (West), Mumbai. Mumbai – 400 053. "थायी लेखा सं./Pan : Aabch7508Q (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: Shri Rushabh MehtaFor Respondent: Dr. Santosh Mankaskar,DR
Section 132Section 143(3)Section 153ASection 153C

…nd 1539/Mum/2015 into or started one or the other of its component activities. In the present case, the appellant set up its business in AY 2008-09. Reliance was placed on the decision of Bombay High Court in the case of M/s Western India Vegetable Products (26 ITR 151) wherein it was held that the expenses should be allowed in the year in which business is set up, and a distinction was drawn between business being setup and commencement of business. It is not necessary that income should be earned for expenses to be claimed as held by Delhi High Court in the case of CIT v/s E. Funds International India (162 Tax…

DCIT Cen Cir 2(3), Mumbai vs. Alliance Mall Developers Co. P.Ltd, Mumbai

In the result appeal of the assessee in ITA no

ITA 1539/MUM/2015[2012-13]Status: DisposedITAT Mumbai08 Feb 2017AY 2012-13

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1306/Mum/2015 ("नधा"रण वष" / Assessment Year : 2012-13) M/S Hagwood Commercial Acit, Cc -13, बनाम/ Developers Pvt. Ltd., Old Cgo, V. 105/106, Provogue House, M.K. Road, Off. New Link Road, Churchgate, Andheri (West), Mumbai. Mumbai – 400 053. "थायी लेखा सं./Pan : Aabch7508Q (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: Shri Rushabh MehtaFor Respondent: Dr. Santosh Mankaskar,DR
Section 132Section 143(3)Section 153ASection 153C

…nd 1539/Mum/2015 into or started one or the other of its component activities. In the present case, the appellant set up its business in AY 2008-09. Reliance was placed on the decision of Bombay High Court in the case of M/s Western India Vegetable Products (26 ITR 151) wherein it was held that the expenses should be allowed in the year in which business is set up, and a distinction was drawn between business being setup and commencement of business. It is not necessary that income should be earned for expenses to be claimed as held by Delhi High Court in the case of CIT v/s E. Funds International India (162 Tax…

Alliance Mall Developers Co. P. Ltd, Mumbai vs. ACIT Cen Cir 13, Mumbai

In the result appeal of the assessee in ITA no

ITA 1308/MUM/2015[2012-13]Status: DisposedITAT Mumbai08 Feb 2017AY 2012-13

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1306/Mum/2015 ("नधा"रण वष" / Assessment Year : 2012-13) M/S Hagwood Commercial Acit, Cc -13, बनाम/ Developers Pvt. Ltd., Old Cgo, V. 105/106, Provogue House, M.K. Road, Off. New Link Road, Churchgate, Andheri (West), Mumbai. Mumbai – 400 053. "थायी लेखा सं./Pan : Aabch7508Q (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: Shri Rushabh MehtaFor Respondent: Dr. Santosh Mankaskar,DR
Section 132Section 143(3)Section 153ASection 153C

…nd 1539/Mum/2015 into or started one or the other of its component activities. In the present case, the appellant set up its business in AY 2008-09. Reliance was placed on the decision of Bombay High Court in the case of M/s Western India Vegetable Products (26 ITR 151) wherein it was held that the expenses should be allowed in the year in which business is set up, and a distinction was drawn between business being setup and commencement of business. It is not necessary that income should be earned for expenses to be claimed as held by Delhi High Court in the case of CIT v/s E. Funds International India (162 Tax…

Higwood Commerical Developers P.Ltd, Mumbai vs. ACIT Cen Cir 13, Mumbai

In the result appeal of the assessee in ITA no

ITA 1306/MUM/2015[2012-13]Status: DisposedITAT Mumbai08 Feb 2017AY 2012-13

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1306/Mum/2015 ("नधा"रण वष" / Assessment Year : 2012-13) M/S Hagwood Commercial Acit, Cc -13, बनाम/ Developers Pvt. Ltd., Old Cgo, V. 105/106, Provogue House, M.K. Road, Off. New Link Road, Churchgate, Andheri (West), Mumbai. Mumbai – 400 053. "थायी लेखा सं./Pan : Aabch7508Q (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: Shri Rushabh MehtaFor Respondent: Dr. Santosh Mankaskar,DR
Section 132Section 143(3)Section 153ASection 153C

…nd 1539/Mum/2015 into or started one or the other of its component activities. In the present case, the appellant set up its business in AY 2008-09. Reliance was placed on the decision of Bombay High Court in the case of M/s Western India Vegetable Products (26 ITR 151) wherein it was held that the expenses should be allowed in the year in which business is set up, and a distinction was drawn between business being setup and commencement of business. It is not necessary that income should be earned for expenses to be claimed as held by Delhi High Court in the case of CIT v/s E. Funds International India (162 Tax…

DCIT Cir 3(3)(1), Mumbai vs. Shapoorji Pallonji Roads P.Ltd, Mumbai

ITA 2490/MUM/2015[2011-12]Status: DisposedITAT Mumbai07 Feb 2017AY 2011-12

Bench: Shri Amit Shukla () & Shri Ashwani Taneja ()

Section 143(3)

…t itself carried forward those amounts as Loans and Advances and did not claim them as expenditure in the Profit and Loss Account.” The assessee relied upon the following judgements in support of its contention:- 1. Western India Vegetable Products Ltd vs CIT 26 ITR 151 (Bom) 2. CIT vs Sarabhai Management Corporation Ltd 192 ITR 151(SC) 3. Western India Seafood Pvt Ltd (1993) 199 ITR 777 (Guj) It was further submitted that all the above mentioned cases law down that for being entitled to claim expenses, it is not necessary that business should have commenced. It is sufficient if the business has been set up. Th…

ACIT, New Delhi vs. M/S. Geo Connect Ltd., New Delhi

In the result, appeals filed by the assessee in ITA Nos

ITA 5851/DEL/2011[2002-03]Status: DisposedITAT Delhi17 Jan 2017AY 2002-03

Bench: Sh. H.S. Sidhu & Sh. O.P. Kant

Section 143(2)Section 143(3)Section 195Section 271(1)(c)Section 9(1)(vii)

…recruit employees, there training, establishment of showrooms by taking places on rent and, advertisements etc. The Hon’ble High Court referred to the decision of Hon’ble Bombay High Court in the case of Western India Vegetables Products Ltd. Vs. CIT, (1954) 26 ITR 151, wherein it is held that there may be an interregnum, i.e., there may be an interval between the business which is setup and a business which is commenced and before the commencement of the business all the expenses during the interregnum would be permissible deduction. 6.7.2 In the case of Omniglobe Information Tech India Ltd Vs. CIT (supra), the…