Section 71 of the Income Tax Act

The decision most relied on for Section 71 is Mazagaon Dock Ltd. v. CIT & Excess Profits Tax (34 ITR 368), cited in 57 of the 52 judgments on BharatTax that turn on this section.

Leading authorities on Section 71

Mazagaon Dock Ltd. v. CIT & Excess Profits Tax
34 ITR 368 · 1958 · Supreme Court
57
citing judgments

Investments made by a holding company in its subsidiary can be considered a business activity, allowing related business expenditures to be deducted and not disallowed.

CIT v. Upasana
225 ITR 845 · 1997 · High Court
41
citing judgments

Expenditure incurred by a holding company for making investments in a subsidiary can be treated as business expenditure and is not disallowable, as such investment activity can itself constitute a business.

CIT v. Autokast Ltd.
248 ITR 110 · 2001 · Supreme Court
41
citing judgments

Interest earned on surplus funds deposited in short-term deposits is chargeable under section 56 as income from other sources. This interest cannot be treated as business income unless it is inextricably linked with the business operations.

Agro Portfolio (P.) Ltd. v. ITO
94 Taxmann.com 112 · 2018 · High Court
33
citing judgments

The Assessing Officer (AO) has the power to disturb the valuation of shares provided by the assessee's chartered accountant, even if Rule 11UA(2) is followed. If the AO doubts the valuation report, they are not necessarily bound to refer the matter to the Valuation Officer and can adopt a different method to determine the fair market value.

PCIT v. Bhanuprasad D. Trivedi, HUF
87 Taxmann.com 137 · 2017 · High Court
29
citing judgments
Goodyear (I) Ltd. v. ITO
73 ITD 189 · 2000 · High Court
27
citing judgments
Mazagaon Dock Ltd. Vs. CIT (1958) 34 ITR 368 (SC); CIT v. Upasana Hospital
83 ITR 377 · 1972 · Supreme Court
20
citing judgments
Raptakos Brett & Co. Ltd. v. DCIT
69 SOT 383 · 2015 · ITAT
20
citing judgments
CIT v. Gujarat Carbon Ltd.
254 ITR 294 · 2002 · High Court
19
citing judgments
Assistant Commissioner of Income Tax, Tirupur v. Velayudhaswamy Spinning Mills (P.) Ltd.
76 Taxmann.com 176 · 2016 · Supreme Court
19
citing judgments

Judgments on Section 71

TECHPARK HOTELS PVT LTD,GURGAON vs. ADDI. CIT SPECIAL RANGE-9, NEW DELHI

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

ITA 9450/DEL/2019[2015-16]Status: DisposedITAT Delhi20 Mar 2026AY 2015-16

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumartechpark Hotels Pvt. Ltd., Addl. Cit, Ground Floor, Central Wing, Special Range-9, Thapar House 124, Janpath, Vs. New Delhi. New Delhi-110001. Pan-Aabce5833H (Appellant) (Respondent) Assessee By Shri Neeraj Jain, Adv. & Shri Tavish Verma, Adv. Ms. Harpreet Kaur Hansra Sr. Dr Department By Date Of Hearing 20.01.2026 Date Of Pronouncement 20.03.2026 O R D E R Per Vimal Kumar, Jm: The Appeal Filed By The Assessee Is Against Order Dated 11.09.2019 Of The Learned Commissioner Of Income Tax (Appeals), New Delhi [Hereinafter Referred To As ‘The Ld. Cit(A)’] Passed U/S 250 Of The Income Tax Act, 1961, [Hereinafter Referred To As ‘The Act’] Arising Out Of Assessment Order Dated 30.12.2017 Of The Ld. Assessing Officer U/S 143(3) Of The Act For Assessment Year 2015-16. 2. Brief Facts Of The Case Are That The Assessee Filed Return Declaring Loss Of Rs.23,06,28,106/- On 30.11.2015. Notice U/S 143(2) Dated 22.09.2016 Was Issued. Notices U/S 142(1) Were Issued. Sh. Nikhil Agarwal & Shri Nirmal Malpani, Ca Appeared & Filed Details. On Completion Of Proceedings, Ld. Ao Vide Order Dated Techpark Hotels Pvt. Ltd. Vs. Acit

Section 142(1)Section 143(2)Section 143(3)Section 154Section 234DSection 250Section 56(2)Section 56(2)(viib)

VIDYUT EMPLOYEES CO-OPERATIVE HOUSING SOCIETY,HYDERABAD vs. DCIT, CIRCLE-6(1), HYDERABAD, HYDERABAD

In the result, appeal of the Assessee is partly allowed

ITA 1878/HYD/2025[2018-19]Status: DisposedITAT Hyderabad27 Feb 2026AY 2018-19

Bench: Shri Vijay Pal Raoआ.अपी.सं /Ita No.1878/Hyd./2025 Assessment Year 2018-2019 Vidyut Employees Co- The Dcit, Operative Housing Vs. Circle-6(1), Society, Hyderabad. Hyderabad – 500 004. Pin – 500 034. Telangana. Telangana. Pan Aaaav5182H (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: Sri Y V Bhanu Narayan Rao, Ca राज" व "ारा /Revenue By: Sri Suresh Babu Kn, Sr. Ar सुनवाई की तारीख/Date Of Hearing: 26.02.2026 घोषणा की तारीख/Pronouncement: 27.02.2026 आदेश/Order

For Appellant: Sri Y V Bhanu Narayan Rao, CAFor Respondent: Sri Suresh Babu KN, Sr. AR
Section 144BSection 147Section 148Section 148ASection 151ASection 250

MAX SQUARE LTD,NOIDA vs. ITO WARD-5(1)(5), NOIDA

In the result, the appeal of the assessee is dismissed

ITA 4100/DEL/2025[2021-22]Status: DisposedITAT Delhi13 Feb 2026AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal[Assessment Year : 2021-22] Max Square Ltd. Vs Ito L-12, Max Tower, Sector-16-B Ward-5(1)(5) Gautam Budha Nagar Noida Noida, Uttar Pradesh-201301 Pan-Aagcn5808G Appellant Respondent Appellant By Shri Anil Bhalla, Ca & Shri Nitin Kumar Sharma, Ca Respondent By Shri Gouranga Chandra Das, Sr. Dr Date Of Hearing 08.12.2025 Date Of Pronouncement 13.02.2026 Order Per Manish Agarwal, Am : The Present Appeal Is Filed By Assessee Against The Order Dated 30.05.2025 Of Ld. Commissioner Of Income Tax (A), National Faceless Appeal Centre (“Nfac”), Delhi [“Ld. Cit(A)”] In Appeal No. Nfac/2020-21/10308419 Passed U/S 250 Of The Income Tax Act, 1961 [“The Act”] Arising Out Of Assessment Order Dated 07.12.2023 Passed U/S 143(3) R.W.S. 144B Of The Act Pertaining To Assessment Year 2021-22. 2. Brief Acts Of The Case Are That The Assessee Is A Company, Engaged In The Business Of Real Estates Development & Started Construction Of Commercial Complex Project “Max Square” At Sector 129, Noida. The Assessee Borrowed Funds From Indusind Bank Amounting To Inr 29.45 Crores For The Construction & Further Raised Funds Through Issue Of Equity/Ccd’S. The Funds Which Remained Un-Utilized, Were Invested Temporary In Fdrs From Which Interest Was Received Of Inr 63,77,502/- & Was Credited To The Cost Of Construction. However, The Ao Has Held The Same As Taxable Under The Head “Income From Other Sources”.

Section 143(3)Section 250

UTTAR PRADESH DIPLOMA ENGINEERS MAHASANGH,LUCKNOW vs. DY/ASSISTANT COMMISSIONER OF INCOME TAX-1, LUCKNOW

In the result, all the appeals are partly allowed for statistical purposes

ITA 425/LKW/2025[2016-17]Status: HeardITAT Lucknow05 Feb 2026AY 2016-17

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

Section 28Section 56Section 71

SRI BRAMARAMBA PATTINA SOUHARDA SHAKARI SANGHA NIYAMITHA,MASKI vs. INCOME TAX OFFICER, WARD-1, RAICHUR

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

ITA 189/BANG/2025[2020-21]Status: DisposedITAT Bangalore05 Jan 2026AY 2020-21

Bench: Shri Prashant Maharishi, Vice – & Shri Soundararajan K.Assessment Year : 2020-21

For Appellant: Shri Siva Prasad Reddy, ITPFor Respondent: Shri Subramanian .S, JCIT-DR
Section 142(1)Section 143(2)Section 71Section 80PSection 80P(2)Section 80P(2)(a)

LIFESTYLE AND MEDIA HOLDINGS LIMITED,DELHI vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE 18(1), NEW DELHI, NEW DELHI

In the result, this appeal of the assessee is allowed

ITA 3714/DEL/2024[2015-16]Status: DisposedITAT Delhi31 Dec 2025AY 2015-16

Bench: Shri Sudhir Kumar & Shri Manish Agarwalita No.3714/Del/2024 (Assessment Year 2015-16) Dy. Commissioner Of Lifestyle & Media Holding Income Tax, Limited (Formerly Known As Ndtv Vs. C.R. Building, Lifestyle Holdings Limited) New Delhi. Plot No.09, Unit No. 055, Ground Floor Capia, Corporate Suites, Jasola, New Delhi-110025. Pan-Aadcn3076F (Appellant) (Respondent) Shri R.P. Mall, Adv. Assessee By Department By Ms. Ankush Kalra, Sr. Dr Date Of Hearing 29/10/2025 Date Of Pronouncement 31/12/2025 O R D E R [ Per Bench: All The Captioned Appeals Filed By The Assessee Against The Separate Orders Passed By Learned Commissioner Of Income Tax (Appeals)-6, Delhi [Ld. Cit(A)] For Ay 2014-15 To 1016017 & Having Common Issues, Therefore, They Are Dispose- Off By A Common Order. First, We Taken Assessee Appeal For Ay 2014-15 In Ita No. 64/Del/2019. Ita No.3714/Del/2024 & Lifestyle & Media Holdings Limited Vs. Dci

Section 143(3)Section 2(13)Section 71

LIFESTYLE AND MEDIA HOLDING LTD,NEW DELHI vs. ACIT, CIRCLE-18(1), NEW DELHI

In the result, this appeal of the assessee is allowed

ITA 255/DEL/2020[2016-17]Status: DisposedITAT Delhi31 Dec 2025AY 2016-17

Bench: Shri Sudhir Kumar & Shri Manish Agarwalita No.3714/Del/2024 (Assessment Year 2015-16) Dy. Commissioner Of Lifestyle & Media Holding Income Tax, Limited (Formerly Known As Ndtv Vs. C.R. Building, Lifestyle Holdings Limited) New Delhi. Plot No.09, Unit No. 055, Ground Floor Capia, Corporate Suites, Jasola, New Delhi-110025. Pan-Aadcn3076F (Appellant) (Respondent) Shri R.P. Mall, Adv. Assessee By Department By Ms. Ankush Kalra, Sr. Dr Date Of Hearing 29/10/2025 Date Of Pronouncement 31/12/2025 O R D E R [ Per Bench: All The Captioned Appeals Filed By The Assessee Against The Separate Orders Passed By Learned Commissioner Of Income Tax (Appeals)-6, Delhi [Ld. Cit(A)] For Ay 2014-15 To 1016017 & Having Common Issues, Therefore, They Are Dispose- Off By A Common Order. First, We Taken Assessee Appeal For Ay 2014-15 In Ita No. 64/Del/2019. Ita No.3714/Del/2024 & Lifestyle & Media Holdings Limited Vs. Dci

Section 143(3)Section 2(13)Section 71

TAHOORA PROTEINS,PANCHMAHAL vs. THE ITO, WARD-2 NOW WARD-1, GODHRA

In the result, the appeal filed by the Assessee is hereby allowed

ITA 1613/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad19 Dec 2025AY 2015-16

Bench: DR. BRR Kumar (Vice President), Shri T. R. Senthil Kumar (Judicial Member)

Section 115Section 115BSection 133ASection 14Section 143(3)Section 69

M. SONS GEMS N JEWELLERY PVT. LTD.,NEW DELHI vs. ACIT, CENTRAL CIRCLE-20, NEW DELHI

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

ITA 4549/DEL/2019[2015-16]Status: DisposedITAT Delhi17 Dec 2025AY 2015-16

Bench: Shri Anubhav Sharma& Shri Amitabh Shukla[Assessment Year: 2015-16] M. Sons Gems N Jewellery Acit Pvt. Ltd. 4852/24, First Floor, Central Circle – 20 Near Sanjivan Hospital Vs New Delhi Ansari Road, Daryaganj, New Delhi Pan-Aadcm9406A Appellant Respondent Assessee By None Revenue By Ms. Monika Singh, Cit Dr Date Of Hearing 28.10.2025 Date Of Pronouncement 17.12.2025

Section 143(2)Section 143(3)Section 153CSection 251Section 36(1)Section 36(1)(vii)Section 43B

ARUS PROPERTIES LLP,,KOLKATA vs. D.C.I.T., EXEMPT - 1, CIRCLE - 1(1),, KOLKATA

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

ITA 533/KOL/2025[2023-2024]Status: DisposedITAT Kolkata31 Oct 2025AY 2023-2024

Bench: Shri Duvvuru Rl Reddy, Vice-(Kz) & Shri Rajesh Kumari.T.A. No. 533/Kol/2025 Assessment Year: 2023-2024 Arus Properties Llp,………………………..….…Appellant 7B, Pretoria Street, ‘Alom House’, Kolkata-700071 [Pan:Abcfa4787H] -Vs.- Deputy Commissioner Of Income Tax,..…….Respondent Exempt-1, Circle-1(1), Kolkata, 10B, Middleton Row, Kolkata-700071 Appearances By: Shri P.J. Bhide, Fca, Appeared On Behalf Of The Assessee Ms. Archana Gupta, Addl. Cit, Sr. D.R., Appeared On Behalf Of The Revenue Date Of Concluding The Hearing: August 06, 2025 Date Of Pronouncing The Order: October 31, 2025 O R D E R

Section 132(9)Section 71

SAHARA INDIA CORP INVESTMENT LTD,LUCKNOW vs. ACIT, CENTRAL CIRCLE-1, NEW DELHI

The appeal of the assessee is partly allowed as above

ITA 1750/DEL/2022[2017-18]Status: DisposedITAT Delhi31 Oct 2025AY 2017-18

Bench: Shri Yogesh Kumar U.S. & Shri Avdhesh Kumar Mishraita No.1750/Del/2022, A.Y. 2017-18 Sahara India Corp Investment Assistant Commissioner Ltd., Of Income Tax, I-Kapoorthala Complex, Vs. Central Circle–1, Aliganj, Lucknow, Up Jhandewalan, New Delhi Pan: Aaacs1707R (Appellant) (Respondent) Appellant By Sh. Aditya Vohra, Advocate Sh. Arpit Goyal, Advocate Respondent By Sh. Ajay Kumar Arora, Sr. Dr Date Of Hearing 10/10/2025 Date Of Pronouncement 31/10/2025 Order Per Avdhesh Kumar Mishra, Am This Appeal For The Assessment Year (‘Ay’) 2017-18 Filed By The Assessee Is Directed Against The Order Dated 07.06.2022 Of The Commissioner Of Income Tax (Appeals)-23, New Delhi [‘Cit(A)’].

LAKHAANI INTERNATIONAL,FARIDABAD vs. DCIT, CIRCLE -1, FARIDABAD, FARIDABAD

In the result, appeal of the assessee is partly allowed for statistical purpose

ITA 1782/DEL/2025[2014-15]Status: DisposedITAT Delhi10 Oct 2025AY 2014-15

Bench: SHRI VIKAS AWASTHY (Judicial Member)

For Appellant: Ms. Aditi Gupta, & Shri Abdullah MustaqueemFor Respondent: Shri Manoj Kumar, Sr. DR
Section 139Section 139(1)Section 147Section 148Section 71

MANUBHA PRABHATSANG VAGHELA,MEHSANA vs. INCOME TAX OFFICER, WARD-5, PALANPUR

In the result, the both the appeals of the assessee are partly allowed

ITA 967/AHD/2025[2013-14]Status: DisposedITAT Ahmedabad17 Sept 2025AY 2013-14

Bench: Dr. B.R.R. Kumar, Vice-Shri Siddhartha Nautiyal

For Appellant: Shri Bhavik Nagori, ARFor Respondent: Shri C. Dharani Nath, Sr DR
Section 115BSection 144Section 250Section 71

MANUBHA PRABHATSANG VAGHELA,MEHSANA vs. INCOME TAX OFFICER, WARD-5, PALANPUR

In the result, the both the appeals of the assessee are partly allowed

ITA 966/AHD/2025[2012-13]Status: DisposedITAT Ahmedabad17 Sept 2025AY 2012-13

Bench: Dr. B.R.R. Kumar, Vice-Shri Siddhartha Nautiyal

For Appellant: Shri Bhavik Nagori, ARFor Respondent: Shri C. Dharani Nath, Sr DR
Section 115BSection 144Section 250Section 71

THE HARSIDDHI CO. OP. CREDIT SOCIETY LTD.,PANCHMAHAL vs. THE ACIT, ANAND CIRCLE, ANAND

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

ITA 1765/AHD/2024[2020-21]Status: DisposedITAT Ahmedabad17 Sept 2025AY 2020-21

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhaassessment Year: 2020-21

Section 143(3)Section 234ASection 270ASection 80P(2)(a)Section 80P(2)(d)

KAMAL KANT,DELHI vs. ITO, WARD-54(1), DELHI

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

ITA 3594/DEL/2023[2009-10]Status: DisposedITAT Delhi17 Sept 2025AY 2009-10

Bench: Sh. Sudhir Kumar & Sh. Manish Agarwalassessment Year: 2009-10 Kamal Kant Vs. Income Tax Officer Ward K-15 South Extension –One 54(1) Civic Centre Delhi New Delhi 110049 Pan No. Aaipk 1374K (Appellant) (Respondent)

Section 143(1)Section 154Section 234ASection 43(5)(d)Section 70Section 70aSection 71(2)

DHARMENDRASINH NIRMALSINH GOHIL,BHAVNAGAR vs. THE ITO, WARD-1(9), BHAVNAGAR

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

ITA 825/AHD/2025[2013-14]Status: DisposedITAT Ahmedabad25 Aug 2025AY 2013-14

Bench: Dr. Brr Kumar & Ms. Suchitra Kamble

For Appellant: Shri Mohit Balani, A.RFor Respondent: Shri Abhijit, Sr. DR
Section 1Section 132Section 142(1)Section 143(2)Section 144BSection 147Section 234ASection 271(1)(c)Section 68Section 70

NEOTISS PRIVATE LIMITED,MEDAK vs. ACIT, CIRCLE 8(1), HYDERABAD

In the result, appeal filed by the assessee is partly allowed for statistical purpose

ITA 436/HYD/2023[2016-17]Status: DisposedITAT Hyderabad20 Aug 2025AY 2016-17

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita No.436/Hyd/2023 (निर्धारण वर्ा/Assessment Year: 2016-17) Neotiss Private Limited Vs. Acit Medak Circle-8(1) Pan : Aaacc8221G Hyderabad

For Appellant: Shri Sashank Dundu, ARFor Respondent: Shri Siva Prasad SV, DR
Section 142(1)Section 40

PALTEX,MUMBAI vs. ITO WARD 24(3)(1) MUMBAI, MUMBAI

In the result, grounds No

ITA 1301/MUM/2025[2013-14]Status: DisposedITAT Mumbai20 Aug 2025AY 2013-14

Bench: Shri Pawan Singh(Hybrid Hearing) Paltex, Ito, Ward – 24(3)(1), Plot No.41, Pal House, Vs Piramal Chambers, Marol Co-Operative Society, Lalbaug, Lower Parel, Andherei Kural Road, Mumbai-400012 Andheri (East),Mumbai-400059. [Pan No. Aaafp 1973 F] Appellant / Assessee Respondent / Revenue

Section 254(1)Section 28Section 36(1)(iii)Section 40Section 57Section 68Section 71

SABEENA SILK MILLS ,MUMBAI vs. INCOME TAX OFFICER 31(1)(1), MUMBAI

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

ITA 1508/MUM/2025[2021-22]Status: DisposedITAT Mumbai14 Aug 2025AY 2021-22

Bench: Shri Narndra Kumar Billaiya & Shri Anikesh Banerjeesabeena Silk Mills Vs Income-Tax Officer 31(1)(1), Apurva Industrial Estate, Mumbai, Majwana Road, Marol Kautilya Bhavan, Bkc, Bandra, Mumbai-400 059 Mumbai-400 051 Pan: Aabfs3210R Appellant Respondent

For Appellant: Shri H.N. MotiwalaFor Respondent: Shri Leyaqat Ali Aafaqui (SR.DR.)
Section 143(1)Section 154Section 250Section 50

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