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Documents citing Palani Andavar Mills Ltd. vs Commissioner Of Income-Tax on 29 July, 1974

Dcit-4(1), Indore, Indore vs Maral Overseas Ltd, Khargone on 20 March, 2026

It is a settled proposition that if an assessee contributes towards creation of or supporting a public facility for the benefit of the assessee's employees, then the contribution will partake the character of expenditure wholly and exclusively for the propose of business. This view is supported by decision of Bombay High Court in CIT v. Belpahar Refractories Ltd. (109 ITR 667): Palani Andavar Mills Ltd. v. CIT (110 ITR 742) : CIT v. Rupsa Rice Mills (104 ITR 249) and other cases.
Income Tax Appellate Tribunal - Indore Cites 35 - Cited by 0 - Full Document

M/S. The Sandur Manganese & Iron Ores ... vs Assistant Commissioner Of Income Tax, ... on 29 June, 2022

15. Palani Andavar Mills Ltd. v. CIT is another decision of the Madras High Court, wherein the amount spent by the assessee (which was only a part of the total cost) on the construction of an elementary school on the land of the Employees' Housing Co-operative Society was held as not an amount spent towards a trading transaction. The court found that the nature as well as the manner in which the same were dealt with in the accounts showed that the assessee intended only in advance loans to its employees and this circumstance weighed with the court in its ultimate Page 26 ITA Nos. 1964 & 1965/Bang/2018 conclusion. The claim of the assessee was based on its writing off of these amounts as not recoverable. The court held that the writing-off of the loans was not relatable to the assessee's trading transaction.
Income Tax Appellate Tribunal - Bangalore Cites 51 - Cited by 0 - Full Document

Goetze (India) Ltd. vs Income-Tax Officer on 23 August, 1983

In Palani Andavar Mills Ltd.'s case (supra) the assessee expended a sum of Rs. 12,039 being a part of the total amount spent on the construction of an elementary school on the land belonging to the Employees' Housing Co-operative Society, the balance amount for the construction being met by the society. On the completion of the building, it was handed over to the municipality to be run as school for the benefit of the children of the employees of the assessee. This amount was transferred to labour welfare account during the close of the year. The departmental authorities and the Tribunal treated this sum as a capital expenditure. The High Court in the reference held that the school building was from its very inception not intended to be an asset of the company but was to be part of a welfare scheme for the educational facilities of the children of the employees of the assessee and, hence, the amount in question was a revenue expenditure.
Income Tax Appellate Tribunal - Delhi Cites 26 - Cited by 4 - Full Document

Commissioner Of Income Tax vs Rajasthan Spg. And Wvg. Mills Ltd. on 17 November, 2003

20. Palam Andavar Mills Ltd. v. CIT (1977) 110 ITR 742 (Mad) is a case in which the assessee had constructed a school building and it was handed over to the municipality to be run as school for the benefit of children of the employees of the assessee. The expenses were held to be revenue expenditure allowable under Section 10(2)(xv) of the Act of 1922.
Rajasthan High Court - Jaipur Cites 19 - Cited by 0 - Full Document

Commissioner Of Income-Tax vs Karuna Mica Co. on 20 February, 1987

43. Learned counsel for the assessee then relied upon the case of Palani Andavar Oil Mills Ltd. v. CIT [1977] 110 ITR 742 (Mad). In this case, the assessee expended a sum of Rs. 12,039 being a part of the total amount spent on the construction of an elementary school on the land belonging to the Employees' Housing Co-operative Society, the balance amount for the construction being met by the society. On the completion of the building, it was handed over to the Municipality to be run as a school for the benefit of the children of the employees of the assessee. This amount was transferred to the Labour and Welfare Account at the close of the year.
Patna High Court Cites 12 - Cited by 4 - Full Document

Commissioner Of Income-Tax vs Mysore Cements Ltd. on 5 January, 1990

26. Palani Andavar Mills Ltd. v. CIT is another decision of the Madras High Court, wherein the amount spent by the assessee (which was only a part of the total cost) on the construction of an elementary school on the land of the Employees' Housing Co-operative Society was held as not an amount spent towards a trading transaction. The court found that the nature as well as the manner in which the same were dealt with in the accounts showed that the assessee intended only in advance loans to its employees and this circumstance weighed with the court in its ultimate conclusion. The claim of the assessee was based on its writing off of these amounts as not recoverable. The court held that the writing-off of the loans was not relatable to the assessee's trading transaction.
Karnataka High Court Cites 12 - Cited by 8 - Full Document
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