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Commissioner Of Income-Tax vs New Savan Sugar And Gur Refining Co. Ltd. on 18 April, 1989

Further, the Hon'ble Court, following its own decision in CIT v. Savan Sugar & Gur Refining Co., Ltd (supra) and the ruling of the Allahabad High Court in the case of CIT v. Rampur Timber & Turnery Co. Ltd (supra), had decided that a limited company, even if it does not carry ITA No.1252, 1243, 1244,1247,1250,1253 and 1254 (AY: 2002-03) 39 Shri Hirenbhai K. Patel and 6 others Vs ACIT, Cent. Cir-1 (1), Ahmedabad on business and merely derives income from other sources has to maintain its establishment for complying with other statutory requirements so long as it is in operation and, therefore, the expenses on establishment etc., incurred are wholly and exclusively for the activities to earn income and, hence, are allowable deduction in computing income from other sources.
Calcutta High Court Cites 9 - Cited by 28 - Full Document

Commissioner Of Income-Tax vs Ganga Properties Ltd. on 17 June, 1969

(i) In the case of CIT v. Ganga Properties Ltd (supra), the Hon'be Calcutta High Court has ruled that "A limited company even if it does not carry on business, even if it derives income from other sources, has to maintain its establishment for complying with statutory obligation so long as it is in operation and its name is not struck off the register or unless the company is dissolved. So long as the company is in operation, it has to maintain the status as a company and it has to discharge certain legal obligation and for that purpose it is necessary to appoint clerical staff and secretary or accountant and incur incidental expenses. In this background, the conclusion of the Tribunal that the expenses incurred were wholly and exclusively for the activities to earn income was a reasonable conclusion."
Calcutta High Court Cites 28 - Cited by 103 - S Mukharji - Full Document
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