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M/S. Paliwal Infrastructure Pvt. Ltd., ... vs Dcit, New Delhi on 11 December, 2019 cites

Commissioner Of Income-Tax vs Dalmia Cement (B.) Ltd. on 4 September, 2001

In the process, the Court also agreed that the view taken by the Delhi High Court in 'CIT v. Dalmia Cement (B.) Ltd.' [2002 (254) ITR 377] wherein the High Court had held that once it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. It further held that no businessman can be compelled to maximize his profit and that the income tax authorities must put themselves in the shoes of the assessee and see how a prudent businessman would act. The authorities must not look at the matter from their own view point but that of a prudent businessman.
Delhi High Court Cites 18 - Cited by 103 - A Pasayat - Full Document

Commissioner Of Income Tax, Madrasand ... vs M/S Dalmia Cement (Bharat) Ltd on 16 August, 1995

"31. We agree with the view taken by the Delhi High Court in CIT Vs. Dalmia Cement(Bharat) Ltd. (2002) 174 CTR (Del) 188: (2002) 254 ITR 377(Del) that once it is established that there was nexus between the expenditure and the purpose of the business(which need not necessarily be the business of the assessee itself), the Revenue cannot justifiably claim to put itself in the armchair of the businessman or in the position of the board of directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. No businessman can be compelled to maximize its profit. The IT authorities must put themselves in the shoes of the assessee and see how a prudent businessman would act. The authorities must not look at the matter from their own view point but that of a prudent businessman. As already stated above, we have to see the transfer of the borrowed funds to a sister concern from the point of view of commercial expediency and not from the point of view whether the amount was advanced for earning profits.
Supreme Court of India Cites 33 - Cited by 315 - B P Reddy - Full Document
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