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Goetze (India) Ltd. vs Cit on 24 March, 2006

23. Learned counsel lastly submits that the assessee's sixth substantive ground seeks deduction of 1,91,524/- representing expenditure relatable to the relevant 13 ITA 1962/Del to 1967/Del/2016 & ITA 2357 to 2362/Del/2016 assessment year but debited in the P&L a/c of the succeeding assessment year i.e. in the nature of "prior period expenditure". Our attention is further invited to this tribunal's common order in it's appeal ITA 1955 to 1959/Del/2016 relevant to A.Y. 2001-02 to A.Y. 2005-06 pages 142 para 14, wherein the very claim of prior period expenditure was restored back to the CIT(A). And that the instant ground is indeed revenue neutral instance wherein the impugned expenditure ought to be allowed either in the year of accrual or that of crystallization; as the case may be. We are further informed that the learned lower authorities have followed Goetz India Ltd. v. CIT (supra) to reject the instant last claim as well.
Supreme Court of India Cites 3 - Cited by 1246 - Full Document

M/S. Sahney Steel & Press Works Ltd. ... vs Commissioner Of Income Tax.Andhra ... on 19 September, 1997

5. Learned counsel reiterates the assessee's stand all along that the above subsidy/ incentives receivable under the sugar industrial promotion policy, 2004 is in the nature of a capital receipt going by the "purpose test" in light of Sahney Steel and Press Works Ltd. & Others v. CIT (1997) 228 ITR 253 (SC); CIT v. Pony Sugar & Chemicals Ltd. (2008) 306 ITR 392 (SC); & CIT v. Chaphalkar Brothers (2018) 400 ITR 279 (SC).
Supreme Court of India Cites 10 - Cited by 343 - Full Document

Commnr. Of Income Tax, Madras vs M/S. Ponni Sugars & Chemicals Ltd on 16 September, 2008

5. Learned counsel reiterates the assessee's stand all along that the above subsidy/ incentives receivable under the sugar industrial promotion policy, 2004 is in the nature of a capital receipt going by the "purpose test" in light of Sahney Steel and Press Works Ltd. & Others v. CIT (1997) 228 ITR 253 (SC); CIT v. Pony Sugar & Chemicals Ltd. (2008) 306 ITR 392 (SC); & CIT v. Chaphalkar Brothers (2018) 400 ITR 279 (SC).
Supreme Court of India Cites 5 - Cited by 315 - S H Kapadia - Full Document

Commissioner Of Income Tax-I, Kolhapur vs M/S Chaphalkar Brothers Pune on 7 December, 2017

5. Learned counsel reiterates the assessee's stand all along that the above subsidy/ incentives receivable under the sugar industrial promotion policy, 2004 is in the nature of a capital receipt going by the "purpose test" in light of Sahney Steel and Press Works Ltd. & Others v. CIT (1997) 228 ITR 253 (SC); CIT v. Pony Sugar & Chemicals Ltd. (2008) 306 ITR 392 (SC); & CIT v. Chaphalkar Brothers (2018) 400 ITR 279 (SC).
Supreme Court - Daily Orders Cites 8 - Cited by 79 - R F Nariman - Full Document

Chainrup Sampatram vs Commissioner Of Income-Tax,West ... on 9 October, 1953

8. That being the case and despite the assessee having argued in favour of the "purpose" test (supra), we are of the considered view that since the issue herein is very much pending before their lordships for final adjudication, it would indeed be pre mature for us to apply "accrual" principle at this stage for lack of any reasonable certainty in recognition of revenue as per Chainrup Sampatram v. CIT (1953) 24 ITR 481 (SC). Their lordships have categorically held that a revenue receipt could be recognized as an income only in case there arise a reasonable certainty thereof. We reiterate that the Revenue's clear cut case is that the same has indeed been not actually received all along as the dispute is pending before hon'ble 7 ITA 1962/Del to 1967/Del/2016 & ITA 2357 to 2362/Del/2016 apex court. We, accordingly are of the considered view that the instant common first and foremost issue between the parties is required to be re-adjudicated by the learned Assessing Officer after it is decided in the hon'ble supreme court so as to avoid multiplicity of proceedings. We order accordingly. It is made clear tht the assessee indeed be at liberty to raise all legal and factual pleas in consequential proceedings.
Supreme Court of India Cites 8 - Cited by 357 - M P Sastri - Full Document

Bharat Earth Movers vs Commissioner Of Income Tax, Karnataka on 9 August, 2000

14. We find merit in the assessee's arguments as the learned CIT(A) has simply brushed aside it's impugned provision for after sales expenditure etc. by observing, "The ground taken by the appellant in its appeal memo settles the issue". Meaning thereby that the assessee's scientific computation herein has nowhere been specifically dealt with or rejected as the learned lower authorities have declined it's provision of the impugned expenditure raised for meeting future anticipated liabilities as per Bharat Earth Movers (supra). Coupled with this, the assessee has already succeeded on the very issue before hon'ble jurisdiction high court hereinabove. We, thus see no substance in the Revenue's vehement contentions supporting the impugned disallowance, which stands deleted therefore.
Supreme Court of India Cites 5 - Cited by 480 - R C Lahoti - Full Document

Messrs. Calcutta Company Ltd vs The Commissioner Of Income-Tax,West ... on 12 May, 1959

12. We now advert to the assessee's instant grievance seeking to allow the impugned provision wherein case law Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC); Calcutta Company Ltd. v. CIT (1959) 37 ITR 1 (SC); & CIT v. Triveni Engineering & Industries Ltd. (2011) 336 ITR 374 (Delhi) i.e. the assessee itself, in paras 6,7,8 & 11 has held that such a provision based on scientific computation formula could indeed be allowed.
Supreme Court of India Cites 9 - Cited by 404 - N H Bhagwati - Full Document
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