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Sarabhai Management Corporation Ltd. vs Commissioner Of Income-Tax, Gujarat on 27 August, 1975 cites

Commissioner Of Income-Tax, Gujrat I vs Saurashtra Cement And Chemical ... on 17 August, 1972

We are unable to see how the principles laid down in Saurashtra Cement & Chemical Industries Ltd. case cannot be said to have any bearing on the facts of the present case. In our opinion, the desirability of avoiding thinking in a loose sense and clearly analysing the nature of the business activity of the assessee was essential for the purpose of arriving at the correct decision in this case. Under the circumstances, the Tribunal, in our opinion has not applied the correct tests and has consequently arrived at an erroneous conclusion regarding the commencement of the business activity of the assessee-company.
Gujarat High Court Cites 1 - Cited by 149 - P N Bhagwati - Full Document

Western India Vegetable Products Ltd. vs Commissioner Of Income-Tax, Bombay ... on 24 March, 1954

In Western India Vegetable Products Ltd. v. Commissioner of Income-Tax, a Division Bench of the Bombay High Court consisting of Chagla C. J. and Tendolkar J. has held that there is a clear distinction between a person commencing a business and for the purpose of the Indian Income-tax Act it is the setting up of the business and not the commencement of the business that is to be considered. It is only after the business is set up that the previous year of that business commences and any expense incurred prior to the setting up of a business would not be a permissible deduction. When a business is established and is ready to commence business, then it can be said of that business that it is set up; but before it is ready to commence business it is not set up. There may, however, be an interval between the setting up of the business and the commencement of the business and all expenses incurred during that interval would be a permissible deduction.
Bombay High Court Cites 0 - Cited by 166 - B P Sinha - Full Document

Commissioner Of Income-Tax vs Sarabhai Sons Pvt. Ltd. on 21 March, 1972

13. Mr. Kaji for the revenue has laid considerable emphasis on the decision of the Division Bench of this court in Commissioner of Income-tax v. Sarabhai Sons Pvt. Ltd. The Division Bench there observed that there is a clear distinction between commencing a business and settings it up. For the purpose of section 3(1)(d) of the Income-tax Act, 1961, what is required to be considered is the setting up of a business. When a business is established and is ready to start business it can be said to be set up. The business must be put into such a shape that it can start functioning as a business or a manufacturing organization. It must be pointed out, as is clear from Sarabhai Sons Pvt. Ltd., that the main question before the Division Bench was whether on the finding of the Tribunal that the business of the assessee had been set up in the previous year was unreasonable or contrary to evidence or based on so evidence at all. Therefore, the main question which was considered by the Division Bench in that case was the question of appreciation of evidence on record and to find out whether there was evidence to support the conclusion that the business of the assessee had been set up in the previous year or whether the finding of the Tribunal that it had been set up in the previous year was unreasonable or contrary to evidence.
Gujarat High Court Cites 8 - Cited by 11 - P N Bhagwati - Full Document
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