DY. COMMISSIONER OF INCOME-TAX-1(1)(1), MUMBAI, MUMBAI vs. M/S. HINDUSTAN PETROLEUM CORPORATION LIMITED, MUMBAI

ITA 3865/MUM/2025Status: DisposedITAT Mumbai17 July 2026AY 2014-1511 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that dispensing units are an integral and indispensable part of the business of manufacturing petroleum products, as they are necessary for selling the final products. The Tribunal found no infirmity in the CIT(A)'s order deleting the disallowance.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 7,35,00,000/- made on account of investment allowance claimed under Section 32AC on dispensing units at retail outlets. The assessee, Hindustan Petroleum Corporation Limited, claimed these units were part of its integrated business of manufacturing and marketing petroleum products.

What were the issues?

Whether dispensing units at retail outlets qualify as 'plant' for investment allowance under Section 32AC, and if marketing activities are integral to the business of manufacturing for such allowance.

Which sections of the Income-tax Act were involved?

Section 32AC,Section 147,Section 144B,Section 148,Section 148A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, E BENCH,

For Appellant: Ms. Hirali Desai, CA]
For Respondent: Shri Himanshu Joshi, Sr. DR
Hearing: 20.04.2026Pronounced: 17.07.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by the Revenue is against the order of ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide DIN & Order No. ITBA/NFAC/S/250/2024-25/1075143195(1), dated 27.03.2025 passed against the re-assessment order by the Assessment Unit, u/s 147 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), dated 25.05.2023, for the Assessment Year 2014-15. 2. Revenue has raised the following grounds of appeal:

1.

Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 7,35,00,000/- on account of disallowance of investment allowance claimed u/s. 32AC

The order continues below.

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