SIDWAL REFRIGERATION IND. LTD. vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-8(1)

ITA/1154/2009HC Delhi23 December 200914 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the sale of a water cooler and an air-conditioner before April 1998 established marketable quality and commercial production. Therefore, assessment year 1998-99 was correctly considered the initial year for claiming the benefit under Section 80IA.

What were the facts?

The assessee claimed depreciation for benefit under Section 80IA/80IB, with trial production starting on March 20, 1998. The Assessing Officer considered assessment year 1998-99 as the initial year for the benefit, while the assessee argued for assessment year 1999-2000 based on commercial production.

What were the issues?

Whether trial production constitutes the commencement of manufacturing for the purpose of claiming deductions under Section 80IA/80IB, and if commercial sales, even in small quantities, signify the start of such manufacturing.

Which sections of the Income-tax Act were involved?

Section 80IA,Section 80IB

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Cases cited in this judgment(6)Show list

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

Reserved on: 25th November,2009

Date of Decision: 23rd December, 2009

+ ITA 1154/2009 & ITA 1204/2009

COMMISSIONER OF INCOME TAX (CENTRAL)-III DELHI ..... Appellant

Through: Mr. Sanjeev Sabharwal, Adv.

versus

NESTOR PHARMACEUTICALS LIMITED ..... Respondent

Through: Mr. C.S. Aggarwal, Sr. Adv. with Mr. Prakash Kumar, Adv.

And

ITA 160/2008, ITA 161/2008 & ITA 793/2009

SIDWAL REFRIGERATION IND. LTD.

..... Appellant

Through: Mr. R.M. Mehta with Mr. Bharat Beriwal, Advs.

versus

DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-8(1)

..... Respondent

Through: Mr. Sanjeev Sabharwal, Adv. in ITA No. 160 & 161/2008. Ms. Sonia Mathur, Adv. in ITA No. 793/2009. % CORAM:

HON'BLE MR. JUSTICE A.K. SIKRI

HON'BLE MR. JUSTICE SIDDHARTH MRIDUL

1.

Whether reporters of local papers may be allowed to see the judgment?

2.

To be referred to the Reporter or not?

3.

Whether the judgment shou

The order continues below.

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