2014; 701/Ahd./2015; 348/Ahd./2015; 2617/Ahd./2015 & 2461/Ahd./2015 Rayon Corporation Ltd. v. Commissioner of Income Tax

LABH CAPITAL SERVICES PVT LTD.,,MUMBAI vs. ITO, WARD-7(1)(4), MUMBAI

In the result, both the appeals of assessees‟ are allowed

Bench: Aby T Vakery & Shri Amarjit Singhlabh Capital Services Pvt Vs. Income Tax Officer, Ward Ltd. 7(1)(4) A-Wing Mahatre Pen Room No. 1104, 11Th Bldg, Senapati Bapat Floor, Pratishtha Bhavan, Marg, Dadar (W) M.K. Road, Mumbai- Mumbai- 400028 400020

…alt by the Hon‟ble Bombay High Court in the case of Raymond Ltd. (supra) wherein it is held as under: - “3. The nature of a Debenture Redemption Reserve (DRR) has been considered by the judgment of the Supreme Court in National Rayon Corpn. Ltd. v. CIT [1997] 227 ITR 764/ 93 Taxman 754. The Supreme Court after adverting to the provisions of Clause 7 of Part III to Schedule VI of the Companies Act, 1956 held that "the basic principle is that an amount set apart to meet a known liability cannot be regarded as reserve". Where a company issues debentures, the liability to repay arises the moment the money is borrowed…

JSW STEELS LTD,MUMBAI vs. DCIT CC 8(3), MUMBAI

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…8.9 We have perused the records and gone through the decisions relied upon by the parties. It is seen that the debenture redemption reserve is not a reserve in view of the judgment of Hon'ble Supreme Court in the case of National Rayon Corp. Ltd. Vs. CIT 1997 227 ITR 764. In this judgment, the Hon'ble Supreme Court has clearly held that debenture redemption reserve is not a reserve but money set apart in the accounts of the company to redeem the debentures and therefore must be treated as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act…

JSW STEELS LTD,MUMBAI vs. DCIT CC 8(3), MUMBAI

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…8.9 We have perused the records and gone through the decisions relied upon by the parties. It is seen that the debenture redemption reserve is not a reserve in view of the judgment of Hon'ble Supreme Court in the case of National Rayon Corp. Ltd. Vs. CIT 1997 227 ITR 764. In this judgment, the Hon'ble Supreme Court has clearly held that debenture redemption reserve is not a reserve but money set apart in the accounts of the company to redeem the debentures and therefore must be treated as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act…

JSW STEELS LTD,MUMBAI vs. DCIT CC 8(3), MUMBAI

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…8.9 We have perused the records and gone through the decisions relied upon by the parties. It is seen that the debenture redemption reserve is not a reserve in view of the judgment of Hon'ble Supreme Court in the case of National Rayon Corp. Ltd. Vs. CIT 1997 227 ITR 764. In this judgment, the Hon'ble Supreme Court has clearly held that debenture redemption reserve is not a reserve but money set apart in the accounts of the company to redeem the debentures and therefore must be treated as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act…

DCIT CC 8(3)(ERSTWHILE DCIT,CC-46, MUMBAI vs. JSW STEELS LTD, MUMBAI

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…8.9 We have perused the records and gone through the decisions relied upon by the parties. It is seen that the debenture redemption reserve is not a reserve in view of the judgment of Hon'ble Supreme Court in the case of National Rayon Corp. Ltd. Vs. CIT 1997 227 ITR 764. In this judgment, the Hon'ble Supreme Court has clearly held that debenture redemption reserve is not a reserve but money set apart in the accounts of the company to redeem the debentures and therefore must be treated as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act…

DCIT CC 8(3)(ERSTWHILE DCIT,CC-46, MUMBAI vs. JSW STEELS LTD, MUMBAI

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…8.9 We have perused the records and gone through the decisions relied upon by the parties. It is seen that the debenture redemption reserve is not a reserve in view of the judgment of Hon'ble Supreme Court in the case of National Rayon Corp. Ltd. Vs. CIT 1997 227 ITR 764. In this judgment, the Hon'ble Supreme Court has clearly held that debenture redemption reserve is not a reserve but money set apart in the accounts of the company to redeem the debentures and therefore must be treated as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act…

DCIT CC 8(3), MUMBAI vs. JSW STEELS LTD, MUMBAI

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…8.9 We have perused the records and gone through the decisions relied upon by the parties. It is seen that the debenture redemption reserve is not a reserve in view of the judgment of Hon'ble Supreme Court in the case of National Rayon Corp. Ltd. Vs. CIT 1997 227 ITR 764. In this judgment, the Hon'ble Supreme Court has clearly held that debenture redemption reserve is not a reserve but money set apart in the accounts of the company to redeem the debentures and therefore must be treated as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act…

DCIT CC 8(3), MUMBAI vs. JSW STEELS LTD, MUMBAI

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…8.9 We have perused the records and gone through the decisions relied upon by the parties. It is seen that the debenture redemption reserve is not a reserve in view of the judgment of Hon'ble Supreme Court in the case of National Rayon Corp. Ltd. Vs. CIT 1997 227 ITR 764. In this judgment, the Hon'ble Supreme Court has clearly held that debenture redemption reserve is not a reserve but money set apart in the accounts of the company to redeem the debentures and therefore must be treated as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act…

JSW STEEL LIMITED,MUMBAI vs. ACIT,CC-46, MUMBAI

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…8.9 We have perused the records and gone through the decisions relied upon by the parties. It is seen that the debenture redemption reserve is not a reserve in view of the judgment of Hon'ble Supreme Court in the case of National Rayon Corp. Ltd. Vs. CIT 1997 227 ITR 764. In this judgment, the Hon'ble Supreme Court has clearly held that debenture redemption reserve is not a reserve but money set apart in the accounts of the company to redeem the debentures and therefore must be treated as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act…

ADDL CIT 3(1), MUMBAI vs. BAJAJ HINDUSTAN LTD, MUMBAI

In the result, the appeal of the revenue is dismissed and the appeal of the assesse is partly allowed

Bench: Shri Vikas Awasthy & Shri Amarjit Singhacit-3(1)(1) Vs. M/S Bajaj Hindustan Room No. 607, 6 Th Floor, Sugar Ltd. Aayakar Bhavan, ( Ea R L I E R K N O W N A S M / S B A J A J H I N D U S T A N L T D ) Bajaj Bhavan, 2 Nd Floor, M.K. Road, Jamanalal Bajaj, Marg- Mumbai – 400 020 226, Nariman Point Mumbai 400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacb4351J Appellant .. Respondent M/S Bajaj Hindustan Vs. Acit-3(1)(1) Sugar Ltd. Room No. 607, 6 Th Floor, ( Ea R L I E R K N O W N A S M / S B A J A J H I N D U S T A N L T D ) Aayakar Bhavan, Bajaj Bhavan, 2 Nd Floor, M.K. Road, Jamanalal Bajaj, Marg- Mumbai – 400 020 226, Nariman Point Mumbai 400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacb4351J Appellant .. Respondent

…le computing the book profit u/s 115JB of the Act. In this regard, the ld. Counsel has placed reliance on the various judicial pronouncements: “(a) CIT Vs. Raymond Ltd. [2012] 21 taxmann.com 60 (Bombay High Court) (b) National Rayon Corpn. Ltd. Vs. CIT [1997] 227 ITR 764 (Supreme Court) (c) Devkrupa Build Tech Ltd. (ITA No. 4323/Mum/2018) (Mumbai Tribunal) (d) Ackruti City Limited (ITA No. 7696/Mum/2014) (Mumbai Tribunal) (e) JSW Energy Ltd. [2014] 150 ITD 406 (Mumbai Trib) (f) Genus Electrotech Ltd. [2016] 161 ITD 644 (Ahmedabad Tribunal)” In this regard, the ld. D.R submitted that neither this issue has been ra…

BAJAJ HINDUSTAN LTD,MUMBAI vs. ACIT 3(1), MUMBAI

In the result, the appeal of the revenue is dismissed and the appeal of the assesse is partly allowed

Bench: Shri Vikas Awasthy & Shri Amarjit Singhacit-3(1)(1) Vs. M/S Bajaj Hindustan Room No. 607, 6 Th Floor, Sugar Ltd. Aayakar Bhavan, ( Ea R L I E R K N O W N A S M / S B A J A J H I N D U S T A N L T D ) Bajaj Bhavan, 2 Nd Floor, M.K. Road, Jamanalal Bajaj, Marg- Mumbai – 400 020 226, Nariman Point Mumbai 400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacb4351J Appellant .. Respondent M/S Bajaj Hindustan Vs. Acit-3(1)(1) Sugar Ltd. Room No. 607, 6 Th Floor, ( Ea R L I E R K N O W N A S M / S B A J A J H I N D U S T A N L T D ) Aayakar Bhavan, Bajaj Bhavan, 2 Nd Floor, M.K. Road, Jamanalal Bajaj, Marg- Mumbai – 400 020 226, Nariman Point Mumbai 400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacb4351J Appellant .. Respondent

…le computing the book profit u/s 115JB of the Act. In this regard, the ld. Counsel has placed reliance on the various judicial pronouncements: “(a) CIT Vs. Raymond Ltd. [2012] 21 taxmann.com 60 (Bombay High Court) (b) National Rayon Corpn. Ltd. Vs. CIT [1997] 227 ITR 764 (Supreme Court) (c) Devkrupa Build Tech Ltd. (ITA No. 4323/Mum/2018) (Mumbai Tribunal) (d) Ackruti City Limited (ITA No. 7696/Mum/2014) (Mumbai Tribunal) (e) JSW Energy Ltd. [2014] 150 ITD 406 (Mumbai Trib) (f) Genus Electrotech Ltd. [2016] 161 ITD 644 (Ahmedabad Tribunal)” In this regard, the ld. D.R submitted that neither this issue has been ra…

GROUP HOUSING DEVELOPMENT CORPORATION PVT. LTD.,MUMBAI vs. DCIT - CC -5(4), MUMBAI

In the result, appeal of the assessee is partly allowed

Bench: The Regulatory Authorities. In View Of The Continuous Non-Cooperation From The Side Of The Assessee, We Deem It Fit To Dispose Of This Appeal By Hearing The Ld. Dr & Based On The Materials Available On Record.

…ated in section 115JB for the reason that the amount was set aside by the assessee-company to meet an ascertained liability. The assessee placed reliance on the decision of the Hon'ble Supreme Court in the case of National Rayon Corporation Ltd. v. CIT (1997) 227 ITR 764 30. The Commissioner of Income tax (Appeals) in the light of the above judgment and the explanation offered by the assessee held that the amount set apart by the assessee-company in fact is al provision and not a reserve. The Commissioner of Income tax (Appeals) found that the Hon’ble Supreme Court in the case of National Rayon Corporation Ltd. v…

M/S SERVEALL CONSTRUCTION PVT. LTD.,VASAI vs. DY. CIT CENTRAL 5(4), MUMBAI

In the result, appeal of the assessee is partly allowed

Bench: The Regulatory Authorities. In View Of The Continuous Non-Cooperation From The Side Of The Assessee, We Deem It Fit To Dispose Of This Appeal By Hearing The Ld. Dr & Based On The Materials Available On Record.

…ated in section 115JB for the reason that the amount was set aside by the assessee-company to meet an ascertained liability. The assessee placed reliance on the decision of the Hon'ble Supreme Court in the case of National Rayon Corporation Ltd. v. CIT (1997) 227 ITR 764 30. The Commissioner of Income tax (Appeals) in the light of the above judgment and the explanation offered by the assessee held that the amount set apart by the assessee-company in fact is al provision and not a reserve. The Commissioner of Income tax (Appeals) found that the Hon’ble Supreme Court in the case of National Rayon Corporation Ltd. v…