What is 7.14 In CIT v. Gwalior Rayon Silk Mfg. Co. Ltd. authority for?

Incentive provisions in the Income-tax Act, particularly those granting deductions for new industrial undertakings, must be construed liberally to achieve their legislative purpose. This principle guides the interpretation of conditions such as what constitutes a 'new undertaking' versus a 'splitting up or reconstruction' of an existing business for claiming deductions.

How many judgments cite 7.14 In CIT v. Gwalior Rayon Silk Mfg. Co. Ltd.?

120 judgments on BharatTax cite 7.14 In CIT v. Gwalior Rayon Silk Mfg. Co. Ltd. (196 ITR 149), spanning 2010 to 2025.

Which sections of the Income Tax Act does 7.14 In CIT v. Gwalior Rayon Silk Mfg. Co. Ltd. come up under?

It is most often cited in judgments turning on Section 143(3), Section 10(2A), Section 143(3A), Section 263, Section 28(v), Section 40(b).

7.14 In CIT v. Gwalior Rayon Silk Mfg. Co. Ltd. (196 ITR 149)

ASSISTANT COMMISSINER OF IINCOME TAX CIRCLE-2(1), RAJKOT, RAJKOT vs. BHAWANI INDUSTRIES INDIA LLP, RAJKOT

ITA 260/RJT/2024[2010-11]Status: DisposedITAT Rajkot27 Aug 2025AY 2010-11

Section 143(3)Section 250Section 263Section 80Section 801CSection 80I

…& Ors. (AYs: 2012-13, 2013-14 & Ors.) (7). Broach District Cooperative Cotton Sales, Ginning and Pressing Society Ltd, Vs. Commissioner of Income Tax (1989) 177 ITR 418 (SC). (8). Commissioner of Income Tax v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 196 ITR 149 (SC) (9). In Textile Machinery Corporation Limited v. CIT (1977) 107 ITR 195 (SC). 18. The assessee further submitted before the assessing officer that just because the new undertaking is dependent to a certain extent on the existing undertaking should not deprive the new undertaking of the status of integrated unit by itself wherein articles are…

BHAVANI INDUSTRIES INDIA LLP,RAJKOT vs. ACIT, CIRCLE-2, RAJKOT, RAJKOT

In the result, summarised and concise ground No

ITA 256/RJT/2024[2013-14]Status: DisposedITAT Rajkot27 Aug 2025AY 2013-14

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपील सं./ Ita No. 247 To 250 & 260/Rjt/2024 "नधा"रण वष"/ Assessment Years: 2012-13, 2013-14, 2017-18 2018-19 & 2010-11 Bhawani Industries India Llp Assistant Commissioner Of बनाम/ Income-Tax, Cicle-2(1), Rajkot, C/1-B, 236/3 Gidc, Aji Industrial Room No.311, 3Rd Floor, Aaykar Estate, Rajkot-36 003 Vs. Bhawan, Race Course Ring Road, Rajkot-360 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfb 8046 R (अपीलाथ"/Assessee) (""यथ"/Respondent) आयकर अपील सं/.Ita No.254 To 256/Rjt/2024 "नधा"रण वष"/ Assessment Years: 2010-11, 2012-13 & 2013-14 Bhawani Industries India Llp Assistant Commissioner Of Income- C/1-B, 236/3 Gidc, Aji बनाम/ Tax, Cicle-2(1), Rajkot, Room No.311, Industrial Estate, Rajkot-36 3Rd Floor, Aaykar Bhawan, Race Vs. 003 Course Ring Road, Rajkot-360 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfb 8046 R (अपीलाथ"/Assessee) (""यथ"/Respondent) "नधा"रती क" ओर से/Assessee By : Shri Mehul Ranpura, Ld.Ar राज"व क" ओर से/Revenue By : Shri Sanjay Punglia, Ld. Cit-Dr & Shri Abhimanyu Singh Yadav, Sr-Dr

For Appellant: Shri Mehul Ranpura, ld.ARFor Respondent: Shri Sanjay Punglia, Ld. CIT-DR &

Section 143(3)Section 250Section 80Section 80I

…Ors. (AYs : 2012-13, 2013-14 & Ors.) (7). Broach District Cooperative Cotton Sales, Ginning and Pressing Society Ltd, Vs. Commissioner of Income Tax (1989) 177 ITR 418 (SC). (8). Commissioner of Income Tax v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 196 ITR 149 (SC) (9). In Textile Machinery Corporation Limited v. CIT (1977) 107 ITR 195 (SC). 18. The assessee further submitted before the assessing officer that just because the new undertaking is dependent to a certain extent on the existing undertaking should not deprive the new undertaking of the status of integrated unit by itself wherein articles ar…

BHAVANI INDUSTRIES INDIA LLP,RAJKOT vs. ACIT, CIRCLE-2(1), RAJKOT, RAJKOT

ITA 255/RJT/2024[2012-13]Status: DisposedITAT Rajkot27 Aug 2025AY 2012-13

Section 143(3)Section 250Section 263Section 80Section 801CSection 80I

…of Income Tax (1992) 196 ITR 188 (SC); (7). Broach District Cooperative Cotton Sales, Ginning and Pressing Society Ltd, Vs. Commissioner of Income Tax (1989) 177 ITR 418 (SC). (8). Commissioner of Income Tax v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 196 ITR 149 (SC) (9). In Textile Machinery Corporation Limited v. CIT (1977) 107 ITR 195 (SC). 18. The assessee further submitted before the assessing officer that just because the new undertaking is dependent to a certain extent on the existing undertaking should not deprive the new undertaking of the status of integrated unit by itself wherein articles are…

BHAVANI INDUSTRIES INDIA LLP,RAJKOT vs. ADDI. CIT, RANGE-2, RAJKOT, RAJKOT

ITA 254/RJT/2024[2010-11]Status: DisposedITAT Rajkot27 Aug 2025AY 2010-11

Section 143(3)Section 250Section 263Section 80Section 801CSection 80I

…Income Tax (1992) 196 ITR 188 (SC); 12 (7). Broach District Cooperative Cotton Sales, Ginning and Pressing Society Ltd, Vs. Commissioner of Income Tax (1989) 177 ITR 418 (SC). (8). Commissioner of Income Tax v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 196 ITR 149 (SC) (9). In Textile Machinery Corporation Limited v. CIT (1977) 107 ITR 195 (SC). 18. The assessee further submitted before the assessing officer that just because the new undertaking is dependent to a certain extent on the existing undertaking should not deprive the new undertaking of the status of integrated unit by itself wherein articles are…

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2(1), RAJKOT, RAJKOT vs. BHAWANI INDUSTRIES INDIA LLP, RAJKOT

ITA 250/RJT/2024[2018-19]Status: DisposedITAT Rajkot27 Aug 2025AY 2018-19

Section 143(3)Section 250Section 263Section 80Section 801CSection 80I

…& Ors. (AYs: 2012-13, 2013-14 & Ors.) (7). Broach District Cooperative Cotton Sales, Ginning and Pressing Society Ltd, Vs. Commissioner of Income Tax (1989) 177 ITR 418 (SC). (8). Commissioner of Income Tax v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 196 ITR 149 (SC) (9). In Textile Machinery Corporation Limited v. CIT (1977) 107 ITR 195 (SC). 18. The assessee further submitted before the assessing officer that just because the new undertaking is dependent to a certain extent on the existing undertaking should not deprive the new undertaking of the status of integrated unit by itself wherein articles are…

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2(1), RAJKOT, RAJKOT vs. BHAWANI INDUSTRIES INDIA LLP, RAJKOT

In the result, summarised and concise ground No

ITA 249/RJT/2024[2017-18]Status: DisposedITAT Rajkot27 Aug 2025AY 2017-18

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपील सं./ Ita No. 247 To 250 & 260/Rjt/2024 "नधा"रण वष"/ Assessment Years: 2012-13, 2013-14, 2017-18 2018-19 & 2010-11 Bhawani Industries India Llp Assistant Commissioner Of बनाम/ Income-Tax, Cicle-2(1), Rajkot, C/1-B, 236/3 Gidc, Aji Industrial Room No.311, 3Rd Floor, Aaykar Estate, Rajkot-36 003 Vs. Bhawan, Race Course Ring Road, Rajkot-360 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfb 8046 R (अपीलाथ"/Assessee) (""यथ"/Respondent) आयकर अपील सं/.Ita No.254 To 256/Rjt/2024 "नधा"रण वष"/ Assessment Years: 2010-11, 2012-13 & 2013-14 Bhawani Industries India Llp Assistant Commissioner Of Income- C/1-B, 236/3 Gidc, Aji बनाम/ Tax, Cicle-2(1), Rajkot, Room No.311, Industrial Estate, Rajkot-36 3Rd Floor, Aaykar Bhawan, Race Vs. 003 Course Ring Road, Rajkot-360 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfb 8046 R (अपीलाथ"/Assessee) (""यथ"/Respondent) "नधा"रती क" ओर से/Assessee By : Shri Mehul Ranpura, Ld.Ar राज"व क" ओर से/Revenue By : Shri Sanjay Punglia, Ld. Cit-Dr & Shri Abhimanyu Singh Yadav, Sr-Dr

For Appellant: Shri Mehul Ranpura, ld.ARFor Respondent: Shri Sanjay Punglia, Ld. CIT-DR &

Section 143(3)Section 250Section 80Section 80I

…Ors. (AYs : 2012-13, 2013-14 & Ors.) (7). Broach District Cooperative Cotton Sales, Ginning and Pressing Society Ltd, Vs. Commissioner of Income Tax (1989) 177 ITR 418 (SC). (8). Commissioner of Income Tax v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 196 ITR 149 (SC) (9). In Textile Machinery Corporation Limited v. CIT (1977) 107 ITR 195 (SC). 18. The assessee further submitted before the assessing officer that just because the new undertaking is dependent to a certain extent on the existing undertaking should not deprive the new undertaking of the status of integrated unit by itself wherein articles ar…

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2(1), RAJKOT, RAJKOT vs. BHAWANI INDUSTRIES INDIA LLP, RAJKOT

ITA 248/RJT/2024[2013-14]Status: DisposedITAT Rajkot27 Aug 2025AY 2013-14

Section 143(3)Section 250Section 263Section 80Section 801CSection 80I

…& Ors. (AYs: 2012-13, 2013-14 & Ors.) (7). Broach District Cooperative Cotton Sales, Ginning and Pressing Society Ltd, Vs. Commissioner of Income Tax (1989) 177 ITR 418 (SC). (8). Commissioner of Income Tax v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 196 ITR 149 (SC) (9). In Textile Machinery Corporation Limited v. CIT (1977) 107 ITR 195 (SC). 18. The assessee further submitted before the assessing officer that just because the new undertaking is dependent to a certain extent on the existing undertaking should not deprive the new undertaking of the status of integrated unit by itself wherein articles are…

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2(1), RAJKOT, RAJKOT vs. BHAWANI INDUSTRIES INDIA LLP, RAJKOT

ITA 247/RJT/2024[2012]Status: DisposedITAT Rajkot27 Aug 2025

Section 143(3)Section 250Section 263Section 80Section 801CSection 80I

…& Ors. (AYs: 2012-13, 2013-14 & Ors.) (7). Broach District Cooperative Cotton Sales, Ginning and Pressing Society Ltd, Vs. Commissioner of Income Tax (1989) 177 ITR 418 (SC). (8). Commissioner of Income Tax v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 196 ITR 149 (SC) (9). In Textile Machinery Corporation Limited v. CIT (1977) 107 ITR 195 (SC). 18. The assessee further submitted before the assessing officer that just because the new undertaking is dependent to a certain extent on the existing undertaking should not deprive the new undertaking of the status of integrated unit by itself wherein articles are…

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1), MEERUT, MEERUT vs. PREM SAPRA, NEW DELHI

The appeal of the revenue is dismissed

ITA 1739/DEL/2024[2021-22]Status: DisposedITAT Delhi20 Jun 2025AY 2021-22

Bench: Smt. Annapurna Gupta & Ms. Madhumita Royassessment Year: 2021-22

Section 143(3)Section 54

…ction 54 being an incentive/benevolent provision, the same ought to be liberally construed and benefit should be given to the assessee for which reliance is placed on the following judicial precedents: ➤ 196 ITR 188, Bajaj Tempo Ltd. Vs. CIT (Supreme Court). ➤196 ITR 149, CIT Vs. Gwalior Rayon Silk Co. Ltd. (Supreme Court). ➤ 156 ITR 323 CIT vs. J.H. Gotla (Supreme Court). ➤ 365 ITR 389, Sanjeev Lal vs CIT (Supreme Court). ➤244 ITR 352. CIT vs. Smt. Bharati C. Kothari (Calcutta H.C.). Thus, viewed from whatever angle, the Assessee was entitled to deduction of Rs.2,81,58,300 u/s 54 of the Act because at the time o…

SWEETOO APPARELS,,AHMEDABAD vs. ACIT, CIRCLE5(2), , AHMEDABAD

In the result, the appeal is dismissed

ITA 341/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad05 Jul 2024AY 2014-15

Bench: Smt. Annapurna Gupta (Accountant Member), Shri Siddhartha Nautiyal (Judicial Member)

Section 250

…e land. In Multiplex Complex, the appellant cannot sell the 478 sq. mtrs. of land keeping structure of eight shops intact. 4. The CIT (Appeals) ought to have followed the ratio of Hon'ble Supreme Court in the case of CIT v/s. Gwalior Rayon Silk Mfg. Co. Ltd. 196 ITR 149 (SC) which has considered the ratio of CIT v/s. Alps Theatre 65 ITR 377 (SC) and distinguished the same observing that the ratio therein has no application but the principle laid down would be considered in the light of the purpose of the Act. 5. The CIT (Appeals) ought to have followed the ratios of Hon'ble Bombay High Court in the case of CIT…

DY.COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(4),MUMBAI., PRATISHTHA BHAVAN, MUMBAI. vs. ARUN SUBRAHMANYAM, MUMBAI, MAHARASHTRA

In the result, the appeal filed by the assessee is allowed”

ITA 2694/MUM/2023[2017-18]Status: DisposedITAT Mumbai06 May 2024AY 2017-18

Bench: Shri Anikesh Banerjee & Shri Gagan Goyal

For Appellant: Shri Rajiv KhandelwalFor Respondent: Shri Manoj Kumar Sinha (SR.DR)

Section 139(1)Section 142(1)Section 143(2)Section 250Section 270A

…s not challenged the said finding of fact as to the exercise of discretionary power. Therefore, theview takenbyTribunal that the section is directory and not mandatorv is upheld. CIT vs. Gwalior Rayon Silk Manufacturing C Ltd. (1992) 104 CTR (SC); 243: (1992) 196 ITR 149 (SC) applied. 7.2. Commissioner of Income Tax Vs. Satyendra Kumar Dosi, 315ITR 0172 (Raj), Held: A bare perusal of section 158BFA(2) goes to show that by virtue of the said provision, the AO or the CIT(A) is vested with the power to direct the assessee to pay the penalty as specified in respect of the undisclosed income determined bythe AO under…

ODYSSEY MOTORS PRIVATE LIMITED,AINTHAPALI vs. ACIT, SAMBALPUR

In the result, appeal of the assessee stands allowed

ITA 140/CTK/2021[2019-20]Status: HeardITAT Cuttack17 Aug 2022AY 2019-20

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaassessment Year : 2019-2020 2020

For Appellant: Shri S.S.Poddar, ARFor Respondent: Shri S.C.Mohanty, Sr

Section 113Section 139(1)

…tor of Customs (1997) 6 SCC 564 it was observed that “even assuming that there are two views possible, it is well settled that one favourable to the assessee in matters of taxation has to be preferred.”. 7.14 In CIT vs. Gwalior Rayon Silk Mfg. Co. Ltd. (1992) 196 ITR 149 (SC) it has held that provisions for deduction, exemption and relief should be interpreted liberally, reasonably and in favour of the assessee. 7.15 In CIT vs. Vegetable Products Ltd., 88 ITR 192 (SC): “if two reasonable constructions of a taxing provisions are possible, that construction which favours the assessee must be adopted”. 7.16 The Hon…

SUDHIR VISHWANATH SHINDE,DHULE vs. INCOME TAX OFFICER, WARD -2, DHULE

In the result, assessee‟s appeal is allowed

ITA 497/PUN/2021[2016-17]Status: DisposedITAT Pune11 Aug 2022AY 2016-17

For Appellant: NoneFor Respondent: Shri M.G. Jasnani

Section 142(1)Section 207Section 207(2)Section 234B

…rest levied u/s 234B and 234C should be deleted fully. 2. CIT(A) should have considered the provision for the exemption of the payment of advance tax as per section 207(2) reasonably and in favour of the assessee (CIT – Gwalior Rayon Silk Mfg. Cl. Ltd. (1992) 196 ITR 149 (SC). 3. CIT (A) erred in ignoring the fact thast the composite phase ‘income chargeable under the head profits and gains of business or profession’ is to be interpreted and when the resultant positive income is there then only the payment of the advance tax is liable to be made. He also erred in ignoring the situation that the loss can never be…

DR. SHEELA PUTTABUDDI,BANGALORE vs. INCOME TAX OFFICER, WARD- 3(3)(5), BANGALORE

In the result, the appeal filed by the assessee is partly allowed

ITA 293/BANG/2020[2015-16]Status: DisposedITAT Bangalore19 Jul 2022AY 2015-16

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Ravi Shankar, AdvoicateFor Respondent: Sri.Sankar Ganesh K, JCIT-DR

Section 143(2)Section 54

…ions which are to be construed strictly. In support of this proposition, we place reliance on the judgments of the Hon’ble Supreme Court in the case of Bajaj Tempo Ltd. v. CIT (1992) 196 ITR 188 (SC) and CIT v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 196 ITR 149 (SC). 17. As observed by us that the bonafides of the assessee cannot be doubted, since the assessee has made deposits into the capital gains scheme immediately and thereupon made payments to the developer to acquire the new house property. The assessee was also prevented by reasonable cause since the funds had already been utilized and was forc…

JAKSONS AGENCIES,CUTTACK vs. ITO, WARD-2(3), CUTTACK

In the result, appeal of the assessee is allowed

ITA 141/CTK/2021[2016-17]Status: HeardITAT Cuttack11 Jul 2022AY 2016-17

Section 2Section 28Section 36(1)(va)Section 43B

…आयकर अपीऱीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री अरुण खोड़पऩया ऱेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER Jaksons Agencies, Pratap Nagari, Cuttack-753011 PAN No.AACFJ 6961 B …………….. Assessee Versus ITO, Ward-2(3), Cuttack ………………Revenue Shri Mahavir Prasad Mundhra, & Mr. Amit Kumar Sharma, FCAs for the assessee Shri S.C.Mohanty. Sr.DR for the Revenue Date of Hearing : 11/07/2022 Date of Pronouncement : 11/07/2022 आदेश / O R D E R Per Bench : This is an appeal filed b…