ACG Associated Capsules (P) Ltd. v. CIT

343 ITR 89Supreme Court of India2012#703 most cited

What is ACG Associated Capsules (P) Ltd. v. CIT authority for?

For calculation of deduction under Section 80HHC, if total interest is netted off after adjusting interest paid and received, the 90% reduction specified in Explanation (baa) is not applicable.

144

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2012 to 2025.

Also referred to as

ACG Associated Capsules · Section 80HHC · Explanation (baa) · 90% reduction · interest income · netting off interest · profits of business · deduction calculation · gross interest · net interest · 343 ITR 89

Also reported as

247 CTR 372

Sections most often in play

Section 115JASection 80HHCSection 80IBSection 143(3)Section 250Section 30Section 37(1)Section 44D
Read the full judgment

Issues it is cited on

section 80hsection 80hhcsection 80hhdeduction under section 80iasection 80iaeligible businesssection 80isection 30profits and gains of business or professionbook profitssection 115jrevenue expenditure

Judgments citing ACG Associated Capsules (P) Ltd. v. CIT

M/S. Abb Limited(Formerly Asea Brown Boveri Limited), Bangalore vs. DCIT, Bangalore

In the result, ground No.3 raised by the assessee is dismissed

ITA 790/BANG/2008[2002-03]Status: DisposedITAT Bangalore23 Jul 2021AY 2002-03

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranita No.790 & 791/Bang/2008 Assessment Year : 2002-03 & 2003-04 M/S. Abb Ltd., Vs. The Deputy Commissioner Of Ii Floor, East Wing, Income Tax (Ltu), Khanija Bhavan, Bengaluru. Race Course Road, Bengaluru-560 001. Pan : Aaaca 3834 B Appellant Respondent

For Appellant: Shri. Percy Pardiwala, Sr. AdvocateFor Respondent: Shri. K. V. Aravind, Standing Counsel
Section 2Section 80H

…have considered the rival submissions and are of the view that the principle of netting has been recognized by the various decisions of Hon’ble High Courts and has also been affirmed by the Hon’ble Supreme Court in the case of ACG Associated Capsules Vs. CIT 343 ITR 89 (SC). The principle of netting is however applicable only on the assessee establishing nexus between the interest paid and the interest earned. If such nexus is proved, it is only the net interest that has to be excluded under explanation baa to section 80HHC of the Act. 26. In view of the aforesaid legal position, we are of the view that there i…

Income Tax Officer, Ward-17(2), Hyderabad vs. Elgen (India) Private Limited, Hyderabad

In the result, appeal of the revenue is allowed

ITA 244/HYD/2019[2015-16]Status: DisposedITAT Hyderabad30 Apr 2021AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahuassessment Year: 2015-16 Income-Tax Officer, Vs. Elgen (India) Pvt Ltd., Ward - 17(2), Hyderabad. Hyderabad. Pan – Aaace 8520C (Appellant) (Respondent) Revenue By: Shri Rohit Mujumdar Assessee By: Shri M. Poorna Chander Rao Date Of Hearing: 15/03/2021 Date Of Pronouncement: 30/04/2021

For Appellant: Shri M. Poorna Chander RaoFor Respondent: Shri Rohit Mujumdar
Section 143(3)

…cussion extracted hereinabove in the light of various judicial precedents. The fact also remains that neither of the lower authorities has proceeded on netting formula going by Hon'ble apex court's decision in ACG Associated Capsules Pvt. Ltd. Vs. CIT (2012) [343 ITR 89] (SC). We therefore direct the Assessing Officer to allow netting benefit qua the impugned addition vis-à-vis the corresponding expenditure incurred at the taxpayer's behest in above terms. 8. Learned counsel next invited our attention to the CIT(A)'s order in para 5 that the assessee had although pleaded set-off of its impugned interest income ag…

Anrak Aluminium Limited, Hyderabad vs. DCIT, Circle-1(1), Hyderabad

Appeal is partly allowed in foregoing terms

ITA 994/HYD/2017[2013-14]Status: DisposedITAT Hyderabad08 Feb 2021AY 2013-14

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri A.V.Raghuram, ARFor Respondent: Smt. Anjala Sahu, DR
Section 115JSection 143(3)Section 14A

…cussion extracted hereinabove in the light of various judicial precedents. The fact also remains that neither of the lower authorities has proceeded on netting formula going by Hon'ble apex court’s decision in ACG Associated Capsules Pvt. Ltd. Vs. CIT (2012) [343 ITR 89] (SC). We therefore direct the Assessing Officer to allow netting benefit qua the impugned addition vis-à-vis the corresponding expenditure incurred at the taxpayer’s behest in above terms. 8. Learned counsel next invited our attention to the CIT(A)’s order in para 5 that the assessee had although pleaded set-off of its impugned interest income a…

DCIT-Circle, Parwanoo vs. M/S Shivom Cotspin Ltd., Sirmour

In the result, this appeal of the Revenue stands partly allowed

ITA 47/CHANDI/2020[2013-14]Status: DisposedITAT Chandigarh28 Dec 2020AY 2013-14

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकरअपीलसं./Ita No.560/Chd/2019 "नधा"रणवष" / Assessment Year :2015-16 Shivam Cotspin Limited, The Dcit, Circle, बनाम Village Kheri, Parwanoo Kala Amb, Trilokpur Road, Sirmour Himachal Pradesh "थायीलेखासं./Pan No: Aajs9111L अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Rohit Goel, CAFor Respondent: Dr. Daya Inder Singh Sidhu, Addl. CIT
Section 250(6)Section 80I

…g be allowed of interestexpenditure against the interest income earned and disallowance be restricted only to the net income. Reliance in this respect was placed on the decision of the Hon'ble Apex Court in the case of ACG Associated Capsules (P) Ltd vs CIT 343 ITR 89 (SC) and the decision of the ITAT Chandigarh Bench in the case of Padmawati Steel in ITA No. 587/Chd/2014 and the decision of the Hon'ble Punjab & Haryana High Court in the case of HM Steels Ltd (2015) (8) TMI 516. 27. The Ld. DR on the other hand, relied on theorders of the Ld. CIT(A). ITA Nos.560 & 957-c-2019 & 46 & 47-c-2020 ShivamCotspin L…

DCIT-Circle, Parwanoo vs. M/S Shivom Cotspin Ltd., Sirmour

In the result, this appeal of the Revenue stands partly allowed

ITA 46/CHANDI/2020[2012-13]Status: DisposedITAT Chandigarh28 Dec 2020AY 2012-13

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकरअपीलसं./Ita No.560/Chd/2019 "नधा"रणवष" / Assessment Year :2015-16 Shivam Cotspin Limited, The Dcit, Circle, बनाम Village Kheri, Parwanoo Kala Amb, Trilokpur Road, Sirmour Himachal Pradesh "थायीलेखासं./Pan No: Aajs9111L अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Rohit Goel, CAFor Respondent: Dr. Daya Inder Singh Sidhu, Addl. CIT
Section 250(6)Section 80I

…g be allowed of interestexpenditure against the interest income earned and disallowance be restricted only to the net income. Reliance in this respect was placed on the decision of the Hon'ble Apex Court in the case of ACG Associated Capsules (P) Ltd vs CIT 343 ITR 89 (SC) and the decision of the ITAT Chandigarh Bench in the case of Padmawati Steel in ITA No. 587/Chd/2014 and the decision of the Hon'ble Punjab & Haryana High Court in the case of HM Steels Ltd (2015) (8) TMI 516. 27. The Ld. DR on the other hand, relied on theorders of the Ld. CIT(A). ITA Nos.560 & 957-c-2019 & 46 & 47-c-2020 ShivamCotspin L…

ACIT, Circle, Parwanoo vs. Shivom Cotspin Limited, Sirmour

In the result, this appeal of the Revenue stands partly allowed

ITA 957/CHANDI/2019[2015-16]Status: DisposedITAT Chandigarh28 Dec 2020AY 2015-16

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकरअपीलसं./Ita No.560/Chd/2019 "नधा"रणवष" / Assessment Year :2015-16 Shivam Cotspin Limited, The Dcit, Circle, बनाम Village Kheri, Parwanoo Kala Amb, Trilokpur Road, Sirmour Himachal Pradesh "थायीलेखासं./Pan No: Aajs9111L अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Rohit Goel, CAFor Respondent: Dr. Daya Inder Singh Sidhu, Addl. CIT
Section 250(6)Section 80I

…g be allowed of interestexpenditure against the interest income earned and disallowance be restricted only to the net income. Reliance in this respect was placed on the decision of the Hon'ble Apex Court in the case of ACG Associated Capsules (P) Ltd vs CIT 343 ITR 89 (SC) and the decision of the ITAT Chandigarh Bench in the case of Padmawati Steel in ITA No. 587/Chd/2014 and the decision of the Hon'ble Punjab & Haryana High Court in the case of HM Steels Ltd (2015) (8) TMI 516. 27. The Ld. DR on the other hand, relied on theorders of the Ld. CIT(A). ITA Nos.560 & 957-c-2019 & 46 & 47-c-2020 ShivamCotspin L…

Shivom Cotspin Limited, Kala Amb vs. DCIT, Circle, Parwanoo

In the result, this appeal of the Revenue stands partly allowed

ITA 560/CHANDI/2019[2015-16]Status: DisposedITAT Chandigarh28 Dec 2020AY 2015-16

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकरअपीलसं./Ita No.560/Chd/2019 "नधा"रणवष" / Assessment Year :2015-16 Shivam Cotspin Limited, The Dcit, Circle, बनाम Village Kheri, Parwanoo Kala Amb, Trilokpur Road, Sirmour Himachal Pradesh "थायीलेखासं./Pan No: Aajs9111L अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Rohit Goel, CAFor Respondent: Dr. Daya Inder Singh Sidhu, Addl. CIT
Section 250(6)Section 80I

…g be allowed of interestexpenditure against the interest income earned and disallowance be restricted only to the net income. Reliance in this respect was placed on the decision of the Hon'ble Apex Court in the case of ACG Associated Capsules (P) Ltd vs CIT 343 ITR 89 (SC) and the decision of the ITAT Chandigarh Bench in the case of Padmawati Steel in ITA No. 587/Chd/2014 and the decision of the Hon'ble Punjab & Haryana High Court in the case of HM Steels Ltd (2015) (8) TMI 516. 27. The Ld. DR on the other hand, relied on theorders of the Ld. CIT(A). ITA Nos.560 & 957-c-2019 & 46 & 47-c-2020 ShivamCotspin L…

ACIT (Ltu), New Delhi vs. M/S Havells India Ltd., New Delhi

In the result, appeal of the assessee is partly allowed

ITA 466/DEL/2011[2007-08]Status: DisposedITAT Delhi25 Aug 2020AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishihavells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Circle-12(1), Civil Lines, New Delhi Cr Building Ip Estate, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Havells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Ltu, Nbcc Plaza, Civil Lines, New Delhi Pusp Vihar, Sector-4, Saket, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Acit (Ltu), Vs. Havells India Ltd, Nbcc Plaza, Pusp Vihar, Sector- 1/7 Ram Kishore Road, 4, Saket, New Delhi Civil Lines, New Delhi Pan: Aaach0351E (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Saras Kumar, Sr. DR
Section 143(3)Section 144ASection 14ASection 80H

…76 of PB]. For the purpose of computing `profits of the business‘ under Explanation (baa) to section 80HHC of the Act, the concept of netting of interest income with interest expenditure has been upheld in the case of ACG Associated Capsules (P.) Ltd. v. CIT: 343 ITR 89 (SC), it has been held that 90% of only net interest or net rent, which has been included in the profits of business of assessee as computed under the head ‗Profits and Gains of Business or Profession‘, is to be deducted under clause (1) of Explanation (baa) to section 80HHC for determining profits of business. 36. For this proposition , he furthe…

M/S Havells India Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 6073/DEL/2010[2007-08]Status: DisposedITAT Delhi25 Aug 2020AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishihavells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Circle-12(1), Civil Lines, New Delhi Cr Building Ip Estate, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Havells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Ltu, Nbcc Plaza, Civil Lines, New Delhi Pusp Vihar, Sector-4, Saket, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Acit (Ltu), Vs. Havells India Ltd, Nbcc Plaza, Pusp Vihar, Sector- 1/7 Ram Kishore Road, 4, Saket, New Delhi Civil Lines, New Delhi Pan: Aaach0351E (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Saras Kumar, Sr. DR
Section 143(3)Section 144ASection 14ASection 80H

…76 of PB]. For the purpose of computing `profits of the business‘ under Explanation (baa) to section 80HHC of the Act, the concept of netting of interest income with interest expenditure has been upheld in the case of ACG Associated Capsules (P.) Ltd. v. CIT: 343 ITR 89 (SC), it has been held that 90% of only net interest or net rent, which has been included in the profits of business of assessee as computed under the head ‗Profits and Gains of Business or Profession‘, is to be deducted under clause (1) of Explanation (baa) to section 80HHC for determining profits of business. 36. For this proposition , he furthe…

M/S Havells India Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 6072/DEL/2010[2004-05]Status: DisposedITAT Delhi25 Aug 2020AY 2004-05

Bench: Shri Amit Shukla & Shri Prashant Maharishihavells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Circle-12(1), Civil Lines, New Delhi Cr Building Ip Estate, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Havells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Ltu, Nbcc Plaza, Civil Lines, New Delhi Pusp Vihar, Sector-4, Saket, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Acit (Ltu), Vs. Havells India Ltd, Nbcc Plaza, Pusp Vihar, Sector- 1/7 Ram Kishore Road, 4, Saket, New Delhi Civil Lines, New Delhi Pan: Aaach0351E (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Saras Kumar, Sr. DR
Section 143(3)Section 144ASection 14ASection 80H

…76 of PB]. For the purpose of computing `profits of the business‘ under Explanation (baa) to section 80HHC of the Act, the concept of netting of interest income with interest expenditure has been upheld in the case of ACG Associated Capsules (P.) Ltd. v. CIT: 343 ITR 89 (SC), it has been held that 90% of only net interest or net rent, which has been included in the profits of business of assessee as computed under the head ‗Profits and Gains of Business or Profession‘, is to be deducted under clause (1) of Explanation (baa) to section 80HHC for determining profits of business. 36. For this proposition , he furthe…

The Commissioner of Income Tax vs. M/S Asea Brown Boveri Ltd

ITA/420/2012HC Karnataka24 Jun 2020

Bench: ALOK ARADHE,M.NAGAPRASANNA

Section 143(1)Section 201Section 201(1)Section 260Section 260ASection 40Section 43BSection 80H

…question of law does not arise for consideration as it is held against the assessee by the tribunal. The 5th and 8th substantial questions of law have been answered against the revenue by the Supreme Court in ‘ACG ASSOCIATED CAPSULES (P) LTD. VS. CIT’, 343 ITR 89 SC and COMMISSIONER OF INCOME TAX, NEW DELHI VS.ELI LILLY & CO. (INDIA) (P.) LTD.’, 312 ITR 225 (SC) respectively. Accordingly, the same are answered against the revenue and in favour of the assessee. 8. Substantial question of law Nos.2, 6 & 7 survive for consideration in this appeal. Insofar as substantial question of law No.2 is co…

Satern Griha Nirman Pvt. Ltd., Kolkata vs. I.T.O., Ward-1(4), Kolkata

In the result, the appeal of the assessee is partly allowed

ITA 2616/KOL/2019[2011-12]Status: DisposedITAT Kolkata04 May 2020AY 2011-12

Bench: Shri P.M. Jagtap, Vice-

Section 80I

…restricted to net interest and not gross interest as done by the authorities below, I find that this alternative claim of the assessee is duly supported by the decision of the Hon’ble Supreme Court in the case of ACG Associated Capsules Pvt. Limted –vs.- CIT (343 ITR 89), wherein it was held in the context of assesee’s claim for deduction under section 80HHC that 90% of not the gross interest but only the net interest which had been included in the profits of business of the assessee, as computed under the head “profits and gains of business or profession” should be deducted for determining the profits of the bus…

The Asstt. Commissioner of Income Tax, Vapi Circle, Vapi vs. M/S. Mitsu Limited, Daman

In the result, the appeal of the Revenue is dismissed

ITA 3510/AHD/2016[2000-01]Status: DisposedITAT Surat04 May 2020AY 2000-01

Bench: Shri Sandip Gosain & Shri O. P. Meenav. ""यथ"/Respondent आ.अ.सं././././I "नधा"र अपीलाथ" Appellant S .T.A No. ण N वष"/A Y: 1 1671/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2006 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 2 1371/Ah 2002- Assistant V. M/S. Mitsu Limited, D/2006 03 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q Co.No.1 2002- M/S. Mitsu Limited, V. Assistant 3 84/Ahd/ 03 304/2, Iind Phase, Commissioner Of 2006 Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 4 1672/Ah 2003- M/S. Mitsu Limited, V. Assistant D/2006 04 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 5 1764/Ah 2003- Assistant V. M/S. Mitsu Limited, D/2006 04 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q 6 1000/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2016 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 7 3510/Ah 2000- Assistant V. M/S. Mitsu Limited, D/2016 01 Commissioner Of Page 2 Of 83 Mitsu Ltd. V. Acit- Vapi/I.T.A. No.1671-1371,Co-184,1672-1764,1614 &1000/Ahd/2006/A.Y.02-03,03-04,06-07.02-03 Income Tax-Vapi 304/2, Iind Phase, Circle, Vapi Gidc, Vapi 396195 Pan: Aaccm 2764 Q

Section 143

…the order the findings of the Ld. AO. 54. Per contra, the learned counsel for the assessee submitted that the issue covered by amendment by Finance Act, 2005 and decision of Hon`ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd. v. CIT [2012] 343 ITR 89 (SC). 55. We have heard the rival submissions and perused the relevant material on record. We find that the Hon`ble Supreme Court in the case of Page 33 of 83 Mitsu Ltd. v. ACIT- Vapi/I.T.A. No.1671-1371,CO-184,1672-1764,1614 &1000/AHD/2006/A.Y.02-03,03-04,06-07.02-03 ACG Associated Capsules Pvt. Ltd. v. CIT [2012] 343 ITR 89 (SC) the Hon`ble Supr…

M/S. Mitsu Private Limited, Vapi vs. The ACIT, Vapi Circle, Vapi

In the result, the appeal of the Revenue is dismissed

ITA 1000/AHD/2016[2002-03]Status: DisposedITAT Surat04 May 2020AY 2002-03

Bench: Shri Sandip Gosain & Shri O. P. Meenav. ""यथ"/Respondent आ.अ.सं././././I "नधा"र अपीलाथ" Appellant S .T.A No. ण N वष"/A Y: 1 1671/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2006 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 2 1371/Ah 2002- Assistant V. M/S. Mitsu Limited, D/2006 03 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q Co.No.1 2002- M/S. Mitsu Limited, V. Assistant 3 84/Ahd/ 03 304/2, Iind Phase, Commissioner Of 2006 Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 4 1672/Ah 2003- M/S. Mitsu Limited, V. Assistant D/2006 04 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 5 1764/Ah 2003- Assistant V. M/S. Mitsu Limited, D/2006 04 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q 6 1000/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2016 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 7 3510/Ah 2000- Assistant V. M/S. Mitsu Limited, D/2016 01 Commissioner Of Page 2 Of 83 Mitsu Ltd. V. Acit- Vapi/I.T.A. No.1671-1371,Co-184,1672-1764,1614 &1000/Ahd/2006/A.Y.02-03,03-04,06-07.02-03 Income Tax-Vapi 304/2, Iind Phase, Circle, Vapi Gidc, Vapi 396195 Pan: Aaccm 2764 Q

Section 143

…the order the findings of the Ld. AO. 54. Per contra, the learned counsel for the assessee submitted that the issue covered by amendment by Finance Act, 2005 and decision of Hon`ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd. v. CIT [2012] 343 ITR 89 (SC). 55. We have heard the rival submissions and perused the relevant material on record. We find that the Hon`ble Supreme Court in the case of Page 33 of 83 Mitsu Ltd. v. ACIT- Vapi/I.T.A. No.1671-1371,CO-184,1672-1764,1614 &1000/AHD/2006/A.Y.02-03,03-04,06-07.02-03 ACG Associated Capsules Pvt. Ltd. v. CIT [2012] 343 ITR 89 (SC) the Hon`ble Supr…

M/S Eastman Industries, Ludh vs. The Commissioner of Income Tax

The appeal is dismissed

ITA/56/2001HC Punjab & Haryana05 Feb 2020

Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE AVNEESH JHINGAN

Section 143(3)Section 260ASection 80H

…t of interest received and paid, it is thereafter that net amount be considered for deduction under Section 80HHC of the Act. Reliance is placed on decision of the Supreme Court in M/s ACG Associated Capsules (P) Ltd. v. Commissioner of Income Tax, (2013) 343 ITR 89. The contention raised though is not directly covered by the question framed but as the same has been dealt with by the Tribunal and is therefore being adjudicated. The contention lacks merit. Once it is accepted that the income from lease and interest income is income from other sources, there is no question of it being eligible under Sectio…

Salaruria Investment Private Ltd., Kolkata vs. D.C.I.T., Circle-1(2), Kolkata

In the result, the appeal of the assessee is partly allowed

ITA 1375/KOL/2019[2013-14]Status: DisposedITAT Kolkata08 Jan 2020AY 2013-14

Bench: Shri P.M. Jagtap, Vice- & Shri Satbeer Singh Godara

Section 115JSection 14A

…than the interest paid amounting to Rs.3,43,43,713/- and the net interest of Rs.26,79,987/- earned by the assessee was shown as its income. By relying on the judgment of the Hon’ble Supreme Court in the case of ACG Associated Capsules Pvt. Limited –vs.- CIT (343 ITR 89), he has contended that the netting of interest should be done and there being no interest expenditure claimed by the assessee after netting, the question of disallowance on account of interest under section 14A read with Rule 8D(2)(ii) would not arise. It is observed that this contention raised by the ld. Counsel for the assessee is duly supporte…

M/S. La Opala RG Ltd., Kolkata vs. ACIT, Range - 12, Kolkata

In the result, the appeal of the assessee is allowed

ITA 559/KOL/2018[2013-14]Status: DisposedITAT Kolkata31 Oct 2019AY 2013-14

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 139Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 14ASection 263Section 80ISection 80l

…1 La Opala RG Ltd.., AY- 2013-14 आयकर अपील"य अधीकरण, "यायपीठ – “C” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA (सम") "ी ऐ. ट". वक", "यायीक सद"य एवं डॉ. अजु"न लाल सैनी, लेखा सद"य) [Before Shri A. T. Varkey, JM & Dr. A. L. Saini, AM] I.T.A. No. 559/Kol/2018 Assessment Year: 2013-14 M/s. La Opala R. G. Ltd. Vs. Assistant Commissioner of Income-tax, (PAN: AAACL5569J) Range-12, Kolkata Appellant Respondent Date of Hearing 18.09.2019 Date of Pronouncement 31.10.2019 For the Appellant Shri A. K. Tulsyan, FCA & Ms. Shikha Agarwal, ACA For the Respondent Dr. P. K. Srihari, CIT, DR ORDER Per S…

The ACIT, (OSD), Range-1, Ahmedabad vs. Gujarat Paguthan Energy Corporation Ltd., Ahmedabad

ITA 691/AHD/2014[2008-09]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2008-09

Bench: Shri Sudhanshu Srivastava & Shri Amarjit Singhआयकर अपील सं./I.T.A. No. 691/Ahd/2014 ("नधा"रण वष" / Assessment Year : 2008-09) Acit(Osd) बनाम/ Gujarat Paguthan Range-1, Energy Corporation Pvt. Vs. Ahmedabad Ltd. 6Th Floor, Chanakya Building, Off. Ashram Road, Ahmedabad- 380009 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaa Cg7 999 P .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Smt. Aparna Agarwal, CIT
Section 115JSection 194ASection 40Section 80GSection 80I

…80HH net incomes not derived from industrial undertaking should be excluded. In reaching this conclusion the Gujarat High Court has relied on the ratio of the judgment of the Hon’ble Apex Court in ACG Associate Capsules Pvt. Ltd. vs. CIT reported in (2012) 343 ITR 89 (SC). Accordingly, respectfully following the orders of the ITAT in assessee’s own case as aforementioned as well as the Hon’ble Gujarat High Court in the case of CIT vs. Nirma Ltd. (Supra) we find no reason to interfere with the findings of the Ld. CIT (A) on this issue also and we dismissed Ground No. 4 of the Revenue’s appeal. 13.3 Coming t…

Tata Chemicals Ltd, Mumbai vs. DCIT 2(3), Mumbai

ITA 2965/MUM/2015[2002-03]Status: DisposedITAT Mumbai22 Apr 2019AY 2002-03

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2002-03 Tata Chemicals Ltd. Deputy Commissioner Of Bombay House, Vs. Income Tax-2(3)(1), 5Th 24 Homi Mody Street, Floor, Aayakar Bhavan, Fort, Mumbai-400001 M.K. Road, Mumbai- 400020 Pan No. Aaact4059M Appellant Respondent Assessment Year: 2002-03 Deputy Commissioner Tata Chemicals Ltd. Of Income Tax-2(3)(1), Vs. Bombay House, 5Th Floor, Aayakar 24 Homi Mody Street, Bhavan, M.K. Road, Fort, Mumbai-400001 Mumbai-400020 Pan No. Aaact4059M Appellant Respondent Assessee By : Mr. Nitesh Joshi, Ar Revenue By : Mr. Choudhary Arun Kumar Singh, Date Of Hearing : 25/01/2019 Date Of Pronouncement: 22/04/2019

For Appellant: Mr. Nitesh Joshi, ARFor Respondent: Mr. Choudhary Arun Kumar Singh
Section 115JSection 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H” MUMBAI BEFORE SHRI C.N. PRASAD (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2002-03 Tata Chemicals Ltd. Deputy Commissioner of Bombay House, Vs. Income Tax-2(3)(1), 5th 24 Homi Mody Street, Floor, Aayakar Bhavan, Fort, Mumbai-400001 M.K. Road, Mumbai- 400020 PAN No. AAACT4059M Appellant Respondent Assessment Year: 2002-03 Deputy Commissioner Tata Chemicals Ltd. of Income Tax-2(3)(1), Vs. Bombay House, 5th Floor, Aayakar 24 Homi Mody Street, Bhavan, M.K. Road, Fort, Mumbai-400001 Mumbai-400020 PAN No. AAACT4059M Appellant Resp…

Ultimate Flexipack Ltd, New Delhi vs. DCIT, New Delhi

ITA 901/DEL/2009[2005-06]Status: DisposedITAT Delhi20 Mar 2019AY 2005-06

Bench: Shri R. K. Panda & Ms Suchitra Kamble & Ultimate Flexipack Ltd. Vs Dcit 305, 3Rd Floor, Bhanot Corner, Central Circle-18 Pamposh Enclave, Greater Kailash-1 Ara Centre,E-2, Jhandewalan New Delhi Aaacu6565D New Delhi (Appellant) (Respondent) Dcit Vs Ultimate Flexipack Ltd. Central Circle-18 305, 3Rd Floor, Bhanot Corner, Ara Centre, E-2, Jhandewalan Pamposh Enclave, Greater New Delhi Kailash-1 New Delhi Aaacu6565D (Appellant) (Respondent)

Section 115JSection 80Section 80I

…yment both have direct nexus with the know-how agreement. For this purpose, the Ld. AR relied upon the following judgments wherein the principle of netting has been approved: i) CIT vs. Nirma Ltd. 367 ITR 12 (Guj) ii) ACG Associated Capsules Pvt. Ltd. vs. CIT 343 ITR 89 (SC) iii) CIT vs. Sri Ram Honda Power Equip 289 ITR 475 (Del) iv) Keshavji Ravji and Co. vs. CIT 183 ITR 1 (SC) The Ld. AR further submitted that identical additional grounds were also raised before the Tribunal in A.Y. 2004-05 and the principle of netting has been accepted by the Tribunal vide its order dated 12.07.2018 in ITA No. 795/Del/2003.…