Addl. Commissioner of Income-tax, New Delhi v. Indian Drugs and Pharmaceuticals ltd.

141 ITR 134High Court1983#6853 most cited

What is Addl. Commissioner of Income-tax, New Delhi v. Indian Drugs and Pharmaceuticals ltd. authority for?

Receipts from the sale of tender forms, supply of water and electricity to contractors during factory construction, and sale of stones, boulders, grass, and trees are capital receipts, not independent income. These are inextricably linked to setting up the business and reduce the capital cost.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2024.

Also referred to as

Addl. Commissioner of Income-tax v. Indian Drugs and Pharmaceuticals Ltd. · capital receipts · business setting up · construction receipts · tender forms · sale of materials · incidental receipts · capital expenditure · Delhi High Court

Sections most often in play

Section 10(5) of the Indian Income-tax ActSection 143(3) of the Income-tax ActSection 1922Section 1961Section 22 of the Income-tax ActSection 56 of the Income Tax Act

Issues it is cited on

section 293section 40a(i)section 10(5)section 44csection 32asection 74section 73section 42section 32(1)(iia)initial assessment yearsection 72vsv scheme

Judgments citing Addl. Commissioner of Income-tax, New Delhi v. Indian Drugs and Pharmaceuticals ltd.

ACIT, Special Range-6, New Delhi vs. Mb Power (Madhya Pradesh) Ltd, New Delhi

Appeal is allowed for statistical purposes in above terms

ITA 7967/DEL/2019[2016-17]Status: DisposedITAT Delhi05 Dec 2024AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri M. Balaganeshassessment Year: 2016-17 Acit, Vs. Mb Power (Madhya Pradesh) Special Range-6, Ltd., New Delhi 239, Okhla Industrial Estate, Phase-Iii, New Delhi Pan :Aafcm6698A (Appellant) (Respondent) Assessee By Sh. Satyan Sethi, Adv. Sh. A.T. Panda, Adv. Department By Sh. B.S. Anand, Sr. Dr Date Of Hearing 26.11.2024 Date Of Pronouncement 05.12.2024 Order

Section 143(3)Section 56

…the contractors and have gone to reduce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. In the case of Addl. CIT v. Indian Drugs and Pharmaceuticals Ltd. [1983] 141 ITR 134, the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. Receipts from sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were held…

Cairn Energy Hydrocarbon Ltd., Gurgaon vs. DCIT, Intl. Taxation, Circle, Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6278/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Jan 2023AY 2014-15

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…duce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. In the case of Addl. Commissioner of Income-tax, New Delhi V. Indian Drugs and Pharmaceuticals ltd. ([1983] 141 ITR 134), the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. receipts from sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were hel…

Cairn Energy Hydrocarbon Ltd., Gurgaon vs. DCIT, Intl. Taxation, Circle, Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6277/DEL/2018[2013-14]Status: DisposedITAT Delhi31 Jan 2023AY 2013-14

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…duce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. In the case of Addl. Commissioner of Income-tax, New Delhi V. Indian Drugs and Pharmaceuticals ltd. ([1983] 141 ITR 134), the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. receipts from sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were hel…

DCIT, Intl. Taxation, Circle, Gurgaon vs. Cairn Energy Hydrocarbon Ltd., Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 5989/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Jan 2023AY 2014-15

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…duce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. In the case of Addl. Commissioner of Income-tax, New Delhi V. Indian Drugs and Pharmaceuticals ltd. ([1983] 141 ITR 134), the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. receipts from sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were hel…

DCIT, Intl. Taxation, Circle, Gurgaon vs. Cairn Energy Hydrocarbon Ltd., Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 5988/DEL/2018[2013-14]Status: DisposedITAT Delhi31 Jan 2023AY 2013-14

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…duce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. In the case of Addl. Commissioner of Income-tax, New Delhi V. Indian Drugs and Pharmaceuticals ltd. ([1983] 141 ITR 134), the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. receipts from sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were hel…

DDIT, New Delhi vs. M/S. Cairn Energy Hydrocarbons Ltd., Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6357/DEL/2013[2010-11]Status: DisposedITAT Delhi31 Jan 2023AY 2010-11

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…duce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. In the case of Addl. Commissioner of Income-tax, New Delhi V. Indian Drugs and Pharmaceuticals ltd. ([1983] 141 ITR 134), the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. receipts from sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were hel…

Cairn Energy Hydrocarbons Ltd., Gurgaon vs. DDIT, New Delhi

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6346/DEL/2013[2010-11]Status: DisposedITAT Delhi31 Jan 2023AY 2010-11

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…duce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. In the case of Addl. Commissioner of Income-tax, New Delhi V. Indian Drugs and Pharmaceuticals ltd. ([1983] 141 ITR 134), the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. receipts from sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were hel…

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)

…Tribunal in camp at New Delhi in the case of ITO v. National Hydro Electric Power Corpn. [IT Appeal No. 1313 (Delhi) of 1983 dated 30-10-1984] and that the decision of the Delhi High Court in the case of Addl. CIT v. Indian Drugs & Pharmaceuticals Ltd. [1983] 141 ITR 134 which was followed by the Division Bench in the assessee's case in preference to Special Bench case needed to be explained in the facts and circumstances of the case. As a result of the acceptance of the assessee's request for constituting a larger Bench, the present Bench consisting of five Members was constituted by the President. There were th…

Meja Urja Nigam (P) Ltd., Allahabad vs. Income Tax Office Ward-2 (2), Allahabad

In the result, both the appeals of the assessee for ay: 2015-16 and 2016-17

ITA 54/ALLD/2020[2015-16]Status: DisposedITAT Allahabad03 Mar 2021AY 2015-16

Bench: Shri.Vijay Pal Rao & Shri Ramit Kochar

For Appellant: Ms.Namita S. Pandey, CIT DRFor Respondent: Shri Parv Agrawal, CA
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH, ALLAHABAD (THROUGH VIRTUAL COURT), BEFORE SHRI.VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ITA No.54 & 55/ALLD/2020 Assessment Years: 2015-16 & 2016-17 M/s Meja Urja Nigam Pvt. Ltd., v. Income Tax Officer, 5th Floor, Sangam Place, Civil Ward-2(2), Lines, Allahabad,U.P. Allahabad, U.P. PAN:AAFCM 8107L (Appellant) (Respondent) Revenue by: Shri Parv Agrawal, CA Assessee by: Ms.Namita S. Pandey, CIT DR Date of hearing: 24.02.2021 Date of pronouncement: 09.03.2021 O R D E R PER Bench: These two appeals, filed by assessee, being ITA…

M/S. Brahmaputra Cracker & Polymer Ltd., Dibrugarh vs. Deputy Commissioner of Income Tax, Circle - 2, Dibrugarh

In the result, all the appeals of the revenue are dismissed and all the appeals of the assessee are allowed

ITA 200/GTY/2019[2015-16]Status: DisposedITAT Guwahati22 Oct 2020AY 2015-16

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

…the contractors and have gone to reduce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. 6. In the case of Addl. CIT v. Indian Drugs & Pharmaceuticals Ltd. [1983] 141 ITR 134, the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. Receipts from the sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were…

M/S. Brahmaputra Cracker & Polymer Ltd., Dibrugarh vs. Deputy Commissioner of Income Tax, Circle - 2, Dibrugarh

In the result, all the appeals of the revenue are dismissed and all the appeals of the assessee are allowed

ITA 94/GTY/2018[2011-12]Status: DisposedITAT Guwahati22 Oct 2020AY 2011-12

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

…the contractors and have gone to reduce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. 6. In the case of Addl. CIT v. Indian Drugs & Pharmaceuticals Ltd. [1983] 141 ITR 134, the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. Receipts from the sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were…

Deputy Commissioner of Income Tax, Circle - 2, Dibrugarh vs. M/S. Brahmaputra Cracker & Polymer Ltd., Dibrugarh

In the result, all the appeals of the revenue are dismissed and all the appeals of the assessee are allowed

ITA 89/GTY/2018[2011-12]Status: DisposedITAT Guwahati22 Oct 2020AY 2011-12

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

…the contractors and have gone to reduce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. 6. In the case of Addl. CIT v. Indian Drugs & Pharmaceuticals Ltd. [1983] 141 ITR 134, the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. Receipts from the sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were…

DCIT Cent.Cir-1(4), Mumbai vs. M/S.International Mineral Trading Co. Private Limited, Mumbai

Accordingly grounds raised by the revenue are dismissed

ITA 615/MUM/2018[2013-14]Status: DisposedITAT Mumbai27 Sept 2019AY 2013-14

Bench: Shri S. Rifaur Rahman, Am & Shri Ram Lal Negi, Jm आयकरअपीलसं./ I.T.A. No. 615/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2013-14)

For Appellant: Shri Kumar PadmapaniFor Respondent: Shri Gaurav Kabra, AR
Section 143(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, AM & SHRI RAM LAL NEGI, JM आयकरअपीलसं./ I.T.A. No. 615/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2013-14) M/s International Mineral DCIT Cen Cir -1(4) Trading Co. Pvt. Ltd. Room No. 902, Pratistha बिधम/ 51/53, A Wing, Mittal Bhavan, 9th floor, Old Vs. Court, J. B. Marg, Nariman CGO Building, Annexe, Pint, Mumbai-400 021. Mumbai-400 020 स्थायीलेखासं./जीआइआरसं./PAN No. AABCI8504K (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant : Shri Kumar Padmapani Bora, DR by प्रत्यथीकीओरसे/Respondentby : Shri Gaurav Kabra…

The ITO, Ward-1(1), Ahmedabad vs. M/S. Adani Power Rajasthan Ltd., Ahmedabad

In the result, cross objection of the assessee on this score stands allowed

ITA 1430/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad18 Jan 2019AY 2011-12

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad, Judicial Memebr आयकर अपील सं./I.T.A. No. 1430/Ahd/2015 With Cross Objection No. 114/Ahd/2015 ("नधा"रण वष" / Assessment Year : 2011-12)

For Appellant: Parin Shah, A.RFor Respondent: Shri Mudit Nagpal, Sr. D.R
Section 56

…he contractors and have gone to reduce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. 6. In the case of Addl. CIT v. Indian Drugs & Pharmaceutical^ Ltd. [1983] 141 ITR 134, the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. Receipts from the sale of tender forms and supply of water and electricity to the contractors engaged in construction as also receipts on account of sale of stones, boulders, grass and trees were…

Asst CIT 6(2)(2), Mumbai vs. Essar Power Gujarat Ltd, Mumbai

ITA 4020/MUM/2016[2011-12]Status: DisposedITAT Mumbai01 Jun 2018AY 2011-12

Bench: S/Sh.Rajendra & Amarjit Singhआयकर अपील सं./I.T.A./4020/Mum/2016,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2011-12 िनधा"रण िनधा"रण वष" वष" आयकर अपील सं./I.T.A./4019/Mum/2016,िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2012-13 वष" Acit-6(2)(2) M/S. Essar Power Gujarat Ltd. Room No.563, Aayakar Bhavan, Essar House, 11 Kk Marg, Mahalaxmi Vs. M.K. Road, Mumbai-400 020. Mumbai-400 034. Pan:Aabce 7510 K (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से / Revenue By: Shri Virendra Singh अपीलाथ" क" ओर से /Assessee By: Shri Anuj Kishnadwala सुनवाई क" तारीख / Date Of Hearing: 21/05/2018 घोषणा क" तारीख / Date Of Pronouncement: 01/06/2018 आयकर आयकर आयकर अिधिनयम आयकर अिधिनयम अिधिनयम,1961 क" अिधिनयम क" क" धारा क" धारा धारा 254(1)के अ"तग"त आदेश धारा के अ"तग"त आदेश के अ"तग"त आदेश के अ"तग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य लेखा सद"य ,राजे"" राजे"" केकेकेके अनुसार अनुसार - Per Rajendra, Am- लेखा लेखा सद"य सद"य राजे"" राजे"" अनुसार अनुसार Challenging The Orders Dated 23/03/2016 Of The Cit(A)-12,Mumbai,The Assessing Officer (Ao)Has Filed Above Appeals.Assessee-Company Is Engaged In The Business Setting Up Of Coal Based Power Plant.As The Issues Raised In Both The Appeals Are Similar,So,We Are Adjudicating Them Together.Details Of Filings Of Returns,Retunred Incomes,Assessed Incomes Can Be Summar -Ised As Under: Ay. Roi Filed On Returned Income Asst.Date Assessed Income 2011-12 05/09/2011 Rs.3.65 Crores 18/03/2014 Rs.6.99 Crores 2012-13 27/09/2012 Rs.5.44 Crores 29/12/2014 Rs.11.14 Crores

For Appellant: Shri Anuj KishnadwalaFor Respondent: Shri Virendra Singh
Section 254(1)

…आयकर आयकर आयकर अपीलीय आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, मुंबई अिधकरण मुंबई मुंबई “जेजेजेजे” खंडपीठ मुंबई खंडपीठ खंडपीठ मेमेमेमे खंडपीठ Income-tax Appellate Tribunal -“J”Bench Mumbai सव"ी राजे"",लेखा सद"य एवं अमरजीत "सह, "याियक सद"य Before S/Sh.Rajendra,Accountant Member and Amarjit Singh,Judicial Member आयकर अपील सं./I.T.A./4020/Mum/2016,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2011-12 िनधा"रण िनधा"रण वष" वष" आयकर अपील सं./I.T.A./4019/Mum/2016,िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2012-13 वष" ACIT-6(2)(2) M/s. Essar Power Gujarat Ltd. Room No.563, Aayakar Bhavan, Essar Hou…

ACIT, New Delhi vs. M/S. Porbandar Solar Power Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 6539/DEL/2015[2012-13]Status: DisposedITAT Delhi30 Aug 2016AY 2012-13

Bench: Shri H.S. Sidhuassessment Year: 2012-13

For Appellant: Shri Sanjeev Kapoor, CAFor Respondent: Sh. FR Meena, Sr. DR
Section 143(1)Section 143(2)Section 143(3)

…he contractors and have gone to reduce the cost of construction. They have, therefore, been rightly held as capital receipts and not income of the assessee from any independent source. In the case of Addl. CIT v. Indian Drugs and Pharmaceuticals Ltd. [1983] 141 ITR 134, the Delhi High Court considered a case where the work of construction of the factory of the assessee was in progress and production had not commenced. Receipts from sale of tender forms and supply of water and electricity to, the contractors engaged in construction as 9 also receipts on account of sale of stones, boulders, grass and trees we…

Addl. Commissioner of Income-tax, New Delhi v. Indian Drugs and Pharmaceuticals ltd. (141 ITR 134) — Cited in 16 Judgments | BharatTax