Which sections of the Income Tax Act does Bongaigaon Refinery and Petrochemicals Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 143(3), Section 148, Section 14A, Section 2(24), Section 28, Section 32(1)(ii).

Bongaigaon Refinery and Petrochemicals Ltd. v. CIT

Q: How many judgments cite Bongaigaon Refinery and Petrochemicals Ltd. v. CIT?

53 judgments on BharatTax cite Bongaigaon Refinery and Petrochemicals Ltd. v. CIT (251 ITR 329), spanning 2011 to 2026.

251 ITR 329Supreme Court of India2001#2168 most cited

What is Bongaigaon Refinery and Petrochemicals Ltd. v. CIT authority for?

Income earned during the construction phase of a project, which has a direct and inextricable nexus with the project's setting up, constitutes a capital receipt and reduces the project's cost, rather than being taxable as revenue income. This applies to incidental income like interest on funds (e.g., share capital, grants) temporarily parked before being utilized for the specific project.

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2011 to 2026.

Also referred to as

Bongaigaon Refinery & Petrochemicals Ltd. v. CIT · 251 ITR 329 · SC · capital receipt · income during construction · project cost reduction · section 56 · income from other sources · capital expenditure · inextricable link to project · interest on project funds · set-up of project

Sections most often in play

Section 143(3)Section 148 Section 14A Section 2(24)Section 28 Section 32(1)(ii)Section 35DDA Section 37(1)

Issues it is cited on

section 23(5)construction pe annual letting value annual value section 22 infrastructure facility profits and gains of business or profession section 56 income from other sources liable to tax section 24 capital expenditure

Judgments citing Bongaigaon Refinery and Petrochemicals Ltd. v. CIT

M/S Harbhajan Singh & Co., Sangrur vs. DCIT, Circle, Sangrur

Appeal of the Assessee is dismissed

ITA 727/CHANDI/2018[2012-13]Status: DisposedITAT Chandigarh29 Nov 2018AY 2012-13

For Appellant: Shri. Sanket SinglaFor Respondent: Smt. Chandrakanta

Section 143

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “ए”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ”A”, CHANDIGARH "ी संजय गग", "या"यक सद"य एवं डा. बी.आर.आर, कुमार, लेखा सद"य BEFORE: Sh.SANJAY GARG, JM & DR. B.R.R. KUMAR, AM आयकर अपील सं./ ITA No. 727/Chd/2018 "नधा"रण वष" / Assessment Year : 2012-13 M/s Harbhajan Singh & Co. The DCIT, Circle बनाम H.O. Singla Enclave, Sangrur Club Road, Sangrur "थायी लेखा सं./PAN No: AADFH9441H अपीलाथ"/Appellant ""यथ"/Respondent "नधा"रती क" ओर से/Assessee by : Shri. Sanket Singla राज"व क" ओर से/ Revenue by : Smt. Chandrakanta सुनवाई क" तार"ख/Date of Hearing: 26/11/2018 उदघ…

The Pr Commissioner of Income Tax vs. M/S Bank Note Paper Mill India Pvt Ltd

ITA/690/2017HC Karnataka21 Jun 2018

Bench: S.SUJATHA,VINEET KOTHARI

Section 260

…Court was whether such interest income was taxable or should go to reduce the capital cost of the project. The Hon’ble High Court, after considering the decisions of the Hon’ble Supreme Court in the case of Bongaigaon Refinary Petrochemicals Ltd. v. CIT (251 ITR 329)(SC), Bokara Steel Ltd. (supra), and Tuticorin Alkali Chemicals & Fertilizers Ltd. (supra) and its own decision in the case of CIT v. Karnataka Power Corporation, (247 ITR 268) and CIT v. Karnataka Urban Infrastructure and Development and Finance Corporation (284 ITR 582) held that such interest income would go to reduce the capital c…

M/S Bank Note Paper Mill India Private Limited, Mysore vs. The Income Tax Officer Circle-1(1)(3), Bangalore

In the result, the appeals of assessee are allowed

ITA 165/BANG/2018[2013-14]Status: DisposedITAT Bangalore23 May 2018AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Inturi Rama Rao

For Appellant: Shri G.S. Prashant, AdvocateFor Respondent: Shri G. Guruswamy, CIT (D.R)

…High Court was whether such interest income was taxable or should go to reduce the capital cost of the project. The Hon’ble High Court, after considering the decisions of the Hon’ble Supreme Court in the case of Bongaigaon Refinary Petrochemicals Ltd. v. CIT (251 ITR 329)(SC), Bokara Steel Ltd. (supra), and Tuticorin Alkali Chemicals & Fertilizers Ltd. (supra) and its own decision in the case of CIT v. Karnataka Power Corporation, (247 ITR 268) and CIT vs. Karnataka Urban Infrastructure and Development and Finance Corporation (284 ITR 582) held that such interest income would go to reduce the capital cost of the…

ITO, Bangalore vs. M/S Bank Note Paper Mills India Pvt. Ltd., Bangalore

In the result, Revenue’s appeal for asst

ITA 1162/BANG/2016[2012-13]Status: DisposedITAT Bangalore10 Nov 2017AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri Jason P Boazthe Income-Tax Officer, Ward-1(1)(3), Bengaluru. . Appellant Vs. M/S Bank Note Paper Mill India Pvt. Ltd., 1St Floor, S.R Complex, No.2, Thavarekere Main Road, S.G Palya, Drc Post, Bengaluru. . Respondent Pan – Aaecb3245M Appellant By : Shri B.R Sunil Kumar Singh, Cit Respondent By : Smt. Prathiba, Advocate Date Of Hearing : 7-11-2017 Date Of Pronouncement : -11-2017 O R D E R

For Appellant: Shri B.R Sunil Kumar Singh, CITFor Respondent: Smt. Prathiba, Advocate

Section 143(3)

…owing its own decision in the case of Bokaro Steel ( Supra) held that interest receipts and hire charges from contractors are capital receipts which would go to reduce capital cost. 6.7 In the case of Bongaigaon Refinery and petro Chemicals Ltd Vs CIT ( 2001) 251 ITR 329, the Supreme court followed the CIT Vs Bokaro Steel Ltd case, holding that the interest receipts etc. received during the pre-commencement period were not taxable but were in the nature of capital receipts which would go to reduce the project cost. 6.8 In case of CIT Vs VGR Foundation [2004] 292 ITR 132, Hon'ble Madras High Court has reviewed the…

DCIT, New Delhi vs. M/S. Bokaro Power Supply Co. Ltd., New Delhi

In the result, appeal of the assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 3692/DEL/2014[2010-11]Status: DisposedITAT Delhi31 Oct 2017AY 2010-11

Bench: Sh. Amit Shukla & Sh. O.P. Kantassessment Year: 2010-11 Vs. Dcit, Circle -3(1), New Delhi M/S. Bokaro Power Supply Co. Ltd., Ispat Bhavan, Lodhi Road, New Delhi Pan : Aabcb8976G (Appellant) (Respondent) & Assessment Year: 2010-11 Vs. M/S. Bokaro Power Supply Co. Dcit, Circle -3(1), New Delhi Ltd., 4Th Floor, Ispat Bhavan, Lodhi Road, New Delhi Pan : Aabcb8976G (Appellant) (Respondent) Assessee By Sh. M.P. Rastogi, Adv. & Sh. Anil Sharma, Agm Respondent By Sh. Sandip Kumar Mishra, Sr.Dr Date Of Hearing 11.10.2017 Date Of Pronouncement 31.10.2017 Order Per O.P. Kant, A.M.:

Section 143(2)Section 143(3)Section 43B

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘A’, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2010-11 Vs. DCIT, Circle -3(1), New Delhi M/s. Bokaro Power Supply Co. Ltd., Ispat Bhavan, Lodhi Road, New Delhi PAN : AABCB8976G (Appellant) (Respondent) And Assessment Year: 2010-11 Vs. M/s. Bokaro Power Supply Co. DCIT, Circle -3(1), New Delhi Ltd., 4th Floor, Ispat Bhavan, Lodhi Road, New Delhi PAN : AABCB8976G (Appellant) (Respondent) Assessee by Sh. M.P. Rastogi, Adv. & Sh. Anil Sharma, AGM Respondent by Sh. Sandip Kumar Mishra, Sr.DR Date of hearing…

Bokaro Power Supply Co. Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 3405/DEL/2014[2010-11]Status: DisposedITAT Delhi31 Oct 2017AY 2010-11

Section 143(2)Section 143(3)Section 43B

ITO, Bangalore vs. M/S Bank Note Paper Mill India (P) Ltd., Bangalore

In the result, cross objections of the assessee are dismissed

ITA 692/BANG/2015[2011-12]Status: DisposedITAT Bangalore17 Mar 2017AY 2011-12

Bench: Smt. Asha Vijayaraghavan & Shri Inturi Rama Raoincome-Tax Officer, Ward 1(1)(3), Bengaluru. … Appellant Vs. Bank Note Paper Mill India Pvt. Ltd. I Floor, Sr Complex, No.2, Tavarakere Main Road, Sg Paly, Drc Post, Bengaluru-560029. … Respondent Pan:Aaecb 3245M & Cross Objn.No.177/Bang/2015 (In Ita No.692/Bang/2015) (Assessment Year: 2011-12) (By The Assessee) ***** Assessee By : Shri S.Parthasarathi, Advocate. Revenue By : Smt.Swapna Das, Jcit(Dr).

For Appellant: Shri S.Parthasarathi, AdvocateFor Respondent: Smt.Swapna Das, JCIT(DR)

Section 143(2)Section 143(3)

…was taxable or should go to reduce the capital cost of the project. The Hon’ble High Court, after considering the decisions of the Hon’ble Supreme Court in the case of Bongaigaon ITA No.692 & CO 177/Bang/2015 Page 9 of 14 Refinary Petrochemicals Ltd. v. CIT (251 ITR 329)(SC), Bokara Steel Ltd. (supra), and Tuticorin Alkali Chemicals & Fertilizers Ltd. (supra) and its own decision in the case of CIT v. Karnataka Power Corporation, (247 ITR 268) and CIT vs. Karnataka Urban Infrastructure and Development and Finance Corporation (284 ITR 582) held that such interest income would go to reduce the capital cost of the…

Coastal Gujarat Power Ltd, Mumbai vs. ITO 6(2)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 2298/MUM/2015[2010-11]Status: DisposedITAT Mumbai15 Mar 2017AY 2010-11

Bench: Shri Amit Shukla, Jm & Shri Rajesh Kumar, Am आमकय अऩीर सं./ I.T.A. No 2298/Mum/2015 (निर्धारण वषा / Assessment Year : 2010-11) Coastal Gujarat Power Limited, The Income Tax Officer 34, Sant Tukaram Road, 6(2)(1), फनाभ/ Carnac Bunder, Aayakar Bhavan, Vs. Mumbai-400009 M K Road, Mumbai-400020 अऩीराथी की ओय से / Applicant By : Shri Farrokh V Irani प्रत्मथी की ओय से/Respondent By : Shri M C Omi Ningshen सुनवाई की तायीख /Date Of Hearing : 14.12.2016 घोषणा की तायीख /Date Of : 15.3.2017 Pronouncement आदेश / O R D E R Per Rajesh Kumar, A. M: This Is An Appeal Filed By The Assessee & Is Directed Against The Order Of The Ld.Cit(A), Mumbai, Dated25.2.2015 For The Assessment Year 2010-11. 2. The First Ground Raised By The Assessee Is Against Upholding The Order Of Assessing Officer As Regards Interest Income From Securities Deposited With Paschim Gujarat Vij Co.Ltd (Hereinafter Referred To As Pgvcl) For Availing Electricity For The Purposes Of Construction Of Power

For Respondent: Shri M C Omi Ningshen

Section 143(3)

…ping Corp. Ltd V/s CIT -240 ITR 24(Mad); ii) CIT V/s Delhi Brass and Metal Works Ltd 313 ITR 352; iii) CIT V/s Dr.V.P.Gopinathan iv) Tuticorin Alkali Chemicals and Fertilizers Ltd V/s CIT 227 ITR 172 (SC); v) Bongaigaon Refinery and Petrochemicals Ltd V/s CIT 251 ITR 329 (SC) 4. The FAA also dismissed the appeal of the assessee after considering the submissions and contentions as raised during the appellate proceedings by observing and holding as under: “4.3, I have carefully considered the facts stated by the A.O. in the impugned order as well as the oral and written submissions of the learned AR of the appella…

DCIT Cir 3(3)(2), Mumbai vs. Universal Chemical & Industries P.Ltd, Mumbai

ITA 2491/MUM/2015[2010-11]Status: DisposedITAT Mumbai07 Mar 2017AY 2010-11

Bench: S/Sh.Rajendra & Ramlal Negiआयकर अपील सं./I.T.A./2491/Mum/2015,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2010-11. िनधा"रण िनधा"रण वष" वष" Dcit-Circle-3(3)(2) M/S. Universal Chemical & Industries Room No.609, 6Th Floor Pvt.Ltd.,507, Raheja Centre, Vs. Aayakar Bhavan, M.K. Road 214, Nariman Point,Mumbai-400 021. Mumbai-400 020. Pan: Aaacu 0974 C (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से / Revenue By: Shri M.C. Omi Ningshen -Dr अपीलाथ" क" ओर से /Assessee By: S/Shri Kirit S. Sanghvi & Manish R. Reshamwala सुनवाई क" तारीख / Date Of Hearing: 15/02/2017 घोषणा क" तारीख / Date Of Pronouncement: 07.03.2017 आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य सद"य, राजे"" राजे"" केकेकेके अनुसार अनुसार/ Per Rajendra A.M.- लेखा लेखा लेखा सद"य सद"य राजे"" राजे"" अनुसार अनुसार Challenging The Order Dated 19/01/2015 Of The Cit (A)-8, Mumbai, The Assessing Officer (Ao) Has Filed The Present Appeal.Assessee-Company,Engaged In Business Of Manufacturing & Trading Chemicals,Filed Its Return Of Income On 14/10/2010, Declaring Loss Of Rs.11.30 Crores.The Ao Completed The Assessment Under Section 143 (3) Of The Act, On 28/03/2013, Determining Its Income At Rs.(-) 74.46 Lakhs.

For Appellant: S/Shri Kirit S. Sanghvi & Manish R. ReshamwalaFor Respondent: Shri M.C. Omi Ningshen -DR

Section 143Section 254(1)Section 43

…आयकर अपीलीय अपीलीय अिधकरण अिधकरण, मुंबई मुंबई “एच एच ” खंडपीठ खंडपीठ आयकर आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण मुंबई मुंबई एच एच खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“H ”Bench Mumbai सव"ी राजे"",लेखा सद"य एवं रामलाल नेगी, "याियक सद"य Before S/Sh.Rajendra,Accountant Member and Ramlal Negi,Judicial Member आयकर अपील सं./I.T.A./2491/Mum/2015,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2010-11. िनधा"रण िनधा"रण वष" वष" DCIT-Circle-3(3)(2) M/s. Universal Chemical & Industries Room No.609, 6th Floor Pvt.Ltd.,507, Raheja Centre, Vs. Aayakar Bhavan, M.K. Road 214, Nariman Point,Mumbai-400 021. Mumbai-400 020. PAN…

Il & Fs Tamil Nadu Power Company Limited, Chennai vs. ACIT, Chennai

In the result, the disallowance made by the AO is directed to be withdrawn

ITA 881/CHNY/2015[2010-11]Status: DisposedITAT Chennai14 Feb 2017AY 2010-11

Bench: Shri A. Mohan Alankamony

Section 143(1)

…not be treated as income. Similar view was expressed by the Supreme Court in the case Kamal Co- operative Sugar Mills Ltd. [2000] 243 ITR 2. Identical view was also taken by the Supreme Court in the cases of Bongaigaon Refinary and Petrochemicals Ltd. [2001] 251 ITR 329 and Karnataka Power Corporation [2001] 247 ITR 268. 5. In our opinion, in view of the above clear cut ruling by the Supreme Court it is necessary to give a finding of fact in regard to monies that were kept in deposit from out of the share application monies. In the light of the Supreme Court decision in Tuticorin Alkali Chemicals and Fertilizers…

DCIT 7(2), Mumbai vs. Swan Energy Ltd, Mumbai

In the result appeal filed by the Revenue is dismissed

ITA 5442/MUM/2013[2008-09]Status: DisposedITAT Mumbai24 Oct 2016AY 2008-09

Bench: Shri R.C. Sharma() & Shri Amarjeet Singh () Assessment Year: 2008-09

For Appellant: Shri. J.P. BairagraFor Respondent: Shri. H.N. Singh

Section 143(3)

…, interest on money deposited to open letter of credit for purchase of machinery was held to be capital receipt to be capitalized with the cost of machinery and not assessable as income from other sources. In the case of Bongaigaon Refinery and Petrochemicals 251 ITR 329, (SC), the income received in the pre-commencement period was held not chargeable to tax to be adjusted against project cost. In the case of Karnatakla Power Corporation, 247 ITR 268 (SC), the pre-commencement period receipts were held to be adjustable against construction cost not chargeable to tax. In the case of consolidated Fibers and Chemica…

Ntpc Sail Power Company Pvt. Ltd

ITA/1238/2011HC Delhi17 Jul 2012

…not related to this expansion work was claimed as revenue expenditure in the books which had been allowed. The CIT (A) granted the relief by following the judgement of Hon'ble Supreme Court in the case of Bongaigaon Refinery & Petrochemicals Ltd. vs. CIT 251 ITR 329 where the decision of Tuticorin Alkalies Chemicals & Fertilisers Ltd. vs. CIT 227 ITR 172 was also referred. We would like to state that in the decision of Bongaigaon Refinery & Petrochemicals Limited, Hon'ble Supreme Court has held as under :- “The High Court has already held that the interest income derived by the assessee during its for…

Commissioner of Income Tax vs. Jaypee Dsc Ventures Ltd

Accordingly, the same stands dismissed

ITA/357/2010HC Delhi11 Mar 2011

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 143(3)Section 260A

…TR 172, will not be attracted. The more appropriate decision in the factual situation in the present case is in CIT v. Bokaro Steel Ltd. [1999] 236 ITR 315 (SC).” 16. In Bongaigaon Refinary And Petrochemicals Ltd. v. Commissioner of Income-Tax, [2001] 251 ITR 329 (SC), the question that arose for consideration was whether the tribunal was justified in holding that the items of income derived by the assessee during the formation period for the main business were not taxable income but were to be adjusted against the project cost for the oil refinery and petrochemicals, the main business for which the…