Cambay Electric Supply Industrial Co. Ltd. v. CIT

113 ITR 84Supreme Court of India1978#355 most cited

What is Cambay Electric Supply Industrial Co. Ltd. v. CIT authority for?

The expression "attributable to" is wider in scope and import than the expression "derived from" when interpreting provisions related to profits and gains from a business or industrial undertaking. The legislature's deliberate use of these distinct phrases indicates a nuanced intent regarding the directness of the nexus between income and the source.

245

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 1999 to 2026.

Also referred to as

Cambay Electric Supply Industrial Co. Ltd. v. CIT · 113 ITR 84 · Section 80P · derived from · attributable to · scope of expressions · profits and gains · business income attribution · industrial undertaking income · income interpretation · direct nexus

Sections most often in play

Section 80P(2)(a)(i)Section 143(3)Section 80P(2)(d)Section 80PSection 250Section 263Section 56Section 2(19)
Read the full judgment

Issues it is cited on

section 57(i)section 80(2)(d)section 80(p)(2)(a)section 286section 161section 80p(2)(a)(iii)section 80p(2)(c)section 60section 80jinterest on securitiessection 80p(1)section 2(19)

Judgments citing Cambay Electric Supply Industrial Co. Ltd. v. CIT

Graphite India Ltd., Kolkata vs. ACIT, R-11, Kolkata

In the result, assessee’s appeal is partly allowed

ITA 305/KOL/2008[2003-2004]Status: DisposedITAT Kolkata24 Aug 2016AY 2003-2004

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Ravi

Section 154Section 80Section 80HSection 80I

…g deduction u/s. 80IA. The aforesaid view is supported by the principle laid down in the following decisions. Liberty India vs. CIT (2009) 317 ITR 218 (SC) CIT vs.Sterling Foods (1999) 237 ITR 579 (SC) Cambay Electric Supply Industrial Co. Ltd. vs. CIT (1978) 113 ITR 84 (SC) ITA No.304-05 & 559/Kol/2008 A.Y 03-04 Graphit e India Ltd. vs. Addl. CIT, Rng-11, Kol. Page 14 Pandian Chemicals Ltd. vs. CIT (2003) 262 ITR 278 (SC) Further, Co-ordinate Bench in the case of Balarampur Chini Mills Ltd. vs. DCIT (2011) 140 TTJ 73 (Kol)(UO) has categorically held that expenditure which does not have first degree relation wit…

Graphite India Ltd., Kolkata vs. ACIT, R-11, Kolkata

In the result, assessee’s appeal is partly allowed

ITA 304/KOL/2008[2003-2004]Status: DisposedITAT Kolkata24 Aug 2016AY 2003-2004

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Ravi

Section 154Section 80Section 80HSection 80I

…g deduction u/s. 80IA. The aforesaid view is supported by the principle laid down in the following decisions. Liberty India vs. CIT (2009) 317 ITR 218 (SC) CIT vs.Sterling Foods (1999) 237 ITR 579 (SC) Cambay Electric Supply Industrial Co. Ltd. vs. CIT (1978) 113 ITR 84 (SC) ITA No.304-05 & 559/Kol/2008 A.Y 03-04 Graphit e India Ltd. vs. Addl. CIT, Rng-11, Kol. Page 14 Pandian Chemicals Ltd. vs. CIT (2003) 262 ITR 278 (SC) Further, Co-ordinate Bench in the case of Balarampur Chini Mills Ltd. vs. DCIT (2011) 140 TTJ 73 (Kol)(UO) has categorically held that expenditure which does not have first degree relation wit…

DCIT 10(3)(2), Mumbai vs. Phoenix Mecano (I) Pltd, Mumbai

In the result, appeal of the Revenue is allowed

ITA 4620/MUM/2015[2011-12]Status: DisposedITAT Mumbai12 Aug 2016AY 2011-12

Bench: Shri Joginder Singh, Assessment Year:2011-12

Section 10ASection 10BSection 70Section 80A(1)Section 80B(5)Section 80C

…f dividend computed in accordance with the provisions of the Act and forming part of the gross total income and not with reference to the full amount of dividend received by the assessee. 10. In case of Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978] 113 ITR 84 (SC), the Court considered as under : "The question which arose in Cambay Electric Supply Co.’s case ( 113 ITR 84) was whether unabsorbed depreciation and unabsorbed development rebate were liable to be deducted in arriving at the figure of profits and gains exigible to deduction of 8 per cent contemplated in sub-section (1) of section 80E. The ar…

ACIT, Circle - 56, Kolkata vs. The West Bengal State Co-Opt. Bank Ltd., Kolkata

In the result, the appeals as well as the cross-objections are dismissed

ITA 737/KOL/2011[1996-97]Status: DisposedITAT Kolkata03 Aug 2016AY 1996-97

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am] I.T.Anos.737-742/Kol/2011 Assessment Years : 1996-97 To 2001-02 A.C.I.T., Circle-56, -Vs.- The West Bengal State Co-Operative Kolkata Bank Ltd.Kolkata [Pan : Aaaat 7072 N] (Respondent) (Appellant) C.O.Nos.36-40/Kol/2011 (A/O I.T.A Nos. 737-741/Kol/2011 ) Assessment Years : 1996-97 To 2000-2001 The West Bengal State Co-Operative -Vs.- A.C.I.T., Circle-56, Bank Ltd., Kolkata Kolkata [Pan : Aaaat 7072 N] (Respondent) (Appellant) For The Department : Shri G.Mallikarjuna, Cit(Dr) For The Assessee : Shri N.C.Mondal, Ca Date Of Hearing : 27.07.2016. Date Of Pronouncement : 03.08.2016. Order Per Bench

For Appellant: Shri N.C.Mondal, CAFor Respondent: Shri G.Mallikarjuna, CIT(DR)
Section 147Section 80PSection 80P(2)(a)

…aid Section is of great importance. The Apex Court had an occasion to consider the meaning of the word 'attributable' as supposed to derive from its use in various other provisions of the statute in the case of Cambay Electric Supply Industrial Co. Ltd. v.CIT 113 ITR 84 (SC) (at page 93) as under:— 'As regards the aspect emerging from the expression "attributable to" occurring in the phrase "profits and gains attributable to the business of" the specified industry (here generation and distribution of electricity) on which the learned Solicitor-General relied, it will be pertinent to observe that the legislature h…

Lupin Ltd, Mumbai vs. Asst CIT Ltu, Mumbai

The appeal of the assessee is allowed

ITA 825/MUM/2012[2003-04]Status: DisposedITAT Mumbai13 Jul 2016AY 2003-04

Bench: Shri R.C. Sharma & Shri Sandeep Gosain: (A.Y : 2003-04) M/S. Lupin Limited Vs. Acit Ltu, 159, C.S.T Road, Kalina, Mumbai. Santa Cruz (East), Mumbai 400 098. Pan : Aaacl1069K (Appellant) (Respondent)

For Appellant: Shri Rajan Vora &For Respondent: Shri Manoj Kumar
Section 115JSection 127Section 139Section 143(3)Section 147Section 148Section 154Section 35Section 80Section 80I

…ssing Officer while framing assessment u/s 143(3) and therefore case can not be reopened, is not acceptable and hence rejected. 6.2 coming to the issue of facts of the case, as has been held in the case laws of Cambay Electric Supply Industrial Co Ltd v. CIT 113 ITR 84 (SC), CIT v. Sterling Foods 237 ITR 579 (SC), CIT v. Pandian Chemicals Ltd 262 ITR 278 19 M/s. Lupin Limited (SC), CIT v. Ritesh Industries Ltd 274 ITR 324 (Del), CIT v. Sundaram Clayton Ltd 281 ITR 425 (Mad), Liberty India v. CIT 293 ITR 520 (P&H) and Mentha & Allied Products Pvt Ltd 302 1TR 144 (All) that the income that is 'derived‟ from an i…

Sanghamithra Rural Financial Services, Bangalore vs. DDIT, Bangalore

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 1205/BANG/2015[2009-10]Status: DisposedITAT Bangalore13 Jul 2016AY 2009-10

Bench: Smt. Asha Vijayaraghavansanghamithra Rural Financial Services, 612, 1 ‘C’ Main Road, Domlur Layout, Bangalore-560 071. ….. Appellant Pan: Aaecs 0038H Vs. The Dy. Director Of Income-Tax(Exemptions), Circle-17(1), Bangalore. ….. Respondent Appellant By : Shri Ravishankar S.V, Advocate Respondent By : Shri Sunil Kumar Agarwala, Jcit(Dr) Date Of Hearing : 13-06-2016 Date Of Pronouncement : 13-07-2016

For Appellant: Shri Ravishankar S.V, AdvocateFor Respondent: Shri Sunil Kumar Agarwala, JCIT(DR)
Section 11Section 11(1)Section 12ASection 25Section 35(2)(iv)

…was further submitted that the said decision has no application to the facts of the assessee’s case. The ld. counsel for the assessee submitted that the following decisions are directly applicable to charitable institutions: (i) 135 ITR 485 Madras (ii) (ii) 113 ITR 84 SC Page 4 of 11 (iii) Karnataka High Court in the case of Society of the Sisters of St. Anne (1984), 146 ITCL 28, & (iv) 36 ITCL 537, Delhi High Court. 6. The ld. counsel for the assessee further submitted that the Bangalore Tribunal has been consistently allowing deduction on depreciation and also additions to fixed assets in the year of purc…

DCIT 5(2), Mumbai vs. Lahoti Overseas Ltd, Mumbai

In the result, appeal of the assessee company in ITA

ITA 3812/MUM/2012[2003-04]Status: DisposedITAT Mumbai30 Mar 2016AY 2003-04

Bench: Shri Amit Shukla & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 3812/Mum/2012 ("नधा"रण वष" / Assessment Year : 2003-04) Dy. Commissioner Of Income M/S Lahoti Overseas Ltd., बनाम/ Tax , 5(2),Room No. 571, 307, Arun Chambers, V. 5 Th Floor, Tardeo Road, Tardeo, Aayakar Bhavan, Mumbai - 400034. M.K. Road, Mumbai – 400 020. "थायी लेखा सं./Pan : Aaacl2578 H .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri Yogesh TharFor Respondent: Shri Ganesh Bare (Sr.DR)
Section 133ASection 143(3)Section 147Section 148Section 151(1)

…“profit attributable to” and “profit derived from” a business. In one of the early judgments, namely, Cambay Electric Supply Industrial Company Limited ITA 3813/M/12, 821/M/14, 95 ITA 3812/M/12 & 3821/M/12 v. Commissioner of Income Tax, Gujarat II, (1978) 2 SCC 644, this Court had to construe Section 80-E of the Income Tax Act, which referred to profits and gains attributable to the business of generation or distribution of electricity. This Court held: “As regards the aspect emerging from the expression "attributable to" occurring in the phrase "profits and gains attributable to the business of" the specifi…

Canara Bank, Bangalore vs. Addl. C.I.T., Bangalore

In the result, appeal by the revenue is partly allowed

ITA 693/BANG/2012[2008-09]Status: DisposedITAT Bangalore30 Mar 2016AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior AdvocateFor Respondent: Shri G.R.Reddy, CIT(DR)
Section 115JSection 143(2)Section 143(3)Section 14ASection 35DSection 36(1)(viia)

…e calculated with reference to the amount of dividend income computed in accordance with the provisions of the Act. While coming to such conclusion, Hon’ble Apex Court taken note of its earlier decision in the case of Cambay Electric Supply Industry Co. Ltd. (113 ITR 84) wherein the Hon’ble Apex Court held that for the purpose of allowing deduction under the said provision, it was necessary to first ITA Nos.479 & 530/09, ……693 & 684/B/12 Page 10 of 42 compute total income of the assessee in accordance with other provisions of the Act i.e. in accordance with all the provisions except sec.80E. Earlier decision of…

JCIT, Bangalore vs. M/S Canara Bank, Bangalore

In the result, appeal by the revenue is partly allowed

ITA 684/BANG/2012[2008-09]Status: DisposedITAT Bangalore30 Mar 2016AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior AdvocateFor Respondent: Shri G.R.Reddy, CIT(DR)
Section 115JSection 143(2)Section 143(3)Section 14ASection 35DSection 36(1)(viia)

…e calculated with reference to the amount of dividend income computed in accordance with the provisions of the Act. While coming to such conclusion, Hon’ble Apex Court taken note of its earlier decision in the case of Cambay Electric Supply Industry Co. Ltd. (113 ITR 84) wherein the Hon’ble Apex Court held that for the purpose of allowing deduction under the said provision, it was necessary to first ITA Nos.479 & 530/09, ……693 & 684/B/12 Page 10 of 42 compute total income of the assessee in accordance with other provisions of the Act i.e. in accordance with all the provisions except sec.80E. Earlier decision of…

Addl.Ci.T., Bangalore vs. M/S Canara Bank, Bangalore

In the result, appeal by the revenue is partly allowed

ITA 813/BANG/2011[2007-08]Status: DisposedITAT Bangalore30 Mar 2016AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior AdvocateFor Respondent: Shri G.R.Reddy, CIT(DR)
Section 115JSection 143(2)Section 143(3)Section 14ASection 35DSection 36(1)(viia)

…e calculated with reference to the amount of dividend income computed in accordance with the provisions of the Act. While coming to such conclusion, Hon’ble Apex Court taken note of its earlier decision in the case of Cambay Electric Supply Industry Co. Ltd. (113 ITR 84) wherein the Hon’ble Apex Court held that for the purpose of allowing deduction under the said provision, it was necessary to first ITA Nos.479 & 530/09, ……693 & 684/B/12 Page 10 of 42 compute total income of the assessee in accordance with other provisions of the Act i.e. in accordance with all the provisions except sec.80E. Earlier decision of…

Canara Bank, Bangalore vs. Addl.C.I.T., Bangalore

In the result, appeal by the revenue is partly allowed

ITA 793/BANG/2011[2007-08]Status: DisposedITAT Bangalore30 Mar 2016AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior AdvocateFor Respondent: Shri G.R.Reddy, CIT(DR)
Section 115JSection 143(2)Section 143(3)Section 14ASection 35DSection 36(1)(viia)

…e calculated with reference to the amount of dividend income computed in accordance with the provisions of the Act. While coming to such conclusion, Hon’ble Apex Court taken note of its earlier decision in the case of Cambay Electric Supply Industry Co. Ltd. (113 ITR 84) wherein the Hon’ble Apex Court held that for the purpose of allowing deduction under the said provision, it was necessary to first ITA Nos.479 & 530/09, ……693 & 684/B/12 Page 10 of 42 compute total income of the assessee in accordance with other provisions of the Act i.e. in accordance with all the provisions except sec.80E. Earlier decision of…

JCIT, Bangalore vs. M/S Canara Bank, Bangalore

In the result, appeal by the revenue is partly allowed

ITA 601/BANG/2010[2005-06]Status: DisposedITAT Bangalore30 Mar 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior AdvocateFor Respondent: Shri G.R.Reddy, CIT(DR)
Section 115JSection 143(2)Section 143(3)Section 14ASection 35DSection 36(1)(viia)

…e calculated with reference to the amount of dividend income computed in accordance with the provisions of the Act. While coming to such conclusion, Hon’ble Apex Court taken note of its earlier decision in the case of Cambay Electric Supply Industry Co. Ltd. (113 ITR 84) wherein the Hon’ble Apex Court held that for the purpose of allowing deduction under the said provision, it was necessary to first ITA Nos.479 & 530/09, ……693 & 684/B/12 Page 10 of 42 compute total income of the assessee in accordance with other provisions of the Act i.e. in accordance with all the provisions except sec.80E. Earlier decision of…

Canara Bank, Bangalore vs. JCIT, Bangalore

In the result, appeal by the revenue is partly allowed

ITA 530/BANG/2010[2005-06]Status: DisposedITAT Bangalore30 Mar 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior AdvocateFor Respondent: Shri G.R.Reddy, CIT(DR)
Section 115JSection 143(2)Section 143(3)Section 14ASection 35DSection 36(1)(viia)

…e calculated with reference to the amount of dividend income computed in accordance with the provisions of the Act. While coming to such conclusion, Hon’ble Apex Court taken note of its earlier decision in the case of Cambay Electric Supply Industry Co. Ltd. (113 ITR 84) wherein the Hon’ble Apex Court held that for the purpose of allowing deduction under the said provision, it was necessary to first ITA Nos.479 & 530/09, ……693 & 684/B/12 Page 10 of 42 compute total income of the assessee in accordance with other provisions of the Act i.e. in accordance with all the provisions except sec.80E. Earlier decision of…

Addl.CIT, Bangalore vs. M/S Canara Bank, Bangalore

In the result, appeal by the revenue is partly allowed

ITA 530/BANG/2009[2006-07]Status: DisposedITAT Bangalore30 Mar 2016AY 2006-07

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior AdvocateFor Respondent: Shri G.R.Reddy, CIT(DR)
Section 115JSection 143(2)Section 143(3)Section 14ASection 35DSection 36(1)(viia)

…e calculated with reference to the amount of dividend income computed in accordance with the provisions of the Act. While coming to such conclusion, Hon’ble Apex Court taken note of its earlier decision in the case of Cambay Electric Supply Industry Co. Ltd. (113 ITR 84) wherein the Hon’ble Apex Court held that for the purpose of allowing deduction under the said provision, it was necessary to first ITA Nos.479 & 530/09, ……693 & 684/B/12 Page 10 of 42 compute total income of the assessee in accordance with other provisions of the Act i.e. in accordance with all the provisions except sec.80E. Earlier decision of…

M/S. Canara Bank, Bangalore vs. ACIT, Bangalore

In the result, appeal by the revenue is partly allowed

ITA 479/BANG/2009[2006-07]Status: DisposedITAT Bangalore30 Mar 2016AY 2006-07

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior AdvocateFor Respondent: Shri G.R.Reddy, CIT(DR)
Section 115JSection 143(2)Section 143(3)Section 14ASection 35DSection 36(1)(viia)

…e calculated with reference to the amount of dividend income computed in accordance with the provisions of the Act. While coming to such conclusion, Hon’ble Apex Court taken note of its earlier decision in the case of Cambay Electric Supply Industry Co. Ltd. (113 ITR 84) wherein the Hon’ble Apex Court held that for the purpose of allowing deduction under the said provision, it was necessary to first ITA Nos.479 & 530/09, ……693 & 684/B/12 Page 10 of 42 compute total income of the assessee in accordance with other provisions of the Act i.e. in accordance with all the provisions except sec.80E. Earlier decision of…

Safran Enginerring Services India Private Limited, Bangalore vs. DCIT, Bangalore

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

ITA 1310/BANG/2011[2005-06]Status: DisposedITAT Bangalore09 Mar 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri K.R.Vasudevan, CAFor Respondent: Dr. P.K.Srihari, Addl.CIT
Section 10ASection 143(3)Section 80E

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ‘A’, BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA No.1310(B)/2011 (Assessment year : 2005-06) M/s Safran Engineering Services Ind. Pvt. Ltd., CSRIE, No.32, Grape Garden, 17th ‘H’ Main Road, VI-Block, Koramangala, Bangalore-560 095. PAN No.AAFCS9003D Appellant Vs The Deputy Commissioner of Income-tax, Circle-12(3), Bangalore Respondent Assessee by : Shri K.R.Vasudevan, CA Revenue by : Dr. P.K.Srihari, Addl.CIT Date of hearing : 02-03-2016 Date of pronouncement : 09-03-2016 O R D E R PER SHRI VIJA…

Yashomandir Sahakari Patpetdhi Ltd, Mumbai vs. ITO 22(2)(4), Navi Mumbai

ITA 3477/MUM/2014[2010-11]Status: DisposedITAT Mumbai20 Jan 2016AY 2010-11

Bench: Shri Jason P. Boaz & Shri Ram Lal Negiyashomandir Sahakari Patpedhi Ltd., 307, Mahavir Apartment, Pant Nagar, Ghatkopar (East), Mumbai 400075 Pan:Aaaay 0015A ... Appellant Vs. Income Tax Officer 22(2)(4) Tower No.6, 4Th Floor, Vashi Railway Stn. Complex, Navi Mumbai 400 703 .... Respondent Income Tax Officer 22(2)(4) Tower No.6, 4Th Floor, Vashi Railway Stn. Complex, Navi Mumbai 400 703 .... Appellant

For Appellant: Shri V.G.GindeFor Respondent: Shri Nitin Waghmode
Section 143(3)Section 2(24)Section 56Section 80PSection 80P(2)(a)

…rovides for deduction of the whole profits and gains of business attributable to the activity carried on by the assessee and, therefore, following decision rendered by the Hon’ble Apex Court in the case of Cambay Electric Supply Industrial Company Ltd.(1978) (113 ITR 84), held that the interest earned by the from deposits kept in banks in attributable to the profits and gains of business of providing credit facilities to its members. The Ld. Representative for the assessee in support of this proposition also placed reliance on the decision of the Co-ordinate bench of the ITAT, Mumbai in the case of Jaoli Taluka S…

Sara Services & Engineers Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeals of the Revenue are dismissed and those of the assessee are partly allowed for statistical purposes in the manner as indicated above

ITA 408/DEL/2010[2004-05]Status: DisposedITAT Delhi18 Jan 2016AY 2004-05

Bench: Shri Chandra Mohan Garg & Shri L.P. Sahu

For Appellant: Shri O.P. Sapra, AdvFor Respondent: Shri Sujit Kumar, Sr-DR
Section 80I

…completely ignored. He further submitted that on a perusal of section 80IC of the Act, it is apparent that unlike sections 80HH/80IA/80IB of the Act dealt by the Hon'ble Supreme Court in the judgments of Cambay Electrical Supply Industrial Co. Vs. CIT [1978] [113 ITR 84][SC], Pandian Chemicals Ltd VS. CIT [2003] [262 ITR 278][SC] and CIT Vs. Sterling Foods [1999] [237 ITA Nos. 408 to 410 & 545 to 547 M/s Sara Services & Engineers P. Ltd ITR 579], incomes on account on commission, service charges, etc. are not in the nature of income which can be said to be derived from the industrial undertaking. But section 8…

Addl CIT 8(3), Mumbai vs. Sulhur Mills Ltd, Mumbai

The appeal of the assessee stand partly allowed

ITA 8846/MUM/2010[2006-07]Status: DisposedITAT Mumbai01 Jan 2016AY 2006-07
For Appellant: Sh. K.S. Chokshi & Ms. M.R. Patel - ARsFor Respondent: Sh. Aarsi Prasad-DR
Section 10Section 10BSection 143(3)Section 254(1)Section 40

…u/s.10B in respect of interest income should not be disallowed.After considering the submission of the assessee, the AO held that the interest receipts were not derived from exports.He referred to the cases of Cambay Electrical Supply Industrial Company.Ltd. (113 ITR 84), Sterling Foods and Pandiyan Chemicals Ltd. (233 ITR 497),that the interest income could at best be said to have been attributable to the export,that same was not derived from the business of the assessee, that gross interest receipts were to be disallowed for calculating the deduction u/s. 10B of the Act.For the similar reasons incomes credited…

DCIT, New Delhi vs. M/S. Bharat Sanchar Nigam Ltd., New Delhi

In the result, assessee’s appeal is allowed to the extent as mentioned above on the preliminary issue and the departmental appeal is dismissed

ITA 3386/DEL/2010[2004-05]Status: DisposedITAT Delhi23 Dec 2015AY 2004-05

Bench: Smt Diva Singh & Sh.J.S.Reddyi.T.A .No.-3304/Del/2010 (Assessment Year-2004-05) Bharat Sanchar Nigam Ltd., Vs Dcit, Corporate Office, Taxation Section, Circle-2(1), Room No.-398, First Floor, Bharat Sanchar Bhawan, C.R.Building, I.P.Estate, Janpath, New Delhi-1110001. New Delhi Pan-Aabcb5576G (Appellant) (Respondent)

Section 143(1)Section 143(3)Section 154Section 263Section 80Section 80I

…idered in the light of the context of sub- section (1) of section 80 IA. Decisions rendered considering the wordings “derived from” and “attributable to” have wrongly been relied upon in the facts of the present case namely:-Cambay Electric Supply Ltd. vs CIT 113 ITR 84 [1978] [SC]; CIT vs Sterling Foods Ltd. 237 ITR 579 [1999] [SC]; and Pandian Chemicals Ltd. vs CIT 262 ITR 278 [SC] and other decisions right upto the decision of Liberty Shoes. In all fairness it was stated that although the legal issue may not have been raised before the authorities below but the assessee cannot be barred from raising the issue…