Challapalli Sugars Ltd. v. CIT

98 ITR 167Supreme Court of India1975#514 most cited

What is Challapalli Sugars Ltd. v. CIT authority for?

Interest on borrowed capital utilized for acquiring a capital asset is capitalized until business commences. Once business is set up, this interest is deductible under section 36(1)(iii) even if the asset has not yet been put to use, accepting commercial accounting standards in the absence of contrary statutory provisions.

185

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2007 to 2026.

Also referred to as

Challapalli Sugars Ltd. v. CIT · 98 ITR 167 · Section 36(1)(iii) · Section 32 · capitalization of interest · actual cost · borrowed capital · commencement of business · asset put to use · deductibility of interest · accounting standards · mercantile system

Also reported as

3 SCC 572

Sections most often in play

Section 37(1)Section 115JBSection 234ASection 250Section 40A(2)(b)Section 43BSection 139(1)Section 143(3)

Issues it is cited on

section 10(5)section 32(1)(iia)section 32(1)demergeradditional depreciationright to receivesection 92bsection 32section 22section 57put to usemercantile system of accounting

Judgments citing Challapalli Sugars Ltd. v. CIT

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

…cably linked with the setting up of the capital structure of the assessee-company. They must, therefore, be viewed as capital receipts going to reduce the cost of construction. In the case of Challapalli Sugars Ltd. v. Commissioner of Income-tax, A.P. ([1975] 98 ITR 167), this Court examined the question whether interest paid before the commencement of production by a company on amounts borrowed for the acquisition and installation of plant and machinery would form a part of the actual cost of the asset to the assessee within the meaning of that expression in Section 10(5) of the Indian Income-tax Act, 1922 and w…

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

…cably linked with the setting up of the capital structure of the assessee-company. They must, therefore, be viewed as capital receipts going to reduce the cost of construction. In the case of Challapalli Sugars Ltd. v. Commissioner of Income-tax, A.P. ([1975] 98 ITR 167), this Court examined the question whether interest paid before the commencement of production by a company on amounts borrowed for the acquisition and installation of plant and machinery would form a part of the actual cost of the asset to the assessee within the meaning of that expression in Section 10(5) of the Indian Income-tax Act, 1922 and w…

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

…cably linked with the setting up of the capital structure of the assessee-company. They must, therefore, be viewed as capital receipts going to reduce the cost of construction. In the case of Challapalli Sugars Ltd. v. Commissioner of Income-tax, A.P. ([1975] 98 ITR 167), this Court examined the question whether interest paid before the commencement of production by a company on amounts borrowed for the acquisition and installation of plant and machinery would form a part of the actual cost of the asset to the assessee within the meaning of that expression in Section 10(5) of the Indian Income-tax Act, 1922 and w…

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

…cably linked with the setting up of the capital structure of the assessee-company. They must, therefore, be viewed as capital receipts going to reduce the cost of construction. In the case of Challapalli Sugars Ltd. v. Commissioner of Income-tax, A.P. ([1975] 98 ITR 167), this Court examined the question whether interest paid before the commencement of production by a company on amounts borrowed for the acquisition and installation of plant and machinery would form a part of the actual cost of the asset to the assessee within the meaning of that expression in Section 10(5) of the Indian Income-tax Act, 1922 and w…

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

…cably linked with the setting up of the capital structure of the assessee-company. They must, therefore, be viewed as capital receipts going to reduce the cost of construction. In the case of Challapalli Sugars Ltd. v. Commissioner of Income-tax, A.P. ([1975] 98 ITR 167), this Court examined the question whether interest paid before the commencement of production by a company on amounts borrowed for the acquisition and installation of plant and machinery would form a part of the actual cost of the asset to the assessee within the meaning of that expression in Section 10(5) of the Indian Income-tax Act, 1922 and w…

Sp Jammu Udhampur Highway Ltd., Mumbai vs. DCIT Circle 3(3)(2), Mumbai

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

ITA 1507/MUM/2019[2014-15]Status: DisposedITAT Mumbai02 Jan 2023AY 2014-15

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blesp Jammu-Udhampur Highway Pvt Ltd., V. Dcit- Circle-3(3)(2) 41/44, Shapoorji Pallonji Centre Aayakar Bhavan Minoo Desai Marg Mumbai - 400020 Colaba, Mumbai – 400005 Pan: Aaocs5512N (Appellant) (Respondent) Assessee By : Shri Manish Chulawala Department By : Smiti Samant

For Appellant: Shri Manish ChulawalaFor Respondent: Smiti Samant
Section 115JSection 142(1)Section 143(2)

…onstruction of any work and which cannot be made profitable for a long period subject to certain restrictions contained in subsections (2) to (7) of section 208. This section was specifically noted by the Supreme Court in Challapalli Sugars Ltd. v. CIT [1975] 98 ITR 167. 6.1 In our view the situation in the instant case is quite similar except here instead of paying interest on funds brought in for specific purpose interest is earned on funds brought in by way of share capital for a specific purpose. Could it be said that in the former situation interest could have been capitalized and in the later situation it c…

DCIT, New Delhi vs. M/S. Golden Falcon Pacific Ltd., Navi Mumbai

In the result, appeals filed by the revenue is dismissed and appeal filed by the assessee is allowed

ITA 3895/DEL/2015[2011-12]Status: DisposedITAT Mumbai28 Dec 2022AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Rahul Chaudhary, Hon'Bledcit –Circle – 10(1) V. M/S. Golden Falcon Pacific Ltd New Delhi Off. 101, Real Tech Park Sector-30, Vashi, Near Railway Station Navi Mumbai - 400705 Pan: Aadcg8569L (Appellant) (Respondent) M/S. Golden Falcon Pacific Ltd V. Dcit –Circle – 12(1) Now 10(1) C/O. M/S. Saraf & Chandra (C.A) Room No. 416-A Bharat Ins. Bldg, 3Rd Floor, 15-A Central Revenue Building Horniman Circle, Fort, Mumbai – 01 I.P. Estate, New Delhi - 110002 Pan: Aadcg8569L (Appellant) (Respondent)

Section 143(2)

…site. Determination of actual cost of site by any other method would be contrary to Principles of accountancy." 18. In the aforesaid decision, the Hon. Court followed the decision of the Hon. Supreme Court in the case of CHALLAPALLI SUGARS LTD v C.LT. (1975) 98 ITR 167 (SC) and CIT v Mithilesh Kumari (1973) 92 ITR 9 (Delhi) followed. The Hon. Delhi High Court in the case of CIT v Mithilesh Kumari reported in (1973) 92 ITR 9 (Delhi) held: 18 ITA NO.3895 & 3653/DEL/2015 (A.Y. 2011-12) M/s. Golden Falcon Pacific Ltd "(i) that interest paid by the assessee on the money borrowed for the purchase of open plot of land…

M/S. Golden Falcon Pacific Ltd., Mumbai vs. DCIT, New Delhi

In the result, appeals filed by the revenue is dismissed and appeal filed by the assessee is allowed

ITA 3653/DEL/2015[2011-12]Status: DisposedITAT Mumbai28 Dec 2022AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Rahul Chaudhary, Hon'Bledcit –Circle – 10(1) V. M/S. Golden Falcon Pacific Ltd New Delhi Off. 101, Real Tech Park Sector-30, Vashi, Near Railway Station Navi Mumbai - 400705 Pan: Aadcg8569L (Appellant) (Respondent) M/S. Golden Falcon Pacific Ltd V. Dcit –Circle – 12(1) Now 10(1) C/O. M/S. Saraf & Chandra (C.A) Room No. 416-A Bharat Ins. Bldg, 3Rd Floor, 15-A Central Revenue Building Horniman Circle, Fort, Mumbai – 01 I.P. Estate, New Delhi - 110002 Pan: Aadcg8569L (Appellant) (Respondent)

Section 143(2)

…site. Determination of actual cost of site by any other method would be contrary to Principles of accountancy." 18. In the aforesaid decision, the Hon. Court followed the decision of the Hon. Supreme Court in the case of CHALLAPALLI SUGARS LTD v C.LT. (1975) 98 ITR 167 (SC) and CIT v Mithilesh Kumari (1973) 92 ITR 9 (Delhi) followed. The Hon. Delhi High Court in the case of CIT v Mithilesh Kumari reported in (1973) 92 ITR 9 (Delhi) held: 18 ITA NO.3895 & 3653/DEL/2015 (A.Y. 2011-12) M/s. Golden Falcon Pacific Ltd "(i) that interest paid by the assessee on the money borrowed for the purchase of open plot of land…

Diamines and Chemicals Limited, Baroda vs. The Deputy Commissioner of Income Tax, Circle-1(1)(1), Baroda

In the result, appeal filed by the Assessee in ITA No

ITA 219/AHD/2017[2010-11]Status: DisposedITAT Ahmedabad14 Dec 2022AY 2010-11
For Appellant: Shri Yogesh Shah, A.RFor Respondent: Shri Alok Kumar, CIT/D.R. &
Section 143(3)Section 263Section 32(1)(iia)Section 80I

…he Paper Book along with the detailed break-up at Page No. 142 & 143. Since the pre-operative expenses and capital work in progress are to be capitalized, so as to form part of actual cost following the Hon’ble Supreme Court decision in Chellapalli Sugar Ltd. 98 ITR 167 (SC), the objection of the Ld. PCIT in this respect also against the accepted judicial proposition. Therefore, the reasoning on which the Ld. PCIT sought to invoke provisions of Section 263 are not germane to the issue and the order of the Ld. A.O. cannot be said to be erroneous or prejudicial to the interest of the Revenue. Thus the Ld. PCIT has…

Diamines & Chemicals Ltd., Baroda vs. The Pr. CIT- 1, Baroda

In the result, appeal filed by the Assessee in ITA No

ITA 1472/AHD/2015[2010-11]Status: PendingITAT Ahmedabad14 Dec 2022AY 2010-11
For Appellant: Shri Yogesh Shah, A.RFor Respondent: Shri Alok Kumar, CIT/D.R. &
Section 143(3)Section 263Section 32(1)(iia)Section 80I

…he Paper Book along with the detailed break-up at Page No. 142 & 143. Since the pre-operative expenses and capital work in progress are to be capitalized, so as to form part of actual cost following the Hon’ble Supreme Court decision in Chellapalli Sugar Ltd. 98 ITR 167 (SC), the objection of the Ld. PCIT in this respect also against the accepted judicial proposition. Therefore, the reasoning on which the Ld. PCIT sought to invoke provisions of Section 263 are not germane to the issue and the order of the Ld. A.O. cannot be said to be erroneous or prejudicial to the interest of the Revenue. Thus the Ld. PCIT has…

Gujarat Mineral Development Corporation Ltd., Ahmedabad vs. The Dy.CIT, Circle-4, Now Circle-2(1)(1), Ahmedabad

The appeal of the assessee is partly allowed

ITA 1657/AHD/2015[2005-06]Status: DisposedITAT Ahmedabad30 Nov 2022AY 2005-06

Bench: Smt.Annapurna Gupta & T.R. Senthil Kumar & Asstt.Year: 2005-06 Gujarat Mineral Development Dcit/Jcit, Cir.4 Corporation Ltd. Vs Ahmedabad. “Khanji Bhavan” 132Ft Ring Road University Ground, Ahmedabad. Asstt.Year: 2005-06 Dcit/Jcit, Cir.4 Gujarat Mineral Development Ahmedabad. Vs Corporation Ltd. “Khanji Bhavan” 132Ft Ring Road University Ground, Ahmedabad. (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, With Shri Bandish Soparkar, Ar & Shri Parin Shah, Ar Revenue By : Shri James Kurian, Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 30/08/2022 घोषणा क" तार"ख /Date Of Pronouncement: 30/11/2022 आदेश/O R D E R Per Annapurna Guptathe Present Appeals Relate To The Same Assessee, Pertain To The Same Assessment Year & Are Against Orders Passed By The

For Respondent: Shri James Kurian, CIT-DR
Section 143(3)Section 250(6)Section 271(1)(c)

…sions of sec.36(1 )(iii) of the Act. Besides, the other expenses incurred on this project are also not deductible from the income of the appellant. In this regard reliance is placed on the decision of Hon'ble Supreme Court in the case of Chellapalli Sugar Ltd 98 ITR 167 and Bokaro Steel Ltd 236 ITR 315. In view of the above, the ground taken by the appellant against the same are hereby dismissed.” 12. With regard to the lignite project at Bhavnagar, which has been dealt with by the ld.CIT(A) at para-6 of his order, the same was disallowed and upheld as capital expenditure, since the AO noted that the project had…

The DCIT, Circle-4, Ahmedabad vs. Gujarat Mineral Development Corporation Ltd., Ahmedabad

The appeal of the assessee is partly allowed

ITA 1471/AHD/2015[2005-06]Status: DisposedITAT Ahmedabad30 Nov 2022AY 2005-06

Bench: Smt.Annapurna Gupta & T.R. Senthil Kumar & Asstt.Year: 2005-06 Gujarat Mineral Development Dcit/Jcit, Cir.4 Corporation Ltd. Vs Ahmedabad. “Khanji Bhavan” 132Ft Ring Road University Ground, Ahmedabad. Asstt.Year: 2005-06 Dcit/Jcit, Cir.4 Gujarat Mineral Development Ahmedabad. Vs Corporation Ltd. “Khanji Bhavan” 132Ft Ring Road University Ground, Ahmedabad. (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, With Shri Bandish Soparkar, Ar & Shri Parin Shah, Ar Revenue By : Shri James Kurian, Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 30/08/2022 घोषणा क" तार"ख /Date Of Pronouncement: 30/11/2022 आदेश/O R D E R Per Annapurna Guptathe Present Appeals Relate To The Same Assessee, Pertain To The Same Assessment Year & Are Against Orders Passed By The

For Respondent: Shri James Kurian, CIT-DR
Section 143(3)Section 250(6)Section 271(1)(c)

…sions of sec.36(1 )(iii) of the Act. Besides, the other expenses incurred on this project are also not deductible from the income of the appellant. In this regard reliance is placed on the decision of Hon'ble Supreme Court in the case of Chellapalli Sugar Ltd 98 ITR 167 and Bokaro Steel Ltd 236 ITR 315. In view of the above, the ground taken by the appellant against the same are hereby dismissed.” 12. With regard to the lignite project at Bhavnagar, which has been dealt with by the ld.CIT(A) at para-6 of his order, the same was disallowed and upheld as capital expenditure, since the AO noted that the project had…

Gujarat Mineral Development Corporation Ltd., Ahmedabad vs. The Jt.CIT., Circle-4, Ahmedabad

The appeal of the assessee is partly allowed

ITA 1747/AHD/2009[2005-06]Status: DisposedITAT Ahmedabad30 Nov 2022AY 2005-06

Bench: Smt.Annapurna Gupta & T.R. Senthil Kumar & Asstt.Year: 2005-06 Gujarat Mineral Development Dcit/Jcit, Cir.4 Corporation Ltd. Vs Ahmedabad. “Khanji Bhavan” 132Ft Ring Road University Ground, Ahmedabad. Asstt.Year: 2005-06 Dcit/Jcit, Cir.4 Gujarat Mineral Development Ahmedabad. Vs Corporation Ltd. “Khanji Bhavan” 132Ft Ring Road University Ground, Ahmedabad. (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, With Shri Bandish Soparkar, Ar & Shri Parin Shah, Ar Revenue By : Shri James Kurian, Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 30/08/2022 घोषणा क" तार"ख /Date Of Pronouncement: 30/11/2022 आदेश/O R D E R Per Annapurna Guptathe Present Appeals Relate To The Same Assessee, Pertain To The Same Assessment Year & Are Against Orders Passed By The

For Respondent: Shri James Kurian, CIT-DR
Section 143(3)Section 250(6)Section 271(1)(c)

…sions of sec.36(1 )(iii) of the Act. Besides, the other expenses incurred on this project are also not deductible from the income of the appellant. In this regard reliance is placed on the decision of Hon'ble Supreme Court in the case of Chellapalli Sugar Ltd 98 ITR 167 and Bokaro Steel Ltd 236 ITR 315. In view of the above, the ground taken by the appellant against the same are hereby dismissed.” 12. With regard to the lignite project at Bhavnagar, which has been dealt with by the ld.CIT(A) at para-6 of his order, the same was disallowed and upheld as capital expenditure, since the AO noted that the project had…

Ibrox Real Estate Development Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-2(1), Bangalore

In the result, both the appeals filed by the assessee stands allowed

ITA 344/BANG/2022[2012-13]Status: DisposedITAT Bangalore01 Nov 2022AY 2012-13

Bench: Shri Chandra Poojaria & Smt. Beena Pillai

For Appellant: Smt. Suman Lunkar, CA
Section 143(2)Section 234ASection 57

…following decisions in support of the above contention.  Decision of Hon’ble Supreme Court in case of CIT vs. Bokaro Steel Ltd. reported in (1999) 102 Taxman 94  Decision of Hon’ble Supreme Court in case of Challapalli Sugars Ltd. vs. CIT reported in (1975) 98 ITR 167  Decision of Coordinate Bench of this Tribunal in case of ITO vs. Bank Note Paper Mill India (P) Ltd. reported in (2017) 88 taxmann.com 780  Decision of Hon’ble Karnataka High Court in case of CIT vs. Karnataka State Agricultural Produce Processing & Export Corporation Ltd. reported in (2015) 57 taxmann.com 349 9. The interest earned against the…

Ibrox Real Estate Development Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-2(1), Bangalore

In the result, both the appeals filed by the assessee stands allowed

ITA 343/BANG/2022[2011-12]Status: DisposedITAT Bangalore01 Nov 2022AY 2011-12

Bench: Shri Chandra Poojaria & Smt. Beena Pillai

For Appellant: Smt. Suman Lunkar, CA
Section 143(2)Section 234ASection 57

…following decisions in support of the above contention.  Decision of Hon’ble Supreme Court in case of CIT vs. Bokaro Steel Ltd. reported in (1999) 102 Taxman 94  Decision of Hon’ble Supreme Court in case of Challapalli Sugars Ltd. vs. CIT reported in (1975) 98 ITR 167  Decision of Coordinate Bench of this Tribunal in case of ITO vs. Bank Note Paper Mill India (P) Ltd. reported in (2017) 88 taxmann.com 780  Decision of Hon’ble Karnataka High Court in case of CIT vs. Karnataka State Agricultural Produce Processing & Export Corporation Ltd. reported in (2015) 57 taxmann.com 349 9. The interest earned against the…

Deputy Commissioner of Income-Tax Circle -5, Pune vs. Serum Institute of India Pvt Ltd., Pune

In the result, the appeal filed by the Revenue stands dismissed

ITA 323/PUN/2021[2013-14]Status: DisposedITAT Pune15 Sept 2022AY 2013-14
For Appellant: Shri Percy PardiwallaFor Respondent: Shri J. P. Chadraker
Section 10ASection 14ASection 35Section 35(1)

…bring the assets to existence should be 63 capitalized and the depreciation at the applicable rate should be allowed as deduction. In this regard, he placed reliance on the decision of the Hon’ble Supreme Court in the case of Challapalli Sugars Ltd. vs. CIT, 98 ITR 167 (SC). 38. We heard the rival submissions and perused the material on record. The issue in the present ground of appeal that comes up for consideration is, as to whether the civil works and electrical works forms part of the actual cost of windmill or not for the purpose of allowance of depreciation. It is trite law as held by the Hon’ble Supreme C…

Commr.of I.T.-I, Hyd vs. A.P.Gas Power Cor.Ltd, Hyd

ITTA/135/2003HC Telangana14 Sept 2022

Bench: C.V. BHASKAR REDDY,UJJAL BHUYAN

For Respondent: SRI CHALLA GUNARANJAN
Section 260Section 36Section 36(1)Section 37(1)

…on has nou'been clarified by the Supreme Court in Depury Commissioner of Income Tax v Core Health Care Ltd1, in the follou,'rr-rg terms: In our view, the above observations have to be confined to the facts in the case of Challapalli Sugars Ltd. v. CIT ((1975) 3 SCC 572). It was a case where the company had n<-rt 1'et startcd production when it borrowed the amount in clucstion. The more appropriate decision applicable to tl-re present case would be the judgment. of this Court in the casc of India Cements Ltd. v. CIT ((1966) 60 ITR 52 (SC)) in which it has been observed that, fbr considering whether payment of inte…

Solapur Sugar Limited, Solapur vs. Assistant Commissioner of Income-Tax, Circle - 2, Solapur

In the result, appeal of the assessee is dismissed

ITA 1425/PUN/2018[2015-16]Status: DisposedITAT Pune17 Aug 2022AY 2015-16
For Appellant: Shri Pramod ShingteFor Respondent: Shri Arvind Desai
Section 133(2)Section 35DSection 36Section 55(1)(b)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, PUNE SHRI R.S. SYAL, VICE PRESIDENT AND PARTHA SARATHI CHAUDHURY, JM ITA No. 1425/PUN/2018 : Assessment Year : 2015-16 Solapur sugar Ltd., 91 Padmavati Complex Saat, Rasta Civil Lines, SOLAPUR – 413 003 PAN: AAOCS 9122 L :Appellant Vs. The Asstt. C.I.T. Cir. 2, Solapur : Respondent Appellant by : Shri Pramod Shingte Respondent by : Shri Arvind Desai Date of Hearing : 10-08-2022 Date of Pronouncement : 17-08-2022 ORDER PER PARTHA SARATHI CHAUDHURY, JM : This appeal preferred by the assessee emanates from the order of the ld. CIT(A)-7, Pune dated 20-06-2018 for A.…

Il&Fs Tamilnadu Power Co. Ltd., Chennai vs. DCIT, Company Circle - 2 92), Chennai

ITA 3217/CHNY/2019[2014-15]Status: DisposedITAT Chennai03 Aug 2022AY 2014-15

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.:2018/Chny/2019 िनधा"रण वष" /Assessment Year: 2013-14 The Jcit (Osd), Il & Fs Tamilnadu Power Corporate Circle -2(2), Vs. Company Ltd., Chennai – 34. New No.2, (Old No.21), 4Th Floor, Kpr Tower, 1St Street, Subba Rao Avenue, College Road, Chennai – 600 006. Pan: Aabcf 1176A (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.:1989, 1990 & 3217/Chny/2019 िनधा"रण वष" /Assessment Years: 2012-13, 2013-14 & 2014-15 The Jcit (Osd), Il & Fs Tamilnadu Power Corporate Circle -2(2), Company Ltd., Vs. Chennai – 34. New No.2, (Old No.21), 4Th Floor, Kpr Tower, 1St Street, Subba Rao Avenue, College Road, Chennai – 600 006. Pan: Aabcf 1176A (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रती क" ओर से/Assessee By : Shri Raghunath, Ca राज" की ओर से /Revenue By : Shri Ar.V. Sreenivasan, Addl.Cit सुनवाई क" तार"ख/Date Of Hearing : 03.08.2022 घोषणा क" तार"ख/Date Of Pronouncement : 03.08.2022

For Appellant: Shri Raghunath, CAFor Respondent: Shri AR.V. Sreenivasan, Addl.CIT
Section 143(3)Section 14A

…cably linked with the setting up of the capital structure of the assessee-company. They must, therefore, be viewed as capital receipts going to reduce the cost of construction. In the case of Challapalli Sugars Ltd. v. Commissioner of Income-tax, A.P. ([1975] 98 ITR 167), this Court examined the question whether interest paid before the commencement of production by a company on amounts borrowed for the acquisition and installation of plant and machinery would form a part of the actual cost of the asset to the assessee within the meaning of that expression in Section 10(5) of the Indian Income-tax Act, 1922 and w…

JCIT (OSD) Corporate Circle-2(2), Chennai vs. Il & Fs Tamil Nadu Power Company Limited, Chennai

ITA 2018/CHNY/2019[2013-14]Status: DisposedITAT Chennai03 Aug 2022AY 2013-14

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.:2018/Chny/2019 िनधा"रण वष" /Assessment Year: 2013-14 The Jcit (Osd), Il & Fs Tamilnadu Power Corporate Circle -2(2), Vs. Company Ltd., Chennai – 34. New No.2, (Old No.21), 4Th Floor, Kpr Tower, 1St Street, Subba Rao Avenue, College Road, Chennai – 600 006. Pan: Aabcf 1176A (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.:1989, 1990 & 3217/Chny/2019 िनधा"रण वष" /Assessment Years: 2012-13, 2013-14 & 2014-15 The Jcit (Osd), Il & Fs Tamilnadu Power Corporate Circle -2(2), Company Ltd., Vs. Chennai – 34. New No.2, (Old No.21), 4Th Floor, Kpr Tower, 1St Street, Subba Rao Avenue, College Road, Chennai – 600 006. Pan: Aabcf 1176A (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रती क" ओर से/Assessee By : Shri Raghunath, Ca राज" की ओर से /Revenue By : Shri Ar.V. Sreenivasan, Addl.Cit सुनवाई क" तार"ख/Date Of Hearing : 03.08.2022 घोषणा क" तार"ख/Date Of Pronouncement : 03.08.2022

For Appellant: Shri Raghunath, CAFor Respondent: Shri AR.V. Sreenivasan, Addl.CIT
Section 143(3)Section 14A

…cably linked with the setting up of the capital structure of the assessee-company. They must, therefore, be viewed as capital receipts going to reduce the cost of construction. In the case of Challapalli Sugars Ltd. v. Commissioner of Income-tax, A.P. ([1975] 98 ITR 167), this Court examined the question whether interest paid before the commencement of production by a company on amounts borrowed for the acquisition and installation of plant and machinery would form a part of the actual cost of the asset to the assessee within the meaning of that expression in Section 10(5) of the Indian Income-tax Act, 1922 and w…