CIT v. Bangalore Clothing co.

DCIT CIR. 6 (3), MUMBAI vs. M/S. GRASIM INDUSTRIES LTD., MUMBAI

In the result, the appeal by the Revenue is dismissed

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

…e CIT(A) failed to appreciate that interest, rent and miscellaneous receipts were operational income and were incidental to business. 4.7 The CIT (A) erred in not following the decisions of the Jurisdictional High Court in the cases of Bangalore Clothing Co. (260 ITR 371) and Alfa Laval India Ltd. (133 Taxman 740). 4.8 The CIT(A) erred in holding that profits from sale of DEPB credits Rs. 5.82,12,856/- are not income directly derived from exports business and erred in directing the AO to reduce 90% of DEPB credits from profits of business. 4.9 The CIT (A) ought to have held that DEPB credit is derived from export…

M/S. GRASIM INDUSTRIES LTD.,MUMBAI vs. DCIT CIT CIR. 6(3), MUMBAI

In the result, the appeal by the Revenue is dismissed

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

…e CIT(A) failed to appreciate that interest, rent and miscellaneous receipts were operational income and were incidental to business. 4.7 The CIT (A) erred in not following the decisions of the Jurisdictional High Court in the cases of Bangalore Clothing Co. (260 ITR 371) and Alfa Laval India Ltd. (133 Taxman 740). 4.8 The CIT(A) erred in holding that profits from sale of DEPB credits Rs. 5.82,12,856/- are not income directly derived from exports business and erred in directing the AO to reduce 90% of DEPB credits from profits of business. 4.9 The CIT (A) ought to have held that DEPB credit is derived from export…

DCIT CIR 6(3), MUMBAI vs. M/S. GRASIM INDUSTRIES LTD., MUMBAI

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

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

…led to appreciate that interest, rent and miscellaneous receipts were operational income and were accrued out of incidental business. 4.7 The CIT (A) erred in not following the decisions of the Jurisdictional High Court in the cases of Bangalore Clothing Co. (260 ITR 371) and Alfa Laval India Ltd. (133 Taxman 740). Grasim Industries Ltd. ITA no.4754/Mum./2004 ITA no.5978/Mum./2004 4.8 The CIT (A) erred in upholding the action of the AO in adjusting loss on export of traded goods against profit on export of manufactured goods, while calculating deduction under section 80 HHC. 5. Appropriation of Head Office expens…

GRASIM INDUSTRIES LTD.,MUMBAI vs. DCIT RANGE 6(3), MUMBAI

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

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

…led to appreciate that interest, rent and miscellaneous receipts were operational income and were accrued out of incidental business. 4.7 The CIT (A) erred in not following the decisions of the Jurisdictional High Court in the cases of Bangalore Clothing Co. (260 ITR 371) and Alfa Laval India Ltd. (133 Taxman 740). Grasim Industries Ltd. ITA no.4754/Mum./2004 ITA no.5978/Mum./2004 4.8 The CIT (A) erred in upholding the action of the AO in adjusting loss on export of traded goods against profit on export of manufactured goods, while calculating deduction under section 80 HHC. 5. Appropriation of Head Office expens…

DCIT 7(3), MUMBAI vs. WYETH LTD ( FORMERLY KNOWN AS WYETH LEDERLE LTD), MUMBAI

In the result, appeal filed by the revenue is dismissed

Bench: Shri Vikas Awasthy, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blepfizer Limited V. Acit- Special Range 23 (Earlier Known As Wyeth Lederle Limited) [Now The Dcit-Circle 7(3)] The Capital, G-Block Aayakar Bhavan Bandra Kurla Complex Mumbai- 400020 Bandra (E), Mumbai -400012 Pan: Aaacp3334M (Appellant) (Respondent) Acit- Ltu V. M/S. Wyeth Limited 28Th Floor, Centre - 1 (Formerly Known As Wyeth Lederle Ltd) Rbc Mahindra Towers World Trade Centre 4Th Floor, A- Wing Cuffe Parade, Mumbai Dr G.M. Bhosale Road Worli, Mumbai- 400055 Pan: Aaacw2641Q (Appellant) (Respondent) Assessee Represented By : Shri Vishal Kalra Department Represented By : Smt. Sujatha Iyangar

…f similar nature. Hence, 90% of the receipt cannotbe deducted in computing the deduction under section 80HHC of the Act 1.8 Reliance in this regard is placed on the decision of the Hon'ble Bombay High Court in the case of CIT vs Bangalore Clothing Co.: [2003] 260 ITR 371 (Bom) laid down important principles for ascertaining when a particular receipt has to be “14. …. Under that Explanation profits of the business, for the purposes of Section 80HHC, does not include receipts which do not have an element of turnover like rent, commission, interest, etc However, as some expenditure might be incurred in earning such…

ACIT 7(3), MUMBAI vs. M/S. WYETH LEDERLE LTD., MUMBAI

In the result, the appeal of the revenue as well as CO of the assessee are dismissed

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.4070/Mum/2005 (निर्धारण वर्ा / Assessment Years: 2000-01) Acit-7(3) बिधम/ M/S. Wyeth Ltd. Room No.615, 6Th Floor, Level 6 & 7, Plating Plot Vs. Aayakar Bhavan, M. K. No. C-59, G- Block Bkc, Road, Mumbai-400020. Bandra (E), Mumbai- 400098. Cross Objection No. 376/Mum/2005 Arising Out Of I.T.A. No.4070/Mum/2005 (निर्धारण वर्ा / Assessment Year: 2000-01) M/S. Wyeth Ltd. बिधम/ Acit-7(3) Room No.615, 6Th Floor, Level 6 & 7, Plating Plot Vs. No. C-59, G- Block Bkc, Aayakar Bhavan, M. K. Bandra (E), Mumbai- Road, Mumbai-400020. 400098. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacc1451A (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Ms. Rajnandani Shukla Revenue By: Shri Nihar Ranjan Samal (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 08/02/2023 घोषणा की तारीख /Date Of Pronouncement: 28/02/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Revenue & The Cross Objection (Co) Preferred By The Assessee Against The Order Of The Ld. Cit(A), Mumbai Dated 22.03.2005 For The Ay. 2000-01. 2. The Ground No. 1 Of The Revenue & Only Ground Raised By The Assessee In The Co Are Dealt Together. The Ground Is Against The Action Of Ld. Cit(A) Directing The Ao To Delete The Addition Of Rs.21,54,713/- (20% Of The Expenditure Of Rs.1,07,73,564/-).

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI ABY T. VARKEY, JM AND SHRI AMARJIT SINGH, AM आयकर अपील सं/ I.T.A. No.4070/Mum/2005 (निर्धारण वर्ा / Assessment Years: 2000-01) ACIT-7(3) बिधम/ M/s. Wyeth Ltd. Room No.615, 6th Floor, Level 6 & 7, Plating Plot Vs. Aayakar Bhavan, M. K. No. C-59, G- Block BKC, Road, Mumbai-400020. Bandra (E), Mumbai- 400098. Cross Objection No. 376/Mum/2005 Arising out of I.T.A. No.4070/Mum/2005 (निर्धारण वर्ा / Assessment Year: 2000-01) M/s. Wyeth Ltd. बिधम/ ACIT-7(3) Room No.615, 6th Floor, Level 6 & 7, Plating Plot Vs. No. C-59, G- Block BKC, Aayakar Bhavan, M. K…

GRASIM INDUSTRIES LTD. vs. ADDL. CIT RANGE 6(3),

In the result, appeal filed by the assesse and revenue are partly allowed

Bench: Shri Saktijit Dey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blegrasim Industries Limited V. Addl. Cit, Range 6(3) Corporate Finance Division 5Th Floor, Room No. 505 Aditya Birla Centre “A” Wing Aayakar Bhavan 2Nd Floor, S.K. Ahire Marg, Worli Mumbai Mumbai-400025 Pan: Aaacg4464B Appellant Respondent Dy. Cit, Range 6(3), V. Grasim Industries Limited, 5Th Floor, Room No. 505, Corporate Finance Division, Aayakar Bhavan, Aditya Birla Centre, “A” Wing, Mumbai-20. 2Nd Floor, S.K. Ahire Marg Worli, Mumbai-400025 Pan: Aaacg4464B Appellant Respondent Assessee By : Shri J.D. Mistry Revenue By : Shri Sandeep Raj & Shri Vijay Kumar Menon

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER Grasim Industries Limited v. Addl. CIT, Range 6(3) Corporate Finance Division 5th floor, Room No. 505 Aditya Birla Centre “A” Wing Aayakar Bhavan 2nd floor, S.K. Ahire Marg, Worli Mumbai Mumbai-400025 PAN: AAACG4464B Appellant Respondent Dy. CIT, Range 6(3), v. Grasim Industries Limited, 5th floor, Room No. 505, Corporate Finance Division, Aayakar Bhavan, Aditya Birla Centre, “A” Wing, Mumbai-20. 2nd floor, S.K. Ahire Marg Worli, Mumbai-40002…

ITO 2(1)(1), MUMBAI vs. ABBOTT INDIA LTD, MUMBAI

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

…erage, interest, rent or charges as long as such a receipt would not be subject to deduction of 90% under Explanation to section 80HHC of the Act. Similarly, on the issue of sale of scrap, the Hon’ble High Court in the case of Bangalore Clothing Co vs CIT 260 ITR 371 (Bom) held that revenue generated from sale of scrap was akin to manufacturing activities relating to export business carried on by the assessee, did not fall within the scope of Explanation to section 80HHC and, therefore, 90% of such receipts could not be excluded from business profits while computing deduction u/s 80HHC of the Act. Even th…