CIT v. Bokaro Steel Ltd.

CIT vs. Petronet Lng Ltd

…ss, said interest will not be treated as income under the head “income from other sources”. 2011:DHC:1001-DB 6. While coming to this conclusion the Court has specifically referred to the judgment of Supreme Court in the case of Bokaro Steel Ltd., 236 ITR 315 wherein the Court laid down the aforesaid test in the following manner:- “The test, therefore, to our mind is whether the activity which is taken up for setting up of the business and the funds which are garnered are inextricably connected to the setting up of the plant. The clue is perhaps available in Section 3 of the Act which states t…

M/s. De vs. ons Pvt. Ltd

…place, the assessee- company had not been able to realize the enhanced charges. No real income having accrued, it was held, the amount due on enhancement was not assessable. 23. In a subsequent decision rendered in CIT vs. Bokaro Steel Limited (1999) 236 ITR 315, the Supreme Court, following its earlier decision in Godhara Electricity case (supra) affirmed the decision of the Patna High Court wherein it was held that the entry in the books of account shown as income from Hindustan Steel Ltd. for the 8 locomotives supplied by the assessee-company to them could not be brought to tax as income since th…

M/S De vs. Ons Pvt Ltdvs.Commissioner of Income Tax &

…place, the assessee- company had not been able to realize the enhanced charges. No real income having accrued, it was held, the amount due on enhancement was not assessable. 23. In a subsequent decision rendered in CIT vs. Bokaro Steel Limited (1999) 236 ITR 315, the Supreme Court, following its earlier decision in Godhara Electricity case (supra) affirmed the decision of the Patna High Court wherein it was held that the entry in the books of account shown as income from Hindustan Steel Ltd. for the 8 locomotives supplied by the assessee-company to them could not be brought to tax as income since th…

M/s. De vs. ons Pvt. Ltd

…place, the assessee- company had not been able to realize the enhanced charges. No real income having accrued, it was held, the amount due on enhancement was not assessable. 23. In a subsequent decision rendered in CIT vs. Bokaro Steel Limited (1999) 236 ITR 315, the Supreme Court, following its earlier decision in Godhara Electricity case (supra) affirmed the decision of the Patna High Court wherein it was held that the entry in the books of account shown as income from Hindustan Steel Ltd. for the 8 locomotives supplied by the assessee-company to them could not be brought to tax as income since th…

Indian Oil Panipat Power Consortium Ltd vs. Income Tax Officer

In the result we answer the question as framed in favour of the assessee

Bench: HON'BLE MR. JUSTICE VIKRAMAJIT SEN,HON'BLE MR. JUSTICE RAJIV SHAKDHER

…ITA 1156&1157/2007 Page 1 of 8 * IN THE HIGH COURT OF DELHI AT NEW DELHI ITA No. 1156/2007 & 1157/2007 % Judgment delivered on : 26.02.2009 INDIAN OIL PANIPAT POWER CONSORTIUM LIMITED, NEW DELHI ….. Appellant Versus INCOME TAX OFFICER ….. Respondent Advocates who appeared in this case: For the Appellant : Mr B.B. Ahuja, Sr. Advocate with Mr Sunil Magon, Advocate For the Respondent : Ms Prem Lata Bansal & Mr Mohan Prasad Gupta, Advocate CORAM :- HON'BLE MR JUSTICE VIKRAMAJIT SEN HON'BLE MR JUSTICE RAJIV SHAKDHER…

Indian Oil Panipat Power Consortium Ltd vs. Income Tax Officer

In the result we answer the question as framed in favour of the assessee

Bench: HON'BLE MR. JUSTICE VIKRAMAJIT SEN,HON'BLE MR. JUSTICE RAJIV SHAKDHER

…ITA 1156&1157/2007 Page 1 of 8 * IN THE HIGH COURT OF DELHI AT NEW DELHI ITA No. 1156/2007 & 1157/2007 % Judgment delivered on : 26.02.2009 INDIAN OIL PANIPAT POWER CONSORTIUM LIMITED, NEW DELHI ….. Appellant Versus INCOME TAX OFFICER ….. Respondent Advocates who appeared in this case: For the Appellant : Mr B.B. Ahuja, Sr. Advocate with Mr Sunil Magon, Advocate For the Respondent : Ms Prem Lata Bansal & Mr Mohan Prasad Gupta, Advocate CORAM :- HON'BLE MR JUSTICE VIKRAMAJIT SEN HON'BLE MR JUSTICE RAJIV SHAKDHER…

Indian Oil Panipat Power Consortium Limited, New Delhi vs. Income Tax Officer

In the result we answer the question as framed in favour of the assessee

…* IN THE HIGH COURT OF DELHI AT NEW DELHI ITA No. 1156/2007 & 1157/2007 % Judgment delivered on : 26.02.2009 INDIAN OIL PANIPAT POWER CONSORTIUM LIMITED, NEW DELHI ….. Appellant Versus INCOME TAX OFFICER ….. Respondent Advocates who appeared in this case: For the Appellant : Mr B.B. Ahuja, Sr. Advocate with Mr Sunil Magon, Advocate For the Respondent : Ms Prem Lata Bansal & Mr Mohan Prasad Gupta, Advocate CORAM :- HON'BLE MR JUSTICE VIKRAMAJIT SEN HON'BLE MR JUSTICE RAJIV SHAKDHER 1. Whether the Reporters of local pa…

Indian Oil Panipal Power Consortium Limited, New Delhi vs. Income Tax Officer

In the result we answer the question as framed in favour of the assessee

…* IN THE HIGH COURT OF DELHI AT NEW DELHI ITA No. 1156/2007 & 1157/2007 % Judgment delivered on : 26.02.2009 INDIAN OIL PANIPAT POWER CONSORTIUM LIMITED, NEW DELHI ….. Appellant Versus INCOME TAX OFFICER ….. Respondent Advocates who appeared in this case: For the Appellant : Mr B.B. Ahuja, Sr. Advocate with Mr Sunil Magon, Advocate For the Respondent : Ms Prem Lata Bansal & Mr Mohan Prasad Gupta, Advocate CORAM :- HON'BLE MR JUSTICE VIKRAMAJIT SEN HON'BLE MR JUSTICE RAJIV SHAKDHER 1. Whether the Reporters of local pa…

C.I.T vs. Pench Power Ltd

In the result the appeals are dismissed

…he matter the ratio laid down by this Court in Tuticorin Alkali Chemicals and Fertilizers Ltd. -vs- CIT, (1997) 227 ITR 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). The appeal is dismissed. There will be no order as to costs. As regards the assessee's alternative plea that even if interest income is treated as income from other sources, the interest paid on borrowings taken for the purpose of making the deposit with MPSEB will be available for set-off under Section 57(iii) of the Act, has to be accepte…

Commissioner of Income Tax-V N vs. Damanjit Singh

…ng such income and therefore would not come within the purview of Section 57 (iii). Predictably, the High Court followed the judgment of the Hon’ble Supreme Court in Gopinathan, Auto Kast Ltd., Tuticorin Alkali Chemicals and CIT v. Bokaro Steel Ltd (1999) 236 ITR 315. The decision of the Hon’ble Supreme Court in CIT v. Karnal Cooperative Sugar Mills (2000) 243 ITR 2 was in the context of determining the nature of income earned by way of interest on the amounts deposited for opening a letter of credit for the purchase of machinery required for setting up a plant. It was held that the interest earned was…