CIT v. CIT Vs Dusad Industries

162 ITR 784High Court1986#5967 most cited

What is CIT v. CIT Vs Dusad Industries authority for?

Subsidies provided by the government to newly established industries under a scheme for backward area development were considered capital receipts, not taxable revenue receipts, if their object was not to supplement profits but to promote industry establishment.

19

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Dusad Industries · sales tax subsidy · backward area development · capital receipt · revenue receipt · industrial promotion · 1986 · MP HC

Issues it is cited on

section 254section 43prescribedpersoncompanyindiabusinessdocumentinterest

Judgments citing CIT v. CIT Vs Dusad Industries

M/S Gujarat Guardian Ltd., New Delhi vs. DCIT, New Delhi

ITA 2539/DEL/2017[2005-06]Status: DisposedITAT Delhi16 Jul 2025AY 2005-06

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singh

For Appellant: Shri Ajay Vohra, Sr. A.RFor Respondent: Shri Bhopal Singh, Sr. D.R
Section 92C

…ect is for promoting industries then it will be capital receipt. The answer is available in the above judgment of Hon'ble Supreme Court itself. The Hon'ble Supreme Court špēčifically överruled the decision of M.P. High Court in case of CIT Vs Dusad Industries 162 ITR 784 stating as:- "The Madhya Pradesh High Court in the case of CIT V. Dusad Industries [1986] 162 ITR 784, dealt with a case where the Government had framed a scheme for granting sales tax subsidies to industries set Top in backward areas. The High Court was of the view that the object of the scheme was not a supplement the profits made by industries…

Gujarat Guardian Ltd., New Delhi vs. DCIT, New Delhi

ITA 159/DEL/2010[2003-04]Status: DisposedITAT Delhi16 Jul 2025AY 2003-04

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singh

Section 92C

…judgment of Hon'ble Supreme Court itself. The Hon'ble Supreme Court špēčifically överruled the decision of M.P. High Court in case of CIT Vs Dusad Industries 162 ITR 784 stating as:- "The Madhya Pradesh High Court in the case of CIT V. Dusad Industries [1986] 162 ITR 784, dealt with a case where the Government had framed a scheme for granting sales tax subsidies to industries set Top in backward areas. The High Court was of the view that the object of the scheme was not a supplement the profits made by industries. In that view of the matter, the High Court held that the subsidies given under the said scheme by th…

Joint CIT (OSD) Cent Cir. 1(4), Mumbai vs. Grasim Industries Ltd., Mumbai

In the result, all the appeals of the Revenue are dismissed

ITA 2155/MUM/2016[1996-97]Status: DisposedITAT Mumbai29 Apr 2022AY 1996-97
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL, ‘G‘ BENCH MUMBAI BEFORE: SHRI M.BALAGANESH, ACCOUNTANT MEMBER & SHRI AMARJIT SINGH, JUDICIAL MEMBER ITA No.2156/Mum/2016 (Assessment Year :1997-98) ITA No.2154/Mum/2016 (Assessment Year :1999-00) & JCIT(OSD)-Central Circle Vs. M/s. Grasim Industries 1(4), Mumbai Limited Room No.902, 9th Floor Corporate Finance Division Old CGO Building Aditya Birla Centre A Wing, 2nd Floor M.K.Road, Churchgate SK Ahire Marg, Worli Mumbai – 400 020 Mumbai – 30 PAN/GIR No. AAACG4464B (Appellant) .. (Respondent) Revenue by Shri J.D. Mistry,Senior Advocate and Shri Ronak Doshi Assessee by Shri…

The DCIT, Circle-2(1)(1), Ahmedabad vs. Genus Electrotech Limited, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 701/AHD/2015[2011-12]Status: DisposedITAT Delhi17 Feb 2021AY 2011-12

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 348/AHD/2015[2011-12]Status: DisposedITAT Delhi17 Feb 2021AY 2011-12

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

The ACIT, Circle-2(1)(1), Ahmedabad vs. Genus Eletrotech Limited, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2617/AHD/2015[2012-13]Status: DisposedITAT Delhi17 Feb 2021AY 2012-13

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle- 2(1)(1), Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2461/AHD/2015[2012-13]Status: DisposedITAT Delhi17 Feb 2021AY 2012-13

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

The DCIT, Circle-4, Ahmedabad vs. M/S. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 99/AHD/2014[2007-08]Status: DisposedITAT Delhi17 Feb 2021AY 2007-08

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

The DCIT, Circle-4, Ahmedabad vs. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 1899/AHD/2014[2010-11]Status: DisposedITAT Delhi17 Feb 2021AY 2010-11

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

The DCIT, Circle-4, Ahmedabad vs. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 1898/AHD/2014[2009-10]Status: DisposedITAT Delhi17 Feb 2021AY 2009-10

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The ACIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 1763/AHD/2014[2009-10]Status: DisposedITAT Delhi17 Feb 2021AY 2009-10

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

The DCIT, Circle-4, Ahmedabad vs. M/S. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 100/AHD/2014[2008-09]Status: DisposedITAT Delhi17 Feb 2021AY 2008-09

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2831/AHD/2013[2008-09]Status: DisposedITAT Delhi17 Feb 2021AY 2008-09

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2830/AHD/2013[2007-08]Status: DisposedITAT Delhi17 Feb 2021AY 2007-08

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…age which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant was clearly on the revenue account and not a capital receipt as claimed by the appellant. In accordance wit…

Prism Cement Ltd, Mumbai vs. DCIT CC 6(1), Mumbai

ITA 804/MUM/2018[2012-13]Status: DisposedITAT Mumbai04 Jan 2021AY 2012-13

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 804 & 805/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2012-13 & 2011-12)

For Appellant: Shri Vijay Mehta, ARFor Respondent: Shri V. Sreekar, DR
Section 115JSection 143(1)Section 143(2)Section 14A

…& K High Court) v) CIT vrs. Birla VXL Ltd. (2013) 215 taxman 117 (Guj) vi) CIT vrs. Kirloskar Oil Engines Ltd. (ITA No. 2646 of 2011 – Bom HC) vii) Shiv Shakti Flour Mills Pvt. Ltd. vrs. CIT (ITA No. 6/2014 – Guj HC) viii) CIT vrs. Dusad Industries (1986) 162 ITR 784 – MP HC. 37. After considering the submission of the assessee, Ld. CIT(A) rejected the contention of the assessee by relying on decision of Hon’ble Supreme Court in the case of Sahney Steel and Press works Ltd. 228 ITR 253 (SC), CIT vrs. Chhindwara fuels 245 ITR 9 (Kol HC) and CIT vrs. Shiv Shakti Flour Mills 36 I.T.A. No. 804 & 805/Mum/2018 8…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 467/DEL/2014[2009-10]Status: DisposedITAT Delhi17 Oct 2018AY 2009-10

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 467/Del/2014 (A.Y 2009-10)

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…otton Mills Ltd. vs. CIT (1991) 191 ITR 518 (Cal), CIT vs. Dusad Industries (1986) 51 CTR (MP) 217 etc. 11.18. In this context, it is pertinent to note that the Madhya Pradesh High Court in the case of CIT vs. Dusad Industries (1986) 51 CTR (MP) 217 : (1986) 162 ITR 784 (MP) : TC 13R.622, dealt with a case where Government had framed a scheme for granting sales-tax subsidies to industries set up in backward areas took the view that the object of the scheme was not to supplement the profits made by industries. In that view of the matter, the High Court held that the subsidies given under the said scheme by the Go…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is allowed in part for statistical purposes

ITA 6021/DEL/2012[2008-09]Status: DisposedITAT Delhi09 Nov 2017AY 2008-09

Bench: Shri N.K. Saini & Shri K.N. Charry

Section 143(3)Section 144CSection 144C(5)Section 14ASection 35DSection 43BSection 92C

…otton Mills Ltd. vs. CIT (1991) 191 ITR 518 (Cal), CIT vs. Dusad Industries (1986) 51 CTR (MP) 217 etc. 11.18. In this context, it is pertinent to note that the Madhya Pradesh High Court in the case of CIT vs. Dusad Industries (1986) 51 CTR (MP) 217 : (1986) 162 ITR 784 (MP) : TC 13R.622, dealt with a case where Government had framed a scheme for granting sales-tax subsidies to industries set up in backward areas took the view that the object of the scheme was not to supplement the profits made by industries. In that view of the matter, the High Court held that the subsidies given under the said scheme by the Go…

Jindal Steel & Power Ltd., New Delhi vs. ACIT, Hisar

In the result, the appeal of the assessee is partly allowed

ITA 3128/DEL/2014[2008-09]Status: DisposedITAT Delhi31 Mar 2016AY 2008-09

Bench: Sh. C.M. Garg & Sh. O.P. Kant

Section 143(3)Section 263

…before the Hon’ble Apex Court was against the decision of Hon’ble Andhra Pradesh High Court. However, in the said decision at page 267, their Lordships discussed the decision of Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Dusad Industries [1986] 162 ITR 784. In the above decision, Hon’ble Madhya Pradesh High Court has held the sales tax subsidy to be a revenue receipt after considering the incentive scheme of Madhya Pradesh Government. However, Hon’ble Apex Court held that the view taken by Hon’ble Madhya Pradesh High Court in the case of Dusad Industries (supra) was erroneous. The relevant observat…

Jindal Steel Power Ltd., New Delhi vs. CIT, Hisar

In the result, the appeal of the assessee is partly allowed

ITA 3283/DEL/2013[2008-09]Status: DisposedITAT Delhi31 Mar 2016AY 2008-09

Bench: Sh. C.M. Garg & Sh. O.P. Kant

Section 143(3)Section 263

…before the Hon’ble Apex Court was against the decision of Hon’ble Andhra Pradesh High Court. However, in the said decision at page 267, their Lordships discussed the decision of Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Dusad Industries [1986] 162 ITR 784. In the above decision, Hon’ble Madhya Pradesh High Court has held the sales tax subsidy to be a revenue receipt after considering the incentive scheme of Madhya Pradesh Government. However, Hon’ble Apex Court held that the view taken by Hon’ble Madhya Pradesh High Court in the case of Dusad Industries (supra) was erroneous. The relevant observat…

CIT v. CIT Vs Dusad Industries (162 ITR 784) — Cited in 19 Judgments | BharatTax