CIT v. Ganga Sugar Corporation Ltd.

92 ITR 173High Court1973#8017 most cited

What is CIT v. Ganga Sugar Corporation Ltd. authority for?

Setting up a new industrial unit by a company already running one does not amount to reconstruction of business, and the new unit retains its separate identity. The objective is to incentivize the establishment of new industries to accelerate industrialization.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2021.

Also referred to as

CIT v. Ganga Sugar Corporation Ltd · 92 ITR 173 · Section 80J · new industrial unit · reconstruction of business · separate identity · industrialization incentive

Judgments citing CIT v. Ganga Sugar Corporation Ltd.

DCIT Company Circle I(1), Chennai vs. Pool Thevar Marimuthu, Chennai

In the result, appeal filed by Revenue for the assessment

ITA 3400/CHNY/2019[2013-14]Status: DisposedITAT Chennai21 Apr 2021AY 2013-14

Bench: Shri V.Durga Rao & Shri G.Manjunathaआयकरअपीलसं./I.T.A.No.3399 & 3400/Chny/2019 ("नधा"रणवष" / Assessment Year: 2012-13 & 2013-14) The Deputy Commissioner Of Income Vs Mr. Pool Thevar Marimuthu Tax, Prop: M/S.Arun Enterprises 2 / 28, Reddy 1St Street, Company Circle-I(1), Chennai. Ekkattuthangal, Chennai-600 032. Pan: Aanpm 5361M (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr. Y.Sridhar, CAFor Respondent: 03.03.2021
Section 10BSection 80I

…Rs.2,05,36,114/-. 5. The learned CIT(A), after considering relevant submissions of the assessee and also by relied upon plethora of judicial precedents, including the decision of Hon’ble Delhi High Court in the case of CIT Vs.Ganga Sugar Corporation Ltd., 92 ITR 173 and a decision in the case of CIT Vs. Hindustan General Industries Ltd. 6 Taxman 360(Del), held that new unit established at Haridwar is a new undertaking, but not established by splitting or reconstructing of existing unit of the assessee at Chennai. The learned CIT(A) further observed that new unit at Haridwar is altogether different from exi…

DCIT Company Circle I(1), Chennai vs. Pool Thevar Marimuthu, Chennai

In the result, appeal filed by Revenue for the assessment

ITA 3399/CHNY/2019[2012-13]Status: DisposedITAT Chennai21 Apr 2021AY 2012-13

Bench: Shri V.Durga Rao & Shri G.Manjunathaआयकरअपीलसं./I.T.A.No.3399 & 3400/Chny/2019 ("नधा"रणवष" / Assessment Year: 2012-13 & 2013-14) The Deputy Commissioner Of Income Vs Mr. Pool Thevar Marimuthu Tax, Prop: M/S.Arun Enterprises 2 / 28, Reddy 1St Street, Company Circle-I(1), Chennai. Ekkattuthangal, Chennai-600 032. Pan: Aanpm 5361M (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr. Y.Sridhar, CAFor Respondent: 03.03.2021
Section 10BSection 80I

…Rs.2,05,36,114/-. 5. The learned CIT(A), after considering relevant submissions of the assessee and also by relied upon plethora of judicial precedents, including the decision of Hon’ble Delhi High Court in the case of CIT Vs.Ganga Sugar Corporation Ltd., 92 ITR 173 and a decision in the case of CIT Vs. Hindustan General Industries Ltd. 6 Taxman 360(Del), held that new unit established at Haridwar is a new undertaking, but not established by splitting or reconstructing of existing unit of the assessee at Chennai. The learned CIT(A) further observed that new unit at Haridwar is altogether different from exi…

ACIT Ltu 2, Chennai vs. Nlc India Limited, Neyveli

In the result, the appeals filed by the Revenue for both assessment years are dismissed

ITA 952/CHNY/2018[2013-14]Status: DisposedITAT Chennai08 Feb 2021AY 2013-14

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 868 & 869/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 M/S. Nlc India Ltd., The Dcit, (Formerly Known As Neyveli V. Company Circle Vi(4), Lignite Corporation Ltd.), Chennai. Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.: 952 & 953/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 The Dcit, M/S. Nlc India Ltd., Company Circle Vi(4), V. (Formerly Known As Neyveli Chennai. Lignite Corporation Ltd.), Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रतीक" ओर से/Assessee By : Shri Raghavan Ramabadran, Ca : राज"कीओरसे /Revenue By Shri G. Srinivasa Rao, Cit

For Appellant: Shri Raghavan Ramabadran, CA
Section 14ASection 80I

…while interpreting the Section 80J in the case of Textile Machinery Corporation Ltd v. CIT, 107 ITR 195 (SC) has held that expansion of the existing business will also be entitled to relief under section 80J. In the case of CIT v. Ganga Sugar Corporation Ltd, 92 ITR 173 (Del.), it was pointed out that the concept of reconstruction of business is not attracted when a company which is already running one industrial unit sets up another industrial unit. The industrial unit, it was pointed out, would not lose its separate and independent identity even though it has been set up by a company which is already running an…

ACIT Ltu 2, Chennai vs. Nlc India Limited, Neyveli

In the result, the appeals filed by the Revenue for both assessment years are dismissed

ITA 953/CHNY/2018[2014-15]Status: DisposedITAT Chennai08 Feb 2021AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 868 & 869/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 M/S. Nlc India Ltd., The Dcit, (Formerly Known As Neyveli V. Company Circle Vi(4), Lignite Corporation Ltd.), Chennai. Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.: 952 & 953/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 The Dcit, M/S. Nlc India Ltd., Company Circle Vi(4), V. (Formerly Known As Neyveli Chennai. Lignite Corporation Ltd.), Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रतीक" ओर से/Assessee By : Shri Raghavan Ramabadran, Ca : राज"कीओरसे /Revenue By Shri G. Srinivasa Rao, Cit

For Appellant: Shri Raghavan Ramabadran, CA
Section 14ASection 80I

…while interpreting the Section 80J in the case of Textile Machinery Corporation Ltd v. CIT, 107 ITR 195 (SC) has held that expansion of the existing business will also be entitled to relief under section 80J. In the case of CIT v. Ganga Sugar Corporation Ltd, 92 ITR 173 (Del.), it was pointed out that the concept of reconstruction of business is not attracted when a company which is already running one industrial unit sets up another industrial unit. The industrial unit, it was pointed out, would not lose its separate and independent identity even though it has been set up by a company which is already running an…

Nlc India Ltd., Neyveli vs. DCIT Ltu II, Chennai

In the result, the appeals filed by the Revenue for both assessment years are dismissed

ITA 869/CHNY/2018[2014-15]Status: DisposedITAT Chennai08 Feb 2021AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 868 & 869/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 M/S. Nlc India Ltd., The Dcit, (Formerly Known As Neyveli V. Company Circle Vi(4), Lignite Corporation Ltd.), Chennai. Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.: 952 & 953/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 The Dcit, M/S. Nlc India Ltd., Company Circle Vi(4), V. (Formerly Known As Neyveli Chennai. Lignite Corporation Ltd.), Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रतीक" ओर से/Assessee By : Shri Raghavan Ramabadran, Ca : राज"कीओरसे /Revenue By Shri G. Srinivasa Rao, Cit

For Appellant: Shri Raghavan Ramabadran, CA
Section 14ASection 80I

…while interpreting the Section 80J in the case of Textile Machinery Corporation Ltd v. CIT, 107 ITR 195 (SC) has held that expansion of the existing business will also be entitled to relief under section 80J. In the case of CIT v. Ganga Sugar Corporation Ltd, 92 ITR 173 (Del.), it was pointed out that the concept of reconstruction of business is not attracted when a company which is already running one industrial unit sets up another industrial unit. The industrial unit, it was pointed out, would not lose its separate and independent identity even though it has been set up by a company which is already running an…

Nlc India Ltd., Neyveli vs. DCIT Ltu II, Chennai

In the result, the appeals filed by the Revenue for both assessment years are dismissed

ITA 868/CHNY/2018[2013-14]Status: DisposedITAT Chennai08 Feb 2021AY 2013-14

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 868 & 869/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 M/S. Nlc India Ltd., The Dcit, (Formerly Known As Neyveli V. Company Circle Vi(4), Lignite Corporation Ltd.), Chennai. Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.: 952 & 953/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 The Dcit, M/S. Nlc India Ltd., Company Circle Vi(4), V. (Formerly Known As Neyveli Chennai. Lignite Corporation Ltd.), Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रतीक" ओर से/Assessee By : Shri Raghavan Ramabadran, Ca : राज"कीओरसे /Revenue By Shri G. Srinivasa Rao, Cit

For Appellant: Shri Raghavan Ramabadran, CA
Section 14ASection 80I

…while interpreting the Section 80J in the case of Textile Machinery Corporation Ltd v. CIT, 107 ITR 195 (SC) has held that expansion of the existing business will also be entitled to relief under section 80J. In the case of CIT v. Ganga Sugar Corporation Ltd, 92 ITR 173 (Del.), it was pointed out that the concept of reconstruction of business is not attracted when a company which is already running one industrial unit sets up another industrial unit. The industrial unit, it was pointed out, would not lose its separate and independent identity even though it has been set up by a company which is already running an…

DCIT 3(3)(2), Mumbai vs. Parkar Markewel Industries P.Ltd, Navi Mumbai

In the result, both the appeals of Revenue are dismissed

ITA 769/MUM/2016[2006-07]Status: DisposedITAT Mumbai15 Jun 2018AY 2006-07

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am

For Appellant: Shri Dr. SK Shivram &For Respondent: Shri Rajat Mittal, DR
Section 10BSection 143(3)Section 254Section 263

…t in holding the two undertakings as formed by reconstruction of the existing business of the assessee. Several decisions have been cited at the bar before us. We approve of the conclusions in Commissioner of Income-tax v. Ganga Sugar Corporation Ltd. [1973] 92 ITR 173 (Delhi), Rajeswari Mills Ltd. v. Commissioner of Income-tax [1963] 50 ITR 29 (Mad), Nagardas Bechardas & Brothers P. Ltd. v. Commissioner of Income-tax [1976] (Guj), Commissioner of Income- tax v. Electric Construction and Equipment Co. Ltd. [1976] 104 ITR101 (Cal) and Commissioner of Income-tax v. Hindustan Motors Ltd. [1977] 107 ITR 164 (Cal). T…

DCIT 3(3)(2), Mumbai vs. Parkar Markewel Industries P.Ltd, Navi Mumbai

In the result, both the appeals of Revenue are dismissed

ITA 768/MUM/2016[2004-05]Status: DisposedITAT Mumbai15 Jun 2018AY 2004-05

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am

For Appellant: Shri Dr. SK Shivram &For Respondent: Shri Rajat Mittal, DR
Section 10BSection 143(3)Section 254Section 263

…t in holding the two undertakings as formed by reconstruction of the existing business of the assessee. Several decisions have been cited at the bar before us. We approve of the conclusions in Commissioner of Income-tax v. Ganga Sugar Corporation Ltd. [1973] 92 ITR 173 (Delhi), Rajeswari Mills Ltd. v. Commissioner of Income-tax [1963] 50 ITR 29 (Mad), Nagardas Bechardas & Brothers P. Ltd. v. Commissioner of Income-tax [1976] (Guj), Commissioner of Income- tax v. Electric Construction and Equipment Co. Ltd. [1976] 104 ITR101 (Cal) and Commissioner of Income-tax v. Hindustan Motors Ltd. [1977] 107 ITR 164 (Cal). T…

DCIT, Chennai vs. Neyveli Lignite Corporation Limited, Neyveli

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 855/CHNY/2013[2009-2010]Status: DisposedITAT Chennai28 Apr 2017AY 2009-2010

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…while interpreting the Section 80J in the case of Textile Machinery Corporation Ltd v. CIT, 107 ITR 195 (SC) has held that expansion of the existing business will also be entitled to relief under section 80J. In the case of CIT v. Ganga Sugar Corporation Ltd, 92 ITR 173 (Del.), it was pointed out that the concept of reconstruction of business is not attracted when a company which is already running one industrial unit sets up another industrial unit. The industrial unit, it was pointed out, would not lose its separate and independent identity even though it has been set up by a company which is already running an…

Neyveli Lignite Corporation Ltd., Cuddalore vs. DCIT, Chennai

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 2140/CHNY/2013[2010-11]Status: DisposedITAT Chennai28 Apr 2017AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…while interpreting the Section 80J in the case of Textile Machinery Corporation Ltd v. CIT, 107 ITR 195 (SC) has held that expansion of the existing business will also be entitled to relief under section 80J. In the case of CIT v. Ganga Sugar Corporation Ltd, 92 ITR 173 (Del.), it was pointed out that the concept of reconstruction of business is not attracted when a company which is already running one industrial unit sets up another industrial unit. The industrial unit, it was pointed out, would not lose its separate and independent identity even though it has been set up by a company which is already running an…

DCIT, Chennai vs. M/S. Neyveli Lignite Corporation Limited, Neyveli

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 2077/CHNY/2013[2010-11]Status: DisposedITAT Chennai28 Apr 2017AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…while interpreting the Section 80J in the case of Textile Machinery Corporation Ltd v. CIT, 107 ITR 195 (SC) has held that expansion of the existing business will also be entitled to relief under section 80J. In the case of CIT v. Ganga Sugar Corporation Ltd, 92 ITR 173 (Del.), it was pointed out that the concept of reconstruction of business is not attracted when a company which is already running one industrial unit sets up another industrial unit. The industrial unit, it was pointed out, would not lose its separate and independent identity even though it has been set up by a company which is already running an…

DCIT, Chennai vs. M/S. Neyveli Lignite Corporation Limited, Neyveli

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 2029/CHNY/2013[2007-08]Status: DisposedITAT Chennai28 Apr 2017AY 2007-08

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…while interpreting the Section 80J in the case of Textile Machinery Corporation Ltd v. CIT, 107 ITR 195 (SC) has held that expansion of the existing business will also be entitled to relief under section 80J. In the case of CIT v. Ganga Sugar Corporation Ltd, 92 ITR 173 (Del.), it was pointed out that the concept of reconstruction of business is not attracted when a company which is already running one industrial unit sets up another industrial unit. The industrial unit, it was pointed out, would not lose its separate and independent identity even though it has been set up by a company which is already running an…

DCIT, Chennai vs. M/S. Neyveli Lignite Corporation Limited, Neyveli

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 1983/CHNY/2011[2008-09]Status: DisposedITAT Chennai28 Apr 2017AY 2008-09

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…while interpreting the Section 80J in the case of Textile Machinery Corporation Ltd v. CIT, 107 ITR 195 (SC) has held that expansion of the existing business will also be entitled to relief under section 80J. In the case of CIT v. Ganga Sugar Corporation Ltd, 92 ITR 173 (Del.), it was pointed out that the concept of reconstruction of business is not attracted when a company which is already running one industrial unit sets up another industrial unit. The industrial unit, it was pointed out, would not lose its separate and independent identity even though it has been set up by a company which is already running an…

Upkar International Pvt. Ltd., New Delhi vs. ITO, New Delhi

ITA 2486/DEL/2012[2003-04]Status: DisposedITAT Delhi24 Feb 2016AY 2003-04

Bench: Shri J. Sudhakar Reddy & Sh. Sudhanshu Srivastavaay: 2003-04 Upkar International Pvt. Ltd., Vs Income Tax Officer, Building No. 10812, Ward 18(1). 17- Pratap Nagar, New Delhi. Delhi. (Appellant) (Respondent) Appellant By: Shri J.S. Kochar, Ca Respondent By: Shri O.P.Meena, Sr. Dr

For Appellant: Shri J.S. Kochar, CAFor Respondent: Shri O.P.Meena, Sr. DR
Section 143(3)Section 574Section 575Section 80Section 80I

…Del/2012 Assessment year 2003-04 (1995) 83 Taxman 482 (AP), it was held that expansion of existing industrial unit by increasing capacity of production to large extent is merely reconstruction of business. Similarly, in the case of Ganga Sugar Corp Ltd (1973) 92 ITR 173 (Del) it was held that where a company is already running one industrial unit sets up another industrial unit then it will amount to reconstruction of business. He submitted that the underlying idea of a reconstruction is that there be a continuation of the activities and business of the same undertaking. The original business or undertaking co…

CIT v. Ganga Sugar Corporation Ltd. (92 ITR 173) — Cited in 14 Judgments | BharatTax