CIT v. Jaypee DSC Ventures Ltd.

335 ITR 132High Court2011#4259 most cited

What is CIT v. Jaypee DSC Ventures Ltd. authority for?

Interest income generated from fixed deposits, if purchased due to business exigencies or for the purpose of carrying on business activities, is to be treated as business income and not income from other sources.

28

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Jaypee DSC Ventures Ltd. · business exigencies · interest income · business income · income from other sources · fixed deposits · Section 143(3) · Section 24(b) · Section 250(6)

Also reported as

17 Taxmann.com 257

Sections most often in play

Section 143(3)Section 24(b)Section 250(6)
Read the full judgment

Issues it is cited on

income from other sourcescompanybusinessinterestsection 143(3)india

Judgments citing CIT v. Jaypee DSC Ventures Ltd.

M/S. Rangoli Projects Pvt. Ltd., New Delhi vs. ITO, New Delhi

ITA 50/DEL/2013[2009-10]Status: DisposedITAT Delhi27 Jul 2016AY 2009-10

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Sh. P.N. Monga & Monu Monga, AdvFor Respondent: Sh. V.R. Sonbhadra, Sr. DR
Section 14ASection 234

…herefore contended that the authorities below are not justified to disallow the similar claim of assessee during the year under consideration. He also placed reliance on the decision of Hon’ble Delhi High Court in the case of CIT vs. Jaypee DSC Ventures Ltd., 335 ITR 132 (Del.) wherein it was held that the interest income earned by the assessee on FDR was business income. The FDR given for obtaining the license from HUDA as per their requirement, therefore, cannot be deemed for the purpose other than business. The interest income earned by the assessee on FDR should be netted with the interest paid by the assesse…

M/S. M.S. Associates, New Delhi vs. ACIT, New Delhi

In the result, the Appeal filed by the

ITA 2104/DEL/2014[2007-08]Status: DisposedITAT Delhi01 Jul 2016AY 2007-08

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: SH. SATYA JEET GOEL, CAFor Respondent: SH. P. DAM KANUNJNA, SR
Section 142(1)Section 143(1)Section 143(2)Section 143(3)

…ttedly, where the Bank interest on Fixed Deposit which are pledged for Performance Guarantee is chargeable under the head ‘business income’ is supported by the decision of the Jurisdictional High Court in the case of CIT vs. Jaypee DSC Ventures Ltd. (2011) 335 ITR 132 (Del.). There are other contrary decisions also available and therefore, the issue becomes debatable with respect to the taxation of such interest income. When the issue is debatable the provisions of Section 154 cannot be invoked. The provisions of Section 154 can be invoked when there is apparent mistake which is glaring and patent. In the pr…

M/S. M.S. Associates, New Delhi vs. ACIT, New Delhi

In the result, the Appeal filed by the

ITA 2103/DEL/2014[2007-08]Status: DisposedITAT Delhi01 Jul 2016AY 2007-08

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: SH. SATYA JEET GOEL, CAFor Respondent: SH. P. DAM KANUNJNA, SR
Section 142(1)Section 143(1)Section 143(2)Section 143(3)

…ttedly, where the Bank interest on Fixed Deposit which are pledged for Performance Guarantee is chargeable under the head ‘business income’ is supported by the decision of the Jurisdictional High Court in the case of CIT vs. Jaypee DSC Ventures Ltd. (2011) 335 ITR 132 (Del.). There are other contrary decisions also available and therefore, the issue becomes debatable with respect to the taxation of such interest income. When the issue is debatable the provisions of Section 154 cannot be invoked. The provisions of Section 154 can be invoked when there is apparent mistake which is glaring and patent. In the pr…

M/S Paliwal Overseas Ltd., Panipat vs. ACIT, Panipat

In the result, the appeal of the assessee is partly

ITA 3491/DEL/2011[2001-02]Status: DisposedITAT Delhi30 Jun 2016AY 2001-02

Bench: Shri Sudhanshu Srivastava & Shri L.P. Sahu

Section 80H

…it cannot be disputed that such income is ITA Nos. 3490 TO 3495/Del/2011 Paliwal Overseas Ltd. Page 15 of 47 essentially in the nature of business income and not income from other sources. The Hon’ble Delhi High Court in CIT vs. Jaypee DSC Ventures Limited 335 ITR 132 (Del.) has held as under: “As is noticeable from the stipulations in the agreement, the performance guarantee by way of bank guarantee was required for faithful performance of its obligations. The non submission of the guarantee would have entailed in termination of the agreement and NHAI would have been at liberty to appropriate bid security. T…

M/S Paliwal Overseas Ltd., Panipat vs. ACIT, Panipat

In the result, the appeal of the assessee is partly

ITA 3490/DEL/2011[2000-01]Status: DisposedITAT Delhi30 Jun 2016AY 2000-01

Bench: Shri Sudhanshu Srivastava & Shri L.P. Sahu

Section 80H

…it cannot be disputed that such income is ITA Nos. 3490 TO 3495/Del/2011 Paliwal Overseas Ltd. Page 15 of 47 essentially in the nature of business income and not income from other sources. The Hon’ble Delhi High Court in CIT vs. Jaypee DSC Ventures Limited 335 ITR 132 (Del.) has held as under: “As is noticeable from the stipulations in the agreement, the performance guarantee by way of bank guarantee was required for faithful performance of its obligations. The non submission of the guarantee would have entailed in termination of the agreement and NHAI would have been at liberty to appropriate bid security. T…

Joynest Prremises P.Ltd, Mumbai vs. ITO 5(3)(4), Mumbai

In the result, both the appeals filed by the assessee are partly allowed

ITA 6717/MUM/2014[2009-10]Status: DisposedITAT Mumbai15 Jun 2016AY 2009-10

Bench: Shri G.S. Pannu & Shri Sanjay Gargआयकर अपील सं./ I.T.A. No. 6717/Mum/2014 & आयकर अपील सं./ I.T.A. No. 6718/Mum/2014 (िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" / Assessment Years: 2009-10 & 2010-11) वष" Joynest Premises Pvt. Ltd. Ito, 5(3)(4), R. No.565 बनाम बनाम/ बनाम बनाम Cts No.469-A, Near Jain Temple, Aayakar Bhavan, R.C. Marg, Chembur, M.K. Road, Vs. Mumbai-400 071. Mumbai-400 020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaacz 3360M (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Anuj Kisnadwala ""यथ" क" ओर से/Respondent By : Shri Asghar Zain सुनवाई क" तारीख / : 08/06/2016 Date Of Hearing घोषणा क" तारीख / : 15.06.2016 Date Of Pronouncement आदेश / O R D E R Per Sanjay Garg: The Above Titled Appeals Have Been Preferred By The Assessee Against The Two Separate Orders Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred To As The Cit(A)] Of Even Date 14.08.2014 Relevant To A.Y. 2009-10 & 2010-11 Respectively.

For Appellant: Shri Anuj KisnadwalaFor Respondent: Shri Asghar Zain
Section 143

…se of CIT vs. Bokaro Steel Ltd. (supra) and in the case of CIT vs. Karnal Co-operative Sugar Mills Ltd.[243 ITR 2] (Supreme Court). He further has strongly relied upon the decision of Hon’ble Delhi High Court in the case of CIT vs. Jaypee DSC Ventures Ltd [335 ITR 132] (Delhi). He has invited our attention to the question of law framed by the Delhi High Court in that case and stated that the identical issue regarding the taxablility of the interest income on FDR’s made for submitting the performance guarantee to the National Highways Authority of India has been answered by the Hon’ble Delhi High Court in fa…

Msx Mall Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee for A

ITA 998/DEL/2013[2009-10]Status: DisposedITAT Delhi31 May 2016AY 2009-10

Bench: Shri Chandra Mohan Garg & Shri O.P. Kant

For Appellant: Shri Kapil Goel, AdvFor Respondent: Shri P. DAM Kanunjna, Sr. DR
Section 147Section 148Section 251

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘E’: NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER, AND SHRI O.P. KANT, ACCOUNTANT MEMBER, ITA Nos. 997 & 998/Del /2013 [Assessment Years: 2008-09 & 2009-10] MSX Mall Pvt Ltd. Vs. The A.C.I.T C/o R.K. Tuli & Associates Central Circle - 21 11/37. Ground Floor New Delhi Old Rajinder Nagar, New Delhi PAN : AABCN 8537 B ITA No. 588/Del /2013 [Assessment Years: 2009-10] The A.C.I.T Vs. MSX Mall Pvt Ltd. Central Circle – 21 C/o R.K. Tuli & Associates New Delhi 11/37, Ground Floor Old Rajinder Nagar, New Delhi PAN : AABCN 8537 B [Appellant] [Responde…

Msx Mall Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee for A

ITA 997/DEL/2013[2008-09]Status: DisposedITAT Delhi31 May 2016AY 2008-09

Bench: Shri Chandra Mohan Garg & Shri O.P. Kant

For Appellant: Shri Kapil Goel, AdvFor Respondent: Shri P. DAM Kanunjna, Sr. DR
Section 147Section 148Section 251

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘E’: NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER, AND SHRI O.P. KANT, ACCOUNTANT MEMBER, ITA Nos. 997 & 998/Del /2013 [Assessment Years: 2008-09 & 2009-10] MSX Mall Pvt Ltd. Vs. The A.C.I.T C/o R.K. Tuli & Associates Central Circle - 21 11/37. Ground Floor New Delhi Old Rajinder Nagar, New Delhi PAN : AABCN 8537 B ITA No. 588/Del /2013 [Assessment Years: 2009-10] The A.C.I.T Vs. MSX Mall Pvt Ltd. Central Circle – 21 C/o R.K. Tuli & Associates New Delhi 11/37, Ground Floor Old Rajinder Nagar, New Delhi PAN : AABCN 8537 B [Appellant] [Responde…