CIT v. Karnal Co-operative Sugar Mills Ltd.

DCIT Cen Cir 8(3), Mumbai vs. Ossian Exports, Mumbai

In the result, the assessee’s appeal for A

Bench: Shri Jason P. Boaz & Shri Ram Lal Negim/S. Ossian Exports Income Tax Officer-14(2)(4) 902, Jewel World Earnest House Vs. Kalbadevi Road Nariman Point Mumbai 400002 Mumbai Pan – Aaacfo0992K Appellant Respondent Dcit, Central Circle-8(3) M/S. Ossian Exports (Erstwhile Dcit, Cc-46) 902, Jewel World Room No. 659, 6Th Floor Vs. Kalbadevi Road Aayakar Bhavan, M.K. Road Mumbai 400002 Mumbai 400020 Pan – Aaacfo0992K Appellant Respondent

…ntion to other decisions of the Tribunal, Ld Counsel for the assessee mentioned that they relate to prior to the amendment to section 10A(4) of the Act. He also relied on the Judgment of the Apex Court in the case of CIT vs. Karnal Cooperative Sugar Mills Ltd 243 ITR 2 (SC) and the judgment of the Bombay High court in the case of CIT vs. Indo Swiss Jewells Ltd 284 ITR 389 (Bom) and also on various precedents of the Hon'ble Supreme Court as well as various High Courts, copies of which are placed in voluminous paper book, and submitted that the said judgments were relied upon by the Tribunal in adjudicating the iss…

Ossian Exports, Mumbai vs. ITO 14(2)(4), Mumbai

In the result, the assessee’s appeal for A

Bench: Shri Jason P. Boaz & Shri Ram Lal Negim/S. Ossian Exports Income Tax Officer-14(2)(4) 902, Jewel World Earnest House Vs. Kalbadevi Road Nariman Point Mumbai 400002 Mumbai Pan – Aaacfo0992K Appellant Respondent Dcit, Central Circle-8(3) M/S. Ossian Exports (Erstwhile Dcit, Cc-46) 902, Jewel World Room No. 659, 6Th Floor Vs. Kalbadevi Road Aayakar Bhavan, M.K. Road Mumbai 400002 Mumbai 400020 Pan – Aaacfo0992K Appellant Respondent

…ntion to other decisions of the Tribunal, Ld Counsel for the assessee mentioned that they relate to prior to the amendment to section 10A(4) of the Act. He also relied on the Judgment of the Apex Court in the case of CIT vs. Karnal Cooperative Sugar Mills Ltd 243 ITR 2 (SC) and the judgment of the Bombay High court in the case of CIT vs. Indo Swiss Jewells Ltd 284 ITR 389 (Bom) and also on various precedents of the Hon'ble Supreme Court as well as various High Courts, copies of which are placed in voluminous paper book, and submitted that the said judgments were relied upon by the Tribunal in adjudicating the iss…

DCIT 7(2), Mumbai vs. Swan Energy Ltd, Mumbai

In the result appeal filed by the Revenue is dismissed

Bench: Shri R.C. Sharma() & Shri Amarjeet Singh () Assessment Year: 2008-09

…) the rent received from contractor for hiring accommodation and other things were held to be capital receipts deductible from cost of construction. Such rent was also received prior to commencement of business. In the case of CIT Vs. Karnal Co-op Sugar Mills 243 ITR 2(SC), interest on money deposited to open letter of credit for purchase of machinery was held to be capital receipt to be capitalized with the cost of machinery and not assessable as income from other sources. In the case of Bongaigaon Refinery and Petrochemicals 251 ITR 329, (SC), the income received in the pre-commencement period was held not char…

Jewel Art, Mumbai vs. DCIT Cen Cir 13, Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri R.C.Sharma & Shri Pawan Singhm/S Jewel Art Dcit, Cc-13, Gala No. 19/22, Gem & Jewellery [Now Dcit, Cc-2(3)], Mumbai. Complex No. Ii, Seepz, Vs. Andheri (E), Mumbai-400096. Pan: Aacfj2646R (Appellant) (Respondent) Assessee By : Shri Rishabh Shah (Ar) Revenue By : Shri Jeevanlal Lavedia (Dr) Date Of Hearing : 06.10.2016 Date Of Pronouncement : 07.10.2016 O R D E R Per Pawan Singh, Jm: 1. This Appeal U/S 253 Of The Income-Tax Act Is Directed By The Assessee Against The Order Of Cit(A)-48, Mumbai Dated 05.08.2015 For Assessment Year (Ay) 2010-11. 2. Brief Facts Of The Case Are That A Search & Seizure Action U/S 132 & Survey U/S 133A Of The Income-Tax Act Was Carried Out In Case Of Asian Star Group On 29.10.2010. Consequent Upon Search, The Notice U/S 153 Of The Act Was Issued To The Assessee. In Response To The Notice, Assessee Filed Return Of Income On 27.09.2011. While Framing The Assessment U/S 143(3) R.W.S. 153A, The Assessing Officer (Ao) Besides The Other Addition Made The Addition Of Rs. 44,59,441/- Holding That The Income From Other Sources Which Was Earned As Interest On Fd’S Is Not Eligible For Exemption U/S 10A. Aggrieved By The Order Of Ao, Assessee Filed Appeal Before The Cit(A)

…ntion to other decisions of the Tribunal, Ld Counsel for the assessee mentioned that they relate to prior to the amendment to section 10A(4) of the Act. He also relied on the Judgment of the Apex Court in the case of CIT vs. Karnal Cooperative Sugar Mills Ltd 243 ITR 2 (SC) and the judgment of the Bombay High court in the case of CIT vs. Indo Swiss Jewells Ltd 284 ITR 389 (Bom) and also on various precedents of the Hon'ble Supreme Court as well as various High Courts, copies of which are placed in voluminous paper book, and submitted that the said judgments were relied upon by the Tribunal in 3 ITA No. 4908/M/20…

ACIT 12(2)(1), Mumbai vs. Etisaltat DB Telecom P.Ltd, Mumbai

…t facts of the cases, relied upon by the AO,were totally different from the facts of the case under appeal. He referred to the judgment of the Honorable Supreme 2 7544/M/14-Etisalat DB Telecom P.Ltd. Court in the case of Karnal Co-Operative Sugar Mills Ltd.(243 ITR 2)and held that interest received by the assessee on the margin monies placed in FD.s with the banks for obtaining bank guarantees for fulfilling the preconditions laid down for issue of Telcom licenses was a capital receipt and hence not chargeable to tax,that the assessee’s treatment of the same of setting it off against project development expense…

Prestress Wire Industries, Mumbai vs. Addl CIT 12(1), Mumbai

…m other sources‟ as treated by the Assessing Officer. In this regard, Ld Counsel relied on the following decisions. i) CIT vs. Vidyut Steel Ltd. 219 ITR 30 (AP) ii) CIT vs. Koshika Telecom Ltd 287 ITR 479 (Del) iii) CIT vs. Karnal Cooperative Sugar Mills Ltd 243 ITR 2 (SC) iv) CIT vs. Indo Swiss Jewells Ltd 284 ITR 389 (Bom) 15. On the other hand, Ld DR dutifully relied on the order of the AO. 16. We have heard both the parties and perused the orders of the Revenue Authorities as well as citations quoted by the Ld Counsel along with the relevant material placed before us. On perusal of the cited judgments of the…

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

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

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.

…ovnest Premises Pvt. Ltd. vs. ITO The Hon’ble Delhi High Court while relying upon various case laws including that of the Hon’ble Supreme Court in the case 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) and also other decision of the Delhi High Court in the case of ‘Indian Oil Panipat Power Consortium Ltd. vs. ITO’ [2009] 315 ITR 255 (Delhi) and also considering the distinguishing facts in the case of ‘Tuticorin Alkali Chemicals and Fertilizers Ltd. vs. CIT’ (supra) has upheld the finding of the Tribunal that the interest earne…

ACIT 8(1), Mumbai vs. Bunge India P. Ltd, Mumbai

…re would be a time lag of a few days between the maturity of L/C and FD wherein the L/C would mature a few days before the FD, that the sale proceeds received would be utilised to retire the L/C.He relied upon the cases of Karnal Co-operative Sugar Mills Ltd.(243 ITR 2), Lok Holdings (308 ITR 356). 14.We have heard the rival submissions and perused the metal before us. We find that while adjudicating the first ground,we have extensively dealt with the issue and have noted the facts. We have held that the placing of money in the banks in the forms of FDRs was directly linked with the carrying out of business of t…

Addl CIT 19(3), Mumbai vs. Petrikum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…322/10 ITA No.2686&6421/12 According to the appellant, the decisions referred' to in the Order of Assessment are distinguishable on facts and are therefore, to be read in light of the Supreme Court decision in CIT v Karnal Co- operative Sugar Mills Ltd [2000} 243 ITR 2 (SC). In particular, the appellant has drawn my attention to the following observations made by the Supreme Court, In the present case, the assessee had deposited money to open a letter of credit for the purchase of the machinery required for setting up its plant in terms of the assessee's agreement with the supplier. It was on the moneys so deposi…

Addl CIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…322/10 ITA No.2686&6421/12 According to the appellant, the decisions referred' to in the Order of Assessment are distinguishable on facts and are therefore, to be read in light of the Supreme Court decision in CIT v Karnal Co- operative Sugar Mills Ltd [2000} 243 ITR 2 (SC). In particular, the appellant has drawn my attention to the following observations made by the Supreme Court, In the present case, the assessee had deposited money to open a letter of credit for the purchase of the machinery required for setting up its plant in terms of the assessee's agreement with the supplier. It was on the moneys so deposi…

ACIT 19(3), Mumbai vs. Petroleum India Internaitonal, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…322/10 ITA No.2686&6421/12 According to the appellant, the decisions referred' to in the Order of Assessment are distinguishable on facts and are therefore, to be read in light of the Supreme Court decision in CIT v Karnal Co- operative Sugar Mills Ltd [2000} 243 ITR 2 (SC). In particular, the appellant has drawn my attention to the following observations made by the Supreme Court, In the present case, the assessee had deposited money to open a letter of credit for the purchase of the machinery required for setting up its plant in terms of the assessee's agreement with the supplier. It was on the moneys so deposi…

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…322/10 ITA No.2686&6421/12 According to the appellant, the decisions referred' to in the Order of Assessment are distinguishable on facts and are therefore, to be read in light of the Supreme Court decision in CIT v Karnal Co- operative Sugar Mills Ltd [2000} 243 ITR 2 (SC). In particular, the appellant has drawn my attention to the following observations made by the Supreme Court, In the present case, the assessee had deposited money to open a letter of credit for the purchase of the machinery required for setting up its plant in terms of the assessee's agreement with the supplier. It was on the moneys so deposi…

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…322/10 ITA No.2686&6421/12 According to the appellant, the decisions referred' to in the Order of Assessment are distinguishable on facts and are therefore, to be read in light of the Supreme Court decision in CIT v Karnal Co- operative Sugar Mills Ltd [2000} 243 ITR 2 (SC). In particular, the appellant has drawn my attention to the following observations made by the Supreme Court, In the present case, the assessee had deposited money to open a letter of credit for the purchase of the machinery required for setting up its plant in terms of the assessee's agreement with the supplier. It was on the moneys so deposi…

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…322/10 ITA No.2686&6421/12 According to the appellant, the decisions referred' to in the Order of Assessment are distinguishable on facts and are therefore, to be read in light of the Supreme Court decision in CIT v Karnal Co- operative Sugar Mills Ltd [2000} 243 ITR 2 (SC). In particular, the appellant has drawn my attention to the following observations made by the Supreme Court, In the present case, the assessee had deposited money to open a letter of credit for the purchase of the machinery required for setting up its plant in terms of the assessee's agreement with the supplier. It was on the moneys so deposi…

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…322/10 ITA No.2686&6421/12 According to the appellant, the decisions referred' to in the Order of Assessment are distinguishable on facts and are therefore, to be read in light of the Supreme Court decision in CIT v Karnal Co- operative Sugar Mills Ltd [2000} 243 ITR 2 (SC). In particular, the appellant has drawn my attention to the following observations made by the Supreme Court, In the present case, the assessee had deposited money to open a letter of credit for the purchase of the machinery required for setting up its plant in terms of the assessee's agreement with the supplier. It was on the moneys so deposi…