CIT v. Lakshmi Machine Works

290 ITR 667Supreme Court of India2007#605 most cited

What is CIT v. Lakshmi Machine Works authority for?

Excise duty collected by the assessee as an agent on behalf of the government is not includible in the total turnover for the purpose of computing deduction under section 80HHC.

163

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Lakshmi Machine Works · 290 ITR 667 · section 80HHC · turnover · excise duty · exclusion of excise duty from turnover · calculation of deduction under section 80HHC

Sections most often in play

Section 80HHCSection 143(3)Section 37(1)Section 28(iiid)Section 35DSection 40(a)(i)Section 80IBSection 115JB
Read the full judgment

Issues it is cited on

section 80hhc(3)section 80hhcsection 115jasection 80hhinterest on refundsection 80hsection 28(iv)section 145asection 80ibsection 80iadeduction under section 80iasection 244a

Judgments citing CIT v. Lakshmi Machine Works

Kshema Technologies (Since Merged With Mphasis Ltd), Bangalore vs. ACIT, Bangalore

In the result, the assessee's appeal is allowed for statistical

ITA 1105/BANG/2012[2005-06]Status: DisposedITAT Bangalore22 Apr 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Padamchand Khincha, C.AFor Respondent: Mrs. Neera Malhotra, CIT-II (D.R)
Section 92CSection 92C(3)

…from the total turnover particularly in the absence of a legislative prescription to the contrary – CIT v Sudarshan Chemicals Industries Ltd. (2000) 163 CTR (Bom) 596: (2000) 245 ITR 769 (Bom) applied; CIT v Lakshmi Machine Works (2007) 210 CTR (SC) 1: (2007) 290 ITR 667 (SC) and CIT v Catapharma (India) (P) Ltd. (2007) 211 CTR (SC) 83: (2007) 292 ITR 641 (SC) relied on” 16.3 In the light of the above binding precedents, we are of the view that the orders of the CIT(A) is correct and in accordance with law 29 IT(T.P)A No.1105 & 1259/Bang/2012 and he is justified in directing the AO to exclude the above mentioned…

Ingersoll Rand (India) Limited, Bangalore vs. DCIT, Bangalore

In the result, the assessee's appeal is partly allowed

ITA 272/BANG/2012[2004-05]Status: DisposedITAT Bangalore30 Mar 2016AY 2004-05

Bench: Shri Abraham P George & Shri Vijay Pal Rao

For Appellant: Shri K.R. Vasudevan, AdvocateFor Respondent: Mrs. S. Praveena, Addl. CIT (D.R)
Section 143(3)Section 263Section 80H

…tal turnover’ in arriving at the deduction under section 80HHC of the Act. 6.4 Notwithstanding and without prejudice to the above, the learned CIT(A) erred in not following the decision of the Hon’ble Supreme Court in the case of CIT v. Lakshmi Machine Works [290 ITR 667]. Adjustments to business profits 6.5 The learned CIT(A) erred in confirming the reduction in profits of the business for the deduction under section 80HHC of the Act by reducing 90% of the following income: a. Sundry income (Cash discount on purchases) – Rs. 1,20,000 b. Recovery of freight and insurance and packing expenses – Rs.1,76,90,000 c. I…

The Commissoner of Income Tax I vs. M/s. Alpha Thought Technologies P Ltd

ITTA/191/2011HC Telangana21 Mar 2016

Bench: RAMESH RANGANATHAN,M.SATYANARAYANA MURTHY

M/S. the Hindustan Sewing & Weaving Mills Ltd., Mumbai vs. DCIT Cir. 2(1), Mumbai

In the result, appeals of the assessee and department are partly allowed

ITA 3821/MUM/2003[1995-1996]Status: DisposedITAT Mumbai08 Jan 2016AY 1995-1996

Bench: Shri Joginder Singh & Shri Ashwani Tanejaassessment Year: 1995-96 Hindoostan Mills Ltd. Dcit Cir-2(1) Sir Vithaldas Chambers Mumbai बनाम/ 16, Mumbai Samachar Vs. Marg Fort, Mumbai-400001 (Assessee) (Revenue) P.A. No.Aaact4057F Assessment Year: 1995-96 Dcit Cir-2(1) Hindoostan Mills Ltd. Mumbai Sir Vithaldas Chambers बनाम/ 16, Mumbai Samachar Vs. Marg Fort, Mumbai-400001 (Revenue) (Respondent ) P.A. No.Aaact4057F "नधा"रती क" ओर से / Assessee By Shri N.V. Nadkarni (Ar) Shri K.K. Ved (Dr) राज"व क" ओर से / Revenue By सुनवाई क" तार"ख / Date Of 21/12/2015 Hearing : 8/01/2016 आदेश क" तार"ख /Date Of Order:

Section 143(3)Section 80H

…ile computing deduction u/s 80HHC. 7 Hindoostan Mills Ltd 7.1. We have heard both the parties on this issue. It is found that this issue is covered in favour of the assessee by the judgment of Hon’ble Supreme Court in the case of CIT vs Lakshmi Machine Works 290 ITR 667 as well as with the judgment of Hon’ble Tribunal in assessee’s own case for A.Y. 1994-95. It has been held by the Tribunal that this issue stands covered with the aforesaid judgment of Hon’ble Supreme Court. Thus, respectfully following the same, this issue is decided in favour of the assessee, and thus, ground Number 2 raised by the Revenue is d…

DCIT, Circle - 8, Kolkata vs. M/S. E.I.H. Ltd., Kolkata

In the result, the appeal of the revenue in ITA NO

ITA 2182/KOL/2006[2003-04]Status: DisposedITAT Kolkata09 Dec 2015AY 2003-04

Bench: : Shri M. Balaganesh

For Appellant: Shri R.N Bajoria, Sr.Advocate &For Respondent: Shri Rajat Subhra Biswas, ld.CIT/DR
Section 143(3)Section 195Section 40Section 9(1)(vii)

…nue appeal) dated 11.9.2015 , wherein in para 9, it has been held as under:- 9.3. We have heard the rival submissions and we find that this issue is now squarely covered by the decision of the apex court in the case of CIT vs Lakshmi Machine Works Ltd (2007) 290 ITR 667 (SC) wherein it was held that “Section 80HHC(3) is a beneficial section. It was intended to provide incentives to promote exports. The incentive was to exempt profits relatable to exports. In the case of combined business of an assessee having export business and domestic business, the Legislature intended to have a formula to ascertain export pr…

Director of Income Tax I vs. Pvt Ltd

The appeals are dismissed

ITA/403/2013HC Delhi28 Sept 2015
Section 194Section 201Section 44Section 44BSection 80H

…ision in George Oakes (P.) Ltd. (supra), it was held that the ‘turn over’ for the purposes of Section 80HHCof the Act would not include sales tax and excise duty. He also referred to the decision of the Supreme Court in CIT v. Lakshmi Machine Works (2007) 290 ITR 667 (SC) where again the same question was considered and this time, the Supreme Court also took note of the earlier decision in Chowringhee Sales Bureau (supra). Mr. Kaushik also referred to the decisions in DIT v. Schlumberger Asia Services Ltd (supra), Sedco Forex International Inc. v. CIT 299 ITR 238 (Uttarakhand) and the decision of this Co…

Director of Income Tax I vs. Pvt Ltd

The appeals are dismissed

ITA/384/2015HC Delhi28 Sept 2015
Section 194Section 201Section 44Section 44BSection 80H

…ision in George Oakes (P.) Ltd. (supra), it was held that the ‘turn over’ for the purposes of Section 80HHCof the Act would not include sales tax and excise duty. He also referred to the decision of the Supreme Court in CIT v. Lakshmi Machine Works (2007) 290 ITR 667 (SC) where again the same question was considered and this time, the Supreme Court also took note of the earlier decision in Chowringhee Sales Bureau (supra). Mr. Kaushik also referred to the decisions in DIT v. Schlumberger Asia Services Ltd (supra), Sedco Forex International Inc. v. CIT 299 ITR 238 (Uttarakhand) and the decision of this Co…

ACIT, Bangalore vs. M/S K. Mohan & Company (Exports) Pvt. Ltd., Bangalore

In the result, ITA 1057/B/12 is partly allowed and ITA 1103/B/12 is dismissed

ITA 1103/BANG/2012[2008-09]Status: DisposedITAT Bangalore24 Apr 2015AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri V. Srinivasan, C.AFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 10BSection 10B(3)

…adopted by the ITAT Special Bench, Chennai, in the case of ITO Vs. Sak Soft Ltd. (2009) reported in 313 ITR 353. While deciding that case, the Learned ITAT followed the decision of the Hon’ble Supreme Court in the case of CIT Vs. Lakshmi Machine Works (2007) 290 ITR 667 (SC) wherein the Hon’ble Court held that since the term ‘turnover” is in relation to “business profits” only, it must include the receipts which only involves elements of profit. Based on such interpretation, it was held that reimbursement of expenditure has no element of profit and hence reimbursement of sales tax and Excise Duty do not form par…

M/S K. Mohan & Company (Exports) Private Limited, Bangalore vs. ACIT, Bangalore

In the result, ITA 1057/B/12 is partly allowed and ITA 1103/B/12 is dismissed

ITA 1057/BANG/2012[2008-09]Status: DisposedITAT Bangalore24 Apr 2015AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri V. Srinivasan, C.AFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 10BSection 10B(3)

…adopted by the ITAT Special Bench, Chennai, in the case of ITO Vs. Sak Soft Ltd. (2009) reported in 313 ITR 353. While deciding that case, the Learned ITAT followed the decision of the Hon’ble Supreme Court in the case of CIT Vs. Lakshmi Machine Works (2007) 290 ITR 667 (SC) wherein the Hon’ble Court held that since the term ‘turnover” is in relation to “business profits” only, it must include the receipts which only involves elements of profit. Based on such interpretation, it was held that reimbursement of expenditure has no element of profit and hence reimbursement of sales tax and Excise Duty do not form par…

M/S. K. Mohan & Company (Exports) Pvt. Ltd., Bangalore vs. ACIT, Bangalore

In the result, ITA 1057/B/12 is partly allowed and ITA 1103/B/12 is dismissed

ITA 1266/BANG/2010[2007-08]Status: DisposedITAT Bangalore24 Apr 2015AY 2007-08

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri V. Srinivasan, C.AFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 10BSection 10B(3)

…adopted by the ITAT Special Bench, Chennai, in the case of ITO Vs. Sak Soft Ltd. (2009) reported in 313 ITR 353. While deciding that case, the Learned ITAT followed the decision of the Hon’ble Supreme Court in the case of CIT Vs. Lakshmi Machine Works (2007) 290 ITR 667 (SC) wherein the Hon’ble Court held that since the term ‘turnover” is in relation to “business profits” only, it must include the receipts which only involves elements of profit. Based on such interpretation, it was held that reimbursement of expenditure has no element of profit and hence reimbursement of sales tax and Excise Duty do not form par…

M/S K. Mohan & Compnay (Exports) Pvt. Ltd., Bangalore vs. ACIT, Bangalore

In the result, ITA 1057/B/12 is partly allowed and ITA 1103/B/12 is dismissed

ITA 1093/BANG/2009[2006-07]Status: DisposedITAT Bangalore24 Apr 2015AY 2006-07

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri V. Srinivasan, C.AFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 10BSection 10B(3)

…adopted by the ITAT Special Bench, Chennai, in the case of ITO Vs. Sak Soft Ltd. (2009) reported in 313 ITR 353. While deciding that case, the Learned ITAT followed the decision of the Hon’ble Supreme Court in the case of CIT Vs. Lakshmi Machine Works (2007) 290 ITR 667 (SC) wherein the Hon’ble Court held that since the term ‘turnover” is in relation to “business profits” only, it must include the receipts which only involves elements of profit. Based on such interpretation, it was held that reimbursement of expenditure has no element of profit and hence reimbursement of sales tax and Excise Duty do not form par…

The Commissioner of Income Tax vs. M/S Wipro Ltd

The appeals stand disposed of, accordingly

ITA/211/2009HC Karnataka25 Mar 2015

Bench: N.KUMAR,B.SREENIVASE GOWDA

Section 260

…unless expressly excluded, and the amount so received is eligible for benefit under Section 10A. 115. The authorities have declined to grant the said benefit by relying on a judgment of the Apex Court in CIT vs. Laxmi Machine Works reported in (2007) 290 ITR 667. The question which arose for consideration in the said judgment was, whether excise duty and sales tax were includible in the total turnover which was the denominator in the formula contained in Sec. 80 HHC as it stood at the material time. In answering the said question, the Apex Court held as under : “We have to read the words `total t…

M/S Wipro Limited vs. The Deputy Commissioner of Income Tax

The appeals stand disposed of, accordingly

ITA/881/2008HC Karnataka25 Mar 2015

Bench: N.KUMAR,B.SREENIVASE GOWDA

Section 260

…unless expressly excluded, and the amount so received is eligible for benefit under Section 10A. 115. The authorities have declined to grant the said benefit by relying on a judgment of the Apex Court in CIT vs. Laxmi Machine Works reported in (2007) 290 ITR 667. The question which arose for consideration in the said judgment was, whether excise duty and sales tax were includible in the total turnover which was the denominator in the formula contained in Sec. 80 HHC as it stood at the material time. In answering the said question, the Apex Court held as under : “We have to read the words `total t…

The Commissioner of Income-Tax vs. M/S Bharath Electronics Ltd

ITA/348/2007HC Karnataka18 Dec 2013

Bench: N.KUMAR,RATHNAKALA

Section 260Section 80H

…r of the tribunal is set aside. - 5 - 3. With regard to the first substantial question, it is not in dispute that the Apex Court has laid down law on the point in the case of COMMISSIONER OF INCOME TAX VS. LAKSHMI MACHINE WORKS REPORTED IN (2007) 290 ITR 667 (SC), that the sales tax does not form part of the total turnover for the purpose of computing deductions under Section 80HHC of the Income Tax Act. Hence, the substantial question of law is answered against the revenue and in favour of the assessee. Ordered accordingly. Sd/- JUDGE Sd/- JUDGE nvj…

The Commissioner of Income Tax vs. M/S Wipro Ltd

In the result, the appeals are partly allowed

ITA/133/2007HC Karnataka23 Aug 2013

Bench: B.MANOHAR,DILIP B.BHOSALE

Section 260

…1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 23rd DAY OF AUGUST 2013 PRESENT THE HON’BLE MR. JUSTICE DILIP B BHOSALE AND THE HON’BLE MR. JUSTICE B MANOHAR ITA.NO.133/2007 C/W ITA.NOs.68/2007, 67/2007 IN ITA.NO.133/2007 BETWEEN 1. THE COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, C.R.BUILDING QUEENS ROAD, BANGALORE 2. THE DEPUTY COMMISSIONER OF INCOME TAX SPECIAL RANGE IV (A), MUMBAI ... APPELLANTS (BY SRI K V ARAVIND, ADV.,) AND M/S WIPRO LTD C/O SHRI K .R.PRADEEP, C.A. NO.1…

The Commissioner of Income Tax vs. M/s.Agarwal Rubber Pvt Limited

ITTA/628/2006HC Telangana24 Apr 2012

Bench: The Commissioner Of Income Tax (Appeals) Who Allowed The Appeals Holding That The Initiation Of Proceedings For Reopening Of The Assessment Were Bad In Law As There Has Been No Omission On The Part Of The Assesses To Disclose Fully & Truly All Material Facts. As Against The Said Order Of The Commissioner Of Income Tax (Appeals), The Department Filed Appeals Before The Income Tax Appellate Tribunal, Which Were Dismissed Holding That The Excise Duty & Sales Tax Collections Would Not Form Part Of The Total Turnover For

Section 143Section 147Section 260Section 80Section 80HSection 87

…The appeals before the Commissioner of income Tax were filed against the orders of the Assistant Commissioner of Income Tax Circle II, Hyderabad dated 27-3-2002. The Commissioner of Income Tax order is dated 6-3-93. [1] (2007) 290 ITR 667 (SC)…

The Commissioner of Income Tax-II vs. M/S TCI Finance Limited

ITTA/740/2006HC Telangana02 Feb 2012

Commissioner of Income Tax vs. Asian Hotels Ltd

The appeal is disposed of

ITA/656/2009HC Delhi03 Feb 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

Section 115JSection 143(3)Section 148Section 80H

…would not be eligible for computation of the deduction admissible under Section 80HHD and deserves to be excluded from the total turnover as a whole. The Tribunal has taken recourse to the judgment of the Supreme Court in CIT v. LAKSHMI MACHINES WORKS, 290 ITR 667 in support of its view. Learned counsel for the respondent also brought to our notice that not only in previous assessment years but even in subsequent assessment years, the Department itself has been acting in the same manner. Learned counsel has produced copies of ITA No.656/2009…

Commissioner of Income Tax vs. Shriram Pistons & Rings Limited

Appeal is partly allowed, as aforesaid

ITA-815/2007HC Delhi23 Dec 2009
Section 5Section 80Section 80H

…een taken at net of excise while computing deduction under Section 80HHC. This aspect is not agitated and in fact, stands decided in favour of the assessee by two judgments of the Supreme Court, viz., Commissioner of Income Tax vs. Lakshmi Machine Works [290 ITR 667(SC)] and Commissioner of Income Tax vs. Catapharma [292 ITR 641 (SC)]. However, we are not concerned with this part. The AO also noticed that the other income, which included interest on FDR and interest received on security deposit with Government Department, was not included in the total turnover, but was treated exempted under Section…

Commissioner of Income Tax vs. Shriram Pistons & Rings Limited

Appeal is partly allowed, as aforesaid

ITA - 815 / 2007HC Delhi23 Dec 2009
Section 5Section 80Section 80H

…een taken at net of excise while computing deduction under Section 80HHC. This aspect is not agitated and in fact, stands decided in favour of the assessee by two judgments of the Supreme Court, viz., Commissioner of Income Tax vs. Lakshmi Machine Works [290 ITR 667(SC)] and Commissioner of Income Tax vs. Catapharma [292 ITR 641 (SC)]. However, we are not concerned with this part. The AO also noticed that the other income, which included interest on FDR and interest received on security deposit with Government Department, was not included in the total turnover, but was treated exempted under Section…