CIT v. Menon Impex (P.) Ltd.

259 ITR 403High Court2003#2808 most cited

What is CIT v. Menon Impex (P.) Ltd. authority for?

Interest income, such as from bank deposits or letters of credit, qualifies for deduction under sections 10A and 10AA only if it has a direct and immediate nexus with the eligible industrial undertaking's business.

42

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2011 to 2025.

Also referred to as

CIT v. Menon Impex (P.) Ltd. · section 10A deduction · section 10AA deduction · interest income · direct nexus · eligible undertaking profits · free trade zone unit · income derived from business · 259 ITR 403 · Supreme Court affirmed

Also reported as

128 Taxmann 11

Sections most often in play

Section 10ASection 10AASection 115JBSection 143(1)Section 143(3)Section 145Section 43BSection 45Q

Issues it is cited on

free trade zonesection 80hhsection 10asection 10aasection 80hhcsection 80asection 260section 260acommercial expediencygross total incomesection 80isection 10

Judgments citing CIT v. Menon Impex (P.) Ltd.

M/S. Repco Home Finance Ltd., Chennai vs. ACIT, Chennai

In the result, the appeal of assessee in ITA No

ITA 2732/CHNY/2016[2009-10]Status: DisposedITAT Chennai20 Sept 2017AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri Chandra Poojari]

For Appellant: Mr.M.Viswanathan, C.A ""For Respondent: Dr.S.Sundaresan
Section 143(3)Section 147Section 148Section 36

…ement of Supreme Court in the case of Cambay Electric Supply Industrial Co. Ltd Vs. CIT in 113 ITR 84(SC) and in the case of CIT Vs. Sterling foods in 237 ITR 579(SC) and judgement of jurisdictional High Court in the case of CIT Vs. Menon Impex P Ltd., in 259 ITR 403 (Mad.). Further, ld. Assessing Officer was of the opinion that there was no direct nexus between the interest income and interest paid by the assessee for which the assessee also not objected. Therefore, the AO disallowed 20% of the ITA Nos.2732 & 2733/16 :- 12 -: interest earned on deposit of `63,52,015/-. Aggrieved by the order of ld. Assess…

Vesuvius India Limited, Kolkata vs. DCIT, Circle - 10, Kolkata

ITA 614/KOL/2011[2004-05]Status: DisposedITAT Kolkata28 Dec 2016AY 2004-05
For Appellant: Shri Soumen Adak, FCAFor Respondent: Shri Rajat Kumar Kureel, JCIT Sr. DR
Section 143(3)Section 80Section 80I

…/- as the appellant had been appointed as the non-exclusive agent by some of its foreign principals and its associates in respect of sell of common intended to cover sources not beyond the first degree. In the case of CIT Vs. Menon lmpex Pvt. Ltd. reported in 259 ITR 403 (Mad), it was held by the Hon'ble Madras High Court that the interest received by the assessee was on deposits made by it in the banks. It is that deposit which is the source of income. The mere fact that the deposits made was for the purpose of obtaining letters of credit which in turn used for the purpose of business of the Industrial Undertaki…

Vesuvius India Limited, Kolkata vs. DCIT, Circle - 10, Kolkata

ITA 613/KOL/2011[2003-04]Status: DisposedITAT Kolkata28 Dec 2016AY 2003-04
For Appellant: Shri Soumen Adak, FCAFor Respondent: Shri Rajat Kumar Kureel, JCIT Sr. DR
Section 143(3)Section 80Section 80I

…/- as the appellant had been appointed as the non-exclusive agent by some of its foreign principals and its associates in respect of sell of common intended to cover sources not beyond the first degree. In the case of CIT Vs. Menon lmpex Pvt. Ltd. reported in 259 ITR 403 (Mad), it was held by the Hon'ble Madras High Court that the interest received by the assessee was on deposits made by it in the banks. It is that deposit which is the source of income. The mere fact that the deposits made was for the purpose of obtaining letters of credit which in turn used for the purpose of business of the Industrial Undertaki…

A.C.I.T Cir - 36, Kolkata. vs. M/S Sri Ram Commercial Co, Kolkata

In the result, Revenue’s appeal is dismissed

ITA 623/KOL/2013[2008-2009]Status: DisposedITAT Kolkata18 Nov 2016AY 2008-2009

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 10BSection 143(1)Section 143(3)Section 147Section 148

…d from’ industrial undertaking as there is no direct nexus between income and the undertaking. Therefore, such interest is not eligible for exemption u/s. 10A. I refer to the following cases upholding the above decision: 1. CIT vs. Menon Impex (P) Ltd. (Mad) 259 ITR 403 2. India Comnet International vs. ITO (Mad) 304 ITR 322 6.1.2 In view of the above discussions I dismiss ground no. 5 of the appeal and confirm the assessment made by the AO.” Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us. 17. Before us Ld. AR submitted that interest income was earned on the margin money d…

Income Tax Officer Ward-4(4), Kolkata vs. M/S Tea Propoters (India) Pvt. Ltd., Kolkata

In the result, Revenue’s appeal is dismissed

ITA 2161/KOL/2013[2002-03]Status: DisposedITAT Kolkata18 Nov 2016AY 2002-03

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 10BSection 143(1)Section 143(3)Section 147Section 148

…d from’ industrial undertaking as there is no direct nexus between income and the undertaking. Therefore, such interest is not eligible for exemption u/s. 10A. I refer to the following cases upholding the above decision: 1. CIT vs. Menon Impex (P) Ltd. (Mad) 259 ITR 403 2. India Comnet International vs. ITO (Mad) 304 ITR 322 6.1.2 In view of the above discussions I dismiss ground no. 5 of the appeal and confirm the assessment made by the AO.” Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us. 17. Before us Ld. AR submitted that interest income was earned on the margin money d…

M/S Tea Promoters (India) Pvt Ltd, Kolkata vs. D.C.I.T RG - 4, Kolkata

In the result, Revenue’s appeal is dismissed

ITA 1897/KOL/2013[2003-04]Status: DisposedITAT Kolkata18 Nov 2016AY 2003-04

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 10BSection 143(1)Section 143(3)Section 147Section 148

…d from’ industrial undertaking as there is no direct nexus between income and the undertaking. Therefore, such interest is not eligible for exemption u/s. 10A. I refer to the following cases upholding the above decision: 1. CIT vs. Menon Impex (P) Ltd. (Mad) 259 ITR 403 2. India Comnet International vs. ITO (Mad) 304 ITR 322 6.1.2 In view of the above discussions I dismiss ground no. 5 of the appeal and confirm the assessment made by the AO.” Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us. 17. Before us Ld. AR submitted that interest income was earned on the margin money d…

M/S Tea Promoters (India) Pvt. Ltd., Kolkata vs. DCIT, Circle - 4, Kolkata

In the result, Revenue’s appeal is dismissed

ITA 1841/KOL/2013[2002-03]Status: DisposedITAT Kolkata18 Nov 2016AY 2002-03

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 10BSection 143(1)Section 143(3)Section 147Section 148

…d from’ industrial undertaking as there is no direct nexus between income and the undertaking. Therefore, such interest is not eligible for exemption u/s. 10A. I refer to the following cases upholding the above decision: 1. CIT vs. Menon Impex (P) Ltd. (Mad) 259 ITR 403 2. India Comnet International vs. ITO (Mad) 304 ITR 322 6.1.2 In view of the above discussions I dismiss ground no. 5 of the appeal and confirm the assessment made by the AO.” Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us. 17. Before us Ld. AR submitted that interest income was earned on the margin money d…

DCIT, Cir-12, Kolkata vs. M/S Gujrat Nre Coke Ltd., Kolkata

In the result, the appeal filed by the revenue is dismissed

ITA 68/KOL/2014[2004-2005]Status: DisposedITAT Kolkata21 Sept 2016AY 2004-2005

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am ] Assessment Year : 2004-05 D.C.I.T., Circle-12, -Versus- M/S. Gujarat Nre Coke Ltd. Kolkata Kolkata [Pan: Aabcg 6225 H] (Appellant) (Respondent) For The Appellant : Shri G.Mallikarjuna, Cit(Dr) For The Respondent : Shri Ravi Tulsiyan, Fca Date Of Hearing : 04.08.2016 Date Of Pronouncement : 21.09.2016. Order

For Appellant: Shri G.Mallikarjuna, CIT(DR)For Respondent: Shri Ravi Tulsiyan, FCA
Section 147Section 148Section 80Section 801Section 801BSection 80ISection 80l

…ed from Industrial Undertaking. Basically, in actual, the receipts credited by the assessee on account of interest and trading of raw coal, belonged to the category of ancillary profits of the undertaking. In the case of CIT vs Menon Impex Pvt Ltd reported in 259 ITR 403 (Mad), it was held by the Hon'ble Madras High Court that the interest received by the assessee was on deposits made by it in the banks. It is that deposit which is the source of income. The mere fact that the deposits made was for the purpose of obtaining letters of credit which in turn used for the purpose of business of the Industrial Undertaki…

Addl CIT 8(3), Mumbai vs. Sulhur Mills Ltd, Mumbai

The appeal of the assessee stand partly allowed

ITA 8846/MUM/2010[2006-07]Status: DisposedITAT Mumbai01 Jan 2016AY 2006-07
For Appellant: Sh. K.S. Chokshi & Ms. M.R. Patel - ARsFor Respondent: Sh. Aarsi Prasad-DR
Section 10Section 10BSection 143(3)Section 254(1)Section 40

…submission of the assessee and the assess - ment order,the FAA held that the interest on deposit with bank for opening LOC was not derived from industrial undertaking and was not eligible for deduction u/s.10B. He referred to the case of Menon Impex Pvt. Ltd. 259 ITR 403.He also referred to the case of KK Doshi (245 ITR 849);CJ International(13SOT 280);Orchid Chemicals and Pharmaceuticals (97 ITD 277),Sovika Infotech Ltd.(19SOT412) and held that to claim deduction u/s. 10B of the Act, the income should have been derived from the export activity of the undertaking, that the AO had rightly disallowed the claim made…

Shreeji Jewellery Designs Ltd, Mumbai vs. ACIT., Cir.-8(3), Mumbai

In the result, the appeal of the assessee i

ITA 431/MUM/2013[2009-10]Status: DisposedITAT Mumbai30 Dec 2015AY 2009-10

Bench: Shri Rajendra & Shri Sanjay Gargआयकर अपील सं./Ita Nos.430 & 431/M/2013 ("नधा"रण वष" "नधा"रण वष" "नधा"रण वष" / Assessment Years: 2008-09 & 2009-10) "नधा"रण वष" M/S. Neysa Jewellery Ltd., Asst. Comm. Of Income (Ultimate Successor Of M/S. Tax, Shreeji Jewellery Designs), Circle 15(1), बनाम/Vs. बनाम बनाम बनाम Plot No.Gj-11, Seepz It Aayakar Bhavan, Andheri (East), M.K. Road, Mumbai – 400 020 Mumbai – 400 020 Pan: Aaecs 1821J (अपीलाथ"/Appellant) (""यथ"/Respondent) Present For: Assessee By : Shri I.P. Rathi, A.R. Revenue By : Shri B.S.N. Raju, D.R. सुनवाई क" तार"ख/Date Of Hearing : 12.11.2015 घोषणा क" तार"ख /Date Of Pronouncement : 30.12.2015 आदेश / O R D E R

For Appellant: Shri I.P. Rathi, A.RFor Respondent: Shri B.S.N. Raju, D.R
Section 10ASection 57

…tional 304 ITR 322, wherein the court has held that interest income has no direct nexus with the industrial undertaking and hence, was not eligible for deduction u/s 10A. The Madras High Court has followed its own judgment in the case of Menon Impex Pvt. Ltd. 259 ITR 403. This issue is also covered by the decision of the Mumbai Tribunal in the case of Tricom India Ltd. 36 SOT 302. However; with regard to the claim of setting off expenses against the said income, the AO is directed to follow the ratio of decision of the Supreme Court in the case of ACG Associated Capsules P. Ltd. cited supra, and allow interest in…

Shreeji Jewellery Designs, Mumbai vs. ACIT., Cir.-15(1), Mumbai

In the result, the appeal of the assessee i

ITA 430/MUM/2013[2008-09]Status: DisposedITAT Mumbai30 Dec 2015AY 2008-09

Bench: Shri Rajendra & Shri Sanjay Gargआयकर अपील सं./Ita Nos.430 & 431/M/2013 ("नधा"रण वष" "नधा"रण वष" "नधा"रण वष" / Assessment Years: 2008-09 & 2009-10) "नधा"रण वष" M/S. Neysa Jewellery Ltd., Asst. Comm. Of Income (Ultimate Successor Of M/S. Tax, Shreeji Jewellery Designs), Circle 15(1), बनाम/Vs. बनाम बनाम बनाम Plot No.Gj-11, Seepz It Aayakar Bhavan, Andheri (East), M.K. Road, Mumbai – 400 020 Mumbai – 400 020 Pan: Aaecs 1821J (अपीलाथ"/Appellant) (""यथ"/Respondent) Present For: Assessee By : Shri I.P. Rathi, A.R. Revenue By : Shri B.S.N. Raju, D.R. सुनवाई क" तार"ख/Date Of Hearing : 12.11.2015 घोषणा क" तार"ख /Date Of Pronouncement : 30.12.2015 आदेश / O R D E R

For Appellant: Shri I.P. Rathi, A.RFor Respondent: Shri B.S.N. Raju, D.R
Section 10ASection 57

…tional 304 ITR 322, wherein the court has held that interest income has no direct nexus with the industrial undertaking and hence, was not eligible for deduction u/s 10A. The Madras High Court has followed its own judgment in the case of Menon Impex Pvt. Ltd. 259 ITR 403. This issue is also covered by the decision of the Mumbai Tribunal in the case of Tricom India Ltd. 36 SOT 302. However; with regard to the claim of setting off expenses against the said income, the AO is directed to follow the ratio of decision of the Supreme Court in the case of ACG Associated Capsules P. Ltd. cited supra, and allow interest in…

Riviera Home Furnishing vs. Tax Range 15

The appeal is allowed in the above terms, but with no order as to costs

ITA/459/2015HC Delhi19 Nov 2015
Section 10BSection 143(2)Section 260A

…317 ITR 218, which interpreted Section 801B of the Act. Reference was also made to the decision of CIT v. Sterling Foods (1999) 237 ITR 579 (SC), which interpreted Section 80HH and the decision of the Madras High Court in CIT v. Menon Impex P Ltd. (2003) 259 ITR 403(Mad.) which interpreted Section 10A of the Act. The Karnataka High Court in CIT v. Motorola India Electronics Pvt. Ltd. (supra), after noticing the above decisions, held that “it is clear that, what is exempted is not merely the profits and gains from the export of articles but also the income from the business of the undertaking”. Specific…

M/S. A.T. Kearney India Pvt. Ltd., Gurgaon vs. ITO, New Delhi

ITA 1403/DEL/2010[2006-07]Status: DisposedITAT Delhi16 Oct 2015AY 2006-07

Bench: Shri N. K. Saini & Shri Kuldip Singh

For Appellant: Shri Satyam Sethi, AdvFor Respondent: Shri K K Jaiswal, DR
Section 10ASection 143(1)Section 234BSection 250Section 32(2)Section 56Section 56(1)Section 72(1)(i)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘A ’, NEW DELHI) BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER I.T.A. No. 1403/Del/2010 Assessment year : 2006-07 M/s. A. T. Kearney India Pvt. Ltd., Vs. ITO, Ward 1(1), 14th Floor, Tower D, New Delhi Global Business Park, Gurgaon - 122002 GIR / PAN:AADCA1436G (Appellant) (Respondent) Appellant by : Shri Satyam Sethi, Adv. Respondent by : Shri K K Jaiswal, DR Date of hearing : 30.09.2015 Date of pronouncement : 16.10.2015 ORDER PER KULDIP SINGH, JM: The appellant M/s. A. T. Kearney India Pvt. Ltd., by filing the present appeal…

M/S Thomson Press (India) Ltd vs. Commissioner of Income Tax- II

ITA - 124 / 2003HC Delhi09 Oct 2015
For Appellant: Mr SalilAggarwal, Mr Ravi Pratap Mall andFor Respondent: Mr Rohit Madan, Senior Standing counsel with
Section 10ASection 260ASection 263Section 80H

…ITA Nos. 83/2003 & 124/2003 Page 1 of 32 IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 09.10.2015 + ITA 83/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent AND + ITA 124/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent Advocates who appeared in these cases: For the Appellant : Mr SalilAggarwal, Mr Ravi Pratap Mall and Mr S. Krishnan. For the Respondent : Mr Rohit Madan, Senior Standing…

M/S Thomson Press (India) Ltd vs. Commissioner of Income Tax -II

ITA - 83 / 2003HC Delhi09 Oct 2015
For Appellant: Mr SalilAggarwal, Mr Ravi Pratap Mall andFor Respondent: Mr Rohit Madan, Senior Standing counsel with
Section 10ASection 260ASection 263Section 80H

…ITA Nos. 83/2003 & 124/2003 Page 1 of 32 IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 09.10.2015 + ITA 83/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent AND + ITA 124/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent Advocates who appeared in these cases: For the Appellant : Mr SalilAggarwal, Mr Ravi Pratap Mall and Mr S. Krishnan. For the Respondent : Mr Rohit Madan, Senior Standing…

Thomson Press (India) Ltd vs. Commissioner of Income Tax-II

ITA/83/2003HC Delhi09 Oct 2015
For Appellant: Mr SalilAggarwal, Mr Ravi Pratap Mall andFor Respondent: Mr Rohit Madan, Senior Standing counsel with
Section 10ASection 260ASection 263Section 80H

…ITA Nos. 83/2003 & 124/2003 Page 1 of 32 IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 09.10.2015 + ITA 83/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent AND + ITA 124/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent Advocates who appeared in these cases: For the Appellant : Mr SalilAggarwal, Mr Ravi Pratap Mall and Mr S. Krishnan. For the Respondent : Mr Rohit Madan, Senior Standing…

Thomson Press (India) Ltd vs. Commissioner of Income Tax-II

ITA/124/2003HC Delhi09 Oct 2015
For Appellant: Mr SalilAggarwal, Mr Ravi Pratap Mall andFor Respondent: Mr Rohit Madan, Senior Standing counsel with
Section 10ASection 260ASection 263Section 80H

…ITA Nos. 83/2003 & 124/2003 Page 1 of 32 IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 09.10.2015 + ITA 83/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent AND + ITA 124/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent Advocates who appeared in these cases: For the Appellant : Mr SalilAggarwal, Mr Ravi Pratap Mall and Mr S. Krishnan. For the Respondent : Mr Rohit Madan, Senior Standing…

Thomson Press (India) Ltd vs. Commissioner of Income Tax-II

ITA-124/2003HC Delhi09 Oct 2015
For Appellant: Mr SalilAggarwal, Mr Ravi Pratap Mall andFor Respondent: Mr Rohit Madan, Senior Standing counsel with
Section 10ASection 260ASection 263Section 80H

…ITA Nos. 83/2003 & 124/2003 Page 1 of 32 IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 09.10.2015 + ITA 83/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent AND + ITA 124/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent Advocates who appeared in these cases: For the Appellant : Mr SalilAggarwal, Mr Ravi Pratap Mall and Mr S. Krishnan. For the Respondent : Mr Rohit Madan, Senior Standing…

Thomson Press (India) Ltd vs. Commissioner of Income Tax-II

ITA-83/2003HC Delhi09 Oct 2015
For Appellant: Mr SalilAggarwal, Mr Ravi Pratap Mall andFor Respondent: Mr Rohit Madan, Senior Standing counsel with
Section 10ASection 260ASection 263Section 80H

…ITA Nos. 83/2003 & 124/2003 Page 1 of 32 IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 09.10.2015 + ITA 83/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent AND + ITA 124/2003 THOMSON PRESS (INDIA) LTD. .....Appellant versus COMMISSIONER OF INCOME TAX-II ..... Respondent Advocates who appeared in these cases: For the Appellant : Mr SalilAggarwal, Mr Ravi Pratap Mall and Mr S. Krishnan. For the Respondent : Mr Rohit Madan, Senior Standing…

K S Venkatesh vs. The Deputy Commissioner of Income Tax Central

ITA/416/2009HC Karnataka03 Jul 2015

Bench: ARAVIND KUMAR,VINEET SARAN

Section 143(2)Section 143(3)Section 154Section 260Section 72

…1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 3RD DAY OF JULY, 2015 PRESENT THE HON'BLE MR. JUSTICE VINEET SARAN AND THE HON’BLE MR. JUSTICE ARAVIND KUMAR ITA NO.416/2009 BETWEEN: K.S.VENKATESH NO.29, WEST PARK ROAD MALLESWARAM BENGALURU-560 010 ..APPELLANT (BY SRI.A.SHANKAR & SRI.M.LAVA, ADVOCATES) AND: THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1(3), CENTRAL REVENUE BUILDINGS QUEENS ROAD, BENGALURU-560001 ..RESPONDENT (BY SRI.K.V.ARAVIND, ADVOCATE) THIS ITA IS FILED UNDER SEC…