CIT v. Orissa Cement Ltd.

ACIT, Moradabad vs. M/S. Jubilant Organosyes Ltd., Uttar Pradesh

The appeal is dismissed

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

…d which cannot be sold to any third person will qualify for deduction under Section 80-IA of Income Tax Act, 1961?. The honourable High Court answered same as under:- “11. A similar issue was raised before Delhi High Court in CIT Vs. Orissa Cement Ltd. [2002] 254 ITR 412 (Delhi), where deduction under Section 80-I was claimed on profits derived from captive consumption of limestone excavated from mines and thereafter used for manufacture of cement in plant of assessee. Revenue‟s submission that one cannot earn profit by indulging in business with oneself, was rejected to negate claim. Division Bench relying on Ta…

ACIT, Moradabad vs. M/S Jubliant Organosys Ltd., Uttar Pradesh

The appeal is dismissed

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

…d which cannot be sold to any third person will qualify for deduction under Section 80-IA of Income Tax Act, 1961?. The honourable High Court answered same as under:- “11. A similar issue was raised before Delhi High Court in CIT Vs. Orissa Cement Ltd. [2002] 254 ITR 412 (Delhi), where deduction under Section 80-I was claimed on profits derived from captive consumption of limestone excavated from mines and thereafter used for manufacture of cement in plant of assessee. Revenue‟s submission that one cannot earn profit by indulging in business with oneself, was rejected to negate claim. Division Bench relying on Ta…

Jubilant Organosys Ltd., Noida vs. Addl. CIT, Moradabad

The appeal is dismissed

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

…d which cannot be sold to any third person will qualify for deduction under Section 80-IA of Income Tax Act, 1961?. The honourable High Court answered same as under:- “11. A similar issue was raised before Delhi High Court in CIT Vs. Orissa Cement Ltd. [2002] 254 ITR 412 (Delhi), where deduction under Section 80-I was claimed on profits derived from captive consumption of limestone excavated from mines and thereafter used for manufacture of cement in plant of assessee. Revenue‟s submission that one cannot earn profit by indulging in business with oneself, was rejected to negate claim. Division Bench relying on Ta…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

…on following decisions wherein it has been held that deduction under section 80IA cannot be denied on the ground that the power was captively consumed by the assessee and for that purpose market value of power is to be adopted: i) CIT vs. Orissa Cement Ltd.: 254 ITR 412 (Del) ii) CIT vs. Dalmia Dadri Cement Ltd.: 263 ITR 364 (Del) iii) West Coast Paper Mills Ltd V. JCIT: 100 TTJ 833 (Mum) iv) CIT vs. Standard Motor Products Ltd.: 131 ITR 300 (Mad) v) Ahmedabad Mfg. & Calico Printing Co. Ltd.‘s case: 162 ITR 760 (Guj) vi) CIT vs. Chitram and Co. Pvt. Ltd.: 191 ITR 96 (Mad) vii) DCM Shriram Consolidated Limited: 3…

DCIT, New Delhi vs. M/S K.R. Pulp & Papers Ltd, New Delhi

Bench: Shri I.C. Sudhir & Shri L.P. Sahu Assessment Year: 2009-10 Dcit, Vs. K.R. Pulp & Papers Ltd., Circle 5(1), 304- Roots Tower, New Delhi. New Delhi. (Pan: Aaack5861C) (Appellant) (Respondent) Assessee By: Ved Jain, Ca Department By: Ms. Richa Rastogi, Sr. Dr Date Of Hearing : 15 .10.2015 Date Of Pronouncement: 13 :01.2016 Order Per I.C. Sudhir:The Revenue Has Questioned First Appellate Order On The Following Grounds: 1. Whether In The Facts & Circumstances Of The Case, The Learned Cit(Appeals) Was Justified In Allowing The Deduction Of Rs.3,88,42,025 U/S. 80Ia Ignoring The Findings Of The A.O. That Assessee Has Not Earned Any Actual Profit In The Power Unit ? 2. Whether In The Facts & Circumstances Of The Case, The Learned Cit(Appeals) Was Justified In Accepting The Formula Of Cost In The Ratio Of Energy Instead Of Cost In The Ratio Of Steam Pressure As Adopted By The A.O.? 3. Whether In The Facts & Circumstances Of The Case, The Learned Cit(Appeals) Was Justified In Accepting The Efficiency Of 85 To 86% Instead Of Further Reduction Of 15% By The A.O. On The Ground That Ideal Condition Rarely Exist & Even If So It Will Not Be Throughout The Year?

…- products Ltd. Vs. ACIT – 238 CTR (Mad.) 454 holding that the assessee is entitled to deduction under sec. 80IA in respect of notional income from generation of electricity which was captively consumed by itself. In the case of CIT vs. Orissa Cement Ltd. – 254 ITR 412 (Del.), the assessee had carried on mining operations of lime stone for the manufacture of cement. The first and second appellate authority found that the production of lime stone was done at a stage for the purpose of manufacture of cement and that it was possible, from the audited statement, to compute the profits on the basis of transfer of…

Commissioner of Income Tax vs. M/S Orient Abrassive Ltd

The appeals are disposed of

…e eligible undertaking because of proximity and close connection between the eligible undertaking and the persons to whom goods and services were supplied. 11. A similar issue was raised before the Delhi High Court in CIT Vs. Orissa Cement Ltd. [2002] 254 ITR 412 (Delhi), where deduction under Section 80-I was claimed on profits derived from captive consumption of limestone excavated from mines and thereafter used 2014:DHC:3608-DB ITA 991/2010 + connected Page 9 of 17 for manufacture of cement in the plant of the assessee. Reven…

The Commissioner of Income Tax vs. M/S Dcm Shriram Consolidated L

In the result, the appeal is dismissed

Bench: HON'BLE MR. JUSTICE BADAR DURREZ AHMED,HON'BLE MR. JUSTICE RAJIV SHAKDHER

…Supreme Court in the case of Tata Iron & Steel Ltd (supra) has been applied by it in a later decision entitled Textile Machinery Corporation Ltd. v. CIT, West Bengal :107 ITR 195(SC) as also, by a Division Bench of this Court in CIT v. Orissa Cement Ltd :254 ITR 412 (Del). 12. In view of the ratio of the judgments of the Supreme Court referred to above, i.e., Tata Iron & Steel Ltd (supra), Textile Machinery Corporation Ltd (supra), as well as, that of the Division Bench of this Court in Orissa Cement (supra) it is quite evident that assessee‘s CPPs can as a matter of principle derive profits which is…