CIT v. Refrigeration & Allied Industries Ltd.

Commisioner of Income Tax vs. M/s. Oswal Agro Mills Ltd

…assessment year, the assessee would not be denied the depreciation. This was so discussed and restated, after taking stock of various judgments, by a Division Bench of this Court in Commissioner of Income Tax Vs. Refrigeration and Allied Industries Ltd. [247 ITR 12 (Del.)] In that case, the assessee owned a cold storage at Karnal. The machinery installed, was not put to use during the whole of the previous year. The non-user was on account of the fact that there was very weak crop of potatoes available in the season and 2010:DHC:6288-DB potatoes did not come from the hirers in the cold storage. Th…

Commissioner of Income Tax vs. Yamaha Motor India Pvt. Ltd

…carded machinery}. 2009:DHC:3339-DB ITA No. 203/2009 & ITA No. 60/2009 Page 5 7. On the aspect of passive user, there are two decisions of two Division Benches of this Court in the cases reported as CIT Vs. Refrigeration & Allied Industries Ltd., 247 ITR 12 and Capital Bus Services vs. CIT, 123 ITR 404. In this view of the matter, we need not refer the judgments of any other Court as we are bound by the earlier judgments of this Court. In fact, we also agree with the ratio of both the decisions which hold that as long as the machinery is available for use, though not actually used, it falls with…

The Commissioner of Income Tax -V vs. Panacea Biotech Ltd

…ab Chand Aggarwal vs. Commissioner of Income Tax, 267 ITR 768. However, since there are judgments of two Division 2009:DHC:2928-DB ITA 422/2007 Page 3 Benches of this Court in the case reported as CIT Vs. Refrigeration & Allied Industries Ltd., 247 ITR 12 and Capital Bus Services vs. CIT, 123 ITR 404, we would be bound by the same. In the case of Refrigeration & Allied Industries Ltd. it had been held by this Court that the expression “used for the purpose of business” includes passive user of the assets in the business. It was held that the asset cannot be said to be not used when the same i…

Commissioner of Income Tax vs. Yamaha Motor India P.Ltd

…its chargeable to tax on the aspect of discarded machinery).  7. On the aspect of passive user, there are two decisions of two Division Benches of this Court in the cases reported as CIT Vs. Refrigeration & Allied Industries Ltd., 247 ITR 12 and Capital Bus Services vs. CIT, 123 ITR 404. In this view of the matter, we need not refer the judgments of any other Court as we are bound by the earlier judgments of this Court. In fact, we also agree with the ratio of both the decisions which hold that as long as the machinery is available for use, though not actually used, it falls within th…

Commissioner of Income Tax vs. Insilco Ltd

In the result, the question of law framed by us is answered in favour

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred To As The „Cit(A)‟] Allowing Deduction On Account Of Provision Made By

…Road Transport Corporation; (2002) 253 ITR 303 (P&H), CIT vs Southern Petro Chemical Industries Corporation Ltd; (2007) 292 ITR 362 (Mad), Capital Bus Service (P.) Ltd vs CIT; (1980) 123 ITR 404 (Del), CIT vs Refrigeration & Allied Industries Ltd; (2001) 247 ITR 12 (Del) and lastly CIT vs Swarup Vegetable Products India Ltd; (2005) 277 ITR 60(All). 15. The learned counsel for the assessee also relied upon the revised Accounting Standard (AS) 2 on „Valuation Of Inventories‟ along with Accounting Standard (AS) 10 on „Accounting For Fixed Assets‟ to buttress his argument that the emergency spares in iss…

Commissioner of Income Tax-IV, New Delhi vs. Insilco Limited

In the result, the question of law framed by us is answered in favour

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred 2009:Dhc:678-Db

…Road Transport Corporation; (2002) 253 ITR 303 (P&H), CIT vs Southern Petro Chemical Industries Corporation Ltd; (2007) 292 ITR 362 (Mad), Capital Bus Service (P.) Ltd vs CIT; (1980) 123 ITR 404 (Del), CIT vs Refrigeration & Allied Industries Ltd; (2001) 247 ITR 12 (Del) and lastly CIT vs Swarup Vegetable Products India Ltd; (2005) 277 ITR 60(All). 15. The learned counsel for the assessee also relied upon the revised Accounting Standard (AS) 2 on „Valuation Of Inventories‟ along with Accounting Standard (AS) 10 on „Accounting For Fixed Assets‟ to buttress his argument that the emergency spares in iss…

Commissioner of Income Tax-IV, New Delhi vs. Insilco Limited

In the result, the question of law framed by us is answered in favour

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred 2009:Dhc:679-Db

…Road Transport Corporation; (2002) 253 ITR 303 (P&H), CIT vs Southern Petro Chemical Industries Corporation Ltd; (2007) 292 ITR 362 (Mad), Capital Bus Service (P.) Ltd vs CIT; (1980) 123 ITR 404 (Del), CIT vs Refrigeration & Allied Industries Ltd; (2001) 247 ITR 12 (Del) and lastly CIT vs Swarup Vegetable Products India Ltd; (2005) 277 ITR 60(All). 15. The learned counsel for the assessee also relied upon the revised Accounting Standard (AS) 2 on „Valuation Of Inventories‟ along with Accounting Standard (AS) 10 on „Accounting For Fixed Assets‟ to buttress his argument that the emergency spares in iss…

Commissioner of Income Tax vs. Insilco Limited

In the result, the question of law framed by us is answered in favour

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred 2009:Dhc:678-Db

…Road Transport Corporation; (2002) 253 ITR 303 (P&H), CIT vs Southern Petro Chemical Industries Corporation Ltd; (2007) 292 ITR 362 (Mad), Capital Bus Service (P.) Ltd vs CIT; (1980) 123 ITR 404 (Del), CIT vs Refrigeration & Allied Industries Ltd; (2001) 247 ITR 12 (Del) and lastly CIT vs Swarup Vegetable Products India Ltd; (2005) 277 ITR 60(All). 15. The learned counsel for the assessee also relied upon the revised Accounting Standard (AS) 2 on „Valuation Of Inventories‟ along with Accounting Standard (AS) 10 on „Accounting For Fixed Assets‟ to buttress his argument that the emergency spares in iss…

Commissioner of Income Tax vs. Insilco Ltd

In the result, the question of law framed by us is answered in favour

Bench: The Tribunal Against The Order Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred 2009:Dhc:679-Db

…Road Transport Corporation; (2002) 253 ITR 303 (P&H), CIT vs Southern Petro Chemical Industries Corporation Ltd; (2007) 292 ITR 362 (Mad), Capital Bus Service (P.) Ltd vs CIT; (1980) 123 ITR 404 (Del), CIT vs Refrigeration & Allied Industries Ltd; (2001) 247 ITR 12 (Del) and lastly CIT vs Swarup Vegetable Products India Ltd; (2005) 277 ITR 60(All). 15. The learned counsel for the assessee also relied upon the revised Accounting Standard (AS) 2 on „Valuation Of Inventories‟ along with Accounting Standard (AS) 10 on „Accounting For Fixed Assets‟ to buttress his argument that the emergency spares in iss…

Commissioner of Income Tax vs. Saraya Industries Ltd

The appeal is dismissed with costs

Bench: HON'BLE MR. JUSTICE MADAN B. LOKUR,HON'BLE MR. JUSTICE V.B. GUPTA

…* HIGH COURT OF DELHI : NEW DELHI + ITA No. 571 of 2007 Judgment reserved on: January 4, 2008 % Judgment delivered on: January 11, 2008 The Commissioner of Income Tax (Central) New Delhi ...Appellant Through Mr. R.D. Jolly, Advocate Versus Saraya Industries Ltd. 11, Panchsheel Park Shopping Centre New Delhi ...Respondent Through Mr. Krishan Mahajan with Mr. K. Sampath, Advocates Coram: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE V.B. GUPTA 1. Whether the Reporters of local papers may be allowed to see the judgment? Yes 2. To be referred to Reporter or…