What is CIT v. Sterling Foods authority for?

Income eligible for profit-linked deductions under sections like 80-IC or 10B must have a direct nexus to the eligible business activity or be derived from the industrial undertaking itself, and not merely attributable to it or arising from a post-manufacturing event.

How many judgments cite CIT v. Sterling Foods?

311 judgments on BharatTax cite CIT v. Sterling Foods (237 ITR 579), spanning 2007 to 2026.

Which sections of the Income Tax Act does CIT v. Sterling Foods come up under?

It is most often cited in judgments turning on Section 143(3), Section 115JB, Section 80IB, Section 14A, Section 37(1), Section 80IC.

CIT v. Sterling Foods (237 ITR 579)

NARAYAN INDUSTRIES vs. ACIT CIRCLE 60(1) NEW DELHI

Appeal is partly allowed

ITA/489/2022HC Delhi12 Feb 2026

Bench: HON'BLE MR. JUSTICE DINESH MEHTA,HON'BLE MR. JUSTICE VINOD KUMAR

Section 80

…ded that the first question stands decided by Hon’ble the Supreme Court against the assessee in the case of Liberty India v. Commissioner of Income-tax reported in [2009] 317 ITR 218 (SC) and Commissioner of Income-tax v. Sterling Foods reported in [1999] 237 ITR 579 (SC). 5. He however submitted that even if the aforesaid question is decided against the appellant and it is held that the duty drawback has no nexus and co-relation with the industrial undertaking, the appellant-assessee alternatively contends the excise and customs duties, which it had paid while purchasing the raw materials is required…

DEPUTY COMMISSIONER OF INCOME TAX 1(1)(2), MUMBAI vs. HINDUSTAN UNILEVER LIMITED, MUMBAI

ITA 929/MUM/2018[2004-05]Status: DisposedITAT Mumbai30 Jan 2026AY 2004-05

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nishant ThakkarFor Respondent: Shri Ajay Chandra, CIT-DR

Section 10BSection 145ASection 14ASection 250Section 80Section 801BSection 80H

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA No.1041/MUM/2018 Assessment Year : 2004-05 Hindustan Unilever Ltd. Unilever House B.D. Sawant Marg, Chakala Andheri (E), Mumbai – 400099 PAN: AAACH1004N Appellant v/s Deputy Commissioner of Income Tax - 1(1)(1), Aayakar Bhavan, Mumbai – 400020 Respondent ITA No.929/MUM/2018 Assessment Year : 2004-05 Deputy Commissioner of Income Tax, 1(1)(2), 579, Aayakar Bhavan, M.K. Road, Mumbai – 400020 Appellant v/s M/s. Hindustan Unilever Ltd. 165/166, Backbay Reclamation, Mumb…

DCIT, NEW DELHI vs. M/S AMERICAN EXPRESS (INDIA) PVT. LTD.,, NEW DELHI

In the result, cross appeals are partly allowed

ITA 4295/DEL/2009[2003-04]Status: DisposedITAT Delhi26 Nov 2025AY 2003-04

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishraआअसं.4295/िद"ी/2009(िन.व. 2003-04) Deputy Commissioner Of Income Tax, Circle 1(1), R. No. 390, Central Revenue Building, ...... अपीलाथ"/Appellant New Delhi 110002 बनाम Vs. American Express (India) P. Ltd., First Floor, Mercantile House, 15, Kasturba Gandhi Marg, New Delhi 110001 ..... "ितवादी/Respondent Pan: Aaaca-8163-F आअसं.4240/िद"ी/2009(िन.व. 2003-04) American Express (India) P. Ltd., First Floor, Mercantile House, 15, Kasturba Gandhi Marg, New Delhi 110001 ...... अपीलाथ"/Appellant Pan: Aaaca-8163-F बनाम Vs. Joint Commissioner Of Income Tax, Circle 1(1), Central Revenue Building, ..... "ितवादी/Respondent New Delhi अपीलाथ" "ारा/ Appellant By : Shri Nishank Vashitath, Advocate "ितवादी"ारा/Respondent By : Ms. Monika Singh, Cit(Dr) सुनवाई क" ितिथ/ Date Of Hearing : 17/11/2025 घोषणा क" ितिथ/ Date Of Pronouncement : : 26/11/2025

For Appellant: Shri Nishank Vashitath, AdvocateFor Respondent: Ms. Monika Singh, CIT(DR)

Section 10ASection 10BSection 80H

…me/profit i.e. eligible for deduction u/s. 10B(1) of the Act should have direct nexus to the export business activity of the undertaking. The ld. DR in support of her submissions placed reliance on the decisions rendered in the case of CIT vs. Sterling Foods, 237 ITR 579 (SC) and Liberty India Ltd. vs. CIT, 317 ITR 218 (SC). 5. Shri Nishank Vashitath, appearing on behalf of the assessee submitted that during the period relevant to assessment year under appeal, the assessee had received an interest of Rs.1,27,741/- on the loans given to employees. The assessee has netted of said interest income against the interes…

AMERICAN EXPRESS (INDIA) PVT. LTD.,,NEW DELHI vs. JCIT, NEW DELHI

In the result, cross appeals are partly allowed

ITA 4240/DEL/2009[2003-04]Status: DisposedITAT Delhi26 Nov 2025AY 2003-04

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishraआअसं.4295/िद"ी/2009(िन.व. 2003-04) Deputy Commissioner Of Income Tax, Circle 1(1), R. No. 390, Central Revenue Building, ...... अपीलाथ"/Appellant New Delhi 110002 बनाम Vs. American Express (India) P. Ltd., First Floor, Mercantile House, 15, Kasturba Gandhi Marg, New Delhi 110001 ..... "ितवादी/Respondent Pan: Aaaca-8163-F आअसं.4240/िद"ी/2009(िन.व. 2003-04) American Express (India) P. Ltd., First Floor, Mercantile House, 15, Kasturba Gandhi Marg, New Delhi 110001 ...... अपीलाथ"/Appellant Pan: Aaaca-8163-F बनाम Vs. Joint Commissioner Of Income Tax, Circle 1(1), Central Revenue Building, ..... "ितवादी/Respondent New Delhi अपीलाथ" "ारा/ Appellant By : Shri Nishank Vashitath, Advocate "ितवादी"ारा/Respondent By : Ms. Monika Singh, Cit(Dr) सुनवाई क" ितिथ/ Date Of Hearing : 17/11/2025 घोषणा क" ितिथ/ Date Of Pronouncement : : 26/11/2025

For Appellant: Shri Nishank Vashitath, AdvocateFor Respondent: Ms. Monika Singh, CIT(DR)

Section 10ASection 10BSection 80H

…me/profit i.e. eligible for deduction u/s. 10B(1) of the Act should have direct nexus to the export business activity of the undertaking. The ld. DR in support of her submissions placed reliance on the decisions rendered in the case of CIT vs. Sterling Foods, 237 ITR 579 (SC) and Liberty India Ltd. vs. CIT, 317 ITR 218 (SC). 5. Shri Nishank Vashitath, appearing on behalf of the assessee submitted that during the period relevant to assessment year under appeal, the assessee had received an interest of Rs.1,27,741/- on the loans given to employees. The assessee has netted of said interest income against the interes…

DCIT, NEW DELHI vs. M/S. VODAFONE ESSAR DIGILINK LTD., NEW DELHI

ITA 1158/DEL/2015[2010-11]Status: DisposedITAT Mumbai14 Oct 2025AY 2010-11

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI OMKARESHWAR CHIDARA (Accountant Member)

For Appellant: Shri Ketan Ved & Shri Ninad PatadeFor Respondent: Shri Pankaj Kumar

Section 143(1)Section 143(3)Section 144C(1)Section 144C(5)Section 92C

…sion of the assessee. It has been observed by the courts that the words 'derived from' are narrower in scope than the words 'attributable to as held in Cambay Electric Supply Industrial Co. Ltd. (1978) 113 ITR 84 (SC). Further, in CIT v. Sterling Foods (1999) 237 ITR 579 (SC), the Apex Court has held that unless the source of income is from an industrial undertaking. such income cannot be regarded as derived from an industrial undertaking. Where the nexus between the profits and gains and the industrial undertaking is not direct but incidental, such income cannot be regarded as having been derived from industrial…

VODAFONE DIGILINK LIMITED,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME-TAX, NEW DELHI

ITA 1073/DEL/2015[2010-11]Status: DisposedITAT Mumbai14 Oct 2025AY 2010-11

Section 143(1)Section 144C(1)Section 144C(5)Section 92C

…of the\nassessee. It has been observed by the courts that the\nwords 'derived from' are narrower in scope than the words\n'attributable to as held in Cambay Electric Supply\nIndustrial Co. Ltd. (1978) 113 ITR 84 (SC). Further, in CIT\nv. Sterling Foods (1999) 237 ITR 579 (SC), the Apex\nCourt has held that unless the source of income is from an\nindustrial undertaking. such income cannot be regarded as\nderived from an industrial undertaking. Where the nexus\nbetween the profits and gains and the industrial\nundertaking is not direct but incidental, such income\ncannot be regarded as having been derived from indu…

ACIT (CIR.) - 6(1)(2), MUMBAI vs. BHANDAR POWER LTD., MUMBAI

In the result, appeal of the Revenue is dismissed

ITA 1908/MUM/2018[2013-14]Status: DisposedITAT Mumbai13 Oct 2025AY 2013-14

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2013-14 Assistant Commissioner Of Bhandar Power Ltd. Income Tax, 14Th Floor, Essar House, Circle 6(1)(2), 11, K. K. Marg, Mahalaxmi, Vs. Mumbai Mumbai - 400034 (Pan: Aaacb6693B) (Appellant) (Respondent) Present For: Assessee : Shri Vijay Mehta, Fca & Shri Tarang Mehta, Advocate Revenue : Shri Satyaprakash R. Singh, Cit Dr Date Of Hearing : 29.07.2025 Date Of Pronouncement : 13.10.2025 O R D E R Per Girish Agrawal: This Appeal Filed By The Revenue Is Against The Order Of Ld. Cit(A), Delhi, Vide Order Dated 25.01.2018 Passed Against The Assessment Order By Ito 6(1)(4), Mumbai, U/S. 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”), Dated 20.12.2016, For Assessment Year 2013-14. 2. Grounds Taken By The Revenue Are Reproduced As Under: 1. On The Facts & In The Circumstances Of The Case & In Law, The Cit(A) Is Not Justified In Deleting The Disallowance Of Deduction U/S 80Ia Of The Income Tax Act Of Rs. 203,13,43,740/-Without Considering The Fact That The Provisions Of Section 801A(10) Is Clearly Attracted In This Case Hence The Assessee Is Not Eligible For Claiming Deduction U/S 801A Of The Income Tax Act.

For Appellant: Shri Vijay Mehta, FCA and Shri Tarang Mehta, AdvocateFor Respondent: Shri Satyaprakash R. Singh, CIT DR

Section 143(3)Section 801ASection 801A(10)Section 80I

…and thus, the said income could not be said to be derived from the industrial undertaking. Co- ordinate Bench while dealing with the issue, which is similar to the case before us, delve into the judicial precedents in the case of CIT vs. Sterling Foods [1999] 237 ITR 579 (SC), Orissa State Warehousing Corporation vs. CIT [1999] 237 ITR 589 (SC) and allowed the claim of the assessee. 9.8. Considering the above judicial precedents, we note in the present case that assessee has set up industrial undertaking for generation and sale of power and it is an undisputed fact that it is not engaged in any other business ac…

M/S ALLAHDAD TANNERY,KANPUR vs. DY. COMMISSIONER OF INCOME TAX-I, KANPUR

ITA 620/LKW/2016[2004-05]Status: DisposedITAT Lucknow20 Aug 2025AY 2004-05

Section 143(1)Section 143(2)Section 801BSection 80HSection 80ISection 8O

…back and DEPB entitlements and only on the balance amount of profits and gains a business at all available with the assesses should be claimed deduction u/s 80IB. The A.O. was taking the support of Hon'ble Apex Court in the case of CIT Vs Sterlin: Foods 1999 237 ITR 579, it is held that the following principles: "The word "derive" is usually by the word "from", and it means: get, to trace from a source; arise from, originate in; show the origin or formation of". The source of import entitlements could not be said to be the industrial undertaking of the assessee. The source of the import entitlements could only b…

HUDCO LTD. (HOUSING & URBAN DEVELOPMENT CORPORATION LTD),NEW DELHI vs. ADDL. CIT, SPECIAL RANGE-4, NEW DELHI

The appeal of the assessee is partly allowed for statistical

ITA 7218/DEL/2018[2015-16]Status: DisposedITAT Delhi31 Jul 2025AY 2015-16

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandra

For Appellant: Shri Gagan Kumar, AdvFor Respondent: Shri Dayainder Singh Sidhu, CIT-DR

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 3305/DEL/2017 [A.Y. 2012-13] ITA No. 1954/DEL/2018 [A.Y. 2014-15] ITA No. 7218/DEL/2018 [A.Y. 2015-16] M/s Housing & Urban Dev. Corpn Ltd Vs. The Dy. C.I.T HUDCO Bhawan, Lodhi Road, Circle – 112) New Delhi New Delhi PAN – AAACH 0632 A ITA No. 3704/DEL/2017 [A.Y. 2012-13] ITA No. 2063/DEL/2018 [A.Y. 2014-15] ITA No. 6829/DEL/2018 [A.Y. 2015-16] The Addl. C.I.T Vs. M/s Housing & Urban Dev. Corpn Ltd Special Range-4 HUDCO Bhawan, Lodhi Road, New…

ADDL. CIT, SPECIAL RANGE-4, NEW DELHI vs. HUDCO LTD. (HOUSING & URBAN DEVELOPMENT CORPORATION LTD), NEW DELHI

The appeal of the assessee is partly allowed for statistical

ITA 6829/DEL/2018[2015-16]Status: DisposedITAT Delhi31 Jul 2025AY 2015-16

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandra

For Appellant: Shri Gagan Kumar, AdvFor Respondent: Shri Dayainder Singh Sidhu, CIT-DR

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 3305/DEL/2017 [A.Y. 2012-13] ITA No. 1954/DEL/2018 [A.Y. 2014-15] ITA No. 7218/DEL/2018 [A.Y. 2015-16] M/s Housing & Urban Dev. Corpn Ltd Vs. The Dy. C.I.T HUDCO Bhawan, Lodhi Road, Circle – 112) New Delhi New Delhi PAN – AAACH 0632 A ITA No. 3704/DEL/2017 [A.Y. 2012-13] ITA No. 2063/DEL/2018 [A.Y. 2014-15] ITA No. 6829/DEL/2018 [A.Y. 2015-16] The Addl. C.I.T Vs. M/s Housing & Urban Dev. Corpn Ltd Special Range-4 HUDCO Bhawan, Lodhi Road, New…

ADDL. CIT, SPECIAL RANGE- 4 , NEW DELHI vs. HUDCO LTD., NEW DELHI

The appeal of the assessee is partly allowed for statistical

ITA 2063/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Jul 2025AY 2014-15

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandra

For Appellant: Shri Gagan Kumar, AdvFor Respondent: Shri Dayainder Singh Sidhu, CIT-DR

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 3305/DEL/2017 [A.Y. 2012-13] ITA No. 1954/DEL/2018 [A.Y. 2014-15] ITA No. 7218/DEL/2018 [A.Y. 2015-16] M/s Housing & Urban Dev. Corpn Ltd Vs. The Dy. C.I.T HUDCO Bhawan, Lodhi Road, Circle – 112) New Delhi New Delhi PAN – AAACH 0632 A ITA No. 3704/DEL/2017 [A.Y. 2012-13] ITA No. 2063/DEL/2018 [A.Y. 2014-15] ITA No. 6829/DEL/2018 [A.Y. 2015-16] The Addl. C.I.T Vs. M/s Housing & Urban Dev. Corpn Ltd Special Range-4 HUDCO Bhawan, Lodhi Road, New…

HOUSING & URBAN DEVELOPMENT CORPORATION LTD,NEW DELHI vs. ADDL. CIT, RANGE-4, NEW DELHI

The appeal of the assessee is partly allowed for statistical

ITA 1954/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Jul 2025AY 2014-15

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandra

For Appellant: Shri Gagan Kumar, AdvFor Respondent: Shri Dayainder Singh Sidhu, CIT-DR

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 3305/DEL/2017 [A.Y. 2012-13] ITA No. 1954/DEL/2018 [A.Y. 2014-15] ITA No. 7218/DEL/2018 [A.Y. 2015-16] M/s Housing & Urban Dev. Corpn Ltd Vs. The Dy. C.I.T HUDCO Bhawan, Lodhi Road, Circle – 112) New Delhi New Delhi PAN – AAACH 0632 A ITA No. 3704/DEL/2017 [A.Y. 2012-13] ITA No. 2063/DEL/2018 [A.Y. 2014-15] ITA No. 6829/DEL/2018 [A.Y. 2015-16] The Addl. C.I.T Vs. M/s Housing & Urban Dev. Corpn Ltd Special Range-4 HUDCO Bhawan, Lodhi Road, New…

ADDL. CIT, NEW DELHI vs. M/S. HUDCO LTD., NEW DELHI

The appeal of the assessee is partly allowed for statistical

ITA 3704/DEL/2017[2012-13]Status: DisposedITAT Delhi31 Jul 2025AY 2012-13

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandra

For Appellant: Shri Gagan Kumar, AdvFor Respondent: Shri Dayainder Singh Sidhu, CIT-DR

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 3305/DEL/2017 [A.Y. 2012-13] ITA No. 1954/DEL/2018 [A.Y. 2014-15] ITA No. 7218/DEL/2018 [A.Y. 2015-16] M/s Housing & Urban Dev. Corpn Ltd Vs. The Dy. C.I.T HUDCO Bhawan, Lodhi Road, Circle – 112) New Delhi New Delhi PAN – AAACH 0632 A ITA No. 3704/DEL/2017 [A.Y. 2012-13] ITA No. 2063/DEL/2018 [A.Y. 2014-15] ITA No. 6829/DEL/2018 [A.Y. 2015-16] The Addl. C.I.T Vs. M/s Housing & Urban Dev. Corpn Ltd Special Range-4 HUDCO Bhawan, Lodhi Road, New…

M/S. HOUSING & URBAN DEVELOPMENT CORPORATION LTD.,NEW DELHI vs. DCIT, NEW DELHI

The appeal of the assessee is partly allowed for statistical

ITA 3305/DEL/2017[2012-13]Status: DisposedITAT Delhi31 Jul 2025AY 2012-13

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandra

For Appellant: Shri Gagan Kumar, AdvFor Respondent: Shri Dayainder Singh Sidhu, CIT-DR

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 3305/DEL/2017 [A.Y. 2012-13] ITA No. 1954/DEL/2018 [A.Y. 2014-15] ITA No. 7218/DEL/2018 [A.Y. 2015-16] M/s Housing & Urban Dev. Corpn Ltd Vs. The Dy. C.I.T HUDCO Bhawan, Lodhi Road, Circle – 112) New Delhi New Delhi PAN – AAACH 0632 A ITA No. 3704/DEL/2017 [A.Y. 2012-13] ITA No. 2063/DEL/2018 [A.Y. 2014-15] ITA No. 6829/DEL/2018 [A.Y. 2015-16] The Addl. C.I.T Vs. M/s Housing & Urban Dev. Corpn Ltd Special Range-4 HUDCO Bhawan, Lodhi Road, New…