CIT v. Sterling Foods

The Commissioner of Income Tax V vs. Nagesh Knitwears P.Ltd

…ghts for the assessment years 2000-01 and 2001-02 as covered by Section 28(iiia) to (iiic) and had computed the deduction. The Commissioner of Income Tax referred to the decision of the Supreme Court in Commissioner of Income-tax Vs. Sterling Foods (1999) 237 ITR 579 and held that under the proviso to Section 80HHC(3), the three categories mentioned in Section 28(iiia), (iiib) and (iiic) have to be included. He held that deduction under 2012:DHC:3792-DB ITA No. 591/2008 and connected matters 26 Section 80HHC has to be computed by reducing business profit by 90% from the receipts on sale of quota right…

The Commissioner of Income Tax V vs. Nagesh Knitwears P. Ltd

…ghts for the assessment years 2000-01 and 2001-02 as covered by Section 28(iiia) to (iiic) and had computed the deduction. The Commissioner of Income Tax referred to the decision of the Supreme Court in Commissioner of Income-tax Vs. Sterling Foods (1999) 237 ITR 579 and held that under the proviso to Section 80HHC(3), the three categories mentioned in Section 28(iiia), (iiib) and (iiic) have to be included. He held that deduction under 2012:DHC:3792-DB ITA No. 591/2008 and connected matters 26 Section 80HHC has to be computed by reducing business profit by 90% from the receipts on sale of quota right…

CIT vs. Le Passage to India Tours & Travels Pvt Ltd

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

…n. The entire matter has to be examined from this angle leaving aside the technical jargons and legal luances. 11. The expression “derived from” has come up for interpretation in the case of Commissioner of Income Tax Vs. Sterling Foods, Banglore, 237 ITR 579. In that case, ITA 1859/2010 Page 10 of 14 it was authoritatively pronounced by the Supreme Court that there has to be a direct nexus between the profits and gains and the industrial undertaking. This view was reiterated by the Apex Court in Hindustan Liver Ltd. Vs. CIT, 239 ITR 297. In a recent judgment pronounced…

CIT vs. Le Passage to India Tours & Travels Pvt Ltd

…n. The entire matter has to be examined from this angle leaving aside the technical jargons and legal luances. 11. The expression “derived from” has come up for interpretation in the case of Commissioner of Income Tax Vs. Sterling Foods, Banglore, 237 ITR 579. In that case, 2011:DHC:2149-DB ITA 1859/2010 Page 10 of 14 it was authoritatively pronounced by the Supreme Court that there has to be a direct nexus between the profits and gains and the industrial undertaking. This view was reiterated by the Apex Court in Hindustan Liver Ltd. Vs. CIT, 239 ITR 297. In a recent ju…

Great Eastern Exports vs. Assistant Commissioner of Income Tax

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…urt in various decisions that incomes which have first degree nexus with the eligible business would be regarded as profits and derived from the eligible business and hence would qualify for deduction under the said section (refer CIT Vs. Sterling Foods; 237 ITR 579 (SC) , Pandian Chemicals Vs. CIT: 262 ITR 278 (SC) Liberty India Ltd: 317 ITR 218 (SC)). In other words, the amount forming the basis of deduction under the said section (including sections 80-IA/IB) is an artificial figure, computed having regard to the principles laid down in the said judgments. 36. Coming specifically to the provisio…

Commissioner of Income Tax vs. Eltek Sgs P.Ltd

The appeal is dismissed

…n by the Assessee on customs duty drawback of Rs.42,92,725/- under Section 80-IB of the Act. 3. The Assessing Officer declined to grant a deduction by relying upon the decision of the Supreme Court in Commissioner of Income Tax v. Sterling Foods, [1999] 237 ITR 579. It may at one be pointed out that the decision of the Supreme Court related to import entitlement under the Export Promotion Scheme of the Government of India and on the interpretation of Section 80-HH of the Act. 4. Feeling aggrieved by the assessment order, the Assessee preferred an appeal before the Commissioner of Income Tax (Appeals)…

Suhir Engineering Co vs. Asstt. Commissionr of Income Tax

…Vikas Cash Certificates would amount to business income. The Supreme Court has considered the expression 'derived from' as used in Section 80HHC and Section 80-IA of the Income Tax Act, 1961 in Commissioner of Income Tax vs. Sterling Foods, [1999] 237 ITR 579 and Pandian Chemicals Ltd. vs. Commissioner of Income Tax, [2003] 262 ITR 278. It has been held that there is a difference between the expression 'derived from' and the expression 'attributable to'. The Tribunal was of the view, after considering these two decisions that the expression 'derived from' has a narrower connotation and…

Commissioner of Income Tax-V N vs. Damanjit Singh

…pinathan (2001) 248 ITR 449 (SC) interest on fixed deposits was held not to qualify for setting off against interest on loans borrowed. The other 2007:DHC:9-DB decisions on the same lines, in the context of Section 80HHC are CIT v. Sterling Foods (1999) 237 ITR 579 and Pandian Chemicals (2003) 262 ITR 278 (SC). In these decisions, the Hon'ble Supreme Court reiterated the nexus theory and declined to treat such interest earned as business income. Significantly, the provision of the Act involved in these cases do not contain a machinery clause similar to clause (baa) to the Explanation below sub-section…