CIT v. Sterling Foods

237 ITR 579Supreme Court of India1999#247 most cited

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.

311

judgments rely on this decision, according to BharatTax’s citation analysis of 367,518 Indian tax judgments — from 2007 to 2026.

Also referred to as

CIT v. Sterling Foods · 237 ITR 579 · section 80-IC · section 10B · profit-linked deductions · direct nexus · derived from industrial undertaking · eligible business activity · post-manufacturing event · income eligibility for deductions

Also reported as

104 Taxmann 204

Sections most often in play

Section 143(3)Section 115JBSection 80IBSection 14ASection 37(1)Section 80ICSection 92CASection 80HH
Read the full judgment

Issues it is cited on

section 80hsection 80hheligible businesssection 80ibdeduction under section 80iasection 80hhcsection 80isection 80icsection 80iadeduction u/s 80iagross total incomewritten down value

Judgments citing CIT v. Sterling Foods

Tata Chemicals Ltd, Mumbai vs. DCIT 2(2), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2692/MUM/2012[2005-06]Status: DisposedITAT Mumbai06 Jul 2022AY 2005-06

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2440/Mum./2011 ITA no.2692/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Tata Chemicals Ltd. Bombay House, Fort ……………. Appellant Mumbai 400 001 PAN – AAACT4059M v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2), Mumbai ITA no.2733/Mum./2011 ITA no.2553/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Dy. Commissioner of Income Tax ……………. Appellant Circle–2(2), Mumbai v/s Tata Chemicals Ltd. Bombay House, Fort…

DCIT 2(2), Mumbai vs. Tata Chemicals Ltd, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2553/MUM/2012[2005-06]Status: DisposedITAT Mumbai06 Jul 2022AY 2005-06

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2440/Mum./2011 ITA no.2692/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Tata Chemicals Ltd. Bombay House, Fort ……………. Appellant Mumbai 400 001 PAN – AAACT4059M v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2), Mumbai ITA no.2733/Mum./2011 ITA no.2553/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Dy. Commissioner of Income Tax ……………. Appellant Circle–2(2), Mumbai v/s Tata Chemicals Ltd. Bombay House, Fort…

DCIT 2(2), Mumbai vs. Tata Chemicals Ltd, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2733/MUM/2011[2004-05]Status: DisposedITAT Mumbai06 Jul 2022AY 2004-05

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2440/Mum./2011 ITA no.2692/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Tata Chemicals Ltd. Bombay House, Fort ……………. Appellant Mumbai 400 001 PAN – AAACT4059M v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2), Mumbai ITA no.2733/Mum./2011 ITA no.2553/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Dy. Commissioner of Income Tax ……………. Appellant Circle–2(2), Mumbai v/s Tata Chemicals Ltd. Bombay House, Fort…

Tata Chemicals Ltd, Mumbai vs. DCIT 2(3), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2440/MUM/2011[2004-05]Status: DisposedITAT Mumbai06 Jul 2022AY 2004-05

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2440/Mum./2011 ITA no.2692/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Tata Chemicals Ltd. Bombay House, Fort ……………. Appellant Mumbai 400 001 PAN – AAACT4059M v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2), Mumbai ITA no.2733/Mum./2011 ITA no.2553/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Dy. Commissioner of Income Tax ……………. Appellant Circle–2(2), Mumbai v/s Tata Chemicals Ltd. Bombay House, Fort…

Narayan Industires, New Delhi vs. ACIT, Circle- 60(1), New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 6153/DEL/2017[2014-15]Status: DisposedITAT Delhi30 Jun 2022AY 2014-15

Bench: Sh. Aakash Deep Jaindr. B. R. R. Kumar

For Appellant: Sh. Rohit Jain, Adv. &For Respondent: Sh. N. K. Bansal, Sr. DR
Section 253

…ted to manufacture or sale of the products of the undertaking and is only related to a post manufacturing event, which is not eligible for deduction under section 80-IC of the Act as per the decision of the Hon’ble Supreme Court in the case of Sterling Foods 237 ITR 579 (SC). 9. On appeal, the ld. CIT(A), vide order dated 28.07.2017 upheld the addition made by the assessing officer and held that on perusal of the policy it cannot be upheld that the consideration received on sale of focus scrip/ License is a reimbursement of cost incurred since the scrip is available only post export. It was further held that co…

Gulshan Polyols Ltd., New Delhi vs. ACIT, Circle- 10(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 4107/DEL/2017[2011-12]Status: DisposedITAT Delhi14 Jun 2022AY 2011-12

Bench: Shri Pradip Kumar Kedia & Shri Yogesh Kumar Us

For Appellant: NoneFor Respondent: Shri Mithun Shete, Sr.D.R
Section 271(1)(c)Section 80I

…it to be incidental income and thus cannot be said to be ‘derived from’ manufacture or produce of any article or thing. For holding so, the Assessing Officer relied upon the judgment rendered by the Hon’ble Supreme Court in the case of CIT vs. Sterling Foods, 237 ITR 579 (SC) wherein the Court observed that the industrial undertaking itself had to be the source of profit and the business of industrial undertaking had to directly yield that profit. The action of the Assessing Officer is clearly governed by the interpretation I.T.A. No.4107/Del/2017 3 rendered by the Hon’ble Supreme Court on expression ‘derived f…

Flex Art Foil Ltd, Mumbai vs. DCIT-CC--4(2), Mumbai

In the result, the appeals of the assessee stand dismissed

ITA 5847/MUM/2019[2011-12]Status: DisposedITAT Mumbai12 May 2022AY 2011-12

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: NoneFor Respondent: Achal Sharma
Section 132Section 132(1)Section 143(3)Section 153ASection 36(1)(iii)Section 69C

…refund as eligible for deduction u/s 80IB/80IC pertaining to eligible unit located at Sikkim. The A.O had rejected the claim of the assessee for deduction u/s 80IB/80IC after following the decision of Hon’ble Supreme Court in the case of Sterling Food Limited 237 ITR 579 (SC) wherein it is held that the profits arising on sale of import entitlements provided by the Government as incentive to promote exports could not constitute profit derived from the eligible undertaking and therefore, the same has to be excluded while computing the quantum of deduction u/s 80HH of the Act. After following the aforesaid judicial…

Flex Art Foil Limited, Mumbai vs. DCIT Dd-4(2), Mumbai

In the result, the appeals of the assessee stand dismissed

ITA 5846/MUM/2019[2010-11]Status: DisposedITAT Mumbai12 May 2022AY 2010-11

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: NoneFor Respondent: Achal Sharma
Section 132Section 132(1)Section 143(3)Section 153ASection 36(1)(iii)Section 69C

…refund as eligible for deduction u/s 80IB/80IC pertaining to eligible unit located at Sikkim. The A.O had rejected the claim of the assessee for deduction u/s 80IB/80IC after following the decision of Hon’ble Supreme Court in the case of Sterling Food Limited 237 ITR 579 (SC) wherein it is held that the profits arising on sale of import entitlements provided by the Government as incentive to promote exports could not constitute profit derived from the eligible undertaking and therefore, the same has to be excluded while computing the quantum of deduction u/s 80HH of the Act. After following the aforesaid judicial…

JCIT(OSD), Circle-1(1)(2), Ahmedabad vs. M/S. Devraj Infrastructure Ltd., Ahmedabad

In the result, all three appeals of revenue are dismissed

ITA 1607/AHD/2018[2010-11]Status: DisposedITAT Ahmedabad16 Mar 2022AY 2010-11

Bench: Ms. Suchitra Kamble & Shri Bhagirath Mal Biyanisl.

For Appellant: Shrui A.C. Shah, A.RFor Respondent: Shri Alok Kumar, CIT-DR
Section 143(3)Section 80

…served that the words “derived from” are much narrower than the words “attributable to” and the benefit of deduction is available in respect of the income of the first degree only. Placing reliance on Pandian Chemicals Ltd. 262 ITR 278 (SC) and Sterling Foods 237 ITR 53 (SC), the Ld. AO held the income of Rs. 4,70,567/- earned by the assessee may be attributable to the business of development of industrial park, but it is certainly not derived from the said business and therefore not eligible for deduction. Hence the Ld. AO disallowed the deduction in respect of other income. 16. During appellate proceeding, the…

The Deputy Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad vs. M/S. Devraj Infrastructure Ltd., Ahmedabad

In the result, all three appeals of revenue are dismissed

ITA 2441/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad16 Mar 2022AY 2012-13

Bench: Ms. Suchitra Kamble & Shri Bhagirath Mal Biyanisl.

For Appellant: Shrui A.C. Shah, A.RFor Respondent: Shri Alok Kumar, CIT-DR
Section 143(3)Section 80

…served that the words “derived from” are much narrower than the words “attributable to” and the benefit of deduction is available in respect of the income of the first degree only. Placing reliance on Pandian Chemicals Ltd. 262 ITR 278 (SC) and Sterling Foods 237 ITR 53 (SC), the Ld. AO held the income of Rs. 4,70,567/- earned by the assessee may be attributable to the business of development of industrial park, but it is certainly not derived from the said business and therefore not eligible for deduction. Hence the Ld. AO disallowed the deduction in respect of other income. 16. During appellate proceeding, the…

Tata Chemicals Ltd, Mumbai vs. DCIT 2(3), Mumbai

In the result additional ground raised by the assessee vide additional ground number 3 and ground number 5 of the appeal is allowed

ITA 2439/MUM/2011[2003-04]Status: DisposedITAT Mumbai16 Feb 2022AY 2003-04

Bench: Shri Vikas Awasthy, Jm & Shri Prashant Maharishi, Am Dy. Commissioner Of Income Tata Chemicals Limited Tax 2(3), Bombay House Aayakar Bhavan, Fort, Vs. M.K. Road, Mumbai-400 001 Mumbai-400 020 (Respondent) (Appellant) Pan No. Aaact4059M Appellant By : Shri Nitesh Joshi, Ar Respondent By : Shri Milind Chavan, Dr Date Of Hearing: 20.12.2021 Date Of Pronouncement : 16.02.2022

For Appellant: Shri Nitesh Joshi, ARFor Respondent: Shri Milind Chavan, DR
Section 41Section 80

…not ‗derived from the business of‘ the industrial undertaking. The Ld. CIT(A) in agreement with the AO relied on the decision of the Hon‘ble Supreme Court in Andaman Tata Chemicals Ltd.; AY 03-04 Timber chemicals Inds (244 ITR 204) and CIT v. Sterling Foods (237 ITR 579). Stating that the impugned sales tax incentives has its genesis in the scheme of the Government, being located in a ‗backward area‘ and not in the profits derived from the industrial undertaking per se, he upheld the action of the AO in disallowing deduction u/s 80IB in respect of sales tax incentive. In respect of fertilizer subsidy, the Ld. C…

Grasim Industries Ltd vs. Addl. CIT Range 6(3)

In the result, appeal filed by the assesse and revenue are partly allowed

ITA 4753/MUM/2004[2002-03]Status: DisposedITAT Mumbai14 Dec 2021AY 2002-03

Bench: Shri Saktijit Dey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blegrasim Industries Limited V. Addl. Cit, Range 6(3) Corporate Finance Division 5Th Floor, Room No. 505 Aditya Birla Centre “A” Wing Aayakar Bhavan 2Nd Floor, S.K. Ahire Marg, Worli Mumbai Mumbai-400025 Pan: Aaacg4464B Appellant Respondent Dy. Cit, Range 6(3), V. Grasim Industries Limited, 5Th Floor, Room No. 505, Corporate Finance Division, Aayakar Bhavan, Aditya Birla Centre, “A” Wing, Mumbai-20. 2Nd Floor, S.K. Ahire Marg Worli, Mumbai-400025 Pan: Aaacg4464B Appellant Respondent Assessee By : Shri J.D. Mistry Revenue By : Shri Sandeep Raj & Shri Vijay Kumar Menon

For Appellant: Shri J.D. MistryFor Respondent: Shri Sandeep Raj &
Section 143(3)Section 36(1)(vii)Section 43BSection 80Section 80H

…d. vs. CIT (2003) 183 CTR (SC) 99 : (2003) 262 ITR 278 (SC). However, on a reading of the judgment we find that that also deals with s. 80HH of the Act and does not lay down any principle difference from CIT vs. Sterling Foods (1999) 153 CTR (SC) 439 : (1999) 237 ITR 579 (SC). In fact, in Pandian Chemicals Ltd. (supra) reliance has been placed on Cambay Electric Supply Industrial Co. Ltd. vs. CIT 1978 CTR (SC) 50 : (1978) 113 ITR 84 (SC) and the decision seems to suggest, as we have held above, that the expression 'derived from an industrial undertaking' is a step removed from the business of the industrial under…

M/S. I-Flex Solutions Ltd, Mumbai vs. The ACIT Cir 8(2), Mumbai

In the result, appeal is dismissed

ITA 5023/MUM/2007[2003-2004]Status: DisposedITAT Mumbai12 Oct 2021AY 2003-2004

Bench: Shri Pramod Kumar, Hon’Ble & Shri Saktijit Dey, Hon’Bleassessment Year: 2003-04 Dy. Commissioner Of Income Tax- M/S Oracle Financial Services 8(2), Software Ltd. Room No. 209/216A, 2Nd Floor, (Formerly Known As M/S I-Flex Aayakar Bhavan, M.K. Road, Vs. Solutions Ltd.), Mumbai - 400020 1,Oracle Park, Off Western Express Highway, Goregaon (E), Mumbai - 400063 Pan: Aaacc1448B (Appellant) (Respondent) Assessment Year: 2003-04 M/S Oracle Financial Services Assistant Commissioner Of Software Ltd. Income Tax, (Formerly Known As I-Flex Range- 8(2), Solutions Ltd.), Vs. Mumbai Oracle Park, Off Western Express Highway, Goregaon (East), Mumbai - 400063 Pan: Aaacc1448B (Appellant) (Respondent) Assessment Year: 2004-05 M/S Oracle Financial Services Additional Commissioner Of Software Ltd. Income Tax, (Formerly Known As I-Flex Range- 8(2), Solutions Ltd.), Vs. Mumbai Oracle Park, Off Western Express Highway, Goregaon (East), Mumbai - 400063 Pan: Aaacc1448B (Appellant) (Respondent) Assessment Years: 2003-04 & 2004-05 Assessment Year: 2004-05 D.C.I.T. 8(2), M/S Oracle Financial Services Room No. 216-A, Aayakar Software Ltd. Bhavan, M.K. Road, (Formerly Known As I-Flex Mumbai - 400020 Vs. Solutions Ltd.), 399, Subhash Road, Vile Parle (East), Mumbai - 400057 Pan: Aaacc1448B (Appellant) (Respondent) Revenue By : Shri Sushil Kumar Mishra (Dr)

For Appellant: S/Shri Ajit Kumar Jain/For Respondent: Shri Sushil Kumar Mishra (DR)
Section 10A

…urces on which no deduction under section 10A can be claimed, the AO disallowed assessee’s claim of deduction under section 10A of the Act in respect of interest income. While doing so, he relied upon the following decisions:- 1. CIT vs. Sterling Foods (1999) 237 ITR 579 (SC). 2. Cambay Electronic Supply Industrial Pvt. Ltd. vs. CIT. 3. Accountancy Chemical Ltd. vs. CIT 129 taxmann.com 539 (SC). 10. Learned Commissioner (Appeals) also approved the aforesaid decision of the AO. 11. Learned Counsel for the assessee submitted, the interest income on which the assessee had claimed deduction under section 10A of the…

The DCIT 8(2), Mumbai vs. M/S. Iflex Solutions Ltd, Mumbai

In the result, appeal is dismissed

ITA 4888/MUM/2007[2003-2004]Status: DisposedITAT Mumbai12 Oct 2021AY 2003-2004

Bench: Shri Pramod Kumar, Hon’Ble & Shri Saktijit Dey, Hon’Bleassessment Year: 2003-04 Dy. Commissioner Of Income Tax- M/S Oracle Financial Services 8(2), Software Ltd. Room No. 209/216A, 2Nd Floor, (Formerly Known As M/S I-Flex Aayakar Bhavan, M.K. Road, Vs. Solutions Ltd.), Mumbai - 400020 1,Oracle Park, Off Western Express Highway, Goregaon (E), Mumbai - 400063 Pan: Aaacc1448B (Appellant) (Respondent) Assessment Year: 2003-04 M/S Oracle Financial Services Assistant Commissioner Of Software Ltd. Income Tax, (Formerly Known As I-Flex Range- 8(2), Solutions Ltd.), Vs. Mumbai Oracle Park, Off Western Express Highway, Goregaon (East), Mumbai - 400063 Pan: Aaacc1448B (Appellant) (Respondent) Assessment Year: 2004-05 M/S Oracle Financial Services Additional Commissioner Of Software Ltd. Income Tax, (Formerly Known As I-Flex Range- 8(2), Solutions Ltd.), Vs. Mumbai Oracle Park, Off Western Express Highway, Goregaon (East), Mumbai - 400063 Pan: Aaacc1448B (Appellant) (Respondent) Assessment Years: 2003-04 & 2004-05 Assessment Year: 2004-05 D.C.I.T. 8(2), M/S Oracle Financial Services Room No. 216-A, Aayakar Software Ltd. Bhavan, M.K. Road, (Formerly Known As I-Flex Mumbai - 400020 Vs. Solutions Ltd.), 399, Subhash Road, Vile Parle (East), Mumbai - 400057 Pan: Aaacc1448B (Appellant) (Respondent) Revenue By : Shri Sushil Kumar Mishra (Dr)

For Appellant: S/Shri Ajit Kumar Jain/For Respondent: Shri Sushil Kumar Mishra (DR)
Section 10A

…urces on which no deduction under section 10A can be claimed, the AO disallowed assessee’s claim of deduction under section 10A of the Act in respect of interest income. While doing so, he relied upon the following decisions:- 1. CIT vs. Sterling Foods (1999) 237 ITR 579 (SC). 2. Cambay Electronic Supply Industrial Pvt. Ltd. vs. CIT. 3. Accountancy Chemical Ltd. vs. CIT 129 taxmann.com 539 (SC). 10. Learned Commissioner (Appeals) also approved the aforesaid decision of the AO. 11. Learned Counsel for the assessee submitted, the interest income on which the assessee had claimed deduction under section 10A of the…

Macleods Pharmaceuticals Ltd, Mumbai vs. Deputy Commissioner of Income Tax 10(2)(2), Mumbai

In the result, appeal of the assessee is partly allowed as indicated above

ITA 7167/MUM/2017[2009-10]Status: DisposedITAT Mumbai14 Sept 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Ashok BansalFor Respondent: Shri Bharat Andhale
Section 115JSection 133(6)Section 143(3)Section 147Section 148Section 80I

…tributable to any other unit or the head office expenses which have no relevance to the industrial undertaking, cannot be deducted in respect of the said undertaking while computing the profits and gains of the undertaking. 11. In CIT v. Sterling Foods [1999] 237 ITR 579/104 Taxman 204 (SC); following question was considered by the Supreme Court (Page 581): “Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the receipt from the sale of import entitlements could not be included in the income of the assessee for the purpose of computing the relief under se…

M/S. Kiri Dyes and Chemicals Ltd., Ahmedabad vs. The Asstt. Commissioner of Income Tax, Circle-2(1)(2), Ahmedabad

ITA 1849/AHD/2016[2003-04]Status: DisposedITAT Ahmedabad30 Jul 2021AY 2003-04

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed

For Appellant: Shri T.P. Hemani, Sr. Advocate with Shri Parimal Sinh Parmar, A.RFor Respondent: Shri Mohd Usman, C.I.T.D.R with Shri Raj Deep Singh, Sr.D.R
Section 10BSection 143(3)Section 234ASection 80I

…he set-aside proceedings found that the other income shown by the assessee in its financial statement is not eligible for exemption under section 10B of the Act in view of the judgments of Hon’ble Supreme Court in the case of CIT vs. Sterling Food reported in 237 ITR 579 and Pandian Chemicals Ltd. vs. CIT Reported in 262 ITR 278. 3.3 Besides this, the AO was also of the opinion that the assessee is not eligible for exemption under section 10B of the Act for the reasons as detailed under: i. It was mandatory on the part of the assessee to file the certificate of the chartered accountant for claiming the deduction…

Assistant Commissioner of Income Tax, Circle 1(1), Huballi vs. Hubli Electricity Supply Co. Ltd., Hubballi

In the result, appeal of the Revenue is treated as allowed for statistical purposes

ITA 570/BANG/2017[2012 - 13]Status: DisposedITAT Bangalore30 Jun 2021

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranassessment Year :2012-13 The Assistant Commissioner Of Vs. Hubli Electricity Supply Co. Ltd., Income Tax, Navanagar, Circle – 1(1), Hubballi – 580 025. Hubballi. Pan : Aabch3176 J Appellant Respondent Revenue By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru Assessee By : Smt. Prathibha, Advocate Date Of Hearing : 24.06.2021 Date Of Pronouncement : 30.06.2021 O R D E R Per N. V. Vasudevan

For Appellant: Smt. Prathibha, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru
Section 80ISection 8O

…preferred the present appeal before the Tribunal. 5. As can be seen from the grounds of appeal of the Revenue, the primary reliance placed by the Revenue was on the decision of the Hon’ble Supreme Court in the case of Liberty India (supra) and Sterling Foods 237 ITR 53 (SC) and Cambay Electrical Supply Co. Ltd., 113 ITR 84. At the time of hearing, it was brought to our notice by the learned Counsel for the assessee that all these decisions were considered by the Hon’ble Supreme Court in the case of CIT(A) Vs. Meghalaya Steels Ltd., 383 ITR 217 (SC). The decision was referred in the context of section 80 IC of th…

Mr. Pramod Kumar Khandelwal, Agra vs. Dy.C.I.T.-1, Agra

The appeals of the assessee are allowed in the terms indicated

ITA 201/AGR/2016[2010-11]Status: DisposedITAT Agra12 Apr 2021AY 2010-11

Bench: Shri Laliet Kumar & Dr. Mitha Lal Meena

Section 145Section 271(1)Section 44A

…ion 44AD, this ground of the assessee is hereby rejected. 6. Ground No. 7(b) relates to treatment of interest income as 'Income from Other Sources and not part of business receipts. 6.1 Legal position on this issue is very clear. In the case of Sterling Foods 237 ITR 53, (SC) the Apex Court has held that only when there is a direct nexus between the interest income and business exigency to keep such deposits in the bank, that interest income be treated as part of business income. However, in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd, vs CIT. 227 ITR 172 (SC), the Apex Court has held that interest…

Mr. Pramod Kumar Khandelwal, Agra vs. Dy.C.I.T.-1, Agra

The appeals of the assessee are allowed in the terms indicated

ITA 200/AGR/2016[2011-12]Status: DisposedITAT Agra12 Apr 2021AY 2011-12

Bench: Shri Laliet Kumar & Dr. Mitha Lal Meena

Section 145Section 271(1)Section 44A

…ion 44AD, this ground of the assessee is hereby rejected. 6. Ground No. 7(b) relates to treatment of interest income as 'Income from Other Sources and not part of business receipts. 6.1 Legal position on this issue is very clear. In the case of Sterling Foods 237 ITR 53, (SC) the Apex Court has held that only when there is a direct nexus between the interest income and business exigency to keep such deposits in the bank, that interest income be treated as part of business income. However, in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd, vs CIT. 227 ITR 172 (SC), the Apex Court has held that interest…

Tolani Shipping Co. Ltd., Mumbai vs. DCIT, Cir-5(3)(2), Mumbai

In the result, this appeal by the assessee for A

ITA 6730/MUM/2018[2004-05]Status: DisposedITAT Mumbai30 Mar 2021AY 2004-05
Section 10(33)Section 143(3)Section 14A

…from operation of the ships. In this regard he has referred to the decision of Hon'ble Supreme Court in the case of Pandian Chemicals Ltd. Vs. CIT (262 ITR 268). He also referred to the decision of Hon'ble Supreme Court in the case of CIT Vs. Sterling Foods (237 ITR 579). In our considered opinion above case laws are not at all applicable on the facts of the present case. The above case laws referred by the assessee’s counsel fully covers this issue. We may consider these case laws by referring to the brief head note as under :- “ITAT Mumbai in the case of Mercator Lines Ltd. Vs. DCIT (17 SOT 54) has held that…