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 367,607 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

Deputy Commissioner of Income Tax, Circle-6, Jaipur vs. M/S. Rajasthan Renewable Energy Corporation Limited, Jaipur

In the result, the ground of appeal is allowed for statistical purposes

ITA 772/JPR/2018[2013-14]Status: DisposedITAT Jaipur10 Dec 2018AY 2013-14
For Appellant: Shri P.C. Parwal (C.A.)For Respondent: Shri Varinder Mehta (CIT)
Section 251Section 36(1)Section 43BSection 80I

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 772/JP/2018 fu/kZkj.k o"kZ@Assessment Year : 2013-2014 cuke The DCIT, M/s Rajasthan Renewable Energy Vs. Circle-6, Corporation Ltd., Jaipur. E-166, Yudhister Marg, C-Scheme, Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAACL 3171 C vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 817/JP/2018 fu/kZkj.k o"kZ@Assessment Year : 2013-14 c…

DCIT, Circle - 10(2), Kolkata vs. M/S. Yamai Fashion Pvt. Ltd., Kolkata

Appeals are dismissed as involving lower than the prescribed tax effect of ₹20 lac therefore

ITA 1831/KOL/2018[2011-12]Status: DisposedITAT Kolkata30 Nov 2018AY 2011-12

Bench: Shri S.S.Godara & Shri M. Balaganesh

Section 10Section 108Section 10BSection 10B(1)Section 143(3)Section 154Section 801BSection 80HSection 80l

…ource of such receipts was the relevant Government Schemes for promoting exports which per se did not have direct nexus with the operation of the industrial undertaking. The AO also relied on judgment of the Supreme Court in the case of CIT Vs Sterling Foods (237 ITR 579) wherein similar view was taken. In view of the judgments of the Supreme Court the AO held that the assessee was not eligible for deduction u/s 10B of the Income Tax Act in respect of its income by way of duty draw back & interest subsidy. 4.4 Per contra the A/R of the assessee however placed heavy reliance on the decisions of the ITAT Benches in…

DCIT, Circle - 10(2), Kolkata vs. M/S. Yamai Fashion Pvt. Ltd., Kolkata

Appeals are dismissed as involving lower than the prescribed tax effect of ₹20 lac therefore

ITA 1830/KOL/2018[2011-12]Status: DisposedITAT Kolkata30 Nov 2018AY 2011-12

Bench: Shri S.S.Godara & Shri M. Balaganesh

Section 10Section 108Section 10BSection 10B(1)Section 143(3)Section 154Section 801BSection 80HSection 80l

…ource of such receipts was the relevant Government Schemes for promoting exports which per se did not have direct nexus with the operation of the industrial undertaking. The AO also relied on judgment of the Supreme Court in the case of CIT Vs Sterling Foods (237 ITR 579) wherein similar view was taken. In view of the judgments of the Supreme Court the AO held that the assessee was not eligible for deduction u/s 10B of the Income Tax Act in respect of its income by way of duty draw back & interest subsidy. 4.4 Per contra the A/R of the assessee however placed heavy reliance on the decisions of the ITAT Benches in…

DCIT, Cir-10(2), Kolkata vs. M/S Yamai Fashion Pvt. Ltd., Kolkata

Appeals are dismissed as involving lower than the prescribed tax effect of ₹20 lac therefore

ITA 61/KOL/2016[2011-2012]Status: DisposedITAT Kolkata30 Nov 2018AY 2011-2012

Bench: Shri S.S.Godara & Shri M. Balaganesh

Section 10Section 108Section 10BSection 10B(1)Section 143(3)Section 154Section 801BSection 80HSection 80l

…ource of such receipts was the relevant Government Schemes for promoting exports which per se did not have direct nexus with the operation of the industrial undertaking. The AO also relied on judgment of the Supreme Court in the case of CIT Vs Sterling Foods (237 ITR 579) wherein similar view was taken. In view of the judgments of the Supreme Court the AO held that the assessee was not eligible for deduction u/s 10B of the Income Tax Act in respect of its income by way of duty draw back & interest subsidy. 4.4 Per contra the A/R of the assessee however placed heavy reliance on the decisions of the ITAT Benches in…

Divya Creation, Noida vs. Pr.CIT, Noida

In the result, the appeal of the assessee is allowed

ITA 2715/DEL/2018[2013-14]Status: DisposedITAT Delhi20 Nov 2018AY 2013-14

Bench: Shri Amit Shukla & Shri O.P. Kantassessment Year: 2013-14 M/S. Divya Creation, Vs. Pr. Cit, Plot No. 97, Nsez, Noida Aayakar Bhawan, A2 D- Block, Sector 24, Noida Pan :Aadfd4879K (Appellant) (Respondent)

Section 10ASection 115JSection 143(3)Section 195Section 263Section 40

…on’ble High Court considered the decisions in the case of Pandian Chemicals Ltd. versus CIT (2003) 262 ITR 278 (SC) with reference to section 80HH, Liberty India versus CIT (2009) 317 ITR 218 (SC) with reference to section 8IB, CIT versus Sterling Food (1999) 237 ITR 579 (SC) with reference to section 80HH. The Hon’ble High Court distinguished the above decisions in view of the decision of the Hon’ble Delhi High Court in the case of Riviera Home Furnishing Vs. Addl. CIT (2016) 65 Taxmann.com 18 287 (Delhi), wherein the deduction for interest received on fixed deposits receipt, which were under lien with bank for…

Albatross Cfs P.Ltd, Mumbai vs. ITO 10(2(1), Mumbai

In the result, appeals filed by the assessee for assessment years 2009-

ITA 4833/MUM/2012[2009-10]Status: DisposedITAT Mumbai01 Oct 2018AY 2009-10

Bench: Shri G.S. Pannu (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2009-10 M/S. Albatross Inland-Ports The Ito 10(2)(1), Private Limited Mumbai Formerly M/S Albatross - Cfs Pvt. Ltd., Vs. Geet Mala Building, 4Th Floor, Next To Shah Industrial Estate, Govandi (East), Mumbai- 400088 Pan: Aaeca8052B (Appellant) (Respondent) & Assessment Year: 2010-11 M/S Albatross Inland Ports - The Assistant Commissioner Of Private Limited, Income Tax – 10 (2), 4Th Floor, Geetmala Building Mumbai Next To Shah Industrial Estate, Vs. Deonar, Govandi (East), Mumbai- 400088 Pan: Aaeca8052B (Appellant) (Respondent) Assessee By : Shri M. Subramanian (Ar) Revenue By : Shri Rajesh Kumar Yadav (Dr) Date Of Hearing: 06/07/2018 Date Of Pronouncement: 01/10/2018

For Appellant: Shri M. Subramanian (AR)For Respondent: Shri Rajesh Kumar Yadav (DR)
Section 143Section 143(3)Section 80Section 80I

…s under:- 1. Rent received Rs. 13,06,520/- 2. Interest on fixed deposit Rs. 1,46,742/- 3. Balance Return back Rs. 3,95,807/- 4. Miscellaneous Income Rs. 2,26,895/- 3. The AO relying on the judgments of the Hon’ble Supreme Court in the case of Sterling Foods 237 ITR 579 and Orissa State Warehousing Corporation 237 ITR 589 held that the assessee is not eligible for deduction u/s 80IA holding that since the aforesaid income has not been derived from business activities of the assessee, the same is not eligible for deduction u/s 80IA of the Act. The assessee challenged the assessment order before the Ld. CIT (A). T…

DCIT, New Delhi vs. M/S. Om Nanotech Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue stands dismissed

ITA 5716/DEL/2014[2010-11]Status: DisposedITAT Delhi24 Sept 2018AY 2010-11

Bench: Shri Amit Shukla & Shri L.P. Sahuasstt. Year: 2010-11

For Appellant: Shri Ajay Baheti, CAFor Respondent: Shri S.R. Senapati, Sr. DR
Section 10ASection 143(3)Section 2Section 4Section 51

…he AO held that only those income which is directly derived from the manufacturing activities of eligible undertaking is entitled for deduction u/s 10AA. In support he relied to the decision of Hon’ble Supreme court in the case of CIT vs. Sterling Foods (199) 237 ITR 579; and CIT vs. Pandian Chemicals Ltd. 262 ITR 278 (SC). Thereafter he denied the deduction u/s 10AA to the extent of Rs. 7,55,84,115/- as per the computation given at page 8 of the assessment order. 3. Before the Ld. CIT(A), assessee submitted that the word “services”” has not been defined u/s 10AA and therefore, definition of the word “services”…

DCIT, Cir-12, Kolkata vs. M/S Reckitt Benckiser (India) Ltd., Kolkata

Appeals are dismissed and the Assessee’s appeal in I

ITA 762/KOL/2014[2009-2010]Status: DisposedITAT Kolkata14 Sept 2018AY 2009-2010

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 2113/Kol/2013 Assessment Year : 2006-07 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2150/Kol/2013 Assessment Year : 2006-07 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2114/Kol/2013 Assessment Year : 2008-09 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2151/Kol/2013 Assessment Year : 2008-09 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 760/Kol/2014 Assessment Year : 2009-10 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 762/Kol/2014 Assessment Year : 2009-10 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent)

For Appellant: Shri J.P. Khaitan, Sr. AdvocateFor Respondent: Shri Md. Usman, CIT DR
Section 143(3)Section 80I

…rities action declining section 80IB/ 80IC deduction claimed of Rs. 4,77,40,000/- in relations to interest income for the reason that the same has not been derived from the eligible business as per Honourable apex court’s decision in CIT vs. Sterling Products 237 ITR 579 (SC). They hold that the crucial expression ‘derived from’ used in the impugned deduction provision means the relevant income to be having a direct nexus with the business activity or profits and gains derived there from. Learned senior counsel fairly concedes that the honourable jurisdictional High Court decision in assessee’s own case reported…

Reckitt Benckiser (India) Ltd., Kolkata vs. DCIT, Cir-12, Kolkata

Appeals are dismissed and the Assessee’s appeal in I

ITA 760/KOL/2014[2009-2010]Status: DisposedITAT Kolkata14 Sept 2018AY 2009-2010

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 2113/Kol/2013 Assessment Year : 2006-07 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2150/Kol/2013 Assessment Year : 2006-07 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2114/Kol/2013 Assessment Year : 2008-09 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2151/Kol/2013 Assessment Year : 2008-09 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 760/Kol/2014 Assessment Year : 2009-10 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 762/Kol/2014 Assessment Year : 2009-10 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent)

For Appellant: Shri J.P. Khaitan, Sr. AdvocateFor Respondent: Shri Md. Usman, CIT DR
Section 143(3)Section 80I

…rities action declining section 80IB/ 80IC deduction claimed of Rs. 4,77,40,000/- in relations to interest income for the reason that the same has not been derived from the eligible business as per Honourable apex court’s decision in CIT vs. Sterling Products 237 ITR 579 (SC). They hold that the crucial expression ‘derived from’ used in the impugned deduction provision means the relevant income to be having a direct nexus with the business activity or profits and gains derived there from. Learned senior counsel fairly concedes that the honourable jurisdictional High Court decision in assessee’s own case reported…

Reckitt Benckiser (India) Limited, Kolkata vs. A.C.I.T, Range-12, Kolkata

Appeals are dismissed and the Assessee’s appeal in I

ITA 2151/KOL/2013[2008-09]Status: DisposedITAT Kolkata14 Sept 2018AY 2008-09

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 2113/Kol/2013 Assessment Year : 2006-07 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2150/Kol/2013 Assessment Year : 2006-07 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2114/Kol/2013 Assessment Year : 2008-09 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2151/Kol/2013 Assessment Year : 2008-09 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 760/Kol/2014 Assessment Year : 2009-10 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 762/Kol/2014 Assessment Year : 2009-10 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent)

For Appellant: Shri J.P. Khaitan, Sr. AdvocateFor Respondent: Shri Md. Usman, CIT DR
Section 143(3)Section 80I

…rities action declining section 80IB/ 80IC deduction claimed of Rs. 4,77,40,000/- in relations to interest income for the reason that the same has not been derived from the eligible business as per Honourable apex court’s decision in CIT vs. Sterling Products 237 ITR 579 (SC). They hold that the crucial expression ‘derived from’ used in the impugned deduction provision means the relevant income to be having a direct nexus with the business activity or profits and gains derived there from. Learned senior counsel fairly concedes that the honourable jurisdictional High Court decision in assessee’s own case reported…

Reckitt Benckiser (India) Limited, Kolkata vs. A.C.I.T, Range-12, Kolkata

Appeals are dismissed and the Assessee’s appeal in I

ITA 2150/KOL/2013[2006-07]Status: DisposedITAT Kolkata14 Sept 2018AY 2006-07

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 2113/Kol/2013 Assessment Year : 2006-07 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2150/Kol/2013 Assessment Year : 2006-07 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2114/Kol/2013 Assessment Year : 2008-09 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2151/Kol/2013 Assessment Year : 2008-09 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 760/Kol/2014 Assessment Year : 2009-10 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 762/Kol/2014 Assessment Year : 2009-10 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent)

For Appellant: Shri J.P. Khaitan, Sr. AdvocateFor Respondent: Shri Md. Usman, CIT DR
Section 143(3)Section 80I

…rities action declining section 80IB/ 80IC deduction claimed of Rs. 4,77,40,000/- in relations to interest income for the reason that the same has not been derived from the eligible business as per Honourable apex court’s decision in CIT vs. Sterling Products 237 ITR 579 (SC). They hold that the crucial expression ‘derived from’ used in the impugned deduction provision means the relevant income to be having a direct nexus with the business activity or profits and gains derived there from. Learned senior counsel fairly concedes that the honourable jurisdictional High Court decision in assessee’s own case reported…

DCIT/Cir-12/Kolkata, Kolkata vs. M/S Reckitt Benckiser (India) Ltd., Kolkata

Appeals are dismissed and the Assessee’s appeal in I

ITA 2114/KOL/2013[2008-09]Status: DisposedITAT Kolkata14 Sept 2018AY 2008-09

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 2113/Kol/2013 Assessment Year : 2006-07 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2150/Kol/2013 Assessment Year : 2006-07 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2114/Kol/2013 Assessment Year : 2008-09 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2151/Kol/2013 Assessment Year : 2008-09 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 760/Kol/2014 Assessment Year : 2009-10 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 762/Kol/2014 Assessment Year : 2009-10 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent)

For Appellant: Shri J.P. Khaitan, Sr. AdvocateFor Respondent: Shri Md. Usman, CIT DR
Section 143(3)Section 80I

…rities action declining section 80IB/ 80IC deduction claimed of Rs. 4,77,40,000/- in relations to interest income for the reason that the same has not been derived from the eligible business as per Honourable apex court’s decision in CIT vs. Sterling Products 237 ITR 579 (SC). They hold that the crucial expression ‘derived from’ used in the impugned deduction provision means the relevant income to be having a direct nexus with the business activity or profits and gains derived there from. Learned senior counsel fairly concedes that the honourable jurisdictional High Court decision in assessee’s own case reported…

D.C.I.T Cir - 12, Kolkata vs. M/S Reckitt Benckiser (India) Ltd, Kolkata

Appeals are dismissed and the Assessee’s appeal in I

ITA 2113/KOL/2013[2006-07]Status: DisposedITAT Kolkata14 Sept 2018AY 2006-07

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 2113/Kol/2013 Assessment Year : 2006-07 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2150/Kol/2013 Assessment Year : 2006-07 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2114/Kol/2013 Assessment Year : 2008-09 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 2151/Kol/2013 Assessment Year : 2008-09 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 760/Kol/2014 Assessment Year : 2009-10 M/S Reckitt Benckiser (India) Ltd. -Vs- Dcit, Circle-12, Kolkata [Pan: Aabcr 2655 Q] (Appellant) (Respondent) I.T.A No. 762/Kol/2014 Assessment Year : 2009-10 Dcit, Circle-12, Kolkata -Vs- M/S Reckitt Benckiser (India) Ltd. [Pan: Aabcr 2655 Q] (Appellant) (Respondent)

For Appellant: Shri J.P. Khaitan, Sr. AdvocateFor Respondent: Shri Md. Usman, CIT DR
Section 143(3)Section 80I

…rities action declining section 80IB/ 80IC deduction claimed of Rs. 4,77,40,000/- in relations to interest income for the reason that the same has not been derived from the eligible business as per Honourable apex court’s decision in CIT vs. Sterling Products 237 ITR 579 (SC). They hold that the crucial expression ‘derived from’ used in the impugned deduction provision means the relevant income to be having a direct nexus with the business activity or profits and gains derived there from. Learned senior counsel fairly concedes that the honourable jurisdictional High Court decision in assessee’s own case reported…

M/S. K.T.M India, Panipat vs. ACIT, Haryana

ITA 1981/DEL/2012[2007-08]Status: DisposedITAT Delhi14 Sept 2018AY 2007-08

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Amit Shuklaita Nos. 5619, 2529/Del/2011 Asstt. Years 2007-08

For Appellant: Shri Ashwani Taneja, AdvocateFor Respondent: Shri Amit Jain. Sr. DR
Section 143(3)Section 154Section 271(1)Section 36(1)(iii)Section 80I

…ad answered this issue against the assesee following other judgments of the same court in the case of CIT vs. Jaswand Sons (supra) wherein the Hon’ble Court after referring to the judgments of Hon’ble Supreme Court in the case of CIT vs. Sterling Foods (1999) 237 ITR 579 and Liberty India vs. CIT has decided the issue against the assessee. Since these decisions were not brought to the notice of the Ld. CIT (A) in the quantum proceedings, therefore the matter was decided in favour of the assessee. The AO in his application filed u/s 154 brought to the notice of Ld. CIT(A) that there was a binding judicial preceden…

M/S. K.T.M India, New Delhi vs. Addl. CIT, Panipat

ITA 5619/DEL/2011[2007-08]Status: DisposedITAT Delhi14 Sept 2018AY 2007-08

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Amit Shuklaita Nos. 5619, 2529/Del/2011 Asstt. Years 2007-08

For Appellant: Shri Ashwani Taneja, AdvocateFor Respondent: Shri Amit Jain. Sr. DR
Section 143(3)Section 154Section 271(1)Section 36(1)(iii)Section 80I

…ad answered this issue against the assesee following other judgments of the same court in the case of CIT vs. Jaswand Sons (supra) wherein the Hon’ble Court after referring to the judgments of Hon’ble Supreme Court in the case of CIT vs. Sterling Foods (1999) 237 ITR 579 and Liberty India vs. CIT has decided the issue against the assessee. Since these decisions were not brought to the notice of the Ld. CIT (A) in the quantum proceedings, therefore the matter was decided in favour of the assessee. The AO in his application filed u/s 154 brought to the notice of Ld. CIT(A) that there was a binding judicial preceden…

ACIT, Panipat vs. M/S K.T.M India, Panipat

ITA 3165/DEL/2011[2007-08]Status: DisposedITAT Delhi14 Sept 2018AY 2007-08

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Amit Shuklaita Nos. 5619, 2529/Del/2011 Asstt. Years 2007-08

For Appellant: Shri Ashwani Taneja, AdvocateFor Respondent: Shri Amit Jain. Sr. DR
Section 143(3)Section 154Section 271(1)Section 36(1)(iii)Section 80I

…ad answered this issue against the assesee following other judgments of the same court in the case of CIT vs. Jaswand Sons (supra) wherein the Hon’ble Court after referring to the judgments of Hon’ble Supreme Court in the case of CIT vs. Sterling Foods (1999) 237 ITR 579 and Liberty India vs. CIT has decided the issue against the assessee. Since these decisions were not brought to the notice of the Ld. CIT (A) in the quantum proceedings, therefore the matter was decided in favour of the assessee. The AO in his application filed u/s 154 brought to the notice of Ld. CIT(A) that there was a binding judicial preceden…

M/S K.T.M India, Panipat vs. Addl. CIT, Panipat

ITA 2529/DEL/2011[2007-08]Status: DisposedITAT Delhi14 Sept 2018AY 2007-08

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Amit Shuklaita Nos. 5619, 2529/Del/2011 Asstt. Years 2007-08

For Appellant: Shri Ashwani Taneja, AdvocateFor Respondent: Shri Amit Jain. Sr. DR
Section 143(3)Section 154Section 271(1)Section 36(1)(iii)Section 80I

…ad answered this issue against the assesee following other judgments of the same court in the case of CIT vs. Jaswand Sons (supra) wherein the Hon’ble Court after referring to the judgments of Hon’ble Supreme Court in the case of CIT vs. Sterling Foods (1999) 237 ITR 579 and Liberty India vs. CIT has decided the issue against the assessee. Since these decisions were not brought to the notice of the Ld. CIT (A) in the quantum proceedings, therefore the matter was decided in favour of the assessee. The AO in his application filed u/s 154 brought to the notice of Ld. CIT(A) that there was a binding judicial preceden…

Pr.Commissioner of Income Tax vs. Montage Enterprises Pvt. Ltd

ITA/892/2016HC Delhi06 Sept 2018

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 153ASection 260ASection 80

…u Pharmaceuticals Works Ltd. vs. Commissioner of Income Tax, City-VII [2013] 350 ITR 366 (BOM) holding that the expression “derived from” has been explained by the Supreme Court in Commissioner of Income Tax, Karnataka vs. Sterling Foods, Mangalore (1999) 237 ITR 579 (SC) to mean that there should be a direct nexus between the profits and gains for an industrial undertaking to justify and claim deduction. Secondly, there must be a direct nexus between an industrial undertaking and that the expenses which are sought to be apportioned/attributed to the said undertaking. Expenses which relate to another un…

Pr.Commissioner of Income Tax vs. Montage Enterprises Pvt. Ltd

ITA/895/2016HC Delhi06 Sept 2018

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 153ASection 260ASection 80

…u Pharmaceuticals Works Ltd. vs. Commissioner of Income Tax, City-VII [2013] 350 ITR 366 (BOM) holding that the expression “derived from” has been explained by the Supreme Court in Commissioner of Income Tax, Karnataka vs. Sterling Foods, Mangalore (1999) 237 ITR 579 (SC) to mean that there should be a direct nexus between the profits and gains for an industrial undertaking to justify and claim deduction. Secondly, there must be a direct nexus between an industrial undertaking and that the expenses which are sought to be apportioned/attributed to the said undertaking. Expenses which relate to another un…

Pr.Commissioner of Income Tax vs. Montage Enterprises Pvt. Ltd

ITA/893/2016HC Delhi06 Sept 2018

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 153ASection 260ASection 80

…u Pharmaceuticals Works Ltd. vs. Commissioner of Income Tax, City-VII [2013] 350 ITR 366 (BOM) holding that the expression “derived from” has been explained by the Supreme Court in Commissioner of Income Tax, Karnataka vs. Sterling Foods, Mangalore (1999) 237 ITR 579 (SC) to mean that there should be a direct nexus between the profits and gains for an industrial undertaking to justify and claim deduction. Secondly, there must be a direct nexus between an industrial undertaking and that the expenses which are sought to be apportioned/attributed to the said undertaking. Expenses which relate to another un…