CIT v. Sudarshan Chemicals Industries Ltd.

DCIT 7(3), Mumbai vs. Wyeth Ltd ( Formerly Known As Wyeth Lederle Ltd), Mumbai

In the result, appeal filed by the revenue is dismissed

Bench: Shri Vikas Awasthy, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blepfizer Limited V. Acit- Special Range 23 (Earlier Known As Wyeth Lederle Limited) [Now The Dcit-Circle 7(3)] The Capital, G-Block Aayakar Bhavan Bandra Kurla Complex Mumbai- 400020 Bandra (E), Mumbai -400012 Pan: Aaacp3334M (Appellant) (Respondent) Acit- Ltu V. M/S. Wyeth Limited 28Th Floor, Centre - 1 (Formerly Known As Wyeth Lederle Ltd) Rbc Mahindra Towers World Trade Centre 4Th Floor, A- Wing Cuffe Parade, Mumbai Dr G.M. Bhosale Road Worli, Mumbai- 400055 Pan: Aaacw2641Q (Appellant) (Respondent) Assessee Represented By : Shri Vishal Kalra Department Represented By : Smt. Sujatha Iyangar

…0% is the income of the distributor and not the income of the assessee at any point of time. Reliance was placed by the learned AR on the following two Judgments of the Hon'ble Jurisdictional High Court:- a) CIT Vs. Sudarshan Chemicals Industries Ltd. & Ors., 245 ITR 769 b) CIT VS. Kantilal Chhotalal, 246 ITR 439 It was held in the Judgement of the Sudarshan Chemicals Industries Ltd. (supra) that "the turnover should be restricted to such receipts which have an element of profit in it It was held in the case of KantilalChhotalal (supra) that the "total turnover cannot include reassortment charges, labour charges,…

ACIT 7(3), Mumbai vs. M/S. Wyeth Lederle Ltd., Mumbai

In the result, the appeal of the revenue as well as CO of the assessee are dismissed

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.4070/Mum/2005 (निर्धारण वर्ा / Assessment Years: 2000-01) Acit-7(3) बिधम/ M/S. Wyeth Ltd. Room No.615, 6Th Floor, Level 6 & 7, Plating Plot Vs. Aayakar Bhavan, M. K. No. C-59, G- Block Bkc, Road, Mumbai-400020. Bandra (E), Mumbai- 400098. Cross Objection No. 376/Mum/2005 Arising Out Of I.T.A. No.4070/Mum/2005 (निर्धारण वर्ा / Assessment Year: 2000-01) M/S. Wyeth Ltd. बिधम/ Acit-7(3) Room No.615, 6Th Floor, Level 6 & 7, Plating Plot Vs. No. C-59, G- Block Bkc, Aayakar Bhavan, M. K. Bandra (E), Mumbai- Road, Mumbai-400020. 400098. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacc1451A (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Ms. Rajnandani Shukla Revenue By: Shri Nihar Ranjan Samal (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 08/02/2023 घोषणा की तारीख /Date Of Pronouncement: 28/02/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Revenue & The Cross Objection (Co) Preferred By The Assessee Against The Order Of The Ld. Cit(A), Mumbai Dated 22.03.2005 For The Ay. 2000-01. 2. The Ground No. 1 Of The Revenue & Only Ground Raised By The Assessee In The Co Are Dealt Together. The Ground Is Against The Action Of Ld. Cit(A) Directing The Ao To Delete The Addition Of Rs.21,54,713/- (20% Of The Expenditure Of Rs.1,07,73,564/-).

…evenue are against the action of the Ld. CIT(A) directing the AO to exclude excise duty from the total turn over while computing the deduction u/s 80HHC of the Act by relying on the decision of the Hon’ble High Court in CIT Vs. Sudarshan Chemicals Ltd. (2000) 245 ITR 769 (Bom). 11. Brief facts, the assessee while claiming the deduction of u/s 80HHC of the Act excluded the excise duty and sales tax from the total turn-over for the relevant assessment year for the purpose of computing deduction u/s 80HHC of the Act. However according to 6 A.Y. 2000-01 M/s. Wyeth Lederle Ltd. AO as per the section 145A of the Act, i…

Tech Mahindra Ltd, Mumbai vs. DCIT 2(3), Mumbai

In the result we are not inclined to interfere in the order of Ld

Bench: Shri Vikas Awasthy & Shri Gagan Goyaltech Mahindra Limited, C/O Marriott Hotels India Pvt. Ltd. Gateway Building, Apollo Bunder, Mumbai-400001 Pan: Aaacm3484F ...... Appellant Vs. Dcit-2(3), Room No. 552, Aayakar Bhavan, M.K. Marg, Mumbai-400020. ..... Respondent Acit Circle-2(3)(1), Room No. 552, 5Th Floor, Aayakar Bhavan, M.K. Marg, Mumbai-400020. ..... Appellant Vs. Tech Mahindra Limited, C/O Marriott Hotels India Pvt. Ltd. Gateway Building, Apollo Bunder, Mumbai-400001 Pan: Aaacm3484F ..... Respondent Appellant/Assessee By : Sh. J.D. Mistri / Sh. Harsh Kapadia Respondent/Revenue By : Sh. K.C. Kanojia- Cit-Dr

…e Ld. CIT (A). It is an established fact that the assessee did not include both the expenses in total turnover and export turnover. In this regard we are relying on the decision of Hon’ble Bombay High court in the case of “Sudarshan Chemicals Industries Ltd. (245 ITR 769).” 17. Relevant portion of AO’s order is reproduced here-in-below as ready reference and for better appreciation of the matter: 6. Export of software & Deduction U/s. 10A/10AA: During the year, assessee has claimed deduction u/s 10AA for SEZ Units e.g. Hinjewadi SEZ, Chennai MWC SEZ, Noida SEZ (iPolicy Division). It is seen from the details of th…

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

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

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

…ssessing Officer to exclude the amount of sales tax and excise duty from the total turnover for the purpose of computation of deduction u/s.80HHC of the Act relying upon the decision of the Bombay High Court in the case of Sudarshan Chemicals Industries Ltd. (245 ITR 769) which has been contested by the department by way of SLP.” 15. “On the facts and in the circumstances of the case and in law, the CIT(A) erred in directing the Assessing Officer to reduce the net interest, arrived at after reducing the amount of interest paid from the interest received in case the interest received is found to be linked with th…

ACIT - 7(3), Mumbai vs. M/S. Wyeth Ltd., Mumbai

…and in the circumstances of the case and in law, the Ld.CIT(A) erred in directing the A.O. to exclude Excise Duty and Sales Tax from the total turnover while computing the deduction u/s. 80HHC relying on the decision of CIT Vs. Sudarshan Chemical India Ltd. (245 ITR 769), which the Department has not accepted. 3. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in not applying the ratio of the decision of Gujarat Bench of Hon'ble 1TAT in the case of Gujarat Alkali Chemical reported in 77 TTJ 304 (Ahd) which has considered aforesaid decision of M/s. Sudarshan Chemical Industries…

Novartis India Ltd, Mumbai vs. DCIT Cir 7(1), Mumbai

Appeal stand partly allowed

…that these components would be includible as per the decision of Mumbai Tribunal in Ponds India Ltd. V.s DCIT (164 ITD 33). The department was in further appeal against the favorable decision of Hon‟ble Bombay High Court in Sudarshan Chemical Industries Ltd. (245 ITR 769). Therefore, these items were to be included in computing the figure of total turnover in denominator. 17.2 It was further seen that while working out profits of the business, the assessee failed to exclude 90% of the following items on the ground that the same were not in the nature of receipts mentioned in explanation (baa) of Sec.80HHC: - No.…

Zensar Technologies Ltd., Mumbai vs. Asst CIT (Inv) Cirlce- 2 (1), Mumbai

The appeal stands partly allowed

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…1 Zensar Technologies Ltd. AYs : 1998-99 to 2000-01 आयकर अपीलीय अिधकरण “ए” "ायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI माननीय "ी िवकास अव"थी, "ाियक सद" एवं माननीय "ी मनोज कुमार अ"वाल ,लेखा सद" के सम"। BEFORE HON’BLE SHRI VIKAS AWASTHY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ I.T.A. No.2079/Mum/2003 (िनधा"रणवष" / Assessment Year: 1998-99) & आयकरअपील सं./ I.T.A. No.1642/Mum/2003 (िनधा"रणवष" / Assessment Year: 1999-00) & आयकरअपील सं./ I.T.A. No.3443/Mum/2004 (िनधा"रणवष" / Assessment Year: 2000-01) Zensar Technologies Ltd. ACIT (Inv.) Circle 2(1) (earlier known as Int…

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

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2002-03 Tata Chemicals Ltd. Deputy Commissioner Of Bombay House, Vs. Income Tax-2(3)(1), 5Th 24 Homi Mody Street, Floor, Aayakar Bhavan, Fort, Mumbai-400001 M.K. Road, Mumbai- 400020 Pan No. Aaact4059M Appellant Respondent Assessment Year: 2002-03 Deputy Commissioner Tata Chemicals Ltd. Of Income Tax-2(3)(1), Vs. Bombay House, 5Th Floor, Aayakar 24 Homi Mody Street, Bhavan, M.K. Road, Fort, Mumbai-400001 Mumbai-400020 Pan No. Aaact4059M Appellant Respondent Assessee By : Mr. Nitesh Joshi, Ar Revenue By : Mr. Choudhary Arun Kumar Singh, Date Of Hearing : 25/01/2019 Date Of Pronouncement: 22/04/2019

…e deduction u/s 80HHC. The AO has included excise duty, sales tax, scrap and store sales to the total turnover. 7.2 In appeal before the Ld. CIT(A), the assessee submits that in view of the decision of the Bombay High Court in the case of Surdarshan Chemicals 245 ITR 769, these incomes do not form part of total turnover. The Ld. CIT(A), referring to the decision of the Supreme Court in Laxmi Machine Works 290 ITR 667 (SC), directed the AO to exclude excise duty and sales tax from the total turnover while computing deduction u/s 80HHC of the Act. Tata Chemicals Ltd. 7.3 Before us, the Ld. counsel of the assessee…

ITO 2(1)(1), Mumbai vs. Abbott India Ltd, Mumbai

In the result, appeal filed by the assessee is partly allowed, for

…order is extracted below:- “28. On this issue we note that the Ld.Commissioner of Income Tax (Appeals) has decided the issue by placing reliance upon the decision of Hon'ble jurisdictional High Court in the case of CIT vs. Sudarshan Chemical Industries Ltd. 245 ITR 769 (Bom). Hence, we do not find any infirmity in the order of the Id. Commissioner of Income Tax (Appeals). The order of the Id. Commissioner of Income Tax (Appeals) in this regard may be gainfully referred as under: 13. The appellant had excluded sales-tax, excise duty and trade discount from"" the total turnover in working out the profits derived…

ACIT 2(3), Mumbai vs. Tech Mahindra ( R &D Services) Ltd (Now Merged With Tech Mahindra Ltd), Mumbai

The appeal of the assessee is allowed

…of turnover. For this reason in addition, these two items would have to be excluded from the total turnover particularly in the absence of a legislative prescription to the contrary - CIT v Sudarshan Chemicals Industries Ltd. (2000) 163 CTR (Bom) 596: (2000) 245 ITR 769 (Bom) applied; CIT v Lakshmi Machine Works (2007) 210 CTR (SC) 1: (2007) 290 ITR 667 (SC) and CIT v Catapharma (India) (P) Ltd. (2007) 211 CTR (SC) 83: (2007) 292 ITR 641 (SC) relied on" 3.10 In the case of Sak Soft Ltd. (supra), the assessee was engaged in the business of exporting computer software and claimed deduction u/s 10B of the Act. In c…