CIT v. Vikram Cotton Mills Ltd.

169 ITR 597Supreme Court of India1988#2194 most cited

What is CIT v. Vikram Cotton Mills Ltd. authority for?

Income generated from activities that are incidental to or intrinsically linked with the preservation, modernization, or expansion of a business, such as temporary letting out of business space or interest from funds retained for business improvement, constitutes business income and not income from other sources.

53

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2011 to 2025.

Also referred to as

CIT v. Vikram Cotton Mills Ltd. · 169 ITR 597 · Supreme Court · section 37(1) · business income · income from other sources · scope of business · incidental income · rental income from business asset · interest income retained for business · part and parcel of business

Issues it is cited on

rule of consistencysection 37(1)income from other sourcescompanysection 143(3)indiabusinessinterest

Judgments citing CIT v. Vikram Cotton Mills Ltd.

RAYAT SAHAKARI SAKHAR KARKHANA LTD,SATARA vs. ITO WARD-5, SATARA

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

ITA 373/PUN/2025[2015-16]Status: DisposedITAT Pune05 Dec 2025AY 2015-16

Bench: Dr.Manish Borad

For Appellant: Shri Pramod S. ShingteFor Respondent: Shri Ajitesh Meena
Section 143(1)(a)Section 143(2)Section 143(3)Section 250

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.373/PUN/2025 Assessment Year : 2015-16 Rayat Sahakari Sakhar Vs. Income Tax Officer, Karkhana Ltd., Ward-5, Satara A/P. Shewalewadi Mhaso, Tal. Karad, Dist. Satara – 415 111 Maharashtra PAN : AABAR0241C Appellant Respondent Appellant by : Shri Pramod S. Shingte Respondent by : Shri Ajitesh Meena Date of hearing : 14.10.2025 Date of pronouncement : 05.12.2025 आदेश / ORDER The captioned appeal at the instance of assessee pertaining to A.Y. 2015-16 is directed against the order dated…

PRIDE FORAMER S.A. vs. COMMISSIONER OF INCOME TAX

C.A. No.-004395-004397 - 2010Supreme Court17 Oct 2025

Bench: HON'BLE THE CHIEF JUSTICE

Section 32(2)Section 37

…ge is wide: it may take in not only the day-to-day running of a business but also the rationalisation of its administration and modernisation of its machinery; it may include measures for preservation of 6 CIT v. Vikram Cotton Mills, (1988) 169 ITR 597 (SC), para 15. 7 Narain Swadeshi Weaving Mills v. Commissioner of excess Profits Tax (1954) 2 SCC 546. 8 (1964) 53 ITR 140 (SC). Page 11 of 13 business and for protection of its assets and property from expropriation, coercive process or assertion of hostile title; it may also comprehend payment of statutory dues and taxes imposed a…

GOWTHAM RESIDENTIAL JUNIOR COLLEGE,VIJAYAWADA vs. ACIT, CENTRAL CIRCLE, VIJAYAWADA

In the result, appeals of the assessee are allowed

ITA 26/VIZ/2022[2013-14]Status: DisposedITAT Visakhapatnam24 Jun 2025AY 2013-14

Bench: Shri Ravish Sood, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपीलसं./I.T.A.Nos.25 & 26/Viz/2022 (निर्धारण वर्ा/ Assessment Years: 2017-18 & 2013-14) Gowtham Residential Junior College V. Asst. Cit-Central Circle Vijayawada 1-87, Gudavalli Village Gudavalli, Vijayawada – 521104 Andhra Pradesh [Pan: Aaefg4399L] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

Section 255(4)

…gs of the learned CIT(A) for the assessment year 2009-10 still holds good in the light of the decisions of the Hon'ble Apex court in the cases of Commissioner of Excess Profits Tax Vs.Sri Lakshmi Silk Mills (1951) 20 ITR 451 (SC), CIT Vs. Vikram Cotton (1988) 36 Taxmann 1(SC). He submitted that the decisions relied upon by the learned CIT(A) are not at all applicable to the facts of the case inasmuchas in the case of Universal Plast Ltd. VS.CIT (1999) 103 Taxmann 493 (SC), the assessee had no intention to continue the business; in East India Housing and Land Development 42 ITR 49, Shambhu Investments 263 ITR 143…

GOWTHAM RESIDENTIAL JUNIOR COLLEGE,VIJAYAWADA vs. ACIT, CENTRAL CIRCLE, VIJAYAWADA

In the result, appeals of the assessee are allowed

ITA 25/VIZ/2022[2017-18]Status: DisposedITAT Visakhapatnam24 Jun 2025AY 2017-18

Bench: Shri Ravish Sood, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपीलसं./I.T.A.Nos.25 & 26/Viz/2022 (निर्धारण वर्ा/ Assessment Years: 2017-18 & 2013-14) Gowtham Residential Junior College V. Asst. Cit-Central Circle Vijayawada 1-87, Gudavalli Village Gudavalli, Vijayawada – 521104 Andhra Pradesh [Pan: Aaefg4399L] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

Section 255(4)

…gs of the learned CIT(A) for the assessment year 2009-10 still holds good in the light of the decisions of the Hon'ble Apex court in the cases of Commissioner of Excess Profits Tax Vs.Sri Lakshmi Silk Mills (1951) 20 ITR 451 (SC), CIT Vs. Vikram Cotton (1988) 36 Taxmann 1(SC). He submitted that the decisions relied upon by the learned CIT(A) are not at all applicable to the facts of the case inasmuchas in the case of Universal Plast Ltd. VS.CIT (1999) 103 Taxmann 493 (SC), the assessee had no intention to continue the business; in East India Housing and Land Development 42 ITR 49, Shambhu Investments 263 ITR 143…

ACIT-1(1)(1), MUMBAI vs. M/S. CHEMICALS AND FERRO ALLOYS PVT LTD, MUMBAI

In the result, the appeal of the revenue stand dismissed

ITA 1996/MUM/2023[2013-14]Status: DisposedITAT Mumbai11 Dec 2023AY 2013-14

Bench: Shri Aby T Varkey & Shri Amarjit Singhacit-1(1)(1) Vs. M/S Chemical & Ferro 579, Aaykar Bhavan, Alloys Private Limited M.K. Road, 3Rd Floor, Liberty Mumbai – 400020 Building, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai – 400020 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacc4508N Appellant .. Respondent

For Appellant: Sanjay ParikhFor Respondent: H.M. Bhatt
Section 143Section 143(2)

…P a g e | 1 ACIT-1(1)(1) vs. M/s Chemical and Ferro Alloys Pvt. Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ACIT-1(1)(1) Vs. M/s Chemical and Ferro 579, Aaykar Bhavan, Alloys Private Limited M.K. Road, 3rd Floor, Liberty Mumbai – 400020 Building, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai – 400020 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No:AAACC4508N Appellant .. Respondent Appellant by : Sanjay Parikh Respondent by : H.M. Bhatt Date of Hearing 16.11.2023 Date of Pronouncement 11.12.2023 आदेश / O R D E…

M/S QUALITY APPAREL EXPORTERS PVT LTD.,MUMBAI vs. ITO WARD 11(1)(1), MUMBAI

In the result, the Ground No

ITA 2352/MUM/2019[2012-13]Status: DisposedITAT Mumbai05 May 2022AY 2012-13

Bench: Shri G.S.Pannu & Shri Pavan Kumar Gadaleita No. 2352 & 2353/Mum/2019 (A.Y: 2012-13 & 2013-14) M/S. Quality Apparel Vs. Ito -Ward -11(1)(1) Exports Pvt Ltd, Room No. 201, Unit No.4, Wicel Bldg, 2Ndfloor,Aayakar Seepz, Midc, Moral, Bhavan, M.K. Road, Andheri (E), Mumbai Mumbai – 400020 400093 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacq1711F Appellant .. Respondent Appellant By : None Respondent By : Mr.T.Shankar.Dr Date Of Hearing 20.04.2022 Date Of Pronouncement 04.05.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: These Are The Appeals Filed The By The Assessee Against The Separate Orders Of The Commissioner Of Income Tax (Appeals)-18, Mumbai Passed U/S 143(3) R.W.S 250 Of The Act.

For Appellant: NoneFor Respondent: Mr.T.Shankar.DR
Section 143(1)Section 143(2)Section 143(3)

…mporary period as a part of exploitation to tide over crises condition is to be assessed as business income and not income from house property. The appellant further relied on the decision of Hon’ble Supreme Court namely CIT Vs. Vikram Cotton Mills Ltd (1988) 169 ITR 597, Cept Vs Shri Laxmi Silk Mills (1951) 20 ITR 451 and CIT Vs. Maheshwari Devi Jute Mills Ltd (1965) 57 ITR 36 and CIT Vs Vikram Cotton Mills Ltd. (1988) 169 ITR 597 and contended that rent income should not be taxed as Income from House Property. 4.3.2 After examining the explanation of the appellant and the contention of the Assessing Officer I…

RAJPUTANA FERTILIZERS LTD.,,NEW DELHI vs. ACIT, CIRCLE-21(2), NEW DELHI

ITA 7587/DEL/2018[2015-16]Status: DisposedITAT Delhi22 Dec 2021AY 2015-16

Bench: Shri R. K. Panda & Shri Kuldip Singh(Through Video Conferencing)

For Appellant: Shri Anil Jain, AdvocateFor Respondent: Shri Munesh Kumar [CIT]–D.R
Section 10(34)Section 142(1)Section 143(3)

…remitted back to the Assessing Officer to decide afresh after providing opportunity of being heard to the assessee in the light of the settled principles laid down by the Hon’ble apex court of India in the case cited as CIT Vs. Vikram Cotton Mills Ltd. (1988) 169 ITR 597 (SC); CIT Vs. Malayalam Plantation Ltd. 53 ITR 140 (SC) and CIT Vs. Birla Cotton Spinning & Weaving Mills Ltd. 82 ITR 166 (SC). 12. Resultantly, both the appeals filed by the assessee company are set aside and allowed for statistical purposes. Order pronounced in the open court on : 22/12/2021. ( R. K. PANDA ) JUDICIAL MEMBER Dated : 22/12/2021…

M/S RAJPUTANA FERTILIZERS LTD.,,NEW DELHI vs. ACIT,, NEW DELHI

ITA 2919/DEL/2017[2013-14]Status: DisposedITAT Delhi22 Dec 2021AY 2013-14

Bench: Shri R. K. Panda & Shri Kuldip Singh(Through Video Conferencing)

For Appellant: Shri Anil Jain, AdvocateFor Respondent: Shri Munesh Kumar [CIT]–D.R
Section 10(34)Section 142(1)Section 143(3)

…remitted back to the Assessing Officer to decide afresh after providing opportunity of being heard to the assessee in the light of the settled principles laid down by the Hon’ble apex court of India in the case cited as CIT Vs. Vikram Cotton Mills Ltd. (1988) 169 ITR 597 (SC); CIT Vs. Malayalam Plantation Ltd. 53 ITR 140 (SC) and CIT Vs. Birla Cotton Spinning & Weaving Mills Ltd. 82 ITR 166 (SC). 12. Resultantly, both the appeals filed by the assessee company are set aside and allowed for statistical purposes. Order pronounced in the open court on : 22/12/2021. ( R. K. PANDA ) JUDICIAL MEMBER Dated : 22/12/2021…

M/S.PTL ENTERPRISES LTD. (FORMERLY PREMIER TYRES LTD) vs. THE ASSISTNAT COMMISSIONER OF INCOME TAX, CIRCLE-2(1),RANGE-2, ERNAKULAM

ITA/207/2013HC Kerala22 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: THE DEPUTY COMMISSIONER OF INCOME TAXFor Respondent: M/S.PTL ENTERPRISES LTD

…tention could be manifested by the assessee initiating or undertaking an element of risk in the activity of manufacture. The decision in Commissioner of Income I.T.A. No.193/12 & Conn. Cases -:18:- Tax, Lucknow v. Vikram Cotton Mills Limited [(1988) 169 ITR 597 (SC)] is also apposite in this context. 17. We had observed in I.T.A. No.757 of 2009 and connected cases that the word Business in section 2(14) is not a word of art but a word of commercial implication. The bottom line is the availability of assets, activities carried out for exploiting the assets and that the assessee is not a mere onlooker i…

M/S.PTL ENTERPRISES LTD. vs. THE DEPUTY COMMISSIONER OF INCOME-TAX

ITA/185/2013HC Kerala22 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: THE DEPUTY COMMISSIONER OF INCOME TAXFor Respondent: M/S.PTL ENTERPRISES LTD

…tention could be manifested by the assessee initiating or undertaking an element of risk in the activity of manufacture. The decision in Commissioner of Income I.T.A. No.193/12 & Conn. Cases -:18:- Tax, Lucknow v. Vikram Cotton Mills Limited [(1988) 169 ITR 597 (SC)] is also apposite in this context. 17. We had observed in I.T.A. No.757 of 2009 and connected cases that the word Business in section 2(14) is not a word of art but a word of commercial implication. The bottom line is the availability of assets, activities carried out for exploiting the assets and that the assessee is not a mere onlooker i…

PTL ENTERPRISES LTD. vs. THE DEPUTY COMMISSONER OF INCOME TX

ITA/206/2013HC Kerala22 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: THE DEPUTY COMMISSIONER OF INCOME TAXFor Respondent: M/S.PTL ENTERPRISES LTD

…tention could be manifested by the assessee initiating or undertaking an element of risk in the activity of manufacture. The decision in Commissioner of Income I.T.A. No.193/12 & Conn. Cases -:18:- Tax, Lucknow v. Vikram Cotton Mills Limited [(1988) 169 ITR 597 (SC)] is also apposite in this context. 17. We had observed in I.T.A. No.757 of 2009 and connected cases that the word Business in section 2(14) is not a word of art but a word of commercial implication. The bottom line is the availability of assets, activities carried out for exploiting the assets and that the assessee is not a mere onlooker i…

PTL ENTERPRISES LTD. vs. THE DEPUTY COMMISSIONER OF INCOME TAX

ITA/227/2013HC Kerala22 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: THE DEPUTY COMMISSIONER OF INCOME TAXFor Respondent: M/S.PTL ENTERPRISES LTD

…tention could be manifested by the assessee initiating or undertaking an element of risk in the activity of manufacture. The decision in Commissioner of Income I.T.A. No.193/12 & Conn. Cases -:18:- Tax, Lucknow v. Vikram Cotton Mills Limited [(1988) 169 ITR 597 (SC)] is also apposite in this context. 17. We had observed in I.T.A. No.757 of 2009 and connected cases that the word Business in section 2(14) is not a word of art but a word of commercial implication. The bottom line is the availability of assets, activities carried out for exploiting the assets and that the assessee is not a mere onlooker i…

PTL ENTERPRISES LTD. vs. THE DEPUTY COMMISSIONER OF INCOME-TAX

ITA/200/2013HC Kerala22 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: THE DEPUTY COMMISSIONER OF INCOME TAXFor Respondent: M/S.PTL ENTERPRISES LTD

…tention could be manifested by the assessee initiating or undertaking an element of risk in the activity of manufacture. The decision in Commissioner of Income I.T.A. No.193/12 & Conn. Cases -:18:- Tax, Lucknow v. Vikram Cotton Mills Limited [(1988) 169 ITR 597 (SC)] is also apposite in this context. 17. We had observed in I.T.A. No.757 of 2009 and connected cases that the word Business in section 2(14) is not a word of art but a word of commercial implication. The bottom line is the availability of assets, activities carried out for exploiting the assets and that the assessee is not a mere onlooker i…

M/S PTL ENTERPRISES LTD., vs. THE DEPUTY COMMISSIONER OF INCOME-TAX,

ITA/92/2014HC Kerala22 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: THE DEPUTY COMMISSIONER OF INCOME TAXFor Respondent: M/S.PTL ENTERPRISES LTD

…tention could be manifested by the assessee initiating or undertaking an element of risk in the activity of manufacture. The decision in Commissioner of Income I.T.A. No.193/12 & Conn. Cases -:18:- Tax, Lucknow v. Vikram Cotton Mills Limited [(1988) 169 ITR 597 (SC)] is also apposite in this context. 17. We had observed in I.T.A. No.757 of 2009 and connected cases that the word Business in section 2(14) is not a word of art but a word of commercial implication. The bottom line is the availability of assets, activities carried out for exploiting the assets and that the assessee is not a mere onlooker i…

THE COMMISSIONER OF INCOME TAX vs. PREMIER TYRES LTD.

ITA/929/2009HC Kerala19 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: THE COMMISSIONER OF INCOME TAXFor Respondent: M/S.PREMIER TYRES LTD

…IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 19TH DAY OF JULY 2021 / 28TH ASHADHA, 1943 ITA NO. 757 OF 2009 AGAINST THE ORDER IN ITA 346/Coch/2003 DATED 14.12.2004 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT: M/S.PREMIER TYRES LTD., 7TH FLOOR, CHERUPUZHAM BUILDING, SHANMUGHAM ROAD, COCHIN- 31. BY ADVS. SRI.K.P.ABDUL AZEES SRI.V.ABRAHAM MARKOS SRI.BINU MATHEW SRI.JOSEPH MA…

THE COMMISSIONER OF INCOME TAX vs. PREMIER TYRES LTD.

ITA/758/2009HC Kerala19 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: THE COMMISSIONER OF INCOME TAXFor Respondent: M/S.PREMIER TYRES LTD

…IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 19TH DAY OF JULY 2021 / 28TH ASHADHA, 1943 ITA NO. 757 OF 2009 AGAINST THE ORDER IN ITA 346/Coch/2003 DATED 14.12.2004 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT: M/S.PREMIER TYRES LTD., 7TH FLOOR, CHERUPUZHAM BUILDING, SHANMUGHAM ROAD, COCHIN- 31. BY ADVS. SRI.K.P.ABDUL AZEES SRI.V.ABRAHAM MARKOS SRI.BINU MATHEW SRI.JOSEPH MA…

THE COMMISSIONER OF INCOME TAX, vs. PTL ENTERPRISES LIMITED,

ITA/483/2009HC Kerala19 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: THE COMMISSIONER OF INCOME TAXFor Respondent: M/S.PREMIER TYRES LTD

…IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 19TH DAY OF JULY 2021 / 28TH ASHADHA, 1943 ITA NO. 757 OF 2009 AGAINST THE ORDER IN ITA 346/Coch/2003 DATED 14.12.2004 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT: THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT: M/S.PREMIER TYRES LTD., 7TH FLOOR, CHERUPUZHAM BUILDING, SHANMUGHAM ROAD, COCHIN- 31. BY ADVS. SRI.K.P.ABDUL AZEES SRI.V.ABRAHAM MARKOS SRI.BINU MATHEW SRI.JOSEPH MA…

M/S NANDI STEELS LIMITED vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

In the result, the findings

ITA/103/2012HC Karnataka23 Feb 2021

Bench: ALOK ARADHE,R. NATARAJ

Section 143(1)Section 143(3)Section 147Section 148Section 260Section 260ASection 6

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF FEBRUARY 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE NATARAJ RANGASWAMY I.T.A. NO.103 OF 2012 BETWEEN: M/S. NANDI STEELS LIMITED REP. BY ITS DIRECTOR SRI. ARUN AGARWAL F4, RICHMOND PLAZA RICHMOND CIRCLE BANGALORE-560025. ... APPELLANT (BY SRI. A. SHANKAR, SR. COUNSEL A/W SRI. V. CHANDRASEKHAR, ADV., AND SRI. BHAIRAV KUTTAIAH, ADV., FOR SRI. M. LAVA, ADV.,) AND: THE ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE-12(2), R.P. BHAVAN NRUPATUNGA ROAD, OPP. RBI BANGALORE-560001.…

DCIT, NEW DELHI vs. M/S. KENMORE VIKAS INDIA (P) LTD., NEW DELHI

In the result the appeal of the revenue is dismissed

ITA 2673/DEL/2017[2012-13]Status: DisposedITAT Delhi30 Sept 2020AY 2012-13

Bench: Shri R.K. Panda & Ms Suchitra Kambleasstt. Year 2012-13

For Respondent: Shri Arun Kumar Yadav, Sr. DR
Section 14Section 24

…letting out the property and/or the temporary or permanent letting out & property would not make any difference. Different decisions have been rendered in a somewhat different factual context. For eg. the Supreme Court in the case of Vikram Cotton Mills Ltd. (169 ITR 597) was examining a case where the assessee company, which had been engaged in the business of manufacture of textiles but had stopped the manufacture owing to heavy accumulated losses and thereafter let out plant and machinery of hire was to be assessed as business income or under the head income from other sources. The Supreme Court followed its e…

THE ACIT, COCHIN vs. M/S.PTL ENTERPRISES LTD, COCHIN

In the result, the appeal filed by the Revenue is dismissed

ITA 84/COCH/2020[2014-15]Status: DisposedITAT Cochin06 Jul 2020AY 2014-15

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.Mritunjaya Sharma, CIT-DRFor Respondent: S/Sri.Joseph Marcose, Sr.Advocate &
Section 56(2)(ii)

…e. either by financially or for some other reasons is let out the land, plant and machinery to a third party for a limited period and receiving rent, such rent is to be treated as income from business. The cases relied upon by the assessee such as 20 ITR 451, 169 ITR 597, 195 ITR 3525, 138 ITR 18, 116 ITR 781, 266 ITR 106, 166 ITR 211, 211 ITR 370, 164 ITR 288 and 237 ITR 454 (mentioned in para 16 of this order) support the case of the assessee. In all these cases, the Hon’ble Supreme Court and various High Courts held that rental income received for a limited period by way of letting out plant and machinery beca…

Showing 1–20 of 53 · Page 1 of 3

CIT v. Vikram Cotton Mills Ltd. (169 ITR 597) — Cited in 53 Judgments | BharatTax