Commissioner of Income-tax, Punjab v. Lahore Electric Supply Co. Ltd.

60 ITR 1Supreme Court of India1966#3708 most cited

What is Commissioner of Income-tax, Punjab v. Lahore Electric Supply Co. Ltd. authority for?

A company's mere non-liquidation or its obligation to share profits or return deposits does not inherently signify it's carrying on business, especially if there's no express intention to resume operations after an undertaking acquisition.

32

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2025.

Also referred to as

Commissioner of Income-tax · Punjab v. Lahore Electric Supply Co. Ltd · 60 ITR 1 · SC 1966 · carrying on business · intention to do business · resumption of business · acquired undertaking · profit motive

Sections most often in play

Section 10(23EC)Section 11Section 13(3)Section 13(8)Section 2(15)Section 12ASection 143(3)Section 142(1)
Read the full judgment

Issues it is cited on

section 13(8)corpus fundsection 13(3)section 13(1)(c)proviso to section 2(15)section 2(15)section 12aacross objectionscrutiny assessmentsection 12asection 10section 12

Judgments citing Commissioner of Income-tax, Punjab v. Lahore Electric Supply Co. Ltd.

Astt. Commissioner of Income Tax (Exemption), Lucknow vs. M/S U.P Awas Evam Vikas Parishad, Lucknow

In the result, all the grounds taken in the appeals and ground 1 of additional grounds of the Revenue stand dismissed and additional ground

ITA 630/LKW/2016[2009-10]Status: DisposedITAT Lucknow08 Jun 2022AY 2009-10

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 12ASection 143(3)Section 15Section 2(15)

…was analysed by the Hon'ble Delhi High Court in the case of Institute of Chartered Accountants of India Vs. DGT (347ITR 99) and the relevant discussions have been extracted by the Hon'ble Delhi High Court in the case of GSI India Vs. DGIT (Exemption) (2014) (360 ITR 138) (Delhi) as under: - "Scope of Trade, Commerce or Business" 15. The key words, namely; trade, commerce and business were enumerate and elucidate in Institute of Chartered Accountants of India v. Director General of Income Tax (Exemptions) Delhi (Supra) as under: -"Trade, as per the Webster's New Twentieth Century Dictionary (2nd edition), means,…

Lucknow Development Authority, Lucknow vs. DCIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 439/LKW/2019[2016-17]Status: DisposedITAT Lucknow10 Mar 2022AY 2016-17

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…fit motive, the activity being manual or mercantile, as distinguished from the liberal arts or learned professions or agriculture." 9.9 Similarly, Hon’ble Supreme Court in the case of Commissioner of Income-tax, Punjab v. Lahore Electric Supply Co. Ltd (1966)60 ITR 1 (S.C) has held as under: “Income Tax business Income-Carrying On of Business - Government Acquired Assessee Company's Undertaking In Regard To Supply Of Electricity-Mere fact That It Did Not Go Into Liquidation Would Not Establish That It Had Intention To Do Business-at The Relevant Time The Company Was Not Express And Intention To Resume Business-…

Lucknow Development Authority, Lucknow vs. ACIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 186/LKW/2019[2013-14]Status: DisposedITAT Lucknow10 Mar 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…fit motive, the activity being manual or mercantile, as distinguished from the liberal arts or learned professions or agriculture." 9.9 Similarly, Hon’ble Supreme Court in the case of Commissioner of Income-tax, Punjab v. Lahore Electric Supply Co. Ltd (1966)60 ITR 1 (S.C) has held as under: “Income Tax business Income-Carrying On of Business - Government Acquired Assessee Company's Undertaking In Regard To Supply Of Electricity-Mere fact That It Did Not Go Into Liquidation Would Not Establish That It Had Intention To Do Business-at The Relevant Time The Company Was Not Express And Intention To Resume Business-…

Lucknow Development Authority, Lucknow vs. ACIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 185/LKW/2019[2013-14]Status: DisposedITAT Lucknow10 Mar 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…fit motive, the activity being manual or mercantile, as distinguished from the liberal arts or learned professions or agriculture." 9.9 Similarly, Hon’ble Supreme Court in the case of Commissioner of Income-tax, Punjab v. Lahore Electric Supply Co. Ltd (1966)60 ITR 1 (S.C) has held as under: “Income Tax business Income-Carrying On of Business - Government Acquired Assessee Company's Undertaking In Regard To Supply Of Electricity-Mere fact That It Did Not Go Into Liquidation Would Not Establish That It Had Intention To Do Business-at The Relevant Time The Company Was Not Express And Intention To Resume Business-…

Lucknow Evelopment Authority, Lucknow vs. I.T.O., Lucknow

In the result, all the appeals are partly allowed

ITA 164/LKW/2019[2015-16]Status: DisposedITAT Lucknow10 Mar 2022AY 2015-16

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…fit motive, the activity being manual or mercantile, as distinguished from the liberal arts or learned professions or agriculture." 9.9 Similarly, Hon’ble Supreme Court in the case of Commissioner of Income-tax, Punjab v. Lahore Electric Supply Co. Ltd (1966)60 ITR 1 (S.C) has held as under: “Income Tax business Income-Carrying On of Business - Government Acquired Assessee Company's Undertaking In Regard To Supply Of Electricity-Mere fact That It Did Not Go Into Liquidation Would Not Establish That It Had Intention To Do Business-at The Relevant Time The Company Was Not Express And Intention To Resume Business-…

Lucknow Development Authority, Lucknow vs. Assistant Commissioner of Income Tax (Exemption), Lucknow

In the result, all the appeals are partly allowed

ITA 163/LKW/2019[2014-15]Status: DisposedITAT Lucknow10 Mar 2022AY 2014-15

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…fit motive, the activity being manual or mercantile, as distinguished from the liberal arts or learned professions or agriculture." 9.9 Similarly, Hon’ble Supreme Court in the case of Commissioner of Income-tax, Punjab v. Lahore Electric Supply Co. Ltd (1966)60 ITR 1 (S.C) has held as under: “Income Tax business Income-Carrying On of Business - Government Acquired Assessee Company's Undertaking In Regard To Supply Of Electricity-Mere fact That It Did Not Go Into Liquidation Would Not Establish That It Had Intention To Do Business-at The Relevant Time The Company Was Not Express And Intention To Resume Business-…

DCIT, New Delhi vs. M/S. Delhi Automobiles Ltd., New Delhi

In the result, the appeal of the department is dismissed

ITA 5652/DEL/2015[2011-12]Status: DisposedITAT Delhi22 Nov 2018AY 2011-12

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 142(1)Section 143(2)

…the Hon’ble Jurisdictional High Court at Delhi, in the case of CIT Vs Anita Jain (supra) observed in para 3 as under: “3. Ms. Bansal, learned counsel for the revenue, has drawn our attention to the observation in CIT v. Lahore Electric Supply Co. Ltd. [1966] 60 ITR 1 (SC) to the effect that the "mere fact that the company had not gone into liquidation would not establish that it had the intention to do business". This submission loses sight of the observations made at page 5 which clearly indicate that the Court came to the conclusion that the assessee had closed business because it had not 'established an inten…

Muniwar Abad Charitable Trust, Mumbai vs. Dy Director of Income Tax (Exemptions) - I(1), Mumbai

In the result, both the appeals of the assessee are allowed

ITA 2176/MUM/2016[2011-12]Status: DisposedITAT Mumbai11 Oct 2018AY 2011-12

Bench: Shri B.R. Baskaran (Am) & Shri Ramlal Negi (Jm)

Section 11Section 11(2)Section 12ASection 2(15)

…THE INCOME TAX APPELLATE TRIBUNAL “G” Bench, Mumbai Before Shri B.R. Baskaran (AM) & Shri Ramlal Negi (JM) I.T.A. No. 2176/Mum/2016 (Assessment Year 2011-12) I.T.A. No. 7235/Mum/2016 (Assessment Year 2012-13) M/s. Muniwar Abad Dy. DIT(E)-I(1) Vs. Charitable Trust 6th Floor 405A/407, Jolly Bhavan Piramal Chambers No. 1, 10, New Marine Lalbaug, Parel Lines, Mumbai-400 020. Mumbai-400 012. PAN : AAATM0140K (Appellant) (Respondent) Assessee by S/Shri Porus Kaka, Manish K. Kanth & Mayank V. Thosar Department by Shri V. Vidhyadhar Date of Hearing 16.07.2018 Date of Pronouncement 11.10.2018 O R D E R Per B.R. Ba…

M/S. Mula Pravara Electric Co-Op. Society Ltd., Ahmednagar vs. Deputy Ssistant Commissioner of Income-Tax

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 1776/PUN/2016[2012-13]Status: DisposedITAT Pune28 Sept 2018AY 2012-13

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं आयकर अपील सं. / Ita No. 1776/Pun/2016 आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Year : 2012-13 िनधा"रण वष" िनधा"रण वष" िनधा"रण वष"

For Appellant: Shri S.M. DoshiFor Respondent: Shri Amit Dua

…business expenses, set off and carry forward of losses. They are (1) Supreme Court judgments in the case of Universal Plast Limited Vs. CIT 237 ITR 454 (SC); (2) Vikram Cotton Mills Ltd. 169 ITR 597 (SC); (3) CIT v. Lahore Electric Supply Company Limited. 60 ITR 1; (4) CIT Vs. Vellore Electric 17 M/s. Mula Pravara Electric Co-op. Society Ltd., Corporation Ltd. 243 ITR 529; and (5) CIT Vs. Shri Lakshmi Silk Mills Limited 20 ITR 451 12. Per Contra, to continue the elaborate case of the Revenue, the demand for renewal of license is a futile exercise as the Govt. of Maharashtra already allowed/employed licens…

Sterlite Infra Ltd, Chennai vs. ACIT 2(3), Mumbai

In the result, Ground Nos

ITA 7220/MUM/2012[2004-05]Status: DisposedITAT Mumbai10 Feb 2017AY 2004-05

Bench: S/Sh. Rajendra & Pawan Singhआयकर अपील सं/.Ita No. 7220/Mum/2012,"नधा"रण वष"/Assessment Year-2004-05 M/S Sterlite Infra Ltd. Acit -2(3), बनाम No.1, Sai Flats No.55, Pillaiyor Aayakar Bhavan, Koli Street, Kanagam, Mumbai-400020. Vs. Tharamani, Chennai-600113 Pan: Aafcs1424A (अपीलाथ" /Appellant) (""यथ" / Respondent) आयकर अपील सं/.Ita No. 7221/Mum/2012,"नधा"रण वष"/Assessment Year-2006-07 M/S Sterlite Infra Ltd. Acit -2(3), बनाम No.1, Sai Flats No.55, Pillaiyor Aayakar Bhavan, Koli Street, Kanagam, Mumbai-400020. Vs. Tharamani, Chennai-600113 Pan: Aafcs1424A (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri Vimal Punmiya (AR)For Respondent: Ms. Beena Santosh (DR)
Section 143(1)Section 143(3)Section 147Section 148Section 253Section 254(1)Section 37

…of Rs.24,08.211/- . During course of assessment proceedings for AY.2008-09, the assessee has confirmed before the AO, the business of the assessee was stopped in the year 1997. It is held by the Apex court in the case of CIT Vs. Lahore Electric Supply Co. Ltd 60 ITR 1 has held that loss relating to any business or professions discontinued before the commencement of previous year should not be allowed. 4. In the circumstances, I have reason to believe that income of Rs. 24,08.211/- has escaped assessment for AY.2004-05 in this case. Last date of issuing notice u/s.148 is 31.03.2011. Issue notice u/s. 148 of the Ac…

Khandelwal Infotech Ltd, Mumbai vs. DCIT 2(2), Mumbai

ITA 1315/MUM/2011[2007-08]Status: DisposedITAT Mumbai04 Apr 2016AY 2007-08
For Appellant: Shri Deepak TralshawalaFor Respondent: Shri Arvind Kumar
Section 254(1)Section 68

…आयकर अपीलीय अपीलीय अिधकरण अिधकरण," ए” खंडपीठ खंडपीठ मुंबई मुंबई आयकर आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण खंडपीठ खंडपीठ मुंबई मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-“A”,BENCH सव"ी जोिग"दर "सह, "याियक सद"य एवं राजे"", लेखा सद"य Before S/ShJoginder Singh,Judicial Member & Rajendra,Accountant Member आयकर अपील सं./ITA No./4119/Mum/2014,िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Years: 2006-07 वष" DCIT-2(2) Shri Arun Khandelwal Room No.545, Aayakar Bhavan, 102, Poonams,23,New India Society, 11th N.S. Road, JVPD Scheme, M.K. Road,Mumbai-400 020. Vs. Vile Parle(W),Mumbai-400 049. PAN:AHGPK 1833 N…

DCIT 2(2), Mumbai vs. Arun Khandelwal, Mumbai

ITA 4119/MUM/2014[2006-07]Status: DisposedITAT Mumbai09 Mar 2016AY 2006-07
For Appellant: Shri Deepak TralshawalaFor Respondent: Shri Arvind Kumar
Section 254(1)Section 68

…आयकर अपीलीय अपीलीय अिधकरण अिधकरण," ए” खंडपीठ खंडपीठ मुंबई मुंबई आयकर आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण खंडपीठ खंडपीठ मुंबई मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-“A”,BENCH सव"ी जोिग"दर "सह, "याियक सद"य एवं राजे"", लेखा सद"य Before S/ShJoginder Singh,Judicial Member & Rajendra,Accountant Member आयकर अपील सं./ITA No./4119/Mum/2014,िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Years: 2006-07 वष" DCIT-2(2) Shri Arun Khandelwal Room No.545, Aayakar Bhavan, 102, Poonams,23,New India Society, 11th N.S. Road, JVPD Scheme, M.K. Road,Mumbai-400 020. Vs. Vile Parle(W),Mumbai-400 049. PAN:AHGPK 1833 N…