Commissioner of Income-Tax v. Asian Star Co. Ltd.

326 ITR 56High Court2010#6350 most cited

What is Commissioner of Income-Tax v. Asian Star Co. Ltd. authority for?

Ninety percent of gross receipts by way of interest is excluded when determining profits under Explanation (baa) to Section 80HHC, not ninety percent of net receipts.

18

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2012 to 2023.

Also referred to as

Commissioner of Income-Tax v. Asian Star Co. Ltd. · 326 ITR 56 · Section 80HHC · Explanation (baa) · gross receipts · interest income · net receipts · deduction · profits of business

Judgments citing Commissioner of Income-Tax v. Asian Star Co. Ltd.

HINDUSTAN UNILEVER LTD,MUMBAI vs. ITO CIR 1(1)(4), MUMBAI

In the result, both the appeal of the assessee and the revenue are partly allowed

ITA 5431/MUM/2011[2001-02]Status: DisposedITAT Mumbai18 Aug 2023AY 2001-02

Bench: Shri Vikas Awasthy () & Ms. Padmavathy S. ()

Section 10BSection 80HSection 80I

…against the assessee and confirmed the order of the AO on this issue. (ii) Regarding deduction of 90% out of various receipts like interest, etc. the AO‟s action was upheld following the judgement of Hon‟ble Bombay High Court in the case of Asian Stars Co Ltd 326 ITR 56 (Bom). (iii) With regard to deduction u/s 80HHC on unrealised export profit of Rs.45,87,382/-, the Ld.CIT(A) held that the AO was justified in not allowing deduction on the unrealised export profit as the assessee has not taken the required permission from the CIT u/s 80HHC(2)(a). (iv) In respect of loss from export, the Ld.CIT(A) held that the AO…

M/S. SINGHAL ENTERPRISES PVT LTD.,KOLKATA vs. D.C.I.T., C.C. - 4(1), KOLKATA., KOLKATA

In the result, the both the appeals of the assessee ( in ITA No

ITA 1072/KOL/2018[2014-15]Status: DisposedITAT Kolkata26 Feb 2020AY 2014-15

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.1071 & 1072/Kol/2018 ("नधा"रणवष" / Assessment Years:2013-14 &2014-15)

For Appellant: Shri A.K. Tulsiyan, CAFor Respondent: Shri Ram Bilash Meena, CIT
Section 143(3)Section 263Section 80I

…evenue filed an appeal before the High Court and the High Court has directed that on remand the AO will decide the issue in accordance with the judgment of the High Court in CIT vs. Asian Star Co. Ltd. (2010) 231 CTR (Bom) 1 : (2010) 37 DTR (Bom) 209 : (2010) 326 ITR 56 (Bom) in which it has been held that while determining the profits of the business as defined in Expln. (baa) to s. 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working out the deduc…

M/S. SINGHAL ENTERPRISES PVT LTD.,KOLKATA vs. D.C.I.T., C.C. - 4(1), KOLKATA., KOLKATA

In the result, the both the appeals of the assessee ( in ITA No

ITA 1071/KOL/2018[2013-14]Status: DisposedITAT Kolkata26 Feb 2020AY 2013-14

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.1071 & 1072/Kol/2018 ("नधा"रणवष" / Assessment Years:2013-14 &2014-15)

For Appellant: Shri A.K. Tulsiyan, CAFor Respondent: Shri Ram Bilash Meena, CIT
Section 143(3)Section 263Section 80I

…evenue filed an appeal before the High Court and the High Court has directed that on remand the AO will decide the issue in accordance with the judgment of the High Court in CIT vs. Asian Star Co. Ltd. (2010) 231 CTR (Bom) 1 : (2010) 37 DTR (Bom) 209 : (2010) 326 ITR 56 (Bom) in which it has been held that while determining the profits of the business as defined in Expln. (baa) to s. 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working out the deduc…

ACIT, GURGAON vs. M/S. MOTOROLA INDIA PVT. LTD., GURGAON

In the result, appeal filed by the revenue is dismissed

ITA 4581/DEL/2011[2004-05]Status: DisposedITAT Delhi24 Aug 2018AY 2004-05

Bench: Smt Diva Singh & Shri Prashant Maharishimotorola India Pvt Ltd, Vs. Acit, Motorola Excellence Centre, Gurgaon Circle, 415/2, Sector-14, Mg Road, Gurgaon Gurgaon, Haryana Pan: Aaacm9343D (Appellant) (Respondent) Acit, Vs. Motorola India Pvt Ltd, Gurgaon Circle, Motorola Excellence Centre, Gurgaon 415/2, Sector-14, Mg Road, Gurgaon, Haryana Pan: Aaacm9343D (Appellant) (Respondent) Motorola Solutions India (P) Ltd, Vs. Acit, 415/2, Motorola Excellence Gurgaon Circle, Centre, Mg Road, Haryana Gurgaon Pan: Aaacm9343D (Appellant) (Respondent) Acit, Vs. Motorola Solutions India (P) Gurgaon Circle, Ltd, Gurgaon 415/2, Motorola Excellence Centre, Mg Road, Haryana Pan: Aaacm9343D (Appellant) (Respondent) Assessee By : Shri G.C. Srivastava, Adv Shri Suvinay K. Dash, Adv Revenue By: Shri Sanjay I Bara, Cit Dr Date Of Hearing 28/05/2018 Date Of Pronouncement 24/08/2018

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Sanjay I Bara, CIT DR
Section 37Section 43BSection 80HSection 92C

…d by the Revenue against the order of the Tribunal, the High Court has set aside the order of the Tribunal and directed the Assessing Officer to dispose of the issue in accordance with the judgment of the Bombay High Court in CIT v. Asian Star Co. Ltd. [2010] 326 ITR 56 (Bom). We must, thus, examine whether reasons given by the High Court in its judgment in CIT v. Asian Star Co. Ltd. [2010] 326 ITR 56 (Bom) were correct in law. 14. On a perusal of the judgment of the High Court in CIT v. Asian Star Co. Ltd. [2010] 326 ITR 56 (Bom), we find that the reason which weighed with the High Court for taking a different v…

ACIT,, LUDHIANA vs. M/S VARDHMAN TEXTILES LTD.,, LUDHIANA

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 575/CHANDI/2009[2005-06]Status: DisposedITAT Chandigarh04 May 2018AY 2005-06

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…ibunal, the Revenue filed an appeal before the High Court and the High Court has directed that on remand the Assessing Officer will decide the issue in accordance with the judgment of the High Court in Commissioner of Income-Tax v. Asian Star Co. Ltd. [(2010) 326 ITR 56 (Bom)] in which it has been held that while determining the profits of the business as defined in Explanation (baa) to Section 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working ou…

M/S VARDHMAN TEXTILES LTD.,,LUDHIANA vs. ADDL. CIT,, LUDHIANA

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 528/CHANDI/2009[2005-06]Status: DisposedITAT Chandigarh04 May 2018AY 2005-06

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…ibunal, the Revenue filed an appeal before the High Court and the High Court has directed that on remand the Assessing Officer will decide the issue in accordance with the judgment of the High Court in Commissioner of Income-Tax v. Asian Star Co. Ltd. [(2010) 326 ITR 56 (Bom)] in which it has been held that while determining the profits of the business as defined in Explanation (baa) to Section 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working ou…

ACIT,, LUDHIANA vs. M/S VARDHMAN TEXTILES LTD.,, LUDHIANA

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 981/CHANDI/2008[2004-05]Status: DisposedITAT Chandigarh04 May 2018AY 2004-05

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…ibunal, the Revenue filed an appeal before the High Court and the High Court has directed that on remand the Assessing Officer will decide the issue in accordance with the judgment of the High Court in Commissioner of Income-Tax v. Asian Star Co. Ltd. [(2010) 326 ITR 56 (Bom)] in which it has been held that while determining the profits of the business as defined in Explanation (baa) to Section 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working ou…

VARDHMAN TEXTILES LTD.,,LUDHIANA vs. JCIT,, LUDHIANA

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 938/CHANDI/2008[2004-05]Status: DisposedITAT Chandigarh04 May 2018AY 2004-05

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…ibunal, the Revenue filed an appeal before the High Court and the High Court has directed that on remand the Assessing Officer will decide the issue in accordance with the judgment of the High Court in Commissioner of Income-Tax v. Asian Star Co. Ltd. [(2010) 326 ITR 56 (Bom)] in which it has been held that while determining the profits of the business as defined in Explanation (baa) to Section 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working ou…

ACIT, LUDHIANA vs. M/S VARDHMAN TEXTILES LTD., LUDHIANA

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 530/CHANDI/2008[2003-04]Status: DisposedITAT Chandigarh04 May 2018AY 2003-04

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…ibunal, the Revenue filed an appeal before the High Court and the High Court has directed that on remand the Assessing Officer will decide the issue in accordance with the judgment of the High Court in Commissioner of Income-Tax v. Asian Star Co. Ltd. [(2010) 326 ITR 56 (Bom)] in which it has been held that while determining the profits of the business as defined in Explanation (baa) to Section 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working ou…

VARDHMAN TEXTILE LTD.,LUDHIANA vs. ACIT, LUDHIANA

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 475/CHANDI/2008[2003-04]Status: DisposedITAT Chandigarh04 May 2018AY 2003-04

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…ibunal, the Revenue filed an appeal before the High Court and the High Court has directed that on remand the Assessing Officer will decide the issue in accordance with the judgment of the High Court in Commissioner of Income-Tax v. Asian Star Co. Ltd. [(2010) 326 ITR 56 (Bom)] in which it has been held that while determining the profits of the business as defined in Explanation (baa) to Section 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working ou…

ACIT, LUDHIANA vs. VARDHMAN TEXTILES LTD., LUDHIANA

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 691/CHANDI/2007[2002-03]Status: DisposedITAT Chandigarh04 May 2018AY 2002-03

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…ibunal, the Revenue filed an appeal before the High Court and the High Court has directed that on remand the Assessing Officer will decide the issue in accordance with the judgment of the High Court in Commissioner of Income-Tax v. Asian Star Co. Ltd. [(2010) 326 ITR 56 (Bom)] in which it has been held that while determining the profits of the business as defined in Explanation (baa) to Section 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working ou…

M/S VARDHMAN TEXTILES LTD.,LUDHIANA vs. ACIT, LUDHIANA

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 681/CHANDI/2007[2002-03]Status: DisposedITAT Chandigarh04 May 2018AY 2002-03

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…ibunal, the Revenue filed an appeal before the High Court and the High Court has directed that on remand the Assessing Officer will decide the issue in accordance with the judgment of the High Court in Commissioner of Income-Tax v. Asian Star Co. Ltd. [(2010) 326 ITR 56 (Bom)] in which it has been held that while determining the profits of the business as defined in Explanation (baa) to Section 80HHC, ninety per cent of the gross receipts towards interest and not ninety per cent of the net receipts towards interest on fixed deposits in banks received by the assessee would be excluded for the purpose of working ou…

AL-AZI POLYMERS,MUMBAI vs. ASST CIT WD 21(3), MUMBAI

In the result, appeal of the assessee is partly allowed

ITA 633/MUM/2013[2009-10]Status: DisposedITAT Mumbai09 Feb 2018AY 2009-10

Bench: Shri D.T. Garasia & Shri Rajesh Kumarassessment Year: 2009-10 M/S. Al-Azi Polymers, The Asst. Commissioner 1 Net Industrial Estate, Of Income Tax, Andheri Kurla Road, Vs. Ward 21(3), Andheri East, Mumbai Mumbai – 400 072 Pan: Aagfa4589A (Appellant) (Respondent) Present For: Assessee By : Shri Bharat Gandhi, A.R. Revenue By : Shri Rajesh Kumar Yadav, D.R. Date Of Hearing : 08.01.2018 Date Of Pronouncement : 09.02.2018 O R D E R

For Appellant: Shri Bharat Gandhi, A.RFor Respondent: Shri Rajesh Kumar Yadav, D.R
Section 2(20)(e)Section 2(22)(e)

…arned the interest paid by the assessee also cannot be accepted because the interest earned is assessable under the income from other sources and has no direct nexus with the activity of the undertaking. Hon'ble Bombay High Court in the case of Asian Star Co. 326 ITR 56 (Bom) has held that interest earned on the FDRs cannot be treated against the interest incurred by the assessee for the purpose of claiming deduction u/s.80HHC. Since provisions of sec.80IB are pari-materia to the provisions of 80HHC, therefore netting of the interest cannot be allowed for purpose of computing deduction 80IB also. This view is als…

M/S. TATA INDUSTRIES LTD,MUMBAI vs. THE ITO 2(3)(3), MUMBAI

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

ITA 4894/MUM/2008[2004-2005]Status: DisposedITAT Mumbai20 Jul 2016AY 2004-2005

Bench: Shri G. S. Pannu, Accoutant Member & Shri Sanjay Gargtata Industries Ltd., Vs. The Income Tax Officer, Ward- Bombay House,24,Homi 2 (3) (3), Room No.555, Mody Street, Fort, Mumbai Aayakar Bhavan, Maharshi 400 001 Karve Road, Mumbai 400 020 Pan: Aaact 4058 L Appellant .. Respondent Appellant By Shri Dinesh Vyas, Ar Respondent By Shri Alok Johri, Dr Date Of Hearing 22-06-2016 Date Of Pronouncement 20-07-2016

Section 10ASection 115JSection 14ASection 36

…ibutors (Baroda)(P) Ltd [(1985) 155 ITR 120] while adjudicating the issue of netting of interest for consideration u/s. 80HHC of the Act. Hon’ble Supreme Court distinguished Hon’ble Bombay High Court decision in the case of CIT V/s. Asian Star Co. Ltd. (2010) 326 ITR 56 and overruled CIT V/s. Kalpataru Colours and Chemicals (2010) 192 Taxaman 435. At para 11 of that order Hon’ble Apex Court considered the difference between income and receipt following the ratio of Distributors (Baroda) Pvt. Ltd. (Supra). It is important to note here that one of the grounds of appellant is related to netting of interest for consi…

M/S. STRIDES ARCOLAB LTD.,NAVI MUMBAI vs. ITO - 10(3)(4), MUMBAI

In the result, assessee’s cross objection is partly allowed

ITA 641/MUM/2007[2003-2004]Status: DisposedITAT Mumbai29 Apr 2016AY 2003-2004

Bench: Shri Saktijit Dey & Shri Ashwani Taneja

For Appellant: Shri Nitesh JoshiFor Respondent: Shri N.K. Chand
Section 115JSection 35

…ssue has been settled by the Hon’ble Supreme Court in Associated Capsules Pvt. Ltd. v. CIT [(2012) 343 ITR 89 (SC)] by holding that netting of interest is permissible. The reliance of the ld. DR on the judgment in the case of CIT vs Asian Star Co. Ltd. (2010) 326 ITR 56 (Bom) is misconceived as the same has been reversed by the Hon’ble Supreme Court in the afore-noted case. As such no fault can be found with the impugned order on this score. This ground is not allowed.‖ 15.3. No contrary decision has been brought before us and therefore, respectfully following the order of the Tribunal in earlier year and judgmen…

ESSEL SHYAM COMMUNICATION LTD,NEW DELHI vs. ACIT CC-2, NEW DELHI

In the result, the appeal of the revenue is disposed off as above for statistical purposes

ITA 3265/DEL/2008[2005-2006]Status: DisposedITAT Delhi17 Mar 2016AY 2005-2006

Bench: Shri R.S. Syal & Shri A.T. Varkey

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Sunil Chander Sharma, CIT DR
Section 80Section 80I

…ninety per cent of such quantum of the receipt cannot be deducted under Explanation (baa) to Section 80HHC.” 20. The Supreme Court in ACG Associated Capsules (supra), did not approve the view of the Bombay High Court in CIT Vs. Asian Star Company Ltd. (2010) 326 ITR 56 (Bom.). 21. We have quoted Section 80IA (1) and (2A) above. For determining the income derived by an undertaking or enterprise, we have to compute the total income of the assessee from the business referred in sub-section (4) to Section 80IA. The words used in Section 80IA(1) and (2A) are “profit and gains of eligible business”. On the basis of sa…

ACIT CC-2, NEW DELHI vs. ESSEL SHYAM COMMUNICATION LTD, NEW DELHI

In the result, the appeal of the revenue is disposed off as above for statistical purposes

ITA 3176/DEL/2008[2005-2006]Status: DisposedITAT Delhi17 Mar 2016AY 2005-2006

Bench: Shri R.S. Syal & Shri A.T. Varkey

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Sunil Chander Sharma, CIT DR
Section 80Section 80I

…ninety per cent of such quantum of the receipt cannot be deducted under Explanation (baa) to Section 80HHC.” 20. The Supreme Court in ACG Associated Capsules (supra), did not approve the view of the Bombay High Court in CIT Vs. Asian Star Company Ltd. (2010) 326 ITR 56 (Bom.). 21. We have quoted Section 80IA (1) and (2A) above. For determining the income derived by an undertaking or enterprise, we have to compute the total income of the assessee from the business referred in sub-section (4) to Section 80IA. The words used in Section 80IA(1) and (2A) are “profit and gains of eligible business”. On the basis of sa…

ESSEL SHYAM COMMUNICATION LTD.

ITA/130/2011HC Delhi17 May 2012

Bench: The Tribunal Against The Order Of The First Appellate Authority. 2. By Order Dated 12Th July, 2011, The Following Substantial Questions Of Law Were Framed In The Respective Itas:-

Section 115JSection 80Section 80I

…er cent of such quantum of the receipt cannot be deducted under Explanation (baa) to Section 80HHC.” 20. The Supreme Court in ACG Associated Capsules (supra), did not approve the view of the Bombay High Court in CIT Vs. Asian Star Company Ltd.(2010) 326 ITR 56 (Bom.). 21. We have quoted Section 80IA (1) and (2A) above. For determining the income derived by an undertaking or enterprise, we have to compute the total income of the assessee from the 2012:DHC:3408-DB ITANo.130/2011 Page 21 of 23 business referred in sub-s…

Commissioner of Income-Tax v. Asian Star Co. Ltd. (326 ITR 56) — Cited in 18 Judgments | BharatTax