Commissioner of Income Tax v. Godavari Plywoods

168 ITR 632High Court1987#8235 most cited

What is Commissioner of Income Tax v. Godavari Plywoods authority for?

When an assessee receives a subsidy towards the cost of capital assets, that subsidy must be reduced from the cost of the fixed assets for the purpose of calculating depreciation. This reduction affects the Written Down Value (WDV) of the asset.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2025.

Also referred to as

Godavari Plywoods · section 32(1)(ii) · section 43(1) · subsidy · cost of fixed assets · depreciation · written down value · WDV · capital assets

Sections most often in play

Section 143(3)Section 43(1)Section 32(1)(ii)Section 43Section 143(2)Section 2(24)Section 2(24)(xviii)Section 250

Issues it is cited on

construction pesection 43(1)section 32(1)(ii)written down valuemercantile system of accountingsection 43scrutiny assessmentreasonable causecondonation of delaytransferpersoncompany

Judgments citing Commissioner of Income Tax v. Godavari Plywoods

Puri Oil Mills Ltd., New Delhi vs. DCIT, Circle- 20(1), New Delhi

In the result, appeal of the assessee is allowed

ITA 1681/DEL/2018[2014-15]Status: DisposedITAT Delhi19 Dec 2025AY 2014-15

Bench: Vikas Awasthy & Shri Brajesh Kumar Singh

Section 143(2)Section 143(3)Section 2(24)Section 44Section 44ASection 5

…the cost of the capital assets installed by the assessee. The ld. AR further submitted that the decision of the apex court in the case of P.J. Chemical Ltd. (1994) 210 ITR 830 and the decision of the Andhra Pradesh High Court in Godavari Plywoods Ltd. (1987) 168 ITR 632 are applicable mutatis mutandis to the facts of the instant case. 10. The ld. Sr DR supported the order of the authorities below. 11. We have heard both the parties and perused the material on record. The issue in dispute in this appeal is regarding the claim of the assessee in not reducing an amount of Rs 4,86,00,000/- received as subsidy by the…

Mahua Bharatpur Expressways Limited (Formerly Known As Madhucon Agra- Jaipur Expressways Limited), Hyderabad vs. ACIT, Circle-16(2), Hyderabad

In the result, Revenue appeals for the A

ITA 308/HYD/2021[2013-14]Status: DisposedITAT Hyderabad02 Jun 2025AY 2013-14

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.आ.अपी.सं /Ita Nos.285 & 286/Hyd/2018 (िनधा"रण वष"/Assessment Years: 2013-14 & 2014-15)

For Appellant: Shri P Murali Mohan Rao, CAFor Respondent: Shri B Balakrishna, CIT (DR)
Section 43Section 43(1)

…onsideration. He has relied upon the following decisions as well as the impugned order of the learned CIT (A): i) Hon'ble Supreme Court in the case of CIT vs. P.J. Chemicals Ltd (210 ITR 830) ii) Hon'ble AP High Court in the case of CIT vs. Godavari Plywoods (168 ITR 632) iii) Hon'ble Karnataka High Court in the case of CIT vs. Diamond Dies Mfg. Corp (40 Taxman 34) iv) ITAT Kolkata in the case of Gloster Ltd v CIT in ITA No.828/Kol/2020 5. We have considered the rival submission as well as relevant material available on record. The Assessing Officer has made an addition by disallowing the part of depreciation as…

Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad vs. Madhucon Agra Jaipur Expressways Limited, Hyderabad

In the result, Revenue appeals for the A

ITA 286/HYD/2018[2014-15]Status: DisposedITAT Hyderabad02 Jun 2025AY 2014-15

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.आ.अपी.सं /Ita Nos.285 & 286/Hyd/2018 (िनधा"रण वष"/Assessment Years: 2013-14 & 2014-15)

For Appellant: Shri P Murali Mohan Rao, CAFor Respondent: Shri B Balakrishna, CIT (DR)
Section 43Section 43(1)

…onsideration. He has relied upon the following decisions as well as the impugned order of the learned CIT (A): i) Hon'ble Supreme Court in the case of CIT vs. P.J. Chemicals Ltd (210 ITR 830) ii) Hon'ble AP High Court in the case of CIT vs. Godavari Plywoods (168 ITR 632) iii) Hon'ble Karnataka High Court in the case of CIT vs. Diamond Dies Mfg. Corp (40 Taxman 34) iv) ITAT Kolkata in the case of Gloster Ltd v CIT in ITA No.828/Kol/2020 5. We have considered the rival submission as well as relevant material available on record. The Assessing Officer has made an addition by disallowing the part of depreciation as…

Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad vs. Madhucon Agra Jaipur Expressways Limited, Hyderabad

In the result, Revenue appeals for the A

ITA 285/HYD/2018[2013-14]Status: DisposedITAT Hyderabad02 Jun 2025AY 2013-14

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.आ.अपी.सं /Ita Nos.285 & 286/Hyd/2018 (िनधा"रण वष"/Assessment Years: 2013-14 & 2014-15)

For Appellant: Shri P Murali Mohan Rao, CAFor Respondent: Shri B Balakrishna, CIT (DR)
Section 43Section 43(1)

…onsideration. He has relied upon the following decisions as well as the impugned order of the learned CIT (A): i) Hon'ble Supreme Court in the case of CIT vs. P.J. Chemicals Ltd (210 ITR 830) ii) Hon'ble AP High Court in the case of CIT vs. Godavari Plywoods (168 ITR 632) iii) Hon'ble Karnataka High Court in the case of CIT vs. Diamond Dies Mfg. Corp (40 Taxman 34) iv) ITAT Kolkata in the case of Gloster Ltd v CIT in ITA No.828/Kol/2020 5. We have considered the rival submission as well as relevant material available on record. The Assessing Officer has made an addition by disallowing the part of depreciation as…

Joint CIT (OSD) Cent Cir. 1(4), Mumbai vs. Grasim Industries Ltd., Mumbai

In the result, all the appeals of the Revenue are dismissed

ITA 2155/MUM/2016[1996-97]Status: DisposedITAT Mumbai29 Apr 2022AY 1996-97
Section 143(3)

…re of revenue nature. Chemicals Ltd. v, CIT [1994] 209 ITR 508 (Cal.) The Supreme Court in Ponni Sugars (supra) after  CIT v. Godavari considering the decision of Sahney held that the only Plywood Ltd [1987] relevant test for identifying whether a subsidy is 168 ITR 632(AP) capital in nature or revenue is its Object i.e. if the  CIT v. P J Chemicals object is to set up a new unit of expansion of existing Ltd. [1994]210 ITR unit then it is revenue in nature but if it is to augment 830 (SC) profits then it is revenue in nature. The relevant para  K.C.P. Ltd.v. CIT of the said decision is reproduced below: [2001]…

The Commissioner of Income Tax vs. M/S Vardhman Industries Ltd

Appeals are partly allowed, in view of the

ITA/708/2004HC Delhi13 Jul 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 221Section 4

…unt of sales tax was in the nature of capital subsidy. Such amount was `7,27,71,570/-. During the course of assessment proceedings, the assessee also relied on decisions of the Andhra Pradesh High Court (in Commissioner of Income Tax v Godavari Plywoods 168 ITR 632); Bombay High Court (in Commissioner of Income Tax v Elys Plastics (1991)188 ITR 11) and the decision reported as Commissioner of Income Tax v P.J. Chemicals 210 ITR 830 (SC). However, the assessee’s claim was not found accepted by the AO. In the order, the Assessing Officer (AO) made these observations:- “(a) There is no doubt, that th…

Commissioner of Income Tax Delhi vs. M/S Bhushan Steels & Strips Ltd

Appeals are partly allowed, in view of the

ITA/317/2003HC Delhi13 Jul 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 221Section 4

…unt of sales tax was in the nature of capital subsidy. Such amount was `7,27,71,570/-. During the course of assessment proceedings, the assessee also relied on decisions of the Andhra Pradesh High Court (in Commissioner of Income Tax v Godavari Plywoods 168 ITR 632); Bombay High Court (in Commissioner of Income Tax v Elys Plastics (1991)188 ITR 11) and the decision reported as Commissioner of Income Tax v P.J. Chemicals 210 ITR 830 (SC). However, the assessee’s claim was not found accepted by the AO. In the order, the Assessing Officer (AO) made these observations:- “(a) There is no doubt, that th…

The Commissioner of the Income vs. M/S Vardhman Industries Ltd

Appeals are partly allowed, in view of the

ITA/725/2004HC Delhi13 Jul 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 221Section 4

…unt of sales tax was in the nature of capital subsidy. Such amount was `7,27,71,570/-. During the course of assessment proceedings, the assessee also relied on decisions of the Andhra Pradesh High Court (in Commissioner of Income Tax v Godavari Plywoods 168 ITR 632); Bombay High Court (in Commissioner of Income Tax v Elys Plastics (1991)188 ITR 11) and the decision reported as Commissioner of Income Tax v P.J. Chemicals 210 ITR 830 (SC). However, the assessee’s claim was not found accepted by the AO. In the order, the Assessing Officer (AO) made these observations:- “(a) There is no doubt, that th…

Commissioner of Income Tax Delhi vs. M/S Bhushan Steels & Strips Ltd

Appeals are partly allowed, in view of the

ITA/434/2005HC Delhi13 Jul 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 221Section 4

…unt of sales tax was in the nature of capital subsidy. Such amount was `7,27,71,570/-. During the course of assessment proceedings, the assessee also relied on decisions of the Andhra Pradesh High Court (in Commissioner of Income Tax v Godavari Plywoods 168 ITR 632); Bombay High Court (in Commissioner of Income Tax v Elys Plastics (1991)188 ITR 11) and the decision reported as Commissioner of Income Tax v P.J. Chemicals 210 ITR 830 (SC). However, the assessee’s claim was not found accepted by the AO. In the order, the Assessing Officer (AO) made these observations:- “(a) There is no doubt, that th…

Commissioner of Income Tax Delhi vs. M/S Bhushan Steels & Strips Ltd

Appeals are partly allowed, in view of the

ITA/316/2003HC Delhi13 Jul 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 221Section 4

…unt of sales tax was in the nature of capital subsidy. Such amount was `7,27,71,570/-. During the course of assessment proceedings, the assessee also relied on decisions of the Andhra Pradesh High Court (in Commissioner of Income Tax v Godavari Plywoods 168 ITR 632); Bombay High Court (in Commissioner of Income Tax v Elys Plastics (1991)188 ITR 11) and the decision reported as Commissioner of Income Tax v P.J. Chemicals 210 ITR 830 (SC). However, the assessee’s claim was not found accepted by the AO. In the order, the Assessing Officer (AO) made these observations:- “(a) There is no doubt, that th…

Commissioner of Income Tax Delhi vs. M/S Bhushan Steels & Strips Ltd

Appeals are partly allowed, in view of the

ITA/315/2003HC Delhi13 Jul 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 221Section 4

…unt of sales tax was in the nature of capital subsidy. Such amount was `7,27,71,570/-. During the course of assessment proceedings, the assessee also relied on decisions of the Andhra Pradesh High Court (in Commissioner of Income Tax v Godavari Plywoods 168 ITR 632); Bombay High Court (in Commissioner of Income Tax v Elys Plastics (1991)188 ITR 11) and the decision reported as Commissioner of Income Tax v P.J. Chemicals 210 ITR 830 (SC). However, the assessee’s claim was not found accepted by the AO. In the order, the Assessing Officer (AO) made these observations:- “(a) There is no doubt, that th…

The Godavari Sugar Mills Ltd., Mumbai vs. ACIT(OSD) RG.2(1), Mumbai

In the result, both the appeals of the assessee are treated as partly allowed for statistical purposes

ITA 2994/MUM/2010[2003-04]Status: DisposedITAT Mumbai08 Mar 2017AY 2003-04

Bench: Shri B.R. Baskaran (Am)& Shri Pawan Singh (Jm)

Section 115JSection 43(1)Section 80H

…IN THE INCOME TAX APPELLATE TRIBUNAL “G” Bench, Mumbai Before Shri B.R. Baskaran (AM)& Shri Pawan Singh (JM) I.T.A. No. 2994/Mum/2010 (Assessment Year 2003-04) I.T.A. No. 2995/Mum/2010 (Assessment Year 2004-05) The Godavari Sugar ACIT(OSD) 2(1) Mills Pvt. Ltd. Vs. Mumbai. 45-47, Somaiya Bhavan M.G. Road, Fort Mumbai-400 001. (Appellant) (Respondent) PAN No.AAACT5004A Assessee by Shri Vipul Joshi Department by Shri M.V. Rajguru Date of Hearing 3.2.2017 Date of Pronouncement 8.3.2017 O R D E R Per B.R. Baskaran (AM) :- Both these appeals filed by the assessee are directed against separate orders passed by…

Commissioner of Income Tax vs. Sri P.Sarveswara Rao

ITTA/434/2005HC Telangana14 Mar 2016

Bench: RAMESH RANGANATHAN,M.SATYANARAYANA MURTHY