Commissioner of Income Tax v. Orient Abrasive Ltd.

271 CTR 626High Court2014#8361 most cited

What is Commissioner of Income Tax v. Orient Abrasive Ltd. authority for?

An internal comparable uncontrolled price (CUP) for electricity purchased by the assessee from a state power corporation represents the market rate and should be accepted for transfer pricing analysis, especially when it reflects the price at which other industrial consumers receive electricity.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2019 to 2025.

Also referred to as

CIT vs Orient Abrasive Ltd · transfer pricing · internal CUP · market rate · electricity purchase · comparable uncontrolled price · Section 92C · benchmarking

Issues it is cited on

section 10b(8)business transfer agreementintra group servicesmat creditdepreciation on goodwillfar analysissection 32(1)(ii)specified domestic transactiontested partyweighted deductionsection 35(2ab)deduction under section 80ia

Judgments citing Commissioner of Income Tax v. Orient Abrasive Ltd.

Srf Limited, Delhi vs. Assistant / Deputy Commissioner of Income Tax, Circle 10(1), New Delhi, Delhi

In the result, the appeal filed by the assessee is partly allowed as indicated above

ITA 5618/DEL/2024[2021-22]Status: DisposedITAT Delhi12 Dec 2025AY 2021-22
For Appellant: Shri Pradeep Dinodia, CAFor Respondent: Shri S.K. Jadhav, CIT DR
Section 143(3)Section 144C(13)Section 144C(5)Section 80Section 92C

…II v/s ITC Ltd. [2015] 64 taxman.com 214, Supreme Court of India in the case of ITC Limited v/s Commissioner of Income Tax Kolkata – III [2016] 74 taxman.com 244 and High Court of Delhi in the case of Commissioner of Income Tax v/s Orient Abrasive Ltd. [2014] 271 CTR 626. 55. Further, the Ld. AR reliance on the various judicial pronouncements advocating adoption of SEB rates for benchmarking transfer of electricity. - Gujarat Alkalies & Chemicals Ltd. [[2017] 88 taxmann.com 722 (Gujarat)] - Sial SBEC Bioenergy Ltd. {[2004] 4 SOT 730 (DELHI)} - Godavari Power & Ispat [2014] 42 taxmann.com 551 (Chhattisgarh) - Rel…

Srf Limited, Delhi vs. ACIT, Circle-10(1), Delhi

In the result, the appeal filed by the assessee is partly allowed as indicated above

ITA 1449/DEL/2022[2018-19]Status: DisposedITAT Delhi12 Dec 2025AY 2018-19
For Appellant: Shri Pradeep Dinodia, CAFor Respondent: Shri S.K. Jadhav, CIT DR
Section 143(3)Section 144C(13)Section 144C(5)Section 80Section 92C

…II v/s ITC Ltd. [2015] 64 taxman.com 214, Supreme Court of India in the case of ITC Limited v/s Commissioner of Income Tax Kolkata – III [2016] 74 taxman.com 244 and High Court of Delhi in the case of Commissioner of Income Tax v/s Orient Abrasive Ltd. [2014] 271 CTR 626. 55. Further, the Ld. AR reliance on the various judicial pronouncements advocating adoption of SEB rates for benchmarking transfer of electricity. - Gujarat Alkalies & Chemicals Ltd. [[2017] 88 taxmann.com 722 (Gujarat)] - Sial SBEC Bioenergy Ltd. {[2004] 4 SOT 730 (DELHI)} - Godavari Power & Ispat [2014] 42 taxmann.com 551 (Chhattisgarh) - Rel…

Srf Limited, New Delhi vs. ACIT, Circle-10(1), Delhi

In the result, the appeal filed by the assessee is partly allowed as indicated above

ITA 1448/DEL/2022[2017-18]Status: DisposedITAT Delhi12 Dec 2025AY 2017-18
For Appellant: Shri Pradeep Dinodia, CAFor Respondent: Shri S.K. Jadhav, CIT DR
Section 143(3)Section 144C(13)Section 144C(5)Section 80Section 92C

…II v/s ITC Ltd. [2015] 64 taxman.com 214, Supreme Court of India in the case of ITC Limited v/s Commissioner of Income Tax Kolkata – III [2016] 74 taxman.com 244 and High Court of Delhi in the case of Commissioner of Income Tax v/s Orient Abrasive Ltd. [2014] 271 CTR 626. 55. Further, the Ld. AR reliance on the various judicial pronouncements advocating adoption of SEB rates for benchmarking transfer of electricity. - Gujarat Alkalies & Chemicals Ltd. [[2017] 88 taxmann.com 722 (Gujarat)] - Sial SBEC Bioenergy Ltd. {[2004] 4 SOT 730 (DELHI)} - Godavari Power & Ispat [2014] 42 taxmann.com 551 (Chhattisgarh) - Rel…

Bharathi Cement Corporation Private Limited, Hyderabad vs. DCIT Circle-2(1), Hyderabad

In the result, the appeal of the assessee is allowed

ITA 159/HYD/2022[2017-18]Status: DisposedITAT Hyderabad17 Feb 2023AY 2017-18

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2017-18 Bharathi Cement Corporation Vs. Deputy Commissioner Of Private Limited, Income Tax, Hyderabad. Circle – 2(1), Hyderabad. Pan : Aadcr3079G. (Appellant) (Respondent) Assessee By: Shri S. Kalyanasundaram, Ca Revenue By: Shri Jeevan Lal Lavidiya, Cit-Dr Date Of Hearing: 14.02.2023 Date Of Pronouncement: 17.02.2023

For Appellant: Shri S. Kalyanasundaram, CAFor Respondent: Shri Jeevan Lal Lavidiya
Section 142(1)Section 143(2)Section 143(3)Section 144BSection 144CSection 144C(5)Section 80

…External CUP because as it neutralises several distinguishing factors such as local factors, economies available or unavailable to the assessee that may have a bearing on the price between unrelated parties. 9 Similarly, in CIT vs Orient Abrasive Ltd. [2014] 271 CTR 626, it has been held by the Delhi High Court that once there was a direct internal CUP, that is, the assessee had purchased power from the Punjab State Power Corporation at Rs. 7.57, then it represents the market rate on which any industrial undertaking or consumer is getting electricity and there was, thus, no reason why such market rate or CUP sho…

DCIT, Moradabad vs. Sh. Jubilant Life Sciences Ltd., Uttar Pradesh

In the result, the appeal is partly allowed

ITA 6196/DEL/2014[2010-11]Status: DisposedITAT Delhi28 Feb 2022AY 2010-11

Bench: Shri Saktijit Dey & Dr. B.R.R. Kumarassessment Year: 2009-10

…power is not supplied to public but it is for captive consumption and therefore no deduction under section 80 IA of income tax act is allowable is also now judicially settled by decision of honourable Delhi High Court in case of CIT vs. Orient Abrasives Ltd [271 CTR 626] wherein honourable Delhi High Court has held where substantial question of law before honourable High Court was Whether "profit and gain" from captive consumption of electricity supplied from generator set and which cannot be sold to any third person will qualify for deduction under Section 80-IA of Income Tax Act, 1961?. The honourable High Cou…

DCIT, Moradabad vs. M/S. Jubilant Organosyes Ltd., Uttar Pradesh

In the result, the appeal is partly allowed

ITA 4827/DEL/2014[2009-10]Status: DisposedITAT Delhi28 Feb 2022AY 2009-10

Bench: Shri Saktijit Dey & Dr. B.R.R. Kumarassessment Year: 2009-10

…power is not supplied to public but it is for captive consumption and therefore no deduction under section 80 IA of income tax act is allowable is also now judicially settled by decision of honourable Delhi High Court in case of CIT vs. Orient Abrasives Ltd [271 CTR 626] wherein honourable Delhi High Court has held where substantial question of law before honourable High Court was Whether "profit and gain" from captive consumption of electricity supplied from generator set and which cannot be sold to any third person will qualify for deduction under Section 80-IA of Income Tax Act, 1961?. The honourable High Cou…

M/S. Jubilant Life Sciences Limited, Noida vs. Addl.CIT, Moradabad

In the result, the appeal is partly allowed

ITA 4638/DEL/2014[2010-11]Status: DisposedITAT Delhi28 Feb 2022AY 2010-11

Bench: Shri Saktijit Dey & Dr. B.R.R. Kumarassessment Year: 2009-10

…power is not supplied to public but it is for captive consumption and therefore no deduction under section 80 IA of income tax act is allowable is also now judicially settled by decision of honourable Delhi High Court in case of CIT vs. Orient Abrasives Ltd [271 CTR 626] wherein honourable Delhi High Court has held where substantial question of law before honourable High Court was Whether "profit and gain" from captive consumption of electricity supplied from generator set and which cannot be sold to any third person will qualify for deduction under Section 80-IA of Income Tax Act, 1961?. The honourable High Cou…

M/S. Jubilant Life Sciences Limited, Noida vs. Addl.CIT, Moradabad

In the result, the appeal is partly allowed

ITA 4637/DEL/2014[2009-10]Status: DisposedITAT Delhi28 Feb 2022AY 2009-10

Bench: Shri Saktijit Dey & Dr. B.R.R. Kumarassessment Year: 2009-10

…power is not supplied to public but it is for captive consumption and therefore no deduction under section 80 IA of income tax act is allowable is also now judicially settled by decision of honourable Delhi High Court in case of CIT vs. Orient Abrasives Ltd [271 CTR 626] wherein honourable Delhi High Court has held where substantial question of law before honourable High Court was Whether "profit and gain" from captive consumption of electricity supplied from generator set and which cannot be sold to any third person will qualify for deduction under Section 80-IA of Income Tax Act, 1961?. The honourable High Cou…

M/S Nectar Lifescience Ltd., Chandigarh vs. DCIT, C-1(1), Chandigarh

In the result, appeal of the assessee is allowed

ITA 1497/CHANDI/2019[2015-16]Status: DisposedITAT Chandigarh17 Feb 2022AY 2015-16
For Appellant: Shri Yogesh Monga, CAFor Respondent: Shri Sarabjeet Singh, CIT, DR
Section 144C(13)Section 144C(5)Section 271Section 80

…nsee from consumer and such benefit could only be claimed on basis of rates fixed by Tariff Regulation Commission for sale of electricity by generating companies. d. High Court of Delhi in the case of Commissioner of Income Tax v/s Orient Abrasive Ltd. [2014] 271 CTR 626. 20. Once there was a direct internal CUP, i.e., the assessee company had purchased electricity from Punjab State Power Corporation at Rs.7.57, then it represents the market rate on which any industry undertaking or consumer is getting the electricity. Thus, we do not find any reason as to why such market rate or CUP should be rejected. Nowhere,…

Nectar Lifesciences Ltd., Chandigarh vs. ACIT, Circle- 18(1), New Delhi

In the result, the additions, made by the Assessing

ITA 567/DEL/2019[2014-15]Status: PendingITAT Delhi13 Sept 2021AY 2014-15

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Shri Yogesh Monga, CAFor Respondent: Ms. Meera Srivastava, CIT-DR
Section 143(3)Section 80

…enefit I.T.A. No.567/DEL/2019 22 could only be claimed on basis of rates fixed by Tariff Regulation Commission for sale of electricity by generating companies. d. High Court of Delhi in the case of Commissioner of Income Tax v/s Orient Abrasive Ltd. [2014] 271 CTR 626. 20. Once there was a direct internal CUP, i.e., the assessee company had purchased electricity from Punjab State Power Corporation at Rs.7.57, then it represents the market rate on which any industry undertaking or consumer is getting the electricity. Thus, we do not find any reason as to why such market rate or CUP should be rejected. Nowhere,…

ACIT, Moradabad vs. M/S. Jubilant Organosyes Ltd., Uttar Pradesh

The appeal is dismissed

ITA 4975/DEL/2012[2008-09]Status: DisposedITAT Delhi12 Mar 2019AY 2008-09

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…om taking benefit of u/s 115JA, it was held that “ contention that assessee has not sold power generated by power undertaking to any outsider but has consumed 100% generated by its unit does not disentitle him u/s 115JA”. CIT vs. Orient Abrasive Ltd. [(2014) 271 CTR 626 (Del)] - Hon‟ble Delhi High Court- In context of deduction under section 80-IA of Act, it was held that “profit and gain” from captive consumption of electricity supplied from generator set and which cannot be sold to any third person will qualify for deduction under Section 80-IA of Act. In arriving at this conclusion, Hon‟ble Court relied on it…

ACIT, Moradabad vs. M/S Jubliant Organosys Ltd., Uttar Pradesh

The appeal is dismissed

ITA 2596/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…om taking benefit of u/s 115JA, it was held that “ contention that assessee has not sold power generated by power undertaking to any outsider but has consumed 100% generated by its unit does not disentitle him u/s 115JA”. CIT vs. Orient Abrasive Ltd. [(2014) 271 CTR 626 (Del)] - Hon‟ble Delhi High Court- In context of deduction under section 80-IA of Act, it was held that “profit and gain” from captive consumption of electricity supplied from generator set and which cannot be sold to any third person will qualify for deduction under Section 80-IA of Act. In arriving at this conclusion, Hon‟ble Court relied on it…

Jubilant Organosys Ltd., Noida vs. Addl. CIT, Moradabad

The appeal is dismissed

ITA 2497/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…om taking benefit of u/s 115JA, it was held that “ contention that assessee has not sold power generated by power undertaking to any outsider but has consumed 100% generated by its unit does not disentitle him u/s 115JA”. CIT vs. Orient Abrasive Ltd. [(2014) 271 CTR 626 (Del)] - Hon‟ble Delhi High Court- In context of deduction under section 80-IA of Act, it was held that “profit and gain” from captive consumption of electricity supplied from generator set and which cannot be sold to any third person will qualify for deduction under Section 80-IA of Act. In arriving at this conclusion, Hon‟ble Court relied on it…