Commissioner of Income Tax v. Rassi Cements Ltd.

351 ITR 169High Court2013#7873 most cited

What is Commissioner of Income Tax v. Rassi Cements Ltd. authority for?

Subsidies received after commencement of production are of a revenue character and are taxable accordingly, particularly when the purpose of the subsidy is to assist in carrying out business operations rather than setting up the business.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2022 to 2025.

Also referred to as

CIT v Rassi Cements Ltd · 351 ITR 169 · revenue receipt · business operations subsidy · commencement of production · purpose test · sales tax subsidy · excise duty incentive

Sections most often in play

Section 143(2)Section 143(3)Section 2(24)Section 2(24)(xviii)Section 43Section 43(1)Section 44ABSection 5

Judgments citing Commissioner of Income Tax v. Rassi Cements Ltd.

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

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, F: NEW DELHI BEFORE VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.- 1681/Del/2018 [Assessment Year: 2014-15] Puri Oil Mills Limited, The ACIT/ DCIT, 302, Jyoti Shikhar, Janak Puri, Circle 20(1), New Delhi- 110058. Vs IP Estate, Room no. 219, New Delhi. PAN- AAACP3653M Assessee Revenue Assessee by Shri S.K. Vatta, CA Revenue by Ms. Harpreet Kaur Hansra, Sr. DR Date of Hearing 24.09.2025 Date of Pronouncement 19.12.2025 ORDER PER BRAJESH KUMAR SINGH, AM, This appeal by the assessee is directed against the order of the le…

Commissioner of Income Tax-IV vs. Mis Indo Rama Textiles Ltd

The appeals are disposed of in the aforesaid terms

ITA/395/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…pital outlay of the industrial unit. The sales tax subsidy provided to the respondent/assessee only assisted in carrying on business operations and, thus, was in the nature of a revenue receipt. [See Commissioner of Income Tax v. Rassi Cements Ltd. (2013) 351 ITR 169 (Andhra Pradesh); Wardex Pharmaceuticals (P.) Ltd. v. Assistant Commissioner of Income Tax (2008) 307 ITR 387 (Madras) and Commissioner of Income Tax v. Steel Authority of India Ltd. (2002) 257 ITR 241 (Delhi)] (v) Since the incentive concerned sales tax, the receipt inherently can only be construed as a revenue receipt. (vi) The judgmen…

Commissioner of Income Tax-IV vs. Mis Indo Rama Synthetics Ltd

The appeals are disposed of in the aforesaid terms

ITA/396/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…pital outlay of the industrial unit. The sales tax subsidy provided to the respondent/assessee only assisted in carrying on business operations and, thus, was in the nature of a revenue receipt. [See Commissioner of Income Tax v. Rassi Cements Ltd. (2013) 351 ITR 169 (Andhra Pradesh); Wardex Pharmaceuticals (P.) Ltd. v. Assistant Commissioner of Income Tax (2008) 307 ITR 387 (Madras) and Commissioner of Income Tax v. Steel Authority of India Ltd. (2002) 257 ITR 241 (Delhi)] (v) Since the incentive concerned sales tax, the receipt inherently can only be construed as a revenue receipt. (vi) The judgmen…

Commissioner of Income Tax-IV vs. Mis Indo Rama Textiles Ltd

The appeals are disposed of in the aforesaid terms

ITA/392/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…pital outlay of the industrial unit. The sales tax subsidy provided to the respondent/assessee only assisted in carrying on business operations and, thus, was in the nature of a revenue receipt. [See Commissioner of Income Tax v. Rassi Cements Ltd. (2013) 351 ITR 169 (Andhra Pradesh); Wardex Pharmaceuticals (P.) Ltd. v. Assistant Commissioner of Income Tax (2008) 307 ITR 387 (Madras) and Commissioner of Income Tax v. Steel Authority of India Ltd. (2002) 257 ITR 241 (Delhi)] (v) Since the incentive concerned sales tax, the receipt inherently can only be construed as a revenue receipt. (vi) The judgmen…

Commissioner of Income Tax-IV vs. Mis Indo Rama Synthetics Ltd

The appeals are disposed of in the aforesaid terms

ITA/397/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…pital outlay of the industrial unit. The sales tax subsidy provided to the respondent/assessee only assisted in carrying on business operations and, thus, was in the nature of a revenue receipt. [See Commissioner of Income Tax v. Rassi Cements Ltd. (2013) 351 ITR 169 (Andhra Pradesh); Wardex Pharmaceuticals (P.) Ltd. v. Assistant Commissioner of Income Tax (2008) 307 ITR 387 (Madras) and Commissioner of Income Tax v. Steel Authority of India Ltd. (2002) 257 ITR 241 (Delhi)] (v) Since the incentive concerned sales tax, the receipt inherently can only be construed as a revenue receipt. (vi) The judgmen…

Commissioner of Income Tax-IV vs. Mis Indo Rama Synthetics (I) Ltd

The appeals are disposed of in the aforesaid terms

ITA/394/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…pital outlay of the industrial unit. The sales tax subsidy provided to the respondent/assessee only assisted in carrying on business operations and, thus, was in the nature of a revenue receipt. [See Commissioner of Income Tax v. Rassi Cements Ltd. (2013) 351 ITR 169 (Andhra Pradesh); Wardex Pharmaceuticals (P.) Ltd. v. Assistant Commissioner of Income Tax (2008) 307 ITR 387 (Madras) and Commissioner of Income Tax v. Steel Authority of India Ltd. (2002) 257 ITR 241 (Delhi)] (v) Since the incentive concerned sales tax, the receipt inherently can only be construed as a revenue receipt. (vi) The judgmen…

Cornmisstorrer of Income Tax-IV vs. Mis Indo Rama Synthetics Ltd

The appeals are disposed of in the aforesaid terms

ITA/398/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…pital outlay of the industrial unit. The sales tax subsidy provided to the respondent/assessee only assisted in carrying on business operations and, thus, was in the nature of a revenue receipt. [See Commissioner of Income Tax v. Rassi Cements Ltd. (2013) 351 ITR 169 (Andhra Pradesh); Wardex Pharmaceuticals (P.) Ltd. v. Assistant Commissioner of Income Tax (2008) 307 ITR 387 (Madras) and Commissioner of Income Tax v. Steel Authority of India Ltd. (2002) 257 ITR 241 (Delhi)] (v) Since the incentive concerned sales tax, the receipt inherently can only be construed as a revenue receipt. (vi) The judgmen…

ACIT, Ncc-8, Chennai vs. Saint Gobain India Pvt Ltd, Chennai

In the result, the appeal in ITA No

ITA 585/CHNY/2021[2011-12]Status: DisposedITAT Chennai20 Dec 2023AY 2011-12

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. Nos.581 & 585/Chny/2021 िनधा"रण वष"/Assessment Year: 2011-12 The Deputy Commissioner Of Vs. M/S. Saint-Gobain India Pvt. Ltd. Income Tax, Non Corporate Circle 8, [Formerly Known As M/S. Saint-Gobain Room No. 507, 5Th Floor, Annexe Glass India Ltd.], 18/3, Sigapi Achi Building, 7Th Floor, Rukmini Lakshmipathi Building, No. 121, M.G. Road, Chennai -600 034. Road, Egmore, Chennai 600 008. [Pan:Aabcs4338M] (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By Shri Ar V Sreenivasan, Addl. Cit : ""थ" की ओर से/Respondent By Shri R. Vijayaragahavan, Advocate & : Shri Saroj Kumar Parida, Advocate सुनवाई की तारीख/ Date Of Hearing 11.12.2023 : घोषणा की तारीख /Date Of Pronouncement : 20.12.2023 आदेश /O R D E R Per V. Durga Rao: The Appeal In Ita No. 581/Chny/2021 Filed By The Revenue Is Directed Against The Assessment Order Passed Under Section 143(3) R.W.S. 92Ca Of The Income Tax Act, 1961 [“Act” In Short] Dated 28.02.2015 For The Assessment Year 2011-12 & The Other Appeal In Ita No. 585/Chny/2021 Is Directed Against The Order Of The Ld. Commissioner Of 2

Section 143(3)Section 40

…siness. Since purpose of giving subsidy was to assist in carrying out business operations, it is revenue receipt as held in DCIT Vs A P State Electricity Board (ITAT, Hyd TM) 130 ITD I. Decision of CIT Vs Rassi 9 I.T.A. Nos.581 & 585/Chny/21 Cements Ltd (AP 351 ITR 169) and Brakes India Limited VS JCIT Madras) 363 ITR 13 also supports this view. In the earlier years the waiver of commercial taxes was given. Accordingly the assessee did not remit any taxes to the state government. The tax collected by it was offered to tax. Thus in this case, the VAT collected and remitted by it to the government is returned as…

ACIT, Ncc-8, Chennai vs. Saint Gobain India P Ltd, Chennai

In the result, the appeal in ITA No

ITA 581/CHNY/2021[2011-12]Status: DisposedITAT Chennai20 Dec 2023AY 2011-12

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. Nos.581 & 585/Chny/2021 िनधा"रण वष"/Assessment Year: 2011-12 The Deputy Commissioner Of Vs. M/S. Saint-Gobain India Pvt. Ltd. Income Tax, Non Corporate Circle 8, [Formerly Known As M/S. Saint-Gobain Room No. 507, 5Th Floor, Annexe Glass India Ltd.], 18/3, Sigapi Achi Building, 7Th Floor, Rukmini Lakshmipathi Building, No. 121, M.G. Road, Chennai -600 034. Road, Egmore, Chennai 600 008. [Pan:Aabcs4338M] (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By Shri Ar V Sreenivasan, Addl. Cit : ""थ" की ओर से/Respondent By Shri R. Vijayaragahavan, Advocate & : Shri Saroj Kumar Parida, Advocate सुनवाई की तारीख/ Date Of Hearing 11.12.2023 : घोषणा की तारीख /Date Of Pronouncement : 20.12.2023 आदेश /O R D E R Per V. Durga Rao: The Appeal In Ita No. 581/Chny/2021 Filed By The Revenue Is Directed Against The Assessment Order Passed Under Section 143(3) R.W.S. 92Ca Of The Income Tax Act, 1961 [“Act” In Short] Dated 28.02.2015 For The Assessment Year 2011-12 & The Other Appeal In Ita No. 585/Chny/2021 Is Directed Against The Order Of The Ld. Commissioner Of 2

Section 143(3)Section 40

…siness. Since purpose of giving subsidy was to assist in carrying out business operations, it is revenue receipt as held in DCIT Vs A P State Electricity Board (ITAT, Hyd TM) 130 ITD I. Decision of CIT Vs Rassi 9 I.T.A. Nos.581 & 585/Chny/21 Cements Ltd (AP 351 ITR 169) and Brakes India Limited VS JCIT Madras) 363 ITR 13 also supports this view. In the earlier years the waiver of commercial taxes was given. Accordingly the assessee did not remit any taxes to the state government. The tax collected by it was offered to tax. Thus in this case, the VAT collected and remitted by it to the government is returned as…

ACIT, Central Circle, Moradabad vs. Genus Electrotech Ltd., Ahamedabad

ITA 9516/DEL/2019[2010-11]Status: DisposedITAT Delhi04 Aug 2022AY 2010-11
For Appellant: Shri Mayank Patawari, CAFor Respondent: Md. Gayasuddin Ansari, Senior DR
Section 115JSection 143Section 143(3)Section 154Section 250

…and are of revenue character and therefore have to be taxed accordingly as observed by Hon'ble Supreme Court in the case of Sahney Steel and Press Works Ltd. Vs CIT [228 ITR 253 (SC)], CIT Vs Bhushan Steel & Strips 3981TR 216 (Delhi) and CIT Vs Raasi Cements 351 ITR 169 (AP). 3. On facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the additions on account of Sales Tax Subsidy of Rs.12,74,46,4801- and Excise Duty incentive of Rs.7,90,94,513/- made for the purpose of income computation u/s 115JB in the circumstances when these receipts are of revenue character when examined from the ang…

ACIT, Central Circle, Moradabad vs. Genus Electrotech Ltd., Ahamedabad

ITA 9515/DEL/2019[2009-10]Status: DisposedITAT Delhi04 Aug 2022AY 2009-10
For Appellant: Shri Mayank Patawari, CAFor Respondent: Md. Gayasuddin Ansari, Senior DR
Section 115JSection 143Section 143(3)Section 154Section 250

…and are of revenue character and therefore have to be taxed accordingly as observed by Hon'ble Supreme Court in the case of Sahney Steel and Press Works Ltd. Vs CIT [228 ITR 253 (SC)], CIT Vs Bhushan Steel & Strips 3981TR 216 (Delhi) and CIT Vs Raasi Cements 351 ITR 169 (AP). 3. On facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the additions on account of Sales Tax Subsidy of Rs.12,74,46,4801- and Excise Duty incentive of Rs.7,90,94,513/- made for the purpose of income computation u/s 115JB in the circumstances when these receipts are of revenue character when examined from the ang…

ACIT, Central Circle, Moradabad vs. Genus Electrotech Ltd., Ahamedabad

ITA 9514/DEL/2019[2008-09]Status: DisposedITAT Delhi04 Aug 2022AY 2008-09
For Appellant: Shri Mayank Patawari, CAFor Respondent: Md. Gayasuddin Ansari, Senior DR
Section 115JSection 143Section 143(3)Section 154Section 250

…and are of revenue character and therefore have to be taxed accordingly as observed by Hon'ble Supreme Court in the case of Sahney Steel and Press Works Ltd. Vs CIT [228 ITR 253 (SC)], CIT Vs Bhushan Steel & Strips 3981TR 216 (Delhi) and CIT Vs Raasi Cements 351 ITR 169 (AP). 3. On facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the additions on account of Sales Tax Subsidy of Rs.12,74,46,4801- and Excise Duty incentive of Rs.7,90,94,513/- made for the purpose of income computation u/s 115JB in the circumstances when these receipts are of revenue character when examined from the ang…

ACIT, Central Circle, Moradabad vs. Genus Electrotech Ltd., Ahamedabad

ITA 9513/DEL/2019[2007-08]Status: DisposedITAT Delhi04 Aug 2022AY 2007-08
For Appellant: Shri Mayank Patawari, CAFor Respondent: Md. Gayasuddin Ansari, Senior DR
Section 115JSection 143Section 143(3)Section 154Section 250

…and are of revenue character and therefore have to be taxed accordingly as observed by Hon'ble Supreme Court in the case of Sahney Steel and Press Works Ltd. Vs CIT [228 ITR 253 (SC)], CIT Vs Bhushan Steel & Strips 3981TR 216 (Delhi) and CIT Vs Raasi Cements 351 ITR 169 (AP). 3. On facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the additions on account of Sales Tax Subsidy of Rs.12,74,46,4801- and Excise Duty incentive of Rs.7,90,94,513/- made for the purpose of income computation u/s 115JB in the circumstances when these receipts are of revenue character when examined from the ang…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

ITA 2418/AHD/2017[2007-08]Status: DisposedITAT Delhi04 Aug 2022AY 2007-08
For Appellant: Shri Mayank Patawari, CAFor Respondent: Md. Gayasuddin Ansari, Senior DR
Section 115JSection 143Section 143(3)Section 154Section 250

…and are of revenue character and therefore have to be taxed accordingly as observed by Hon'ble Supreme Court in the case of Sahney Steel and Press Works Ltd. Vs CIT [228 ITR 253 (SC)], CIT Vs Bhushan Steel & Strips 3981TR 216 (Delhi) and CIT Vs Raasi Cements 351 ITR 169 (AP). 3. On facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the additions on account of Sales Tax Subsidy of Rs.12,74,46,4801- and Excise Duty incentive of Rs.7,90,94,513/- made for the purpose of income computation u/s 115JB in the circumstances when these receipts are of revenue character when examined from the ang…

Commissioner of Income Tax v. Rassi Cements Ltd. (351 ITR 169) — Cited in 14 Judgments | BharatTax