DCW Ltd. v. ACIT

Saf Yeast Company P.Ltd, Mumbai vs. Asst CIT Cen Cir 40, Mumbai

In the result the appeal of the assessee for AY 2009-10 is partly allowed

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

…steam” is a 10 M/s. Saf Yeast Company Private Limited form of power as contemplated u/s 80IA of the Act. The same view has been expressed in the following cases also:- (a) DCIT Vs. Maharaja Shree Umaid Mills Ltd (2009)(120 TTJ (Jp) 711) (b) DCW Ltd Vs. ACIT (37 SOT 322)(Mum) (c) Tanfac Industries Ltd (Case No.1773 of 2008)(Mad HC) 20. The Tribunal has discussed in detail various arguments advanced by the assessee in respect of Refrigeration/cooling power in paragraph 18 to 23 of its order. The assessee has placed reliance on the International Patent Number W02004094928 on Cooling power titled Absorption Chiller…

DCIT Cen Cir 40, Mumbai vs. Saf Yeast Co. P. Ltd, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…tion 80IA of the Act only for generation of electricity, it would have been specifically mentioned by using the term ‘Electrical Power’ instead of the connotation as ‘Power’ which is omnibus. Similarly, the Mumbai Bench of ITAT in the case of DCW Ltd vs ACIT (37 SOT 322) relied on the decision of Hon’ble Madras High Court in the case of Tanfac Industries Ltd (Supra) and held in Para 18.9 that steam produced by the assessee is eligible unit and income from sale of steam is the income derived from industrial undertaking, therefore, deduction under section 80-IA is allowable. The Hon’ble Madras High Court in the cas…

DCIT Cen Cir 40, Mumbai vs. Saf Yeast Co. P. Ltd, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…tion 80IA of the Act only for generation of electricity, it would have been specifically mentioned by using the term ‘Electrical Power’ instead of the connotation as ‘Power’ which is omnibus. Similarly, the Mumbai Bench of ITAT in the case of DCW Ltd vs ACIT (37 SOT 322) relied on the decision of Hon’ble Madras High Court in the case of Tanfac Industries Ltd (Supra) and held in Para 18.9 that steam produced by the assessee is eligible unit and income from sale of steam is the income derived from industrial undertaking, therefore, deduction under section 80-IA is allowable. The Hon’ble Madras High Court in the cas…

DCIT Cen Cir 40, Mumbai vs. Saf Yeast Co. P. Ltd, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…tion 80IA of the Act only for generation of electricity, it would have been specifically mentioned by using the term ‘Electrical Power’ instead of the connotation as ‘Power’ which is omnibus. Similarly, the Mumbai Bench of ITAT in the case of DCW Ltd vs ACIT (37 SOT 322) relied on the decision of Hon’ble Madras High Court in the case of Tanfac Industries Ltd (Supra) and held in Para 18.9 that steam produced by the assessee is eligible unit and income from sale of steam is the income derived from industrial undertaking, therefore, deduction under section 80-IA is allowable. The Hon’ble Madras High Court in the cas…

Saf Yeast Company P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…tion 80IA of the Act only for generation of electricity, it would have been specifically mentioned by using the term ‘Electrical Power’ instead of the connotation as ‘Power’ which is omnibus. Similarly, the Mumbai Bench of ITAT in the case of DCW Ltd vs ACIT (37 SOT 322) relied on the decision of Hon’ble Madras High Court in the case of Tanfac Industries Ltd (Supra) and held in Para 18.9 that steam produced by the assessee is eligible unit and income from sale of steam is the income derived from industrial undertaking, therefore, deduction under section 80-IA is allowable. The Hon’ble Madras High Court in the cas…

Saf Yeast Company P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…tion 80IA of the Act only for generation of electricity, it would have been specifically mentioned by using the term ‘Electrical Power’ instead of the connotation as ‘Power’ which is omnibus. Similarly, the Mumbai Bench of ITAT in the case of DCW Ltd vs ACIT (37 SOT 322) relied on the decision of Hon’ble Madras High Court in the case of Tanfac Industries Ltd (Supra) and held in Para 18.9 that steam produced by the assessee is eligible unit and income from sale of steam is the income derived from industrial undertaking, therefore, deduction under section 80-IA is allowable. The Hon’ble Madras High Court in the cas…

Saf Yeast Company P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…tion 80IA of the Act only for generation of electricity, it would have been specifically mentioned by using the term ‘Electrical Power’ instead of the connotation as ‘Power’ which is omnibus. Similarly, the Mumbai Bench of ITAT in the case of DCW Ltd vs ACIT (37 SOT 322) relied on the decision of Hon’ble Madras High Court in the case of Tanfac Industries Ltd (Supra) and held in Para 18.9 that steam produced by the assessee is eligible unit and income from sale of steam is the income derived from industrial undertaking, therefore, deduction under section 80-IA is allowable. The Hon’ble Madras High Court in the cas…

Saf Yeast Company P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…tion 80IA of the Act only for generation of electricity, it would have been specifically mentioned by using the term ‘Electrical Power’ instead of the connotation as ‘Power’ which is omnibus. Similarly, the Mumbai Bench of ITAT in the case of DCW Ltd vs ACIT (37 SOT 322) relied on the decision of Hon’ble Madras High Court in the case of Tanfac Industries Ltd (Supra) and held in Para 18.9 that steam produced by the assessee is eligible unit and income from sale of steam is the income derived from industrial undertaking, therefore, deduction under section 80-IA is allowable. The Hon’ble Madras High Court in the cas…

DCIT CC 3(4) Cen RG 3, Mumbai vs. Patel Engineering Ltd, Mumbai

In the result, appeal of the Revenue is dismissed and the cross objection of the Assessee is allowed in part in terms indicated herein above

Bench: Shri C.N. Prasad & Shri Ashwani Taneja

…vel workshop cannot be reduced while computing "income derived from" the project though such expenses may be attributable to the infrastructure facility. Reliance was placed on the decision of the coordinate bench of the Tribunal in DCW Ltd. v. Additional CIT 37 SOT 322 (Mum), wherein it was held that indirect expenses not directly relatable to the unit cannot but be ignored while computing income "derived from", Further reliance was placed on decision of the Hon'ble Apex Court in Liberty India v. (IT 317 ITR 218 (SC), wherein the Hon'ble Court explained that "the words "derived from" are narrower in connotation…

Asst CIT Cen Cir 25, Mumbai vs. Patel Engineering Ltd, Mumbai

In the result, appeal of revenue is dismissed, whereas cross objection of the assessee is allowed in part, in terms indicated hereinabove

…d by lower authorities to show that expenses incurred at Panvel workshop and USA office was incurred directly for assessee’s projects eligible for deduction u/s.80IA(4). Respectfully following the decision of coordinate bench directly on the issue reported at 37 SOT 322 and the decision of Hon’ble Supreme Court in case of Liberty India (supra), we do not find any merit for reducing the profit of eligible undertaking by these & CO No.9/15 expenses. Accordingly, we direct the AO not to reduce the profit eligible for deduction u/s.80IA(4). We direct accordingly. 30. The AO did not allow credit of TDS in respect of a…