EID Parry Ltd. v. Commissioner of Income Tax

233 ITR 335High Court1998#2428 most cited

What is EID Parry Ltd. v. Commissioner of Income Tax authority for?

Compensation received for the delay in the procurement of a capital asset is a capital receipt. However, the portion of compensation relating to erection, construction, and other duties is treated as a revenue receipt assessable in the hands of the assessee.

48

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2009 to 2026.

Also referred to as

EID Parry Ltd v CIT · 233 ITR 335 · Madras High Court · compensation nature · capital receipt · revenue receipt · delay in capital asset procurement · erection and construction compensation · classification of receipts · wholly and exclusively for business · section 32(1)(ii) · section 143(3)

Sections most often in play

Section 115JBSection 14ASection 195Section 35(2AB)Section 40(a)(i)Section 92BSection 8DSection 143(3)

Issues it is cited on

recognised provident fundsection 50bsection 43b(f)approved gratuity fundsection 40a(9)section 211wholly and exclusively for businesssection 35dslump salesection 32(1)(ii)domestic companyfull value of consideration

Judgments citing EID Parry Ltd. v. Commissioner of Income Tax

Ashok Leyland Ltd., Chennai vs. DCIT, Chennai

In the result, the appeal of the Revenue in ITA

ITA 2834/CHNY/2014[1995-96]Status: DisposedITAT Chennai23 Sept 2016AY 1995-96

Bench: Shri Chandra Poojari & Shri G. Pavan Kumarआयकर अपील सं./I.T.A. Nos.2825, 2826 & 2827/Mds/2014 "नधा"रण वष" /Assessment Years : 2005-06, 2006-07 & 2007-2008. The Deputy Commissioner Of M/S. Ashok Leyland Ltd, Income Tax, Vs. No.1, Sardar Patel Road, Large Taxpayer Unit -Ii, Guindy, Chennai 600 101. Chennai 600 032. [Pan Aaaca 4651L] (Department) (Assessee )

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Shri. Arun C. Bharath, IRS, CIT
Section 35D(2)Section 35D(2)(c)

…on facts, exchange difference of RS:'1,l0,746 received by assessee could be regarded as capital gains which was not assessable to income- tax - Held, yes Similar view was also taken by the Hon'ble Supreme Court in the case of Universal Radiators reported in 120 ITR 906. The head note of the decision is reproduced as under: ‘’Section 28 of the income-tax act, 1961-Business income- Assessee's goods in transit from USA to India seized by Pakistan during hostilities in September 1965- Assessee received us $ 45,825 as compensation from insurance company in . October 1966-lndian currency meanwhile devalued on 6-6-1…

DCIT, Chennai vs. Ashok Leyland Ltd., Chennai

In the result, the appeal of the Revenue in ITA

ITA 2827/CHNY/2014[2007-08]Status: DisposedITAT Chennai23 Sept 2016AY 2007-08

Bench: Shri Chandra Poojari & Shri G. Pavan Kumarआयकर अपील सं./I.T.A. Nos.2825, 2826 & 2827/Mds/2014 "नधा"रण वष" /Assessment Years : 2005-06, 2006-07 & 2007-2008. The Deputy Commissioner Of M/S. Ashok Leyland Ltd, Income Tax, Vs. No.1, Sardar Patel Road, Large Taxpayer Unit -Ii, Guindy, Chennai 600 101. Chennai 600 032. [Pan Aaaca 4651L] (Department) (Assessee )

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Shri. Arun C. Bharath, IRS, CIT
Section 35D(2)Section 35D(2)(c)

…on facts, exchange difference of RS:'1,l0,746 received by assessee could be regarded as capital gains which was not assessable to income- tax - Held, yes Similar view was also taken by the Hon'ble Supreme Court in the case of Universal Radiators reported in 120 ITR 906. The head note of the decision is reproduced as under: ‘’Section 28 of the income-tax act, 1961-Business income- Assessee's goods in transit from USA to India seized by Pakistan during hostilities in September 1965- Assessee received us $ 45,825 as compensation from insurance company in . October 1966-lndian currency meanwhile devalued on 6-6-1…

DCIT, Chennai vs. Ashok Leyland Ltd., Chennai

In the result, the appeal of the Revenue in ITA

ITA 2825/CHNY/2014[2005-06]Status: DisposedITAT Chennai23 Sept 2016AY 2005-06

Bench: Shri Chandra Poojari & Shri G. Pavan Kumarआयकर अपील सं./I.T.A. Nos.2825, 2826 & 2827/Mds/2014 "नधा"रण वष" /Assessment Years : 2005-06, 2006-07 & 2007-2008. The Deputy Commissioner Of M/S. Ashok Leyland Ltd, Income Tax, Vs. No.1, Sardar Patel Road, Large Taxpayer Unit -Ii, Guindy, Chennai 600 101. Chennai 600 032. [Pan Aaaca 4651L] (Department) (Assessee )

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Shri. Arun C. Bharath, IRS, CIT
Section 35D(2)Section 35D(2)(c)

…on facts, exchange difference of RS:'1,l0,746 received by assessee could be regarded as capital gains which was not assessable to income- tax - Held, yes Similar view was also taken by the Hon'ble Supreme Court in the case of Universal Radiators reported in 120 ITR 906. The head note of the decision is reproduced as under: ‘’Section 28 of the income-tax act, 1961-Business income- Assessee's goods in transit from USA to India seized by Pakistan during hostilities in September 1965- Assessee received us $ 45,825 as compensation from insurance company in . October 1966-lndian currency meanwhile devalued on 6-6-1…

Commnr. of Income Tax, Gujarat vs. M/S.Saurashtra Cement & Chem.Indus.Ltd

C.A. No.-003702-003702 - 2003Supreme Court09 Jul 2010

Bench: The High Court That Answer To The Said Question Stood Concluded In Favour Of The Assessee By The Decision Of This Court In C.I.T., 2

Section 256(1)Section 80J

…as attained finality on account of dismissal of the Civil Appeal preferred by the Revenue against the said judgment. 10.Thus, the short question for determination is whether the liquidated damages received by the assessee from the supplier 4 [1998] 233 ITR 335 (Mad) 7 of the plant and machinery on account of delay in the supply of plant is a capital or a revenue receipt? 11.The question whether a particular receipt is capital or revenue has frequently engaged the attention of the Courts but it has not been possible to lay down any single criterion as decisive in the determination of the q…

Commissioner of Income Tax vs. Jagatjit Industries Ltd

Appeals are dismissed with costs

ITA/369/2007HC Delhi25 Sept 2009

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE VALMIKI J. MEHTA

…by the assessee. Effect is to delete the entire gain from the income treating the same as capital receipt. The Tribunal has held that this issue under the controversy is covered by the judgment of Madras High Court in the case of EID Parry Ltd. Vs. CIT, 174 ITR 11, wherein it was held that if foreign currency is held as capital asset or as fixed capital, profit or loss arising to an assessee on account of appreciation or depreciation ITA No. 369 of 2007 Page 6 of 10 in the value of foreign currency, would be in the nature of capital receipt. 6. It is, in these circumstances,…

Commissioner of Income Tax vs. Jagatjit Industries Ltd

Appeals are dismissed with costs

ITA - 368 / 2007HC Delhi25 Sept 2009

…red by the assessee. Effect is to delete the entire gain from the income treating the same as capital receipt. The Tribunal has held that this issue under the controversy is covered by the judgment of Madras High Court in the case of EID Parry Ltd. Vs. CIT, 174 ITR 11, wherein it was held that if foreign currency is held as capital asset or as fixed capital, profit or loss arising to an assessee on account of appreciation or depreciation in the value of foreign currency, would be in the nature of capital A ![](_page_6_Picture_1.jpeg) 6. It is, in these circumstances, the order of the Tribunal is challenge…

Commissioner of Income Tax vs. Jagatjit Industries Ltd

Appeals are dismissed with costs

ITA-369/2007HC Delhi25 Sept 2009

…by the assessee. Effect is to delete the entire gain from the income treating the same as capital receipt. The Tribunal has held that this issue under the controversy is covered by the judgment of Madras High Court in the case of EID Parry Ltd. Vs. CIT, 174 ITR 11, wherein it was held that if foreign currency is held as capital asset or as fixed capital, profit or 2009:DHC:4106-DB in the value of foreign currency, would be in the nature of capital receipt. 6. It is, in these circumstances, the order of the Tribunal is challenged by the Revenue. According to the Revenue, following questions of l…

Commissioner of Income Tax vs. Jagatjit Industries Ltd

Appeals are dismissed with costs

ITA - 369 / 2007HC Delhi25 Sept 2009

…by the assessee. Effect is to delete the entire gain from the income treating the same as capital receipt. The Tribunal has held that this issue under the controversy is covered by the judgment of Madras High Court in the case of EID Parry Ltd. Vs. CIT, 174 ITR 11, wherein it was held that if foreign currency is held as capital asset or as fixed capital, profit or 2009:DHC:4106-DB in the value of foreign currency, would be in the nature of capital receipt. 6. It is, in these circumstances, the order of the Tribunal is challenged by the Revenue. According to the Revenue, following questions of l…