Indian Oil Panipat Power Consortium Ltd. v. ITO

VNG AUTOMOTIVE P. LTD. vs. ASSTT. COMMISSIONER OF INCOME

The appeals are disposed of as allowed

…ratio of Karnal Co- operative Sugar Mills (supra) is not attracted is not correct, as the compulsion of deposit of funds is not the guiding factor. He has also relied on the judgments of this Court in Indian Oil Panipat Power Consortium Ltd. v. IΤΟ, (2009) 315 ITR 255 and Pr. CIT v. International Coal Ventures (P) Ltd, (2025) 472 ITR 307. 19. Mr. Sethi submitted that the preliminary objection of the Revenue is that the CIT (A) has admitted additional evidence which is in violation of Rule 46A of the Income Tax Rules, 1962 (“Rules”). For the assessment order for AY 1999-00, deduction under Section 35D of…

MAX SQUARE LTD,NOIDA vs. ITO WARD-5(1)(5), NOIDA

In the result, the appeal of the assessee is dismissed

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal[Assessment Year : 2021-22] Max Square Ltd. Vs Ito L-12, Max Tower, Sector-16-B Ward-5(1)(5) Gautam Budha Nagar Noida Noida, Uttar Pradesh-201301 Pan-Aagcn5808G Appellant Respondent Appellant By Shri Anil Bhalla, Ca & Shri Nitin Kumar Sharma, Ca Respondent By Shri Gouranga Chandra Das, Sr. Dr Date Of Hearing 08.12.2025 Date Of Pronouncement 13.02.2026 Order Per Manish Agarwal, Am : The Present Appeal Is Filed By Assessee Against The Order Dated 30.05.2025 Of Ld. Commissioner Of Income Tax (A), National Faceless Appeal Centre (“Nfac”), Delhi [“Ld. Cit(A)”] In Appeal No. Nfac/2020-21/10308419 Passed U/S 250 Of The Income Tax Act, 1961 [“The Act”] Arising Out Of Assessment Order Dated 07.12.2023 Passed U/S 143(3) R.W.S. 144B Of The Act Pertaining To Assessment Year 2021-22. 2. Brief Acts Of The Case Are That The Assessee Is A Company, Engaged In The Business Of Real Estates Development & Started Construction Of Commercial Complex Project “Max Square” At Sector 129, Noida. The Assessee Borrowed Funds From Indusind Bank Amounting To Inr 29.45 Crores For The Construction & Further Raised Funds Through Issue Of Equity/Ccd’S. The Funds Which Remained Un-Utilized, Were Invested Temporary In Fdrs From Which Interest Was Received Of Inr 63,77,502/- & Was Credited To The Cost Of Construction. However, The Ao Has Held The Same As Taxable Under The Head “Income From Other Sources”.

…ements of the Hon'ble Supreme Court in the case of Bokaro Steel Ltd. [1999] 236 ITR 315 (SC), and the Hon'ble Delhi High Court in the cases of NTPC Sail Power Company (P) Ltd. [2012] 25 taxmann.com 401 (Del) and Indian Oil Panipat Power Consortium Ltd. [2009] 315 ITR 255 (Del), which have clearly held that interest earned from temporary parking of borrowed funds intended for project development is inextricably linked to the setting up of the project and hence constitutes a capital receipt not liable to tax. 1.2 The Learned CIT(A) has erred both on facts and in law in failing to appreciate that the assessee had bo…

ACIT, SPECIAL RANGE-6, NEW DELHI vs. MB POWER (MADHYA PRADESH) LTD, NEW DELHI

Appeal is allowed for statistical purposes in above terms

Bench: Shri Satbeer Singh Godara & Shri M. Balaganeshassessment Year: 2016-17 Acit, Vs. Mb Power (Madhya Pradesh) Special Range-6, Ltd., New Delhi 239, Okhla Industrial Estate, Phase-Iii, New Delhi Pan :Aafcm6698A (Appellant) (Respondent) Assessee By Sh. Satyan Sethi, Adv. Sh. A.T. Panda, Adv. Department By Sh. B.S. Anand, Sr. Dr Date Of Hearing 26.11.2024 Date Of Pronouncement 05.12.2024 Order

…hat in the impugned assessment year on the ground that the assessee’s actual business has already commenced in this year and therefore, we ought to decide the Revenue’s sole substantive grievance in light of the changed circumstances. He further quotes (2009) 315 ITR 255 (Del) Indian Oil Panipat Power Consortium Ltd. Vs Income Tax Officer (ITO) and submits a brief synopsis that the Revenue’s foregoing contentions do not carry any merit. 7. We have given out thoughtful consideration to the above vehement contentions and find no reason to accept either side’s stand in entirety at this stage for the reason that the…

M/S IIFCL ASSET MANAGEMENT COMPANY LTD.,,NEW DELHI vs. DCIT, NEW DELHI

In the result we answer the question as framed in favour of the assessee and against the revenue

Bench: Shri Mahavir Singh & Shri Naveen Chandra

…e more appropriate decision in the factual situation in the present case is in CIT v. Bokaro Steel Ltd. . The appeal is dismissed. There will be no order as to costs. 25. The Hon'ble High Court of Delhi in the case of Indian Oil Panipat Power Consortium Ltd 315 ITR 255 has similarly held as under: “5.2 It is clear upon a perusal of the facts as found by the authorities below that the funds in the form of share capital were infused for a specific purpose of acquiring land and the development of infrastructure. Therefore, the interest earned on funds primarily brought for infusion in the business could not have…

DCIT, CIRCLE 7(1), NEW DELHI vs. ETAWAH CHAKERI (KANPUR) HIGHWAY P.LTD, NEW DELHI

In the result, the appeal of the Revenue in ITA No

Bench: Shri Saktijit Dey & Shri Naveen Chandra

…h the contention of assessee that interest earned was inextricably linked to the construction of the project. He thereafter placing reliance on the decisions of Hon’ble Delhi High Court in the case of Indian Oil Panipat Power Consortium Limited vs. ITO [2009] 315 ITR 255 (Delhi) had decided the issue in favour of the assessee. Before us, no fallacy in the findings of CIT(A) has been pointed out by Revenue nor has Revenue placed any material on record to point out that the reliance placed by the CIT(A) on the decisions cited in the order are not applicable to the present facts. In such a situation, we find no rea…

PR. COMMISSIONER OF INCOME TAX -7 vs. TRIUMPH REALTY PVT. LTD.

In the result we answer the question as framed in favour

…pts will go to reduce the cost of its assets. These are receipts of a capital nature and cannot be taxed as income.” 5. Subsequently, a Division Bench of this Court in Indian Oil Panipat Power Consortium Limited, New Delhi vs. Income Tax Officer, (2009) 315 ITR 255 (Delhi) has held “.......In view of the discussion above, in our opinion the Tribunal misdirected itself in applying the decision of the Supreme Court in Tuticorin Alkali Chemicals (supra) in the facts of the present case. In our opinion on account of the finding of fact returned by the CIT(A) that the funds infused in the assessee by the jo…

THE PR. COMMISSIONER OF INCOME TAX -5 vs. JAYPEE POWERGRID LTD.

Bench: The Tribunal Was Whether The Interest Earned By The Respondent/Assessee From The Investment Made In Fixed Deposits, Out Of The Funds Received For Setting Up A Power Transmission System In The State Of Himachal Pradesh, Would Be Amenable To Tax Under The Head “Income From Other Sources”? 4. The Assessing Officer (Ao), Via The Assessment Order Dated Digitally Signed By:Atul Jain Signing Date:14.12.2023 15:33:37 Signature Not Verified

…ore the Tribunal. The Tribunal, as noted hereinabove, ruled in favour of the respondent/assessee and while doing so, applied the ratio of the judgment rendered by a coordinate bench of this court in Indian Oil Panipat Power Consortium Ltd. v. ITO, (2009) 315 ITR 255 (Del). 7. The record shows that notice in the above-captioned appeal was issued by the coordinate bench on 16.09.2019, based on the appellant/revenue’s submission that the impugned order was contrary to the decision of the Supreme Court in Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT, (1997) 6 SCC 117. 8. On 26.07.2023, counsel…

PR. COMMISSIONER OF INCOME TAX- 4 vs. M/S IMPERATIVE HOSPITALITY PVT LTD

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

…rplus funds, which were used for the execution of the project. 9. The Tribunal, having regard to this fact situation, applied the ratio of the judgment of a coordinate Bench of this court in Indian Oil Panipat Power Consortium Ltd vs Income Tax Officer 315 ITR 255(Del). 10. The argument advanced by the respondent/assessee was that the funds invested in fixed deposit were inextricably linked to the setting up of the plant. 11. It is in this context that the Tribunal made the following observations and deleted the addition made with regard to the interest: “17. As has been held in preceding paras,…