IOL Ltd. v. DCIT

81 TTJ 525Income Tax Appellate Tribunal2003#8001 most cited

What is IOL Ltd. v. DCIT authority for?

Amounts set aside for debenture redemption reserve cannot be treated as a 'reserve' or an amount set apart for unascertained liabilities under Section 115JB(1) Explanation clauses (b) or (c) if they represent an ascertained liability.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2017 to 2023.

Also referred to as

IOL Ltd. v. DCIT · 81 TTJ 525 · Section 115JB · Section 115J(1) · debenture redemption reserve · ascertained liability · book profit · reserve · unascertained liability

Issues it is cited on

safe harbour rulessection 72asection 32(2)preliminary expensessafe harboursection 43aactual payment basissection 43(6)section 72section 115jb(2)benchmarking analysissection 144c(3)

Judgments citing IOL Ltd. v. DCIT

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5459/MUM/2017[2009-10]Status: DisposedITAT Mumbai30 Jun 2023AY 2009-10
Section 14A

…d as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act, 1963 but the ratio of this decision has been applied by the Hon'ble Kolkata ITAT bench in the case of IOL Ltd. Vs. DCIT (2003) 81 TTJ 525. In this direct decision of ITAT, it was held that the sum M/s. JSW Steels Ltd. appropriated by the assessee as debenture redemption reserve in the P&L account of the relevant previous year cannot be held to be a "reserve" within the meaning of clause (b) or the amount set apart to meet unascertained liabilities within the meaning of clause(c) to…

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5458/MUM/2017[2011-12]Status: DisposedITAT Mumbai30 Jun 2023AY 2011-12
Section 14A

…d as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act, 1963 but the ratio of this decision has been applied by the Hon'ble Kolkata ITAT bench in the case of IOL Ltd. Vs. DCIT (2003) 81 TTJ 525. In this direct decision of ITAT, it was held that the sum M/s. JSW Steels Ltd. appropriated by the assessee as debenture redemption reserve in the P&L account of the relevant previous year cannot be held to be a "reserve" within the meaning of clause (b) or the amount set apart to meet unascertained liabilities within the meaning of clause(c) to…

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5457/MUM/2017[2010-11]Status: DisposedITAT Mumbai30 Jun 2023AY 2010-11
Section 14A

…d as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act, 1963 but the ratio of this decision has been applied by the Hon'ble Kolkata ITAT bench in the case of IOL Ltd. Vs. DCIT (2003) 81 TTJ 525. In this direct decision of ITAT, it was held that the sum M/s. JSW Steels Ltd. appropriated by the assessee as debenture redemption reserve in the P&L account of the relevant previous year cannot be held to be a "reserve" within the meaning of clause (b) or the amount set apart to meet unascertained liabilities within the meaning of clause(c) to…

DCIT CC 8(3)(Erstwhile DCIT, CC-46, Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5327/MUM/2017[2011-12]Status: DisposedITAT Mumbai30 Jun 2023AY 2011-12
Section 14A

…d as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act, 1963 but the ratio of this decision has been applied by the Hon'ble Kolkata ITAT bench in the case of IOL Ltd. Vs. DCIT (2003) 81 TTJ 525. In this direct decision of ITAT, it was held that the sum M/s. JSW Steels Ltd. appropriated by the assessee as debenture redemption reserve in the P&L account of the relevant previous year cannot be held to be a "reserve" within the meaning of clause (b) or the amount set apart to meet unascertained liabilities within the meaning of clause(c) to…

DCIT CC 8(3)(Erstwhile DCIT, CC-46, Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5326/MUM/2017[2010-11]Status: DisposedITAT Mumbai30 Jun 2023AY 2010-11
Section 14A

…d as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act, 1963 but the ratio of this decision has been applied by the Hon'ble Kolkata ITAT bench in the case of IOL Ltd. Vs. DCIT (2003) 81 TTJ 525. In this direct decision of ITAT, it was held that the sum M/s. JSW Steels Ltd. appropriated by the assessee as debenture redemption reserve in the P&L account of the relevant previous year cannot be held to be a "reserve" within the meaning of clause (b) or the amount set apart to meet unascertained liabilities within the meaning of clause(c) to…

DCIT CC 8(3), Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5325/MUM/2017[2009-10]Status: DisposedITAT Mumbai30 Jun 2023AY 2009-10
Section 14A

…d as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act, 1963 but the ratio of this decision has been applied by the Hon'ble Kolkata ITAT bench in the case of IOL Ltd. Vs. DCIT (2003) 81 TTJ 525. In this direct decision of ITAT, it was held that the sum M/s. JSW Steels Ltd. appropriated by the assessee as debenture redemption reserve in the P&L account of the relevant previous year cannot be held to be a "reserve" within the meaning of clause (b) or the amount set apart to meet unascertained liabilities within the meaning of clause(c) to…

DCIT CC 8(3), Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 4632/MUM/2017[2008-09]Status: DisposedITAT Mumbai30 Jun 2023AY 2008-09
Section 14A

…d as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act, 1963 but the ratio of this decision has been applied by the Hon'ble Kolkata ITAT bench in the case of IOL Ltd. Vs. DCIT (2003) 81 TTJ 525. In this direct decision of ITAT, it was held that the sum M/s. JSW Steels Ltd. appropriated by the assessee as debenture redemption reserve in the P&L account of the relevant previous year cannot be held to be a "reserve" within the meaning of clause (b) or the amount set apart to meet unascertained liabilities within the meaning of clause(c) to…

Jsw Steel Limited, Mumbai vs. ACIT, CC-46, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 4287/MUM/2017[2008-09]Status: DisposedITAT Mumbai30 Jun 2023AY 2008-09
Section 14A

…d as money set apart to meet a known liability. While the above Supreme Court decision was given in context of Super Profit Tax Act, 1963 but the ratio of this decision has been applied by the Hon'ble Kolkata ITAT bench in the case of IOL Ltd. Vs. DCIT (2003) 81 TTJ 525. In this direct decision of ITAT, it was held that the sum M/s. JSW Steels Ltd. appropriated by the assessee as debenture redemption reserve in the P&L account of the relevant previous year cannot be held to be a "reserve" within the meaning of clause (b) or the amount set apart to meet unascertained liabilities within the meaning of clause(c) to…

ACIT, Cir-11(2), Kolkata vs. M/S Srei Infrastructure Finance Ltd., Kolkata

In the result, the appeal filed by the assessee and Revenue are allowed to the extent indicated above

ITA 2003/KOL/2016[2011-12]Status: DisposedITAT Kolkata31 Dec 2019AY 2011-12

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am Srei Infrastructure Finance Ltd. Vs. Addl. Cit, Range-9, New Delhi D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Assessee) .. (Revenue/Department) Addl. Cit, Range-9, New Delhi Vs. Srei Infrastructure Finance Ltd. D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant) Srei Infrastructure Finance Ltd. Vs. Dcit, Circle-11(2), Kolkata 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Appellant) .. (Respondent) Acit, Circle-11(2), Kolkata Vs. Srei Infrastructure Finance Ltd. 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant)

For Appellant: Shri Vijay Shah & Amit Agarwal, ARFor Respondent: Shri Radhey Shyam, CIT
Section 143(3)Section 14A

…ereas the assessee filed computation of DRR with the paper book showing that it is an ascertained liability and not a reserve. The ld A.R. also relied on a catena of judgments squarely covering the issue in favour of the assessee:- • IOl Ltd. vs. DCIT (2003) 81 TTJ 525 (Cal) • LMJ International Ltd. vs. DCIT (ITA No. 230/Kol/2013) • DCIT vs. M/s Exide Industries Ltd. (ITA No. 2518/Kol/2004) • ACIT vs. Usha Martin Ltd. (ITA No. 112/Kol/2006). In view of the above, we are of the view that the DRR is ascertained liability and not a reserve. Accordingly, the revenue’s ground is dismissed. ITA No.1318/Del/2012, ITA…

Srei Infrastructure Finance Limited, Kolkata vs. DCIT, Circle-11(2), Kolkata

In the result, the appeal filed by the assessee and Revenue are allowed to the extent indicated above

ITA 1821/KOL/2016[2011-12]Status: DisposedITAT Kolkata31 Dec 2019AY 2011-12

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am Srei Infrastructure Finance Ltd. Vs. Addl. Cit, Range-9, New Delhi D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Assessee) .. (Revenue/Department) Addl. Cit, Range-9, New Delhi Vs. Srei Infrastructure Finance Ltd. D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant) Srei Infrastructure Finance Ltd. Vs. Dcit, Circle-11(2), Kolkata 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Appellant) .. (Respondent) Acit, Circle-11(2), Kolkata Vs. Srei Infrastructure Finance Ltd. 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant)

For Appellant: Shri Vijay Shah & Amit Agarwal, ARFor Respondent: Shri Radhey Shyam, CIT
Section 143(3)Section 14A

…ereas the assessee filed computation of DRR with the paper book showing that it is an ascertained liability and not a reserve. The ld A.R. also relied on a catena of judgments squarely covering the issue in favour of the assessee:- • IOl Ltd. vs. DCIT (2003) 81 TTJ 525 (Cal) • LMJ International Ltd. vs. DCIT (ITA No. 230/Kol/2013) • DCIT vs. M/s Exide Industries Ltd. (ITA No. 2518/Kol/2004) • ACIT vs. Usha Martin Ltd. (ITA No. 112/Kol/2006). In view of the above, we are of the view that the DRR is ascertained liability and not a reserve. Accordingly, the revenue’s ground is dismissed. ITA No.1318/Del/2012, ITA…

V.R. Construction P.Ltd, Mumbai vs. Asst CIT 11(3)(2), Mumbai

In the result, the appeal filed by the Revenue is dismissed

ITA 5048/MUM/2017[2012-13]Status: DisposedITAT Mumbai30 Aug 2019AY 2012-13

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2012-13

For Appellant: Mr. Naresh Jain, ARFor Respondent: Mr. Sushil Kumar Poddar, DR
Section 115Section 115JSection 143(3)Section 33ASection 80I

…her than a reserve specified under section 33AC or (c) …the amount or amounts set-aside to provisions made for meeting liabilities, other than ascertained liabilities ; or” During the course of hearing, the assessee relied on the decision in IOL Ltd. v. DCIT 81 TTJ 525 (Kol), National Rayon Corp Ltd. v. CIT 142 CTR 2020 (SC), CIT v. Raymond Limited [21 taxmann.com 60]. However, the AO was not convinced with the explanation given by the assessee for the reason that the assessee itself has added in computation of income the “Provision for Debt Redemption” while claiming deduction u/s 80IB of the Act. Further, as p…

Lmj International Ltd., Kolkata vs. D.C.I.T Cir - 8, Kolkata

In the result, the appeal of the Revenue is dismissed, while the appeal of the assessee is treated as partly allowed for statistical purposes

ITA 230/KOL/2013[2009-10]Status: DisposedITAT Kolkata21 Mar 2018AY 2009-10

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 80I

…computing book profit under section 115JB is decided in favour of the appellant as because this provision has been made for meeting out an ascertained liability. My this view is in accordance with the Hon’ble ITAT Kolkata Bench in the case of IOL Ltd. v DCIT 81 TTJ 525. In that case it was held that transfer from profit & loss account to debenture redemption account has to be consider for working out book profit under section 115J(1) of the Act. Accordingly, the AO is directed to consider provision of loan redemption reserve Rs. 5 crores while computing book profit under section 115JB of the Act”. 19. The ld. D…

Perstorp Chemicals India P.Ltd, Navi Mumbai vs. ITO 10(2)(2), Mumbai

Appeal is partly allowed

ITA 4364/MUM/2012[2007-08]Status: DisposedITAT Mumbai03 Jan 2018AY 2007-08
For Appellant: Shri Mayur KisnadwalaFor Respondent: S/Shri V. Jenardhanan -DR
Section 254(1)Section 92

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, , , , मुंबई आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई मुंबई “केकेकेके ” ” ” ” खंडपीठ मुंबई खंडपीठ खंडपीठ खंडपीठ Income-tax Appellate Tribunal “K”Bench Mumbai सव"ी सव"ी सव"ी राजे"" सव"ी राजे"" राजे"", लेखा राजे"" लेखा लेखा सद"य लेखा सद"य सद"य एवं सद"य एवं एवं रिवश सूद एवं रिवश सूद रिवश सूद, "याियक रिवश सूद "याियक "याियक सद"य "याियक सद"य सद"य सद"य Before S/Sh. Rajendra,Accountant Member & Ravish Sood, Judicial Member आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं./I.T.A./4364/Mum/2012, िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2007-08 वष" आयकर आयकर अ…

DCIT, Circle - 2, Kolkata vs. M/S. Lmj Logistics Ltd., Kolkata

In the result, Revenue’s appeal stands partly allowed for statistical purpose

ITA 1800/KOL/2010[2007-08]Status: DisposedITAT Kolkata02 Jun 2017AY 2007-08

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmedassessment Year :2007-08

Section 143(3)Section 80Section 80BSection 80I

…ising out of the redemption of debts. This debt redemption reserve is called reserve only namesake. It is in fact, a provision to meet a future liability. The appellant also placed reliance on the decision of the Hon. Calcutta Tribunal in the case of IOL Ltd. 81 TTJ 525 (Cal)which hold that Debenture Redemption reserve is neither a Reserve nor amount set aside to meet unascertained liabilities. Based on the submission made and following the above decision, the disallowance of debt redemption reserves while calculating the profit u/s.115JB is deleted.” The Revenue, being aggrieved, is in appeal before us on the f…

IOL Ltd. v. DCIT (81 TTJ 525) — Cited in 14 Judgments | BharatTax