ISKRAMEMCO REGENT Ltd. v. CIT

DCIT, Chennai vs. Cooper Standard Automotive India P Ltd., Chengalput

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

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.794/Chny/2016 िनधा"रण वष"/Assessment Year: 2005-06 The Deputy Commissioner Of Vs. M/S. Cooper Standard Automotive Income Tax, India P. Ltd., Plot No. 3-A, Ford Corporate Circle 1(2), Supplier Park, Kilkaranai Village, Chennai 600 034. Melrosapuram Post Via Singaperumal Koil, Chengalpet 603 204. [Pan:Aabcc3665P] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Varuvooru Sreedhar, Addl. Cit ""थ" की ओर से/Respondent By : Shri R. Meenakshisundaram, Advocate सुनवाई की तारीख/ Date Of Hearing : 08.06.2022 घोषणा की तारीख /Date Of Pronouncement : 10.08.2022 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Revenue Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 1, Chennai, Dated 05.01.2016 Relevant To The Assessment Year 2005-06. The Only Effective Ground Raised In The Appeal Of The Revenue Is As To Whether The Waiver Of Loan Amount Taken For Business Purposes Is Assessable As Business Income Under Section 28(Iv) R.W.S. 41(1) Of The Income Tax Act, 1961 [“Act” In Short] Or Not.

…e Act. Lastly, it is important to bear in mind that the Toolings constituted Capital Asset and not stock-in-trade. Therefore, taking into account all the above facts, section 41(1) of the Act is not applicable". Similarly, in the case of lskraemeco Regent Ltd 331 ITR 317 (Mad) it was observed in the context of the Apex Court decision that in TV. Sundaram Iyengar & Sons Ltd.’s case (supra), the Apex Court has clearly held that when in the course of a trading transaction, the assessee becomes entitled to the money, such an amount would become a taxable income at the hands of the assessee. In the 7 I.T.A. No. 794/Ch…

Sivanandha Steels Ltd., Chennai vs. DCIT, Coimbatore

In the result, the appeal filed by the assessee is allowed

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwal

…f AO by observing in para 13 as under:- 13. I have considered the submissions of the appellant and the Remand Report of the Assessing Officer. The assessee has relied on the judgment of the Hon'ble Madras High Court in the case of Iskreamco Regent Ltd Vs CIT (331 ITR 317) wherein it was held that Section 28(iv) does not apply to the benefits in cash or money and it applies only to a transaction arising from business section. (i) However, in a subsequent judgment, the Hon'ble High Court in the case of Ramaniyam Homes (P) Ltd (68 taxmann.com 289 [MAD]) has held that the waiver of principal amount would constitute…

India Cements Capital Ltd., Chennai vs. ACIT Corporate Circle 2(2), Chennai

The appeal stand allowed for statistical purposes

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…so received in the course of trading transactionsand the character of the amountchangeswhen it becomes assessee's own money. 2.5 It is submitted that the decision of Madras High Court relied upon by the CIT(A) in the case of Iskraemeco Regent Ltd. reported in 331 ITR 317 has not become final and appeal before Supreme Court has been filed. Evidently, the sole grievance of the revenue is deletion of addition made u/s 41(1) on account of cessation of liability for Rs.46.05 Crores. 3. The Ld. CIT-DR advanced arguments and submitted that the liability was crystalized at lesser amount and it was a case of remission/ c…

DCIT Corporate Circle 3(2), Chennai vs. Unique Receivable Management Pvt. Ltd., Chennai

The appeal stand allowed for statistical purposes

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…so received in the course of trading transactionsand the character of the amountchangeswhen it becomes assessee's own money. 2.5 It is submitted that the decision of Madras High Court relied upon by the CIT(A) in the case of Iskraemeco Regent Ltd. reported in 331 ITR 317 has not become final and appeal before Supreme Court has been filed. Evidently, the sole grievance of the revenue is deletion of addition made u/s 41(1) on account of cessation of liability for Rs.46.05 Crores. 3. The Ld. CIT-DR advanced arguments and submitted that the liability was crystalized at lesser amount and it was a case of remission/ c…

ACIT, Chennai vs. M/S. India Cements Capital and Finance Ltd., Chennai

The appeal stand allowed for statistical purposes

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…so received in the course of trading transactionsand the character of the amountchangeswhen it becomes assessee's own money. 2.5 It is submitted that the decision of Madras High Court relied upon by the CIT(A) in the case of Iskraemeco Regent Ltd. reported in 331 ITR 317 has not become final and appeal before Supreme Court has been filed. Evidently, the sole grievance of the revenue is deletion of addition made u/s 41(1) on account of cessation of liability for Rs.46.05 Crores. 3. The Ld. CIT-DR advanced arguments and submitted that the liability was crystalized at lesser amount and it was a case of remission/ c…

ITO Corporate Ward 2, Madurai vs. Madras Suspensions Limited, Madurai

In the result, the appeal of the Revenue is dismissed

Bench: Shri Abraham P George & Shri George Mathan

…Mercantile Bank Limited representing Term Loan for the purchase of machinery and for building construction. It was a submission that Ld.CIT(A) has relied upon the decision of Hon’ble Madras High Court in the case of Iskraemeco Regent Ltd. Vs. CIT in [2011] 331 ITR 317(Mad.) to grant the assessee relief. It was a further submission that the said decision is now stood reversed by the Hon’ble Madras High Court in the case of CIT vs. Ramaniyam Homes (P.) Ltd., reported in [2016] 384 ITR 530(Mad.). It was a prayer by ld.D.R that the order of the CIT(Appeals) was liable to be reversed. :- 3 -: 4. In reply, the…

Kothari Biotech Ltd., Chennai vs. ACIT, Chennai

In the result, both the appeals of the assessees are

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamony

…that the waiver of loan amount would constitute income under Section 28(iv) of the Income-tax Act, 1961 (in short 'the Act') being the benefit arising in the course of business. The Madras High Court in another case in Iskraemeco Regent Ltd. v. CIT (2011) 331 ITR 317 found that the waiver of loan cannot be considered to be income either under Section 28(iv) or under Section 41(1) of the Act. Therefore, according to the Ld. counsel, this judgment of Madras High Court was not properly appreciated by the CIT(Appeals). 5. Referring to the assessment orders, the Ld.counsel for the assessees submitted that the as…

DCIT, Chennai vs. Sical Logistics Ltd., Chennai

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

…for purchase of capital assets and cannot be used for working capital requirements, as per the regulations of the Reserve Bank of India. The assessee also relied on the decision of the Jurisdictional High Court in the case of ISKRAMEMCO REGENT Ltd. vs. CIT (331 ITR 317), wherein the above issue has been discussed. The assessee also placed reliance on the decisions in the cases of Mahindra & Mahindra Ltd. v. CIT (261 ITR 501-Bom), CIT v. Chetan Chemicals (P) Ltd. (267 ITR 770-Guj), Iskraemeco Regent Ltd. Vs. C.I.T in [2011] 331 ITR 317(Mad.) in support of its contentions. 17.3 However, the AO observed that…

DCIT, Chennai vs. Sical Logistics Ltd., Chennai

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

…for purchase of capital assets and cannot be used for working capital requirements, as per the regulations of the Reserve Bank of India. The assessee also relied on the decision of the Jurisdictional High Court in the case of ISKRAMEMCO REGENT Ltd. vs. CIT (331 ITR 317), wherein the above issue has been discussed. The assessee also placed reliance on the decisions in the cases of Mahindra & Mahindra Ltd. v. CIT (261 ITR 501-Bom), CIT v. Chetan Chemicals (P) Ltd. (267 ITR 770-Guj), Iskraemeco Regent Ltd. Vs. C.I.T in [2011] 331 ITR 317(Mad.) in support of its contentions. 17.3 However, the AO observed that…

DCIT, Chennai vs. Sical Logistics Ltd., Chennai

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

…for purchase of capital assets and cannot be used for working capital requirements, as per the regulations of the Reserve Bank of India. The assessee also relied on the decision of the Jurisdictional High Court in the case of ISKRAMEMCO REGENT Ltd. vs. CIT (331 ITR 317), wherein the above issue has been discussed. The assessee also placed reliance on the decisions in the cases of Mahindra & Mahindra Ltd. v. CIT (261 ITR 501-Bom), CIT v. Chetan Chemicals (P) Ltd. (267 ITR 770-Guj), Iskraemeco Regent Ltd. Vs. C.I.T in [2011] 331 ITR 317(Mad.) in support of its contentions. 17.3 However, the AO observed that…

ACIT, Chennai vs. Balaji Distilleries Ltd., Chennai

Appeal is dismissed

Bench: Shri A. Mohan Alankamony & Shri S.S. Godaraआयकर अपील सं./Ita No.1585/Mds/2014 "नधा"रण वष" / Assessment Year : 2009-10 The Assistant Commissioner Of M/S Balaji Distilleries Ltd., Income Tax, V. (Merged With United Spirits) Company Circle I(2), Bye Pass Road Poonamallee, Chennai - 600 034. Chennai - 600 034. Pan : Aaacb 3589 Q (अपीलाथ"/Appellant) (""यथ"/Respondent)

…आयकर अपील"य अ"धकरण, ‘ए’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI "ी ए. मोहन अलंकामणी, लेखा सद"य एवं "ी एस.एस. गोदारा, "या"यक सद"य केसम" BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER आयकर अपील सं./ITA No.1585/Mds/2014 "नधा"रण वष" / Assessment Year : 2009-10 The Assistant Commissioner of M/s Balaji Distilleries Ltd., Income Tax, v. (Merged with United Spirits) Company Circle I(2), Bye Pass Road Poonamallee, Chennai - 600 034. Chennai - 600 034. PAN : AAACB 3589 Q (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Shri…