Kalpana Lamps and Components Ltd. v. DCIT

255 ITR 491Reported decision2001#17408 most cited
5

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2024.

Issues it is cited on

revision u/s 263business connectionicdssection 36(1)(iii)commercial expediencysection 43brevenue expenditurecapital expendituresection 37(1)section 263companysection 143(3)

Judgments citing Kalpana Lamps and Components Ltd. v. DCIT

Southern Petrochemical Industries Corporation Ltd., Chennai vs. ITO, Chennai

The appeal stands partly allowed

ITA 207/CHNY/2023[2005-06]Status: DisposedITAT Chennai10 Jan 2024AY 2005-06

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.206/Chny/2023 (िनधा*रण वष* / Assessment Year: 2005-06) & 2.आयकरअपील सं./ Ita No.207/Chny/2023 (िनधा*रण वष* / Assessment Year: 2005-06) M/S. Southern Petrochemical Income Tax Officer बनाम Industries Corporation Limited Corporate Ward-3(1) 88, Spic House, Mount Road, Guindy, Chennai-600 034. / Vs. Chennai-600 032. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacs-4668-K (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri R. Vijayaraghavan & Shri Saroj Kumar Parida (Advocates)-Ld. Ars " थ"कीओरसे/Respondent By : Shri Nilay Baran Som (Cit) & Shri Ar V Sreenivasan (Addl. Cit)-Ld. Drs सुनवाईकीतारीख/Date Of Hearing : 16-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 10-01-2024 आदेश / O R D E R Manoj Kumar Aggarwal ()

For Appellant: Shri R. Vijayaraghavan & Shri Saroj KumarFor Respondent: Shri Nilay Baran Som (CIT) &
Section 143(3)Section 43B

…ral Schemes as notified by State Government and would not apply to interest liability converted into loans by banks and financial institutions. The Ld. AO relied on the decision of Hon’ble High Court of Madras in the case of Kalpana Lamps and Components Ltd. (255 ITR 491) wherein it was held that mere postponement of liability to pay interest does not amount to actual or constructive discharge. Further, the amendment made by Finance Act, 2006 would squarely apply and accordingly, the claim of interest to the extent of Rs.5418.70 Lacs was disallowed u/s 43B. The Ld. CIT(A) confirmed the same against which the asse…

Southern Petrochemical Industries Corporation Ltd., Chennai vs. ITO, Chennai

The appeal stands partly allowed

ITA 206/CHNY/2023[2005-06]Status: DisposedITAT Chennai10 Jan 2024AY 2005-06

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.206/Chny/2023 (िनधा*रण वष* / Assessment Year: 2005-06) & 2.आयकरअपील सं./ Ita No.207/Chny/2023 (िनधा*रण वष* / Assessment Year: 2005-06) M/S. Southern Petrochemical Income Tax Officer बनाम Industries Corporation Limited Corporate Ward-3(1) 88, Spic House, Mount Road, Guindy, Chennai-600 034. / Vs. Chennai-600 032. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacs-4668-K (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri R. Vijayaraghavan & Shri Saroj Kumar Parida (Advocates)-Ld. Ars " थ"कीओरसे/Respondent By : Shri Nilay Baran Som (Cit) & Shri Ar V Sreenivasan (Addl. Cit)-Ld. Drs सुनवाईकीतारीख/Date Of Hearing : 16-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 10-01-2024 आदेश / O R D E R Manoj Kumar Aggarwal ()

For Appellant: Shri R. Vijayaraghavan & Shri Saroj KumarFor Respondent: Shri Nilay Baran Som (CIT) &
Section 143(3)Section 43B

…ral Schemes as notified by State Government and would not apply to interest liability converted into loans by banks and financial institutions. The Ld. AO relied on the decision of Hon’ble High Court of Madras in the case of Kalpana Lamps and Components Ltd. (255 ITR 491) wherein it was held that mere postponement of liability to pay interest does not amount to actual or constructive discharge. Further, the amendment made by Finance Act, 2006 would squarely apply and accordingly, the claim of interest to the extent of Rs.5418.70 Lacs was disallowed u/s 43B. The Ld. CIT(A) confirmed the same against which the asse…

Southern Petrochemical Industries Corporation Ltd., Chennai vs. ITO, Chennai

Appeal stands dismissed

ITA 205/CHNY/2023[2004-05]Status: DisposedITAT Chennai10 Jan 2024AY 2004-05

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.204/Chny/2023 (िनधा*रण वष* / Assessment Year: 2004-05) & 2.आयकरअपील सं./ Ita No.205/Chny/2023 (िनधा*रण वष* / Assessment Year: 2004-05) M/S. Southern Petrochemical Acit / Ito बनाम Industries Corporation Limited Corporate Circle-6(2) / 88, Spic House, Mount Road, Guindy, Corporate Ward-3(1) / Vs. Chennai-600 032. Chennai-600 034. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacs-4668-K (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri R. Vijayaraghavan & Shri Saroj Kumar Parida (Advocates)-Ld. Ars " थ"कीओरसे/Respondent By : Shri Nilay Baran Som (Cit) & Shri Ar V Sreenivasan (Addl. Cit)-Ld. Drs सुनवाईकीतारीख/Date Of Hearing : 16-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 10-01-2024 आदेश / O R D E R

For Appellant: Shri R. Vijayaraghavan & Shri Saroj KumarFor Respondent: Shri Nilay Baran Som (CIT) &
Section 115JSection 143(3)Section 194CSection 41(1)Section 43B

…ral Schemes as notified by State Government and would not apply to interest liability converted into loans by banks and financial institutions. The Ld. AO relied on the decision of Hon’ble High Court of Madras in the case of Kalpana Lamps and Components Ltd. (255 ITR 491) wherein it was held that mere postponement of liability to pay interest does not amount to actual or constructive discharge. Further, the amendment made by Finance Act, 2006 would squarely apply and accordingly, the claim of interest to the extent of Rs.4199 Lacs was disallowed u/s 43B. 7.2 During appellate proceedings, the assessee reiterated i…

Southern Petrochemical Industries Corporation Ltd., Chennai vs. ITO, Chennai

Appeal stands dismissed

ITA 204/CHNY/2023[2004-05]Status: DisposedITAT Chennai10 Jan 2024AY 2004-05

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.204/Chny/2023 (िनधा*रण वष* / Assessment Year: 2004-05) & 2.आयकरअपील सं./ Ita No.205/Chny/2023 (िनधा*रण वष* / Assessment Year: 2004-05) M/S. Southern Petrochemical Acit / Ito बनाम Industries Corporation Limited Corporate Circle-6(2) / 88, Spic House, Mount Road, Guindy, Corporate Ward-3(1) / Vs. Chennai-600 032. Chennai-600 034. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacs-4668-K (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri R. Vijayaraghavan & Shri Saroj Kumar Parida (Advocates)-Ld. Ars " थ"कीओरसे/Respondent By : Shri Nilay Baran Som (Cit) & Shri Ar V Sreenivasan (Addl. Cit)-Ld. Drs सुनवाईकीतारीख/Date Of Hearing : 16-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 10-01-2024 आदेश / O R D E R

For Appellant: Shri R. Vijayaraghavan & Shri Saroj KumarFor Respondent: Shri Nilay Baran Som (CIT) &
Section 115JSection 143(3)Section 194CSection 41(1)Section 43B

…ral Schemes as notified by State Government and would not apply to interest liability converted into loans by banks and financial institutions. The Ld. AO relied on the decision of Hon’ble High Court of Madras in the case of Kalpana Lamps and Components Ltd. (255 ITR 491) wherein it was held that mere postponement of liability to pay interest does not amount to actual or constructive discharge. Further, the amendment made by Finance Act, 2006 would squarely apply and accordingly, the claim of interest to the extent of Rs.4199 Lacs was disallowed u/s 43B. 7.2 During appellate proceedings, the assessee reiterated i…

Commissioner of Income Tax Del vs. M.M.Aqua Technologies Ltd

ITA/110/2005HC Delhi18 May 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 3(2)Section 43B

…it was introduced in 1984, appears to us to be misplaced in the present case… " 6. Learned counsel for the revenue argued that the impugned order is contrary to the decision of the Madras High Court in Kalpana Lamps and Components Ltd. v. DCIT, (2001) 255 ITR 491. In that case, it was held in the context of a claim under Section 43B that a mere postponement of the liability to pay interest does not amount to discharge, whether actual or constructive and, therefore, the conversion of the outstanding interest into a term loan liability, albeit with the consent of the lender, cannot be considered as a c…