Liberty India v. CIT

317 ITR 218Supreme Court of India2009#109 most cited

What is Liberty India v. CIT authority for?

The Supreme Court clarified that for profits and gains to be eligible for deductions under sections like 10B, 80IA, or 80IB, the income must be "derived from" or have a direct nexus to the eligible business activity. Income from incidental sources like the sale of scrips/licenses or interest on employee loans is generally not considered as derived from the eligible business for such deductions.

571

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2009 to 2026.

Also referred to as

Liberty India v. CIT · 317 ITR 218 · section 10B · section 80IA · section 80IB · profits derived from · direct nexus · eligible business · export undertaking deduction · sale of scrips income · interest income deduction

Also reported as

183 Taxmann 349

Sections most often in play

Section 143(3)Section 14ASection 10BSection 80IBSection 147Section 80IASection 1961Section 250
Read the full judgment

Issues it is cited on

section 75section 80hsection 80hhsection 80hhcsection 80icsection 80ibeligible businessdeduction under section 80iasection 80isection 80iadisallowance u/s 14agross total income

Judgments citing Liberty India v. CIT

Krishak Bharati Cooperative Ltd vs. Deputy Commissioner of Income Tax

The appeals are allowed

ITA/1248/2010HC Delhi24 Jul 2013

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

For Appellant: Mr S. Ganesh, Sr Advocate with Ms Surekha RamanFor Respondent: Mr Rohit Madan Kumar, Ms Pushpa Sharma
Section 260Section 80

…industrial undertaking for any profit or gains therefrom to qualify for deduction under Section 80-I of the said Act. The learned counsel for the revenue also referred to the decision of the Supreme Court in Liberty India v. Commissioner of Income-tax: (2009) 317 ITR 218 (SC). In that decision, the Supreme Court, in the context of Section 80-IB, which, for our purposes, is similar to Section 80-I, observed as under:- “14. … It is evident that section 80-IB provides for allowing of deduction in respect of profits and gains derived from the eligible business. The words “derived from” are narrower in connotation as…

Krishak Bharati Cooperative Ltd vs. Deputy Commissioner of Income Tax

The appeals are allowed

ITA - 1248 / 2010HC Delhi24 Jul 2013
For Appellant: Mr S. Ganesh, Sr Advocate with Ms Surekha RamanFor Respondent: Mr Rohit Madan Kumar, Ms Pushpa Sharma
Section 260Section 80

…industrial undertaking for any profit or gains therefrom to qualify for deduction under Section 80-I of the said Act. The learned counsel for the revenue also referred to the decision of the Supreme Court in Liberty India v. Commissioner of Income-tax: (2009) 317 ITR 218 (SC). In that decision, the Supreme Court, in the context of Section 80-IB, which, for our purposes, is similar to Section 80-I, observed as under:- “14. … It is evident that section 80-IB provides for allowing of deduction in respect of profits and gains derived from the eligible business. The words “derived from” are narrower in connotation as…

The Commissioner of Income Tax vs. M/S Novell Software Development (I) Pvt Ltd

In the result, this appeal is allowed in part and

ITA/251/2007HC Karnataka10 Jun 2013

Bench: D.V.SHYLENDRA KUMAR,B.S.INDRAKALA

Section 260Section 260ASection 80ASection 80H

…1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 10TH DAY OF JUNE, 2013 PRESENT THE HON’BLE MR. JUSTICE D. V. SHYLENDRA KUMAR AND THE HON’BLE MRS. JUSTICE B.S. INDRAKALA ITA NO.251/2007 BETWEEN: 1. The Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bangalore. 2. The Income Tax Officer, Ward-12(1), C.R. Building, Queens Road, Bangalore. …Appellants (By Sri. K.V. Aravind, Advocate ) AND: M/s. Novell Software Development (I) Pvt. Ltd., No. 49/1 and 49/2, Garvebhavi Palya, 7th Mile, Hosur Road, Bangalore-560 068.…

The Commissioner of Income Tax vs. M/S Garniwal Exports (P) Ltd

Appeal is allowed

ITA/100/2007HC Karnataka06 Jun 2013

Bench: D.V.SHYLENDRA KUMAR,B.S.INDRAKALA

Section 260Section 80H

…ctivity in 9 the sense, the quotas are incidental to the export made by the assessee in the earlier years. 12. Reliance is also placed on another decision of the Supreme Court in the case of LIBERTY INDIA vs COMMISSIONER OF INCOME TAX ((2009) 317 ITR 218) at paragraphs 13 to 18 wherein the words ‘derived from’ had come in for further examination and the earlier view is also followed and though, these two decisions of the Supreme Court were rendered in the context of the provisions of Section 80HH, 80-IA and 80-IB of the Act respectively, they are also in the nature of export incentive dedu…

The Commissioner of Income Tax vs. M/S Weizmann Homes Ltd

ITA/918/2006HC Karnataka04 Mar 2013

Bench: B.MANOHAR,N.KUMAR

Section 260Section 260ASection 36(1)(viii)

…e the same 15 view is reiterated in the case of National Co-operative Development Corporation -vs- Asstt. CTI reported in 2012 TaxPub (DT) 0014 (Del-HC). The Apex Court in the case of Liberty India -vs- Commissioner of Income Tax reported in (2009) 317 ITR 218, held at page 11 at para 14 that the words `derived from' is narrower in connotation as compared to the words `attributable to'. In other words, by using the expression `derived from', Parliament intended to cover sources not beyond the first degree. There cannot be any quarrel with the said propositions. 9. In the instant case, the…

Commissioner of Income Tax vs. S.M.Flanges P.Ltd

The appeal is partly allowed in the above terms

ITA/1153/2009HC Delhi13 Sept 2012

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.V.EASWAR

Section 7Section 80

…to have been affirmed by the Supreme Court in Jt. CIT v. Mandideep Engg & Packaging Industry, (2007) 292 ITR 1. The second question is answered in favour of the Revenue in view of the decision of the Supreme Court reported as Liberty India Vs. CIT (2009) 317 ITR 218 (SC), which held as follows: - "Continuing our analysis of Sections 80-IA/80-IB it may be mentioned that sub-section (1 3) of Section 80-IB provides for applicability of the provisions of sub-section (5) and sub- sections (7) to {1 2) of Section 80-IA, so far as may be, applicable to the eligible business under Section 80-IB. Therefore, at th…

Commissioner of Income Tax vs. S.M.Flanges P.Ltd

The appeal is partly allowed in the above terms

ITA - 1153 / 2009HC Delhi13 Sept 2012
Section 7Section 80

…to have been affirmed by the Supreme Court in Jt. CIT v. Mandideep Engg & Packaging Industry, (2007) 292 ITR 1. The second question is answered in favour of the Revenue in view of the decision of the Supreme Court reported as Liberty India Vs. CIT (2009) 317 ITR 218 (SC), which held as follows: - "Continuing our analysis of Sections 80-IA/80-IB it may be mentioned that sub-section (1 3) of Section 80-IB provides for applicability of the provisions of sub-section (5) and sub- sections (7) to {1 2) of Section 80-IA, so far as may be, applicable to the eligible business under Section 80-IB. Therefore, at th…

Pine Packaging Pvt Ltd

ITA - 656 / 2011HC Delhi29 Mar 2012
Section 80Section 80I

…ity (see Pandian Chemicals versus CIT, (2003) 262 ITR 2012:DHC:2206-DB ITA No. 656/2011 Page 10 of 21 278 (SC) and Liberty India versus CIT, (2009) 317 ITR 218 (SC). 10. In view of the said legal position, we turn to and examine the terms and conditions of the agreement dated 23rd June, 2004 to decipher whether the standing charges payable under the said agreement had the first degree and direct nexus as receipts/income earned from manufacture or production of articles and things as specified.…

Pine Packaging Private Limited

ITA/656/2011HC Delhi29 Mar 2012
Section 80Section 80I

…ity (see Pandian Chemicals versus CIT, (2003) 262 ITR 2012:DHC:2206-DB ITA No. 656/2011 Page 10 of 21 278 (SC) and Liberty India versus CIT, (2009) 317 ITR 218 (SC). 10. In view of the said legal position, we turn to and examine the terms and conditions of the agreement dated 23rd June, 2004 to decipher whether the standing charges payable under the said agreement had the first degree and direct nexus as receipts/income earned from manufacture or production of articles and things as specified.…

Commissioner of Income Tax vs. M/s.Kakinada Co-operative Town Bank Limited

ITTA/571/2011HC Telangana28 Feb 2012

Bench: GODA RAGHURAM,M.S.RAMACHANDRA RAO

Commissioner of Income tax -III vs. Srilekha Hire Purchase AND Finance Pvt. Limited

ITTA/202/2008HC Telangana02 Feb 2012

Controla & Switchgear Co Ltd vs. Deputy Commissioner of Income Tax

Accordingly we are not inclined to admit the appeal. The same is dismissed

ITA/1155/2011HC Delhi14 Nov 2011
Section 14ASection 260ASection 80I

…earned by the Haridwar unit. It is accordingly, submitted that the finding recorded by the Tribunal/CIT(A) are not factually correct. He has also relied upon the decision of the Hon’ble Supreme Court in Liberty India Vs. Commissioner of Income Tax (2009) 317 ITR 218. In particular reliance is placed in para 15 of the said judgment, which is reproduced below. “15. Continuing our analysis of Sections 80IA/80IB it may be mentioned that Sub-section (13) of Section 80IB provides for applicability of the provisions of Sub-section (5) and Sub- sections (7) to (12) of Section 80IA, so far as may be, applicabl…

Commissioner of Income Tax vs. M/S K.Venkateswara Rao

ITTA/188/2003HC Telangana21 Jun 2011

Bench: V.V.S.RAO,RAMESH RANGANATHAN

CIT vs. Le Passage to India Tours & Travels Pvt Ltd

ITA/1859/2010HC Delhi08 Apr 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

Section 80

…ITA 1859/2010 Page 1 of 14 * IN THE HIGH COURT OF DELHI AT NEW DELHI + [ITA 1859 OF 2010] RESERVED ON: 05.4.2011 % PRONOUNCED ON: 08.4.2011 COMMISSIONER OF INCOME TAX . . . APPELLANT Through : Mr. Sanjeev Sabharwal, Sr. Standing Counsel VERSUS LE PASSAGE TO INDIA TOUR . . .RESPONDENT & TRAVELS PVT. LTD. Through: Mr. Ajay Vohra, Advocate with Ms. Kavita Jha and Mr. Somnath Shukla, Advocates. CORAM…

CIT vs. Le Passage to India Tours & Travels Pvt Ltd

ITA - 1859 / 2010HC Delhi08 Apr 2011
Section 80

…ITA 1859/2010 Page 1 of 14 * IN THE HIGH COURT OF DELHI AT NEW DELHI + [ITA 1859 OF 2010] RESERVED ON: 05.4.2011 % PRONOUNCED ON: 08.4.2011 COMMISSIONER OF INCOME TAX . . . APPELLANT Through : Mr. Sanjeev Sabharwal, Sr. Standing Counsel VERSUS LE PASSAGE TO INDIA TOUR . . .RESPONDENT & TRAVELS PVT. LTD. Through: Mr. Ajay Vohra, Advocate with Ms. Kavita Jha and Mr. Somnath Shukla, Advocates. CORAM…

Commissioner of Income Tax vs. Ranbaxy Laboratories Ltd

Appeal is allowed in

ITA/377/2010HC Delhi17 Mar 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

Section 115Section 43Section 43BSection 80I

…. Syali, learned Senior Counsel appearing for the respondent/assessee fairly concedes that this issue has to be decided in favour of the Revenue in view of the judgment of Supreme Court in the case of Liberty India Vs. Commissioner of Income Tax,317 ITR 218. 4. Questions no. (c) and (d) relate to the provision for pension made by the assessee. The assessee is following mercantile system of accounting. It is having Superannuation Scheme for its employees. As per the assessee, in order to retain managerial employees it also introduced pension scheme for such managerial employees whic…

M/S Lotus Trans Travels P. Ltd vs. Commissioner of Income Tax

Appeals are dismissed

ITA-241/2004HC Delhi24 Dec 2010
Section 80Section 80H

…rofits and gains and the industrial undertaking. This view was reiterated by the Apex Court in Hindustan Liver Ltd. Vs. CIT, 239 ITR 297. In a recent judgment pronounced by the Supreme court in the case of Liberty India Vs. Commissioner of Income Tax [317 ITR 218], the principle is revisited in a more lucid manner. The Court reiterated the distinction between the expression “derived from” and considered the expression “derived from” in contra distinction the term “attributable to” and held that the connotation of the words “derived from “ is narrower as compared to that of the words “attributabl…

Commissioner of Income Tax Delhi I vs. Asahi India Glass Ltd

Appeal is allowed partly

ITA - 522 / 2009HC Delhi16 Dec 2010
Section 80HSection 80I

…earned counsel for the appellant/Revenue had made a submission that the questions of law proposed in this appeal are covered by two judgments, viz., one by the judgment of the Supreme Court in the case of Liberty India Vs. Commissioner of Income Tax [317 ITR 218] and other by the judgment of this Court in the case of M/s Great Eastern Exports?Vs.?The Commissioner of Income Tax in ITA No.267 of 2008 (decided on 29.011.2010). Learned counsel for the respondent assessee had sought some time to look into the aforesaid aspect. However, as aforesaid, counsel for the respondent has not appeared t…

Great Eastern Exports vs. Assistant Commissioner of Income Tax

ITA/267/2008HC Delhi29 Nov 2010

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 80Section 80HSection 80I

…ITA 267 OF 2008, ITA 1316 OF 2008, ITA 4 OF 2009, Page 1 of 37 ITA 907 OF 2009, ITA 906 OF 2008, ITA 1002 OF 2008 REPORTABLE * IN THE HIGH COURT OF DELHI AT NEW DELHI ITA 267 OF 2008, ITA 1316 OF 2008 ITA 4 OF 2009, ITA 907 OF 2009 ITA 906 OF 2008, ITA 1002 OF 2008 % Judgment reserved on:13.07.2010 Date of Decision:29.11.2010. (1) ITA 267 OF 2008 M/s Great Eastern Exports ….APPELLANT Through: Mr. Kanan Kapoor, Advocate Versus The Commissioner o f Income Tax ….RESPONDENT Through: Ms. Prem…

Commissioner of Income Tax Del vs. Eltek Sgs P.Ltd

Appeal stands allowed

ITA - 642 / 2007HC Delhi08 Jul 2010
Section 80Section 80HSection 80I

…ing in his favour namely the assessee was entitled to deduction under Section 80 IB of the Act in respect of duty drawback, the Supreme Court in appeal filed by the Revenue set aside the judgment of this Court relying upon its earlier judgment reported in 317 ITR 218. Copy of the Supreme Court order passed in the case of assessee is produced before us, relevant portion whereof reads as under:- 2010:DHC:3343-DB The issue is squarely covered in favour of the Department vide our judgment in the case of M/s. Liberty India Vs. C.I.T., Karnal, reported in 317 ITR 218. Accordingly, civil Appeal sta…