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.

How many judgments cite Liberty India v. CIT?

571 judgments on BharatTax cite Liberty India v. CIT (317 ITR 218), spanning 2009 to 2026.

Which sections of the Income Tax Act does Liberty India v. CIT come up under?

It is most often cited in judgments turning on Section 143(3), Section 14A, Section 10B, Section 80IB, Section 147, Section 80IA.

Liberty India v. CIT (317 ITR 218)

Deputy Commissioner of Income-Tax, Circle - 8, Pune vs. M/S. Finolex Cables Ltd, Pune

In the result, appeal of the Revenue is partly allowed

ITA 539/PUN/2022[2013-14]Status: DisposedITAT Pune26 May 2023AY 2013-14

Bench: Shri R.S. Syal, Hon. Vice-& Shri Partha Sarathi Chaudhury, Hon.Dcit, Circle-8, Vs M/S. Finolex Cables Ltd., Pune. 26/27, Mumbai Pune Road, Pimpri, Pune. Pan: Aaacf 2637 D Appellant/Revenue Respondent /Assessee Assessee By : Shrij.G. Pendse, Ar Revenue By : Shrim.M. Chate, Cit Dr Date Of Hearing : 24/05/2023 Date Of Pronouncement : 26/05/2023 Order Perpartha Sarathi Chaudhury, Jm: This Appeal Preferred By The Revenue Emanates From The Order Of Commissioner Of Income Tax (Appeals)-13, Pune, Dated 19.05.2022For A.Y.2013-14 As Per The Following Revised Grounds Of Appeal:- “1(A) Whether On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Has Erred In Allowing The Claim Of The Assessee U/S 80Ic On Income Earned From Sale Of Scrap Without Appreciating The Fact That Assesses Itself Categorized Income Earned From Sale Of Scrap As Other Income In The Profit & Loss Statement Of Roorkee Unit Undertaking & The Same Is Not Derived From The Activities Of The Eligible Business. 1(B) Whether On The Facts & Circumstances Of The Case & In Law, The Ld.Cit(A)Has Erred In Ignoring The Decision Of Hon'Ble Supreme Court In The Case Of Liberty India Vs. Cit (2009) 317 Itr 218 (Sc) Wherein The Words "Derived From' Is Explained? 1(C) Whether On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Was Justified In Allowing The Claim Of The Assessee U/S 80Ic On Sale Of Scrap, Relying On The Decision Of The Hon'Ble Madras High Court In The Case Of M/S Fenner India Ltd. (241 Itr 803) Without Appreciating The Facts That The Same Has Been M/S. Finolex Cables Ltd.

For Appellant: ShriJ.G. Pendse, ARFor Respondent: ShriM.M. Chate, CIT DR

Section 143(3)Section 14ASection 80ISection 92(2)Section 92B

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE „C‟ BENCHES:: PUNE BEFORE SHRI R.S. SYAL, HON. VICE-PRESIDENT& SHRI PARTHA SARATHI CHAUDHURY, HON. JUDICIAL MEMBER DCIT, Circle-8, vs M/s. Finolex Cables Ltd., Pune. 26/27, Mumbai Pune Road, Pimpri, Pune. PAN: AAACF 2637 D Appellant/Revenue Respondent /Assessee Assessee by : ShriJ.G. Pendse, AR Revenue by : ShriM.M. Chate, CIT DR Date of hearing : 24/05/2023 Date of pronouncement : 26/05/2023 ORDER PerPARTHA SARATHI CHAUDHURY, JM: This appeal preferred by the Revenue emanates from the order of Commissioner of Income Tax (Appeals)-13, Pune, dated 19.05.2022for A.Y.2013-14…

M/S. Saraf Exports vs. Commissioner of Income Tax, Jaipur - III

C.A. No.-004822-004822 - 2022Supreme Court10 Apr 2023

Bench: HON'BLE MR. JUSTICE M.R. SHAH

Section 143(2)Section 75Section 80

…r, the Income Tax Appellate Tribunal (ITAT) allowed the appeal preferred by the assessee vide order dated 17.12.2013 by inter alia observing that the decision of this Court in the case of Liberty India Vs. Commissioner of Income Tax, (2009) 9 SCC 328 : (2009) 317 ITR 218 (SC) can be said to be per incuriam and allowed the deductions as claimed on the receipts of amount under DEPB Scheme and Duty Drawback Scheme. 2.4 By the impugned judgment and order and relying upon the decision of this Court in the case of Liberty India (supra) and the decision of this Court in the case of Commissioner of Income Tax, Karnata…

Assistant Commissioner of Income-Tax, Central Circle - 1, Visakhapatnam vs. M/S. Nekkanti Sea Foods Ltd., Visakhapatnam

In the result, appeal of the Revenue is dismissed

ITA 158/VIZ/2022[2018-19]Status: DisposedITAT Visakhapatnam17 Mar 2023AY 2018-19

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकरअपीलसं./ I.T.A. No.158/Viz/2022 ("नधा"रणवष"/ Assessment Year: 2018-19) Assistant Commissioner Of Vs. Nekkanti Sea Foods Income Tax, Limited, Central Circle-1, Visakhapatnam. Visakhapatnam. Pan: Aaacn 46664 J (अपीलाथ"/ Appellant) (""यथ"/ Respondent) अपीलाथ"क"ओरसे/ Assessee By : Sri Pawan Chakrapani ""याथ"क"ओरसे/ Revenue By : Sri Mn Murthy Naik, Cit- Dr सुनवाईक"तार"ख/ Date Of Hearing : 08/03/2023 घोषणाक"तार"ख/Date Of : 17/03/2023 Pronouncement O R D E R

For Appellant: Sri Pawan ChakrapaniFor Respondent: Sri MN Murthy Naik, CIT-

Section 127Section 143(1)Section 143(2)Section 143(3)Section 28Section 80I

…आयकरअपील"यअ"धकरण, "वशाखापटणमपीठ, "वशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM "ीदु"वू"आरएलरे"डी, "या"यकसद"यएवं"ीएसबालाकृ"णन, लेखासद"यकेसम" BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./ I.T.A. No.158/Viz/2022 ("नधा"रणवष"/ Assessment Year: 2018-19) Assistant Commissioner of Vs. Nekkanti Sea Foods Income Tax, Limited, Central Circle-1, Visakhapatnam. Visakhapatnam. PAN: AAACN 46664 J (अपीलाथ"/ Appellant) (""यथ"/ Respondent) अपीलाथ"क"ओरसे/ Assessee by : Sri Pawan Chakrapani ""याथ"क"ओरसे/ Revenue by : Sri MN M…

M/S. Charu Crimpweavers Pvt. Ltd, Mumbai vs. Income Tax Officer, WD (6) (2) (1), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 1577/MUM/2022[2009-10]Status: DisposedITAT Mumbai06 Mar 2023AY 2009-10

Bench: Shri B.R. Baskaran (Am) & Shri Rahul Chaudhary (Jm)

Section 133(6)Section 148Section 68

…found satisfied. (ii) Further it was a submission on behalf of the Revenue that such large amount of share premium gives rise to suspicion on the genuineness (identity) of the shareholders i.e. they are bogus. The Apex Court in CIT v/s. Lovely Exports (P)Ltd. 317 ITR 218 in the context to the preamended Section 68 of the Act has held that where the Revenue urges that the amount of share application money has been received from bogus shareholders then it is for the Income Tax Officer to proceed by reopening the assessment of such shareholders and assessing them to tax in accordance with law. It does not entitle th…

Narayan Industires, New Delhi vs. Addi. CIT Spl. Range-19, New Delhi

In the result, the appeal of the assessee is allowed for statistical purpose

ITA 6878/DEL/2019[2015-16]Status: DisposedITAT Delhi03 Mar 2023AY 2015-16

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Rohit Jain, AdvFor Respondent: Sh. Ajay Kumar Arora, Sr. DR

Section 234CSection 37Section 75Section 80Section 80I

…oresaid facts, held that the profits of the industrial undertaking included the amount of duty drawback, which is not eligible for deduction under section 80- IC of the Act as per the decision of the Hon'ble Supreme Court in the case of Liberty India Limited: 317 ITR 218 (SC). It held that the appellant was not eligible for deduction under section 80-IC of the Act on duty drawback to the extent of Rs.1,34,38,482/-. 5. We have gone through rational given by the AO as under: “5.2 I have carefully considered the submission of the AR and vis-à- vis gone through the judgment of Hon'ble Supreme Court in the case of C…

Saraf Exports, Sardarshahar vs. ACIT, Jhunjhunu

In the result, the appeal of the assessee is partly allowed

ITA 104/JPR/2021[2011-12]Status: DisposedITAT Jaipur20 Feb 2023AY 2011-12

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: None (Written submission)For Respondent: Ms Monisha Choudhary (Addl.CIT)

Section 143(3)Section 40Section 801BSection 80ISection 80L

…3.5 The AO also noted that the assessee has claimed a deduction under section 80IB of the Act in respect of Duty Drawback of INR 18,52,184/- also. The AO held that in the light of the decision of the Hon'ble Supreme Court in the case of Liberty India vs. CIT 317 ITR 218 (SC), the Duty Drawback/DEPB do not form part of the net profit of eligible industrial undertaking for the purpose of deduction under section 80IB and hence the AO reduced the claim of deduction u/s 80IB appropriately. 4. Aggrieved by the above disallowances / additions / adjustments, the assessee preferred an appeal before the ld. CIT(A). 5 S…

Addl.CIT, Special Range- 9, New Delhi vs. Vlcc Personal Care Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 3126/DEL/2018[2014-15]Status: DisposedITAT Delhi17 Feb 2023AY 2014-15

Bench: N.K. Billaiya & Ms. Astha Chandraasstt. Year: 2014-15

For Appellant: Shri Vinod Bindal, CAFor Respondent: Shri Vivek Vardhan, Sr. DR

Section 10BSection 143(1)Section 143(3)Section 80Section 80I

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER Asstt. Year: 2014-15 Addl.CIT, Vs. VLCC Personal Care Ltd., Special Range-9, M-14, Commercial Complex, New Delhi. Greater Kailash, Part-II, New Delhi – 110 048. PAN AABCV6538Q (Appellant) (Respondent) Assessee by: Shri Vinod Bindal, CA Department by : Shri Vivek Vardhan, Sr. DR Date of Hearing 02/02/2023 Date of 17/02/2023 pronouncement O R D E R PER ASTHA CHANDRA, JM The appeal filed by the Revenue is directed against the order dated 30.01.2018 of the Ld. Commissioner of I…

Addl CIT RG 8(2), Mumbai vs. Oracle Financial Services Software Ltd ( Formerly Known M.S, I-Flex Solutions Ltd), Mumbai

In the result, appeal is dismissed

ITA 5079/MUM/2010[2005-06]Status: DisposedITAT Mumbai16 Jan 2023AY 2005-06

Bench: Shri Kuldip Singh & Shri Gagan Goyalassessment Year: 2005-06 M/S. Oracle Financial Additional Commissioner Services Software Ltd. Of Income Tax, (Formerly Known As I-Flex Range 8(2), Solutions Ltd.), Mumbai Oracle Park, Vs. Off Western Express Highway, Goregaon (East), Mumbai – 400 063 Pan: Aaacc1448B (Appellant) (Respondent) Assessment Year: 2005-06 Dcit 8(2), M/S. Oracle Financial Room No.216-A, Services Software Ltd. Aayakar Bhavan, (Formerly Known As I-Flex M.K. Road, Vs. Solutions Ltd.), Mumbai - 400020 399, Subhash Road, Vile Parle (East), Mumbai – 400 057 Pan: Aaacc1448B (Appellant) (Respondent)

For Appellant: Shri Ajit Jain, A.R. &For Respondent: Dr. Yogesh Kamat, CIT D.R

Section 10ASection 14A

…ction 10A of the Income Tax Act, 1961 (for short 'the Act' ) for the reason that interest income has not been derived from exempt industrial undertaking. The Ld. CIT(A) by relying upon the decision rendered by Honourable Supreme Court in case of Liberty India 317 ITR 218 held that while claiming a deduction the receipts beyond the first degree cannot be considered and as such interest income cannot be said to be derived from business of development of software being not of first degree thus upheld the findings returned by the AO that interest income by the assessee is income from other sources. The Ld. AR for the…

Oracle Financial Services Software Ltd ( Formerly Knwoan As I-Flex Solutions Ltd ), Mumbai vs. Addl CIT RG 8(2), Mumbai

In the result, appeal is dismissed

ITA 4489/MUM/2010[2005-06]Status: DisposedITAT Mumbai16 Jan 2023AY 2005-06

Bench: Shri Kuldip Singh & Shri Gagan Goyalassessment Year: 2005-06 M/S. Oracle Financial Additional Commissioner Services Software Ltd. Of Income Tax, (Formerly Known As I-Flex Range 8(2), Solutions Ltd.), Mumbai Oracle Park, Vs. Off Western Express Highway, Goregaon (East), Mumbai – 400 063 Pan: Aaacc1448B (Appellant) (Respondent) Assessment Year: 2005-06 Dcit 8(2), M/S. Oracle Financial Room No.216-A, Services Software Ltd. Aayakar Bhavan, (Formerly Known As I-Flex M.K. Road, Vs. Solutions Ltd.), Mumbai - 400020 399, Subhash Road, Vile Parle (East), Mumbai – 400 057 Pan: Aaacc1448B (Appellant) (Respondent)

For Appellant: Shri Ajit Jain, A.R. &For Respondent: Dr. Yogesh Kamat, CIT D.R

Section 10ASection 14A

…ction 10A of the Income Tax Act, 1961 (for short 'the Act' ) for the reason that interest income has not been derived from exempt industrial undertaking. The Ld. CIT(A) by relying upon the decision rendered by Honourable Supreme Court in case of Liberty India 317 ITR 218 held that while claiming a deduction the receipts beyond the first degree cannot be considered and as such interest income cannot be said to be derived from business of development of software being not of first degree thus upheld the findings returned by the AO that interest income by the assessee is income from other sources. The Ld. AR for the…

JCIT(OSD)-10(2)(1), Mumbai vs. M/S.Jyothy Laboratories Limited, Mumbai

In the result, both the appeals of the revenue are dismissed and Cross Objection filed by the assessee are partly allowed

ITA 3876/MUM/2018[2014-15]Status: DisposedITAT Mumbai28 Dec 2022AY 2014-15

Bench: Shri Amit Shukla & Shri Amarjit Singh

For Appellant: Solgy Jose T. KottaramFor Respondent: J.D. Mistry

Section 115JSection 143(2)Section 143(3)Section 14ASection 229Section 80I

…ITA Nos. 3875 &3876/Mum/2018 and C.O Nos. 149 & 150/Mum/2019 1 DCIT-10(2)(1) Vs. M/s Jyothy Laboratories Limited IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA Nos. 3875 & 3876/Mum/2018 s (A.Ys.2013-14 & 2014-15) DCIT-10(2)(1) Vs. M/s Jyothy Laboratories R. No. 216-A, Aayakar Limited, Ujala House, Bhavan, M.K. Road, Ram Krishna Mandir Mumbai – 400 020 Road, Kondivita, Andheri (East), Mumbai -400 059 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACJ3213B Appellant .. Respondent C.O. Nos. 149 & 150/Mum/2019 s (A.Ys.2013-…

DCIT-10(2)(1), Mumbai vs. M/S.Jyothy Laboratories Limited, Mumbai

In the result, both the appeals of the revenue are dismissed and Cross Objection filed by the assessee are partly allowed

ITA 3875/MUM/2018[2013-14]Status: DisposedITAT Mumbai28 Dec 2022AY 2013-14

Bench: Shri Amit Shukla & Shri Amarjit Singh

For Appellant: Solgy Jose T. KottaramFor Respondent: J.D. Mistry

Section 115JSection 143(2)Section 143(3)Section 14ASection 229Section 80I

…ITA Nos. 3875 &3876/Mum/2018 and C.O Nos. 149 & 150/Mum/2019 1 DCIT-10(2)(1) Vs. M/s Jyothy Laboratories Limited IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA Nos. 3875 & 3876/Mum/2018 s (A.Ys.2013-14 & 2014-15) DCIT-10(2)(1) Vs. M/s Jyothy Laboratories R. No. 216-A, Aayakar Limited, Ujala House, Bhavan, M.K. Road, Ram Krishna Mandir Mumbai – 400 020 Road, Kondivita, Andheri (East), Mumbai -400 059 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACJ3213B Appellant .. Respondent C.O. Nos. 149 & 150/Mum/2019 s (A.Ys.2013-…

ACIT -3(1)(2), Mumbai vs. Hikal Ltd., Mumbai

In the result, the In the result, the appeal of Revenue for assessment year 2010

ITA 2320/MUM/2016[2010-11]Status: DisposedITAT Mumbai28 Dec 2022AY 2010-11

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2010-11 & Assessment Year: 2011-12 Acit-3(1)(2), Hikal Ltd., Room No. 607, 6Th Floor, 717/718, Maker Chambers V, Aayakar Bhavan, Vs. Nariman Point, Mumbai-400020. Mumbai-400021. Pan No. Aaach 0383 A Appellant Respondent : Revenue By Mr. Sanjay Vishwas Rao Deshmukh, Cit-Dr/ Mr. R.N. D’Souza, Dr Assessee By : Mr. Sanjay Parikh, Ar : Date Of Hearing 02/11/2022 Date Of Pronouncement : 28/12/2022

For Appellant: Mr. Sanjay Parikh, ARFor Respondent: Revenue by Mr. Sanjay Vishwas Rao

Section 14A

…hich have been rendered for which he relied on various case laws which have been rendered after considering the decision of Hon’ble Supreme Court in the Hon’ble Supreme Court in the after considering the decision of case of Liberty India case of Liberty India 317 ITR 218, viz.:  CIT v. Hewlett Packard Global Soft CIT v. Hewlett Packard Global Soft Ltd. [2018] 403 ITR 453 (Kar.) Ltd. [2018] 403 ITR 453 (Kar.)  Odisha Power Generation Corporation Ltd. v. ACIT [2022] 215 dtrr Odisha Power Generation Corporation Ltd. v. ACIT [2022] 215 dtrr Odisha Power Generation Corporation Ltd. v. ACIT [2022] 215 dtrr (Ori) 73…

M/S. Menzies Aviation Bobba (Bangalore) Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-4(1)(2), Bangalore

In the result, the appeal by the assessee is allowed

ITA 854/BANG/2022[2017-18]Status: DisposedITAT Bangalore05 Dec 2022AY 2017-18

Bench: Shri N.V. Vasudevan & Ms. Padmavathy Sassessment Year : 2017-18

For Appellant: Shri Pavan Kumar, R S V S, AdvocateFor Respondent: Shri K R Narayana, Addl.CIT(DR)(ITAT), Bengaluru

Section 143(2)Section 80I

…mitted that it is not a profit derived from the undertaking. The benefit under section 80IC could not therefore have been granted. He also relied on a judgment of the Supreme Court in the case of Liberty India v. Commissioner of Income Tax, reported in (2009) 317 ITR 218 (SC) wherein it was held that subsidy by way of customs duty draw back could not be treated as a profit derived from the industrial undertaking. We have not been impressed by the submissions advanced by Mr. Bandhyopadhyay. The judgment of the Apex Court in the case of Page 11 of 16 Liberty India (supra) was in relation to the subsidy arising out…