Merinoply & Chemicals Ltd. v. CIT

209 ITR 508High Court1994#2703 most cited

What is Merinoply & Chemicals Ltd. v. CIT authority for?

Transport subsidies received by a business operating in a backward area, being inseparably connected with the ongoing business and incidental to its expenditure, constitute a revenue or trading receipt taxable under the Income Tax Act.

43

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2025.

Also referred to as

Merinoply & Chemicals Ltd. v. CIT · 209 ITR 508 · Section 2(24) Income Tax Act · Section 28 Income Tax Act · taxability of subsidies · revenue receipt · capital receipt · trading receipt · transport subsidy · incentive scheme · backward area

Sections most often in play

Section 1961Section 2(24) of the Income Tax ActSection 28 of the Income Tax ActSection 41(1) of the Income Tax Act

Issues it is cited on

section 80iabsection 33bsection 75section 10(2a)section 10(35)section 80hsection 40a(9)section 80msection 80icsection 80hhsection 80jsection 115ja

Judgments citing Merinoply & Chemicals Ltd. v. CIT

M/S Chatta Sugar Co. Ltd, Mathura vs. A.C.I..T Circle-3, Mathura

In the result, the appeal of the assessee is allowed

ITA 129/AGR/2015[2009-10]Status: DisposedITAT Agra01 Jul 2025AY 2009-10

Bench: Shri Sunil Kumar Singh & Shri Brajesh Kumar Singh[Assessment Year: 2009-10]

Section 142(1)Section 143(3)Section 28Section 41(1)

…ure in setting up the industry and such incentive was revenue receipt. Further, the Assessing Officer relied upon the decisions of Sahney Steel and Press Works Ltd. vs CIT (1997) 228 ITR 253 (SC) and the decision of Merino Ply and Chemicals Ltd. vs CIT (1994) 209 ITR 508 (Cal) and observed that in this case the grant received by the assessee was to discharge its trading liability and thus it constituted trading receipt and not capital receipts as claimed by the assessee. The AO held that the subject receipt was clearly taxable up 2(24) and Section 28 of the Act. 2.6. The Assessing Officer further noted that as…

Candor Kolkata One Hi- Tech Structures Pvt. Ltd., Maharashtra vs. DCIT, Circle-27(1), New Delhi

Appeals stand allowed

ITA 7762/DEL/2019[2012-13]Status: DisposedITAT Delhi14 Jun 2023AY 2012-13

Bench: Sh. Anil Chaturvedi & Sh.Anubhav Sharma

Section 115JSection 14ASection 14A(2)Section 80

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT 119941 209 ITR 508. held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Candor Gurgaon Two Developers and Project Ltd. (Formerly Knwon As Unitech Developers and Projects Pvt. Ltd.), Mumbai vs. ACIT, Circle- 5(2), New Delhi

Appeals stand allowed

ITA 7839/DEL/2018[2011-12]Status: DisposedITAT Delhi14 Jun 2023AY 2011-12

Bench: Sh. Anil Chaturvedi & Sh.Anubhav Sharma

Section 115JSection 14ASection 14A(2)Section 80

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT 119941 209 ITR 508. held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Candor Gurgaon Two Developers and Project Ltd. (Formerly Knwon As Unitech Developers and Projects Pvt. Ltd.), Mumbai vs. ACIT, Circle- 5(2), New Delhi

Appeals stand allowed

ITA 7470/DEL/2018[2013-14]Status: DisposedITAT Delhi14 Jun 2023AY 2013-14

Bench: Sh. Anil Chaturvedi & Sh.Anubhav Sharma

Section 115JSection 14ASection 14A(2)Section 80

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT 119941 209 ITR 508. held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Candor Kolkata One Hi- Tech Structures Pvt. Ltd., Maharashtra vs. ACIT, Circle-5(2), New Delhi

Appeals stand allowed

ITA 3879/DEL/2018[2014-15]Status: DisposedITAT Delhi14 Jun 2023AY 2014-15

Bench: Sh. Anil Chaturvedi & Sh.Anubhav Sharma

Section 115JSection 14ASection 14A(2)Section 80

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT 119941 209 ITR 508. held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Candor Gurgaon Two Developers and Project Ltd, Mumbai vs. Addl.CIT, Special Range-9, New Delhi

Appeals stand allowed

ITA 2836/DEL/2018[2014-15]Status: DisposedITAT Delhi14 Jun 2023AY 2014-15

Bench: Sh. Anil Chaturvedi & Sh.Anubhav Sharma

Section 115JSection 14ASection 14A(2)Section 80

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT 119941 209 ITR 508. held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Candor Kolkata One Hi- Tech Structures Pvt. Ltd., Maharashtra vs. DCIT, Circle- 18(1), New Delhi

Appeals stand allowed

ITA 6315/DEL/2017[2010-11]Status: DisposedITAT Delhi14 Jun 2023AY 2010-11

Bench: Sh. Anil Chaturvedi & Sh.Anubhav Sharma

Section 115JSection 14ASection 14A(2)Section 80

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT 119941 209 ITR 508. held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

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

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Principal Commissioner of Income Tax, Central-2, Kolkata vs. M/S. Barak Valley Cements Ltd

ITAT/145/2018HC Calcutta06 Jul 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE BIVAS PATTANAYAK

Section 260ASection 80I

…O-30 ITAT/145/2018 IA No.GA/2/2018 (Old No.GA/1086/2018) IN THE HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE COMMISSIONER OF INCOME TAX, CENTRAL-2, KOLKATA -Versus- M/S. BARAK VALLEY CEMENTS LTD. Appearance: Mr. Vipul Kundalia, Adv. Mr. Anurag Roy, Adv. ...for the appellant/revenue. Mr. Pranit Bag, Adv. Ms. Ashis Choudhury, Adv. Ms. Aindrilla Basu, Adv., . . . for the respondent/assessee. BEFORE: The Hon’ble JUSTICE T.S. SIVAGNANAM -And- The Hon’ble JUSTICE BIVAS PATTANAYAK Date : 6th July, 2022. The Court:- This appeal filed by the revenue under Secti…

Tata Chemicals Ltd, Mumbai vs. DCIT 2(2), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2692/MUM/2012[2005-06]Status: DisposedITAT Mumbai06 Jul 2022AY 2005-06

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2440/Mum./2011 ITA no.2692/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Tata Chemicals Ltd. Bombay House, Fort ……………. Appellant Mumbai 400 001 PAN – AAACT4059M v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2), Mumbai ITA no.2733/Mum./2011 ITA no.2553/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Dy. Commissioner of Income Tax ……………. Appellant Circle–2(2), Mumbai v/s Tata Chemicals Ltd. Bombay House, Fort…

DCIT 2(2), Mumbai vs. Tata Chemicals Ltd, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2553/MUM/2012[2005-06]Status: DisposedITAT Mumbai06 Jul 2022AY 2005-06

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2440/Mum./2011 ITA no.2692/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Tata Chemicals Ltd. Bombay House, Fort ……………. Appellant Mumbai 400 001 PAN – AAACT4059M v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2), Mumbai ITA no.2733/Mum./2011 ITA no.2553/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Dy. Commissioner of Income Tax ……………. Appellant Circle–2(2), Mumbai v/s Tata Chemicals Ltd. Bombay House, Fort…

DCIT 2(2), Mumbai vs. Tata Chemicals Ltd, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2733/MUM/2011[2004-05]Status: DisposedITAT Mumbai06 Jul 2022AY 2004-05

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2440/Mum./2011 ITA no.2692/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Tata Chemicals Ltd. Bombay House, Fort ……………. Appellant Mumbai 400 001 PAN – AAACT4059M v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2), Mumbai ITA no.2733/Mum./2011 ITA no.2553/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Dy. Commissioner of Income Tax ……………. Appellant Circle–2(2), Mumbai v/s Tata Chemicals Ltd. Bombay House, Fort…

Tata Chemicals Ltd, Mumbai vs. DCIT 2(3), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2440/MUM/2011[2004-05]Status: DisposedITAT Mumbai06 Jul 2022AY 2004-05

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2440/Mum./2011 ITA no.2692/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Tata Chemicals Ltd. Bombay House, Fort ……………. Appellant Mumbai 400 001 PAN – AAACT4059M v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2), Mumbai ITA no.2733/Mum./2011 ITA no.2553/Mum./2012 (Assessment Year : 2004–05) (Assessment Year : 2005–06) Dy. Commissioner of Income Tax ……………. Appellant Circle–2(2), Mumbai v/s Tata Chemicals Ltd. Bombay House, Fort…

Joint CIT (OSD) Cent Cir. 1(4), Mumbai vs. Grasim Industries Ltd., Mumbai

In the result, all the appeals of the Revenue are dismissed

ITA 2155/MUM/2016[1996-97]Status: DisposedITAT Mumbai29 Apr 2022AY 1996-97
Section 143(3)

…Secondly, the mere fact that in Achi [1966] LXI ITR Ponni, the said question was not challenged before 253 (SC) Supreme Court cannot lead to conclusion that any  Merinoply and incentives after commencement are of revenue nature. Chemicals Ltd. v, CIT [1994] 209 ITR 508 (Cal.) The Supreme Court in Ponni Sugars (supra) after  CIT v. Godavari considering the decision of Sahney held that the only Plywood Ltd [1987] relevant test for identifying whether a subsidy is 168 ITR 632(AP) capital in nature or revenue is its Object i.e. if the  CIT v. P J Chemicals object is to set up a new unit of expansion of existing L…

Tata Chemicals Ltd, Mumbai vs. DCIT 2(3), Mumbai

In the result additional ground raised by the assessee vide additional ground number 3 and ground number 5 of the appeal is allowed

ITA 2439/MUM/2011[2003-04]Status: DisposedITAT Mumbai16 Feb 2022AY 2003-04

Bench: Shri Vikas Awasthy, Jm & Shri Prashant Maharishi, Am Dy. Commissioner Of Income Tata Chemicals Limited Tax 2(3), Bombay House Aayakar Bhavan, Fort, Vs. M.K. Road, Mumbai-400 001 Mumbai-400 020 (Respondent) (Appellant) Pan No. Aaact4059M Appellant By : Shri Nitesh Joshi, Ar Respondent By : Shri Milind Chavan, Dr Date Of Hearing: 20.12.2021 Date Of Pronouncement : 16.02.2022

For Appellant: Shri Nitesh Joshi, ARFor Respondent: Shri Milind Chavan, DR
Section 41Section 80

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

ACIT, Sangrur vs. M/S H.M.Steels Ltd, Dirba

In the result, this appeal of the Revenue is partly allowed

ITA 1101/CHANDI/2016[2011-12]Status: DisposedITAT Chandigarh05 Nov 2018AY 2011-12

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…Subsidy was rightly taken into consideration by the assessee in working out the profits and gains of the business undertaking relying on the decision of Calcutta High Court in the case of Merino Ply and Chemicals Ltd. Vs. CIT (1004) 122 CTR (Cal) 262 :(1994) 209 ITR 508 (Cal.) where the point in issue was whether a receipt on account of transport/freight subsidy was of a revenue nature and was inseparably connected with the business and not whether it was income derived from the business of the industrial undertaking and eligible for deduction u/s 80HH/80IA/80IB of the Income Tax Act. 1961? 3. In the facts and c…

H.M. Steels Ltd., Sangrur vs. ACIT, Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 590/CHANDI/2014[2010-11]Status: DisposedITAT Chandigarh05 Nov 2018AY 2010-11

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…Subsidy was rightly taken into consideration by the assessee in working out the profits and gains of the business undertaking relying on the decision of Calcutta High Court in the case of Merino Ply and Chemicals Ltd. Vs. CIT (1004) 122 CTR (Cal) 262 :(1994) 209 ITR 508 (Cal.) where the point in issue was whether a receipt on account of transport/freight subsidy was of a revenue nature and was inseparably connected with the business and not whether it was income derived from the business of the industrial undertaking and eligible for deduction u/s 80HH/80IA/80IB of the Income Tax Act. 1961? 3. In the facts and c…

H.M. Steels Ltd., Sangrur vs. ACIT, Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 589/CHANDI/2014[2009-10]Status: DisposedITAT Chandigarh05 Nov 2018AY 2009-10

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…Subsidy was rightly taken into consideration by the assessee in working out the profits and gains of the business undertaking relying on the decision of Calcutta High Court in the case of Merino Ply and Chemicals Ltd. Vs. CIT (1004) 122 CTR (Cal) 262 :(1994) 209 ITR 508 (Cal.) where the point in issue was whether a receipt on account of transport/freight subsidy was of a revenue nature and was inseparably connected with the business and not whether it was income derived from the business of the industrial undertaking and eligible for deduction u/s 80HH/80IA/80IB of the Income Tax Act. 1961? 3. In the facts and c…

DCIT, Sangrur vs. M/S H.M. Steel Ltd., Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 584/CHANDI/2014[2010-11]Status: DisposedITAT Chandigarh05 Nov 2018AY 2010-11

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…Subsidy was rightly taken into consideration by the assessee in working out the profits and gains of the business undertaking relying on the decision of Calcutta High Court in the case of Merino Ply and Chemicals Ltd. Vs. CIT (1004) 122 CTR (Cal) 262 :(1994) 209 ITR 508 (Cal.) where the point in issue was whether a receipt on account of transport/freight subsidy was of a revenue nature and was inseparably connected with the business and not whether it was income derived from the business of the industrial undertaking and eligible for deduction u/s 80HH/80IA/80IB of the Income Tax Act. 1961? 3. In the facts and c…

DCIT, Sangrur vs. M/S H.M. Steel Ltd., Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 583/CHANDI/2014[2009-10]Status: DisposedITAT Chandigarh05 Nov 2018AY 2009-10

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…Subsidy was rightly taken into consideration by the assessee in working out the profits and gains of the business undertaking relying on the decision of Calcutta High Court in the case of Merino Ply and Chemicals Ltd. Vs. CIT (1004) 122 CTR (Cal) 262 :(1994) 209 ITR 508 (Cal.) where the point in issue was whether a receipt on account of transport/freight subsidy was of a revenue nature and was inseparably connected with the business and not whether it was income derived from the business of the industrial undertaking and eligible for deduction u/s 80HH/80IA/80IB of the Income Tax Act. 1961? 3. In the facts and c…