National Cement Mines Industries Ltd. v. CIT

42 ITR 69Supreme Court of India1961#9776 most cited

What is National Cement Mines Industries Ltd. v. CIT authority for?

A receipt is only income if it falls within the definition of income under section 2(24) of the Income-tax Act; otherwise, its character remains unchanged. The nature of a receipt, particularly whether it is a trading receipt, is determined by the terms of the agreement between the parties, not by its nomenclature.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2024.

Also referred to as

National Cement Mines Industries Ltd. v. CIT · 42 ITR 69 · section 2(24) · income definition · capital receipt · revenue receipt · trading receipt · nature of receipt · terms of agreement · taxability

Sections most often in play

Section 143(1)Section 143(1)(a)(iv)Section 2(24)Section 28Section 44DB
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Judgments citing National Cement Mines Industries Ltd. v. CIT

ACIT 2 2 1, Mumbai vs. Learningmate Solutions Private Limited, Mumbai

In the result, the appeal of the Revenue is treated as allowed for statistical purposes

ITA 3659/MUM/2024[2022-23]Status: DisposedITAT Mumbai17 Dec 2024AY 2022-23

Bench: Shri B.R. Baskaran & Shri Raj Kumar Chauhanassessment Year : 2022-23 Acit-2(2)(1), Learningmate Solutions Private 5Th Floor, Limited, Aayakar Bhavan, Vs. Level 7 To 10, M.K.Road, 74 Techno Park, Mumbai. 74/Ii, C Cross Road, Midc, Marol Industrial Area, Andheri (East) Mumbai Pan : Aaacl9067F (Appellant) (Respondent) Assessee By : Shri Dhanesh Bafna & Shri Hardik Nirmal & Ms. Tejal Saraf Revenue By : Dr. K.R. Subhash, Cit-Dr Date Of Hearing : 13-11-2024 Date Of Pronouncement : 17-12-2024

For Appellant: Shri Dhanesh Bafna &For Respondent: Dr. K.R. Subhash, CIT-DR
Section 143(1)Section 143(1)(a)Section 28

…e nature of income and as such not to be included in the total income. All receipts of payments do not necessarily bear the income character. Relying upon the decision of Hon'ble Supreme Court in the case of National Cement Mines Industries Ltd. v. CIT [1961] 42 ITR 69 wherein it has been laid down that unless the receipt falls within the definition of income under section 2(24), it does not change the character. It was submitted by the assessee that refund from GST would continue to be of the same character i.e., capital unless the same is specifically brought within the definition of income under section 2(24).…

M/S Bellary Iron-Ores Private Limited, Bellary vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

ITA 15/BANG/2019[2015-16]Status: DisposedITAT Bangalore20 Sept 2023AY 2015-16

Bench: Shri Chandra Poojari & Ms. Madhumita Royassessment Year: 2014-15

For Appellant: Shri Shivprasad Reddy, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 102Section 139(1)Section 173Section 194ASection 226(3)

…ent of the contract and the rights and obligations of the parties flowing therefrom unguided by the nomenclature of the transaction. For this purpose, rely on the judgement of Hon’ble Supreme Court in the case of National Cement Mines Industries Ltd. Vs. CIT (42 ITR 69) (SC). 6.3 While determining the nature of the receipt as being a trading receipt taxable as income from business or profession or otherwise, one should be guided by the terms of the agreement entered into between the parties. Revenue authorities cannot ignore the genuine agreement between the assessee and the concerned parties from whom the said…

M/S Bellary Iron-Ores Pvt Ltd, Bellary vs. The Income Tax Officer Ward-2, Hospet

ITA 1540/BANG/2018[2014-15]Status: DisposedITAT Bangalore20 Sept 2023AY 2014-15

Bench: Shri Chandra Poojari & Ms. Madhumita Royassessment Year: 2014-15

For Appellant: Shri Shivprasad Reddy, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 102Section 139(1)Section 173Section 194ASection 226(3)

…ent of the contract and the rights and obligations of the parties flowing therefrom unguided by the nomenclature of the transaction. For this purpose, rely on the judgement of Hon’ble Supreme Court in the case of National Cement Mines Industries Ltd. Vs. CIT (42 ITR 69) (SC). 6.3 While determining the nature of the receipt as being a trading receipt taxable as income from business or profession or otherwise, one should be guided by the terms of the agreement entered into between the parties. Revenue authorities cannot ignore the genuine agreement between the assessee and the concerned parties from whom the said…

Bsr Infratech India Limited, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-2(1), Bangalore

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

ITA 697/BANG/2022[2017-18]Status: DisposedITAT Bangalore27 Oct 2022AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2017-18

For Appellant: Shri Madhusudhan, A.RFor Respondent: Shri Praveen Karanth, D.R
Section 199Section 234ASection 270ASection 43Section 43C

…ent of the contract and the rights and obligations of the parties flowing therefrom unguided by the nomenclature of the transaction. For this purpose, rely on the judgement of Hon’ble Supreme Court in the case of National Cement Mines Industries Ltd. Vs. CIT (42 ITR 69) (SC). 6.3 While determining the nature of the receipt as being a trading receipt taxable as income from business or profession or otherwise, one should be guided by the terms of the agreement entered into between the parties. Revenue authorities cannot ignore the genuine agreement between the assessee and the concerned parties from whom the said…

DCIT, New Delhi vs. M/S. Mosaic India Pvt. Ltd., New Delhi

The appeal is allowed in this ground

ITA 2325/DEL/2015[2009-10]Status: DisposedITAT Delhi15 Oct 2019AY 2009-10

Bench: Ms Suchitra Kamble & Shri Prashant Maharishii.T.A. No. 2325/Del/2015 (A.Y. 2009-10)

Section 143(3)Section 144C

…1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘C’ NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A. No. 2325/DEL/2015 (A.Y. 2009-10) DCIT Vs. M/s. Mosaic India Pvt. Ltd. Circle 17(1), Y-65, Ground Floor, New Delhi Hauz Khas, New Delhi- 110016 PAN : AACCC4033C (APPELLANT) (RESPONDENT) Appellant by Sh. Manoneet Dalal, Ms. Manisha Jain, Sh. Vishu Goel, CA’s Respondent by Sh. Amit Katoch, Sr.DR Date of Hearing 07.08.2019 Date of Pronouncement 15.10.2019 ORDER PER SUCHITRA KAMBLE, JM This appeal is filed against the order dated 30.01.2015 passed by…

Sujauddin Kasimsab Sayyed, Mumbai vs. Income Tax Officer 2(2), Kalyan

In the result, the appeal is dismissed

ITA 5498/MUM/2018[2015-16]Status: DisposedITAT Mumbai10 Jun 2019AY 2015-16

Bench: Shri Pawan Singh () & Shri N.K. Pradhan () Assessment Year: 2015-16 Sujauddian Kasimsab Income Tax Officer-2(2), 2Nd Sayyed A-5, 202, Floor, Mohan Plaza, Wayle Vs. Vaishali Lok Nagri Nagar, Khadakpada, Kalyan- Chs Ltd. Midc Road, 421301. Ambernath (E)- 421501. Pan No. Axops1247C Appellant Respondent Assessee By : Mr. Neelkanth Khandelwal, Ar Revenue By : Mr. Chaudhary Arun Kumar Singh & Mr. D.G.Pansari, Drs Last Date Of Hearing : 15/03/2019 Date Of Pronouncement : 10/06/2019

For Appellant: Mr. Neelkanth Khandelwal, ARFor Respondent: Mr. Chaudhary Arun Kumar Singh
Section 143(3)Section 56(2)(vii)

…the stamp duty value of such property as exceeds such consideration , shall be chargeable to tax in the hands of the individual or HUF as income from other sources. It is applicable from A.Y. 2014-15. 7.7 In National Cement Mines Industries Ltd. v. CIT [1961] 42 ITR 69 , Justice J.C. Shah (as His Lordship then was) speaking for the Hon’ble Supreme Court emphasized the principles of interpretation to be adopted by the Court in construing a commercial transaction : "the true nature and character of the transaction have to be ascertained from the covenants of the contract in the light of the surrounding circumstance…

Dy.C.I.T. 1(2), Raipur (Cg) vs. M/S Rishabh Infrastructure Pvt.Ltd, Raipur

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

ITA 157/BIL/2014[2011-12]Status: DisposedITAT Raipur23 Oct 2018AY 2011-12

Bench: Sh. R.K. Panda & Ms. Suchitra Kambleassessment Year: 2011-12

Section 165Section 4Section 44A

…s ad idem with the assessee as to terms and conditions. In the absence of the any collusion between the two, it is not possible to vary the terms". 14. According to the Hon’ble Supreme Court in the case of National Cement Mines Industries Ltd. vs. CIT (1961) 42 ITR 69 (SC) in assessing the true character of the receipt for the purpose of the IT Act, inability to ascribe to the transaction a definite category is of little consequence. It is not the nature of the receipt under the general law but in commerce that is material. Referring to the above observations, the Bombay High Court has held in the case of CIT vs…

Deena Asit Mehta, Mumbai vs. DCIT 4(1)(1), Mumbai

In the result, the appeal is partly allowed

ITA 3549/MUM/2016[2012-13]Status: DisposedITAT Mumbai09 Feb 2018AY 2012-13

Bench: Shri D.T. Garasia () & Shri N.K. Pradhan () Assessment Year: 2012-13 Mrs. Deena Asit Mehta Dcit-4(1)(1) 67, 3Rd Block, Poddar Mumbai. Vs. Chambers, S.A. Brelvi Road, Fort, Mumbai-400001 Pan No. Aabpm6683L Appellant Respondent Assessee By : Mr. Satish Modi, Ar Revenue By : Mr. Purushottam Kumar, Dr & Ms. N.Hemlatha, Dr Last Date Of Hearing : 02/02/2018 Date Of Pronouncement : 09/02/2018

For Appellant: Mr. Satish Modi, ARFor Respondent: Mr. Purushottam Kumar, DR
Section 143(3)Section 23

…arties may ascribe to the transaction is not determinative of its character. The nature of the transaction has to be ascertained from the covenants of the contract and from the surrounding circumstances. In National Cement Mines Industries Ltd. vs. CIT [1961] 42 ITR 69, Justice J.C. Shah (as His Lordship then was) speaking for the Hon’ble Supreme Court emphasized the following principles of interpretation to be adopted by the Court in construing a commercial transaction : " The court has, on an appraisal of all the facts, to assess whether a transaction is commercial in character yielding income or is one in cons…

ACIT, New Delhi vs. Shiv Saran Chand Ved Prakash, New Delhi

In the result, the appeal of the Revenue is dismissed and cross objection of the assessee is allowed

ITA 5448/DEL/2013[2004-05]Status: DisposedITAT Delhi19 May 2017AY 2004-05

Bench: Shri R. K. Panda & Ms Suchitra Kamble

Section 132Section 139(1)Section 143Section 153ASection 153A(1)Section 2(22)Section 2(22)(e)

…on must be determined in the light of the terms of the contract and the rights and obligations of the parties following their from unguided by the nomenclatures transaction as held by the Apex Court in the case of National Cement Mines Industries Ltd. vs. CIT 42 ITR 69. 8. The Ld. DR also relied upon the various judgments which are as follows:- 4 ITA No. 5448/Del/2013 & C.O125/Del/2014 “1. M. Amareswara Rao Vs. Dy CIT(A) [157 ITD 657/136 DTR 153/178 TTJ 700] 2. CIT Vs. Kesarwani Zarda Bhandar Sahson Alld. [ITA No. 270 of 2014] (Allahabad). 9. The Ld. AR submitted that in case of ACIT vs. Superb Developers P Lt…

Cairn Uk Holding Ltd., Ahmedabad vs. DCIT (International Taxation), New Delhi

In the result ground No. 5 of the appeal of the assessee is allowed

ITA 1669/DEL/2016[2007-08]Status: DisposedITAT Delhi09 Mar 2017AY 2007-08

Bench: Shri H. S. Sidhu & Shri Prashant Maharishi

For Appellant: Shri Percy Pardiwala Sr. AdvFor Respondent: Shri Sanjay Puri CIT
Section 143(3)Section 144

…P a g e | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ―D‖: NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 1669 /Del/2016 (Assessment Year: 2007-08) Crain U K Holdings V Deputy Commissioner of Limited Income Tax ( International s 50 Lothian Road Taxation) – Circle 1(2)(1) . Edinburgh , Scotland New Delhi EH39BY PAN : AACCC9135H (Appellant) (Respondent) Assessee by : Shri Percy Pardiwala Sr. Adv Shi P Maheshwari, CA Ms. Aarti Sathe, Adv Revenue by: Shri Sanjay Puri CIT Shri Anuj Arora CIT DR Date of Hearing 19/12/2016 Date of pronouncement 09/03/2017 O…

Digital Electronics Ltd, Mumbai vs. Asst CIT 8(1), Mumbai

In the result, the appeal is dismissed

ITA 3258/MUM/2014[2007-08]Status: DisposedITAT Mumbai16 Dec 2016AY 2007-08

Bench: Shri Saktijit Dey() & Shri N.K. Pradhan () Assessment Year: 2007-08

For Appellant: Shri Nitesh Joshi,ARFor Respondent: Shri B. S. Bist, Sr. DR
Section 143(3)Section 2(14)Section 2(47)

…parties may ascribe to the transaction is not determinative of its character. The nature of the transaction has to be ascertained from the covenants of the contract and from the surrounding circumstances. In National Cement Mines Industries Ltd. v. CIT [1961] 42 ITR 69 , Justice J.C. Shah (as His Lordship then was) speaking for the Hon’ble Supreme Court emphasized the principles of interpretation to be adopted by the Court in construing a commercial transaction : "But in assessing the true character of the receipt for the purpose of the Income- tax Act, inability to ascribe to the transaction a definite category…

National Cement Mines Industries Ltd. v. CIT (42 ITR 69) — Cited in 11 Judgments | BharatTax