Pandian Chemicals Ltd. v. CIT

262 ITR 278Supreme Court of India2003#217 most cited

What is Pandian Chemicals Ltd. v. CIT authority for?

Income eligible for deduction under Section 80IA or 80IC must have a direct nexus with the eligible business activity of the industrial undertaking. Income merely incidental to the business, even if part of the assessee's overall business, is not considered "derived from" the eligible undertaking.

353

judgments rely on this decision, according to BharatTax’s citation analysis of 367,164 Indian tax judgments — from 2007 to 2026.

Also referred to as

Pandian Chemicals Ltd. v. CIT · 262 ITR 278 · Section 80IA deduction · Section 80IC deduction · income derived from · direct nexus · incidental income · eligible business activity · profits derived from industrial undertaking · statutory interpretation

Also reported as

129 Taxmann 539

Sections most often in play

Section 1961Section 143(3)Section 250Section 148Section 115JBSection 147Section 14ASection 263

Issues it is cited on

section 274(2)casus omissussection 80hinitial assessment yearsection 80hheligible businesssection 144badeduction under section 80iasection 80hhcsection 144asection 158bcsection 80ib

Judgments citing Pandian Chemicals Ltd. v. CIT

ITO, Rishikesh vs. M/S. M.L. Creations, New Delhi

In the result, appeal of the revenue is dismissed

ITA 2907/DEL/2016[2011-12]Status: DisposedITAT Delhi13 Sept 2019AY 2011-12

Bench: Shri Prashant Maharishi & Shri K. Narasimha Chary

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Smt. Aparna Karan, CIT-DR
Section 80I

…found barring minor discrepancies in quantities. 5. Learned CIT(A) further observed that even if the interest was earned on security or FDR pledged as margin money as per the decision of the Hon'ble Supreme Court in the case of Pandian Chemicals Ltd. vs CIT, 262 ITR 278 (SC), the said interest cannot be said to arise out of the business of manufacturing and it is, therefore, not eligible for deduction u/s 80IC even though it may be attributable to the business and assessable as business income rather than other income. Learned CIT(A), therefore, while placing reliance on the factual findings of his predecessor f…

Assistant Commissioner of Income-Tax vs. Laxmi Civil Engineering Services Pvt. Ltd., Kolhapur

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

ITA 1244/PUN/2015[2008-09]Status: DisposedITAT Pune31 Jul 2019AY 2008-09

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.1176/Pun/2015 यििाारण वषा / Assessment Year : 2008-09

For Appellant: S/Shri M.K. Kulkarni and S.N. PuranikFor Respondent: Shri S.B. Prasad, CIT
Section 143(3)Section 14ASection 80I

…0 profits and gains derived from such business are to be allowed as deduction. In this regard, reliance was placed on the ratio laid down by the Hon'ble Supreme Court in CIT Vs. Sterling Foods (1999) 237 ITR 579 (SC) and Pandian Chemicals Ltd. Vs. CIT (2003) 262 ITR 278 (SC). Our attention was drawn to Paper Book 6A and the details in Paper Book 6A and pointed out that all the items were not directly derived from industrial undertaking. He further stated that there was no merit in plea of assessee of direct nexus between income and the business undertaking. Our attention was drawn to bank interest of ₹ 1,17,218/…

Laxmi Civil Engineering Services Pvt. Ltd., Kolhapur vs. Assistant Commisisoner of Income-Tax

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

ITA 1176/PUN/2015[2008-09]Status: DisposedITAT Pune31 Jul 2019AY 2008-09

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.1176/Pun/2015 यििाारण वषा / Assessment Year : 2008-09

For Appellant: S/Shri M.K. Kulkarni and S.N. PuranikFor Respondent: Shri S.B. Prasad, CIT
Section 143(3)Section 14ASection 80I

…0 profits and gains derived from such business are to be allowed as deduction. In this regard, reliance was placed on the ratio laid down by the Hon'ble Supreme Court in CIT Vs. Sterling Foods (1999) 237 ITR 579 (SC) and Pandian Chemicals Ltd. Vs. CIT (2003) 262 ITR 278 (SC). Our attention was drawn to Paper Book 6A and the details in Paper Book 6A and pointed out that all the items were not directly derived from industrial undertaking. He further stated that there was no merit in plea of assessee of direct nexus between income and the business undertaking. Our attention was drawn to bank interest of ₹ 1,17,218/…

Transtroy (India) Limited, Guntur vs. Assistant Commissioner, Circle 2(1), Guntur

The appeal of the Revenue is allowed for A

ITA 248/VIZ/2018[2014-15]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2014-15

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.162 & 163/Viz/2015, 470/Viz/2016, 509/Viz/2017 & 193/Viz/2018 (निर्धारण वर्ा/Assessment Year:2009-10, 2011-12 To 2014-15 Respectively) Asst.Commissioner Of Vs. M/S Transstroy (India) Ltd. Income Tax Guntur Circle-2(1) Guntur [Pan : Aabct4226B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.Nos.193/Viz/2015, 430/Viz/2016, 529/Viz/2017 & 248/Viz/2018 (निर्धारण वर्ा/Assessment Years:2011-12 To 2014-15 Respectively) M/S Transstroy (India) Ltd. Asst.Commissioner Of Guntur Income Tax Circle-2(1) [Pan : Aabct4226B] Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Dr निर्धाऩरती की ओर से / Assessee By : Shri T.Chaitanya Kumar, Ar सुिवधई की तधरीख / Date Of Hearing : 07.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19.07.2019

For Appellant: Shri T.Chaitanya Kumar, ARFor Respondent: Shri D.K.Sonowal, DR
Section 143(3)Section 40A(3)Section 80I

…,49,78,431/-. Similarly for the A.Y 2013-14 the assessee had admitted the interest income of Rs.7,84,50,189/- and other non operating income of Rs.3,00,09,713/-.The AO observed from the order of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd., 262 ITR 278 (SC) that the assessee is not entitled for deduction u/s 80IA(4) since, the other income declared by the assessee has no first degree nexus for earning the profits of the organisation. Since the word used in section 80IA(4) is ‘derived’ but not ‘attributable to’ the AO held that the assessee is not entitled for deduction and accordingly, assessed…

Assistant Commissioner of Income Tax, Circle-2(1), Guntur vs. Transstory (India) Limited, Guntur

The appeal of the Revenue is allowed for A

ITA 193/VIZ/2018[2014-15]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2014-15

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.162 & 163/Viz/2015, 470/Viz/2016, 509/Viz/2017 & 193/Viz/2018 (निर्धारण वर्ा/Assessment Year:2009-10, 2011-12 To 2014-15 Respectively) Asst.Commissioner Of Vs. M/S Transstroy (India) Ltd. Income Tax Guntur Circle-2(1) Guntur [Pan : Aabct4226B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.Nos.193/Viz/2015, 430/Viz/2016, 529/Viz/2017 & 248/Viz/2018 (निर्धारण वर्ा/Assessment Years:2011-12 To 2014-15 Respectively) M/S Transstroy (India) Ltd. Asst.Commissioner Of Guntur Income Tax Circle-2(1) [Pan : Aabct4226B] Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Dr निर्धाऩरती की ओर से / Assessee By : Shri T.Chaitanya Kumar, Ar सुिवधई की तधरीख / Date Of Hearing : 07.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19.07.2019

For Appellant: Shri T.Chaitanya Kumar, ARFor Respondent: Shri D.K.Sonowal, DR
Section 143(3)Section 40A(3)Section 80I

…,49,78,431/-. Similarly for the A.Y 2013-14 the assessee had admitted the interest income of Rs.7,84,50,189/- and other non operating income of Rs.3,00,09,713/-.The AO observed from the order of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd., 262 ITR 278 (SC) that the assessee is not entitled for deduction u/s 80IA(4) since, the other income declared by the assessee has no first degree nexus for earning the profits of the organisation. Since the word used in section 80IA(4) is ‘derived’ but not ‘attributable to’ the AO held that the assessee is not entitled for deduction and accordingly, assessed…

Transstroy(India)Limited, Guntur vs. ACIT, Circle-2(1), Guntur

The appeal of the Revenue is allowed for A

ITA 529/VIZ/2017[2013-14]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2013-14

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.162 & 163/Viz/2015, 470/Viz/2016, 509/Viz/2017 & 193/Viz/2018 (निर्धारण वर्ा/Assessment Year:2009-10, 2011-12 To 2014-15 Respectively) Asst.Commissioner Of Vs. M/S Transstroy (India) Ltd. Income Tax Guntur Circle-2(1) Guntur [Pan : Aabct4226B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.Nos.193/Viz/2015, 430/Viz/2016, 529/Viz/2017 & 248/Viz/2018 (निर्धारण वर्ा/Assessment Years:2011-12 To 2014-15 Respectively) M/S Transstroy (India) Ltd. Asst.Commissioner Of Guntur Income Tax Circle-2(1) [Pan : Aabct4226B] Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Dr निर्धाऩरती की ओर से / Assessee By : Shri T.Chaitanya Kumar, Ar सुिवधई की तधरीख / Date Of Hearing : 07.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19.07.2019

For Appellant: Shri T.Chaitanya Kumar, ARFor Respondent: Shri D.K.Sonowal, DR
Section 143(3)Section 40A(3)Section 80I

…,49,78,431/-. Similarly for the A.Y 2013-14 the assessee had admitted the interest income of Rs.7,84,50,189/- and other non operating income of Rs.3,00,09,713/-.The AO observed from the order of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd., 262 ITR 278 (SC) that the assessee is not entitled for deduction u/s 80IA(4) since, the other income declared by the assessee has no first degree nexus for earning the profits of the organisation. Since the word used in section 80IA(4) is ‘derived’ but not ‘attributable to’ the AO held that the assessee is not entitled for deduction and accordingly, assessed…

ACIT, Circle-2(1)., Guntur vs. Transstroy(India)Ltd., Guntur

The appeal of the Revenue is allowed for A

ITA 509/VIZ/2017[2013-14]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2013-14

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.162 & 163/Viz/2015, 470/Viz/2016, 509/Viz/2017 & 193/Viz/2018 (निर्धारण वर्ा/Assessment Year:2009-10, 2011-12 To 2014-15 Respectively) Asst.Commissioner Of Vs. M/S Transstroy (India) Ltd. Income Tax Guntur Circle-2(1) Guntur [Pan : Aabct4226B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.Nos.193/Viz/2015, 430/Viz/2016, 529/Viz/2017 & 248/Viz/2018 (निर्धारण वर्ा/Assessment Years:2011-12 To 2014-15 Respectively) M/S Transstroy (India) Ltd. Asst.Commissioner Of Guntur Income Tax Circle-2(1) [Pan : Aabct4226B] Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Dr निर्धाऩरती की ओर से / Assessee By : Shri T.Chaitanya Kumar, Ar सुिवधई की तधरीख / Date Of Hearing : 07.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19.07.2019

For Appellant: Shri T.Chaitanya Kumar, ARFor Respondent: Shri D.K.Sonowal, DR
Section 143(3)Section 40A(3)Section 80I

…,49,78,431/-. Similarly for the A.Y 2013-14 the assessee had admitted the interest income of Rs.7,84,50,189/- and other non operating income of Rs.3,00,09,713/-.The AO observed from the order of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd., 262 ITR 278 (SC) that the assessee is not entitled for deduction u/s 80IA(4) since, the other income declared by the assessee has no first degree nexus for earning the profits of the organisation. Since the word used in section 80IA(4) is ‘derived’ but not ‘attributable to’ the AO held that the assessee is not entitled for deduction and accordingly, assessed…

The ACIT, Guntur vs. M/S. Transstory (India) Ltd., Guntur

The appeal of the Revenue is allowed for A

ITA 470/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2012-2013

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.162 & 163/Viz/2015, 470/Viz/2016, 509/Viz/2017 & 193/Viz/2018 (निर्धारण वर्ा/Assessment Year:2009-10, 2011-12 To 2014-15 Respectively) Asst.Commissioner Of Vs. M/S Transstroy (India) Ltd. Income Tax Guntur Circle-2(1) Guntur [Pan : Aabct4226B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.Nos.193/Viz/2015, 430/Viz/2016, 529/Viz/2017 & 248/Viz/2018 (निर्धारण वर्ा/Assessment Years:2011-12 To 2014-15 Respectively) M/S Transstroy (India) Ltd. Asst.Commissioner Of Guntur Income Tax Circle-2(1) [Pan : Aabct4226B] Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Dr निर्धाऩरती की ओर से / Assessee By : Shri T.Chaitanya Kumar, Ar सुिवधई की तधरीख / Date Of Hearing : 07.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19.07.2019

For Appellant: Shri T.Chaitanya Kumar, ARFor Respondent: Shri D.K.Sonowal, DR
Section 143(3)Section 40A(3)Section 80I

…,49,78,431/-. Similarly for the A.Y 2013-14 the assessee had admitted the interest income of Rs.7,84,50,189/- and other non operating income of Rs.3,00,09,713/-.The AO observed from the order of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd., 262 ITR 278 (SC) that the assessee is not entitled for deduction u/s 80IA(4) since, the other income declared by the assessee has no first degree nexus for earning the profits of the organisation. Since the word used in section 80IA(4) is ‘derived’ but not ‘attributable to’ the AO held that the assessee is not entitled for deduction and accordingly, assessed…

Transstroy (India) Ltd., Hyderabad vs. The ACIT., Guntur

The appeal of the Revenue is allowed for A

ITA 430/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2012-2013

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.162 & 163/Viz/2015, 470/Viz/2016, 509/Viz/2017 & 193/Viz/2018 (निर्धारण वर्ा/Assessment Year:2009-10, 2011-12 To 2014-15 Respectively) Asst.Commissioner Of Vs. M/S Transstroy (India) Ltd. Income Tax Guntur Circle-2(1) Guntur [Pan : Aabct4226B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.Nos.193/Viz/2015, 430/Viz/2016, 529/Viz/2017 & 248/Viz/2018 (निर्धारण वर्ा/Assessment Years:2011-12 To 2014-15 Respectively) M/S Transstroy (India) Ltd. Asst.Commissioner Of Guntur Income Tax Circle-2(1) [Pan : Aabct4226B] Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Dr निर्धाऩरती की ओर से / Assessee By : Shri T.Chaitanya Kumar, Ar सुिवधई की तधरीख / Date Of Hearing : 07.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19.07.2019

For Appellant: Shri T.Chaitanya Kumar, ARFor Respondent: Shri D.K.Sonowal, DR
Section 143(3)Section 40A(3)Section 80I

…,49,78,431/-. Similarly for the A.Y 2013-14 the assessee had admitted the interest income of Rs.7,84,50,189/- and other non operating income of Rs.3,00,09,713/-.The AO observed from the order of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd., 262 ITR 278 (SC) that the assessee is not entitled for deduction u/s 80IA(4) since, the other income declared by the assessee has no first degree nexus for earning the profits of the organisation. Since the word used in section 80IA(4) is ‘derived’ but not ‘attributable to’ the AO held that the assessee is not entitled for deduction and accordingly, assessed…

Transtroy India Ltd., Hyderabad vs. The ACIT, Guntur

The appeal of the Revenue is allowed for A

ITA 193/VIZ/2015[2011-12]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2011-12

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.162 & 163/Viz/2015, 470/Viz/2016, 509/Viz/2017 & 193/Viz/2018 (निर्धारण वर्ा/Assessment Year:2009-10, 2011-12 To 2014-15 Respectively) Asst.Commissioner Of Vs. M/S Transstroy (India) Ltd. Income Tax Guntur Circle-2(1) Guntur [Pan : Aabct4226B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.Nos.193/Viz/2015, 430/Viz/2016, 529/Viz/2017 & 248/Viz/2018 (निर्धारण वर्ा/Assessment Years:2011-12 To 2014-15 Respectively) M/S Transstroy (India) Ltd. Asst.Commissioner Of Guntur Income Tax Circle-2(1) [Pan : Aabct4226B] Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Dr निर्धाऩरती की ओर से / Assessee By : Shri T.Chaitanya Kumar, Ar सुिवधई की तधरीख / Date Of Hearing : 07.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19.07.2019

For Appellant: Shri T.Chaitanya Kumar, ARFor Respondent: Shri D.K.Sonowal, DR
Section 143(3)Section 40A(3)Section 80I

…,49,78,431/-. Similarly for the A.Y 2013-14 the assessee had admitted the interest income of Rs.7,84,50,189/- and other non operating income of Rs.3,00,09,713/-.The AO observed from the order of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd., 262 ITR 278 (SC) that the assessee is not entitled for deduction u/s 80IA(4) since, the other income declared by the assessee has no first degree nexus for earning the profits of the organisation. Since the word used in section 80IA(4) is ‘derived’ but not ‘attributable to’ the AO held that the assessee is not entitled for deduction and accordingly, assessed…

The ACIT, Guntur vs. M/S Transstroy (India) Ltd., Guntur

The appeal of the Revenue is allowed for A

ITA 163/VIZ/2015[2011-12]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2011-12

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.162 & 163/Viz/2015, 470/Viz/2016, 509/Viz/2017 & 193/Viz/2018 (निर्धारण वर्ा/Assessment Year:2009-10, 2011-12 To 2014-15 Respectively) Asst.Commissioner Of Vs. M/S Transstroy (India) Ltd. Income Tax Guntur Circle-2(1) Guntur [Pan : Aabct4226B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.Nos.193/Viz/2015, 430/Viz/2016, 529/Viz/2017 & 248/Viz/2018 (निर्धारण वर्ा/Assessment Years:2011-12 To 2014-15 Respectively) M/S Transstroy (India) Ltd. Asst.Commissioner Of Guntur Income Tax Circle-2(1) [Pan : Aabct4226B] Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Dr निर्धाऩरती की ओर से / Assessee By : Shri T.Chaitanya Kumar, Ar सुिवधई की तधरीख / Date Of Hearing : 07.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19.07.2019

For Appellant: Shri T.Chaitanya Kumar, ARFor Respondent: Shri D.K.Sonowal, DR
Section 143(3)Section 40A(3)Section 80I

…,49,78,431/-. Similarly for the A.Y 2013-14 the assessee had admitted the interest income of Rs.7,84,50,189/- and other non operating income of Rs.3,00,09,713/-.The AO observed from the order of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd., 262 ITR 278 (SC) that the assessee is not entitled for deduction u/s 80IA(4) since, the other income declared by the assessee has no first degree nexus for earning the profits of the organisation. Since the word used in section 80IA(4) is ‘derived’ but not ‘attributable to’ the AO held that the assessee is not entitled for deduction and accordingly, assessed…

The ACIT, Guntur vs. M/S Transstroy India Ltd., Guntur

The appeal of the Revenue is allowed for A

ITA 162/VIZ/2015[2009-10]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2009-10

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.Nos.162 & 163/Viz/2015, 470/Viz/2016, 509/Viz/2017 & 193/Viz/2018 (निर्धारण वर्ा/Assessment Year:2009-10, 2011-12 To 2014-15 Respectively) Asst.Commissioner Of Vs. M/S Transstroy (India) Ltd. Income Tax Guntur Circle-2(1) Guntur [Pan : Aabct4226B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.Nos.193/Viz/2015, 430/Viz/2016, 529/Viz/2017 & 248/Viz/2018 (निर्धारण वर्ा/Assessment Years:2011-12 To 2014-15 Respectively) M/S Transstroy (India) Ltd. Asst.Commissioner Of Guntur Income Tax Circle-2(1) [Pan : Aabct4226B] Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Dr निर्धाऩरती की ओर से / Assessee By : Shri T.Chaitanya Kumar, Ar सुिवधई की तधरीख / Date Of Hearing : 07.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19.07.2019

For Appellant: Shri T.Chaitanya Kumar, ARFor Respondent: Shri D.K.Sonowal, DR
Section 143(3)Section 40A(3)Section 80I

…,49,78,431/-. Similarly for the A.Y 2013-14 the assessee had admitted the interest income of Rs.7,84,50,189/- and other non operating income of Rs.3,00,09,713/-.The AO observed from the order of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd., 262 ITR 278 (SC) that the assessee is not entitled for deduction u/s 80IA(4) since, the other income declared by the assessee has no first degree nexus for earning the profits of the organisation. Since the word used in section 80IA(4) is ‘derived’ but not ‘attributable to’ the AO held that the assessee is not entitled for deduction and accordingly, assessed…

The DCIT, Circle-3(1)(1), Ahmedabad vs. M/S. Parikh Enterprises Pvt.Ltd., Ahmedabad

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

ITA 2684/AHD/2017[2003-04]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2003-04
For Appellant: Shri Jyotish M. Shah, A.RFor Respondent: Shri Sanjay Kumar, Sr.D.R
Section 80HSection 8O

…here is no discussion on the section 80HHC in consequential order dated 23.12.2010 as the same only considers this issue of section 80HHC deduction in final computation to the tune of Rs.1,45,42,665/-. The CIT(A) follows case laws of CIT vs. Pandyan Chemicals 262 ITR 278(SC) and that of Liberty India Ltd 317 ITR 218(SC) qua assessee's interest on FDRs and Excise duty rebate; respectively. We repeat that neither in the reassessment nor the lower appellate authority have discussed about the relevant factual position on the above stated factors of interest and excise duty vis-a-vis Section 80HHC deduction in questio…

DCIT 3(3)(1), Mumbai vs. S.D. Corporation P.Ltd, Mumbai

In the result the grounds of appeal raised by the revenue is rejected

ITA 6395/MUM/2017[2010-11]Status: DisposedITAT Mumbai24 Jun 2019AY 2010-11

Bench: Shri Pawan Singh & Shri M. Balaganeshdcit-3(3)(1) M/S S.D. Corporation Pvt. Ltd. Room No. 609, 6Th Floor, Admin Office, S.P. Centre, Vs. Aayakar Bhavan, M.K. 41/44, Minoo Desai Marg, Road, Mumbai-400020 Colaba, Mumbai-400005. Pan: Aadcs4496C Appellant Respondent Appellant By : Shri Satish Rajore (Sr. Dr) Respondent By : Shri Dilip Lakhani (Sr. Advisor Of Deloite Haskins & Sell Llp) Date Of Hearing : 13.06.2019 Date Of Pronouncement : 24.06.2019 Order Under Section 254(1)Of Income Tax Act

For Appellant: Shri Satish Rajore (Sr. DR)For Respondent: Shri Dilip Lakhani (Sr. Advisor of Deloite Haskins and Sell LLP)
Section 143(3)Section 254(1)Section 80ASection 80I

…IN THE INCOME-TAX APPELLATE TRIBUNAL “G” BENCH MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER DCIT-3(3)(1) M/s S.D. Corporation Pvt. Ltd. Room No. 609, 6th Floor, Admin Office, S.P. Centre, Vs. Aayakar Bhavan, M.K. 41/44, Minoo Desai Marg, Road, Mumbai-400020 Colaba, Mumbai-400005. PAN: AADCS4496C Appellant Respondent Appellant by : Shri Satish Rajore (Sr. DR) Respondent by : Shri Dilip Lakhani (Sr. Advisor of Deloite Haskins and Sell LLP) Date of Hearing : 13.06.2019 Date of Pronouncement : 24.06.2019 ORDER UNDER SECTION 254(1)OF INCOME TAX ACT PER PAWAN SINGH,…

ACIT (Cir.) - 6(1)(2), Mumbai vs. Bhandar Power Ltd., Mumbai

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

ITA 6061/MUM/2016[2010-11]Status: DisposedITAT Mumbai31 May 2019AY 2010-11

Bench: Shri Mahavir Singh & Shri Rajesh Kumar

For Appellant: Shri Anuj Kisnadwala, A.RFor Respondent: Shri Chaudhary Arunkumar Singh, D.R
Section 143(1)Section 143(2)Section 80I

…e of resjudicata is not applicable to the income tax proceedings. The M/s. Bhandar Power Ltd. ld DR also relied on the following decisions in defense of his arguments: a)Liberty India Ltd Vs CIT (2009) 183 Taxman 349 (SC) b)Pandian Chemcials Ltd Vs CIT (2003) 262 ITR 278 (SC) c)CIT Vs Jyoti Apparels (2008) 166 Taxman 343 d) CIT Vs Mereena Creations (2010) 189 Taxman 71 e)Opera Clothings Vs ITO (2017)-TIOL-38-SC-IT)(SC) f) Cyber Pearl Information Technology Park (P) Ltd Vs ITO (2017) 80 taxmann.com 66(Mad) 9. Per Contra, the ld AR submitted that the order of ld CIT(A) is speaking and reasoned one as the ld appell…

DCIT, New Delhi vs. M/S. Dlf Ltd., New Delhi

ITA 2749/DEL/2013[2008-09]Status: DisposedITAT Delhi27 May 2019AY 2008-09

Bench: Shri Amit Shukla & Shri L.P. Sahu

For Appellant: Shri R.S. Singhvi & Shri SatyajeetFor Respondent: Shri Puneet Rai, Adv. Special counsel
Section 10Section 142ASection 143(3)Section 14ASection 40Section 43B

…ew of such like provisions, which provide for deductions with purpose of giving fillip to the designated activity, which, in the instant case, is the business of developing a Special Economic Zone. PANDIAN CHEMICALS LTD. V. COMMISSIONER OF INCOME TAX - (2003) 262 ITR 278(SC) Hon'ble Supreme Court held that the words "derived from" in Section 80HH of the Income Tax Act 1961, must be understood as something which has a direct or immediate nexys with the assessee's industrial undertaking. Although electricity may be required for the purposes of the industrial undertaking, the deposit required for is supply is a step…

Dlf Ltd., New Delhi vs. Addl. CIT, New Delhi

ITA 2126/DEL/2013[2008-09]Status: DisposedITAT Delhi27 May 2019AY 2008-09

Bench: Shri Amit Shukla & Shri L.P. Sahu

For Appellant: Shri R.S. Singhvi & Shri SatyajeetFor Respondent: Shri Puneet Rai, Adv. Special counsel
Section 10Section 142ASection 143(3)Section 14ASection 40Section 43B

…ew of such like provisions, which provide for deductions with purpose of giving fillip to the designated activity, which, in the instant case, is the business of developing a Special Economic Zone. PANDIAN CHEMICALS LTD. V. COMMISSIONER OF INCOME TAX - (2003) 262 ITR 278(SC) Hon'ble Supreme Court held that the words "derived from" in Section 80HH of the Income Tax Act 1961, must be understood as something which has a direct or immediate nexys with the assessee's industrial undertaking. Although electricity may be required for the purposes of the industrial undertaking, the deposit required for is supply is a step…

G.K. Founders P.Ltd, Mumbai vs. Asst CIT 14(1)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 7464/MUM/2016[2012-13]Status: DisposedITAT Mumbai14 May 2019AY 2012-13

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year: 2012-13

For Appellant: Shri Vimal Punmiya, A.RFor Respondent: Shri Choudhary Arunkumar Singh, D.R
Section 143(1)Section 143(3)Section 234BSection 80Section 80I

…e Hon’ble Supreme Court in Cambay Electric Industrial Co. Ltd. v. CIT 113 ITR 84 (SC) had clearly stated that the expression "derived from" had a narrower connotation than the expression "attributable to". This was reiterated in Pandian Chemicals Ltd. v. CIT, 262 ITR 278(SC) wherein it held that "It is clear, therefore, that the word "derived from" in Section 80HH of the income-tax Act, 1961, must be understood as something which has direct or immediate nexus with the appellant industrial undertaking". The Hon'ble Apex Court accordingly affirmed the order of the Hon'ble Madras High Court holding that the interest…

Sun Infra, Mumbai vs. Asst CIT 14(3), Mumbai

In the result, appeal filed by the assessee for assessment year 2010-2011

ITA 4988/MUM/2014[2010-11]Status: DisposedITAT Mumbai22 Apr 2019AY 2010-11

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2010-11 M/S Sun Infra, The Income Tax Officer 14(3)(4), 288, 3Rd Floor, Kalbadevi Road, Room No. 608, 6Th Floor, Kalbadevi, Earnest House, Nariman Point, Mumbai – 400002 Vs. Mumbai - 400021 Pan: Abjfs8245H

For Appellant: Shri Vallabhdas D. Parmar (AR)For Respondent: Shri M.K Singh (Sr.DR)
Section 143Section 143(3)Section 24

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “E”, MUMBAI BEFORE SHRI SHAMIM YAHYA (AM) AND SHRI RAM LAL NEGI (JM) Assessment Year: 2010-11 M/s Sun Infra, The Income Tax Officer 14(3)(4), 288, 3rd Floor, Kalbadevi Road, Room No. 608, 6th Floor, Kalbadevi, Earnest House, Nariman Point, Mumbai – 400002 Vs. Mumbai - 400021 PAN: ABJFS8245H (Appellant) (Respondent) Assessee by : Shri Vallabhdas D. Parmar (AR) Revenue by : Shri M.K Singh (Sr.DR) Date of Hearing: 25/01.2019 Date of Pronouncement: 22/04/2019 O R D E R PER RAM LAL NEGI, JM This appeal has been filed by the assessee against the order dated 01.0…

Mahindra & Mahindra Ltd, Mumbai vs. Addl CIT RG 2(2), Mumbai

In the result, appeal by the assessee is partly allowed

ITA 1956/MUM/2014[2009-10]Status: DisposedITAT Mumbai10 Apr 2019AY 2009-10

Bench: Shri Shamim Yahya & Shri Ram Lal Negi

For Appellant: Shri. H.P. Mahajan and Shri Prasad BaptiFor Respondent: Shri Jayant Kumar
Section 1Section 143(3)Section 144C

…umbai High Court in case of Swani Spices P. Ltd. 332 ITR 288 (Bom) has held that interest earned from surplus funds kept as deposits is assessable as income from other sources. Hence applying the SC decision in Liberty India (supra) and also Pandian Chemicals 262 ITR 278 and Bombay HC in Swani Spices (supra) it is held that interest income in this case is assessable under head 'Income from Other Sources'. Accordingly, AO is directed to assess interest income of the assessee and dividend—from foreign subsidiaries (if any) under the head 'Income from Other Sources'.‖ 65. The submission of ld. Counsel of the assesse…