Pandian Chemicals Ltd. v. CIT

Krishak Bharati Cooperative Ltd vs. Deputy Commissioner of Income Tax

The appeals are allowed

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…ived from an industrial undertaking and whether the same would be eligible for deduction under Section 80-I of the said Act. 14. The learned counsel referred to the Supreme Court decision in the case of Pandian Chemicals Limited v. Commissioner of Income-tax: 262 ITR 278 (SC) 278 to explain as to what is meant by the expression “derived from”, as appearing in Section 80-I of the said Act. In Pandian Chemicals (supra), it has been held that the words “derived from” in Section 80HH of the said Act must be understood as “something which has a direct or immediate nexus with the assessee’s industrial undertaking”. In…

Krishak Bharati Cooperative Ltd vs. Deputy Commissioner of Income Tax

The appeals are allowed

…ived from an industrial undertaking and whether the same would be eligible for deduction under Section 80-I of the said Act. 14. The learned counsel referred to the Supreme Court decision in the case of Pandian Chemicals Limited v. Commissioner of Income-tax: 262 ITR 278 (SC) 278 to explain as to what is meant by the expression “derived from”, as appearing in Section 80-I of the said Act. In Pandian Chemicals (supra), it has been held that the words “derived from” in Section 80HH of the said Act must be understood as “something which has a direct or immediate nexus with the assessee’s industrial undertaking”. In…

Commissioner of Income Tax vs. Jaypee Dsc Ventures Ltd

Accordingly, the same stands dismissed

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…. CIT, 130 ITR 205 (Cal), Additional CIT v. Madras Fertilizer Ltd., 120 ITR 1399 (Madras), CIT v. Jose Thomas, 253 ITR 553 (Kerala), CIT v. Parekh Brothers, (2002) 258 ITR 43 (Kerala), Rani Paliwal v. CIT, 268 ITR 221 (P&H) and Pandiyan Chemicals v. CIT, 262 ITR 268 (SC), came to hold that the appellant had raised the margin money from its own funds available with other organizations and deposited with its bankers with a view to obtain the performance guarantee in favour of NHAI for procuring the project of converting the Delhi Gurgaon Section NH-8 into 8 Lane Highway on BOT basis and, therefore, the in…

Great Eastern Exports vs. Assistant Commissioner of Income Tax

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…ave first degree nexus with the eligible business would be regarded as profits and derived from the eligible business and hence would qualify for deduction under the said section (refer CIT Vs. Sterling Foods; 237 ITR 579 (SC) , Pandian Chemicals Vs. CIT: 262 ITR 278 (SC) Liberty India Ltd: 317 ITR 218 (SC)). In other words, the amount forming the basis of deduction under the said section (including sections 80-IA/IB) is an artificial figure, computed having regard to the principles laid down in the said judgments. 36. Coming specifically to the provision, which is the centre of discussion controver…

Commissioner of Income Tax vs. Eltek Sgs P.Ltd

The appeal is dismissed

…ITA No.643/2007 Page 1 of 12 * HIGH COURT OF DELHI : NEW DELHI + ITA No.643 of 2007 Judgment reserved on: January 23, 2008 % Judgment delivered on: February 19, 2008 The Commissioner of Income Tax Delhi-IV New Delhi. ...Appellant Through Mrs. P.L. Bansal, Adv. Versus Eltek SGS (P) Ltd. F-225A, Sainik Farms, New Delhi. ...Respondent Through Mr.Kaanan Kapur, Adv. Coram: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE V.B. GUPTA 1. Whether the Reporters of lo…

Honda Siel Power Products Ltd vs. The Commissioner of Income Tax New Delhi

The appeal is dismissed with no orders as to costs

…industrial activity in India profit earned from sale of imported goods would be ineligible for deduction under the said provision. As far as the Revenue's appeal was concerned, the 2007:DHC:1329-DB Chemicals Limited v. Commissioner of Income Tax [2003] 262 ITR 278 (SC) to hold that profits from the sale of spare parts was not the immediate source of the business profits of the industrial undertaking, but one step was removed from it. Although such profits from the sale of spare parts or rendering after sale service could be “attributable” to the industrial undertaking, it could not be considered as pr…

Honda Siel Power Products Ltd vs. Commissioner of Income Tax

The appeal is dismissed with no orders as to costs

…industrial activity in India profit earned from sale of imported goods would be ineligible for deduction under the said provision. As far as the Revenue's appeal was concerned, the 2007:DHC:1329-DB Chemicals Limited v. Commissioner of Income Tax [2003] 262 ITR 278 (SC) to hold that profits from the sale of spare parts was not the immediate source of the business profits of the industrial undertaking, but one step was removed from it. Although such profits from the sale of spare parts or rendering after sale service could be “attributable” to the industrial undertaking, it could not be considered as pr…

Suhir Engineering Co vs. Asstt. Commissionr of Income Tax

…has considered the expression 'derived from' as used in Section 80HHC and Section 80-IA of the Income Tax Act, 1961 in Commissioner of Income Tax vs. Sterling Foods, [1999] 237 ITR 579 and Pandian Chemicals Ltd. vs. Commissioner of Income Tax, [2003] 262 ITR 278. It has been held that there is a difference between the expression 'derived from' and the expression 'attributable to'. The Tribunal was of the view, after considering these two decisions that the expression 'derived from' has a narrower connotation and there must be a direct nexus between the interest earned and the business of t…

Commissioner of Income Tax-V N vs. Damanjit Singh

…ons, reliance is placed upon the judgments of the Hon'ble Supreme Court in Parimisetti Seetharamamma v. CIT Andhra Pradesh (1965) 57 ITR 532 (SC), Tuticorin Alkali Chemicals & Fertilisers v. CIT (1997) 227 ITR 172 (SC), Pandian Chemicals Ltd. v. CIT (2003) 262 ITR 278 (SC) and of this Court in ACIT v. Netar Krishana Sehgal (1983) 141 ITR 681 (Del). 6.3 Reliance is next placed by the Department on the judgments of the High Courts interpreting Section 80HHC itself. These include that of the Madras High Court in K.S.Subbiah Pillai v. CIT (2003) 260 ITR 304 (Mad), the Punjab & Haryana High Court in R…