Rain Commodities Ltd. v. DCIT

41 DTR 449Income Tax Appellate Tribunal2010#1601 most cited

What is Rain Commodities Ltd. v. DCIT authority for?

The ITAT Special Bench in Rain Commodities Ltd. held that certain capital receipts, such as forfeited share warrants, if credited to the profit and loss account, are liable for book profits tax under Section 115JB (Minimum Alternate Tax).

71

judgments rely on this decision, according to BharatTax’s citation analysis of 366,383 Indian tax judgments — from 2015 to 2025.

Also referred to as

Rain Commodities Ltd. v. DCIT · Section 115JB · book profits · Minimum Alternate Tax · MAT · capital receipt · forfeited share warrants · P&L account · taxability · Special Bench · Hyderabad ITAT

Also reported as

131 TTJ 514149 ITD 732

Sections most often in play

Section 115JBSection 143(2)Section 143(3)Section 14ASection 2(24)Section 250

Issues it is cited on

section 92f(ii)section 115jasection 92fsection 139(5)transfer of capital assetsection 119(2)domestic companysection 119(2)(b)section 234cbook profitssection 2(24)section 115j

Judgments citing Rain Commodities Ltd. v. DCIT

Montage Enterprises Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Appeal is dismissed

ITA 5124/DEL/2011[2008-09]Status: DisposedITAT Delhi29 Jun 2018AY 2008-09

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Atiq Ahmed, Sr.D.RFor Respondent: Shri Ashwani Kr. Aditya Kr., FCA &
Section 115JSection 143(3)Section 80

…s.115JB. Ld. CIT(A) 17 I.T.As. No.5124/Del/2011, 92/Del/2012, 144, 475, 4426 & 4906/Del/2013 has held assessee is not entitled to the exclusion of the said amount following the judgment of ITAT Hyderabad in the case of Rain Commodities Ltd. Vs. DCIT, [2014] 149 ITD 732 (Hyd.). 18. Before us the learned counsel has strongly relied upon the decision of ITAT Mumbai Bench in the case of JSW Steel vs. ACIT, ITA Nos. 923 & 930/Bang/2009, wherein all the decisions on this issue has been discussed and analysed and on similar capital receipt, ITAT Mumbai Bench in the case has held that such capital receipt cannot be pa…

DCIT, Cir-3(1), Kolkata vs. M/S Tata Metaliks Ltd., Kolkata

In the result, Revenue’s appeal is dismissed

ITA 478/KOL/2016[2010-2011]Status: DisposedITAT Kolkata27 Apr 2018AY 2010-2011

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 115JSection 139(1)Section 143(3)Section 234C

…आयकर अपील"य अधीकरण, "यायपीठ – “B” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “B” KOLKATA Before Shri N.V.Vasudevan, Judicial Member and Shri Waseem Ahmed, Accountant Member ITA No.439 & 478/Kol/2016 Assessment Year :2010-11 Tata Metaliks Ltd. V/s. Income Tax Officer, Tata Centre, 10th Floor, Ward-3(2), P-7, 43, Chowringhee Road, Chowringhee Square, 4th Floor, Kolkata-69 Kolkata-71 [PAN No.AABCT 1389 B] DCIT, Circle-3(1), Tata Metaliks Ltd. Tat Centre, 10th Floor, P-7, Chowringhee V/s. Square, Aayakar 43, Chowringhee Bhawan, 4th Floor, Room Road, Kolkata-71 No.19, Kolkata-69 .. अपीलाथ" /Appellant…

Tata Metaliks Ltd., Kolkata vs. ITO, WD-3(2), Kolkata

In the result, Revenue’s appeal is dismissed

ITA 439/KOL/2016[2010-11]Status: DisposedITAT Kolkata27 Apr 2018AY 2010-11

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 115JSection 139(1)Section 143(3)Section 234C

…आयकर अपील"य अधीकरण, "यायपीठ – “B” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “B” KOLKATA Before Shri N.V.Vasudevan, Judicial Member and Shri Waseem Ahmed, Accountant Member ITA No.439 & 478/Kol/2016 Assessment Year :2010-11 Tata Metaliks Ltd. V/s. Income Tax Officer, Tata Centre, 10th Floor, Ward-3(2), P-7, 43, Chowringhee Road, Chowringhee Square, 4th Floor, Kolkata-69 Kolkata-71 [PAN No.AABCT 1389 B] DCIT, Circle-3(1), Tata Metaliks Ltd. Tat Centre, 10th Floor, P-7, Chowringhee V/s. Square, Aayakar 43, Chowringhee Bhawan, 4th Floor, Room Road, Kolkata-71 No.19, Kolkata-69 .. अपीलाथ" /Appellant…

DCIT, CC-Xvi, Kolkata vs. South Asian Petrochem Ltd, Kolkata

In the result, appeals of Revenue stand dismissed

ITA 1222/KOL/2014[2006-2007]Status: DisposedITAT Kolkata03 May 2017AY 2006-2007

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmedassessment Year :2006-07

Section 143(3)

…eceipt which is not chargeable to tax under any provisions of the Act would not be liable for book profits tax u/s 115JB of the Act which was rendered after considering the decisions of Hyderabad Special Bench in Rain Commodities Rain Commodities Ltd vs DCIT, 41 DTR 449, and the decision of Hon'ble Apex Court in Apollo Tyres Ltd. vs. CIT (2002) reported in 255 ITR 273 (SC). The Hon’ble Kolkata Tribunal also in the case of Binani Industries Ltd., vs DCIT in ITA No.1222-1224/Kol/2014 A.Y. 06-07 to 07-08 & 09-10 DCIT,CC-XVI Kol. Vs. SAP Ltd. Page 8 ITA No.144/Kol/2013 A.Y 2009-10 vide order dated 02-03-2016 has allo…

Asst CIT Cir 11(5) vs. Jsw Steel Ltd

In the result assessee’s appeal is partly allowed whereas revenue’s appeal is dismissed

ITA 930/BANG/2009[2004-05]Status: DisposedITAT Mumbai13 Jan 2017AY 2004-05

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05

For Appellant: S/Shri Kanchan Kaushal & Hirali Desai, A.RFor Respondent: Shri Alok Johri, CIT D.R
Section 115JSection 139(1)Section 143(3)Section 234BSection 244A

…unal has essentially relied on the following decisions: (a) Decision of the Hyderabad Tribunal in the case of Gulf Oil Corporation Ltd. vs. ACIT (2008) 111 ITD 124 (b) CIT vs. Veekaylal Investment Co. (P.) Ltd. (supra) (c) Rain Commodities Ltd. vs. CIT (2010) 41 DTR 449 (Hyd.) (SB). ii. In the case of Gulf oil, (Hyderabad ITAT decision), it is noticed that, the issue under consideration was whether advisory fee debited as an extra-ordinary item in the Profit and Loss account was to be considered while computing Book profits u/s. 115JB. The premise on which adjustment was sought was that the item under considerati…

Jsw Steel Ltd vs. Asst CIT Cir 11(5)

In the result assessee’s appeal is partly allowed whereas revenue’s appeal is dismissed

ITA 923/BANG/2009[2004-05]Status: DisposedITAT Mumbai13 Jan 2017AY 2004-05

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05

For Appellant: S/Shri Kanchan Kaushal & Hirali Desai, A.RFor Respondent: Shri Alok Johri, CIT D.R
Section 115JSection 139(1)Section 143(3)Section 234BSection 244A

…unal has essentially relied on the following decisions: (a) Decision of the Hyderabad Tribunal in the case of Gulf Oil Corporation Ltd. vs. ACIT (2008) 111 ITD 124 (b) CIT vs. Veekaylal Investment Co. (P.) Ltd. (supra) (c) Rain Commodities Ltd. vs. CIT (2010) 41 DTR 449 (Hyd.) (SB). ii. In the case of Gulf oil, (Hyderabad ITAT decision), it is noticed that, the issue under consideration was whether advisory fee debited as an extra-ordinary item in the Profit and Loss account was to be considered while computing Book profits u/s. 115JB. The premise on which adjustment was sought was that the item under considerati…

DCIT Cir - 3(1), Mumbai vs. M/S. Gujarat Ambuja Cements Ltd., Mumbai

In the result, ITA No. 4373/Mum/2005 is partly allowed

ITA 570/MUM/2007[1998-1999]Status: DisposedITAT Mumbai21 Oct 2016AY 1998-1999

Bench: Shri R.C Sharma & Shri Pawan Singh

Section 115Section 253Section 254(1)Section 80

…vestment in computing book profit u/s. 115JA. The ld. AR of the assessee fairly conceded and argued that this ground of appeal is covered against the assessee by the decision of special bench of ITAT, Hyderabad in case of Rain Commodities Ltd. vs. DCIT (1010) 131 TTJ 514 (Hyd.) (SB). Keeping in view the submission of ld. AR of the assessee, this ground of appeal is dismissed. 35. In the result, the appeal of the assessee is partly allowed. 36. The Revenue has raised following grounds of appeal: 1. Deletion of disallowance of Community Welfare Expenses of Rs. 64,41,428/- 2. Deletion of disallowance of Temple Expen…

M/S. Gujarat Ambuja Cements Ltd vs. The Dy CIT RG 3(1)

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

ITA 2486/MUM/2005[1999-2000]Status: DisposedITAT Mumbai30 May 2016AY 1999-2000

Bench: Shri D.Karunakara Rao & Shri Pawan Singhassessment Year: 1999-2000 Gujarat Ambuja Cements Limited, Dcit Range 3(1), 122, Maker Chambers, Iii, Aayakar Bhavan, M.K. Road, Vs. Mumbai-400020. Nariman Point, Mumbai-400021. Pan: Aaacg0569P (Appellant) (Respondent) Assessment Year: 1999-2000 Dcit Range 3(1), Gujarat Ambuja Cements Limited, Aayakar Bhavan, M.K. Road, 122, Maker Chambers, Iii, Vs. Mumbai-400020. Nariman Point, Mumbai-400021. Pan: Aaacg0569P (Appellant) (Respondent)

For Respondent: Shri Yashwant Kumar Bhaskar
Section 115JSection 145ASection 244A

…IN THE INCOME TAX APPELLATE TRIBUNAL,MUMBAI BENCH “G”, MUMBAI BEFORE SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER Assessment Year: 1999-2000 Gujarat Ambuja Cements Limited, DCIT Range 3(1), 122, Maker Chambers, III, Aayakar Bhavan, M.K. Road, Vs. Mumbai-400020. Nariman Point, Mumbai-400021. PAN: AAACG0569P (Appellant) (Respondent) Assessment Year: 1999-2000 DCIT Range 3(1), Gujarat Ambuja Cements Limited, Aayakar Bhavan, M.K. Road, 122, Maker Chambers, III, Vs. Mumbai-400020. Nariman Point, Mumbai-400021. PAN: AAACG0569P (Appellant) (Respondent) Assessee by Shri Soumen Adak…

D.C.I.T.CC - Xxviii, Kol., Kolkata vs. M/S Binani Industries Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 144/KOL/2013[2009-10]Status: DisposedITAT Kolkata02 Mar 2016AY 2009-10

Bench: : Shri N.V.Vasudevan & Shri M. Balaganesh

For Appellant: S/ Shri K.V. Beswal, FCAFor Respondent: Shri Rajat Subhra Biswas, CIT, ld.DR
Section 115JSection 139(5)Section 143(3)Section 14A

…the judgement of the Hon’ble Apex Court rendered in the case of Apollo Tyres Ltd (Supra) and thereafter, it was noted by the Tribunal in this case that as per the decision of Special Bench of the Tribunal rendered in the case of Rain Commodities Ltd vs DCIT, 41 DTR 449, if profit and loss account is not in accordance with Part II & Part III of Schedule VI to the Companies Act, 1956 because it is prerequisite for Section 115JB of the ITA No.144/Kol/2013-A-AM M/s. Binani Industries Ltd 26 Act. The Tribunal in this case also considered two another Tribunal’s orders rendered in the case of DCIT vs Bombay Diamond C…

Addl CIT RG 1(3), Mumbai vs. West Coast Paper Mills Ltd, Mumbai

In the result, appeal of the assessee and appeal of the revenue are partly allowed

ITA 3843/MUM/2011[2007-08]Status: DisposedITAT Mumbai15 Oct 2015AY 2007-08

Bench: Shri D. Karunakara Rao & Shri Amit Shukla

For Respondent: Smt. S. Padmaja
Section 10(34)Section 115JSection 143(3)Section 14ASection 80Section 801A

…1 The West Coast Paper Mills Ltd ITA 2993/Mum/2011 ITA 3843/Mum/2011 आयकर अपीलीय अिधकरण “जी” "यायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI "ी िड. क"नाकर राव, लेखा सद"य एवं "ी अिमत शु"ला, "याियक सद"य के सम" । BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA No. : 2993/Mum/2011 (Assessment year :2007-08) The West Coast Paper Mills Ltd, Vs Addl Commissioner of Income Tax Range 1(3), Shreeniwas House, Aayakar Bhavan, M K Road, Hazarimal Somani Marg, Mumbai -400 020 Fort, Mumbai 400 001 "थयी लेखा सं.:PAN: AAACT 4179 N अपीलाथ" (Appellant) ""यथ…

The West Coast Paper Mills Ltd, Mumbai vs. Addl CIT RG 1(3), Mumbai

In the result, appeal of the assessee and appeal of the revenue are partly allowed

ITA 2993/MUM/2011[2007-08]Status: DisposedITAT Mumbai15 Oct 2015AY 2007-08

Bench: Shri D. Karunakara Rao & Shri Amit Shukla

For Respondent: Smt. S. Padmaja
Section 10(34)Section 115JSection 143(3)Section 14ASection 80Section 801A

…1 The West Coast Paper Mills Ltd ITA 2993/Mum/2011 ITA 3843/Mum/2011 आयकर अपीलीय अिधकरण “जी” "यायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI "ी िड. क"नाकर राव, लेखा सद"य एवं "ी अिमत शु"ला, "याियक सद"य के सम" । BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA No. : 2993/Mum/2011 (Assessment year :2007-08) The West Coast Paper Mills Ltd, Vs Addl Commissioner of Income Tax Range 1(3), Shreeniwas House, Aayakar Bhavan, M K Road, Hazarimal Somani Marg, Mumbai -400 020 Fort, Mumbai 400 001 "थयी लेखा सं.:PAN: AAACT 4179 N अपीलाथ" (Appellant) ""यथ…