Sahney Steel and Press Works Ltd. v. CIT

228 ITR 253Supreme Court of India1997#166 most cited

What is Sahney Steel and Press Works Ltd. v. CIT authority for?

A subsidy is treated as a revenue receipt if the assessee is free to use the money in its business as it likes and is not obligated to spend it for a specific capital purpose, such as acquiring assets or repaying loans.

429

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

Sahney Steel and Press Works Ltd. v. CIT · subsidy revenue receipt · capital receipt · taxability of subsidies · Section 2(24)(xviii) · Section 37(1) · purpose of subsidy · obligation to spend · income tax treatment of subsidies

Sections most often in play

Section 143(3)Section 115JBSection 14ASection 2(24)(xviii)Section 37(1)Section 32Section 43(1)Section 147

Issues it is cited on

section 2(24)(xviii)section 43(1)section 40(a)(ii)book profitsdeduction under section 80iablock of assetssection 80hhcadditional depreciationwritten down valuesection 139(5)section 80hhsection 2(24)

Judgments citing Sahney Steel and Press Works Ltd. v. CIT

M/S. Dabur India Ltd., New Delhi vs. Addl.CIT, New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 6525/DEL/2014[2008-09]Status: DisposedITAT Delhi18 Feb 2021AY 2008-09

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

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…ing regard to the purpose for which subsidy was given. For the above proposition, the ld. Counsel relied on the decisions of the Hon’ble Supreme Court in the case of CIT vs. Ponni Sugar and Chemicals Limited: 306 ITR 392, Sahney Steel and Press Works vs. CIT: 228 ITR 253; and V.S.S.V. Meenakshi Achi: 60 ITR 253 and various other decisions. 142. The ld. Counsel for the assessee submitted that in the case of Ponni Sugar and Chemicals Ltd. the Hon’ble Supreme Court, after following the purpose test as explained in Sahney Steel (supra) held that the point of time at which subsidy is paid is not relevant. The source a…

DCIT, New Delhi vs. M/S. Dabur India Ltd., New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 6256/DEL/2014[2008-09]Status: DisposedITAT Delhi18 Feb 2021AY 2008-09

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

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…ing regard to the purpose for which subsidy was given. For the above proposition, the ld. Counsel relied on the decisions of the Hon’ble Supreme Court in the case of CIT vs. Ponni Sugar and Chemicals Limited: 306 ITR 392, Sahney Steel and Press Works vs. CIT: 228 ITR 253; and V.S.S.V. Meenakshi Achi: 60 ITR 253 and various other decisions. 142. The ld. Counsel for the assessee submitted that in the case of Ponni Sugar and Chemicals Ltd. the Hon’ble Supreme Court, after following the purpose test as explained in Sahney Steel (supra) held that the point of time at which subsidy is paid is not relevant. The source a…

M/S. Dabur India Ltd., New Delhi vs. Addl.CIT, New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3241/DEL/2014[2007-08]Status: DisposedITAT Delhi18 Feb 2021AY 2007-08

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

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…ing regard to the purpose for which subsidy was given. For the above proposition, the ld. Counsel relied on the decisions of the Hon’ble Supreme Court in the case of CIT vs. Ponni Sugar and Chemicals Limited: 306 ITR 392, Sahney Steel and Press Works vs. CIT: 228 ITR 253; and V.S.S.V. Meenakshi Achi: 60 ITR 253 and various other decisions. 142. The ld. Counsel for the assessee submitted that in the case of Ponni Sugar and Chemicals Ltd. the Hon’ble Supreme Court, after following the purpose test as explained in Sahney Steel (supra) held that the point of time at which subsidy is paid is not relevant. The source a…

DCIT, New Delhi vs. M/S. Dabur India Ltd., New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3114/DEL/2014[2007-08]Status: DisposedITAT Delhi18 Feb 2021AY 2007-08

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

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…ing regard to the purpose for which subsidy was given. For the above proposition, the ld. Counsel relied on the decisions of the Hon’ble Supreme Court in the case of CIT vs. Ponni Sugar and Chemicals Limited: 306 ITR 392, Sahney Steel and Press Works vs. CIT: 228 ITR 253; and V.S.S.V. Meenakshi Achi: 60 ITR 253 and various other decisions. 142. The ld. Counsel for the assessee submitted that in the case of Ponni Sugar and Chemicals Ltd. the Hon’ble Supreme Court, after following the purpose test as explained in Sahney Steel (supra) held that the point of time at which subsidy is paid is not relevant. The source a…

The DCIT, Circle-2(1)(1), Ahmedabad vs. Genus Electrotech Limited, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 701/AHD/2015[2011-12]Status: DisposedITAT Delhi17 Feb 2021AY 2011-12

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 348/AHD/2015[2011-12]Status: DisposedITAT Delhi17 Feb 2021AY 2011-12

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

The ACIT, Circle-2(1)(1), Ahmedabad vs. Genus Eletrotech Limited, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2617/AHD/2015[2012-13]Status: DisposedITAT Delhi17 Feb 2021AY 2012-13

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle- 2(1)(1), Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2461/AHD/2015[2012-13]Status: DisposedITAT Delhi17 Feb 2021AY 2012-13

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

The DCIT, Circle-4, Ahmedabad vs. M/S. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 99/AHD/2014[2007-08]Status: DisposedITAT Delhi17 Feb 2021AY 2007-08

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

The DCIT, Circle-4, Ahmedabad vs. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 1899/AHD/2014[2010-11]Status: DisposedITAT Delhi17 Feb 2021AY 2010-11

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

The DCIT, Circle-4, Ahmedabad vs. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 1898/AHD/2014[2009-10]Status: DisposedITAT Delhi17 Feb 2021AY 2009-10

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The ACIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 1763/AHD/2014[2009-10]Status: DisposedITAT Delhi17 Feb 2021AY 2009-10

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

The DCIT, Circle-4, Ahmedabad vs. M/S. Genus Electrotech Ltd., Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 100/AHD/2014[2008-09]Status: DisposedITAT Delhi17 Feb 2021AY 2008-09

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2831/AHD/2013[2008-09]Status: DisposedITAT Delhi17 Feb 2021AY 2008-09

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-4, Ahmedabad

In the result, the appeals of the Revenue and assessee are decided as under:

ITA 2830/AHD/2013[2007-08]Status: DisposedITAT Delhi17 Feb 2021AY 2007-08

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing]

…profits of the assessee got enhanced and its goods by virtue of sales fax exemption got competitive advantage which was on revenue account. The AO has further relied upon the decision of the Hon'ble SC in the case of Sawhney Steel and Press Works Ltd Vs CIT 228 ITR 253 (SC), the decision of the Hon'ble Supreme Court in the case of CIT Vs CIT Vs Dusad Industries, 162 ITR 784 and the decision of Hon'ble Supreme Court in the case of CIT Vs Ponni Sugar and Chemicals Ltd. 306 ITR 392. In view of the findings discussed above the AO held that the sales tax incentive and Excise Duty incentive received by the appellant…

Prism Cement Ltd, Mumbai vs. DCIT CC 6(1), Mumbai

ITA 804/MUM/2018[2012-13]Status: DisposedITAT Mumbai04 Jan 2021AY 2012-13

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 804 & 805/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2012-13 & 2011-12)

For Appellant: Shri Vijay Mehta, ARFor Respondent: Shri V. Sreekar, DR
Section 115JSection 143(1)Section 143(2)Section 14A

…) CIT vrs. Dusad Industries (1986) 162 ITR 784 – MP HC. 37. After considering the submission of the assessee, Ld. CIT(A) rejected the contention of the assessee by relying on decision of Hon’ble Supreme Court in the case of Sahney Steel and Press works Ltd. 228 ITR 253 (SC), CIT vrs. Chhindwara fuels 245 ITR 9 (Kol HC) and CIT vrs. Shiv Shakti Flour Mills 36 I.T.A. No. 804 & 805/Mum/2018 871 & 872/Mum/2018 Pvt. Ltd. – ITAT Guwahati Bench. With reference to the above cases, Ld. CIT(A) observed that subsidy given by the government is after the commencement of the business and to promote the business and not to…

Fortuna Engineering Pvt.Ltd, Nashik vs. Assistant Commissioner of Income-Tax, Circle - 1, Nashik

In the result, the appeal of assessee is allowed

ITA 2218/PUN/2017[2014-15]Status: DisposedITAT Pune24 Sept 2020AY 2014-15

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi

For Appellant: Shri Devendra JainFor Respondent: Shri Dhananjay Mahajan
Section 1Section 143(3)Section 263

…treated as capital account. We note that the Hon‟ble High Court of Bombay in order to reach said conclusion placed reliance on the decision of Hon‟ble Supreme Court in the cases of Ponni Sugar & Chemicals Ltd., 306 ITR 392 and Sahney Steel & Press Works Ltd., 228 ITR 253. Having aggrieved before the Hon‟ble High Court of Bombay the Department of Revenue carried the matter to the file of Hon‟ble Supreme Court challenging the decision of Hon‟ble High Court of Bombay in the case of Chaphalkar Brothers (supra). The Hon‟ble Supreme Court dealt the issue in detail and held if the object of subsidy is to industrialize t…

DCIT (Ltu), New Delhi vs. M/S. Nestle India Ltd., Gurgaon

ITA 2020/DEL/2014[2009-10]Status: DisposedITAT Delhi22 Jul 2020AY 2009-10
Section 143(1)Section 14ASection 244ASection 92

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘E’, NEW DELHI (Through Video Conferencing) BEFORE, SHRI G.S. PANNU, VICE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Dy. CIT (LTU),NBCC M/s Nestle India Ltd. Plaza Pushp Vihar, DLF City, Phase-II, New Delhi-1100017 Vs. Jacaranda Marg, Gurgaon-122002 PAN –AAACN 0757G (Appellant) (Respondent) M/s Nestle India Ltd. Dy. CIT (LTU),NBCC M-5A, Connaught Plaza Pushp Vihar, Circus, Vs. New Delhi-1100017 New Delhi-110001 PAN –AAACN 0757G (Appellant) (Respondent) Appellant By M/s. Pramita M. Biswas, CIT-DR Respondent by Sh. Ajay Vohra, Sr. Adv. Sh. Neera…

M/S. Nestle India Ltd, New Delhi vs. DCIT, Ltu, New Delhi

ITA 1954/DEL/2014[2009-10]Status: DisposedITAT Delhi22 Jul 2020AY 2009-10
Section 143(1)Section 14ASection 244ASection 92

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘E’, NEW DELHI (Through Video Conferencing) BEFORE, SHRI G.S. PANNU, VICE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Dy. CIT (LTU),NBCC M/s Nestle India Ltd. Plaza Pushp Vihar, DLF City, Phase-II, New Delhi-1100017 Vs. Jacaranda Marg, Gurgaon-122002 PAN –AAACN 0757G (Appellant) (Respondent) M/s Nestle India Ltd. Dy. CIT (LTU),NBCC M-5A, Connaught Plaza Pushp Vihar, Circus, Vs. New Delhi-1100017 New Delhi-110001 PAN –AAACN 0757G (Appellant) (Respondent) Appellant By M/s. Pramita M. Biswas, CIT-DR Respondent by Sh. Ajay Vohra, Sr. Adv. Sh. Neera…

Mahindra & Mahindra Ltd, Mumbai vs. ACIT Cir 2(2)2, Mumbai

In the result, all the appeals of the assessee are partly allowed for statistical purposes and appeal of the revenue is dismissed

ITA 1449/MUM/2016[2011-12]Status: DisposedITAT Mumbai19 Jun 2020AY 2011-12

Bench: Shri Mahavir Singh, Vp & Shri M.Balaganesh, Am & Sa No.462/Mum/2019 (Arising Out Of Ita No.1449/Mum/2016) (Assessment Year : 2011-12) Mahindra & Mahindra Vs. Dy. Commissioner Of Limited, Income-Tax Corporation Taxation, Circle-2(2)(2) P.K. Kurne Chowk, Aayakar Bhavan, Worli, Mumbai – 400020 M.K.Road, Mumbai-400020 Pan/Gir No.Aaacm3025E (Appellant) .. (Respondent) & Sa No.461/Mum/2019 (Arising Out Of Ita No.7382/Mum/2017) (Assessment Year : 2013-14) Mahindra & Mahindra Vs. Dy. Commissioner Of Limited, Income-Tax Corporation Taxation, Circle-2(2)(2) P.K. Kurne Chowk, Aayakar Bhavan, Worli, Mumbai – 400020 M.K.Road, Mumbai-400020 Pan/Gir No.Aaacm3025E (Appellant) .. (Respondent) Dy. Commissioner Of Vs. Mahindra & Mahindra Limited, Income-Tax Corporation Taxation, Circle-2(2)(2) P.K. Kurne Chowk, Aayakar Bhavan, Worli, Mumbai – 400020 M.K.Road, Mumbai- 400020 Pan/Gir No.Aaacm3025E (Appellant) .. (Respondent) Mahindra & Mahindra Vs. Asst. Commissioner Of Limited, Income-Tax Corporation Taxation, Circle-2(2)(2) P.K. Kurne Chowk, Aayakar Bhavan, Worli, Mumbai – 400020 M.K.Road, Mumbai-400020 Pan/Gir No.Aaacm3025E (Appellant) .. (Respondent)

Section 143(3)Section 144C(5)

…employment generation. The Sales Tax Payment is only a measure or yardstick to determine the quantum of incentive. 10.3. We find that the ld. AO placed reliance on the decision of Hon’ble Supreme Court in the case of Sahney Steel and Press Ltd., reported in 228 ITR 253 and the decision of Hon’ble Punjab and Haryana High Court in the case of Abhishek Industries Ltd., reported in 286 ITR 1 and rejected the claim of the assessee of treating the industrial promotion subsidy as capital receipt. 10.4. The ld. AO also observed that this subsidy was available to the assessee from the date of commencement of commercial…