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 366,470 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

Telangana State Housing Corporation Limited, Hyderabad vs. DCIT., Circle-2(1), Hyderabad

In the result appeal of the assessee is partly allowed for statistical purposes

ITA 554/HYD/2024[2021-22]Status: DisposedITAT Hyderabad28 Mar 2025AY 2021-22

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA T Rajendra Prasad And Shri M Poorna Chander RaoFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 143(1)(a)Section 143(3)Section 2(24)(xviii)Section 36(1)(iii)Section 43BSection 68

…rmination of the actual cost of the asset in terms of Explanation-10 to Sec.43(1) of the Act. Therefore, by following certain judicial precedents including the decision of Hon’ble Supreme Court in the case of Sahney Steel and Press Works Ltd., vs., CIT [1997] 228 ITR 253 (SC) and CIT, Madras vs., M/s. Ponni Sugars & Chemicals Ltd., [2008] 306 ITR 392 (SC), rejected 10 ITA.No.554/Hyd./2024 the explanation of assessee and grant received from Government of Telangana amounting to Rs.150 crores has been treated as ‘Income’ of the assessee. 8. Learned Counsel for the Assessee referring to the Government Orders issued…

M/S. Munjal Auto Industries Ltd., Baroda vs. The Income Tax Officer, Ward-4(1), Baroda

Appeal is dismissed

ITA 784/AHD/2013[2003-04]Status: DisposedITAT Ahmedabad25 Mar 2025AY 2003-04

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Ms. Amrin Pathan, ARFor Respondent: Shri Waghe Prasadrao, Sr.DR
Section 115JSection 43(1)

…ctive of which was not for encouraging or setting up of new industrial unit but was to augment the normal business of Binola Unit, which was patently against the principle laid down by the apex court in the case of Sahney Steel & Press Works Ltd. etc. V/s CIT 228 ITR 253 (SC). 3. During the course of hearing the Departmental Representative (DR) made a detailed submission before us, focusing on the applicability of Explanation 10 to Section 43(1) of the Income-tax Act, 1961, and the correct computation of book profits under Section 115JB of the Act. 3.1. On this background, we now first deal with Revenue’s Groun…

The DCIT, Circle-4, Vadodara vs. M/S. Munjal Auto Industries Ltd., Vadodara

Appeal is dismissed

ITA 1383/AHD/2009[2006-07]Status: DisposedITAT Ahmedabad25 Mar 2025AY 2006-07

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Ms. Amrin Pathan, ARFor Respondent: Shri Waghe Prasadrao, Sr.DR
Section 115JSection 43(1)

…ctive of which was not for encouraging or setting up of new industrial unit but was to augment the normal business of Binola Unit, which was patently against the principle laid down by the apex court in the case of Sahney Steel & Press Works Ltd. etc. V/s CIT 228 ITR 253 (SC). 3. During the course of hearing the Departmental Representative (DR) made a detailed submission before us, focusing on the applicability of Explanation 10 to Section 43(1) of the Income-tax Act, 1961, and the correct computation of book profits under Section 115JB of the Act. 3.1. On this background, we now first deal with Revenue’s Groun…

The DCIT, Circle-4, Vadodara vs. M/S. Munjal Auto Industries Ltd., Vadodara

Appeal is dismissed

ITA 1382/AHD/2009[2003-04]Status: DisposedITAT Ahmedabad25 Mar 2025AY 2003-04

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Ms. Amrin Pathan, ARFor Respondent: Shri Waghe Prasadrao, Sr.DR
Section 115JSection 43(1)

…ctive of which was not for encouraging or setting up of new industrial unit but was to augment the normal business of Binola Unit, which was patently against the principle laid down by the apex court in the case of Sahney Steel & Press Works Ltd. etc. V/s CIT 228 ITR 253 (SC). 3. During the course of hearing the Departmental Representative (DR) made a detailed submission before us, focusing on the applicability of Explanation 10 to Section 43(1) of the Income-tax Act, 1961, and the correct computation of book profits under Section 115JB of the Act. 3.1. On this background, we now first deal with Revenue’s Groun…

The DCIT, Circle-4, Vadodara vs. Munjal Auto Industries Ltd., Vadodara

Appeal is dismissed

ITA 1619/AHD/2008[2005-06]Status: DisposedITAT Ahmedabad25 Mar 2025AY 2005-06

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं/ िनधा"रण वष"/ Sl. Appeal(S) By :

For Appellant: Ms. Amrin Pathan, ARFor Respondent: Shri Waghe Prasadrao, Sr.DR
Section 115JSection 43(1)

…ctive of which was not for encouraging or setting up of new industrial unit but was to augment the normal business of Binola Unit, which was patently against the principle laid down by the apex court in the case of Sahney Steel & Press Works Ltd. etc. V/s CIT 228 ITR 253 (SC). 3. During the course of hearing the Departmental Representative (DR) made a detailed submission before us, focusing on the applicability of Explanation 10 to Section 43(1) of the Income-tax Act, 1961, and the correct computation of book profits under Section 115JB of the Act. 3.1. On this background, we now first deal with Revenue’s Groun…

The DCIT, Circle-4(1), Vadodara vs. Munjal Auto Industries Ltd., Vadodara

Appeal is dismissed

ITA 2007/AHD/2007[2004-05]Status: DisposedITAT Ahmedabad25 Mar 2025AY 2004-05

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokar

For Appellant: Ms. Amrin Pathan, ARFor Respondent: Shri Waghe Prasadrao, Sr.DR
Section 115JSection 43(1)

…ctive of which was not for encouraging or setting up of new industrial unit but was to augment the normal business of Binola Unit, which was patently against the principle laid down by the apex court in the case of Sahney Steel & Press Works Ltd. etc. V/s CIT 228 ITR 253 (SC). During the course of hearing the Departmental Representative (DR) made a detailed submission before us, focusing on the applicability of Explanation 10 to Section 43(1) of the Income-tax Act, 1961, and the correct computation of book profits under Section 115JB of the Act. 3. 1. On this background, we now first deal with Revenue's Grounds…

Grasim Industries Ltd ( Corporate Finance Division), Mumbai vs. Addl CIT RG 6(3), Mumbai

ITA 3762/MUM/2009[2006-07]Status: DisposedITAT Mumbai25 Feb 2025AY 2006-07

Bench: the CIT(A). The CIT(A) partly allowed the appeal preferred by the Assessee vide order, dated 18/05/2009. 4. Not being satisfied with the relief granted by the Id. CIT(A), the Assessee has preferred appeal before this Tribunal. The Revenue has also filed cross-appeal challenging the relief granted by the Id. CIT(A).

For Appellant: Shri J. D. Mistry Sr. AdvocateFor Respondent: Shri Kishor Dhule
Section 143(2)Section 143(3)Section 24Section 43B

…sidy is paid is not relevant. The source is immaterial. The form of subsidy is immaterial.‖ In fact, the Hon’ble Supreme Court while rendering this decision had duly considered its earlier decision in the case of Sahney Steel and Press Works Ltd., reported in 228 ITR 253 and had absolutely no quarrel with that judgement. Rather, it concurred with the decision rendered in Sahney Steel and Press Works Ltd., case. In this regard, it would be relevant to reproduce the operative portion of the decision of Hon’ble Supreme Court in the case of Ponni Sugars and Chemicals Ltd., as under:-“ “14. The second case is Lincolns…

Subramaniam Swaminathan Iyer, Bhilai, Durg vs. Deputy Commissioner of Income Tax-1(1), Bhilai, Durg

In the result, appeal of the assessee is partly allowed/partly allowed for statistical purposes in terms of our aforesaid observations

ITA 71/RPR/2023[2012-13]Status: DisposedITAT Raipur10 Feb 2025AY 2012-13

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.71/Rpr/2023 "नधा"रण वष" / Assessment Year : 2012-13 Subramaniam Swaminathan Iyer 12-A/7, Nehru Nagar, Bhilai (C.G.)-490 020 Pan: Anwps2381P

For Appellant: S/shri Milind Bhusari, AdvocateFor Respondent: Shri S.L Anuragi, CIT-DR
Section 143(2)Section 143(3)Section 14ASection 2(22)(e)Section 68

…ssee had shown an amount of Rs.6,12,607/- as deemed sales tax under the head “Advances and other Deposits”. The A.O, observing that the said amount as per the judgment of the Hon’ble Supreme Court in the case of Sahney Steel & Press Works Ltd. Vs. CIT, (1997) 228 ITR 253 (SC) was in the nature of a revenue receipt, therefore, made an addition of the same to the returned income of the assessee. 7. On a perusal of the records, the A.O furthrer observed that the assessee had during the subject year made an investment in the equity share capitals of six companies and in agricultural assets aggregating to Rs.1,61,53,…

Deputy Commissioner of Income Tax, Circle 4(2), Delhi, I.P.Estate vs. Bureau Veritas Consumer Products Services(India) Pvt. Ltd., Lajpat Nagar

ITA 3158/DEL/2023[2017-18]Status: DisposedITAT Delhi14 Jan 2025AY 2017-18

Bench: Ms. Madhumita Roy & Shri Amitabh Shukla, Accountnat Member [Assessment Year: 2013-14] The Assistant Commissioner Of M/S Dalmia Cement Bharat Ltd. Income Tax, Circle-1, Dalmiapuram, Williams Road, Vs Tamilnadu, 621651 Cantonment, Trichy, Tamil Nadu-620001 Pan-Aadca9414C Assessee Revenue Cross Objection No.63/Chny/2018 (Arising Out Of Ita No.3157/Chny2017) [Assessment Year: 2013-14] M/S Dalmia Cement Bharat Ltd. The Assistant Commissioner Of Dalmiapuram, Income Tax, Circle-1, Tamilnadu-621651 Vs Williams Road, Cantonment, Trichy, Tamil Nadu-620001 Pan- Aadca9414C Assessee Revenue [Assessment Year: 2014-15] The Assistant Commissioner Of M/S Dalmia Cement Bharat Ltd. Income Tax, Circle-1, Dalmiapuram, Williams Road, Vs Tamilnadu, 621651 Cantonment, Trichy, Tamil Nadu-620001 Pan-Aadca9414C Assessee Revenue

Section 14ASection 32(1)(iia)

…R SETTING UP OF THE INDUSTRIES. 4.3) The subsidies received by the assesee are within the purview of the principles laid down to treat the subsidy as revenue receipts by the HON'BLE APEX COURT IN THE CASE OF SAHNEY STEEL AND PRESS WORKS LTD. AND OTHERS VS.CIT(228 ITR 253). As observed by the Apex Court the assessee was free to use the money in its business entirely as it liked and WAS NOT OBLIGED TO SPEND THE MONEY FOR A PARTICULAR PURPOSE like expansion of the unit/purchase of machinery/purchase of capital goods/purchase of raw materials /repayment of loans like in the case of Ponni Sugars & Chemicals Ltd. In vi…

Jt.Commissioner of Income-Tax(OSD), Satara vs. Kute Sons Dairys Limited, Satara

In the result, appeal of the Revenue is allowed

ITA 226/PUN/2024[2016-17]Status: DisposedITAT Pune08 Jan 2025AY 2016-17

Bench: Shri Rama Kanta Panda & Ms. Astha Chandra

For Appellant: -None-For Respondent: Shri R. Y. Balawade, Addl. CIT
Section 143(1)Section 143(2)Section 43(1)

…Limited, Pune vs. Union of India & Others vide Writ Petition No.3735 of 2021 Order dated 04.12.2023 and submitted that the Hon’ble High Court after considering the decisions of Hon’ble Supreme Court in the case of Sahney Steel & Press Works Ltd., vs. CIT 228 ITR 253 (SC), CIT vs. Ponni Sugars and Chemicals Ltd., 306 ITR 392 (SC), CIT vs. Chaphalkar Brothers 400 ITR 279 (SC), CIT vs. Shree Balaji Alloys 7 ITR-OL 50 (SC) and various other decisions has held that if the subsidy's purpose was to help the assessee to run the business more profitably or meet daily business expenses, then it is to be considered…

Patel Engineering Limited, Mumbai vs. DCIT CC-3(4), Mumbai

In the result, appeals of the Revenue are dismissed, except for one ground no

ITA 2801/MUM/2024[2017-18]Status: DisposedITAT Mumbai31 Dec 2024AY 2017-18

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 194ASection 201

…manner in which the subsidy is disbursed is not the relevant criteria. The intent/object of the Scheme has to be considered. This principle has been laid down in the judgment of the Hon'ble Supreme Court in the case of CIT vs. Sahney Steel & Press Works Ltd. (228 ITR 253), wherein the Hon'ble Supreme Court held that it is not the source from which the amount is paid to the assessee which is determinative of the question whether the subsidy payments are of revenue or capital nature. The source is immaterial. The relevant extract of the decision is reproduced hereunder:- "It is not the source from which the amount…

ITO, New Delhi vs. M/S. Jitf Water Infra (Naya Raipur) Ltd., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 2457/DEL/2017[2012-13]Status: DisposedITAT Delhi10 Dec 2024AY 2012-13

Bench: Shri Mahavir Singh & Shri Naveen Chandra, Ita No:- 2457/Del/2017 (Assessment Year- 2012-13)

For Appellant: Shri Rohit Jain, Adv. and Shri Saksham Singhal, AdvFor Respondent: Shri Dayainder Singh Sidhu, CIT(DR)

…n ITA No. 1102-1103/Del/2018, order dated 28.11.2019, after considering in detail facts and following judgment Page 6 of 12 ITA No.-2457/Del/2017 M/s JITF Water Infra (Naya Raipur) Ltd. of Hon’ble Supreme Court in the case of Sahni Steel & Press Works Ltd. 228 ITR 253 (SC) held that the nature of financial assistance given by NRDA to the assessee is capital in nature and the amount received by the assessee is a capital receipt not chargeable to tax. The Tribunal observed in paras 12 and 13 as follows: “12. As mentioned elsewhere the bone of contention is the treatment of financial assistance received by the…

Deputy Commissioner of Income Tax, Circle-1, Tiruppur vs. Eastman Exports Global Clothing P Ltd, Tiruppur, Tamilnadu

In the result, the appeal of the assessee is allowed

ITA 326/CHNY/2024[2018-19]Status: DisposedITAT Chennai20 Sept 2024AY 2018-19

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. Nos.3326/Chny/2019 & 326/Chny/2024 िनधा"रण वष"/Assessment Years: 2017-18 & 2018-19 The Assistant Commissioner Of Vs. Eastman Exports Global Clothing (P) Ltd., No. 10, 12, 2Nd Street, Kumar Income Tax, Circle 1(1), 121, Adams Buildings, 60 Feet Road, Nagar South, Tirupur 641 603. Tirupur 641 602. [Pan: Aaccc0952E] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.706/Chny/2022 िनधा"रण वष"/Assessment Year: 2017-18 Victus Dyeings, The Assistant Commissioner Of 410, P.N. Road, R.K. Nagar, Income Tax, Circle 1, Vs. Tirupur 641 601. Tirupur. [Pan: Aacfv4420D] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.768/Chny/2022 िनधा"रण वष"/Assessment Year: 2017-18 The Deputy Commissioner Of M/S. K.M. Knit Wear, Income Tax, Circle 1, 14, E.F. Lakshmi Nagar, First Street, Vs. Tirupur. City Garden, Tirupur 641 602. [Pan: Aacfk3053B] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.358/Chny/2022 िनधा"रण वष"/Assessment Year: 2018-19 M/S. K.M. Knit Wear, The Assistant Commissioner Of 14, E.F. Lakshmi Nagar, First Street, Income Tax, Circle 1, Vs. City Garden, Tirupur 641 602. Tirupur. (अपीलाथ"/Appellant) (""थ"/Respondent)

Section 28

…l funds is neither material nor relevant for deciding the character of the incentive subsidy. In this connection, learned counsel placed reliance on the judgment of this Court in the case of Sahney Steel and Press Works Ltd. and Ors. v. CIT reported in (1997) 228 ITR 253. 8. Shri Ganesh, learned senior counsel appearing on behalf of the assessee submitted that the benefits were conferred on the assessee under the 1980 and 1987 Schemes, namely, additional price by reason of enhancement of free sale sugar quota, which resulted in the benefit of additional price, which price had to be utilized only for repayment of…

Geena Garments, Tiruppur vs. ACIT, Circle-1, Tiruppur

In the result, the appeal of the assessee is allowed

ITA 1348/CHNY/2023[2017-18]Status: DisposedITAT Chennai20 Sept 2024AY 2017-18

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. Nos.3326/Chny/2019 & 326/Chny/2024 िनधा"रण वष"/Assessment Years: 2017-18 & 2018-19 The Assistant Commissioner Of Vs. Eastman Exports Global Clothing (P) Ltd., No. 10, 12, 2Nd Street, Kumar Income Tax, Circle 1(1), 121, Adams Buildings, 60 Feet Road, Nagar South, Tirupur 641 603. Tirupur 641 602. [Pan: Aaccc0952E] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.706/Chny/2022 िनधा"रण वष"/Assessment Year: 2017-18 Victus Dyeings, The Assistant Commissioner Of 410, P.N. Road, R.K. Nagar, Income Tax, Circle 1, Vs. Tirupur 641 601. Tirupur. [Pan: Aacfv4420D] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.768/Chny/2022 िनधा"रण वष"/Assessment Year: 2017-18 The Deputy Commissioner Of M/S. K.M. Knit Wear, Income Tax, Circle 1, 14, E.F. Lakshmi Nagar, First Street, Vs. Tirupur. City Garden, Tirupur 641 602. [Pan: Aacfk3053B] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.358/Chny/2022 िनधा"रण वष"/Assessment Year: 2018-19 M/S. K.M. Knit Wear, The Assistant Commissioner Of 14, E.F. Lakshmi Nagar, First Street, Income Tax, Circle 1, Vs. City Garden, Tirupur 641 602. Tirupur. (अपीलाथ"/Appellant) (""थ"/Respondent)

Section 28

…l funds is neither material nor relevant for deciding the character of the incentive subsidy. In this connection, learned counsel placed reliance on the judgment of this Court in the case of Sahney Steel and Press Works Ltd. and Ors. v. CIT reported in (1997) 228 ITR 253. 8. Shri Ganesh, learned senior counsel appearing on behalf of the assessee submitted that the benefits were conferred on the assessee under the 1980 and 1987 Schemes, namely, additional price by reason of enhancement of free sale sugar quota, which resulted in the benefit of additional price, which price had to be utilized only for repayment of…

ACIT, Circle-1, Tirupur vs. Eastman Exports Global Clothing (P) Ltd., Tirupur

In the result, the appeal of the assessee is allowed

ITA 3326/CHNY/2019[2017-18]Status: DisposedITAT Chennai20 Sept 2024AY 2017-18

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. Nos.3326/Chny/2019 & 326/Chny/2024 िनधा"रण वष"/Assessment Years: 2017-18 & 2018-19 The Assistant Commissioner Of Vs. Eastman Exports Global Clothing (P) Ltd., No. 10, 12, 2Nd Street, Kumar Income Tax, Circle 1(1), 121, Adams Buildings, 60 Feet Road, Nagar South, Tirupur 641 603. Tirupur 641 602. [Pan: Aaccc0952E] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.706/Chny/2022 िनधा"रण वष"/Assessment Year: 2017-18 Victus Dyeings, The Assistant Commissioner Of 410, P.N. Road, R.K. Nagar, Income Tax, Circle 1, Vs. Tirupur 641 601. Tirupur. [Pan: Aacfv4420D] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.768/Chny/2022 िनधा"रण वष"/Assessment Year: 2017-18 The Deputy Commissioner Of M/S. K.M. Knit Wear, Income Tax, Circle 1, 14, E.F. Lakshmi Nagar, First Street, Vs. Tirupur. City Garden, Tirupur 641 602. [Pan: Aacfk3053B] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.358/Chny/2022 िनधा"रण वष"/Assessment Year: 2018-19 M/S. K.M. Knit Wear, The Assistant Commissioner Of 14, E.F. Lakshmi Nagar, First Street, Income Tax, Circle 1, Vs. City Garden, Tirupur 641 602. Tirupur. (अपीलाथ"/Appellant) (""थ"/Respondent)

Section 28

…l funds is neither material nor relevant for deciding the character of the incentive subsidy. In this connection, learned counsel placed reliance on the judgment of this Court in the case of Sahney Steel and Press Works Ltd. and Ors. v. CIT reported in (1997) 228 ITR 253. 8. Shri Ganesh, learned senior counsel appearing on behalf of the assessee submitted that the benefits were conferred on the assessee under the 1980 and 1987 Schemes, namely, additional price by reason of enhancement of free sale sugar quota, which resulted in the benefit of additional price, which price had to be utilized only for repayment of…

Economic Explosives Limited, Nagpur vs. National E Assessment Centre, New Delhi

In the result, appeal for the assessment year 2018–19 filed by the assessee is partly allowed

ITA 242/NAG/2023[2018-19]Status: DisposedITAT Nagpur09 Sept 2024AY 2018-19

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Mani JainFor Respondent: Shri Kailash C. Kanojiya
Section 139Section 142(1)Section 143(2)

…t under Mega Project under the Scheme and commencement of commercial production would not make the subsidy as revenue in nature but, may be treated as capital in nature. The Supreme Court in its latter decision in Sahney Steele and Press Works Ltd versus CIT (228 ITR 253) while considering the question as to whether refund of sales tax on raw materials, machinery and finished goods, levied by the State Government be treated as capital or revenue in nature held as under: "Held, dismissing the appeal, that under the notification in question the payments were made to assist the new industries at the commencement of…

Economic Explosives Limited, Nagpur vs. Assistant Commissioner of Income Tax, Central Circle 1 (2), Nagpur

In the result, appeal for the assessment year 2018–19 filed by the assessee is partly allowed

ITA 177/NAG/2022[2017-18]Status: DisposedITAT Nagpur09 Sept 2024AY 2017-18

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Mani JainFor Respondent: Shri Kailash C. Kanojiya
Section 139Section 142(1)Section 143(2)

…t under Mega Project under the Scheme and commencement of commercial production would not make the subsidy as revenue in nature but, may be treated as capital in nature. The Supreme Court in its latter decision in Sahney Steele and Press Works Ltd versus CIT (228 ITR 253) while considering the question as to whether refund of sales tax on raw materials, machinery and finished goods, levied by the State Government be treated as capital or revenue in nature held as under: "Held, dismissing the appeal, that under the notification in question the payments were made to assist the new industries at the commencement of…

DCIT, Circle- 13(2), New Delhi vs. Jmw India Pvt. Ltd., Delhi

The appeal of the Revenue is dismissed

ITA 4271/DEL/2018[2013-14]Status: DisposedITAT Delhi05 Jul 2024AY 2013-14

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharmaassessment Year: 2013-14 Dcit, Vs Jmw India Pvt. Ltd., Circle-13(2), 309, Vikas Deep Building, New Delhi. Laxmi Nagar, District Centre, Delhi. – 110 092. Pan: Aaacj3260C (Appellant) (Respondent) Assessee By : Shri C.S. Anand, Advocate Revenue By : Ms Parul Singh, Sr. Dr Date Of Hearing : 25.06.2024 Date Of Pronouncement : 05.07.2024 Order Per Anubhav Sharma, Jm: This Appeal Is Preferred By The Revenue Against The Order Dated 08.03.2018 Of The Commissioner Of Income Tax (Appeals)-5, Delhi (Hereinafter Referred As Ld. First Appellate Authority Or In Short Ld. ‘Faa’) In Appeal No. Del/Cit(A)-5/0368/2016-17 Arising Out Of The Appeal Before It Against The Orders Passed U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred As ‘The Act’), By The Dcit, Circle-13(2), New Delhi (Hereinafter Referred To As The Ld. Ao). 2. Heard & Perused The Record. The Ld. Dr Submitted That The Order Of The Cit(A) Is Erroneous As Without Examining The Use Of Subsidy Amount Reliance Was Placed On The Judgement Of The Hon’Ble Jammu & Kashmir High Court In The Case Of Shri Balaji Alloys & Others, 333 Itr 335 (J&K). It Was Submitted That The Cit(A) Was Supposed To Examine The Question Of Utilization Of The Subsidy In The Light Of The Judgement Of The Hon’Ble Supreme Court In The Case Of Ponni Sugars & Chemicals Limited, 306 Itr 392 (Sc). The Ld. Ar, However, Relied The Order Of The Cit(A) & Submitted That The Cit(A) Has Not Taken Into Consideration The Judgement Of The Hon’Ble Supreme Court In The Case Of Sahney Steel & Press Works Limited Vs. Cit (1997) 228 Itr 253 (Sc).

For Appellant: Shri C.S. Anand, AdvocateFor Respondent: Ms Parul Singh, Sr. DR
Section 143(3)Section 14A

…Chemicals Limited, 306 ITR 392 (SC). The ld. AR, however, relied the order of the CIT(A) and submitted that the CIT(A) has not taken into consideration the judgement of the Hon’ble Supreme Court in the case of Sahney Steel & Press Works Limited vs. CIT (1997) 228 ITR 253 (SC). 3. Giving thoughtful consideration to the matter on record and the submissions, it comes up that the assessee company is engaged in the business of trading and manufacturing copper products and the return was taken up for scrutiny and apart from examining the issue of disallowance u/s 14A, a disallowance on unvouched expenses was made for…

The Ramco Cements Ltd., Rajapalayam vs. ACIT Corporate Circle 2, Madurai

The appeals of the revenue stand dismissed

ITA 2196/CHNY/2019[2014-15]Status: DisposedITAT Chennai03 Jul 2024AY 2014-15

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1. आयकरअपील सं./ Ita No.957/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 2. आयकरअपील सं./ Ita No.958/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 3. आयकरअपील सं./ Ita No.2196/Chny/2019 (िनधा;रण वष; / Assessment Year: 2014-15) The Ramco Cements Limited Dcit बनाम (Formerly Known As Madras Cements Ltd) Corporate Circle -2, Ramamandiram, / Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपील सं./ Ita No.1274/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 5. आयकरअपील सं./ Ita No.1363/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 6. आयकरअपील सं./ Ita No.1897/Chny/2017 (िनधा;रणवष; / Assessment Year: 2013-14) Dcit The Ramco Cements Limited बनाम/ Corporate Circle -2, (Formerly Known As Madras Cements Ltd) Ramamandiram, Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent)

For Appellant: Shri J.Prabhakar (CA) &For Respondent: Mrs. Jothi Lakshmi Nayak (CIT)-Ld.DR

…was held that the incentive received under the WB Incentive Scheme is capital in nature. 2. The learned Commissioner of Income Tax (Appeals) erred in incorrectly applying the decision of the Supreme Court in Sahney Steel and Press Works Limited Vs. CIT (1997)228 ITR 253 (SC), though the said decision has been specifically held to be inapplicable to the West Bengal IPA subsidy by the Calcutta High Court in Rasoi Ltd. (2011) 335 ITR 438, cited supra. 3. The learned CIT(A) committed factual errors in failing to note that the West Bengal Govt. abolished all sales tax related incentives with effect from 1st Jan 2000…

ACIT Corporate Circle 2, Madurai vs. The Ramco Cements Limited, Chennai

The appeals of the revenue stand dismissed

ITA 1897/CHNY/2017[2013-14]Status: DisposedITAT Chennai03 Jul 2024AY 2013-14

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1. आयकरअपील सं./ Ita No.957/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 2. आयकरअपील सं./ Ita No.958/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 3. आयकरअपील सं./ Ita No.2196/Chny/2019 (िनधा;रण वष; / Assessment Year: 2014-15) The Ramco Cements Limited Dcit बनाम (Formerly Known As Madras Cements Ltd) Corporate Circle -2, Ramamandiram, / Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4. आयकरअपील सं./ Ita No.1274/Chny/2016 (िनधा;रण वष; / Assessment Year: 2010-11) & 5. आयकरअपील सं./ Ita No.1363/Chny/2016 (िनधा;रण वष; / Assessment Year: 2012-13) & 6. आयकरअपील सं./ Ita No.1897/Chny/2017 (िनधा;रणवष; / Assessment Year: 2013-14) Dcit The Ramco Cements Limited बनाम/ Corporate Circle -2, (Formerly Known As Madras Cements Ltd) Ramamandiram, Vs. Madurai. Rajapalayam-626 117. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcm-8375-L (अपीलाथ"/Appellant) : (" थ" / Respondent)

For Appellant: Shri J.Prabhakar (CA) &For Respondent: Mrs. Jothi Lakshmi Nayak (CIT)-Ld.DR

…was held that the incentive received under the WB Incentive Scheme is capital in nature. 2. The learned Commissioner of Income Tax (Appeals) erred in incorrectly applying the decision of the Supreme Court in Sahney Steel and Press Works Limited Vs. CIT (1997)228 ITR 253 (SC), though the said decision has been specifically held to be inapplicable to the West Bengal IPA subsidy by the Calcutta High Court in Rasoi Ltd. (2011) 335 ITR 438, cited supra. 3. The learned CIT(A) committed factual errors in failing to note that the West Bengal Govt. abolished all sales tax related incentives with effect from 1st Jan 2000…