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 367,154 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

DCIT Cir 3(2)(1), Mumbai vs. Maharashtra Airport Development Company Ltd, Mumbai

ITA 7259/MUM/2017[2014-15]Status: DisposedITAT Mumbai15 Mar 2024AY 2014-15

Bench: Shri Kuldip Singh & Ms. Padmavathy S

Section 80I

…d with the grants in question are part of inventory/work-in-progress, hence revenue in nature. Since grant is received to meet revenue expenses, the receipt is revenue in nature as held by the Apex Court in the case of Sahney Steel & Press Works Ltd., [1997], 228 ITR 253. 5. That the addition/disallowance made are illegal, unjust and bad in law and are based on mere surmises and conjunctures and the same cannot be justified by any material on record hence the entire addition should be deleted. That the additions/disallowances made are also highly excessive. 6. That the evidence filed and materials available on re…

DCIT 3(2)(1), Mumbai vs. Maharashtra Airport Developement Co. Ltd, Mumbai

ITA 7258/MUM/2017[2013-14]Status: DisposedITAT Mumbai15 Mar 2024AY 2013-14

Bench: Shri Kuldip Singh & Ms. Padmavathy S

Section 80I

…d with the grants in question are part of inventory/work-in-progress, hence revenue in nature. Since grant is received to meet revenue expenses, the receipt is revenue in nature as held by the Apex Court in the case of Sahney Steel & Press Works Ltd., [1997], 228 ITR 253. 5. That the addition/disallowance made are illegal, unjust and bad in law and are based on mere surmises and conjunctures and the same cannot be justified by any material on record hence the entire addition should be deleted. That the additions/disallowances made are also highly excessive. 6. That the evidence filed and materials available on re…

DCIT 3(2)(1), Mumbai vs. Maharashtra Airport Developement Co. Ltd, Mumbai

ITA 3704/MUM/2017[2012-13]Status: DisposedITAT Mumbai15 Mar 2024AY 2012-13

Bench: Shri Kuldip Singh & Ms. Padmavathy Sassessment Year: 2008-09 Assessment Year: 2012-13 Assessment Year: 2015-16 M/S. Maharashtra Airport Deputy Commissioner Of Development Company Income Tax, Ltd., Circle (3)(2)(1), 6Th Floor, Room No.608, 6Th Floor, Vs. World Trade Centre, Aayakar Bhawan, Tower No.1, Cuffe Parade, M.K. Road, Mumbai – 400 005 Mumbai - 400020 Pan: Aadcm9623M (Appellant) (Respondent) Assessment Year: 2008-09 Assessment Year: 2012-13 Assessment Year: 2013-14 Assessment Year: 2014-15 Assessment Year: 2015-16 Dy/Asst. Commissioner Of M/S. Maharashtra Airport Income Tax-(3)(2)(1), Development Co. Ltd., Vs. 12Th Floor, Room No.608/674, 6Th Floor, World Trade Centre, Aayakar Bhavan, Tower No.1, Cuffe Parade

For Appellant: Shri Rushabh Mehta, A.RFor Respondent: Smt Sanyogita Nagpal, D.R
Section 80I

…d with the grants in question are part of inventory/work-in-progress, hence revenue in nature. Since grant is received to meet revenue expenses, the receipt is revenue in nature as held by the Apex Court in the case of Sahney Steel & Press Works Ltd., [1997], 228 ITR 253. 5. Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the disallowance of Rs. 11,91,580/- u/s.14A r.w.r. 8D without appreciating the fact that the amount of disallowance u/s.14A of the I.T.Act, 1961 hus to be computed as per Rule 8D of I.T. Rules, 1962 as held in the order of the Hon'ble High Court…

Maharashtra Airport Development Company Ltd, Mumbai vs. DCIT Cir 3(2)(1), Mumbai

ITA 3682/MUM/2017[2012-13]Status: DisposedITAT Mumbai15 Mar 2024AY 2012-13

Bench: Shri Kuldip Singh & Ms. Padmavathy S

Section 80I

…d with the grants in question are part of inventory/work-in-progress, hence revenue in nature. Since grant is received to meet revenue expenses, the receipt is revenue in nature as held by the Apex Court in the case of Sahney Steel & Press Works Ltd., [1997], 228 ITR 253. 5. That the addition/disallowance made are illegal, unjust and bad in law and are based on mere surmises and conjunctures and the same cannot be justified by any material on record hence the entire addition should be deleted. That the additions/disallowances made are also highly excessive. 6. That the evidence filed and materials available on re…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 4081/DEL/2010[2003-04]Status: PendingITAT Delhi12 Mar 2024AY 2003-04

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Rajesh Kumar, CIT-DR

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I’ BENCH, NEW DELHI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT, AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA No. 4081/DEL/2010 [A.Y. 2003-04] M/s Maruti Suzuki India Ltd Vs. The Addl. C.I.T. Plot No. 1, Nelson Mandela Road Range -1 Vasant Kunj, New Delhi New Delhi PAN – ITA No. 4174/DEL/2010 [A.Y. 2003-04] The Addl. C.I.T. Vs. M/s Maruti Suzuki India Ltd Circle - 6 (1) Plot No. 1, Nelson Mandela Road New Delhi Vasant Kunj, New Delhi PAN – (Applicant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Adv Shri Neeraj Jain, Adv Shri Ramit Katyal, AR Ms. Somya Jain,…

DCIT (Ltu) 2, Mumbai vs. Asian Paints Ltd, Mumbai

In the result, the appeal by the Revenue is partly allowed for statistical purposes

ITA 2959/MUM/2019[2015-16]Status: DisposedITAT Mumbai08 Mar 2024AY 2015-16

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Fenil Bhatt a/wFor Respondent: Shri Vachashpati Tripathi
Section 10Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250Section 37(1)

…hat the Hon’ble jurisdictional High Court in CIT v/s Kirloskar Oil Engines Ltd. [2014] 364 ITR 88 (Bombay) after considering the decision of the Hon’ble Supreme Court in Ponni Sugars and Chemicals Ltd. (supra) and Sahney Steel & Press Works Ltd. v. CIT [1997] 228 ITR 253 (SC), observed as under:- “6. …..We are unable to accept this stand. In the case of in Sahney Steel & Press Works Ltd. v. CIT [1997] 228 ITR 253/94 Taxman 368 (SC) and in Ponni Sugars & Chemical Ltd.'s. case (supra), the honourable Supreme Court has emphasized that the character of receipt in the hands of the assessee has to be determined with re…

Asian Paints Limited, Mumbai vs. Dy. CIT Ltu, Mumbai

In the result, the appeal by the Revenue is partly allowed for statistical purposes

ITA 1673/MUM/2019[2015-16]Status: DisposedITAT Mumbai08 Mar 2024AY 2015-16

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Fenil Bhatt a/wFor Respondent: Shri Vachashpati Tripathi
Section 10Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250Section 37(1)

…hat the Hon’ble jurisdictional High Court in CIT v/s Kirloskar Oil Engines Ltd. [2014] 364 ITR 88 (Bombay) after considering the decision of the Hon’ble Supreme Court in Ponni Sugars and Chemicals Ltd. (supra) and Sahney Steel & Press Works Ltd. v. CIT [1997] 228 ITR 253 (SC), observed as under:- “6. …..We are unable to accept this stand. In the case of in Sahney Steel & Press Works Ltd. v. CIT [1997] 228 ITR 253/94 Taxman 368 (SC) and in Ponni Sugars & Chemical Ltd.'s. case (supra), the honourable Supreme Court has emphasized that the character of receipt in the hands of the assessee has to be determined with re…

Rswm Ltd, Bhilwara vs. DCIT Central Circle-31, New Delhi

In the result, the Appeals filed by the assessee in ITA No

ITA 146/DEL/2021[2015-16]Status: DisposedITAT Delhi31 Jan 2024AY 2015-16

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar U.S.Ita Nos.145 & 146 /Del/2021 (Assessment Years 2014-15 & 2015-16)

Section 115JSection 14ASection 14A(2)Section 37(1)Section 40Section 69

…is Court notices that the Punjab and Haryana High Court took into account the previous binding ruling of the Supreme Court in CIT v. Ponni Sugars & Chemicals Ltd. [2008] 174 Taxman 87/306 ITR 392 and Sahney Steel & Press Works Ltd. v. CIT [1997] 94 Taxman 368/228 ITR 253. In these circumstances, the Court is of the opinion that the amount was received as capital stream and therefore, not taxable. A similar view was taken by the Calcutta High Court in CIT 6. v. Gloster Jute Mills Ltd. [2018] 96 taxmann.com 303/257 Taxman 512/[2019] 416 ITR 458.” M/s RSWM Ltd. vs. DCIT 28. By respectfully following the ratio lai…

Rswm Ltd, Bhilwara vs. DCIT Central Circle-31, New Delhi

In the result, the Appeals filed by the assessee in ITA No

ITA 145/DEL/2021[2014-15]Status: DisposedITAT Delhi31 Jan 2024AY 2014-15

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar U.S.Ita Nos.145 & 146 /Del/2021 (Assessment Years 2014-15 & 2015-16)

Section 115JSection 14ASection 14A(2)Section 37(1)Section 40Section 69

…is Court notices that the Punjab and Haryana High Court took into account the previous binding ruling of the Supreme Court in CIT v. Ponni Sugars & Chemicals Ltd. [2008] 174 Taxman 87/306 ITR 392 and Sahney Steel & Press Works Ltd. v. CIT [1997] 94 Taxman 368/228 ITR 253. In these circumstances, the Court is of the opinion that the amount was received as capital stream and therefore, not taxable. A similar view was taken by the Calcutta High Court in CIT 6. v. Gloster Jute Mills Ltd. [2018] 96 taxmann.com 303/257 Taxman 512/[2019] 416 ITR 458.” M/s RSWM Ltd. vs. DCIT 28. By respectfully following the ratio lai…

DCIT Central Circle-31, New Delhi vs. Rswm Ltd, Kharigram

In the result, the Appeals filed by the assessee in ITA No

ITA 1929/DEL/2020[2015-16]Status: DisposedITAT Delhi31 Jan 2024AY 2015-16

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar U.S.Ita Nos.145 & 146 /Del/2021 (Assessment Years 2014-15 & 2015-16)

Section 115JSection 14ASection 14A(2)Section 37(1)Section 40Section 69

…is Court notices that the Punjab and Haryana High Court took into account the previous binding ruling of the Supreme Court in CIT v. Ponni Sugars & Chemicals Ltd. [2008] 174 Taxman 87/306 ITR 392 and Sahney Steel & Press Works Ltd. v. CIT [1997] 94 Taxman 368/228 ITR 253. In these circumstances, the Court is of the opinion that the amount was received as capital stream and therefore, not taxable. A similar view was taken by the Calcutta High Court in CIT 6. v. Gloster Jute Mills Ltd. [2018] 96 taxmann.com 303/257 Taxman 512/[2019] 416 ITR 458.” M/s RSWM Ltd. vs. DCIT 28. By respectfully following the ratio lai…

DCIT Central Circle-31, New Delhi vs. Rswm Ltd, Kharigram

In the result, the Appeals filed by the assessee in ITA No

ITA 1928/DEL/2020[2014-15]Status: DisposedITAT Delhi31 Jan 2024AY 2014-15

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar U.S.Ita Nos.145 & 146 /Del/2021 (Assessment Years 2014-15 & 2015-16)

Section 115JSection 14ASection 14A(2)Section 37(1)Section 40Section 69

…is Court notices that the Punjab and Haryana High Court took into account the previous binding ruling of the Supreme Court in CIT v. Ponni Sugars & Chemicals Ltd. [2008] 174 Taxman 87/306 ITR 392 and Sahney Steel & Press Works Ltd. v. CIT [1997] 94 Taxman 368/228 ITR 253. In these circumstances, the Court is of the opinion that the amount was received as capital stream and therefore, not taxable. A similar view was taken by the Calcutta High Court in CIT 6. v. Gloster Jute Mills Ltd. [2018] 96 taxmann.com 303/257 Taxman 512/[2019] 416 ITR 458.” M/s RSWM Ltd. vs. DCIT 28. By respectfully following the ratio lai…

Commissioner of Income Tax-IV vs. Mis Indo Rama Textiles Ltd

The appeals are disposed of in the aforesaid terms

ITA/395/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…not only the 1979 Scheme but also the 1983 Scheme, when compared with the scheme forged by the Andhra Pradesh State Government [which was the subject matter of the decision rendered by the Supreme Court in Sahney Steels and Press Works Ltd. v. CIT, (1997) 228 ITR 253 SC], the order passed was extracted in extenso. 8.4. For convenience, the relevant part of the said order passed by the Digitally Signed By:VIPIN KUMAR RAI Signing Date:29.01.2024 15:05:38 Signature Not Verified ITA 392/2014 & connected appeals Pag…

Commissioner of Income Tax-IV vs. Mis Indo Rama Synthetics Ltd

The appeals are disposed of in the aforesaid terms

ITA/396/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…not only the 1979 Scheme but also the 1983 Scheme, when compared with the scheme forged by the Andhra Pradesh State Government [which was the subject matter of the decision rendered by the Supreme Court in Sahney Steels and Press Works Ltd. v. CIT, (1997) 228 ITR 253 SC], the order passed was extracted in extenso. 8.4. For convenience, the relevant part of the said order passed by the Digitally Signed By:VIPIN KUMAR RAI Signing Date:29.01.2024 15:05:38 Signature Not Verified ITA 392/2014 & connected appeals Pag…

Commissioner of Income Tax-IV vs. Mis Indo Rama Textiles Ltd

The appeals are disposed of in the aforesaid terms

ITA/392/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…not only the 1979 Scheme but also the 1983 Scheme, when compared with the scheme forged by the Andhra Pradesh State Government [which was the subject matter of the decision rendered by the Supreme Court in Sahney Steels and Press Works Ltd. v. CIT, (1997) 228 ITR 253 SC], the order passed was extracted in extenso. 8.4. For convenience, the relevant part of the said order passed by the Digitally Signed By:VIPIN KUMAR RAI Signing Date:29.01.2024 15:05:38 Signature Not Verified ITA 392/2014 & connected appeals Pag…

Commissioner of Income Tax-IV vs. Mis Indo Rama Synthetics Ltd

The appeals are disposed of in the aforesaid terms

ITA/397/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…not only the 1979 Scheme but also the 1983 Scheme, when compared with the scheme forged by the Andhra Pradesh State Government [which was the subject matter of the decision rendered by the Supreme Court in Sahney Steels and Press Works Ltd. v. CIT, (1997) 228 ITR 253 SC], the order passed was extracted in extenso. 8.4. For convenience, the relevant part of the said order passed by the Digitally Signed By:VIPIN KUMAR RAI Signing Date:29.01.2024 15:05:38 Signature Not Verified ITA 392/2014 & connected appeals Pag…

Commissioner of Income Tax-IV vs. Mis Indo Rama Synthetics (I) Ltd

The appeals are disposed of in the aforesaid terms

ITA/394/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…not only the 1979 Scheme but also the 1983 Scheme, when compared with the scheme forged by the Andhra Pradesh State Government [which was the subject matter of the decision rendered by the Supreme Court in Sahney Steels and Press Works Ltd. v. CIT, (1997) 228 ITR 253 SC], the order passed was extracted in extenso. 8.4. For convenience, the relevant part of the said order passed by the Digitally Signed By:VIPIN KUMAR RAI Signing Date:29.01.2024 15:05:38 Signature Not Verified ITA 392/2014 & connected appeals Pag…

Cornmisstorrer of Income Tax-IV vs. Mis Indo Rama Synthetics Ltd

The appeals are disposed of in the aforesaid terms

ITA/398/2014HC Delhi23 Jan 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…not only the 1979 Scheme but also the 1983 Scheme, when compared with the scheme forged by the Andhra Pradesh State Government [which was the subject matter of the decision rendered by the Supreme Court in Sahney Steels and Press Works Ltd. v. CIT, (1997) 228 ITR 253 SC], the order passed was extracted in extenso. 8.4. For convenience, the relevant part of the said order passed by the Digitally Signed By:VIPIN KUMAR RAI Signing Date:29.01.2024 15:05:38 Signature Not Verified ITA 392/2014 & connected appeals Pag…

D.C.I.T., Circle-6(1), Kolkata vs. M/S Birla Corporation Ltd., Kolkata

In the result, the appeal of the revenue as well as cross-objection of the assessee are partly allowed

ITA 1964/KOL/2019[2015-16]Status: DisposedITAT Kolkata16 Jan 2024AY 2015-16

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.1964/Kol/2019 Assessment Year: 2015-16 Dcit, Circle-6(1), Kolkata…………….......................…...……………....Appellant Vs. M/S Birla Corporation Ltd…………...........…..........................…..…..... Respondent Birla Building, 9/1, R.N. Mukherjee Road, Kolkata – 700001. [Pan: Aabcb2075J] C.O. 39/Kol/2019 (A/O I.T.A. No.1964/Kol/2019) Assessment Year: 2015-16 M/S Birla Corporation Ltd…………...........….....................…..…..... Cross-Objector Birla Building, 9/1, R.N. Mukherjee Road, Kolkata – 700001. [Pan: Aabcb2075J] Vs Dcit, Circle-6(1), Kolkata…………….......................…...……………....Respondent Appearances By: Shri Abhijit Kundu, Cit-Dr, Advocate, Appeared On Behalf Of The Department. Shri J. P. Khaitan, Sr. Counsel, Appeared On Behalf Of The Assessee. Date Of Concluding The Hearing : October 18, 2023 Date Of Pronouncing The Order : January 16, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal By The Revenue & The Corresponding Cross Objections By The Assessee Have Been Preferred Against The Order Dated 30.05.2019 Of The Commissioner Of Income Tax (Appeals)-22, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). First, We Take Up Revenue’S Appeal Ita No.1964/Kol/2019. I.T.A. No.1964/Kol/2019 & C.O. 39/Kol/2019 M/S Birla Corporation Ltd

Section 115JSection 14ASection 250Section 80I

…ssee’s trade receipts and profits and was a revenue receipt. He sought to rely upon the decision of the hon’ble Supreme Court in the case of “Sahney Steel & Press Works Ltd. v. CIT”, I.T.A. No.1964/Kol/2019 & C.O. 39/Kol/2019 M/s Birla Corporation Ltd (1997) 228 ITR 253 (SC). On appeal, the Commissioner of Income Tax (Appeals) accepted the assessee’s claim following the decisions of the Tribunal in the assessee’s own case for the assessment years 2008-09 and 2009-10. 12. The ld. DR in this respect, however, has made the following submissions: The assessee-company set up a factory in the State of Andhra Pradesh,…

Commissioner of Income Tax, Kolkata-II, Kolkata vs. M/S. Birla Corporation Ltd

ITA/158/2010HC Calcutta18 Dec 2023

Bench: : The Hon’Ble Justice Surya Prakash Kesarwani

Section 4A

…ssessment year 2004-05 and Rs.23,51,09,072 for the assessment year 2005-06 received by the assessee a capital receipts, and not as revenue receipts, contrary to the decision of the Hon’ble Supreme Court in the case of Sahney Steel Works Ltd. V CIT (1997) 228 ITR 253?” 4. Thus, in the afore-noted income tax appeals the common question is involved as to whether amount exemption from trade tax on turnover of 3 sales of the UP Trade Tax Act, 1948, availed by the assessee, is a capital receipt as subsidy or a revenue receipt? Facts of the Case: 5. As stated by the learned counsel for both the parties…

Tata Chemicals Ltd, Mumbai vs. Addl Ciat 2(3), Mumbai

In the result, appeal filed by the assessee is partly allowed

ITA 120/MUM/2013[2008-09]Status: DisposedITAT Mumbai10 Nov 2023AY 2008-09

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 144C(5)Section 14ASection 43BSection 80

…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 & Press Works Ltd. & Ors. vs. CIT (1997) 142 CTR (SC) 261 : (1997) 228 ITR 253 (SC). 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 repaymen…