Shasun Chemicals and Drugs Ltd. v. CIT

388 ITR 1Supreme Court of India2016#3412 most cited

What is Shasun Chemicals and Drugs Ltd. v. CIT authority for?

Deductions or amortization of expenses allowed in initial years and accepted by the Revenue cannot be denied in subsequent years, especially when the method of accounting is consistent. Claims for deductions under Section 80IA, once allowed in an assessment framed under Section 143(3), cannot be subject to rectification under Section 154.

35

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2017 to 2026.

Also referred to as

Shasun Chemicals and Drugs Ltd v CIT · section 35D · amortization of expenses · section 80IA · section 143(3) · section 154 · consistency in accounting · deduction allowed

Also reported as

289 CTR 97

Sections most often in play

Section 143(3)Section 1512Section 250Section 271(1)(c)Section 35ABBSection 35DSection 37Section 37(1)
Read the full judgment

Issues it is cited on

section 2(d)section 80lacompensatory interestsection 35abbsection 80lsection 23asection 80ia(4)(iii)retention moneysection 145(1)section 72asection 35dsection 211

Judgments citing Shasun Chemicals and Drugs Ltd. v. CIT

Income Tax Officer(E) Ward- 2(4), New Delhi, Civic Centre New Delhi vs. Prakash Sewa Trust, Paschim Vihar

ITA 4305/DEL/2024[2016-17]Status: DisposedITAT Delhi07 Jan 2026AY 2016-17

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 11Section 12ASection 143(3)

…of "consistency" and "stare decisis". Refer hon'ble sc decisions in cases of Parsuram Pottery Works Co Ltd vs ITO 106 ITR 1; Radhasoami Satsang vs CIT 193 ITR 321; CIT vs Excel Industries Ltd 358 ITR 295 (three judge bench); Shasun Chemical & Drugs Lid vs CIT 388 ITR 1; Godrej & Boyce Manufacturing Company Ltd vs DCIT 394 ITR 449; PCIT vs Maruti Suzuki ltd 416 ITR 1). Nothing prevented revenue to hold in purchase year and later on that assessee trust has not bonafidely purchased held subject immovable property for "charitable" purposes of trust. Having missed though out, to take "impromptu" adverse decision in in…

Bharti Telemedia Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 624/DEL/2024[2021-22]Status: DisposedITAT Delhi12 Dec 2025AY 2021-22

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…sallowance is called for even on principles of consistency. Reliance in this regard is placed on the following cases: - Radhasoami Satsang v. CIT 193 ITR 321(SC) - CIT vs. Excel Industries (P) Limited: 358 ITR 295 (SC) - Shasun Chemicals & Drugs Ltd. vs. CIT: 388 ITR 1 (SC) - DIT (E) v. Apparel Export Promotion Council: 244 ITR 734 (Del) - CIT v. Neo Polypack (P) Ltd: 245 ITR 492 (Del.) - CIT v. Girish Mohan Ganeriwala: 260 ITR 417 (P&H) - CIT V. Dalmia Promoters Developers (P) Ltd: 200 CTR 426 (Del.) - Escorts Cardiac Diseases Hospital: 300 ITR 75 (Del) - CIT v. Rajasthan Breweries Limited.: ITA 889/2009 (Del.)-…

DCIT, Circle 4(2), New Delhi vs. M/S Bharti Telemedia Ltd, New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4966/DEL/2024[2020-21]Status: DisposedITAT Delhi12 Dec 2025AY 2020-21

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…sallowance is called for even on principles of consistency. Reliance in this regard is placed on the following cases: - Radhasoami Satsang v. CIT 193 ITR 321(SC) - CIT vs. Excel Industries (P) Limited: 358 ITR 295 (SC) - Shasun Chemicals & Drugs Ltd. vs. CIT: 388 ITR 1 (SC) - DIT (E) v. Apparel Export Promotion Council: 244 ITR 734 (Del) - CIT v. Neo Polypack (P) Ltd: 245 ITR 492 (Del.) - CIT v. Girish Mohan Ganeriwala: 260 ITR 417 (P&H) - CIT V. Dalmia Promoters Developers (P) Ltd: 200 CTR 426 (Del.) - Escorts Cardiac Diseases Hospital: 300 ITR 75 (Del) - CIT v. Rajasthan Breweries Limited.: ITA 889/2009 (Del.)-…

Bharti Telemedia Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4960/DEL/2024[2020-21]Status: DisposedITAT Delhi12 Dec 2025AY 2020-21

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…sallowance is called for even on principles of consistency. Reliance in this regard is placed on the following cases: - Radhasoami Satsang v. CIT 193 ITR 321(SC) - CIT vs. Excel Industries (P) Limited: 358 ITR 295 (SC) - Shasun Chemicals & Drugs Ltd. vs. CIT: 388 ITR 1 (SC) - DIT (E) v. Apparel Export Promotion Council: 244 ITR 734 (Del) - CIT v. Neo Polypack (P) Ltd: 245 ITR 492 (Del.) - CIT v. Girish Mohan Ganeriwala: 260 ITR 417 (P&H) - CIT V. Dalmia Promoters Developers (P) Ltd: 200 CTR 426 (Del.) - Escorts Cardiac Diseases Hospital: 300 ITR 75 (Del) - CIT v. Rajasthan Breweries Limited.: ITA 889/2009 (Del.)-…

DCIT, Circle 4(2), New Delhi vs. Ms Bharti Telemedia Ltd, New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4868/DEL/2024[2016-17]Status: DisposedITAT Delhi12 Dec 2025AY 2016-17

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…sallowance is called for even on principles of consistency. Reliance in this regard is placed on the following cases: - Radhasoami Satsang v. CIT 193 ITR 321(SC) - CIT vs. Excel Industries (P) Limited: 358 ITR 295 (SC) - Shasun Chemicals & Drugs Ltd. vs. CIT: 388 ITR 1 (SC) - DIT (E) v. Apparel Export Promotion Council: 244 ITR 734 (Del) - CIT v. Neo Polypack (P) Ltd: 245 ITR 492 (Del.) - CIT v. Girish Mohan Ganeriwala: 260 ITR 417 (P&H) - CIT V. Dalmia Promoters Developers (P) Ltd: 200 CTR 426 (Del.) - Escorts Cardiac Diseases Hospital: 300 ITR 75 (Del) - CIT v. Rajasthan Breweries Limited.: ITA 889/2009 (Del.)-…

DCIT-2(2)(1), Mumbai vs. Yes Bank Limited, Mumbai

In the result, appeals of the revenue for AY 2011-12 to 2013-14 are dismissed

ITA 5413/MUM/2025[2013-14]Status: DisposedITAT Mumbai11 Nov 2025AY 2013-14

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Appellant: Shri. Swapnil Choudhary Sr. AR
Section 143(3)Section 250Section 271(1)(c)Section 35DSection 40

…2nd and 3rd ground filed by the assessee. 7. From the above it is clear that the coordinate bench in the first year of claim of deduction u/s.35D has allowed the claim. We notice that the Hon'ble Supreme Court in the case of M/s Shashun Chemical & Drugs Ltd (388 ITR 1) has considered the issue of denying deduction u/s.35D in subsequent years while it was allowed in the first year and held that that deduction claimed u/s. 35D of the Act towards share issue expenses, which had been accepted in the initial years after verification of expansion of its industrial undertaking and allowed then the benefit could not be…

DCIT-2(2)(1), Mumbai vs. Yes Bank Limited, Mumbai

In the result, appeals of the revenue for AY 2011-12 to 2013-14 are dismissed

ITA 5412/MUM/2025[2012-13]Status: DisposedITAT Mumbai11 Nov 2025AY 2012-13

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Appellant: Shri. Swapnil Choudhary Sr. AR
Section 143(3)Section 250Section 271(1)(c)Section 35DSection 40

…2nd and 3rd ground filed by the assessee. 7. From the above it is clear that the coordinate bench in the first year of claim of deduction u/s.35D has allowed the claim. We notice that the Hon'ble Supreme Court in the case of M/s Shashun Chemical & Drugs Ltd (388 ITR 1) has considered the issue of denying deduction u/s.35D in subsequent years while it was allowed in the first year and held that that deduction claimed u/s. 35D of the Act towards share issue expenses, which had been accepted in the initial years after verification of expansion of its industrial undertaking and allowed then the benefit could not be…

DCIT-2(2)(1), Mumbai vs. Yes Bank Limited, Mumbai

In the result, appeals of the revenue for AY 2011-12 to 2013-14 are dismissed

ITA 5411/MUM/2025[2011-12]Status: DisposedITAT Mumbai11 Nov 2025AY 2011-12

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Appellant: Shri. Swapnil Choudhary Sr. AR
Section 143(3)Section 250Section 271(1)(c)Section 35DSection 40

…2nd and 3rd ground filed by the assessee. 7. From the above it is clear that the coordinate bench in the first year of claim of deduction u/s.35D has allowed the claim. We notice that the Hon'ble Supreme Court in the case of M/s Shashun Chemical & Drugs Ltd (388 ITR 1) has considered the issue of denying deduction u/s.35D in subsequent years while it was allowed in the first year and held that that deduction claimed u/s. 35D of the Act towards share issue expenses, which had been accepted in the initial years after verification of expansion of its industrial undertaking and allowed then the benefit could not be…

DCIT, Circle-7(1), Delhi vs. Dlf Limited, Delhi

In the result, appeal of the Revenue is dismissed

ITA 715/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Oct 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…projects being executed ITA No.713/Del/2024 & Others by the Appellant and will also be contrary to the mandate of section 145 of the Act. g) Support may be drawn from the decision of the apex Court in the case of Shasun Chemicals and Drugs Ltd. v. CIT [2016] 388 ITR 1 (SC) (refer Page 396-404 of Paper Book Vol-2)wherein it was held that deduction under section 35D of the Act available for amortization of expenses over a period of time, could not be denied in the later years once the Revenue had accepted, admitted and allowed the claim in the initial years including the year in which expenditure was incurred. h)…

DCIT, Circle-7(1), Delhi vs. Dlf Limited, Delhi

In the result, appeal of the Revenue is dismissed

ITA 714/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Oct 2025AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…projects being executed ITA No.713/Del/2024 & Others by the Appellant and will also be contrary to the mandate of section 145 of the Act. g) Support may be drawn from the decision of the apex Court in the case of Shasun Chemicals and Drugs Ltd. v. CIT [2016] 388 ITR 1 (SC) (refer Page 396-404 of Paper Book Vol-2)wherein it was held that deduction under section 35D of the Act available for amortization of expenses over a period of time, could not be denied in the later years once the Revenue had accepted, admitted and allowed the claim in the initial years including the year in which expenditure was incurred. h)…

DCIT, Circle-7(1), Delhi vs. Dlf Limited, Delhi

In the result, appeal of the Revenue is dismissed

ITA 713/DEL/2024[2019-20]Status: DisposedITAT Delhi30 Oct 2025AY 2019-20

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…projects being executed ITA No.713/Del/2024 & Others by the Appellant and will also be contrary to the mandate of section 145 of the Act. g) Support may be drawn from the decision of the apex Court in the case of Shasun Chemicals and Drugs Ltd. v. CIT [2016] 388 ITR 1 (SC) (refer Page 396-404 of Paper Book Vol-2)wherein it was held that deduction under section 35D of the Act available for amortization of expenses over a period of time, could not be denied in the later years once the Revenue had accepted, admitted and allowed the claim in the initial years including the year in which expenditure was incurred. h)…

Dlf Limited, Delhi vs. National Faceless Assessment Centre, Delhi

In the result, appeal of the Revenue is dismissed

ITA 677/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Oct 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…projects being executed ITA No.713/Del/2024 & Others by the Appellant and will also be contrary to the mandate of section 145 of the Act. g) Support may be drawn from the decision of the apex Court in the case of Shasun Chemicals and Drugs Ltd. v. CIT [2016] 388 ITR 1 (SC) (refer Page 396-404 of Paper Book Vol-2)wherein it was held that deduction under section 35D of the Act available for amortization of expenses over a period of time, could not be denied in the later years once the Revenue had accepted, admitted and allowed the claim in the initial years including the year in which expenditure was incurred. h)…

Dlf Limited, Delhi vs. National Faceless Assessment Centre, Delhi

In the result, appeal of the Revenue is dismissed

ITA 676/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Oct 2025AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…projects being executed ITA No.713/Del/2024 & Others by the Appellant and will also be contrary to the mandate of section 145 of the Act. g) Support may be drawn from the decision of the apex Court in the case of Shasun Chemicals and Drugs Ltd. v. CIT [2016] 388 ITR 1 (SC) (refer Page 396-404 of Paper Book Vol-2)wherein it was held that deduction under section 35D of the Act available for amortization of expenses over a period of time, could not be denied in the later years once the Revenue had accepted, admitted and allowed the claim in the initial years including the year in which expenditure was incurred. h)…

DCIT - CC -7(3), Mumbai vs. M/S A. M. Constructions, Mumbai

In the result, the appeal of the revenue bearing ITA No

ITA 3115/MUM/2019[2011-12]Status: DisposedITAT Mumbai04 Apr 2025AY 2011-12

Bench: Shri B.R. Baskaran () & Shri Anikesh Banerjee ()

For Appellant: Shri Rishabh MehtaFor Respondent: Dr. K.R. Subhash (CIT-DR.)
Section 132Section 250Section 68Section 69C

…r passed by the ITSC which had decided its view based on the peculiar facts and material with them. Further, the said decision has been impliedly overruled by the decision of the Hon'ble Bombay HC in the case of Vodafone India Services (P.) Ltd. v. CIT [2014] 388 ITR 1 (Bom.). The said view of the decision being overruled was again accepted by the Hon'ble Bombay HC in the case of Khubchandani Healthparks (P.) Ltd v. ITO [2016] 68 taxmann.com 91 (Bom). Accordingly, the decision relied upon by the AO in impugned order does not support the case of the AO. On the contrary, the assessee has relied upon plethora of jud…

DCIT-CC-7(3), Mumbai vs. M/S Lotus Buildspace LLP, Mumbai

In the result, the appeal of the revenue bearing ITA No

ITA 1485/MUM/2019[2014-15]Status: DisposedITAT Mumbai04 Apr 2025AY 2014-15

Bench: Shri B.R. Baskaran () & Shri Anikesh Banerjee ()

Section 132Section 250Section 68Section 69C

…r passed by the ITSC which had decided its view based on the peculiar facts and material with them. Further, the said decision has been impliedly overruled by the decision of the Hon'ble Bombay HC in the case of Vodafone India Services (P.) Ltd. v. CIT [2014] 388 ITR 1 (Bom.). The said view of the decision being overruled was again accepted by the Hon'ble Bombay HC in the case of Khubchandani Healthparks (P.) Ltd v. ITO [2016] 68 taxmann.com 91 (Bom). Accordingly, the decision relied upon by the AO in impugned order does not support the case of the AO. On the contrary, the assessee has relied upon plethora of jud…

Dy. CIT Special Range-1, Lucknow vs. M/S Indo Gulf Fertilizers & Chemicalscoeporation Ltd, Sultanpur

In the result, the appeal of the Revenue is accordingly dismissed

ITA 1539/LKW/1996[1990-91]Status: DisposedITAT Lucknow27 Nov 2024AY 1990-91

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 143(3)Section 256(1)Section 32ASection 35D

…e by this order of the Income Tax Appellate Tribunal. He also relied on the precedents in the case of given below: S.No. Particulars 1. Y. Manjula Reddy V. I.T.O. (Bangalore-Trib.) [2002] 140 taxmann.com 441 2. Shasun Chemicals & Drugs Ltd. vs. CIT-II [2016] 388 ITR 1 (SC) 3. Vatika Hotels (P) Ltd. v. ACIT [2023] 148 taxmann.com 204 (Delhi-Trib.) 4. CIT vs. Shree Synthetics Ltd. [1986] 162 ITR 819 (MP HC) 5. CIT vs. Multi Metals Ltd. [1991] 188 ITR 151 (Raj. (HC) 6. Scientific Engg. House (P) Ltd. vs. CIT [1985] 157 ITR 86 (SC) 7. CIT vs. Elecon Engineering Co. Ltd. [1974] 96 ITR 672 (Guj. HC) 8. CIT vs. Hindust…

M/S Punjab Small Industries and Exports Corporation Ltd., Chandigarh vs. DCIT/ACIT, Circle 2(1), Chandigarh

In the result, the appeal of the Assessee is partly allowed

ITA 555/CHANDI/2022[2018-19]Status: DisposedITAT Chandigarh27 Jun 2024AY 2018-19

Bench: Shri A.D. Jain & Dr Krinwant Sahayआयकर अपील सं./ Ita No. 555/Chd/2022 "नधा"रण वष" / Assessment Years : 2018-19 M/S Punjab Small Industries & Vs. The Dcit / Acit, Export Corporation Ltd., बनाम Circle 2(1), Udyog Bhawan, 3Rd To 6Th Floor, Chandigarh Sector 17-A, Chandigarh 160017 "थायी लेखा सं./Pan No: Aabcp1602M अपीलाथ"/ Appellant ""यथ"/ Repsondent ( Hybrid Hearing )

For Appellant: Sh. Vineet Krishan, AdvocateFor Respondent: Shri Mahesh Thakur, CIT DR
Section 139(1)Section 143(1)Section 250Section 43Section 43B

…y the Appellant as tax deductible in A.Y.2018-19 since the same is covered by the provisions of section 43B of the Act. As regards, reliance placed by the Appellant on the decision of Hon'ble Supreme Court in the case of Shasun Chemicals and Drugs Ltd vs CIT, 289 CTR 97(SC), I find that the facts of the case is distinguishable from the facts of the Appellant and therefore, findings of the said decision cannot be applied in the case of the Appellant. In view of the above discussion, I uphold the disallowance of Rs.76,75,100/- made by CPC u/s 43B of the Act. The ground is, therefore, dismissed.” 555 --Chd-2022 –…

Pr. Commissioner of Income Tax-1 vs. M/S Ansal Properties and Infrastructure Limited

ITA - 185 / 2023HC Delhi27 Mar 2023
Section 35DSection 35D(2)(c)Section 37

…4.1 However, having regard to the fact, that the necessary ingredients for laying a claim made under Section 35D of the Act were available on record, the Court after applying the judgment of the Supreme Court in Shasun Chemicals & Drugs Ltd. v. CIT (2016) 388 ITR 1 (SC) allowed the amortization claim 5. Mr Sanjay Kumar, senior standing counsel, who appears on behalf of the appellant/revenue, says that one of the aspects, that had to be deliberated upon, was whether shares issued to Qualified Institutional Buyers (QIBs) can be treated as “public subscription”. 6. We find, upon perusing the impugned ord…

Vatika Hotels Pvt. Ltd., New Delhi vs. ACIT Central Circle-8, New Delhi

ITA 7833/DEL/2019[2009-10]Status: DisposedITAT Delhi11 Nov 2022AY 2009-10

Bench: Shri N.K. Billaiya & Shri Kul Bharat

For Appellant: Shri C.S. Aggarwal, Sr. AdvFor Respondent: Shri Sanjai Kumar Yadav, Addl. CIT-DR
Section 57

…enied to the assessee. Strong reliance was placed on the decision of the Hon'ble Bombay High Court in the case of Paul Brothers 216 ITR 548, Sourashtra Cement and of Chemicals Industries Ltd 123 ITR 669 Gujarat High Court and Sassoon Chemicals and Drugs Ltd 388 ITR 1 [Supreme Court]. 28. Per contra the learned DR strongly supported the findings of the ld. CITA. 29. We have carefully perused the orders of the authorities below. It is true that the said claim was made during the assessment proceedings for Assessment Year 2007-08 wherein the Assessing Officer denied the claim of expenses but the CIT(A) allowed 1…

DCIT, Circle-3, Jaipur vs. M/S. Joy Syndicate & Enclave Pvt. Ltd., Jaipur

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

ITA 102/JPR/2020[2013-14]Status: DisposedITAT Jaipur26 Sept 2022AY 2013-14
For Appellant: Shri Rajeev Sogani ( C.A.)For Respondent: Ms Runi Pal (Addl. CIT)a fu/kZkfjrh dh vksj ls@
Section 14ASection 801Section 80I

…ility, when the benefit is allowed over a period, the same cannot be negated in the subsequent years by the Department. Reliance is placed on the following judicial precedents Supreme Court: Sr. No. Case law 1. Shasun Chemecals & Drugs Ltd. vs. CIT (2016) 388 ITR 1 (SC) High Court: Case law Sr. No. HC Rajasthan CIT vs Malborough Polychem (P.) Ltd. [2009] 309 1 ITR 43 (Raj) Cit vs Western Outdoor Interactive (P.) Bombay 2 Ltd. [2012] 349 ITR 309 (bom) Saurashtra Cement & Chemical Gujrat Industries Ltd vs CIT [1980] 123 ITR 669 (Guj.) 3. ITAT: Sr. Name of Case LAW No. Bench Delhi Resistoflex Dynamics (P.) Lt…

Shasun Chemicals and Drugs Ltd. v. CIT (388 ITR 1) — Cited in 35 Judgments | BharatTax