Solid Containers Ltd. v. Deputy Commissioner of Income Tax

308 ITR 407Reported decision#8012 most cited
14

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2026.

Sections most often in play

Section 115JBSection 14ASection 41(1)Section 80IASection 254 (1)Section 254(1)Section 80A(6)Section 92F

Issues it is cited on

waiver of loansection 43(1)deduction under section 80iabenchmarking analysissection 41(1)section 92bsection 41eligible businesssection 144c(1)section 80iasection 80iassociated enterprises

Judgments citing Solid Containers Ltd. v. Deputy Commissioner of Income Tax

DY. COMMISSIONER OF INCOME TAX 5(2)(1), MUMBAI, MUMBAI vs. JSW STEEL COATED PRODUCTS LIMITED, MUMBAI

In the result, appeal of the

ITA 5143/MUM/2024[2016]Status: DisposedITAT Mumbai30 Jan 2026

Bench: Shri Pawan Singh & Shri Girish Agrawal

Section 254Section 80Section 801ASection 80A(6)

…o connection with waiver of the capital loans in question and hence would not attract section 41(1). By way of additional grounds the Ld. D.R. has sought to contend that in view of the decision of Hon'ble Bombay High Court in the case of Solid Containers Ltd. 308 ITR 407 the waiver of a loan is to be reckoned as in the nature of trading liabilities and therefore, it is taxable under section 41(1). As discussed in detail in the earlier part of the order, here it is not the case of the Assessing Officer that the principal amount of loan taken by the assessee was for any trading account, albeit it was for the purcha…

DCIT-5(2)(1),MUMBAI, AAYAKAR BHAVAN vs. JSW STEEL COATED PRODUCTS LIMITED, MUMBAI

In the result, appeal of the

ITA 5142/MUM/2024[2015-16]Status: DisposedITAT Mumbai30 Jan 2026AY 2015-16

Bench: Shri Pawan Singh & Shri Girish Agrawal

Section 254Section 80Section 801ASection 80A(6)

…o connection with waiver of the capital loans in question and hence would not attract section 41(1). By way of additional grounds the Ld. D.R. has sought to contend that in view of the decision of Hon'ble Bombay High Court in the case of Solid Containers Ltd. 308 ITR 407 the waiver of a loan is to be reckoned as in the nature of trading liabilities and therefore, it is taxable under section 41(1). As discussed in detail in the earlier part of the order, here it is not the case of the Assessing Officer that the principal amount of loan taken by the assessee was for any trading account, albeit it was for the purcha…

JSW STEELS LTD,MUMBAI vs. DCIT CC 8(3), MUMBAI

In the result, the appeal by the assessee is allowed for statistical purposes

ITA 2116/MUM/2017[2012-13]Status: DisposedITAT Mumbai04 May 2023AY 2012-13

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri Rishabh Shah a/wFor Respondent: Dr. Yogesh Kumar
Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144C(1)Section 144C(13)Section 144C(5)Section 14ASection 801ASection 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.2116/Mum./2017 (Assessment Year : 2012–13) M/s. JSW Steel Ltd. JSW Centre, Bandra Kurla Complex ……………. Appellant Bandra (East), Mumbai 400 051 PAN – AAACJ4323N v/s Dy. Commissioner of Income Tax …………….Respondent Central Circle–8(3), Mumbai Assessee by : Shri Rishabh Shah a/w Shri Gaurav Kabra Revenue by : Dr. Yogesh Kumar Date of Hearing – 29/03/2023 Date of Order – 04/05/2023 O R D E R PER SANDEEP SINGH KARHAIL, J.M. The present appeal has filed by the…

DCIT, CHENNAI vs. COOPER STANDARD AUTOMOTIVE INDIA P LTD., CHENGALPUT

In the result, the appeal filed by the Revenue is dismissed

ITA 794/CHNY/2016[2005-06]Status: DisposedITAT Chennai10 Aug 2022AY 2005-06

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.794/Chny/2016 िनधा"रण वष"/Assessment Year: 2005-06 The Deputy Commissioner Of Vs. M/S. Cooper Standard Automotive Income Tax, India P. Ltd., Plot No. 3-A, Ford Corporate Circle 1(2), Supplier Park, Kilkaranai Village, Chennai 600 034. Melrosapuram Post Via Singaperumal Koil, Chengalpet 603 204. [Pan:Aabcc3665P] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Varuvooru Sreedhar, Addl. Cit ""थ" की ओर से/Respondent By : Shri R. Meenakshisundaram, Advocate सुनवाई की तारीख/ Date Of Hearing : 08.06.2022 घोषणा की तारीख /Date Of Pronouncement : 10.08.2022 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Revenue Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 1, Chennai, Dated 05.01.2016 Relevant To The Assessment Year 2005-06. The Only Effective Ground Raised In The Appeal Of The Revenue Is As To Whether The Waiver Of Loan Amount Taken For Business Purposes Is Assessable As Business Income Under Section 28(Iv) R.W.S. 41(1) Of The Income Tax Act, 1961 [“Act” In Short] Or Not.

For Appellant: Shri Varuvooru Sreedhar, Addl. CITFor Respondent: Shri R. Meenakshisundaram, Advocate
Section 143(1)Section 147Section 148Section 28

…आयकर अपीलीय अिधकरण, ’बी’ "ायपीठ, चे"ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI "ी वी दुगा" राव "ाियक सद" एवं "ी जी. मंजुनाथा, लेखा सद" के सम" Before Shri V. Durga Rao, Judicial Member & Shri G. Manjunatha, Accountant Member आयकर अपील सं./I.T.A. No.794/Chny/2016 िनधा"रण वष"/Assessment Year: 2005-06 The Deputy Commissioner of Vs. M/s. Cooper Standard Automotive Income Tax, India P. Ltd., Plot No. 3-A, Ford Corporate Circle 1(2), Supplier Park, Kilkaranai Village, Chennai 600 034. Melrosapuram Post Via Singaperumal Koil, Chengalpet 603 204. [PAN:AABCC3665P] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ…

METAL TUBE AND ROLLING MILLS,MUMBAI vs. ITO WD 24(2)(5), MUMBAI

In the result, appeal filed by the assessee is allowed

ITA 845/MUM/2017[2007-08]Status: DisposedITAT Mumbai29 Apr 2022AY 2007-08

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Blemetal Tubes & Rolling Mills V. Income Tax Officer – 24(2)(5) 1St Floor, Metal Tube & Rolling Mills Mumbai Marol Maroshi Road, Marol Village Andheri (E), Mumbai – 400059 Pan: Aaefm9353N (Appellant) (Respondent) Assessee By : Shri Deepak Tralshawala & Shri D.B. Shah Department By : Shri T. Shankar

For Appellant: Shri Deepak Tralshawala &For Respondent: Shri T. Shankar
Section 143(1)Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, HON'BLE JUDICIAL MEMBER Metal Tubes & Rolling Mills v. Income Tax Officer – 24(2)(5) 1st Floor, Metal Tube & Rolling Mills Mumbai Marol Maroshi Road, Marol Village Andheri (E), Mumbai – 400059 PAN: AAEFM9353N (Appellant) (Respondent) Assessee by : Shri Deepak Tralshawala & Shri D.B. Shah Department by : Shri T. Shankar Date of Hearing : 08.02.2022 Date of Pronouncement : 29.04.2022 O R D E R PER S. RIFAUR RAHMAN (AM) 1. This appeal is filed by the assessee against order of the…

PAWAN KUMAR BANSAL,HISAR vs. ITO, WARD- 5, HISAR

In the result, captioned appeals are allowed

ITA 2322/DEL/2019[2015-16]Status: DisposedITAT Delhi02 Aug 2019AY 2015-16

Bench: Shri N.K. Billaiya & Shri Suchitra Kamble[Assessment Year: 2015-16]

Section 28

…for the revenue contends that the decision in the matter of Mahindra and Mahindra Limited (supra) would not be applicable in view of the subsequent decision of this Court in the matter of Solid Containers Ltd. v. Deputy Commissioner of Income Tax reported in 308 ITR 407. In the above case, this Court has distinguished the decision rendered in the matter of Mahindra and Mahindra Limited (supra) and held that waiver of loan taken for trading activity would become the assessee's income and be subject to tax. Alternatively, Mr. Gupta submits that the loan amount written off would be taxable under Section 28(iv) of t…

SUNIL KUMAR BANSAL,HISAR vs. DCIT, CIRCLE HISAR, HISAR

In the result, captioned appeals are allowed

ITA 2321/DEL/2019[2015-16]Status: DisposedITAT Delhi02 Aug 2019AY 2015-16

Bench: Shri N.K. Billaiya & Shri Suchitra Kamble[Assessment Year: 2015-16]

Section 28

…for the revenue contends that the decision in the matter of Mahindra and Mahindra Limited (supra) would not be applicable in view of the subsequent decision of this Court in the matter of Solid Containers Ltd. v. Deputy Commissioner of Income Tax reported in 308 ITR 407. In the above case, this Court has distinguished the decision rendered in the matter of Mahindra and Mahindra Limited (supra) and held that waiver of loan taken for trading activity would become the assessee's income and be subject to tax. Alternatively, Mr. Gupta submits that the loan amount written off would be taxable under Section 28(iv) of t…

ANIL KUMAR BANSAL,HISAR vs. ITO, WARD- 1, HISAR

In the result, captioned appeals are allowed

ITA 2320/DEL/2019[2015-16]Status: DisposedITAT Delhi02 Aug 2019AY 2015-16

Bench: Shri N.K. Billaiya & Shri Suchitra Kamble[Assessment Year: 2015-16]

Section 28

…for the revenue contends that the decision in the matter of Mahindra and Mahindra Limited (supra) would not be applicable in view of the subsequent decision of this Court in the matter of Solid Containers Ltd. v. Deputy Commissioner of Income Tax reported in 308 ITR 407. In the above case, this Court has distinguished the decision rendered in the matter of Mahindra and Mahindra Limited (supra) and held that waiver of loan taken for trading activity would become the assessee's income and be subject to tax. Alternatively, Mr. Gupta submits that the loan amount written off would be taxable under Section 28(iv) of t…

THE ITO, CORPORATE WD-2(4), KOCHI vs. M/S.TEAM FRONT LINE LTD, KOCHI

In the result, this appeal filed by the revenue is treated to be allowed

ITA 502/COCH/2018[2015-16]Status: DisposedITAT Cochin22 Mar 2019AY 2015-16

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…t upon waiver the amount of loan was retained in the business by the assessee and therefore constitutes taxable income of the assessee company. 5. The CIT(A) ought to have followed the decision of the Bombay High Court in the case of Solid Containers vs CIT (308 ITR 407) wherein it was held that the amount which initially did not fall within the scope of the provisions rendering it liable to tax, subsequently upon waiver have become the assessee's income being part of the trading of the assessee. 3. The facts of the case are that the assessee-company was started as a private limited Company on 13.6.1996 and co…

ITO 9(2)(3), MUMBAI vs. SURESH HENRY THOMAS, MUMBAI

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

ITA 4457/MUM/2016[2011-12]Status: DisposedITAT Mumbai02 May 2018AY 2011-12

Bench: S/Shri B.R.Baskaran (Am) & Amarjit Singh (Jm)

…) has deleted the addition without examining the nature of utilization of loan of ` 65.51 lakhs taken by the assessee in earlier years. Learned DR, by placing reliance on the decision rendered by Hon'ble Bombay High Court in the case of Solid Containers Ltd. (308 ITR 407) and decision rendered by Hon'ble Supreme Court in the case of T.V. Sundaram Iyengar & Sons Ltd. (222 ITR 344), submitted that loan so taken by the assessee would acquire character of trading receipt, if it has been utilized for working capital purposes. 5. The Ld A.R, on the contrary, submitted that the unsecured loans were not used for working…

MODERN TERRY TOWELS LTD,MUMBAI vs. ASST CIT CIR 6(3), MUMBAI

In the result, the appeal filed by the assessee for AY 2008-09 is treated as partly allowed and the appeal filed for AY 2009-10 is treated as allowed

ITA 6338/MUM/2014[2008-09]Status: DisposedITAT Mumbai22 Mar 2017AY 2008-09

Bench: Shri B.R. Baskaran (Am)& Shri Ravish Sood (Jm)

Section 28Section 41(1)Section 43(1)

…financial institution as income of the assessee u/s 41(1) and sec. 28(iv) of the Act. The Ld A.R fairly conceded that this issue has been decided against the assessee by the decision rendered by Hon’ble Bombay High Court in the case of Solid Containers Ltd (308 ITR 407). Accordingly we dismiss this ground of the assessee. 6. The last issue contested by the assessee in AY 2008-09 relates to the disallowance of depreciation on the capital portion of loan waived by the financial institution. The AO took the view that the capital portion of loan waived by the financial institution will go to reduce the cost of ass…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “J”, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER Assessment Year: 2004-05 M/s. JSW Steel Limited, Assistant Commissioner (formerly known as Jindal of Income Tax, Vijaynagar Steel Limited) Circle 11(5), Vs. Jindal Mansion, 5A, Bangalore Dr. G. Deshmukh Marg, Mumbai – 400 026 PAN: AAACJ4323N (Appellant) (Respondent) Assessment Year: 2004-05 Assistant Commissioner M/s. JSW Steel Limited, of Income Tax, (formerly known as Circle-11(5), Jindal Vijaynagar Steel No.14/3, 5th Floor, Vs. Limited) Nrupathunga Road, Jindal…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “J”, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER Assessment Year: 2004-05 M/s. JSW Steel Limited, Assistant Commissioner (formerly known as Jindal of Income Tax, Vijaynagar Steel Limited) Circle 11(5), Vs. Jindal Mansion, 5A, Bangalore Dr. G. Deshmukh Marg, Mumbai – 400 026 PAN: AAACJ4323N (Appellant) (Respondent) Assessment Year: 2004-05 Assistant Commissioner M/s. JSW Steel Limited, of Income Tax, (formerly known as Circle-11(5), Jindal Vijaynagar Steel No.14/3, 5th Floor, Vs. Limited) Nrupathunga Road, Jindal…

SMD TRAVEL CORPORATION,MUMBAI vs. ITO 18(3)(4), MUMBAI

ITA 3026/MUM/2013[2007-08]Status: DisposedITAT Mumbai10 Aug 2016AY 2007-08
For Appellant: Shri Mukesh JotwaniFor Respondent: Shri R.K. Sahu -AR
Section 143Section 254(1)Section 41Section 41(1)

…rent treatments to receivables and the payables,that it had written off huge amount as bad debts and had refused to pay taxes for the amounts receivable.He referred to the cases of T.V. Sundaram Iyengar & Sons Ltd. (222ITR344); M/s. Solid Containers Ltd. (308 ITR 407). In the rejoinder the AR stated that allowance of bad debts was not linked with the provisions of section 41(1) of the Act, that both were applicable in different situations, that there was no provision of netting of bad debts and creditors. 6.We have heard the rival submissions and perused the available material. We find that while deciding…