Sun Pharmaceuticals Ind. Ltd. v. DCIT

TORRENT ENERGY LIMITED (NOW MERGED WITH TORRENT POWER LIMITED),AHMEDABAD vs. THE ACIT CIRCLE 4(1)(1), AHMEDABAD

The appeal of the assessee is allowed for statistical purposes

Bench: Shri Siddhartha Nautiyal & Shri Makarand V.Mahadeokarasstt.Year : 2011-12 Torrent Energy Limited The Acit, Cir.4(1)(1) (Now Merged With Torrent Power Ltd) Ahmedabad. Samanvay, 600, Tapovan Ambawadi, Ahmedabad Pan : Aacct 8570 B (Applicant) (Responent) Assessee By : Shri Vartik Chokshi, Ar : Smt.Trupti Patel, Sr.Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 08/05/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

…o the file of the AO for the limited purpose of examining the allowability of lease premium of Rs.5,56,19,181/- as revenue expenditure in light of the judgment of the Hon’ble Gujarat High Court in the case of DCIT v. Sun Pharmaceutical Industries Ltd. [(2010) 227 CTR 206 (Guj)]. Thus, the scope of remand was confined only to re-examination on merits, and not to entertain jurisdictional objections with respect to admissibility of additional claim. The AR submitted that the assessee had already raised the said claim before the CIT(A) in the original round of proceedings, and the CIT(A) had duly admitted the claim o…

ACIT(E), CIRCLE-2, AHMEDABAD, AHMEDABAD vs. VADODARA URBAN DEVELOPMENT AUTHORITY, VADODARA

In the result, the appeal filed by the Revenue in ITA No

Bench: Shri Waseem Ahmed (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

…s. AUDA and M/s. GIDC are now confirmed by the Hon’ble Supreme Court in the batch of cases reported in CIT vs. AUDA (2022) 143 taxmann.com 278 (SC). 14. Further, the Hon'ble Jurisdictional High Court in the case of Sun Pharmaceuticals Ind. Ltd. V DCIT [2009] 227 CTR 206 (Guj) have held that expenditure on right to use leasehold land are allowable as revenue expenditure, which means such issue is also highly debatable and therefore no penalty under Section 271(1)(c) can be levied on it. 14.1. The Hon'ble Supreme Court in case of CIT v/s Reliance Petro Products Ltd. 322 ITR 158 has held as under: "We do not agree…

ACIT(E), CIRCLE-2, AHMEDABAD, AHMEDABAD vs. VADODARA URBAN DEVELOPMENT AUTHORITY , VADODARA

In the result, the appeal filed by the Revenue in ITA No

Bench: Shri Waseem Ahmed (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

…s. AUDA and M/s. GIDC are now confirmed by the Hon’ble Supreme Court in the batch of cases reported in CIT vs. AUDA (2022) 143 taxmann.com 278 (SC). 14. Further, the Hon'ble Jurisdictional High Court in the case of Sun Pharmaceuticals Ind. Ltd. V DCIT [2009] 227 CTR 206 (Guj) have held that expenditure on right to use leasehold land are allowable as revenue expenditure, which means such issue is also highly debatable and therefore no penalty under Section 271(1)(c) can be levied on it. 14.1. The Hon'ble Supreme Court in case of CIT v/s Reliance Petro Products Ltd. 322 ITR 158 has held as under: "We do not agree…

ACIT(E), CIRCLE-2, AHMEDABAD, AHMEDABAD vs. VADODARA URBAN DEVELOPMENT AUTHORITY , VADODARA

In the result, the appeal filed by the Revenue in ITA No

Bench: Shri Waseem Ahmed (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

…s. AUDA and M/s. GIDC are now confirmed by the Hon’ble Supreme Court in the batch of cases reported in CIT vs. AUDA (2022) 143 taxmann.com 278 (SC). 14. Further, the Hon'ble Jurisdictional High Court in the case of Sun Pharmaceuticals Ind. Ltd. V DCIT [2009] 227 CTR 206 (Guj) have held that expenditure on right to use leasehold land are allowable as revenue expenditure, which means such issue is also highly debatable and therefore no penalty under Section 271(1)(c) can be levied on it. 14.1. The Hon'ble Supreme Court in case of CIT v/s Reliance Petro Products Ltd. 322 ITR 158 has held as under: "We do not agree…

THE ACIT(E),CIRCLE-2 , AHMEDABAD vs. VADODARA URBAN DEVELOPMENT AUTHORITY, VADODARA

In the result, the appeal filed by the Revenue in ITA No

Bench: Shri Waseem Ahmed (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

…s. AUDA and M/s. GIDC are now confirmed by the Hon’ble Supreme Court in the batch of cases reported in CIT vs. AUDA (2022) 143 taxmann.com 278 (SC). 14. Further, the Hon'ble Jurisdictional High Court in the case of Sun Pharmaceuticals Ind. Ltd. V DCIT [2009] 227 CTR 206 (Guj) have held that expenditure on right to use leasehold land are allowable as revenue expenditure, which means such issue is also highly debatable and therefore no penalty under Section 271(1)(c) can be levied on it. 14.1. The Hon'ble Supreme Court in case of CIT v/s Reliance Petro Products Ltd. 322 ITR 158 has held as under: "We do not agree…

TORRENT POWER LTD.,,AHMEDABAD vs. THE ACIT.,RANGE-8,, AHMEDABAD

In the result cross objection filed by the assessee is partly allowed for statistical purposes

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

…nd circumstances of the appellant's case, the impugned order is void and deserves to be cancelled, inter alia, for the reason that it contains conclusions contrary to the decision of the jurisdictional High Court in DCIT v. Sun Pharmaceutical Industries Ltd. (227 CTR 206)." 1.2 The learned CIT(A) ought also to have considered that, as pointed out at para 2.2 and 2.3 of the very Statement of Facts accompanying the appellant's appeal before him, in truth and substance, the learned Assessing Officer had failed to carry out the directions of the Hon'ble ITAT in the matter of passing the assessment order impugned befo…

TORRENT ENERGY LTD.,(NEW MERGED WITH TORRENT POWER LTD.),AHMEDABAD vs. DCIT CIRCLE 4(1)(2), AHMEDABAD

In the result, appeal of the assessee is partly allowed for statistical purpose

Bench: Shri Rajpal Yadav & Shri Amarjit Singhआयकर अपील सं./ Ita No.2035/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-13

…led to the deduction of one- time premium paid on such lease land as revenue expenditure. In this connection, the assessee placed his reliance on the judgment of Hon’ble Gujarat High Court in the case of DCIT Vs. Sun Pharmaceuticals industries Ltd reported in 227 CTR 206. 8.4. However, the Ld.CIT (A) rejected the claim of the assessee on account of depreciation in respect of the premium paid on such lease land on the ground that in the group company of the assessee namely torrent Power Ltd in ITA number 3133 & 3331/AHD/2008 vide 6 order dated 21-1-2011 the ITAT has rejected the identical claim. 8.5. Similarly,…

TORRENT ENERGY LTD.,,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-8(1),, AHMEDABAD

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No. 1562/Ahd/2015 ("नधा"रण वष"/Assessment Year : 2011-12 ) बनाम/ Torrent Energy Ltd. The Ito Torrent House Ward-8(1) Vs. Nr.Dinesh Hall Ahmedabad Ashram Road, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacct 8570 B (अपीलाथ"/Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant By : Shri S.N. Soparkar & Shri Parikh Shah, Ar ""यथ" क" ओर से/Respondent By: Shri G.C. Daxini, Sr.Dr सुनवाई क" तार"ख/ Date Of Hearing 28/01/2019 घोषणा क" तार"ख /Date Of Pronouncement 19/03/2019 आदेश / O R D E R Per Waseem Ahmed: The Captioned Appeal Has Been Filed At The Instance Of The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals)–8, Ahmedabad [Cit(A) In Short] Vide Appeal No.Cit(A)-Xiv/516/13-14 Dated 12.03.2015 Arising In The Assessment Order Passed Under S.143(3) Of The Income Tax Act, 1961(Here-In-After Referred To As "The Act") Dated 21/02/2014 Relevant To Assessment Year (Ay) 2011-12. 2. The Assessee Has Raised The Following Grounds Of Appeal: 1. In Law & In The Facts & Circumstances Of The Appellant'S Case, The Learned Cit(A) Has Grossly Erred In Dismissing Ground No. 1 Of The Appellant'S Appeal Before Him Challenging The Very Validity Of The Assessment Order Torrent Energy Ltd. Vs. Ito Asst.Year - 2011-12 Impugned Before Him, On The Ground That It Was General In Nature & Did Not Require Adjudication By Him.

…ternative claim for deduction for the full amount of initial payment for the leasehold rights in question as revenue expenditure, on the ground that the facts of the appellant's case were different from the facts in DCIT v. Sun Pharmaceutical Industries Ltd. (227 CTR 206) without considering the following VITAL facts of the appellant's case: (a) That the appellant's facts, far from being different from the facts of the case before the jurisdictional Gujarat High Court as erroneously concluded by him, were not only similar but in fact better inasmuch as in the appellant's case, the annual lease rental was just Ru…

THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1), AHMEDABAD vs. M/S. ADANI PETRONET( DAHEJ) PVT. LTD.,, AHMEDABAD

In the result, this ground of appeal is dismissed

Bench: Shri Pramod Kumar & Shri Mahavir Prasad)

…of lease deed and contended that assessee is entitled for depreciation/amortization. On the other hand, Assessing Officer held that same is not allowable. In similar circumstances, Hon’ble Gujarat High Court in the matter of Sun Pharmaceuticals Ltd. vs. DCIT 227 CTR 206 has held that premium paid by assessee for land taken on lease as revenue expenditure in the year in which such expenditure was incurred. And in the case of General Motors (India) Pvt. Ltd. vs. DCIT, Co-ordinate Bench has held that such expenditure are allowable and on account of aforesaid binding decision, we hold that ld. CIT(A) has rightly gra…