Travencore Rubber & Tea Co. Ltd. v. CIT

325 ITR 422Supreme Court of India2010#1577 most cited

What is Travencore Rubber & Tea Co. Ltd. v. CIT authority for?

Compensation received for the extinction of a source of income, a profit-earning apparatus, or capital assets, or due to a breach of contract, constitutes a capital receipt not liable to tax. The determination depends on the specific facts of each case.

72

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2009 to 2026.

Also referred to as

Travencore Rubber & Tea Co. Ltd. v. CIT · CIT v. Saurashtra Cement Ltd. · 325 ITR 422 · Supreme Court · capital receipt · revenue receipt · compensation · extinction of source of income · profit earning apparatus · breach of contract · Section 2(14) · Section 2(24)

Sections most often in play

Section 143(3)Section 143(1)Section 106Section 142(1)Section 143(2)Section 17Section 2(14)Section 2(24)

Issues it is cited on

liable to taxsection 56salaryscrutiny assessmentincome from other sourcestransfercompanyindiabusinesspersonsection 143section 14

Judgments citing Travencore Rubber & Tea Co. Ltd. v. CIT

ARCHNA CHADHA,NEW DELHI vs. ASSISTANT COMMISSIONER OF INCOME TAX - 52(1), NEW DELHI

ITA 2841/DEL/2023[2016-17]Status: DisposedITAT Delhi16 Jan 2026AY 2016-17

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharmaarchna Chadha Vs. Acit, Circle 52(1) Office No. 8, First Floor, Civic Centre, Scindia House, Cannaught Minto Road Place, Delhi – 110001 New Delhi - 110002 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aaipm7190F Appellant .. Respondent

For Appellant: Sh. Guarav Singhal, AdvFor Respondent: Sh. Ajay Kumar Arora, Sr. DR
Section 143(3)

…enant/ Indian Overseas Bank. Thus, reliance placed by Mr. Jagia on Girish Bansal (supra), which refers to Cadell Weaving Mill Co. Pvt. Ltd. (supra), is misplaced.” 13. Then Hon’ble High Court placing reliance on the decision in Saurashtra Cement Limited case 325 ITR 422 (SC) has observed that the P a g e | 13 Archna Chadha (AY: 2016-17) issue whether a receipt/income is a capital receipt or a revenue receipt must be ultimately defend on the facts of a particular case, and the authorities bearing on the question are valuable only as indicating the matters that has to be take into account in reaching to a conclu…

MILAN SAINI,GURGAON vs. DCIT, CIRCLE- 2 , GURGAON

In the result, the appeal of the assessee is allowed

ITA 2335/DEL/2018[2014-15]Status: DisposedITAT Delhi28 Oct 2025AY 2014-15

Bench: Shri M Balaganesh & Shri Vimal Kumarassessment Year: 2014-15 Milan Saini, Vs. Dcit, 37, Centrum Plaza, Dlf Golf Circle-2. Course Road, Sector 53, Gurgaon Gurgaon (Haryana) Pan: Braps1366P (Appellant) (Respondent)

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 17Section 250(6)Section 28

…t is held that consideration received in lieu of extinction of a source of income or a profit earning apparatus is a capital receipt not liable to tax: 13 Kettlewell Bullen and Co. Ltd. v. CIT: (1964) 53 ITR 261 (SC) (ii) CIT v. Saurashtra Cement Ltd: (2010) 325 ITR 422 (SC) (iii) CIT vs. Bombay Burmah Trading Corporation: (1986) 161 ITR 386 (SC) (iv) Oberoi Hotel Pvt. Ltd. v. CIT: 236 ITR 903 (SC) (v) CIT v. Parle Soft Drinks (Bangalore) (P.) Ltd.: [2018] 400 ITR 108 (Bom)- SLP filed by the Revenue against the aforesaid decision was dismissed by the Hon'ble Supreme Court in CIT v. Parle Soft Drinks (Bangalore (…

PRINCIPAL COMMISSIONER OF INCOME TAX 1 KOLKATA vs. M/S ITC LTD

ITAT/89/2025HC Calcutta21 Jul 2025

Bench: The Learned Tribunal – One By The Assessee & The Other By The Revenue Which Have Been Disposed Of By A Common Order, Impugned In This Appeal. 2. The Revenue Has Raised The Following Substantial Questions Of Law For Consideration :

For Appellant: Mr. Prithu Dudhoria, AdvocateFor Respondent: Mr. J.P. Khaitan, Senior Advocate
Section 14ASection 260ASection 37(1)Section 40a

…s) [CIT(A)] agreed with the Assessing Officer. When the matter travelled to the Tribunal, the Tribunal, in our view, rightly took note of the decision of the Hon’ble Supreme Court in Commissioner of Income Tax Vs. Saurashtra Cement Ltd., reported at [2010] 325 ITR 422 (SC) wherein the Hon’ble Supreme Court held as follows : 10 “We have considered the matter in the light of the aforenoted broad principle. It is clear from clause No. 6 of the agreement dated September 1, 1967, extracted above, that the liquidated damages were to be calculated at 0.5 per cent. of the price of the respective machinery…

ESSEL MINING & INDUSTRIES LIMITED,KOLKATA vs. D.C.I.T CIR - 5,KOLKATA, KOLKATA

In the result, the appeal of the assessee is allowed

ITA 786/KOL/2013[2008-2009]Status: DisposedITAT Kolkata24 Apr 2025AY 2008-2009

Bench: Shri Rajesh Kumar & Pradip Kumar Choubeyआयकर अपील सं/Ita No.786/Kol/2013 (नििाारण वर्ा / Assessment Years :2008-2009) Essel Mining & Industries Vs Addl. Cit, Range-5, Kolkata Limited, 18Th Floor, 10, Camac Street,Kolkata-17 Pan No. :Aaace6607L (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. नििााररतीकीओरसे /Assessee By : Shri Akkaldudhwewala, Fca राजस्वकीओरसे /Revenue By : Shri Subhendu Datta, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 03/04/2025 घोषणा की तारीख/Date Of Pronouncement : 24/04/2025 आदेश / O R D E R Per Rajesh Kumar, Am: This Is The Second Round Of Litigation Before The Tribunal After The Hon'Ble Calcutta High Court Vide Order Dated 17.11.2021 Passed In The Appeal Of The Assessee Filed U/S 260A Of The Income-Tax Act, 1961 (The Act) Ia No. Ga/1/2017 (Old No. Ga/247/2017) In Ita 5/274/2017 Referred The Issue Back To The Tribunal For Fresh Consideration To Decide The Legal Issue In The Light Of Decision By Hon'Ble Supreme Court In The Case Of Cit Vs. Saurashtra Cements Ltd. (2010) 325 Itr 422 (Sc) After Affording Both The Sides A Fair & Adequate Opportunity Of Hearing. The Hon'Ble High Court Directed The Tribunal To Decide Whether Compensation Received By The Assessee From Suzlon Energy Limited On Account Of Failure Of Performance Guarantee Parameters Of The Capital Assets Namely Wind Turbine Generators, Was On Revenue Account For Reducing Loss Incurred In The Course Of Business Or A Capital Receipt Outside The Purview Of Taxation.

For Appellant: Shri AkkalDudhwewala, FCAFor Respondent: Shri Subhendu Datta, CIT-DR
Section 260ASection 43

…the Act) IA No. GA/1/2017 (Old No. GA/247/2017) in ITA 5/274/2017 referred the issue back to the Tribunal for fresh consideration to decide the legal issue in the light of decision by Hon'ble Supreme Court in the case of CIT vs. Saurashtra Cements Ltd. (2010) 325 ITR 422 (SC) after affording both the sides a fair and adequate opportunity of hearing. The Hon'ble High Court directed the Tribunal to decide whether compensation received by the assessee from Suzlon Energy Limited on account of failure of performance guarantee parameters of the capital assets namely Wind Turbine Generators, was on revenue account for r…

VIJAY KUMAR BHAN,THANE vs. ITO-CIR-42(3)(1), MUMBAI

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

ITA 1799/MUM/2024[2017-18]Status: DisposedITAT Mumbai24 Sept 2024AY 2017-18

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm Vijay Kumar Bhan Ito Circle 42(3)(1) Flat No. 602, Surbharlokpuram, Kautilya Bhavan, Bkc, Bandra E, Hiranandani Meadows, Thane (W), Vs. Mumbai-400 051 Thane – 400 610

For Appellant: Shri Dinesh R ShahFor Respondent: Shri Ashish Kumar
Section 143(1)Section 2Section 250Section 56(2)(x)

…ensation received by the assessee is a ‘capital receipt’ or ‘revenue receipt’. The ld. AR for the assessee had relied on the following decisions: • Smt. Abha Bansal vs. PCIT(CG) Gurugum[2021] 132 taxmann.com 231 (Delhi) • CIT vs. Saurashtra Cement Ltd. [2010] 325 ITR 422 (SC) • Mumbai vs. Parle Soft Drinks Bangalore (P) Ltd. [2018] 258 Taxman 61 (SC) 11. The above said decisions have reiterated that the compensation received out of breach of contract would amount to a ‘capital receipt’ and not a ‘revenue receipt’ in the 4 Vijay Kumar Bhan vs. ITO hands of the assessee, either for frustration of the contract or fo…

ACIT, CIRCLE- 27(1), NEW DELHI vs. U K PAINTS INDIA PVT. LTD., NEW DELHI

In the result, appeal of Revenue for A

ITA 764/DEL/2018[2014-15]Status: DisposedITAT Delhi16 Jun 2023AY 2014-15

Bench: Sh. Anil Chaturvedi & Sh. Anubhav Sharmaacit Vs. M/S. U. K. Paints (India) Pvt. Central Circle – 10 Ltd., 19, Dda Commercial New Delhi Complex, Kailash Colony Extn., Zamrudpur, New Delhi - 48 Pan No. Aaacu 0057 C (Appellant) (Respondent) & Co No. 244/Del/2013 (Arising Out Of Ita No.4115/Del/2013) (For Assessment Year : 2008-09) M/S. U. K. Paints (India) Vs. Acit Pvt. Ltd., 19, Dda Central Circle – 10 Commercial Complex, New Delhi Kailash Colony Extn., Zamrudpur, New Delhi-48 Pan No. Aaacu 0057 C (Appellant) (Respondent) & Acit Vs. U. K. Paints (India) Pvt. Ltd. Circle – 27(1) 19, Dda Commercial New Delhi Complex, Kailash Colony Extn., Zamrudpur, New Delhi-48 Pan No. Aaacu 0057 C (Appellant) (Respondent)

Section 143(3)Section 14ASection 80I

…prior to commencement of proposed insurance business, since compensation pertains to impairment of profit making apparatus itself, same is non taxable capital receipt; Reliance is rightly placed by assessee on Supreme Court order in case of Saurashtra Cement 325 ITR 422, Delhi ITAT Sak Industries 1 SOT 798, Also it is rightly stated that in absence of cost of said bundle of rights being computable, no capital gains liability can arise in hands of appellant. Reliance is rightly placed on Supreme Court order in D. P. Sandhu Bros.273 ITR Page 1, that where cost is inderminate, capital gains cannot be charged to tax…

ACIT, NEW DELHI vs. M/S U.K. PAINTS (INDIA) PVT. LTD.,, NEW DELHI

In the result, appeal of Revenue for A

ITA 4115/DEL/2013[2008-09]Status: DisposedITAT Delhi16 Jun 2023AY 2008-09

Bench: Sh. Anil Chaturvedi & Sh. Anubhav Sharmaacit Vs. M/S. U. K. Paints (India) Pvt. Central Circle – 10 Ltd., 19, Dda Commercial New Delhi Complex, Kailash Colony Extn., Zamrudpur, New Delhi - 48 Pan No. Aaacu 0057 C (Appellant) (Respondent) & Co No. 244/Del/2013 (Arising Out Of Ita No.4115/Del/2013) (For Assessment Year : 2008-09) M/S. U. K. Paints (India) Vs. Acit Pvt. Ltd., 19, Dda Central Circle – 10 Commercial Complex, New Delhi Kailash Colony Extn., Zamrudpur, New Delhi-48 Pan No. Aaacu 0057 C (Appellant) (Respondent) & Acit Vs. U. K. Paints (India) Pvt. Ltd. Circle – 27(1) 19, Dda Commercial New Delhi Complex, Kailash Colony Extn., Zamrudpur, New Delhi-48 Pan No. Aaacu 0057 C (Appellant) (Respondent)

Section 143(3)Section 14ASection 80I

…prior to commencement of proposed insurance business, since compensation pertains to impairment of profit making apparatus itself, same is non taxable capital receipt; Reliance is rightly placed by assessee on Supreme Court order in case of Saurashtra Cement 325 ITR 422, Delhi ITAT Sak Industries 1 SOT 798, Also it is rightly stated that in absence of cost of said bundle of rights being computable, no capital gains liability can arise in hands of appellant. Reliance is rightly placed on Supreme Court order in D. P. Sandhu Bros.273 ITR Page 1, that where cost is inderminate, capital gains cannot be charged to tax…

MANGAL CREDIT AND FINCORP LTD,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(1), MUMBAI

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

ITA 2756/MUM/2022[2018-2019]Status: DisposedITAT Mumbai24 Apr 2023AY 2018-2019

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 56(2)(ix)

…2014, which is reproduced hereunder:- Section 56 Finance Act, 2014 7 Mangal Credit and Fincorp Ltd. 6.10 Taxability of advance for transfer of a capital asset where advance is forfeited (Sections 51 and 56) In Travencore Rubber & Tea Co. Ltd. v. CIT [2000] 243 ITR 158/109 Taxman 250 (SC) it was held that forfeiture of advance money received for transfer of capital asset cannot be treated as revenue receipt chargeable to tax. In order to overcome this ruling by the Supreme Court, section 56 relating to income from other sources has been amended by the Finance (No. 2) Act, 2014 by inserting a new clause (ix) in…

ACIT, CIRCLE- 29(1), NEW DELHI vs. AHMAD ANSARI IMTIYAZ , NEW DELHI

Appeal of the revenue is dismissed

ITA 3003/DEL/2018[2014-15]Status: DisposedITAT Delhi23 Mar 2023AY 2014-15

Bench: Shri B.R.R. Kumar & Shri Yogesh Kumar Usi.T.A. No. 3003/Del/2018 (A.Y. 2014-15) Acit, Ahmad Ansari Imtiyaz, Circle : 29 (1) Vs. 301/B-4, Govindpuri, New Delhi. Kalkaji, New Delhi – 110 019. ( Appellant ) Pan No. Aaapi7849D ( Respondent )

For Appellant: Ms. Prem Lata Bansal, Sr. AdvFor Respondent: Shri Kanv Bali, Sr. DR
Section 2(47)Section 51Section 56Section 56(1)Section 56(2)(ix)Section 56(2)(vii)

…d "income from other sources". Income from other sources chargeable in section 56 of the Act does not provide taxation of forfeited capital receipt till AY 2014-15. 5 Ahmad Ansari Imtiyaz, ND 14. Supreme Court in Travencore Rubber & Tea Co. Ltd. vs CIT (2000) 243 ITR 158 (SC) have held that in the instant case there were negotiation for transfer of the rubber trees in question, which did not fructify in sale. The amount forfeited referred only to the capital asset of the assessee and were directly related to the sale of such capital asset. The Tribunal had correctly held that the advance money for sale of Tubber…

ACIT CENT .CIR6(4), MUMBAI vs. M/S. KENNETH BUILDERS & DEVELOPERS LTD, MUMBAI

In the result, the appeal of the revenue stand dismissed

ITA 2396/MUM/2021[2017-18]Status: DisposedITAT Mumbai30 Dec 2022AY 2017-18

Bench: Shri Aby T Varkey & Shri Amarjit Singhthe Asstt. Commissioner Vs. Kenneth Builders & Of Income Tax, Cc-6(4) Developers Limited Room No. 1925, 19Th 15Th Floor, Tower – 1, Floor, Air India Building, Indiabulls Finance Center Nariman Point, Senapati Bapat Marg, Mumbai- 400021 Elphistone, Mumbai - 400013 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aacck8268P Appellant .. Respondent

For Appellant: Rakesh RanjanFor Respondent: K. Gopal & Om Kandalkar
Section 115JSection 143(2)

…on would have been materialized, the same would P a g e | 5 have been recorded as stock in trade and not the capital asset. In this respect, the appellant has relied upon the decision of the Hon'ble Supreme Court in the case of CIT vs. Saurashtra Cement Ltd.325 ITR 422 (SC). Further, in respect of MAT u/s 115JB, the appellant has submitted that the compensation being capital receipt, it is to be reduced from the book profit. The appellant has relied upon the decision of the Hon'ble Supreme Court in the case of Indo Rama Synthetics (1) Ltd. vs. CIT reported in 330 ITR 363. 5.3.3 The main dispute is regarding the…

ANDHRA PRADESH POWER GENRATION CORPORATION LIMITED, ,VIJAYAWADA vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-3(1), VIJAYAWADA

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

ITA 252/VIZ/2019[2014-15]Status: DisposedITAT Visakhapatnam15 Dec 2022AY 2014-15

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri M. ChandramouleswaraFor Respondent: Sri MN Murthy Naik, CIT-DR
Section 115JSection 143(2)Section 143(3)Section 14ASection 263

…the due date u/s. 139(1) shall be allowed. The Ld. AO also further submitted hat during the AY 2013-14 in the assessee’s own case, the Ld. CIT(A) relying on the decision of the Hon’ble Supreme Court in the case of CIT vs. Saurashtra Cements Ltd reported in 325 ITR 422 (SC) directed the Assessing Officer to verify the nature of the liquidated damages collected from the contractors is of capital or revenue in nature and also whether it has been reduced from the project cost. The Ld. AR did not press the disallowance U/s. 14A of the Act raised in the grounds of appeal. 6 Per contra, the Ld. DR relied on the ord…

VLCC HEALTH CARE LTD.,NEW DELHI vs. ADDL.CIT, SPECIAL RANGE- 9, NEW DELHI

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

ITA 6756/DEL/2018[2015-16]Status: DisposedITAT Delhi22 Feb 2022AY 2015-16

Bench: Shri Anil Chaturvedi & Shri Amit Shukla

For Appellant: Shri Vinod Bindal, CAFor Respondent: Shri B.S. Ananat, Senior DR
Section 143Section 14A

…tes to bring the profit making apparatus into existence, any damage received on account of such delay amounts to capital receipt. Before the authorities below, the assessee placed reliance on the decision of Hon’ble Apex Curt in CIT vs. Saurashtra Cement Ltd. 325 ITR 422(SC). 4. It is an admitted that that the assessee has been conducting their business at various places in India and in that process for carrying out their business they have taken premises on rent which require certain interior work for bringing the premises to use for the purpose of assessee’s business; that the assessee 5 entered into an agree…

ESSEL MINING & INDUSTRIES LTD vs. PRINCIPAL COMMISSIONER OF INCOME TAX 2 KOLKATA

In the result, the appeal is allowed and the order passed by the Tribunal is set aside on

ITAT/274/2017HC Calcutta17 Nov 2021

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

Section 14ASection 260A

…e’s appeal was allowed. The sheet anchor of the argument submitted by the assessee before the Tribunal was by placing reliance on the decision of the Hon’ble Supreme Court in the case of Commissioner of Income Tax v. Saurashtra Cement Ltd. reported in (2010) 325 ITR 422 (SC) as well as the decision of the Kolkata Bench of the Tribunal in the case of DCIT v. Xpro India Ltd. in ITA 214/Kol/2011 and ACIT v. RDS Construction Pvt. Ltd. in ITA 377 to 383/PN/2013. The Tribunal while interpreting the decision in Saurashtra Cement Ltd. (supra) went into the factual aspect and stated that in the said case, the compensatio…

VLCC HEALTH CARE LTD.,NEW DELHI vs. DCIT, CIRCLE- 26(1), NEW DELHI

In the result, both the appeals are allowed

ITA 3801/DEL/2017[2013-14]Status: DisposedITAT Delhi25 Oct 2021AY 2013-14

Bench: Shri N.K. Billaiya & Shri K. Narasimha Chary

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Sh. N.K. Bansal, Sr. DR

…tes to bring the profit making apparatus into existence, any damage received on account of such delay amounts to capital receipt. Before the authorities below, the assessee placed reliance on the decision of Hon’ble Apex Curt in CIT vs. Saurashtra Cement Ltd. 325 ITR 422(SC). 4. It is an admitted that that the assessee has been conducting their business at various places in India and in that process for carrying out their business they have taken premises on rent which require certain interior work for bringing the premises to use for the purpose of assessee’s business; that the assessee entered into an agreemen…

M/S. VLCC HEALTH CARE LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result, both the appeals are allowed

ITA 1319/DEL/2017[2012-13]Status: DisposedITAT Delhi25 Oct 2021AY 2012-13

Bench: Shri N.K. Billaiya & Shri K. Narasimha Chary

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Sh. N.K. Bansal, Sr. DR

…tes to bring the profit making apparatus into existence, any damage received on account of such delay amounts to capital receipt. Before the authorities below, the assessee placed reliance on the decision of Hon’ble Apex Curt in CIT vs. Saurashtra Cement Ltd. 325 ITR 422(SC). 4. It is an admitted that that the assessee has been conducting their business at various places in India and in that process for carrying out their business they have taken premises on rent which require certain interior work for bringing the premises to use for the purpose of assessee’s business; that the assessee entered into an agreemen…

ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED, HYDERABAD,HYDERABAD vs. DCIT, CIRCLE-1(1), HYDERABAD, HYDERABAD

Appeals are partly allowed for statistical purposes therefore

ITA 1656/HYD/2016[2011-12]Status: DisposedITAT Hyderabad17 Sept 2021AY 2011-12

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahu

For Appellant: Sri M. Chandramouleswara RaoFor Respondent: Sri Y.V.S.T. Sai, DR
Section 143(3)Section 14A

…come by treating revenue in nature and were not reduced from the capital cost of the project and were only kept in the miscellaneous deposits account. The Applicant relied on the decision of the Hon'ble Supreme Court in CIT Vs. Saurastra Cement Limited (2010) 325 ITR 422(SC). In this case, the Hon'ble Supreme Court held that the damages were directly and intimately linked with the procurement of capital asset and therefore the damages are not received / earned in the ordinary course of business. Thus, it is a Capital Receipt in the hands of the Applicant. In the light of the above, the Assessing officer is direct…

DCIT, CIRCLE-1(1), HYDERABAD vs. ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED,, HYDERABAD

Appeals are partly allowed for statistical purposes therefore

ITA 1608/HYD/2016[2013-14]Status: DisposedITAT Hyderabad17 Sept 2021AY 2013-14

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahu

For Appellant: Sri M. Chandramouleswara RaoFor Respondent: Sri Y.V.S.T. Sai, DR
Section 143(3)Section 14A

…come by treating revenue in nature and were not reduced from the capital cost of the project and were only kept in the miscellaneous deposits account. The Applicant relied on the decision of the Hon'ble Supreme Court in CIT Vs. Saurastra Cement Limited (2010) 325 ITR 422(SC). In this case, the Hon'ble Supreme Court held that the damages were directly and intimately linked with the procurement of capital asset and therefore the damages are not received / earned in the ordinary course of business. Thus, it is a Capital Receipt in the hands of the Applicant. In the light of the above, the Assessing officer is direct…

DCIT, CIRCLE-1(1), , HYDERABAD vs. ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED,, HYDERABAD

Appeals are partly allowed for statistical purposes therefore

ITA 1607/HYD/2016[2012-13]Status: DisposedITAT Hyderabad17 Sept 2021AY 2012-13

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahu

For Appellant: Sri M. Chandramouleswara RaoFor Respondent: Sri Y.V.S.T. Sai, DR
Section 143(3)Section 14A

…come by treating revenue in nature and were not reduced from the capital cost of the project and were only kept in the miscellaneous deposits account. The Applicant relied on the decision of the Hon'ble Supreme Court in CIT Vs. Saurastra Cement Limited (2010) 325 ITR 422(SC). In this case, the Hon'ble Supreme Court held that the damages were directly and intimately linked with the procurement of capital asset and therefore the damages are not received / earned in the ordinary course of business. Thus, it is a Capital Receipt in the hands of the Applicant. In the light of the above, the Assessing officer is direct…

DCIT, CIRCLE-1(1), , HYDERABAD vs. ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED,, HYDERABAD

Appeals are partly allowed for statistical purposes therefore

ITA 1606/HYD/2016[2011-12]Status: DisposedITAT Hyderabad17 Sept 2021AY 2011-12

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahu

For Appellant: Sri M. Chandramouleswara RaoFor Respondent: Sri Y.V.S.T. Sai, DR
Section 143(3)Section 14A

…come by treating revenue in nature and were not reduced from the capital cost of the project and were only kept in the miscellaneous deposits account. The Applicant relied on the decision of the Hon'ble Supreme Court in CIT Vs. Saurastra Cement Limited (2010) 325 ITR 422(SC). In this case, the Hon'ble Supreme Court held that the damages were directly and intimately linked with the procurement of capital asset and therefore the damages are not received / earned in the ordinary course of business. Thus, it is a Capital Receipt in the hands of the Applicant. In the light of the above, the Assessing officer is direct…

SATYA NARAYAN DHOOT,JODHPUR vs. ACIT, CIRCLE-3, JODHPUR

In the result, the appeal of the assessee is allowed

ITA 35/JODH/2021[2015-16]Status: DisposedITAT Jodhpur07 Sept 2021AY 2015-16
For Appellant: Sh. Mohit Soni (Adv.)For Respondent: Smt. Sanchita Kumar (CIT-DR)
Section 143(3)Section 263

…are a copy of purchase order, Certificate of commissioning of plant & machinery, Confirmation of account of Sulzon Pvt.Ltd and bills & invoices. Further, reliance was placed on the decision of the Hon’ble Supreme Court in case of CIT v/s Saurashtra Cement Ltd 325 ITR 422 and Hon’ble Gujarat High Court in the case of Shri Digvijay Cement Company Ltd. 138 ITR 45. The Ld. AO after due examination and verification of facts from documentary evidence and in the light of the decisions of Hon’ble Supreme Court and Hon’ble Gujarat High Court had accepted that the amount received as liquidated damages due to delay in suppl…

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Travencore Rubber & Tea Co. Ltd. v. CIT (325 ITR 422) — Cited in 72 Judgments | BharatTax