Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT

227 ITR 172Supreme Court of India1997#96 most cited

What is Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT authority for?

Interest income earned on deposits, particularly before the commencement of business operations or as a requirement for business licensing, is taxable as "income from other sources" under Section 56, and cannot be treated as business income or set off against interest on borrowed funds.

621

judgments rely on this decision, according to BharatTax’s citation analysis of 371,939 Indian tax judgments — from 2007 to 2026.

Also referred to as

Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT · 227 ITR 172 · Section 28 · Section 56 · Section 57 · income from other sources · business income · interest income · commencement of business · capitalization of interest · year of expenditure claim

Also reported as

141 CTR 387

Sections most often in play

Section 250Section 143(3)Section 41(1)Section 14ASection 40(a)(ia)Section 37(1)Section 147Section 28(iv)

Issues it is cited on

section 57profits and gains of business or professionsection 56section 32revenue expenditureincome from other sourcessection 28section 37(1)capital expendituresection 43section 37previous year

Judgments citing Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT

DCIT Cent.Cir-1(4), Mumbai vs. M/S.International Mineral Trading Co. Private Limited, Mumbai

Accordingly grounds raised by the revenue are dismissed

ITA 615/MUM/2018[2013-14]Status: DisposedITAT Mumbai27 Sept 2019AY 2013-14

Bench: Shri S. Rifaur Rahman, Am & Shri Ram Lal Negi, Jm आयकरअपीलसं./ I.T.A. No. 615/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2013-14)

For Appellant: Shri Kumar PadmapaniFor Respondent: Shri Gaurav Kabra, AR
Section 143(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, AM & SHRI RAM LAL NEGI, JM आयकरअपीलसं./ I.T.A. No. 615/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2013-14) M/s International Mineral DCIT Cen Cir -1(4) Trading Co. Pvt. Ltd. Room No. 902, Pratistha बिधम/ 51/53, A Wing, Mittal Bhavan, 9th floor, Old Vs. Court, J. B. Marg, Nariman CGO Building, Annexe, Pint, Mumbai-400 021. Mumbai-400 020 स्थायीलेखासं./जीआइआरसं./PAN No. AABCI8504K (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant : Shri Kumar Padmapani Bora, DR by प्रत्यथीकीओरसे/Respondentby : Shri Gaurav Kabra…

DCIT, Circle-10(1) vs. Delhi Metro Rail Corp. Ltd., New Delhi

The appeal of the assessee is dismissed

ITA 4432/DEL/2005[2000-2001]Status: DisposedITAT Delhi26 Sept 2019AY 2000-2001

Bench: Ms Suchitra Kamble & Shri Prashant Maharishii.T.A. No. 4432/Del/2005 (A.Y. 2000-01) I.T.A. No. 4433/Del/2005 (A.Y. 2001-02)

Section 10Section 143(3)Section 263Section 271(1)(c)Section 56

…ee can claim only expenses incurred for earning this income which the assessee has not done. The Ld. DR relied upon the following decisions with regard to Section 56 of the Income Tax Act, 1961: 1. Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT [1997] 141 CTR 387 (SC) 2. CIT vs. Coromandal Cements Ltd. [1998] 234 ITR 412 (SC) 3. CIT vs. Indian Vaccines Corporation Ltd. [2014] 363 ITR 295 (Del) 4. Bharat Oman Refineries Ltd. [2013] 356 ITR 399 (MP) 5. CIT vs. Bhawal Synthetics (India), Udaipur [2017] 297 CTR 104 (Raj.) 6. Thermal Powertech Corporation India Ltd. vs. DCIT [2017] 164 ITD 449 (Hyd. Tri.)…

Delhi Metro Rail Corporation Ltd, New Delhi vs. CIT, New Delhi

The appeal of the assessee is dismissed

ITA 1153/DEL/2009[2003-04]Status: DisposedITAT Delhi26 Sept 2019AY 2003-04

Bench: Ms Suchitra Kamble & Shri Prashant Maharishii.T.A. No. 4432/Del/2005 (A.Y. 2000-01) I.T.A. No. 4433/Del/2005 (A.Y. 2001-02)

Section 10Section 143(3)Section 263Section 271(1)(c)Section 56

…ee can claim only expenses incurred for earning this income which the assessee has not done. The Ld. DR relied upon the following decisions with regard to Section 56 of the Income Tax Act, 1961: 1. Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT [1997] 141 CTR 387 (SC) 2. CIT vs. Coromandal Cements Ltd. [1998] 234 ITR 412 (SC) 3. CIT vs. Indian Vaccines Corporation Ltd. [2014] 363 ITR 295 (Del) 4. Bharat Oman Refineries Ltd. [2013] 356 ITR 399 (MP) 5. CIT vs. Bhawal Synthetics (India), Udaipur [2017] 297 CTR 104 (Raj.) 6. Thermal Powertech Corporation India Ltd. vs. DCIT [2017] 164 ITD 449 (Hyd. Tri.)…

DCIT, Circle-10(1) vs. Delhi Metro Rail Corporation Ltd

The appeal of the assessee is dismissed

ITA 4433/DEL/2005[2001-2002]Status: DisposedITAT Delhi26 Sept 2019AY 2001-2002

Bench: Ms Suchitra Kamble & Shri Prashant Maharishii.T.A. No. 4432/Del/2005 (A.Y. 2000-01) I.T.A. No. 4433/Del/2005 (A.Y. 2001-02)

Section 10Section 143(3)Section 263Section 271(1)(c)Section 56

…ee can claim only expenses incurred for earning this income which the assessee has not done. The Ld. DR relied upon the following decisions with regard to Section 56 of the Income Tax Act, 1961: 1. Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT [1997] 141 CTR 387 (SC) 2. CIT vs. Coromandal Cements Ltd. [1998] 234 ITR 412 (SC) 3. CIT vs. Indian Vaccines Corporation Ltd. [2014] 363 ITR 295 (Del) 4. Bharat Oman Refineries Ltd. [2013] 356 ITR 399 (MP) 5. CIT vs. Bhawal Synthetics (India), Udaipur [2017] 297 CTR 104 (Raj.) 6. Thermal Powertech Corporation India Ltd. vs. DCIT [2017] 164 ITD 449 (Hyd. Tri.)…

The DCIT, Circle-1(1)(1), Ahmedabad vs. M/S. Adani Mining Pvt. Ltd., Ahmedabad

In the result, the appeal filed by the Revenue is dismissed whereas the CO filed by the assessee is allowed

ITA 1972/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad25 Sept 2019AY 2011-12

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No.1972/Ahd/2015 With C.O. 155/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-2012 D.C.I.T, Adani Mining Pvt. Ltd., Circle-3(2), Vs. (Now Merged With Adani Ahmedabad. Enterprises Ltd.) 9Th Floor, Shikhar Building, Nr. Mithkhali Six Road, Navrangpura, Ahmedabad-380009. Pan: Aagca5276M

For Appellant: Shri
Section 145ASection 56

…nterest income, etc were reduced from the cost of the project as these incomes were directly connected with the business of the assessee. 6.2 Similarly, the Hon’ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. Vs CIT reported in 227 ITR 172 has treated the CO No.155/Ahd/2015 Asstt. Year 2011-12 7 interest income as the income from other sources due to the fact that the same was not linked with the project of the assessee. 6.3 Thus, the criteria to see any receipt or payment is whether the same is inextricably link with the project. Accordingly, any receipt shall be treated as inex…

Western Drilling Contractors Pvt. Ltd., Noida vs. ITO Ward3(5), Noida

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

ITA 3642/DEL/2019[2012-13]Status: DisposedITAT Delhi25 Sept 2019AY 2012-13

Bench: Shri R.K. Pandaassessment Year: 2012-13 Western Drilling Contractors Pvt. Ltd., Vs Ito, Plot No.1A, Institutional Area, Ward-3(5), Sector-16A, Noida, Noida. Uttar Pradesh. Pan: Aaafw5961A (Appellant) (Respondent) Assessee By : Shri K.M. Gupta, Advocate Revenue By Shri S.L. Anuragi, Sr. Dr Date Of Hearing : 31.07.2019 Date Of Pronouncement : 25.09.2019 Order This Appeal Filed By The Assessee Is Directed Against The Order Dated 29.11.2018 Of The Cit(A)-1, Noida, Relating To Assessment Year 2012-13. 2. Grounds Of Appeal 1, 2 & 3 Which Are Corelated Are As Under:- “1. On The Facts, In Law & In Circumstances Of The Case, The Ld. Commissioner Of Income Tax (Appeals) [Cit(A)] Erred In Confirming The Assessment Of Interest Of Rs.27,82,217/- Earned On Fixed Deposits Placed As Margin Money With Bank For Issuance Of Bank Guarantee For Oil Blocks, A "Income From Other Sources" On The Ground That Margin Money Placed With The Bank For Issuance Of Guarantees Is Not A Pre-Condition For Set Up Of Business Of The Appellant. 2. On The Facts, In Law & In Circumstances Of The Case, The Ld. Cit(A) Erred In Holding That Fixed Deposits Placed As Margin Money With Bank For Issuance Of Bank Guarantee Could Not Be Held To Be Intrinsically Connected With The Business Of The Appellant. 3. Without Prejudice, On The Facts, In Law & In Circumstances Of The Case, The Ld. Cit(A) Erred In Not Allowing Deduction Of Proportionate Interest Expense Of Rs.49,07,818/- Incurred Directly & Exclusively Towards Earning Aforesaid Interest Income.”

For Appellant: Shri K.M. Gupta, Advocate

…ed on such deposit is incidental to the acquisition of assets for the setting up of the plant and machinery. In this view of the matter the ratio laid down by this Court in Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT (1997) 141 CTR (SC) 387 : (1997) 227 ITR 172 (SC) : TC S38.3460, will not be attracted. The more appropriate decision in the factual situation in the present case is in CIT vs. Bokaro Steel Ltd. (1999) 151 CTR (SC) 276 : (1999) 236 ITR 315 (SC). The appeal is dismissed. There will be no order as to costs.” 10. Similar view has been taken by the Hon'ble Delhi High Court in the case of PCIT…

Volkswagen India Private Ltd., Pune vs. Assistant Commissioner of Income-Tax

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

ITA 1883/PUN/2013[2008-09]Status: DisposedITAT Pune05 Sept 2019AY 2008-09
For Appellant: Shri Danesh BafnaFor Respondent: Shri S.B. Prasad
Section 3Section 4

…आयकर अपीलीय अिधकरण “ए” "यायपीठ पुणे म" । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE "ी डी. क"णाकरा राव, लेखा सद"य एवं "ी िवकास अव"थी, "याियक सद"य के सम" BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM आयकर अपील सं./ ITA No.1883/PUN/2013 िनधा"रण वष" / Assessment Year : 2008-09 Volkswagen India Private Limited. E-1, MIDC Industrial Area, Phase-III, Village Nigoje Mhalunge, Kharabwadi, Chakan, Taluka- Khed, Pune-410 501. PAN : AACCV4229P .......अपीलाथ" / Appellant बनाम / V/s. The Assistant Commissioner of Income Tax, Circle-7, Pune. ……""यथ" / Respondent Appellant by : Shri Danesh Bafna Respo…

ITO, New Delhi vs. M/S. National High Power Test Laboratory Pvt. Ltd., New Delhi

In the result, appeal of Department dismissed

ITA 392/DEL/2017[2013-14]Status: DisposedITAT Delhi02 Sept 2019AY 2013-14

Bench: Shri Bhavnesh Saini & Shri B.R.R. Kumar

For Appellant: -None-For Respondent: Ms. Rinku Singh, Sr. D.R
Section 56

…iness is not liable to tax u/s 56 of the Income Tax Act (the Act) ? 2. Whether in facts and circumstances of the case and in law, the ratio decidendi as laid down by Hon’ble Apex Court in case of Tuticorin Alkali Chemicals and Fertilizers Ltd. vs CIT(1997) 227 ITR 172 (SC) and CIT vs. Coromandal Cement Ltd. (1998) 134 ITR 412 is applicable to the facts and circumstances of the case? 3. Whether in facts and circumstances of the case, the Ld. CIT(A) is legally justified in following the order of his predecessor on the issue ignoring the decision of Hon’ble Supreme Court in case of Tuticorin Alkali Chemicals a…

DCIT, New Delhi vs. M/S. Sentia Power Ltd., New Delhi

In the result, ITA number 146/Del/2016 filed by the learned assessing officer for assessment year 2012 – 13 is dismissed

ITA 1461/DEL/2016[2012-13]Status: DisposedITAT Delhi21 Aug 2019AY 2012-13

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishisentia Power Ltd, Vs. Ito, (Formerly Known As Indiabulls Ward-11(4), Cseb Bhiyathan Power Ltd), New Delhi M-62 & 63, 1St Floor, Connaught Place, New Delhi Pan: Aabci8901M (Appellant) (Respondent) The Deputy Commissioner Of Vs. Sentia Power Ltd, Income Tax (Formerly Known As Circle 23(2) Indiabulls Cseb Bhiyathan New Delhi Power Ltd), M-62 & 63, 1St Floor, Connaught Place, New Delhi Pan: Aabci8901M (Appellant) (Respondent)

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri Arun Kumar Yadav, Sr DR

…ssee by directing the Assessing Officer to delete the addition and to consider the same for capitalization towards pre-operative expenses. On the revenue's appeal, the Tribunal, following decision in Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172 / 93 Taxman 502 (SC] reversed the order of the Commissioner (Appeals]. The Hon‟ble High Court held as under: “In the instant case, it was clear upon a perusal of the facts as found by the authorities below that the junds in the form of share capital were in fused for a specific purpose of acquiring land and the development of infrastructure. Ther…

M/S. Sentia Power Ltd., New Delhi vs. ITO, New Delhi

In the result, ITA number 146/Del/2016 filed by the learned assessing officer for assessment year 2012 – 13 is dismissed

ITA 3498/DEL/2015[2011-12]Status: DisposedITAT Delhi21 Aug 2019AY 2011-12

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishisentia Power Ltd, Vs. Ito, (Formerly Known As Indiabulls Ward-11(4), Cseb Bhiyathan Power Ltd), New Delhi M-62 & 63, 1St Floor, Connaught Place, New Delhi Pan: Aabci8901M (Appellant) (Respondent) The Deputy Commissioner Of Vs. Sentia Power Ltd, Income Tax (Formerly Known As Circle 23(2) Indiabulls Cseb Bhiyathan New Delhi Power Ltd), M-62 & 63, 1St Floor, Connaught Place, New Delhi Pan: Aabci8901M (Appellant) (Respondent)

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri Arun Kumar Yadav, Sr DR

…ssee by directing the Assessing Officer to delete the addition and to consider the same for capitalization towards pre-operative expenses. On the revenue's appeal, the Tribunal, following decision in Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172 / 93 Taxman 502 (SC] reversed the order of the Commissioner (Appeals]. The Hon‟ble High Court held as under: “In the instant case, it was clear upon a perusal of the facts as found by the authorities below that the junds in the form of share capital were in fused for a specific purpose of acquiring land and the development of infrastructure. Ther…

Pune Sholapur Road Dev. Co. Ltd., Mumbai vs. I.T.O. - 10(1)(3), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 6674/MUM/2017[2011-12]Status: DisposedITAT Mumbai09 Aug 2019AY 2011-12

Bench: Shri G. Manjunatha & Shri Ram Lal Negipune Sholapur Road Dev.Co.Ltd. Vs. Ito-10(1)(3) Room No.461, 4Th Floor The Il &Fs Financial Center Plot No.C-22, G Block Aaykar Bhawan, M.K.Road Bandra Kurla Complex , Mumbai-400 020 Bandra(E) Mumbai-400 051 Pan/Gir No.Aafcp1669Q Appellant) .. Respondent)

Section 143(3)Section 234B

…g on business, the interest earned by it from loans and bank deposits was assessable under the head ‘Income From Other Sources.” The High Court had followed the Hon’ble Apex Court’s judgement in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs CIT 227 ITR 172 wherein it was held that in usual course, interest received by the company on loans and banks deposits would be taxable as income under the head income from other sources under section 56 of the I.T.Act. In the case of Murli Investment Co. Vs CIT 167 ITR 368 (Raj), the Rajasthan High Court has held that the activity indulged in by the assessee di…

M/S Sambhav Institutions (India) Private Limited, Bangalore vs. Income Tax Officer Ward-12(2), Bangalore

In the result, all the three appeals filed by the assessee are allowed for statistical purposes

ITA 1760/BANG/2018[2010-11]Status: DisposedITAT Bangalore31 Jul 2019AY 2010-11

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Siddesh Gaddi, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 271(1)(c)

…the appellant company is in service sector, therefore there is no question setting up factory or erection of machinery is required as noted in the decision of Honourable Supreme Court in the case of Tuticorin Alkali Chemicals 86 Fertilizers Ltd. v. CIT [1997] 227 ITR 1721 (SC). The moment the assessee-company incorporated and is able to render services either by itself or through its Trust, it will lead to the conclusion that the business of the assessee has been setup and commenced. The income shown by the assessee has to be treated as income from business and necessary benefits or deductions claimed by the asse…

M/S Sambhav Institutions (India) Private Limited, Bangalore vs. Income Tax Officer Ward-12(2), Bangalore

In the result, all the three appeals filed by the assessee are allowed for statistical purposes

ITA 1759/BANG/2018[2009-10]Status: DisposedITAT Bangalore31 Jul 2019AY 2009-10

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Siddesh Gaddi, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 271(1)(c)

…the appellant company is in service sector, therefore there is no question setting up factory or erection of machinery is required as noted in the decision of Honourable Supreme Court in the case of Tuticorin Alkali Chemicals 86 Fertilizers Ltd. v. CIT [1997] 227 ITR 1721 (SC). The moment the assessee-company incorporated and is able to render services either by itself or through its Trust, it will lead to the conclusion that the business of the assessee has been setup and commenced. The income shown by the assessee has to be treated as income from business and necessary benefits or deductions claimed by the asse…

M/S Sambhav Institutions (India) Private Limited, Bangalore vs. Income Tax Officer Ward-12(2), Bangalore

In the result, all the three appeals filed by the assessee are allowed for statistical purposes

ITA 1758/BANG/2018[2008-09]Status: DisposedITAT Bangalore31 Jul 2019AY 2008-09

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Siddesh Gaddi, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 271(1)(c)

…the appellant company is in service sector, therefore there is no question setting up factory or erection of machinery is required as noted in the decision of Honourable Supreme Court in the case of Tuticorin Alkali Chemicals 86 Fertilizers Ltd. v. CIT [1997] 227 ITR 1721 (SC). The moment the assessee-company incorporated and is able to render services either by itself or through its Trust, it will lead to the conclusion that the business of the assessee has been setup and commenced. The income shown by the assessee has to be treated as income from business and necessary benefits or deductions claimed by the asse…

DCIT, New Delhi vs. M/S. Citi Financial Cosumer Finance India Ltd., New Delhi

In the result, appeal filed by Revenue is dismissed

ITA 3118/DEL/2016[2010-11]Status: DisposedITAT Delhi29 Jul 2019AY 2010-11

Bench: Shri H.S. Sidhu & Shri Anadee Nath Misshra

For Appellant: Shri Gaurav Gupta, AdvFor Respondent: Shri S.S. Rana, CIT(DR)
Section 143(3)

…ITA No.- 3118/Del/2016. M/s Citi Financial Consumer Finance India Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘G’: NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No:- 3118/Del/2016 (Assessment Year: 2010-11) Dy. Commissioner of Income Tax, M/s Citi Financial Consumer Circle 6(1), New Delhi. Vs. Finance India Ltd. PAN No: AABCA3223B APPELLANT RESPONDENT Revenue by : Shri S.S. Rana, CIT(DR) Assessee by : Shri Gaurav Gupta, Adv. ORDER Per Anadee Nath Misshra , AM This appeal by Revenue has been directed against the order of Learned Commiss…

Sugam Vanijya Holdieng P.Ltd, Bengluru vs. DCIT, Circle-24(2), New Delhi

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

ITA 6722/DEL/2017[2013-14]Status: DisposedITAT Delhi26 Jul 2019AY 2013-14

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2013-14 Sugam Vanijya Holding P. Ltd., Vs Dcit, Vr Bengaluru, No.11B, Survey Circle-24(2), No.40/9, Dyvasandra Industrial Area, New Delhi. 2Nd Stage, Kr Puram Hobli, Bengaluru. Pan: Aaacs1883J (Appellant) (Respondent) Assessee By : Shri Deepak Chopra, Shri Kanchan Kaushal, Cas & Shri Harpreet Ajmani, Advocate Revenue By : Shri S.S. Rana, Cit, Dr Date Of Hearing : 07.05.2019 Date Of Pronouncement : 26.07.2019 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 25.09.2017 Passed U/S 143(3) Read With Section 144C(13) Of The Income-Tax Act, 1961, Relating To Assessment Year 2013-14. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Company Engaged In The Business Of Construction Of Mixed Commercial Development Projects At Whitefield, Bangalore. It Filed Its Return Of Income On 26.11.2013 Declaring The Total Income At Rs.13,24,24,139/-. Since The Assessee Had Entered Into Certain International

For Appellant: Shri Deepak ChopraFor Respondent: Shri S.S. Rana, CIT, DR
Section 143(3)Section 144C(13)

…ee by directing the Assessing Officer to delete the addition and to consider the same for capitalization towards pre-operative expenses. On the revenue's appeal, the Tribunal, following decision in Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172 / 93 Taxman 502 (SC) reversed the order of the Commissioner (Appeals). 20. Before the Hon'ble High Court, the following substantial question of law arose for its consideration:- "Whether the Tribunal misdirected itself in law in holding that interest which accrued on funds deployed with the bank could be taxed as income from other sources and…

DCIT- 14(1)(2), Mumbai vs. Commtel Networks Pvt. Ltd., Mumbai

In the result appeal of the Revenue is dismissed

ITA 3427/MUM/2018[2014-15]Status: DisposedITAT Mumbai23 Jul 2019AY 2014-15

Bench: Shri G. Manjunatha & Shri Ram Lal Negidcit-14(1)(2) Vs. M/S Commtel Networks Room No.470, 4Th Floor Private Limited Aaykar Bhawan, M.K.Road 23, White Castle, 34-35 Mumbai-400 020 Union Park, Chembur Mumbai-400 071 Pan/Gir No.Aaacc8966G Appellant) .. Respondent)

Section 211

…provisions of law, and it is not necessary that law should follow the footsteps of accountancy. Income-tax law does not march step by step in the divergent footprint of the accountancy profession - Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT (1997) 227 ITR 172 (SC). 18. In view of the above, merely because retention money was accounted for in the books of accounts that same cannot be brought in the tax net without income having been accrued to the assessee. Furthermore, the assessee is consistently following the above practice for the retention moneys year after year since the A. Y.2003-04 and onwards.…

Solarfield Energy Pvt. Ltd., Mumbai vs. ITO Ward 2(3)(3), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 5189/MUM/2016[2012-13]Status: DisposedITAT Mumbai16 Jul 2019AY 2012-13

Bench: Shri Pawan Singh & Shri M Balaganesh

Section 143(3)Section 154

…ribunal in Solarfield Energy Two Ltd (supra). The coordinate bench of Tribunal in Solarfield Energy Two Pvt Ltd (supra), after considering the judgement of the Hon’ble Supreme Court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd vs CIT (1997) 227 ITR 172 (SC), has passed the following order:- 8. We have heard rival contentions and perused the material available on record in the light of decisions relied upon. We have also applied our mind to the decisions relied upon. Undisputed facts are, the assessee was awarded the work of setting-up of Solar Power Plant project in Rajasthan by NWIML. It is a…

M/S Global Entropolis (Vizag) Pvt Ltd, Bangalore vs. Assistant Commissioner of Income Tax Circle-3(1)(2), Bangalore

In the result, both the appeals of the assessee are treated as partly allowed for statistical purposes

ITA 2927/BANG/2018[2015-16]Status: DisposedITAT Bangalore12 Jul 2019AY 2015-16

Bench: Shri B.R Baskaran & Shri Pavan Kumar Gadale

For Appellant: Shri Ananthan, C.AFor Respondent: Shri Nagendra Prasad, CIT
Section 10ASection 56

…IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH : BANGALORE BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA Nos.2927 & 2928/Bang/2018 Assessment year : 2014-15 & 2015-16 Global Entropolis (vizag) Pvt. Ltd., Vs. The Asst. Commissioner of Income-tax, No.40/43, ‘Nagashree Chambers’, Central Circle-3(1)(2), 8th Main, 4th Cross, RMV Extension, Bengaluru. Sadashivanagar, Bengaluru-560 080. PAN – AADCG 1109J. APPELLANT RESPONDENT Appellant by : Shri Ananthan, C.A Respondent by : Shri Nagendra Prasad, CIT Date of hearing : 17.06.2019 Date of Pronouncement : 12.07.2019…

DCIT, Circle- 62(1), New Delhi vs. L&T Sucg Jv CC27, New Delhi

In the result, appeal of the Department is dismissed

ITA 4457/DEL/2018[2014-15]Status: DisposedITAT Delhi10 Jul 2019AY 2014-15

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: Shri Saurabh Goel, C.As And Shri Nirbhay MehtaFor Respondent: Shri J.K. Mishra, CIT-DR

…t does not recognise hypothetical or notional income which is not received or accrued to the assessee. We rely upon Judgments of Hon’ble Supreme Court in the cases of Sutlez Cotton Mills vs. CIT 116 ITR 1 (SC); Tuticorin Alcali Chemicals and Fertilizers Ltd., 227 ITR 172 (SC) and Godhra Electricity Co. Ltd., 225 ITR 746 (SC). If this addition is considered in assessment year under appeal and stock position is taken differently, it has to be given effect in closing stock of this year, resultantly, opening stock of next assessment year would be enhanced by same amount. It would be tax neutral exercise only. The exp…