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 371,887 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

I.T.O. Ward -1(1), Raipur (Cg) vs. M/S Cmdc Icpl Coal Ltd, Raipur (Cg)

In the result, the appeal of the assessee is allowed

ITA 271/BIL/2014[2011-12]Status: DisposedITAT Raipur12 Oct 2018AY 2011-12

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2011-12 Ito, Ward- 1(1), Cmdc Icpl Coal Ltd., Raipur (Cg). Rajbandha Maidan, G. E. Road, Vs. Raipur (Cg).

For Appellant: Shri R. B. Doshi, CAFor Respondent: Shri Ajit Kumar Laskar, DR

…4. However, the Assessing Officer was not satisfied with the explanation given by the assessee. Relying on various decisions including the decision of the Hon'ble Supreme Court in the case of Tuticorin Alkalies Chemicals Fertilizers Ltd. vs. CIT reported in 227 ITR 172, the Assessing Officer held that the interest of Rs.1,22,54,520/- earned by the assessee from fixed deposits kept in various banks during the year under consideration was an independent income being interest on investment of surplus funds in fixed deposits etc. which is clearly a revenue receipt liable to tax. Rejecting the various explanatio…

Hll Biotech Ltd, Trivandrum vs. The ITO, WD-1(1), Trivandrum

In the result, the appeal of the assessee is partly allowed for statistical purposes and the Stay Petition filed by the assessee is dismissed

ITA 179/COCH/2018[2014-15]Status: DisposedITAT Cochin24 Sept 2018AY 2014-15

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

…e inextricably linked to the setting up of the plant is required to be capitalized and set off against the expense during construction. 2. The CIT(A) failed to note that the ratio of the Apex Court in the case of Turticorin Akali Chemicals & Fertilizers Ltd. (227 ITR 172) is not applicable to the case of the appellant. 3. Without prejudice to the above grounds, the CIT(A) erred in confirming the action of the Assessing Officer not setting off the business loss of Rs.52,52,714/- returned by the appellant against the additions made by him. 3. The facts of the case are that the assessee company is a subsidiary of M…

Jasmine Builtech Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 767/DEL/2015[2008-09]Status: DisposedITAT Delhi19 Sept 2018AY 2008-09

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Amit Shuklaasstt. Year 2008-09 Jasmine Buildtech Pvt. Ltd. Acit M-11, Middle Circle, Central Circle-23, E-2, Connaught Circus, Ara Centre, New Delhi 110 001 Jhandewalan Extension Vs. Pan Aabcj6865E New Delhi. (Appellant) (Respondent) Asstt. Year: 2008-09 Dcit, Jasmine Buildtech Pvt. Ltd. Central Circle-32 Vs. M-11, Middle Circle, New Delhi. Connaught Circus, New Delhi 110 001 Pan Aabcj6865E (Appellant) (Respondent)

For Appellant: Shri Ajay Bhagwani, CAFor Respondent: Shri Sanjeet Singh CIT DR
Section 153ASection 37Section 37(1)Section 40ASection 40A(3)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI G.D. AGRAWAL, HON’BLE PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER Asstt. Year 2008-09 Jasmine Buildtech Pvt. Ltd. ACIT M-11, Middle Circle, Central Circle-23, E-2, Connaught Circus, ARA Centre, New Delhi 110 001 Jhandewalan Extension Vs. PAN AABCJ6865E New Delhi. (Appellant) (Respondent) Asstt. Year: 2008-09 DCIT, Jasmine Buildtech Pvt. Ltd. Central Circle-32 Vs. M-11, Middle Circle, New Delhi. Connaught Circus, New Delhi 110 001 PAN AABCJ6865E (Appellant) (Respondent) Assessee by: Shri Ajay Bhagwani, CA Department by : Shri Sanjeet Si…

DCIT, New Delhi vs. M/S. Jasmine Buildtech Pvt. Ltd., New Delhi

ITA 507/DEL/2015[2008-09]Status: DisposedITAT Delhi19 Sept 2018AY 2008-09

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Amit Shuklaasstt. Year 2008-09 Jasmine Buildtech Pvt. Ltd. Acit M-11, Middle Circle, Central Circle-23, E-2, Connaught Circus, Ara Centre, New Delhi 110 001 Jhandewalan Extension Vs. Pan Aabcj6865E New Delhi. (Appellant) (Respondent) Asstt. Year: 2008-09 Dcit, Jasmine Buildtech Pvt. Ltd. Central Circle-32 Vs. M-11, Middle Circle, New Delhi. Connaught Circus, New Delhi 110 001 Pan Aabcj6865E (Appellant) (Respondent)

For Appellant: Shri Ajay Bhagwani, CAFor Respondent: Shri Sanjeet Singh CIT DR
Section 153ASection 37Section 37(1)Section 40ASection 40A(3)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI G.D. AGRAWAL, HON’BLE PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER Asstt. Year 2008-09 Jasmine Buildtech Pvt. Ltd. ACIT M-11, Middle Circle, Central Circle-23, E-2, Connaught Circus, ARA Centre, New Delhi 110 001 Jhandewalan Extension Vs. PAN AABCJ6865E New Delhi. (Appellant) (Respondent) Asstt. Year: 2008-09 DCIT, Jasmine Buildtech Pvt. Ltd. Central Circle-32 Vs. M-11, Middle Circle, New Delhi. Connaught Circus, New Delhi 110 001 PAN AABCJ6865E (Appellant) (Respondent) Assessee by: Shri Ajay Bhagwani, CA Department by : Shri Sanjeet Si…

Mjsj Coal Limited, Angul vs. ITO, Ward-1(3), Bhubaneswar

Appeals of the assessee are allowed

ITA 107/CTK/2018[2014-15]Status: DisposedITAT Cuttack31 Aug 2018AY 2014-15

Bench: Shri N.S.Saini, Am & Shri Pavan Kumar Gadale, Jm आयकर अपील सं./Ita Nos.429/Ctk/2016, 68/Ctk/2017 & 107/Ctk/2018 ("नधा"रण वष" / A.Ys :2011-2012, 2013-2014 & 2014-2015) Mjsj Coal Limited, Vs. Ito, Ward-2, Dhenkanal / At/Po:Balanda, Talcher, Ito, Ward-1(3), Bhubaneswar Dist-Angul, Odisha-759116 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagcm 1095 E (अपीलाथ" /Appellant) (""यथ" / Respondent) .. "नधा"रती क" ओर से /Assessee By : Shri K.K.Bal, Ar राज"व क" ओर से /Revenue By : Shri Subhendu Dutta, Citdr सुनवाई क" तार"ख / Date Of Hearing : 28/08/2018 घोषणा क" तार"ख/Date Of Pronouncement 31/08/2018 आदेश / O R D E R Per Shri Pavan Kumar Gadale, Jm: These Are The Appeals Filed By The Assessee Against The Separate Orders Of Cit(A)-1&3, Bhubaneswar, Dated 28.04.2016, 04.11.2016 & 04.12.2017 Passed In I.T.Appeal Nos.0120/2014-15, 0472/15-16 & 0254/16-17, For The Assessment Years 2011-2012, 2013-2014 & 2014- 2015. 2. Since Issues The Above Appeals Are Common, Therefore, They Are Heard Together & Disposed Off By This Consolidated Order. For The Sake Of Convenience We Shall Take Up Assessee’S Appeal I.E. Ita No.429/Ctk/2016 For Assessment Year 2011-2012 & The Grounds & Facts Mentioned Therein, Wherein The Assessee Has Raised The Following Grounds Of Appeal :- Ground Of Appeal • We Are Not Agreeing With The Computation Of Tax On Interest Earn By Company Made By Assessing Officer. • During The Assessment, The Cases We Submitted To Justify Our Claim (As Mentioned In Statement Of Facts) Has Not Been Paid Any Emphasis For Deciding The Case By The A.0 & Cit (Appeal- 3),Bhubaneswar. On The Other Hand The A.0 & Cit (Appeal-3) Finally Imposed His Decision Based On The Facts Of Alkali Tuticorin Chem. & Fertilizers Ltd. In Which It Has Earned Interest On The Funds, Were Borrowed Funds Only

For Appellant: Shri K.K.Bal, ARFor Respondent: Shri Subhendu Dutta, CITDR

…11-12). • We are genuine in the eye of law and followed valid procedure for computation of tax for refund as per laws. • In preview of the case reference mentioned by AO & CIT (Appeal-3) regarding Tuticorin Alkali Chemicals and Fertilizers Ltd v. CIT (1997) 227 ITR 172 (SC). The said company has borrowed funds and utilized to in short term deposits to earn interests with the bank which is difficult to follow the reasoning of earning income on such capital receipts. Whereas in our case the money which was deposited, is the amount contributed by the shareholders towards Equity Share Capital for the purpose strict…

Mjsj Coal Limited, Angul vs. ITO, Ward-2, Dhenkanal

Appeals of the assessee are allowed

ITA 429/CTK/2016[2011-12]Status: DisposedITAT Cuttack31 Aug 2018AY 2011-12

Bench: Shri N.S.Saini, Am & Shri Pavan Kumar Gadale, Jm आयकर अपील सं./Ita Nos.429/Ctk/2016, 68/Ctk/2017 & 107/Ctk/2018 ("नधा"रण वष" / A.Ys :2011-2012, 2013-2014 & 2014-2015) Mjsj Coal Limited, Vs. Ito, Ward-2, Dhenkanal / At/Po:Balanda, Talcher, Ito, Ward-1(3), Bhubaneswar Dist-Angul, Odisha-759116 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagcm 1095 E (अपीलाथ" /Appellant) (""यथ" / Respondent) .. "नधा"रती क" ओर से /Assessee By : Shri K.K.Bal, Ar राज"व क" ओर से /Revenue By : Shri Subhendu Dutta, Citdr सुनवाई क" तार"ख / Date Of Hearing : 28/08/2018 घोषणा क" तार"ख/Date Of Pronouncement 31/08/2018 आदेश / O R D E R Per Shri Pavan Kumar Gadale, Jm: These Are The Appeals Filed By The Assessee Against The Separate Orders Of Cit(A)-1&3, Bhubaneswar, Dated 28.04.2016, 04.11.2016 & 04.12.2017 Passed In I.T.Appeal Nos.0120/2014-15, 0472/15-16 & 0254/16-17, For The Assessment Years 2011-2012, 2013-2014 & 2014- 2015. 2. Since Issues The Above Appeals Are Common, Therefore, They Are Heard Together & Disposed Off By This Consolidated Order. For The Sake Of Convenience We Shall Take Up Assessee’S Appeal I.E. Ita No.429/Ctk/2016 For Assessment Year 2011-2012 & The Grounds & Facts Mentioned Therein, Wherein The Assessee Has Raised The Following Grounds Of Appeal :- Ground Of Appeal • We Are Not Agreeing With The Computation Of Tax On Interest Earn By Company Made By Assessing Officer. • During The Assessment, The Cases We Submitted To Justify Our Claim (As Mentioned In Statement Of Facts) Has Not Been Paid Any Emphasis For Deciding The Case By The A.0 & Cit (Appeal- 3),Bhubaneswar. On The Other Hand The A.0 & Cit (Appeal-3) Finally Imposed His Decision Based On The Facts Of Alkali Tuticorin Chem. & Fertilizers Ltd. In Which It Has Earned Interest On The Funds, Were Borrowed Funds Only

For Appellant: Shri K.K.Bal, ARFor Respondent: Shri Subhendu Dutta, CITDR

…11-12). • We are genuine in the eye of law and followed valid procedure for computation of tax for refund as per laws. • In preview of the case reference mentioned by AO & CIT (Appeal-3) regarding Tuticorin Alkali Chemicals and Fertilizers Ltd v. CIT (1997) 227 ITR 172 (SC). The said company has borrowed funds and utilized to in short term deposits to earn interests with the bank which is difficult to follow the reasoning of earning income on such capital receipts. Whereas in our case the money which was deposited, is the amount contributed by the shareholders towards Equity Share Capital for the purpose strict…

Ambuja Cement India P.Ltd, Mumbai vs. Asst CIT Cir 3(1), Mumbai

In the result appeal of the assessee is allowed as indicated above

ITA 2600/MUM/2014[2005-06]Status: DisposedITAT Mumbai27 Aug 2018AY 2005-06

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.2600/Mum/2014 (नििाारण वर्ा / Assessment Year : 2005-06)

For Appellant: Shri. Soumen Adak &For Respondent: Shri Satish Chandra Rajore
Section 143Section 143(3)Section 147Section 14ASection 234B

…come earned on bank fixed deposits, out of surplus funds [or even out of borrowed funds] under the head "Income from other sources" has reached to finality as per number of judicial decisions. In the case of Tuticorin Alkali Chemicals a Fertilizers Ltd (1997) 227 ITR 172 (SC) the Hon'ble Supreme Court had held that interest on fixed deposits [out of investment of borrowed funds] prior to commencement of business is assessable u/s 56. The ratio of this decision was again approved by the Hon'ble Supreme Court in the case of Autocast Ltd [2001] 248 ITR 110 (SC) wherein it was held that interest earned on short term…

M/S H.P. Power Corporation Ltd, Shimla vs. DCIT, Shimla

In the result, the appeal of the Revenue is dismissed and the appeal of the assessee is partly allowed

ITA 948/CHANDI/2017[2014-15]Status: DisposedITAT Chandigarh07 Aug 2018AY 2014-15

Bench: Ms. Diva Singh & Ms. Annapurna Gupta

For Appellant: Shri Vishal Mohan, AdvFor Respondent: Dr. Gulshan Raj, CIT DR

…reated as its business income and after claiming expenses against the same, returned loss. The Assessing Officer after elaborate discussion and relying on judgment of the Hon'ble Supreme Court in Tuticorin Alkali Chemicals & fertilizers Ltd. Vs. CIT (1997) 227 ITR 172 (SC) Apex Court, held the gross interest earned as assessable under the head income from other sources. Further in the absence of relevant details/bills /vouchers of expenses claimed by the assessee, to ascertain the exact amount which related to the earning of income or related to the functioning of the offices, the A.O. held that 10% of the…

DCIT, Shimla vs. M/S Hp Power Corporation Ltd., Shimla

In the result, the appeal of the Revenue is dismissed and the appeal of the assessee is partly allowed

ITA 942/CHANDI/2017[2014-15]Status: DisposedITAT Chandigarh07 Aug 2018AY 2014-15

Bench: Ms. Diva Singh & Ms. Annapurna Gupta

For Appellant: Shri Vishal Mohan, AdvFor Respondent: Dr. Gulshan Raj, CIT DR

…reated as its business income and after claiming expenses against the same, returned loss. The Assessing Officer after elaborate discussion and relying on judgment of the Hon'ble Supreme Court in Tuticorin Alkali Chemicals & fertilizers Ltd. Vs. CIT (1997) 227 ITR 172 (SC) Apex Court, held the gross interest earned as assessable under the head income from other sources. Further in the absence of relevant details/bills /vouchers of expenses claimed by the assessee, to ascertain the exact amount which related to the earning of income or related to the functioning of the offices, the A.O. held that 10% of the…

International Coal Ventures Pvt. Ltd., Delhi vs. ITO, New Delhi

In the result, appeal is allowed

ITA 3689/DEL/2017[2013-14]Status: DisposedITAT Delhi30 Jul 2018AY 2013-14

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2013-14 International Coal Ventures Pvt. Ito, Ward- 12(3), Ltd., New Delhi. 20Th Floor, Scope Minar, Vs. Core-2, North Tower, Laxmi Nagar, Delhi.

For Appellant: Shri S. K. Goyal, CA

…f the CIT(A)- 4, New Delhi relating to assessment year 2013-14. 2. The only effective ground raised by the assessee reads as under :- “The learned CIT has erred in holding that decision of the Supreme Court in Tuticorin Alkalies Chemicals & Fertilizers Ltd., 227 ITR 172 would apply to interest earned on deposits of temporarily surplus for a new unit being established which is a receipt of Capital nature resulting in abatement of Expenses During Construction, including the interest on borrowings for the new unit, Capitalized-during the period 2 of setup of industry rather than the subsequent decision of the Supr…

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

In the result appeal of the Revenue is dismissed

ITA 909/MUM/2017[2013-14]Status: DisposedITAT Mumbai25 Jul 2018AY 2013-14

Bench: Shri G Manjunatha & Shri Ravish Soodassessment Year : 2013-14 The Dy Cit- 14(1)(2), M/S. Commtel Networks Pvt. Ltd., Mumbai 23, White Castle, Vs. 34-35, Union Park, Chembur, Mumbai 400 071. Pan Aaacc8966G (Appellant) (Respondent)

For Appellant: Shri Saurabh DeshpandeFor Respondent: Shri Devendra Jain
Section 143(3)

…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.…

DCIT Cen Cir 1(2), Mumbai vs. Sears Construction P.Ltd, Mumbai

The appeal of the Revenue is dismissed

ITA 6975/MUM/2016[2012-13]Status: DisposedITAT Mumbai25 Jul 2018AY 2012-13

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2012-13 Dcit, M/S. Sears Construction Central Circle-1(2), बनाम/ Pvt. Ltd. Room No.906, Pratishtha 514, Dalamal Towers, Vs. Bhavan, 10Th Floor, Old 211, Nariman Point, Cgo Building Annexe, Mumbai-400020 Mumbai-400020 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aaacs5289E

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, जे, मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “J”, MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी एन. के. "धान, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri N.K. Pradhan, Accountant Member Assessment Year: 2012-13 DCIT, M/s. Sears Construction Central Circle-1(2), बनाम/ Pvt. Ltd. Room No.906, Pratishtha 514, Dalamal Towers, Vs. Bhavan, 10th Floor, Old 211, Nariman Point, CGO Building Annexe, Mumbai-400020 Mumbai-400020 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. AAACS5289E राज"व क" ओर से / Revenue by Shri C.S. Gulati CIT-DR "नधा"रती…

M/S Jaypee Powergrid Ltd.M, New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 5489/DEL/2013[2009-10]Status: DisposedITAT Delhi24 Jul 2018AY 2009-10

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastavaassessment Year: 2009-10

For Appellant: Shri Anil Chopra, FCAFor Respondent: Shri Amit Jain, Sr. DR

…ame as income from other sources. 2.2 On appeal before the Ld. Commissioner of Income Tax (A), the Ld. C.I.T. (A) confirmed the addition by following the judgment of the Hon’ble Apex Court in the case of Tuticorin Chemicals and Fertilizers Ltd. reported in 227 ITR 172 (SC). 2.3 Now, the assessee is in appeal before the ITAT against the confirmation of the addition by the Ld. Commissioner of Income Tax (A). The grounds raised by the assessee are as under:- 3 Assessment year 2009-10 “That the learned CIT(A) has erred in assessing the interest of Rs. 3,40,52,432 accruing on FDRs as income from other sources,…

M/S. Shristi Hotel Pvt. Ltd., Kolkata vs. DCIT, Circle - 8(2), Kolkata

In the result, the appeal of the assessee is allowed

ITA 395/KOL/2018[2012-13]Status: DisposedITAT Kolkata18 Jul 2018AY 2012-13

Bench: Shri P.M. Jagtap, Am & Shri A. T. Varkey, Jm]

Section 143(3)Section 57

…tion that the "deposit of share capital has no or very remote connection with setting up of plant and machinery" . The Tribunal further observed that it was an independent income earned in a similar fashion as was the case in Tuticorin Alkali Chemicals [1997] 227 ITR 172 (SC). 11. In our opinion, the Tribunal has misconstrued the ratio of the judgment of the Supreme Court in the case of Tuticorin Alkali Chemicals [J997} 227 ITR 172 and that of Bokaro Steel Ltd. [J999] 236 ITR 315 . The test which permeates through the judgment of the Supreme Court in Tuticorin Alkali Chemicals [1997] 227 ITR 172 is that if funds…

S.C.Brothers, Mumbai vs. DCIT Cir 24(3), Mumbai

In the result this ground of appeal is allowed

ITA 2992/MUM/2014[2009-10]Status: DisposedITAT Mumbai13 Jul 2018AY 2009-10

Bench: Shri B.R. Baskaran & Shri Pawan Singhm/S S C Brothers, Acit Circle-24(3) C.T.S No. 201, Raheja Mumbai. Titanium Western Express Highway, Goregaon (E), Vs. Mumbai-400063 Pan: Aarfs6197F Appellant Respondent M/S S C Brothers, Acit Circle-24(3) C.T.S No. 201, Raheja Mumbai. Titanium Western Express Highway, Goregaon (E), Vs. Mumbai-400063 Pan: Aarfs6197F Appellant Respondent M/S S C Brothers, Acit Circle-31(3) C.T.S No. 201, Raheja Mumbai. Titanium Western Express Highway, Goregaon (E), Vs. Mumbai-400063 Pan: Aarfs6197F Appellant Respondent Appellant By : Dr. K. Shivram Sr Advocate With Ms. Neelam Jadhav Advocate Respondent By : Shri V. Justin (Dr) Date Of Hearing : 06.06.2018 Date Of Pronouncement: 13.07.2018 Order Per Pawan Singh;

For Appellant: Dr. K. Shivram Sr Advocate with Ms. Neelam Jadhav AdvocateFor Respondent: Shri V. Justin (DR)
Section 143(3)Section 253Section 37

…e Revenue relied upon the decision of Bombay High Court in case of CIT ITA No. 2992 & 2993 Mum 14 & 6030 Mum 2017 - M/s S C Brothers v. Amritaben R. Shah (238 ITR 777) (Bom), decision of Supreme Court in Tuticorin Alkali Chemicals and Fertilizers vs. CIT (227 ITR 172 (SC). 5. We have considered the rival submission of the parties and have gone through the orders of authorities below. The Assessing Officer while framing assessment noted that the assessee claimed interest income as ‘Business Income’ instead of ‘ Income from Other Sources’. The interest income consist of interest on Fixed Deposits of Rs.21,00…

Shri Ritesh Agarwal, Jaipur vs. Deputy Commissioner of Income Tax, Jaipur

In the result, appeal of the assessee is allowed

ITA 418/JPR/2018[2014-15]Status: DisposedITAT Jaipur09 Jul 2018AY 2014-15
For Appellant: Shri S.L. Poddar and Ms Isha Kanungo (Advocates)For Respondent: Shri Varinder Mehta (CIT) fu/kZkfjrh dh vksj ls@
Section 132Section 132(4)Section 143(3)Section 153B(1)(b)Section 271A

…rofits and gains of business. That does not mean that until and unless the assessee commences its business, its income from any other source will not be taxed as held by the Hon’ble Supreme Court in the case of Tuticorin Alkali & Chemicals Ltd. Vs. CIT (1997) 227 ITR 172 (SC). It has been further held that when the question is whether a receipt of money is taxable or not or whether certain deduction from that receipt is principles of law and not in accordance with accountancy practice. Further, the Hon’ble Apex Court held that the question as to whether a principal receipt is of the nature of income and falls wit…

Shri Suresh Chand Mittal, Jaipur vs. Deputy Commissioner of Income Tax, Jaipur

In the result, appeal of the assessee is allowed

ITA 931/JPR/2017[2014-15]Status: DisposedITAT Jaipur02 Jul 2018AY 2014-15

Bench: Or At The Time Of Hearing.”

For Appellant: Shri S.L. Poddar and Ms Isha Kanungo (Advocates)For Respondent: Smt. Seema Meena (JCIT)
Section 132(4)Section 143(3)Section 153ASection 271(1)(c)Section 271ASection 274Section 80C

…rofits and gains of business. That does not mean that until and unless the assessee commences its business, its income from any other source will not be taxed as held by the Hon’ble Supreme Court in the case of Tuticorin Alkali & Chemicals Ltd. Vs. CIT (1997) 227 ITR 172 (SC). It has been further held that when the question is whether a receipt of money is taxable or not or whether certain deduction from that receipt is principles of law and not in accordance with accountancy practice. Further, the Hon’ble Apex Court held that the question as to whether a principal receipt is of the nature of income and falls wit…

Kgl Network (P) Ltd., Delhi vs. ACIT, Circle- 14(2), New Delhi

ITA 301/DEL/2018[2014-15]Status: DisposedITAT Delhi02 Jul 2018AY 2014-15

Bench: Shri Bhavnesh Saini & Shri L.P. Sahu

For Appellant: Shri Priyansh Jain, C.A. &For Respondent: Shri Vijay Verma, CIT-D.R
Section 234ASection 40Section 40A(3)Section 44B

…hat the issue shall have to be decided according to principles of Law and not in accordance with the Accounting Practice and relied upon the decision of the Hon’ble Apex Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd., reported in (1997) 227 ITR 172 (SC). The assessment order passed by the A.O. under section 143(3) is cryptic in nature and notice issued under section 133(6) would not help the assessee- company. It is not clear whether sample invoice, airway bills were provided before A.O. The bills referred to by the Learned Counsel for the Assessee, at the most, establish that assessee-…

Mahindra World City Developers Ltd., Chennai vs. ACIT, Chennai

In the result, the corresponding grounds of the assessee are

ITA 2086/CHNY/2016[2012-13]Status: DisposedITAT Chennai27 Jun 2018AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकरअपीलसं/.I.T.A. Nos. 2084, 2085 & 2086/Chny/2016 "नधा"रणवष"/Assessment Years : 2010-11 To 2012-13

For Respondent: Mrs. Ruby George, CIT
Section 14A

…st of the assets in the absence of any statutory definition or other indication to the contrary." 16.9 The learned counsel for the revenue relied upon the judgment of the Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172 to buttress her submission that accountancy principles cannot override the provisions of the Act. This proposition is unassailable. One cannot take resort to a principle or rule of accountancy when the Act provides specifically for the situation at hand. But when the situation is one where there is no definitive provision, a Court can take resort…

Mahindra World City Developers Ltd., Chennai vs. ACIT, Chennai

In the result, the corresponding grounds of the assessee are

ITA 2085/CHNY/2016[2011-12]Status: DisposedITAT Chennai27 Jun 2018AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकरअपीलसं/.I.T.A. Nos. 2084, 2085 & 2086/Chny/2016 "नधा"रणवष"/Assessment Years : 2010-11 To 2012-13

For Respondent: Mrs. Ruby George, CIT
Section 14A

…st of the assets in the absence of any statutory definition or other indication to the contrary." 16.9 The learned counsel for the revenue relied upon the judgment of the Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172 to buttress her submission that accountancy principles cannot override the provisions of the Act. This proposition is unassailable. One cannot take resort to a principle or rule of accountancy when the Act provides specifically for the situation at hand. But when the situation is one where there is no definitive provision, a Court can take resort…