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

DCIT, CC-2(2), Kolkata vs. Amit Agarwal, Guwahati

In the result, the appeal of the revenue is dismissed

ITA 1471/KOL/2015[2013-14]Status: DisposedITAT Kolkata14 Mar 2018AY 2013-14

Bench: Hon’Ble Shri Aby. T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 1471/Kol/2015 Assessment Year : 2013-14 Dcit,Cc-2(2), Kolkata -Vs- Amit Agarwal [Pan: Abwpa 7376 C] (Appellant) (Respondent) I.T.A No. 1475/Kol/2015 Assessment Year : 2013-14 Dcit,Cc-2(2), Kolkata -Vs- Madan Lal Beswal [Pan: Adbpb 8910 G] (Appellant) (Respondent) I.T.A No. 1476/Kol/2015 Assessment Year : 2013-14 Dcit,Cc-2(2), Kolkata -Vs- Manoj Beswal [Pan: Adbpb 8909 P] (Appellant) (Respondent)

For Appellant: Shri A.K.Tiwari, CITFor Respondent: Shri M.D.Shah, AR
Section 132Section 143(3)Section 2Section 271ASection 274

…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…

M/S.Global Entropolis (Vizag)(P) Ltd., Bangalore vs. Deputy Commissioner of Income-Tax, Bangalore

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

ITA 2082/BANG/2016[2012-13]Status: DisposedITAT Bangalore26 Feb 2018AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raom/S.Global Entropolis (Vizag) (P) Ltd. No.40/43, 8Th Main, 4Th Cross, Sadashivnagar, Bengaluru-560080. … Appellant Pan:Aadcg1109J

For Appellant: Shri C.Ananthan, CAFor Respondent: Shri Pramod Kumar Singh, CIT(DR)
Section 143(3)

…t income earned should be treated as part of business income and set off against interest expenditure. Reliance in this regard was placed on the decision of the Hon’ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172. As regards addition on account of difference in the recognition of income, following the percentage of completion method, the only submission made by the learned AR of the assessee is that for the purpose of computing income following percentage of completion of method, the AO had considered interest as a part of expenditure incurred up to t…

DCIT, Cen. Cir-2(2), Kolkata vs. Subhas Candra Agarwala & Sons, Guwahati

In the result, the appeal of the revenue is dismissed

ITA 1470/KOL/2015[2013-14]Status: DisposedITAT Kolkata19 Feb 2018AY 2013-14

Bench: Hon’Ble Shri M.Balaganesh, Am & Hon’Ble Shri S.S.Viswanethra Ravi, Jm] I.T.A No. 1470/Kol/2015 Assessment Year : 2013-14 Dcit, Cc-2(2), Kolkata -Vs- Subhas Chandra Agarwala & Sons (Huf) [Pan: Aahhs 0407 G] (Appellant) (Respondent)

For Appellant: Shri G. Hangshing, CITFor Respondent: Shri Miraj D. Shah, AR
Section 132Section 132(4)Section 143(3)Section 271ASection 274

…il 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 9 10 Subhas Chandra Agarwala & Sons (HUF) A.Yr. 2013-14 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…

DCIT, CC-2(2), Kolkata vs. Manish Agarwala, Guwahati

In the result, the appeal of the revenue is dismissed

ITA 1479/KOL/2015[2013-14]Status: DisposedITAT Kolkata09 Feb 2018AY 2013-14

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 132Section 132(4)Section 143(3)Section 271ASection 274

…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…

The ACIT, Eluru vs. M/S. the District Co - Operative Central Bank Ltd., Eluru

In the result, the appeals filed by the assessee in ITA No

ITA 269/VIZ/2015[2011-12]Status: DisposedITAT Visakhapatnam25 Jan 2018AY 2011-12

Bench: Shri V. Durga Rao & Shri D.S. Sunder Singh

Section 133ASection 143(1)Section 147Section 148Section 36(1)(v)Section 40A(7)(b)

…d by the assessee, the A.O. viewed that the interest on NPA required to be taken as income and relied on the decisions of Hon’ble Supreme Court/High Court in the following cases and brought to tax: 1. Tuticorin Alkali Chemicals and Fertilizers Ltd. Vs. CIT 227 ITR 172 (SC) 2. 37 ITR 66 (SC) Indian Molaysis Company Private Ltd. 3. Shree Sajjan Mills Private Limted 156 ITR 585 4. Mysore Lamps 185 ITR 96 (KR) 23. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and the Ld. CIT(A) confirmed the addition made by the A.O. While confirming the addition of the A.O., the Ld. CIT(A) he…

The District Co-Operative Central Bank Ltd., Eluru vs. The ACIT, Eluru

In the result, the appeals filed by the assessee in ITA No

ITA 524/VIZ/2014[2010-11]Status: DisposedITAT Visakhapatnam25 Jan 2018AY 2010-11

Bench: Shri V. Durga Rao & Shri D.S. Sunder Singh

Section 133ASection 143(1)Section 147Section 148Section 36(1)(v)Section 40A(7)(b)

…d by the assessee, the A.O. viewed that the interest on NPA required to be taken as income and relied on the decisions of Hon’ble Supreme Court/High Court in the following cases and brought to tax: 1. Tuticorin Alkali Chemicals and Fertilizers Ltd. Vs. CIT 227 ITR 172 (SC) 2. 37 ITR 66 (SC) Indian Molaysis Company Private Ltd. 3. Shree Sajjan Mills Private Limted 156 ITR 585 4. Mysore Lamps 185 ITR 96 (KR) 23. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and the Ld. CIT(A) confirmed the addition made by the A.O. While confirming the addition of the A.O., the Ld. CIT(A) he…

The District Co-Operative Central Bank Ltd., Eluru vs. The ACIT, Visakhapatnam

In the result, the appeals filed by the assessee in ITA No

ITA 515/VIZ/2014[2007-08]Status: DisposedITAT Visakhapatnam25 Jan 2018AY 2007-08

Bench: Shri V. Durga Rao & Shri D.S. Sunder Singh

Section 133ASection 143(1)Section 147Section 148Section 36(1)(v)Section 40A(7)(b)

…d by the assessee, the A.O. viewed that the interest on NPA required to be taken as income and relied on the decisions of Hon’ble Supreme Court/High Court in the following cases and brought to tax: 1. Tuticorin Alkali Chemicals and Fertilizers Ltd. Vs. CIT 227 ITR 172 (SC) 2. 37 ITR 66 (SC) Indian Molaysis Company Private Ltd. 3. Shree Sajjan Mills Private Limted 156 ITR 585 4. Mysore Lamps 185 ITR 96 (KR) 23. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and the Ld. CIT(A) confirmed the addition made by the A.O. While confirming the addition of the A.O., the Ld. CIT(A) he…

The ITO, Ward-2, Eluru vs. M/S the District Co-Operative Central Bank Ltd., Eluru

In the result, the appeals filed by the assessee in ITA No

ITA 78/VIZ/2012[2008-09]Status: DisposedITAT Visakhapatnam25 Jan 2018AY 2008-09

Bench: Shri V. Durga Rao & Shri D.S. Sunder Singh

Section 133ASection 143(1)Section 147Section 148Section 36(1)(v)Section 40A(7)(b)

…d by the assessee, the A.O. viewed that the interest on NPA required to be taken as income and relied on the decisions of Hon’ble Supreme Court/High Court in the following cases and brought to tax: 1. Tuticorin Alkali Chemicals and Fertilizers Ltd. Vs. CIT 227 ITR 172 (SC) 2. 37 ITR 66 (SC) Indian Molaysis Company Private Ltd. 3. Shree Sajjan Mills Private Limted 156 ITR 585 4. Mysore Lamps 185 ITR 96 (KR) 23. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and the Ld. CIT(A) confirmed the addition made by the A.O. While confirming the addition of the A.O., the Ld. CIT(A) he…

M/S the District Co-Operative Central Bank Ltd., Eluru vs. The ITO, Ward-2, Eluru

In the result, the appeals filed by the assessee in ITA No

ITA 50/VIZ/2012[2008-09]Status: DisposedITAT Visakhapatnam25 Jan 2018AY 2008-09

Bench: Shri V. Durga Rao & Shri D.S. Sunder Singh

Section 133ASection 143(1)Section 147Section 148Section 36(1)(v)Section 40A(7)(b)

…d by the assessee, the A.O. viewed that the interest on NPA required to be taken as income and relied on the decisions of Hon’ble Supreme Court/High Court in the following cases and brought to tax: 1. Tuticorin Alkali Chemicals and Fertilizers Ltd. Vs. CIT 227 ITR 172 (SC) 2. 37 ITR 66 (SC) Indian Molaysis Company Private Ltd. 3. Shree Sajjan Mills Private Limted 156 ITR 585 4. Mysore Lamps 185 ITR 96 (KR) 23. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and the Ld. CIT(A) confirmed the addition made by the A.O. While confirming the addition of the A.O., the Ld. CIT(A) he…

M/S the District Co-Operative Central Bank Ltd., Eluru vs. The ITO, Ward-2, Eluru

In the result, the appeals filed by the assessee in ITA No

ITA 49/VIZ/2012[2007-08]Status: DisposedITAT Visakhapatnam25 Jan 2018AY 2007-08

Bench: Shri V. Durga Rao & Shri D.S. Sunder Singh

Section 133ASection 143(1)Section 147Section 148Section 36(1)(v)Section 40A(7)(b)

…d by the assessee, the A.O. viewed that the interest on NPA required to be taken as income and relied on the decisions of Hon’ble Supreme Court/High Court in the following cases and brought to tax: 1. Tuticorin Alkali Chemicals and Fertilizers Ltd. Vs. CIT 227 ITR 172 (SC) 2. 37 ITR 66 (SC) Indian Molaysis Company Private Ltd. 3. Shree Sajjan Mills Private Limted 156 ITR 585 4. Mysore Lamps 185 ITR 96 (KR) 23. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and the Ld. CIT(A) confirmed the addition made by the A.O. While confirming the addition of the A.O., the Ld. CIT(A) he…

The ACIT., Circle - 1, Eluru vs. M/S the District Co-Operative Central Bank Ltd., Eluru

In the result, the appeals filed by the assessee in ITA No

ITA 476/VIZ/2012[2009-2010]Status: DisposedITAT Visakhapatnam25 Jan 2018AY 2009-2010

Bench: Shri V. Durga Rao & Shri D.S. Sunder Singh

Section 133ASection 143(1)Section 147Section 148Section 36(1)(v)Section 40A(7)(b)

…d by the assessee, the A.O. viewed that the interest on NPA required to be taken as income and relied on the decisions of Hon’ble Supreme Court/High Court in the following cases and brought to tax: 1. Tuticorin Alkali Chemicals and Fertilizers Ltd. Vs. CIT 227 ITR 172 (SC) 2. 37 ITR 66 (SC) Indian Molaysis Company Private Ltd. 3. Shree Sajjan Mills Private Limted 156 ITR 585 4. Mysore Lamps 185 ITR 96 (KR) 23. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and the Ld. CIT(A) confirmed the addition made by the A.O. While confirming the addition of the A.O., the Ld. CIT(A) he…

Diwakar Solar Projects Ltd., (Formerly Known As M/S. Diwakar Solar Projects Pvt.Ltd.), Hyd, Hyderabad vs. ITO, Ward-17(1), Hyd, Hyderabad

In the result, both the appeals are allowed for statistical purposes

ITA 1219/HYD/2016[2013-14]Status: DisposedITAT Hyderabad24 Jan 2018AY 2013-14

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Shri J. Siri Kumar
Section 142(1)Section 143(1)Section 4

…e expenses do not directly relate to or have been incurred to earn such interest, the same cannot be set off against one another. The AO relying on the judgment of the Hon'ble Apex court in the case of Tutocorin Alkelic Chemicals & Fertilizers Ltd. CIT (1997) 227 ITR 172, brought the amount of Rs. 9,85,62,240/- being interest on deposit, to tax as income of the company for the year under consideration as "income from other sources". 3. Aggrieved by the order of AO, the assessee preferred an appeal before the CIT(A). 4. Before the CIT(A), the assessee filed written submissions and therein, inter-alia, stated as…

Diwakar Solar Projects Ltd., (Formerly Known As M/S. Diwakar Solar Projects Pvt.Ltd.), Hyd, Hyderabad vs. ITO, Ward-17(1), Hyd, Hyderabad

In the result, both the appeals are allowed for statistical purposes

ITA 1218/HYD/2016[2012-13]Status: DisposedITAT Hyderabad24 Jan 2018AY 2012-13

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Shri J. Siri Kumar
Section 142(1)Section 143(1)Section 4

…e expenses do not directly relate to or have been incurred to earn such interest, the same cannot be set off against one another. The AO relying on the judgment of the Hon'ble Apex court in the case of Tutocorin Alkelic Chemicals & Fertilizers Ltd. CIT (1997) 227 ITR 172, brought the amount of Rs. 9,85,62,240/- being interest on deposit, to tax as income of the company for the year under consideration as "income from other sources". 3. Aggrieved by the order of AO, the assessee preferred an appeal before the CIT(A). 4. Before the CIT(A), the assessee filed written submissions and therein, inter-alia, stated as…

Addl CIT RG 24(1), Mumbai vs. Arun Damji Gada, Mumbai

In the result, appeal filed by the Revenue is dismissed whereas appeal filed by the assessee is allowed in part in terms indicated hereinabove

ITA 105/MUM/2011[2007-08]Status: DisposedITAT Mumbai19 Jan 2018AY 2007-08

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Shri Arun Damji Gada Vs. Acit 24(1) A-103, God Gift Adarsha Pratyshakar Bhawan Dugdhalaya Lane, Bandra Kurla Complex Adarsh Nagar, Adarsh Dhughala Bandra (E) Lane, Malad (W) Mumbai – 400 050 Mumbai – 400 064 Pan/Gir No.Aabpg3923F Appellant) .. Respondent) Acit 24(1) Vs. Shri Arun Damji Gada C-13 R/Nop, 503 A-103, God Gift Adarsha Pratyshakar Bhawan Dugdhalaya Lane, Bandra Kurla Complex Adarsh Nagar, Adarsh Bandra (E) Dhughala Lane, Malad (W) Mumbai – 400 050 Mumbai – 400 064 Pan/Gir No. Aabpg3923F Appellant) .. Respondent)

Section 143(3)Section 37(1)Section 80I

…f entries or its presentation cannot solely determinethe timing & incidence of and amount of taxation. To this extent the judgements of the Apex court in cases of Kedamath Jute Mfg Co Ltd vs CIT (1971) 82 ITR 363 (Supreme Court) , Tuticorin Alkalies Chemicals 227 ITR 172 (SC) and Sutlej Cotton Mills 116 ITR 1 (SC) are respected and to be followed without any qualifications to them in spirit and essence both. The appellant has claimed that if his projects are to be taxed on substantial completion then his expenditure of Rs.3.80 crores estimated on the basis of similar activities in other project of the appellant s…

Enlighten Lifestyle Ltd, Mumbai vs. ITO 12(3)(2), Mumbai

In the result, this appeal by the assessee stands allowed

ITA 3436/MUM/2017[2012-13]Status: DisposedITAT Mumbai08 Jan 2018AY 2012-13

Bench: Shri Shamim Yahyaआयकर अपील सं./I.T.A. No. 3436/Mum/2017 ("नधा"रण वष" / Assessment Year:2012-13) M/S. Enlighten Lifestyle Limited Ito-12(3)(2), (Erstwhile Kornerstone Retail Limited) Mumbai बनाम/ B-101, Synthofine Estate, Vs. Opp. Virnani Industrial Estate, Goregaon (E), Mumabi-400 063 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacck 5467 D (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Chaitanya Joshi & Ms. Ayushi Madani ""यथ" क" ओर से/Respondent By : Ms. N. Hemalatha सुनवाई क" तार"ख / : 08.11.2017 Date Of Hearing घोषणा क" तार"ख / : 08.01.2018 Date Of Pronouncement आदेश / O R D E R Per Shamim Yahya, A. M.: This Appeal By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-20, Mumbai Dated 02.02.2017 & Pertains To The Assessment Year 2012-13. 2. The First Issue Raised Relates To The Disallowance Of Interest Income From Fixed Deposits Amounting To Rs.40,10,535/-, As Income From Other Sources As Against The Income From Profit & Gains From Business & Profession Treated By The Assessee.

For Appellant: Shri Chaitanya Joshi &For Respondent: Ms. N. Hemalatha

…ficer held that the assessee had received interest of Rs.40,10,535/- on the FD and the same needed to be taxed under the head income from other sources. Relying on the decision of Apex Court in the case of Tuticorin Alkali Chemical & Fertilizers reported in 227 ITR 172, the interest received on FD was taxed under the head income from other sources. 4. Upon the assessee’s appeal, the ld. Commissioner of Income Tax (Appeals) confirmed the action of the Assessing Officer. 5. Against this order, the assessee is in appeal before the ITAT. 3 M/s. Enlighten Lifestyle Limited vs. ITO 6. I have heard both the counse…

DCIT, Cir-2(1), Kolkata vs. M/S Kolkata Metro Rail Corporation Ltd., Kolkata

In the result, both the appeals filed by Revenue (ITA No

ITA 49/KOL/2016[2011-2012]Status: DisposedITAT Kolkata22 Dec 2017AY 2011-2012

Bench: Shri S.S. Viswanethra Ravi, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1362/Kol/2015& 49/Kol/2016 (िनधा"रणवष" / Assessment Year: 2010-11& 2011-12) I.T.O Wd-2(3), Kolkata Vs. M/S Kolkata Metro Rail Corpn. Ltd. Aayakar Bhawan, P-7, Chowringhee Square, 7Th Floor, Hrbc Bhavan, 4Th& 5Th R/No.21, Kol – 69. Floor, Munshi Prem Chand Sarani, Kolkata – 700 021. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aadck 5313 J (Appellant) .. (Assessee) Appellantby : Shriarindam Bhattacharjee, Addl. Cit Assesseeby :Shri Vikash Singhal. सुनवाईकीतारीख/ Date Of Hearing : 12/10/2017 घोषणाकीतारीख/Date Of Pronouncement : 22/12/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: These Captioned Two Appeals Filed By The Revenue,Pertaining To Assessment Year 2010-11,Aredirected Against The Order Passed By The Ld Commissioner Of Income Tax (Appeals)-1,Kolkata,Which In Turn Arise Out Of Assessment Orders Passed By The Assessing Officer U/S 143(3)Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’). 2.Since These Two Appeals Relate To The Same Assessee, Different Assessment Years, Identical Issues Are Involved, Therefore, These Have Been Clubbed & Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.The Revenue’S Appeal In Ita No.1362/Kol/2015, A.Y 2010-11, Is Taken As The Lead Case. 4.The Grounds Of Appeal Raised By The Revenue (In Lead Case In Ita No.1362/Kol/2015, A.Y 2010-11) Are As Under:

For Appellant: ShriArindam Bhattacharjee, Addl. CIT
Section 143(1)Section 143(2)Section 143(3)Section 56

…rightly dealt with the issue and reversed the findings of the AO who had treated the interest earned at Rs. 54,86,324/- as “income from other sources”.We note that the ratio of the judgment of the Supreme Court in the case of Tuticorin Alkali Chemicals [1997] 227 ITR 172 and that of Bokaro Steel Ltd. [1999] 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 have been borrowed for setting up of a plant and if the funds are 'surplus' and then by virtue of that circumstance they are invested in fixed deposits the income e…

ITO, WD-2(3), Kolkata vs. M/S Kolkata Metro Rail Corporation Ltd., Kolkata

In the result, both the appeals filed by Revenue (ITA No

ITA 1362/KOL/2015[2010-2011]Status: DisposedITAT Kolkata22 Dec 2017AY 2010-2011

Bench: Shri S.S. Viswanethra Ravi, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1362/Kol/2015& 49/Kol/2016 (िनधा"रणवष" / Assessment Year: 2010-11& 2011-12) I.T.O Wd-2(3), Kolkata Vs. M/S Kolkata Metro Rail Corpn. Ltd. Aayakar Bhawan, P-7, Chowringhee Square, 7Th Floor, Hrbc Bhavan, 4Th& 5Th R/No.21, Kol – 69. Floor, Munshi Prem Chand Sarani, Kolkata – 700 021. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aadck 5313 J (Appellant) .. (Assessee) Appellantby : Shriarindam Bhattacharjee, Addl. Cit Assesseeby :Shri Vikash Singhal. सुनवाईकीतारीख/ Date Of Hearing : 12/10/2017 घोषणाकीतारीख/Date Of Pronouncement : 22/12/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: These Captioned Two Appeals Filed By The Revenue,Pertaining To Assessment Year 2010-11,Aredirected Against The Order Passed By The Ld Commissioner Of Income Tax (Appeals)-1,Kolkata,Which In Turn Arise Out Of Assessment Orders Passed By The Assessing Officer U/S 143(3)Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’). 2.Since These Two Appeals Relate To The Same Assessee, Different Assessment Years, Identical Issues Are Involved, Therefore, These Have Been Clubbed & Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.The Revenue’S Appeal In Ita No.1362/Kol/2015, A.Y 2010-11, Is Taken As The Lead Case. 4.The Grounds Of Appeal Raised By The Revenue (In Lead Case In Ita No.1362/Kol/2015, A.Y 2010-11) Are As Under:

For Appellant: ShriArindam Bhattacharjee, Addl. CIT
Section 143(1)Section 143(2)Section 143(3)Section 56

…rightly dealt with the issue and reversed the findings of the AO who had treated the interest earned at Rs. 54,86,324/- as “income from other sources”.We note that the ratio of the judgment of the Supreme Court in the case of Tuticorin Alkali Chemicals [1997] 227 ITR 172 and that of Bokaro Steel Ltd. [1999] 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 have been borrowed for setting up of a plant and if the funds are 'surplus' and then by virtue of that circumstance they are invested in fixed deposits the income e…

DCIT, New Delhi vs. M/S. Delhi International Airport Pvt. Ltd., New Delhi

In the result appeal of the revenue in ITA No

ITA 4202/DEL/2013[2007-08]Status: DisposedITAT Delhi14 Dec 2017AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishiassessment Year: 2007-08 Acit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Assessment Year: 2007-08 Dcit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Co No. 226/Del/2011 (Arising Ita No.2720/Del/2011) Assessment Year: 2007-08

For Appellant: Shri S.E. Dastur, Sr. Advocate and Shri Ankit Agrawal, CAFor Respondent: Ms. Rachna Singh, CIT(DR)
Section 143(3)Section 271(1)(c)Section 80I

…r relevant for the purpose of income tax and in support he relied upon the following judgements:- (i) Kedarnath Jute Mfg. Co. Ltd. – 82 ITR 363 (SC) (ii) Sutlej Cotton Mills Ltd. vs. CIT – 116 ITR 1 (SC) (iii) Tuticorin Alkali Chemicals &b Fertilizers Ltd. 227 ITR 172 (SC). ACIT vs. Delhi International Airport Pvt. Ltd. DCIT vs. M/s.Delhi International Airport Pvt. Ltd. & M/s.Delhi International Airport Pvt.Ltd. vs.ACIT 20. Lastly, Mr Dastur submitted that from the perusal of all the materials placed on record as well as relevant terms of the OMDA agreement it can be seen that there is no transfer of any li…

ACIT, New Delhi vs. M/S Delhi International Airport Pvt. Ltd., New Delhi

In the result appeal of the revenue in ITA No

ITA 2720/DEL/2011[2007-08]Status: DisposedITAT Delhi14 Dec 2017AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishiassessment Year: 2007-08 Acit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Assessment Year: 2007-08 Dcit, Vs. M/S. Delhi International Airport Pvt. Ltd. Circle 10(1) Udaan Bhawan, Terminal 1B, New Delhi Indira Gandhi International Airport, New Delhi. Pan No. Aaccd3570F (Appellant) (Respondent) Co No. 226/Del/2011 (Arising Ita No.2720/Del/2011) Assessment Year: 2007-08

For Appellant: Shri S.E. Dastur, Sr. Advocate and Shri Ankit Agrawal, CAFor Respondent: Ms. Rachna Singh, CIT(DR)
Section 143(3)Section 271(1)(c)Section 80I

…r relevant for the purpose of income tax and in support he relied upon the following judgements:- (i) Kedarnath Jute Mfg. Co. Ltd. – 82 ITR 363 (SC) (ii) Sutlej Cotton Mills Ltd. vs. CIT – 116 ITR 1 (SC) (iii) Tuticorin Alkali Chemicals &b Fertilizers Ltd. 227 ITR 172 (SC). ACIT vs. Delhi International Airport Pvt. Ltd. DCIT vs. M/s.Delhi International Airport Pvt. Ltd. & M/s.Delhi International Airport Pvt.Ltd. vs.ACIT 20. Lastly, Mr Dastur submitted that from the perusal of all the materials placed on record as well as relevant terms of the OMDA agreement it can be seen that there is no transfer of any li…

ITO 2(1)(4), Mumbai vs. Canara Bank Securities Ltd, Mumbai

The appeal of the Revenue is dismissed

ITA 821/MUM/2016[2008-09]Status: DisposedITAT Mumbai07 Dec 2017AY 2008-09

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2008-09 Income Tax Officer-2(1)(4), M/S Canara Bank Securities Room No.553, 5Th Floor, Ltd. बनाम/ Aayakar Bhavan, 7Th Floor, Maker Chamber-Iii, Vs. M.K. Road, Nariman Point, Mumbai-400020 Mumbai-400021 (राज"व /Revenue) ("नधा"रती /Assessee) Pan. No. Aaacg2218H

Section 115JSection 143(2)Section 143(3)Section 263Section 263oSection 56

…nt securities and treasury bills and stock market. (iv) Shipping Corporation Limited v. CIT, 240 ITR 24(Mad.) wherein Hon’ble Madras High Court following the decision of Hon’ble Supreme Court in Tuticorin Alkali Chemicals and Fertilizer Limited v. CIT, (1997) 227 ITR 172 has held that interest on short term deposit from bank is to be assessed under the head ‘Income from other sources’. In the instant case , we have held that these funds placed by the assessee company are circulating capital of the company and is not a surplus funds rather the funds are in the mode of switchover from the business of PD which has c…