Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…Hence, any income earned 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 and Fertilizers Limited v CIT [1997] 227 ITR 172, will not be attracted. The more appropriate decision in the factual situation in the present case is in Bokaro Steel Ltd [1999] 236 ITR 315 (SC). (emphasis supplied) In view of the abovementioned categorical observations of the Supreme Court, I consider that the appellant deserves the benefit of the ratio of the abovementioned Supreme Court deci…

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…Hence, any income earned 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 and Fertilizers Limited v CIT [1997] 227 ITR 172, will not be attracted. The more appropriate decision in the factual situation in the present case is in Bokaro Steel Ltd [1999] 236 ITR 315 (SC). (emphasis supplied) In view of the abovementioned categorical observations of the Supreme Court, I consider that the appellant deserves the benefit of the ratio of the abovementioned Supreme Court deci…

Nathuram Ramnarayan P. Ltd, Mumbai vs. Addl CIT 2(2), Mumbai

In the result, assessee’s appeal is partly allowed

Bench: Shri Rajendra & Shri Saktijit Deyआमकय अऩीर सं. / Ita No.2583/Mum./2011 (ननधधायण वषा / Assessment Year : 2007–08) M/S. Nathuram Ramnarayan Pvt. Ltd. Rustom Building …….………. अऩीरधथी / 29, Veer Nariman Road Appellant Mumbai 400 023 Pan – Aaacn1289P V/S Addl. Commissioner Of Income Tax ..…….………. प्रत्मथी / Range–2(2), Aayakar Bhawan Respondent 101, M.K. Road, Mumbai 400 020 ननधधारयती की ओय से / Assessee By : Shri H.S. Raheja यधजस्व की ओय से / Revenue By : Shri Samir Tekriwal सुनवधई की तधयीख / आदेश घोषणध की तधयीख / Date Of Hearing – 08.10.2015 Date Of Order – 30.10.2015

…iness has not yet started, the interest income from FDs can only be taxed under the head income from other sources. For such proposition, he relied upon the decision of the Hon'ble Supreme Court in Tuticorin Alkali Chemicals & Fertilizers Ltd. v/s CIT, [1997] 227 ITR 172 (SC), and some other case laws. As a corollary to the aforesaid conclusion in treating interest income as income from other sources, expenditure debited to the Profit & Loss account were also disallowed. Against the aforesaid decision of the Assessing Officer, the assessee preferred appeal before the first appellate authority. 5. The learned Com…

Kayagee Loparex India P.Ltd, Mumbai vs. ACIT (OSD) 8(1), Mumbai

Bench: S/Sh. Rajendra & Amit Shuklaआयकर आयकर अपील अपील संसंसंसं/.Ita No.7745 & 7746//Mum/2012,िनधा"रण िनधा"रण वष" वष"/Assessment Years-2008-09 & 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Kaygee Loparex India Pvt. Ltd. Acit(Osd) 8(1), B-28 Veera Ind. Estate,Bhukhanvala Vs Mumbai Chambers,Off Link Road, Andheri (W),Mumbai – 400 053 Pan: Aaack3962A (अपीलाथ" /Assessee) (""यथ" / Respondent) िनधा"रती िनधा"रती िनधा"रती ओर िनधा"रती ओर ओर सेसेसेसे/Assessee By ओर : Shri N. Jayendra राज"व क" ओर से/ Revenue By : Shri R.A. Dhyani सुनवाई सुनवाई सुनवाई क" सुनवाई क" क" तारीख क" तारीख तारीख / Date Of Hearing :20-10-2015 तारीख घोषणा क" तारीख / Date Of Pronouncement : 28-10-2015 आयकर आयकर अिधिनयम अिधिनयम,1961 1961 क" धारा क" धारा 254 254(1)के अ"तग"त आदेश के अ"तग"त आदेश आयकर आयकर अिधिनयम अिधिनयम क" धारा क" धारा के अ"तग"त आदेश के अ"तग"त आदेश 1961 1961 254 254 Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य राजे"" के अनुसार लेखा सद"य राजे"" के अनुसार Per Rajendra, Am- लेखा सद"य राजे"" के अनुसार लेखा सद"य राजे"" के अनुसार Challenging The Orders Dtd.23.10.2012And 29.10.2012 Of The Cit(A)-17,Mumbai,The Assessee Has Filed Appeals For The Abovementioned Two Assessment Years (Ays).During The Course Of Hearing Before Us The Authorised Representative(Ar)Fairly Conceded That Ground No.2 & 3 Are Covered Against The Assessee By The Decisions Of The Hon’Ble Supreme Court. Hence, Both The Grounds Stand Dismissed.

…आयकर आयकर आयकर अपीलीय आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, अिधकरण " ए” खंडपीठ खंडपीठ खंडपीठ मुंबई खंडपीठ मुंबई मुंबई मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-“A”,BENCH सव"ी राजे"",लेखा सद"य एवं एवं एवं अिमत शु"ल,"याियक सद"य एवं Before S/Sh. Rajendra,Accountant Member & Amit Shukla,Judicial Member आयकर आयकर अपील अपील संसंसंसं/.ITA No.7745 & 7746//Mum/2012,िनधा"रण िनधा"रण वष" वष"/Assessment Years-2008-09 & 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Kaygee Loparex India Pvt. Ltd. ACIT(OSD) 8(1), B-28 Veera Ind. Estate,Bhukhanvala Vs Mumbai Chambers,Off link Road, Andheri (W),Mumbai – 400 05…

Inventurus Knowledge Services P.Ltd, Navi Mumbai vs. ITO 5(2)(1), Mumbai

In the result appeal of the assessee company is partly allowed

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: - 2009-10 Inventurus Knowledge Services V. Income Tax Officer Pvt. Ltd. 5(2)(1), C/O. Seren Properties Pvt. Ltd. 525, Aaykar Bhavan, (Sez), Unit No. 204, Build No. 5, M.K. Road, Mindspace Airoli Camp, Plot No. Mumbai - 400 020. 3, Gat No. 95, Kalwa Trans, Thane Creek, Midc Industrial Area, Thane Belapur Road, Airoli, Navi Mumbai – 400 708. Pan/Gir No. Aabck4601P

…ied upon the Judgments of Hon’ble Supreme Court in the cases of Bacha F. Guzdar v. CIT 27 ITR 1 (SC) & CIT v. Ramkrishna Deo 35 ITR 312 (SC). Relying upon the Judgment of Hon’ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd v. CIT 227 ITR 172 (SC), the assessing officer held that accounting standard prescribed by ICAI cannot override the Act, and thus, rejected the contention of the assessee company by considering the loss as speculation loss and not allowed the set off against the income from business other than speculation business. The assessing officer also held the said mark to m…

Nationwide Pharmassist Distribution Pvt. Ltd ( Now Merged With Bigdeal Mercantile P. Ltd), Mumbai vs. ITO WD 7(1)(1)

Bench: S/Sh. Rajendra & Saktijit Deyआयकर अपील सं/.Ita No.5648 & 49/Mum/2008,& 5650/Mum/08, िनधा"रण वष"/Assessment Year-1998-99,2000-01 & 2002-03 Nationwide Pharmassist Income Tax Officer Ward 7(1)(1) Distribution Private Limited Mumbai. (Now Merged With Bigdeal Mercantile Pvt. Ltd.) Vs Nicholas Piramal Tower, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400 013. Pan: Aaacn 3346 F (अपीलाथ" /Appellant) (""थ" / Respondent) िनधा"रती ओर से/Assessee By : Shri J.D. Mistry & Shri Neeraj Seth राज" की ओर से/ Revenue By : Shri Samir Tekriwal-Dr सुनवाई की तारीख / Date Of Hearing : 08.10.2015 घोषणा की तारीख / Date Of Pronouncement : 14-10-2015 आयकर अिधिनयम,1961 1961 की धारा 254 254(1)के अ"ग"त आदेश 1961 1961 254 254 Order U/S.254(1)Of The Income-Tax Act,1961(Act) खंडपीठ के अनुसार Per Bench- Challenging The Order Dated 06.06.2008 Of Cit(A)-Vii,Mumbai,The Assessee Has Filed Appeals For The Above Mentioned Three Assessment Years.

…al or ancillary to the attainment of the main objects, that no purchase and sale /distribution of pharmaceutical products had taken place during that AY.Referring to the judgment of Glmpex (Pvt.)Ltd.(176 CTR 112) and Tuticorin Alkalies and Chemicals Pvt. Ltd.(227 ITR 172)the AO held that the interest income of Rs.50.43 lacs was assessable under the head ‘income from other sources’, that the expenditure laid out wholly and exclusively for earning the interest income would be allowable u/s. 57(iii) of the Act. The AO observed that the income chargeable to tax for the year under appeal had escaped assessment.Accordi…

Ca India Technologies Pvt. Ltd., Mumbai vs. A.C.I.T. RG. 6(2), Mumbai

The appeal of the AO stands dismissed

…e had diluted the income of the assessee for the year under appeal.He made an addition of Rs.19,96,50,209/-to the total income of the assessee.He relied on the decision of the Honble Supreme Court in the case of Tuticorin Alkali Chemicals and Fertilisers Ltd.(227 ITR 172)and held that AS did not supersede the taxing provisions. 3.1.Before the FAA,it was argued that that the AO had failed to appreciate the entire facts of the case,that until the previous year,it recognised revenue on stand-alone maintenance contracts and license fees as per contract terms,that in the current year,it had started recognising revenue…

ACIT Cir 10(1), Mumbai vs. Ca (India) Technologies P. Ltd ( Formerly Knowan As C.A. Computer Associates (I) P.Ltd, Mumbai

The appeal of the AO stands dismissed

…e had diluted the income of the assessee for the year under appeal.He made an addition of Rs.19,96,50,209/-to the total income of the assessee.He relied on the decision of the Honble Supreme Court in the case of Tuticorin Alkali Chemicals and Fertilisers Ltd.(227 ITR 172)and held that AS did not supersede the taxing provisions. 3.1.Before the FAA,it was argued that that the AO had failed to appreciate the entire facts of the case,that until the previous year,it recognised revenue on stand-alone maintenance contracts and license fees as per contract terms,that in the current year,it had started recognising revenue…

Ca (India) Technologies P Ltd`, Mumbai vs. Asst CIT 10(1), Mumbai

The appeal of the AO stands dismissed

…e had diluted the income of the assessee for the year under appeal.He made an addition of Rs.19,96,50,209/-to the total income of the assessee.He relied on the decision of the Honble Supreme Court in the case of Tuticorin Alkali Chemicals and Fertilisers Ltd.(227 ITR 172)and held that AS did not supersede the taxing provisions. 3.1.Before the FAA,it was argued that that the AO had failed to appreciate the entire facts of the case,that until the previous year,it recognised revenue on stand-alone maintenance contracts and license fees as per contract terms,that in the current year,it had started recognising revenue…