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 7(3), Mumbai vs. Wyeth Ltd ( Formerly Known As Wyeth Lederle Ltd), Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 3508/MUM/2010[2004-05]Status: DisposedITAT Mumbai09 Jun 2023AY 2004-05

Bench: Shri Vikas Awasthy, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blepfizer Limited V. Acit- Special Range 23 (Earlier Known As Wyeth Lederle Limited) [Now The Dcit-Circle 7(3)] The Capital, G-Block Aayakar Bhavan Bandra Kurla Complex Mumbai- 400020 Bandra (E), Mumbai -400012 Pan: Aaacp3334M (Appellant) (Respondent) Acit- Ltu V. M/S. Wyeth Limited 28Th Floor, Centre - 1 (Formerly Known As Wyeth Lederle Ltd) Rbc Mahindra Towers World Trade Centre 4Th Floor, A- Wing Cuffe Parade, Mumbai Dr G.M. Bhosale Road Worli, Mumbai- 400055 Pan: Aaacw2641Q (Appellant) (Respondent) Assessee Represented By : Shri Vishal Kalra Department Represented By : Smt. Sujatha Iyangar

Section 43(6)Section 80H

…of account are not determinative or conclusive and the matter is to be examined on the touchstone of provisions contained in the Act [See - Kedarnath Jute Mfg. Co. Ltd. v. CIT [1971] 82 ITR 363 (SC); Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172/93 Taxman 502 (SC); Sutlej Cotton Mills Ltd. v. CIT [1979] 116 ITR 1 (SC) and United Commercial Bank v. CIT [1999] 240 ITR 355/106 Taxman 601 (SC). 20. At the most, an inference can be drawn that by showing this expenditure in aspread over manner in the books of account, the assessee had initially intended to make such an option. However, it aban…

L & T Mhps Boilers Private Limited, Mumbai vs. ACIT 2(2)(1), Mumbai

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

ITA 4765/MUM/2017[2011-12]Status: DisposedITAT Mumbai02 Jun 2023AY 2011-12

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm L & T Mhps Boilers Private Limited Acit-2(2)(1) 2Nd Floor, L & T House, Mumbai Vs. N. M. Marg, Ballard Estate, Fort, Mumbai-400 001 Pan/Gir No. Aabcl 2635 C (Appellant) : (Respondent) &

For Appellant: Shri Nitesh JoshiFor Respondent: Smt. Shailja Rai &
Section 143(3)Section 37(1)

…. 4765 & 4767/Mum/2017 (A.Y.2011-12) eligible for the same as per the provisions of the Income Tax as the same does not come under the purview of charging section. The ld. CIT(A) relied on the decision of Tuticorin Alkali Chemical & Fertilizers Ltd. vs. CIT 227 ITR 172 (SC), wherein it was held that the accounting standard cannot overrule the statutory provisions of the IT Act. The ld. CIT(A) stated that the assessee was not eligible for foreseeable losses, as the same has not been received accrued/arisen in that year and thereby rejected the assessee’s claim on the said ground. 6. The learned Authorised Repr…

M/S. Kanpur Fertilizers & Cement Ltd., Noida vs. ITO, Noida

Appeal are allowed

ITA 308/DEL/2016[2012-13]Status: DisposedITAT Delhi30 May 2023AY 2012-13

Bench: Shri Kul Bharat & Shri Pradip Kumar Kedia[Assessment Year: 2012-13

Section 143(3)Section 234B

…"We are called upon to really decide as to whether given the facts obtaining in the assessee's case it would be covered by the line of cases which follow the ratio of the decision of the Supreme Court in Tuticorin Alkali Chemicals and Fertilizers Ltd. [1997] 227 ITR 172 or those which follow the ratio of the Supreme Court in the case of CIT v. Bokaro Steel Ltd. [1999] 236 ITR 315. At the outset, we must note that the Supreme Court in the case of Bokaro Steel Ltd. [1999] 236 ITR 315 has noticed the judgment of the Supreme Court in Tuticorin Alkali Chemicals and Fertilizers Ltd. [1997] 227 ITR 172. "In our opinion…

The Pr Commissioner of Income Tax vs. M/S Bangalore Housing Development and Investments

Appeals stand dismissed;

ITA/324/2019HC Karnataka29 May 2023

Bench: P.S.DINESH KUMAR,T.G. SHIVASHANKARE GOWDA

Section 260Section 260ASection 37(1)

…- 1 - ITA No. 324/2019 C/W ITA No. 326/2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF MAY, 2023 PRESENT THE HON'BLE MR JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR JUSTICE T.G. SHIVASHANKARE GOWDA INCOME TAX APPEAL NO. 324 OF 2019 C/W INCOME TAX APPEAL NO. 326 OF 2019 IN I.T.A No. 324/2019 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME-TAX CIT(A), 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU-560 095. 2. THE ASST. COMMISSIONER OF INCOME-TAX CIRCLE-1(2)(1), 2ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANG…

ACIT, Circle 8(2), New Delhi vs. Etawah Chakeri (Kanpur) Highway Pvt. Ltd., New Delhi

In the result, appeal of Revenue is dismissed

ITA 9200/DEL/2019[2015-16]Status: DisposedITAT Delhi25 May 2023AY 2015-16

Bench: Sh. Anil Chaturvedi & Sh. Anubhav Sharmaacit Vs. Etawah Chakeri (Kanpur) Circle – 8(2), Highway Pvt. Ltd. New Delhi Ose Commercial Block, Asset 5B, Aerocity, Hospitality, District, Igi Pan No. Aacce 8963 D Airport, New Delhi – 110 037 (Appellant) (Respondent) Assessee By Shri K. V. S. R. Krishna, C.A. Revenue By Shri Javed Akhter, Cit-D.R. Date Of Hearing: 22.05.2023 Date Of Pronouncement: 25.05.2023

Section 143(3)

…td. vs. CIT, 57 ITR 521 (SC) and other decisions in this regard. 6.4.5 It is also observed that in the remand report, the AO has also relied upon the judgment of Hon'ble Madras High Court in the case of Tuticorin Alkali Chemicals and Fertilisers Ltd. vs. CIT, 227 ITR 172. In this regard, it is observed that in the case of Tuticorin Alkali vs. CIT, funds were found to be surplus funds which were invested to earn interest income which is not the case in the present case where funds are neither surplus nor invested for earning any income but were invested in construction of the project as per the overriding obligati…

Measage Gurdas Agro Private Limited, Bathinda vs. Deputy Commissioner of Income Tax Circle- 1, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 517/ASR/2019[2016-17]Status: DisposedITAT Amritsar24 May 2023AY 2016-17

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Shri Gurdas Garg, Bathinda vs. Deputy Commissioner of Income Tax Circle- 1, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 516/ASR/2019[2016-17]Status: DisposedITAT Amritsar24 May 2023AY 2016-17

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Deputy Commissioner of Income Tax Circle-1, Bathinda vs. Measage Gurdas Agro Private Limited, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 510/ASR/2019[2016-17]Status: DisposedITAT Amritsar24 May 2023AY 2016-17

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Deputy Commissioner of Income Tax Circle- 1, Bathinda vs. Shri Gurdas Garg, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 508/ASR/2019[2016-17]Status: DisposedITAT Amritsar24 May 2023AY 2016-17

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Deputy Commissioner of Income Tax Circle-1, Bathinda vs. Shri Gurdas Garg, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 507/ASR/2019[2013-14]Status: DisposedITAT Amritsar24 May 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Deputy Commissioner of Income Tax Circle- 1, Bathinda vs. Measage G. G Continental Traders Private Limited, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 506/ASR/2019[2013-14]Status: DisposedITAT Amritsar24 May 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Deputy Commissioner of Income Tax Circle-1, Bathinda vs. Measage G.G.Oils and Faits Private Limited, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 505/ASR/2019[2013-14]Status: DisposedITAT Amritsar24 May 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Shri Gurdas Garg, Bathinda vs. Deputy Commissioner of Income Tax Circle-1, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 498/ASR/2019[2013-14]Status: DisposedITAT Amritsar24 May 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Measage G. G. Continental Traders Private Limited, Bathinda vs. Deputy Commissioner of Income Tax Circle-1, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 495/ASR/2019[2013-14]Status: DisposedITAT Amritsar24 May 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Measage G. G. Oils and Fats Private Limited, Bathinda vs. Deputy Commissioner of Income Tax Circle- 1, Bathinda

In the result, all the appeals of the revenue are dismissed and all the appeals

ITA 494/ASR/2019[2013-14]Status: DisposedITAT Amritsar24 May 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 250(6)

…It is not a case of surplus and idle funds of the appellant having been invested or parked in FDRs of long or short term maturity. The landmark decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilisers Ltd. Vs. CIT, [1997] 227 ITR 172 is very often used by the Assessing Officers to tax interest on FDR as "income from other sources". However, in the said case, the Hon'ble Supreme Court was dealing with interest earned on short term investment of funds borrowed for setting up of factory during construction of factory i.e. before I.T.A. Nos.506/Asr/2019 11 & Others commencement…

Kadavanthara Builders Pvt Ltd, Chennai vs. ITO, Ward -4(2), Chennai

The appeal of the assessee is partly allowed for statistical purposes

ITA 2485/CHNY/2019[2015-16]Status: DisposedITAT Bangalore12 May 2023AY 2015-16
Section 143(3)

…on fixed deposits during the process of setting up of ITA Nos.2484 & 2485/CHNY/2019 Page 18 of 26 plant is an income from other sources, following judgment of the Hon’ble Supreme Court in the case of Tuticorian Alchemic Chemicals and Fertilizers Ltd., 1997 [227 ITR 172] (SC). He further submitted that the assessee purchased the land in the year 2007-08 and thereafter no business activities have been undertaken by the assessee, therefore, lower authorities have rightly changed the characteristic of classification done by the assessee in its books of accounts and have rightly held that it is capital asset and acc…

Kadavanthara Builders Pvt Ltd, Chennai vs. ITO, Ward -4(2), Chennai

The appeal of the assessee is partly allowed for statistical purposes

ITA 2484/CHNY/2019[2014-15]Status: DisposedITAT Bangalore12 May 2023AY 2014-15
Section 143(3)

…on fixed deposits during the process of setting up of ITA Nos.2484 & 2485/CHNY/2019 Page 18 of 26 plant is an income from other sources, following judgment of the Hon’ble Supreme Court in the case of Tuticorian Alchemic Chemicals and Fertilizers Ltd., 1997 [227 ITR 172] (SC). He further submitted that the assessee purchased the land in the year 2007-08 and thereafter no business activities have been undertaken by the assessee, therefore, lower authorities have rightly changed the characteristic of classification done by the assessee in its books of accounts and have rightly held that it is capital asset and acc…

Dy CIT CC 1(4), Mumbai vs. M/S Ultratech Cement Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 931/MUM/2020[2015-16]Status: DisposedITAT Mumbai12 May 2023AY 2015-16

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Ultratech Cement Limited V. Dcit, Central Circle-1(4) Ahura Centre, ‘B’ Wing 2Nd Floor Room No. 902, 9Th Floor Mahakali Caves Road Pratishtha Bhavan, Old Cgo Annexe Maharishi Karve Road Andheri (E), Mumbai- 400093 Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) Dcit, Central Circle-1(4) V. M/S. Ultratech Cement Limited Room No. 902, 9Th Floor Ahura Centre, ‘B’ Wing 2Nd Floor Mahakali Caves Road Pratishtha Bhavan, Old Cgo Annexe Maharishi Karve Road Andheri (E), Mumbai- 400093 Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent)

Section 115Section 32Section 32ASection 80I

…its contention that treatment of a transaction in books of account cannot govern the tax statement, reliance was placed on the decisions of the Supreme Court in the case of Kadernath Jute Mfg Co Ltd 82 ITR 362; in the case of Tuticorin Alkali Chemicals Ltd in 227 ITR 172; in the case of Godhra Electricity Co in 91 Taxman 91, in the case of Bokaro Steel Ltd in 263 ITR 315 and in the case of Sutlej Cotton Mills Itd in 116 ITR I and submitted that it would be totally incorrect to say that an assessee who raises internal invoices would be entitled to benefit of sec. 801A and an assessee who does not raise internal in…

Ultratech Cement Ltd, Mumbai vs. DCIT CC 1(4), Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 465/MUM/2020[2015-16]Status: DisposedITAT Mumbai12 May 2023AY 2015-16

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Ultratech Cement Limited V. Dcit, Central Circle-1(4) Ahura Centre, ‘B’ Wing 2Nd Floor Room No. 902, 9Th Floor Mahakali Caves Road Pratishtha Bhavan, Old Cgo Annexe Maharishi Karve Road Andheri (E), Mumbai- 400093 Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent) Dcit, Central Circle-1(4) V. M/S. Ultratech Cement Limited Room No. 902, 9Th Floor Ahura Centre, ‘B’ Wing 2Nd Floor Mahakali Caves Road Pratishtha Bhavan, Old Cgo Annexe Maharishi Karve Road Andheri (E), Mumbai- 400093 Mumbai- 400020 Pan: Aaacl6442L (Appellant) (Respondent)

Section 115Section 32Section 32ASection 80I

…its contention that treatment of a transaction in books of account cannot govern the tax statement, reliance was placed on the decisions of the Supreme Court in the case of Kadernath Jute Mfg Co Ltd 82 ITR 362; in the case of Tuticorin Alkali Chemicals Ltd in 227 ITR 172; in the case of Godhra Electricity Co in 91 Taxman 91, in the case of Bokaro Steel Ltd in 263 ITR 315 and in the case of Sutlej Cotton Mills Itd in 116 ITR I and submitted that it would be totally incorrect to say that an assessee who raises internal invoices would be entitled to benefit of sec. 801A and an assessee who does not raise internal in…

Ramakrishna Industries, Hyderabad vs. DCIT, Circle-15(1), Hyderabad

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

ITA 179/HYD/2023[2017-18]Status: DisposedITAT Hyderabad08 May 2023AY 2017-18

Bench: Shri K. Narasimha Chary

For Appellant: Shri Y.V. Bhanu Narayan Rao, ARFor Respondent: Shri A.G.V. Prasad, DR
Section 37Section 40Section 80Section 80H

…est on FDRs in bank would be profits and gains derived from any business of an industrial undertaking. Per contra, learned DR placed reliance on the decision of the Hon'ble Apex Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT [1997] 227 ITR 172 (SC) in support of the findings of the authorities below. 8. It could be seen from the decision of the Hon'ble Bombay High Court in the case of M/s. Tema Exchangers Manufactures Pvt. Ltd. (supra), Page 2 of 6 a reference was made to the decision in the case of CIT vs. Jagdishprasad M. Joshi [2009] 318 ITR 420 (Bombay) and also in the case of CI…