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(Ltu) - 1, Mumbai vs. Acc Ltd., Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3246/MUM/2018[2012-13]Status: DisposedITAT Mumbai28 Feb 2023AY 2012-13

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Ltd., V. Dcit – Range – 1(1) Mumbai {Formerly Known As The Associated Cement Companies, Ltd.,} Cement House, 121 M.K. Road, Churchgate Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent) Dcit (Ltu)-1 V. M/S. Acc Ltd., 29Th Floor, Centre No.1 Cement House, 121 World Trade Centre, Cuffe Parade M.K. Road, Churchgate Mumbai - 400005 Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 14A

…n that treatment of a transaction in books of accounts cannot govern the tax statement reliance was placed on the decision of the Supreme Court in the case of Kadernath Jute Manufacturing Company Ltd. 82 ITR 362; in the case of TutcorinAlali Chemicals Ltd. in 227 ITR 172; in the case of Godhra Electricity Company in 91 Taxman 91; in the case of Bokaro Steel Ltd in 263 ITR 315 and in the case of Sutlet Cotton Mills Ltd. in 116 ITR 1 and submitted that it would be totally incorrect to say that an assessee who raises internal invoices would be entitled to benefit of Sec 80IA and an assessee who does not raise intern…

Acc Limited (Formerly Known As the Associated Cement Companies Ltd.), Mumbai vs. Addll. CIT, RG. 1(1), Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3203/MUM/2018[2012-13]Status: DisposedITAT Mumbai28 Feb 2023AY 2012-13

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Ltd., V. Dcit – Range – 1(1) Mumbai {Formerly Known As The Associated Cement Companies, Ltd.,} Cement House, 121 M.K. Road, Churchgate Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent) Dcit (Ltu)-1 V. M/S. Acc Ltd., 29Th Floor, Centre No.1 Cement House, 121 World Trade Centre, Cuffe Parade M.K. Road, Churchgate Mumbai - 400005 Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 14A

…n that treatment of a transaction in books of accounts cannot govern the tax statement reliance was placed on the decision of the Supreme Court in the case of Kadernath Jute Manufacturing Company Ltd. 82 ITR 362; in the case of TutcorinAlali Chemicals Ltd. in 227 ITR 172; in the case of Godhra Electricity Company in 91 Taxman 91; in the case of Bokaro Steel Ltd in 263 ITR 315 and in the case of Sutlet Cotton Mills Ltd. in 116 ITR 1 and submitted that it would be totally incorrect to say that an assessee who raises internal invoices would be entitled to benefit of Sec 80IA and an assessee who does not raise intern…

Acc Ltd, Mumbai vs. Asst CIT Ltu, Mumbai

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

ITA 6082/MUM/2014[2007-08]Status: DisposedITAT Mumbai28 Feb 2023AY 2007-08

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 143(3)Section 145A

…n that treatment of a transaction in books of accounts cannot govern the tax statement reliance was placed on the decision of the Supreme Court in the case of Kadernath Jute Manufacturing Company Ltd. 82 ITR 362; in the case of TutcorinAlali Chemicals Ltd. in 227 ITR 172; in the case of Godhra Electricity Company in 91 Taxman 91; in the case of Bokaro Steel Ltd in 263 ITR 315 and in the case of Sutlet Cotton Mills Ltd. in 116 ITR 1 and submitted that it would be totally incorrect to say that an assessee who raises internal invoices would be entitled to benefit of Sec 80IA and an assessee who does not raise intern…

Acc Ltd ( Formerly Known As the Associates Cement Companies Ltd), Mumbai vs. Addl CIT Ltu, Mumbai

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

ITA 4669/MUM/2012[2007-08]Status: DisposedITAT Mumbai28 Feb 2023AY 2007-08

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 143(3)Section 145A

…n that treatment of a transaction in books of accounts cannot govern the tax statement reliance was placed on the decision of the Supreme Court in the case of Kadernath Jute Manufacturing Company Ltd. 82 ITR 362; in the case of TutcorinAlali Chemicals Ltd. in 227 ITR 172; in the case of Godhra Electricity Company in 91 Taxman 91; in the case of Bokaro Steel Ltd in 263 ITR 315 and in the case of Sutlet Cotton Mills Ltd. in 116 ITR 1 and submitted that it would be totally incorrect to say that an assessee who raises internal invoices would be entitled to benefit of Sec 80IA and an assessee who does not raise intern…

Addl.C.I.T. Ltu, Mumbai vs. Acc Ltd., Mumbai

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

ITA 4556/MUM/2012[2007-08]Status: DisposedITAT Mumbai28 Feb 2023AY 2007-08

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 143(3)Section 145A

…n that treatment of a transaction in books of accounts cannot govern the tax statement reliance was placed on the decision of the Supreme Court in the case of Kadernath Jute Manufacturing Company Ltd. 82 ITR 362; in the case of TutcorinAlali Chemicals Ltd. in 227 ITR 172; in the case of Godhra Electricity Company in 91 Taxman 91; in the case of Bokaro Steel Ltd in 263 ITR 315 and in the case of Sutlet Cotton Mills Ltd. in 116 ITR 1 and submitted that it would be totally incorrect to say that an assessee who raises internal invoices would be entitled to benefit of Sec 80IA and an assessee who does not raise intern…

Income Tax Officer Ward-1(1), Bathinda vs. M/S Apex Fibre India Limited, Bathinda

ITA 84/ASR/2020[2016-17]Status: DisposedITAT Amritsar23 Feb 2023AY 2016-17

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

Section 145(3)Section 43(5)Section 45(3)

…CIT vs. Bhaval Synthetics Rajasthan High Court has relied on the Apex India, 81 taxnabb.com 478, wherein, Court in the case of Tuticorin Alkali it was held that interest earned on Chemicals and Fertilizers Ltd. vs. CIT (1997) FDRs kept in bank as margin money 227 ITR 172 but Delhi High Court in the case for obtaining LOC to purchase of Koshika Telecom Ltd.(2006) 287 ITR 479 machinery was taxable as income relied on the judgments of Apex Court in the from other sources. case of Karnal Coop Sugar Mills Ltd (2001) 118 Taxman 489 (SC) in which it has been held that interest from deposit of margin money with the banks…

Deputy Commissioner of Income Tax Circle-1, Bathinda vs. M/S G.H. Crop Science Private Limited, Bathinda

ITA 56/ASR/2020[2016-17]Status: DisposedITAT Amritsar23 Feb 2023AY 2016-17

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

Section 145(3)Section 43(5)Section 45(3)

…CIT vs. Bhaval Synthetics Rajasthan High Court has relied on the Apex India, 81 taxnabb.com 478, wherein, Court in the case of Tuticorin Alkali it was held that interest earned on Chemicals and Fertilizers Ltd. vs. CIT (1997) FDRs kept in bank as margin money 227 ITR 172 but Delhi High Court in the case for obtaining LOC to purchase of Koshika Telecom Ltd.(2006) 287 ITR 479 machinery was taxable as income relied on the judgments of Apex Court in the from other sources. case of Karnal Coop Sugar Mills Ltd (2001) 118 Taxman 489 (SC) in which it has been held that interest from deposit of margin money with the banks…

M/S. Rmz Hotels Private Limited, Bangalore vs. National E-Assessment Centre, Delhi

In the result, the appeal of the assessee is allowed

ITA 954/BANG/2022[2018-19]Status: DisposedITAT Bangalore22 Feb 2023AY 2018-19

Bench: Shri Chandra Poojariassessment Year: 2018-19

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Shri Ganesh R. Ghale, Standing Counsel for Department
Section 234Section 255Section 255(3)Section 36

…ent those are diverted to sister concerns or other persons without interest.” M/s. RMZ Hotels Private Limited, Bangalore Page 44 of 79 (ii) Decision of Hon’ble Supreme Court of India in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd. reported in 141 CTR 387 (SC), wherein held as under: “The basic proposition that has to be borne in mind in this case is that it is possible for a company to have six different sources of income, each one of which will be chargeable to income tax. Profits and gains of business or profession is only one of the heads under which the company's income is liable to be asses…

M/S Rajendra Prasad Srivastava, Azamgarh vs. ACIT, Range - Azamgarh, Azamgarh

In the result, the appeal of the assessee is dismissed

ITA 164/VNS/2019[2013-2014]Status: DisposedITAT Varanasi07 Feb 2023AY 2013-2014

Bench: Shri.Vijay Pal Rao & Shri Ramit Kocharassessment Year: 2013-14 M/S Rajendra Prasad Srivastava, Vs. Asstt. Commissioner Of Income Sarfuddinpur, Near Railway Tax, Range-Azamgarh Station, Azamgarh-276001 Pan-Aakfr2986A (Appellant) (Respondent) Appellant By: Sh.Hari N. Singh Bisen, C.A. Respondent By: Sh. A.K. Singh, Sr. Dr Date Of Hearing: 11.01.2023 Date Of Pronouncement: 07.02.2023

For Appellant: Sh.Hari N. Singh Bisen, C.AFor Respondent: Sh. A.K. Singh, Sr. DR
Section 143(2)Section 145(3)

…whereas the judgments of the Hon'ble jurisdictional High Court in the case of KisanSahkariChini Meal 282 ITR 617 as well as Chandpur Sugar Companies Ltd., 280 ITR 612 are binding precedents. He has also relied upon the various decisions as under:- “1. [1997] 227 ITR 172 (SC), Tuticorin Alkali Chemicals & Fertilizers Ltd. 2. [2000] 243 ITR 192 (Kerela), NanjiTopanbhai& Co. 3 M/s Rajendra Prasad Srivastava 3. [2006] 280 ITR 617 (All.) KisanSahkariChini Mills. Ltd. 4. [2007] 105 ITD 1 (Delhi) (Special Bench), Allied Construction 5. [2010] 325 ITR 201 (Kerela), T.O. Abraham & Co. 6. [2017] 163 ITD 46 (Visakhapatna…

M/S. Swelect Solar Energy Pvt. Ltd., Chennai vs. ITO, Corporate Ward - 6 (4), Chennai

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

ITA 93/CHNY/2020[2015-16]Status: DisposedITAT Chennai02 Feb 2023AY 2015-16
For Appellant: ShriN. Arjun Raj, CAFor Respondent: Ms. Jancy Elizabeth, JCIT
Section 143(3)

…rom other sources’ and the expenditure incurred before the commencement of business i.e., the interest expenses needs to be treated as pre-operative as held by the Hon’ble Supreme Court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd., vs., CIT, 227 ITR 172. Aggrieved, assessee preferred appeal before CIT(A). 3. The CIT(A) also confirmed the action of the AO by observing that the assessee does not hold any physical inventory and its business operation has not started yet. It was noted by CIT(A) that company has not earned any income and no expenditure except interest expenditure has been incurred. A…

Cairn Energy Hydrocarbon Ltd., Gurgaon vs. DCIT, Intl. Taxation, Circle, Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6278/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Jan 2023AY 2014-15

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…gainst pre-operative expenses.” 17. Heard the arguments of both the parties and perused the material available on record. 18. We have gone in details the judgment of Hon’ble Apex Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC). It says, “Under the IT Act, 1961, the total income of the company is chargeable to tax under Section 4. The total income has to be computed in accordance with the provisions of the Act. Sec. 14 lays down that for the purpose of computation, income of an assessee has to be classified under six heads: (A) Salaries. (B) Interest on Securities…

Cairn Energy Hydrocarbon Ltd., Gurgaon vs. DCIT, Intl. Taxation, Circle, Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6277/DEL/2018[2013-14]Status: DisposedITAT Delhi31 Jan 2023AY 2013-14

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…gainst pre-operative expenses.” 17. Heard the arguments of both the parties and perused the material available on record. 18. We have gone in details the judgment of Hon’ble Apex Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC). It says, “Under the IT Act, 1961, the total income of the company is chargeable to tax under Section 4. The total income has to be computed in accordance with the provisions of the Act. Sec. 14 lays down that for the purpose of computation, income of an assessee has to be classified under six heads: (A) Salaries. (B) Interest on Securities…

DCIT, Intl. Taxation, Circle, Gurgaon vs. Cairn Energy Hydrocarbon Ltd., Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 5989/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Jan 2023AY 2014-15

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…gainst pre-operative expenses.” 17. Heard the arguments of both the parties and perused the material available on record. 18. We have gone in details the judgment of Hon’ble Apex Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC). It says, “Under the IT Act, 1961, the total income of the company is chargeable to tax under Section 4. The total income has to be computed in accordance with the provisions of the Act. Sec. 14 lays down that for the purpose of computation, income of an assessee has to be classified under six heads: (A) Salaries. (B) Interest on Securities…

DCIT, Intl. Taxation, Circle, Gurgaon vs. Cairn Energy Hydrocarbon Ltd., Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 5988/DEL/2018[2013-14]Status: DisposedITAT Delhi31 Jan 2023AY 2013-14

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…gainst pre-operative expenses.” 17. Heard the arguments of both the parties and perused the material available on record. 18. We have gone in details the judgment of Hon’ble Apex Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC). It says, “Under the IT Act, 1961, the total income of the company is chargeable to tax under Section 4. The total income has to be computed in accordance with the provisions of the Act. Sec. 14 lays down that for the purpose of computation, income of an assessee has to be classified under six heads: (A) Salaries. (B) Interest on Securities…

DDIT, New Delhi vs. M/S. Cairn Energy Hydrocarbons Ltd., Gurgaon

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6357/DEL/2013[2010-11]Status: DisposedITAT Delhi31 Jan 2023AY 2010-11

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…gainst pre-operative expenses.” 17. Heard the arguments of both the parties and perused the material available on record. 18. We have gone in details the judgment of Hon’ble Apex Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC). It says, “Under the IT Act, 1961, the total income of the company is chargeable to tax under Section 4. The total income has to be computed in accordance with the provisions of the Act. Sec. 14 lays down that for the purpose of computation, income of an assessee has to be classified under six heads: (A) Salaries. (B) Interest on Securities…

Cairn Energy Hydrocarbons Ltd., Gurgaon vs. DDIT, New Delhi

In the result, the appeals of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6346/DEL/2013[2010-11]Status: DisposedITAT Delhi31 Jan 2023AY 2010-11

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 6357/Del/2013: Asstt. Year : 2010-11 Dcit, Vs Cairn Energy Hydrocarbon Ltd., C/O. Cairn India Ltd., 3Rd & 4Th Circle-3(2), International Taxation, Floor, Vipul Plaza, Suncity, Sector- New Delhi 54, Gurgaon (Appellant) (Respondent) Pan No. Aaccc3279J

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR
Section 40aSection 57Section 80I

…gainst pre-operative expenses.” 17. Heard the arguments of both the parties and perused the material available on record. 18. We have gone in details the judgment of Hon’ble Apex Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC). It says, “Under the IT Act, 1961, the total income of the company is chargeable to tax under Section 4. The total income has to be computed in accordance with the provisions of the Act. Sec. 14 lays down that for the purpose of computation, income of an assessee has to be classified under six heads: (A) Salaries. (B) Interest on Securities…

Shree Sai Sagar Consultants, Mumbai vs. DCIT -CC-5(4), Mumbai

In the result, the present appeal is partly allowed

ITA 2191/MUM/2021[2012-13]Status: DisposedITAT Mumbai25 Jan 2023AY 2012-13
For Appellant: Shri Jayant Bhatt & Jitali GandhiFor Respondent: Shri R.N. D‟Souza
Section 143(3)Section 68

…ery. 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 & Fertilizers Ltd. v. CIT [1997] 227 ITR 172, will not be attracted. The more appropriate decision in the ITA. No. 2191//Mum/2021 Assessment Year: 2012-13 factual situation in the present case is in CIT v. Bokaro Steel Ltd. [1999] 236 ITR 315 (SC). The appeal is dismissed. There will be no order as to costs.” 6.4. Similar views were expressed by the Hon‟ble Supreme Court in the case of CIT…

Lifecell International Pvt Ltd., Chennai vs. ACIT, Chennai

In the result, appeal filed by the assessee is dismissed

ITA 3334/CHNY/2019[2016-17]Status: DisposedITAT Chennai04 Jan 2023AY 2016-17

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita No.: 3334/Chny/2019 िनधा"रण वष" / Assessment Year: 2016-17 M/S. Lifecell International Assistant Commissioner Of Private Ltd., V. Income Tax, No. 26, Vandalur Corporate Circle 4(1), Kelambakkam Main Road, Chennai. Keelakkottaiyur, Chennai. [Pan: Aaeca-7997-B] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. Ajith Kumar Choradia, Ca ""यथ" क" ओर से/Respondent By : Shri. S. Senthil Kumaran, Cit सुनवाई की तारीख/Date Of Hearing : 23.11.2022 घोषणा की तारीख/Date Of Pronouncement : 04.01.2023 आदेश /O R D E R

For Appellant: Shri. Ajith Kumar Choradia, CAFor Respondent: Shri. S. Senthil Kumaran, CIT

…for the period and therefore the accounting policy of recognization of income adopted by the assessee does not give true picture of profit or loss for the period. The Hon’ble Supreme Court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd vs. CIT, 227 ITR 172 had held that accounting policies cannot override the provisions of Income Tax Act. Therefore the ratio of the decision of Jurisdictional High Court in the case of TVS Finance & Services Ltd (supra) wherein while dealing in the issue, whether or not income accrued on discounting of bills by bank, it was held as under:- ‘’15. Therefore, the Tribun…

Sp Jammu Udhampur Highway Ltd., Mumbai vs. DCIT Circle 3(3)(2), Mumbai

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

ITA 1507/MUM/2019[2014-15]Status: DisposedITAT Mumbai02 Jan 2023AY 2014-15

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blesp Jammu-Udhampur Highway Pvt Ltd., V. Dcit- Circle-3(3)(2) 41/44, Shapoorji Pallonji Centre Aayakar Bhavan Minoo Desai Marg Mumbai - 400020 Colaba, Mumbai – 400005 Pan: Aaocs5512N (Appellant) (Respondent) Assessee By : Shri Manish Chulawala Department By : Smiti Samant

For Appellant: Shri Manish ChulawalaFor Respondent: Smiti Samant
Section 115JSection 142(1)Section 143(2)

…sources. The assessee has not filed any appeal from this finding which is given against it. In any case, this 19 SP Jammu-Udhampur Highway Pvt Ltd., question is now concluded by a decision of this court in Tuticorin Alkali and Fertilizers Ltd. vs. CIT (1997) 227 ITR 172. Hence we are not called upon to examine that issue". 5.4 In light of the above decision, in this case wherein also the funds were borrowed for the construction work, the plea of the appellant that merely because the funds from the FDs are made are borrowed for project the interest income from the same should be held as income from business as th…

M/S. Sneha Kinetic Power Projects Pvt. Ltd, Hyderabad vs. The DCIT, Central Circle-2(2), Bangalore

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

ITA 1054/BANG/2022[2014-15]Status: HeardITAT Bangalore19 Dec 2022AY 2014-15

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.V.Srinivasan, AdvocateFor Respondent: Sri.Sri.Gudimella V.P.Pavan Kumar, JCIT-DR
Section 142(2)Section 234B

…deposit and setting up of the projects of the assessee. The A.O. relied on the following judicial pronouncements and held that the interest income is to be assessed as income from other sources. (i) Tuticorin Alkali Chemicals & Fertilisers Ltd. v. CIT (1997) 227 ITR 172 (ii) CIT v. Coromandal Cements Ltd. (1998) 234 ITR 412 (SC) (iii) CIT v. Autokast Ltd. (2001) 116 Taxman 244 (SC) (iv) M/s.Z Square Shopping Mall (P) Ltd. in ITA No.s659, 660 & 661/Lkw/2013 dated 09.09.2015 (v) Kakinada SEZ (P) Ltd. v. ACIT 141 ITD 635 (Hyd.) 3. Aggrieved by the assessment order, the assessee preferred appeal before the first ap…