Disposed

Commissioner of Income Tax Del v. M/S Bhushan Steels & Strips Lt

Delhi HC4 Aug 2017ITA/444/2005

Case brief

AI extract

What is this about?

The Delhi High Court disposed of two revenue appeals by relying on its own previous decisions and a Supreme Court ruling. Questions regarding depreciation for lessees, sales tax exemptions, and captive power plant income in Section 115JA were answered by citing earlier judgments. The appeals were disposed of in accordance with these precedents.

What did the court decide?

The appeals are disposed of in the terms laid down in the cited Court and Supreme Court decisions.

Commissioner of Income Tax Del Vs M/S Bhushan Steels & Strips Lt — Income Tax | Delhi HC (2017)

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$~R91, 92

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

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ITA Nos.444/2005 COMMISSIONER OF INCOME TAX DEL ..... Appellant Through: Mr. Rahul Chaudhary, Senior Standing Counsel with Mr.Sanjay Kumar Mishra, Junior Standing Counsel for Revenue.

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Versus M/S BHUSHAN STEELS & STRIPS LTD. ..... Respondent Through: Ms. Kavita Jha, Ms. Roopali Gupta, Advocates.

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WITH

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ITA Nos.458/2005 COMMISSIONER OF INCOME TAX DEL ..... Appellant Through: Mr. Rahul Chaudhary, Senior Standing Counsel with Mr.Sanjay Kumar Mishra, Junior Standing Counsel for Revenue.

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Versus

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M/S BHUSHAN STEELS & STRIPS LTD. ..... Respondent Through: Ms. Kavita Jha, Ms. Roopali Gupta, Advocates.

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CORAM: JUSTICE S.MURALIDHAR JUSTICE PRATHIBA M. SINGH

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O R D E R

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% 04.08.2017

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These appeals by the Revenue are against the common order dated 5^th January, 2005 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA Nos. 3501 & 2981/Del/2003 for Assessment Years (‘AY’s) 2000-2001 and ITA Nos. 3502 & 2982/Del/2003 for AY’s 2001-02.

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By the order dated 25^th May, 2006, this Court framed the following question of law in these appeals:

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“(i) Whether the ITAT was correct in law in holding that the respondent-assessee is entitled to depreciation under Section 32 of the Income Tax Act even when the assessee was not the owner of the property in question and was in possession thereof as a lessee during the year under consideration?

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(ii) Whether the ITAT was correct in law in holding that the amount received by the assessee by way of exemption of sales tax payments was not a trading receipt but was a capital receipt, hence not liable to tax?

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(ill) Whether the ITAT was correct in law and on the facts and circumstances of the case in holding that the income from captive power plant is to be reduced from the calculation of taxable profits u/s 115JA'?"

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As far as Question (i) is concerned, it is covered in favour of the Assessee and against the Revenue by the decision of this Court in CIT v. Bhushan Steels & Strips Limited (2017) SCC OnLine Del 9061.

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As far as Question (ii) is concerned, it is covered in favour of the Revenue and against the Assessee by the same decision of this Court in CIT v. Bhushan Steels & Strips Limited ( supra ) .

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As far as Question (iii)3 is concerned, it stands covered in favour of the Assessee and against the Revenue by the decision of this Court in CIT v. DCM Shriram Consolidated Ltd. (2009) 322 ITR 486 (Del) which was further affirmed by the Supreme Court in CIT v. DCM Shriram Consolidated Ltd. (2014) 368 ITR 720 (SC) .

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The appeals are disposed of in the above terms.

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S.MURALIDHAR, J

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PRATHIBA M. SINGH, J

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AUGUST 04, 2017 j

Commissioner of Income Tax Del v. M/S Bhushan Steels & Strips Lt

Case brief

What is this about?

What did the court decide?

Commissioner of Income Tax Del v. M/S Bhushan Steels & Strips Lt

Case brief

What is this about?

What did the court decide?

What the court decided

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