Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

DCIT, Circle 16 (1) , New Delhi and ITO, Ward 16 (4) , New Delhi Versus M/s. Tropicana Beverages Co.

ITA No.482 /Del/2009, I.T.A. No. 810/Del/2009 - Dated:- 18-2-2010 - SHRI K. G. BANSAL, ACCOUTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER Appellant by: Shri N K Chand, Sr. DR Respondent by: Shri C S Aggarwal, Sr. Adv., Shri Vishal Kalra & Sh. R P Mall, Adv. ORDER PER GEORGE MATHAN, JM: 1. I.T.A. No. 810/Del/2009 is an appeal filed by the revenue against the order of Ld. CIT(A) XIX, New Delhi in appeal No.417/2007-08 dated 17.12.2008 for the Assessment Year 2005-06 and I.T.A. No. 482/De .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hases the packed food juices from M/s. Dynamix Dairy Industries Ltd. Pune (hereinafter referred to as Dynamix ). It was the submission that in the course of assessment, it was noticed that the assessee had claimed depreciation on imported machinery which had WDV as on 01.04.2003 at ₹ 1,41,71,165/- and which was installed at the manufacturing premises of Dynamix. It was also noticed that the assessee had claimed depreciation on Visi Refrigerators which were shown at WDV as on 01.04.2003 at .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ss of the assessee, the A.O. had disallowed the depreciation. It was the submission that the Ld. CIT(A) had deleted the disallowance by following the decision of Hon'ble High Court of Bombay in the case of Associated Cement Co. Ltd. reported in 68 ITSR 478 and the decision of Hon'ble High Court of Andhra Pradesh in the case of A P Paper Mills reported in 225 ITR 262. It was the submission that the decision of Hon'ble High Court of Bombay was distinguishable in so far as in that case, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Hon'ble High Court of Delhi in the case of Punjab National Bank Ltd. reported in 141 ITR 886 wherein it has been held that only portion used for the business was entitled to depreciation. It was the further submission that the decision of the Hon'ble Supreme Court in the case of Liquidators of Pursa Ltd. reported in 25 ITR 265 would also apply wherein it was held that the machinery & plant must be used for the purpose of the business which is actually carried on and the profit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s in that case, the machinery had not been used during the year and the intention of the company was to discontinue its business and the sales of machinery and plant was a step in the process of winding up of its business. It was the further submission that in the said decision, the Hon'ble Supreme Court has categorically held that the words used for the purpose of business means for the purpose of business of the owner to carry on the business and earn profits in the business. It was furthe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essee had also supplied the know how for the manufacture of the fruit juices as the assessee was originally in the business of manufacture of fruit juices and in 1999 for the firsts time the assessee had for commercial expediency entered into the agreement with M/s. Dynamix for the manufacture of fruit juices. It was also the submission that for the purpose of manufacturing the fruit juices and packing the same as per the requirement of the assessee, certain machinery were required which was not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eement or on the expiry of the agreement period, the machinery were to be returned to the assessee. It was further submitted that as per the agreement, if Dynamix uses the machinery provided by the assessee for the manufacture of any other product or produce or for any other person, the agreement stood cancelled and the machinery were liable to be returned to the assessee. It was the further submission that as per clause 7.2 of the agreement, any damage caused to the building or structure on acc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ices only for the assessee and for nobody else nor was the produce sold by Dynamix to a third party. The assessee was holding the complete production of Dynamix captive for its own consumption. It was thus the submission that the machinery were used for the business purpose of the assessee. It was the submission that if the machinery were not provided by the assessee, Dynamix would not be able to manufacture the products as per the agreement with the assessee and the assessee would not be able t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sion of Hon'ble High Court of Bombay in the case of Associated Cement was directly applicable in so far as it had been held that it was the owner of the property who is entitled to depreciation. It was the further submission that the assessee owns the asset being the plant & machinery and the same was used in the manufacturing of the fruit juices which were sold by the assessee though manufactured by Dynamix for and on behalf of the assessee on the basis of know how and methodology and u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rators have to be provided to the dealers who were dealing in the products of the assessee. It was thus submitted that the refrigerators were also used for the purpose of the business of the assessee and was consequently entitled for depreciation. It was the submission that the order of Ld. CIT(A) was liable to be upheld. 4. It was agreed by both the sides that the issues were identical for the Assessment Year 2005-06 and the same submissions applied to the appeal also being I.T.A. No. 810/Del/2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

purpose of enabling the owner to carry on the business and earn profit in the business. With this meaning in mind if the facts in the present case are seen, it is noticed that the assessee is in the business of trading in packed fruit juices. As per the assessee s product supply agreement entered into by the assessee with Dynamix right from 18th Feb 1999, it is noticed that Dynamix is to manufacture fruit juices as per the requirement of the assessee and it is to be packed in accordance with the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ynamix is manufacturing the fruit juices for and on behalf of the assessee. Dynamix has no say in the method of manufacture, product mix, sourcing of raw material quality of raw material, method of packing, design of packing etc. It is not a case where Dynamix manufacture fruit juices and the assessee is a dealer for the fruit juice manufactured by Dynamix. A perusal of the equipment Supply Agreement between the assessee and the Dynamix clearly shows that it manufactures the fruit juices as per .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uest of Dynamix has provided the machinery for the purpose of manufacturing the products under the Product Supply Agreement. A perusal of the agreement also shows that it is clearly understood that the machinery would belong to the assessee and not the Dynamix and Dynamix had no charge or claim over the machinery. Even the servicing, maintenance and spare parts of the machinery was to be in done in the presence of the representative of the assessee even though the cost for the same was to be bor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

News: Notification Issued For GST Actionable Claim On Branded Food Products

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Forum: Duty Drawback- Urgent

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Forum: GST Invoice

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.

News: GST implementation smoother than expected: Jaitley

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version