Case Law Details
CIT Vs Dabur India Ltd (Delhi High Court)
In the case of CIT vs. Dabur India Ltd, the Commissioner challenged the order passed by the Income Tax Appellate Tribunal (ITAT) dated April 12, 2017. The Commissioner proposed several questions of law for consideration. However, upon examination, it was found that the proposed questions primarily pertained to the rate of royalty and valuation of shares, which did not justify entertaining the appeals.
Regarding the questions related to Sections 80IB and 80IC of the Income Tax Act, the legal position had already been established by precedent, particularly in the case of CIT v. Sadhu Forging Ltd. The court observed that the activity of forging undertaken by the assessee qualified as manufacturing within the ambit of Section 80IB. The court cited examples from previous judgments to support this conclusion. Additionally, the receipts derived from activities such as heat treatment and sale of scrap were considered part and parcel of the manufacturing process and thus eligible for deduction under Section 80IB.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The Commissioner impugns the order dated 12 April 2017 passed by the Income Tax Appellate Tribunal [“ITAT”] and has proposed the following questions of law:
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