Nirma Limited Vs. DCIT

Parties Involved

Facts Summary

Nirma Limited, a public limited company engaged in manufacturing and marketing consumer and industrial products, filed appeals against the assessment orders for the Assessment Years 2015-16 and 2016-17. The assessee claimed various deductions and adjustments, which were either allowed or disallowed by the Assessing Officer. The appeals were directed against the orders passed by the Commissioner of Income Tax (Appeals) for the respective assessment years. The assessee and the revenue both filed cross-appeals and cross-objections against each other's appeals.…

Legal Issues

• 1. Whether the sales tax subsidy of Rs. 7,22,34,860/- is a capital receipt not chargeable to tax.
• 2. Whether the disallowance of excess depreciation on intangible assets is correct.
• 3. Whether the disallowance of product registration expenses is correct.
• 4. Whether the disallowance of deduction under Section 80IA is correct.
• 5. Whether the corporate guarantee commission is income chargeable to tax.
• 6. Whether the disallowance of depreciation on goodwill arising out of amalgamation of Saurashtra Chemicals Ltd. is correct.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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