← Library
High Court of Punjab and HaryanaITA/216/2013allowed

Vardhman Holdinghs Ltd. v. Commissioner Of Income Tax Range -I Ludhiana And ANR

2020-01-21Mr. Justice Ajay Tewari,Mr. Justice Avneesh Jhingan11 pages

      

    

    

 ! " #$% &$' %  

   ! "   !#! $%&%'( 

&)*+,-)!.$,/!%',$*01)(%2,(+

$ )'3$%%(!,'4+5)'*)/*01)(% $(+%)3%66)'(

$)7%&+5)(1+/!%',$!()'*,'4.'&%6)'*

&$,*+,)&2,'*%$!)'*+./*01)(%& $(+%$%&3'*%'(&  (() * +$* +%)&&%&&%%,&,')33%)6.'*%$!%1(,'

 (+%'18% )91(/ :

;

$&+$(/(+%1(<)4),'&((+%$*%$*)(%*=   3)&&%*>?(+%'18%)933%66)(%$,>.')6/+)'*,4)$+; $&+$(/(+% $,>.')6<662,'4&.>&()'(,)6@.%&(,'& 6)2+)0%>%%'16),8%*

A,< "+%(+%$  '  ($.%  )'*  1$$%1(  ,'(%$3$%()(,'    !%1(,'

= /  (+%  '18%  )9  33%66)(%  $,>.')6  %$$%*  ,' +6*,'4(+)(4$&&$%'($%1%,3(& $8%836?%%&2,(+.( )*7.&(,'4%93%'&%&,'1.$$%*>?(+%%836?%$'$.'','4 )'*  8),'(%')'1%    &.1+  )1188*)(,'&  )$%  (  >% %916.*%* $8(+%%6,4,>6%3$ >.&,'%&& $&%1(,'

=  '18%)91( ,,< "+%(+%$  '  ($.%  )'*  1$$%1(  ,'(%$3$%()(,'    !%1(,'

 = $%)*2,(+!%1(,' ;

<;,,,< (+%'18%)9 1((+%($,>.')6+)&%$$%*,'+6*,'4(+)($%3$((.$'0%$ (+%.',(2+&%3$ ,(&)$%)662%*)*%*.1(,'.'*%$ !%1(,'  (+%'18%)91(,&'((>%,'16.*%* ,'(+%%93$((.$'0%$ $(+%3.$3&% 1)61.6)(,'4(+% *%*.1(,'.'*%$!%1(,'=  (+%'18%)91(/ :

,,,< "+%(+%$  '  ($.%  )'*  1$$%1(  ,'(%$3$%()(,'    !%1(,'

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

,1%%93%'&%&)8'4&( 0)$,.&.',(&16),8,'4*%*.1(,'D& CD= CD= C

(+%1(/2+%'.',(&)$%8),'(),','4(+%,$&%3)$)(%>-& )11.'(&BE $@.%&(,';,0</ 662,'4@.%&(,'+)&>%%'&.>&(,(.(%*

A0,<"+%(+%$,' )1(&)'*1,$1.8&()'1%&(+%,&1$$%1(

  ,'6)2,'*,$%1(,'4(+%(4$)'((+%>%'% ,( ,'(%$%&( $%1%,0%*D$%1%,0)>6%  '  *%6)?%*  3)?8%'(&  $%6)()>6%  ( %93$(  &)6%& )&  33&%*  ( (()6  &)6%& )

%1(%*  >? (+% )&&%&&%%BE +% )1(&,'>$,% )$%(+)((+%)&&%&&8%'(?%)$,'060%*,& 

+%)&&%&&%% ,6%*$%(.$'*%16)$,'4)6&&/(+%$%(.$'2)&$%0,&%* )'*(+%6&&*%16)$%*%)$6,%$2)&$%*.1%*+%)&&%&&8%'(2)& ,')6,&%* .'*%$  !%1(,'  F ;

<    (+%  1(  ' 

 

F  2+%$%,'  (+%  &&%&&,'4 .(+$,(?*,&)662%* 0)$,.& *%*.1(,'&16),8%* >?(+% )&&%&&%%,$&( )33%)6 ,6%*2)&3)$(6?)662%*'G 

=44$,%0%* (+%$*%$ (+% &(33%66)(%.(+$,(?/>(+(+%)&&%&&%%)'*(+%$%0%'.%3$% %$$%*)33%)6& +%$,>.')60,*%,83.4'%*$*%$3)$(6?)662%*>(+(+%)33%)6& ",(+ $%4)$*( @.%&(,';,</(+% )1(&)$%(+)( (+%)&&%&&%% $%1%,0%*$%'(8),'6? $8,(&%836?%%&2+2%$%.&,'4(+%183)'?

)1188*)(,'+%16),8 (+%)&&%&&%%>% $%(+%$,>.')62)&(+)()& 3%$%936)')(,';>))<(!%1(,'=  (+%1(/(+%*%3$%1,)(,''(+% >.,6*,'42'%*>?(+%)&&%&&%%&+.6*>%)662%*+%1'(%'(,'2)& $%7%1(%*>?(+%$,>.')636)1,'4$%6,)'1%.3')*%1,&,' (+%!.3$%8% .$(,' " '

,!"$" &$-'.$ /

0 %23 +%&)8%,&&.%,&$),&%*>? &)*+,-)!.$,/6%)$'%*&%',$ 1.'&%6  $  (+%  )&&%&&%%  )'* ,& '(  2%66C .'*%*  %6%0)'(  3$(,'  

!%1(,'=  (+%1(,&$%3$*.1%*>%62

A'                #  .'

"; <"+%$%)')&&%&&%%/>%,'4)''*,)'183)'?$

F )3%$&';(+%$(+)')183)'?<$%&,*%'(,''*,)/,&%'4)4%* ,'  (+%  >.&,'%&&    %93$(  .(    '*,)    )'?  4*&  $ 8%$1+)'*,&%(2+,1+(+,&&%1(,')336,%&/(+%$%&+)66/,' )11$*)'1%2,(+)'*&.>7%1(((+%3$0,&,'& (+,&&%1(,'/ >%)662%*/,'183.(,'4(+%(()6,'18% (+%)&&%&&%%/) *%*.1(,'((+%%9(%'( 3$ ,(&/$% %$$%*(,'&.>C&%1(,'

; </*%$,0%*>?(+%)&&%&&%% $8(+%%93$( &.1+4*& $8%$1+)'*,&% 999999 ;>))<  A3$ ,(&    (+%  >.&,'%&&E  8%)'&  (+%  3$ ,(&    (+% >.&,'%&&)&183.(%*.'*%$(+%+%)*A$ ,(&)'*4),'&

>.&,'%&&$3$ %&&,'E)&$%*.1%*>?CC ; <','%(?3%$1%'( )'?&.8$% %$$%*(,'16).&%&;,,,)</ ;,,,></;,,,1</;,,,*<)'*;,,,%< &%1(,'=$ )'?$%1%,3(&>?

2)? >$-%$)4%/188,&&,'/,'(%$%&(/$%'(/1+)$4%&$)'? (+%$$%1%,3( )&,8,6)$')(.$%,'16.*%*,'&.1+3$ ,(&H)'* ;<(+%3$ )'?>$)'1+

,1%/2)$%+.&%$)'?(+%$ %&()>6,&+8%'( (+%)&&%&&%%&,(.)(%.(&,*%'*,) +%%936)')(,'3$0,*%& $$%*.1(,' $8(+%A3$ ,(&)'* 4),'& >.&,'%&&$3$ %&&,'E/$%1%,3(&>?2)? >$-%$)4%/188,&&,'/ ,'(%$%&(/$%'(/1+)$4%&$)'?(+%$$%1%,3( )&,8,6)$')(.$%%3$%1,)(,'

,&'($%1%,3( )&,8,6)$')(.$%)&8%'(,'%*,'(+%%936)')(,' !.3$%8%.$(,'  " '

,4  /' 0+%6*(+)((+%%936)')(,',&(>%1'&($.%*)&3%$(+%36),'')(.$)6 8%)','4 (+%2$*&,',(%6%0)'(3$(,',&$%3$*.1%*>%62

:936)')(,';>))<%9($)1(%*)>0%&()(%&(+)(I3$

G (+%>.&,'%&&I8%)'&(+%3$ (+%>.&,'%&&)&183.(%* .'*%$(+%+%)*I$ ,(&)'*),'& .&,'%&&$$ %&&,'I )&$%*.1%*>?(+%$%1%,3(& (+%')(.$%8%'(,'%*,'16).&%& ; <)'*;< (+%936)')(,';>))< +.&/3$ (+%>.&,'%&& )')&&%&&%%2,66+)0%(>%

,$&(183.(%*.'*%$(+%+%)*I$ ,(&)'*),'& .&,'%&& $$ %&&,'I,')11$*)'1%2,(+3$0,&,'& !%1(,'=( FF    (+%  1(  '  (+%  183.()(,'    &.1+  3$ ,(&  

>.&,'%&&/ )66  $%1%,3(&    ,'18% 2+,1+ )$% 1+)$4%)>6% )& 3$ ,(&)'*4),'& >.&,'%&&.'*%$!%1(,'= (+%1(2,66 +)0%(>%,'16.*%*!,8,6)$6?/,'183.()(,' &.1+3$ ,(& >.&,'%&&/*,

%$%'(%93%'&%&2+,1+)$%)662)>6%.'*%$ !%1(,'&

(FF+)0%(>%)662%*)&%93%'&%& (%$ ,'16.*,'4&.1+$%1%,3(& ,'18%)'*) (%$*%*.1(,'4&.1+ %93%'&%&/  (+%  (()6    (+%  '%(  $%1%,3(&  )$%  3$ ,(&    (+% >.&,'%&& (+%)&&%&&%%183.(%*.'*%$(+%+%)*I$ ,(& )'*),'& .&,'%&&$$ %&&,'I $82+,1+*%*.1(,'& )$%(8)*%.'*%$16).&%&; <)'*;< 936)')(,';>))<

'*%$6).&%; < 936)')(,';>))</','%(?3%$1%'(

)'?$%1%,3(&>?2)? >$-%$)4%/188,&&,'/,'(%$%&(/$%'(/ 1+)$4%&$)'?(+%$$%1%,3( )&,8,6)$')(.$%,'16.*%*,'

)'?&.1+3$ ,(&)$%(>%*%*.1(%* $8(+%3$ (+% >.&,'%&&)&183.(%*.'*%$(+%+%)*I$ ,(&)'*),'&

.&,'%&&$$ %&&,'I+%%93$%&&,'I,'16.*%*)'?&.1+ 3$ ,(&I,'16).&%; < (+%936)')(,';>))<2.6*8%)'

'6?&.1+$%1%,3(&>?2)? >$-%$)4%/188,&&,'/,'(%$%&(/

  $%'(/1+)$4%&$)'?(+%$$%1%,3(2+,1+)$%,'16.*%*,'(+% 3$ (+%>.&,'%&&)&183.(%*.'*%$(+%+%)*I$ ,(& )'*  ),'&    .&,'%&&  $  $ %&&,'I  +%$% $%/  ,  )'?

@.)'(.8 (+%$%1%,3(&>?2)? >$-%$)4%/188,&&,'/ ,'(%$%&(/$%'(/1+)$4%&$)'?(+%$$%1%,3( )&,8,6)$')(.$% ,&)662%*)&%93%'&%&.'*%$!%1(,'&

(FF (+%1( )'*,&'(,'16.*%*,'(+%3$ >.&,'%&&)&183.(%* .'*%$(+%+%)*I$ ,(&)'*),'& .&,'%&&$$ %&&,'I/ ','%(?  3%$  1%'(    &.1+  @.)'(.8    $%1%,3(&  1)''(  >% $%*.1%*  .'*%$  6).&%  ; <    936)')(,'  ;>))<  $8 (+% 3$ (+%>.&,'%&&'(+%$2$*&/'6?','%(?3%$1%'(

(+%'%()8.'( )'?$%1%,3( (+%')(.$%8%'(,'%*,'

16).&%; <2+,1+,&)1(.)66?,'16.*%*,'(+%3$ (+% )&&%&&%%,&(>%*%*.1(%* $8(+%3$ (+%)&&%&&%% $ *%(%$8,','4I3$ (+%>.&,'%&&I (+%)&&%&&%%.'*%$ 936)')(,';>))<(!%1(,'=   



          

    

                             

      !  " # !  

                   

   $  

        

J  

        !  " # !  

        

%&''() +%  $%1%,3(&  8%'(,'%*  ,'  (+%  %936)')(,'  )$%  (+%  )1(.)6 3)?8%'(&$%1%,0%*6,-%>$-%$)4%%(1+%3+$)&%A$%1%,3( &,8,6)$')(.$%E 2,66'(,'1$%)&%,(&&13%(,'16.*%*%3$%1,)(,'2+,1+,&'('&)8%

(,'4)&>$-%$)4%/188,&&,'%(1+% ,'*,'4$%1$*%*>?(+%$,>.')6 '(+%&),*,&&.%,&.3+%6*+%@.%&(,',&)'&2%$%*)4),'&((+%)&&%&&%% &$%4)$*&@.%&(,';,,</6%)$'%*1.'&%6 $(+%3)$(,%&)$% (+)((+%,&&.%,&10%$%*,' )0.$ (+%)&&%&&%%>?)*%1,&,' (+% ,0,&,'%'1+ (+,&.$(,' -5-!)  -

! " #$'$ 6/ 3 0% 3  K.%&(,';,,,<16),8%**%&'()$,&% $8(+%$*%$ (+% $,>.')6)'*+%'1%')*7.*,1)(,' $(+%&)8%,&1)66%* $ +% )1(&$%6%0)'( $&.>&(,(.(%*@.%&(,';,0<)$%(+)(*.$,'4 (+%$%6%0)'()&&%&&8%'(?%)$/(+%)&&%&&%%$%1%,0%*,'(%$%&('(+%*%6)?%* 3)?8%'(+%,'(%$%&(2)& $>(+(?3%& 3)?8%'(&$%1%,0%*6)(%/,% $ (+%4*&%93$(%*)'*&6*61)66?+%4$,%0)'1% (+%)33%66)'(>% $% (+%$,>.')62)&2,(+$%4)$*(''C)662)'1% %9%83(,'.'*%$!%1(,'

 (+%1(+%$,>.')6$%6?,'4.3',(&*%1,&,',')&&%&&%%&2' 1)&% $(+%)&&%&&8%'(?%)$

F*,$%1(%*(+%&&%&&,'4.(+$,(?( )662*%*.1(,'.'*%$!%1(,'  (+%1(2+%$%(+%,'(%$%&(,&$%1%,0%*

= >?(+%)&&%&&%%'*%6)?%*3)?8%'(&$%6)()>6%(%93$()'* .$(+%$4)0%

662,'4*,$%1(,'&

G +%$,>.')6+)**,$%1(%*(+%&&%&&,'4

,1%$( 0%$, ?)'*)662*%*.1(,'.'*%$&%1(,'  (+%1( 2+%$%(+%,'(%$%&(,&$%1%,0%*D$%1%,0)>6%>?(+%)&&%&&%% $8 ,(&1.&(8%$&'*%6)?%*3)?8%'(&/$%6)()>6%(%93$(&)6%& 8)*%  >? ,(  2%0%$/  2+%$%  &.1+  ,'(%$%&(  *.%  $8 (+% 3)$(,%&2)&'(&$%6)()>6%((+%%93$(&)6%8)*%>?(+% .'*%$()-,'4/,(2)&+%6*(+)((+%)&&%&&%%2)&'(%'(,(6%*( (+%>%'% ,( %9%83(,'.'*%$&%1(,'  (+%1('

&.1+  (+%$  ,'18%  662,'4  (+%  )>0%  &),*  3)$,(?  

$%)&','42% ,'*'8%$,(,'(+%4$.'* )33%)6

$),&%*>?(+%)&&%&&%%)'*(+%&)8%,&*,&8,&&%*E +%)$4.8%'($),&%*,&(+)((+%*,$%1(,' (+%$,>.')6,&,'

0,6)(,' !%1(,' ;F< (+%1(+%$%6%0)'(3$(,' (+%3$0,&,'

,&$%3$*.1%*>%62

A)   !         7 8  .

 ' # &'9 

:; <!.>7%1(((+%3$0,&,'& (+,&&%1(,'/)*%*.1(,'

&.1+3$ ,(&)'*4),'&)&)$%*%$,0%*>?)+.'*$%*3%$1%'( %93$(C$,%'(%*.'*%$()-,'4 $8(+%%93$(  )$(,16%& $ (+,'4&$183.(%$& (2)$% $)3%$,* (%'1'&%1.(,0% )&&%&&8%'(?%)$&>%4,'','42,(+(+%)&&%&&8%'(?%)$$%6%0)'( (  (+%  3$%0,.&  ?%)$  ,'  2+,1+  (+%  .'*%$()-,'4  >%4,'&  ( 8)'.

)1(.$%  $  3$*.1%  )$(,16%&  $  (+,'4&  $  183.(%$

: & (2)$%)&(+%1)&%8)?>%/&+)66>%)662%* $8(+%(()6 ,'18% (+%)&&%&&%% 999999 ;F<$(+%3.$3&%& &.>C&%1(,'; </(+%3$ ,(&*%$,0%*

$8%93$( )$(,16%&$(+,'4&$183.(%$& (2)$%&+)66>% (+%)8.'(2+,1+>%)$&((+%3$ (+%>.&,'%&& (+% .'*%$()-,'4/(+%&)8%3$3$(,')&(+%%93$((.$'0%$,' $%&3%1( &.1+)$(,16%&$(+,'4&$183.(%$& (2)$%>%)$& (  (+%  (()6  (.$'0%$    (+%  >.&,'%&&  1)$$,%*  '  >?  (+% .'*%$()-,'4E !.>C&%1(,';F<(!%1(,'  (+%1(4,0%&) $8.6) $ 2$-,'4.((+%3$ ,(& $8%93$( )$(,16%&'1%,(,&+%6*(+)(,'(%$%&( '*%6)?%*3)?8%'($%6)(,'4(%93$(,&%6,4,>6%.'*%$!%1(,'  (+% 1(/(+%$%) (%$(+%1)61.6)(,',&(>%*'%)&3%$&.>C&%1(,';F<(!%1(,'

 (+%1(+%*%1,&,' (+%$,>.')6)662,'4'6?,'(%$%&($%6)(,'4 ( %93$(&)6%&.'*%$!%1(,'   (+%1(,&.3+%6*/+2%0%$/(+% *,$%1(,'& $0%$, ,1)(,')$%8*, ,%*((+%%9(%'((+)((+%&&%&&,'4 

,1%$  &+)66  )&&%&&  (+%  ,'(%$%&(  $%1%,0%*  '  *%6)?%*  3)?8%'(&  )&  3%$ 3$0,&,'& !%1(,' ;F< (+%1(+%@.%&(,',&)'&2%$%*,' )0.$ (+%)&&%&&%% +%  )'&2%$  (  @.%&(,'  ;0<  ,&  )4),'&(  (+%  )&&%&&%%  +% )33%66)'(,&+)0,'40)$,.&.',(&&8% (+%8>%,'4%6,4,>6%(*%*.1(,'

.'*%$!%1(,'  (+%1(>%,'4

L%93$(C$,%'(%*.'*%$()-,'4)'* (+%$&'(%6,4,>6%.'*%$!%1(,'  (+%1(+%$%2%$%%93%'&%& ,'1.$$%* $(+%+%)*

,1%2+,1+ 2)&2$-,'4 $ %6,4,>6%)'*''C %6,4,>6%.',(&",(+)0,%2(1+%1-(+)(8$%(+)'(+%$*,')$?3$ ,(&8)?

  '()$,&%((+%%6,4,>6%.',(&/(+%).(+$,(,%&*,$%1(%*)33$(,'8%'(

%93%'&%& +%)*

,1%)8'4&(0)$,.&.',(& +%$%6%0)'(3$0,&,'&(>%$%6%0)'()$%!%1(,'& ;J<)'* = C;

< (+%1(/&)8%)$%$%3$*.1%*>%62

A)   !         7 8  .

 ' # &'9 

:999999 ;J<+%3$0,&,'& &.>C&%1(,';=<)'*&.>C&%1(,';

<

!%1(,'= C&+)66/& )$)&8)?>%/)336?,'$%6)(,'((+% .'*%$()-,'4$% %$$%*(,'(+,&&%1(,')&(+%?)336? $(+% 3.$3&%& (+%.'*%$()-,'4$% %$$%*(,'&%1(,'= C 999999 '      '

'9               '' !   &999999 ;

<"+%$%,()33%)$&((+%&&%&&,'4

,1%$(+)(2,'4( (+%16&%1''%1(,'>%(2%%'(+%)&&%&&%%1)$$?,'4'(+% %6,4,>6%>.&,'%&&(2+,1+(+,&&%1(,')336,%&)'*)'?(+%$ 3%$&'/  $  $  )'?  (+%$  $%)&'/  (+%  1.$&%    >.&,'%&& >%(2%%'(+%8,&&)$$)'4%*(+)((+%>.&,'%&&($)'&)1(%* >%(2%%'  (+%8  3$*.1%&  (  (+%  )&&%&&%%  8$%  (+)'  (+% $*,')$?3$ ,(&2+,1+8,4+(>%%93%1(%*()$,&%,'&.1+ %6,4,>6%>.&,'%&&/(+%&&%&&,'4

,1%$&+)66/,'183.(,'4 (+%  3$ ,(&  )'*  4),'&    &.1+  %6,4,>6%  >.&,'%&&  $  (+% 3.$3&%& (+%*%*.1(,'.'*%$(+,&&%1(,'/()-%(+%)8.'(

  3$ ,(&)&8)?>%$%)&')>6?*%%8%*(+)0%>%%'*%$,0%* (+%$% $8E !.>C&%1(,';J< !%1(,'  (+%1(3$0,*%&(+)((+% 3$0,&,'& &.>C&%1(,'&;=<)'*;

< !%1(,'= C&+)66)336?!.>C &%1(,';

< !%1(,'= C (+%1(%832%$&(+%&&%&&,'4

,1%$( 1'&,*%$)$%)&')>6%3$ ,(*%$,0%*>?(+%%6,4,>6%>.&,'%&&/,'1)&%(+%$%,& )16&%1''%1(,'>%(2%%'(+%%6,4,>6%)&&%&&%%)'*)'(+%$3%$&'$(+% >.&,'%&&,&&)$$)'4%*(+)((+%>.&,'%&&($)'&)1(%*>%(2%%'(+%83$*.1%& +,4+%$3$ ,((+)'%93%1(%* +%  1'(%'(,'  $),&%*  >?  6%)$'%*  1.'&%6  $  (+%  $%0%'.% *%&%$0%&)11%3()'1%(+)((+%%93%'*,(.$%,'1.$$%*>?(+%+%)*

,1%,&) 188'  %93%'*,(.$%  $   %6,4,>6%  )'*  ''C%6,4,>6%  .',(&  $.'  >?  (+% )33%66)'(C183)'?/(+% &)8%'%%*&(>%)33$(,'%*(*%(%$8,'%(+% )1(.)6 3$ >(+(+%(?3%& .',(&+% ,'*,'4$%1$*%*>?(+% $,>.')6  '  (+%  &),*  ,&&.%  2)$$)'(&  '  ,'(%$ %$%'1%  +%  @.%&(,'  ,& )'&2%$%*)4),'&((+%)&&%&&%% '0,%2 (+%)>0%/(+%)33%)6,&*,&3&%*  /(() * +0/*;(<%0  *=+(*=+(    

8- "+%(+%$&3%)-,'4D$%)&'%*

%&D "+%(+%$$%3$()>6%

%&D