VODAFONE INDIA LTD,MUMBAI vs. ASST CIT 8(3)(2), MUMBAI

ITA 884/MUM/2016Status: DisposedITAT Mumbai17 May 2024AY 2011-1268 pages
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What did the Tribunal hold?

The Tribunal held that no disallowance under Section 14A is warranted in the absence of exempt income. It also deleted the disallowance of interest on capital work-in-progress, stating that investment in assets improved service quality but did not extend the business geographically. The disallowance for roaming charges was also deleted, following a precedent that such payments do not fall under TDS provisions.

What were the facts?

The assessee, Vodafone India Ltd., appealed against disallowances made by the Assessing Officer for Assessment Year 2011-12. Key issues included disallowances under Section 14A, Section 36(1)(iii) for interest on capital work-in-progress, and Section 40(a)(ia) for roaming charges and discounts.

What were the issues?

Whether disallowance under Section 14A is permissible without exempt income, and whether interest on capital work-in-progress and roaming charges are disallowable under Sections 36(1)(iii) and 40(a)(ia) respectively.

Which sections of the Income-tax Act were involved?

Section 14A,Section 36(1)(iii),Section 40(a)(ia),Section 194C,Section 194J

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Cases cited in this judgment(4)Show list

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Heard together (3 matters)

ITA No. 884/MUM/2016
ITA No. 2834/MUM/2017
ITA No. 1916/MUM/2016

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL "I" BENCH, MUMBAI SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 884/MUM/2016 (Assessment Year: 2011-12) & ITA No. 2834/MUM/2017 (Assessment Year: 2012-13) Vodafone India Ltd., Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013 [PAN: AAACH5332B] Appellant Vs Assistant Commissioner of Income Tax- 8(3)(2), Mumbai, Respondent ITA No. 1916/MUM/2016 (Assessment Year: 2011-12) Deputy Commissioner of Income Tax 5(2)(1), Mumbai, 5th Floor, Room No. 525, Aayakar Bhavan, M.K. Road, Mumbai - 400020 Appellant M/s Vodafone Idea Limited, (Earlier known as Vodafone India Limited which now stands merged with Idea Cellular Limited (`ICL') and consequently known as Vodafone Idea Limited), 10th Floor, Birla Centurion, Pandurang Budhkar Marg, Worli, Mumbai - 400030 [PAN: AAACH5332B] Vs Respondent Appearance For the Assessee Shri P.J. Pardiwala Shri Ketan Ved Shri Abdul Kadir Jamsadwala For the Department Shri T. Sankar Date Conclusion of hearing 22.02.2024 Pronouncement of order 17.05.2024 ORDER Per Rahul Chaudhary, Judicial Member:

1.

This is a batch of three appeals consisting of cross appeals for t

The order continues below.

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