ACIT, CIRCLE- 26(1), NEW DELHI vs. V C SOLUTIONS PVT. LTD., NEW DELHI
What did the Tribunal hold?
The Tribunal held that the deletion of addition on account of interest on loans and advances was justified as the assessee had sufficient interest-free funds. The write-off of share application money was also correctly treated as a capital receipt. The disallowance under Section 14A was deleted as the assessee had no exempt income.
What were the facts?
The Revenue appealed against the deletion of additions made on account of interest on loans and advances and write-off of share application money. The assessee also filed a cross-objection regarding the disallowance made under Section 14A.
What were the issues?
Whether interest on loans and advances is deductible when interest-free loans are given to others, and whether write-off of share application money is revenue or capital receipt. Also, whether disallowance under Section 14A is leviable when no exempt income is earned.
Which sections of the Income-tax Act were involved?
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Cases cited in this judgment(5)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- CIT v. Abhishek Industries Ltd.359 citing156 Taxmann 257 · 2006 · HC
- CIT v. T.V. Sundaram Iyengar & Sons Ltd.223 citing222 ITR 344 · 1996 · SC · Read judgment
- CIT v. Ramaniyam Homes Pvt. Ltd.48 citing384 ITR 530 · 2016 · HC
- CIT v. Orissa Cement Ltd.30 citing258 ITR 365 · 2002 · HC
- Rollatainers Ltd. v. CIT26 citing339 ITR 54 · 2011 · HC · Read judgment
Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI
Before: Sh. Kul BharatDr. B. R. R. Kumar
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal and Cross Objection have been filed by Revenue and the assessee against the order of ld. CIT(A)-XXVI, New Delhi dated 29.11.2017. 2. Following grounds have been raised by the Revenue:
“i) On the facts and in the circumstances of the case, the ld. CIT(A) erred in deleting the addition of 2 CO No. 41/Del/2021 V C Solutions Pvt. Ltd. Rs.52,57,829/- made on account of
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