6. Punjab Tractors Ltd. v. CIT

393 ITR 223High Court2017#9222 most cited

What is 6. Punjab Tractors Ltd. v. CIT authority for?

Where an Assessing Officer is not satisfied with the correctness of an assessee's claim for expenditures incurred to earn exempt income, the AO is bound to apply the provisions of Rule 8D.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2018 to 2024.

Also referred to as

Punjab Tractors Ltd. v. CIT · section 14A · Rule 8D · exempt income · disallowance · satisfaction of AO · expenditure · tax exempt income

Sections most often in play

Section 115JBSection 143(3)Section 14ASection 14A(2)Section 14A(3)
Read the full judgment

Issues it is cited on

disallowance under section 14asection 14aprevious yearprescribedcompanysection 14indiatotal incomebusinessinterest

Judgments citing 6. Punjab Tractors Ltd. v. CIT

Indiabulls Real Estate Limited, New Delhi vs. DCIT Central Circle 12(1), New Delhi

In the result, the appeal of the assessee is allowed

ITA 5954/DEL/2019[2013-14]Status: DisposedITAT Delhi17 May 2024AY 2013-14

Bench: Shri M. Balaganesh & Shri Vimal Kumarm/S. Indiabulls Real Estate Ltd, Vs. Dcit, M-62 & 63, First Floor, Central Circle-12(1), Connaught Place, New Delhi New Delhi (Appellant) (Respondent) Pan:Aabci5194F

For Appellant: Shri Lalit Mohan, CAFor Respondent: Shri Sandip Kumar Mishra, Sr. DR
Section 143(3)Section 14ASection 14A(2)

…income, merely because he did not expressly record his dissatisfaction about assessee's calculation, his conclusion could not be rejected. 6. Punjab Tractors Ltd Vs CIT [2017] 78 taxmann.com 65 (Punjab & Haryana)/[2017] 246 Taxman 31 (Punjab & Haryana)/[2017] 393 ITR 223 (Punjab & Harvana)/[2017] 293 CTR 50 (Punjab & Haryana), 2017-TIQL- 353- HC-P&H-IT where Hon'ble Punjab & Haryana High Court held that AO is bound to apply provisions of Rule 8D where he is not satisfied with the correctness of the claim of assessee in respect of expenditures incurred to earn exempt income. 7. Avon Cycles Ltd Vs CIT [2015] 53 tax…

Girnar Software Private Limited, 6Th Floor, Jaipur Textile Market, B-2, Near Model Town, Malviya Nagar, Jaipur vs. PCIT – 2, Jaipur, New Central Revenue Building

In the result, the appeal of the assessee is allowed

ITA 330/JPR/2023[2018-19]Status: DisposedITAT Jaipur28 Aug 2023AY 2018-19

Bench: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri PC Parwal, CAFor Respondent: Shri Arvind Kumar (CIT)
Section 142(1)Section 143(2)Section 14ASection 263

…able to be quashed.” (emphasis supplied) Case laws relied upon by the Ld PCIT are not applicable The Ld PCIT has relied upon the following cases. The case laws relied are not applicable due to the reason explained under: • Punjab Tractor Ltd vs CIT [2017] 393 ITR 223 (P&H): In the said case, the assessee had earned exempt income of Rs 225.72 lacs and therefore the Hon’ble HC held that where the assessing office is not satisfied with correctness of claim of assessee, the is bound by provisions of sub section (2) of section 14A to follow prescribed method which at relevant time was Rule 8D. In the case of the A…

M/S. Ferrocare International, Pune vs. Income-Tax Officer, Ward - 14(3), Pune

Appeal is partly allowed in above terms

ITA 1247/PUN/2018[2015-16]Status: DisposedITAT Pune12 Jul 2022AY 2015-16

Bench: Shri S.S. Godara & Dr. Dipak P. Ripoteनिर्धारण वषा / Assessment Year : 2015-16 M/S. Ferrocare International Vs. Ito, Ward S.No.32/3/8, Yewalewadi Road, 14(3), Pune Kondhwa Budruk, Pune – 411048 Pan: Aaaff5100C Appellant Respondent

Section 114Section 143(3)Section 14ASection 14A(1)Section 14A(2)

…2) will arise only when the appellant discharges burden cost u/s.14A(1). The appellant has failed to discharge primary onus of the basis of computation of Rs. 36,000/-. 5.6.1 The Punjab and Haryana High Court in case of Punjab Tractors Ltd Vs. CIT reported in 393 ITR 223 wherein it has been held that: "IT : Where assessee had earned tax free dividend income, Assessing Officer was justified in presuming that assessee had incurred expenditure towards administrative activities necessary to earn said income and, thus, he was entitled to resort to rule 8D." It is to be mentioned that Rule 8D(2)(iii) prescribes expendi…

The Dy. CIT, Gandhinagar Circle, Gandhinagar vs. M/S. Kalparatru Power Transmission Limited, Gandhinagar

Appeal of the assessee is dismissed

ITA 2853/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad06 Jul 2022AY 2012-13
For Appellant: Shri Milin Mehta, A.RFor Respondent: Shri Mohd Usman, CIT/DR
Section 143(3)Section 250(6)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Ms. Annapurna Gupta, Accountant Member And Shri TR Senthil Kumar, Judicial Member ITA No. 2471 & 2853/Ahd/2017 & Assessment Years 2012-13 & 2013-14 Kalpataru Power The DCIT, Gandhinagar Transmission Ltd. 101, Circle, Gandhinagar Part III, GIDC Estate, Vs Sector 28, Gandhinagar, Gujarat-382028 PAN: AAACK8387R Kalpataru Power Transmission Ltd. 101, The DCIT, Gandhinagar Vs Part III, GIDC Estate, Circle, Gandhinagar Sector 28, Gandhinagar, Gujarat-382028 (Appellant) PAN: AAACK8387R (Respondent) Appellant by : Shri Milin Mehta, A.R. Respondent b…

Kalpataru Power Transmission Ltd., Gandhinagar vs. The Dy. CIT, Gandhinagar Circle, Gandhinagar

Appeal of the assessee is dismissed

ITA 2472/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad06 Jul 2022AY 2013-14
For Appellant: Shri Milin Mehta, A.RFor Respondent: Shri Mohd Usman, CIT/DR
Section 143(3)Section 250(6)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Ms. Annapurna Gupta, Accountant Member And Shri TR Senthil Kumar, Judicial Member ITA No. 2471 & 2853/Ahd/2017 & Assessment Years 2012-13 & 2013-14 Kalpataru Power The DCIT, Gandhinagar Transmission Ltd. 101, Circle, Gandhinagar Part III, GIDC Estate, Vs Sector 28, Gandhinagar, Gujarat-382028 PAN: AAACK8387R Kalpataru Power Transmission Ltd. 101, The DCIT, Gandhinagar Vs Part III, GIDC Estate, Circle, Gandhinagar Sector 28, Gandhinagar, Gujarat-382028 (Appellant) PAN: AAACK8387R (Respondent) Appellant by : Shri Milin Mehta, A.R. Respondent b…

Kalpataru Power Transmission Ltd., Gandhinagar vs. The Dy. CIT, Gandhinagar Circle, Gandhinagar

Appeal of the assessee is dismissed

ITA 2471/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad06 Jul 2022AY 2012-13
For Appellant: Shri Milin Mehta, A.RFor Respondent: Shri Mohd Usman, CIT/DR
Section 143(3)Section 250(6)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Ms. Annapurna Gupta, Accountant Member And Shri TR Senthil Kumar, Judicial Member ITA No. 2471 & 2853/Ahd/2017 & Assessment Years 2012-13 & 2013-14 Kalpataru Power The DCIT, Gandhinagar Transmission Ltd. 101, Circle, Gandhinagar Part III, GIDC Estate, Vs Sector 28, Gandhinagar, Gujarat-382028 PAN: AAACK8387R Kalpataru Power Transmission Ltd. 101, The DCIT, Gandhinagar Vs Part III, GIDC Estate, Circle, Gandhinagar Sector 28, Gandhinagar, Gujarat-382028 (Appellant) PAN: AAACK8387R (Respondent) Appellant by : Shri Milin Mehta, A.R. Respondent b…

Icici Home Finance Company Ltd, Mumbai vs. Addl CIT 10(1), Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1325/MUM/2013[2009-10]Status: DisposedITAT Mumbai03 Jun 2022AY 2009-10

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Aarti VissanjiFor Respondent: R.A. Dhyani
Section 14ASection 201Section 250Section 36(1)(viii)Section 36(1)(viil)Section 37(1)

…oked Rule 8D — paragraph 6 Submission: Recording of satisfaction is essential I.P. Support Services India P. Ltd. 378 ITR 340 (Del) CIT v REI Agro Ltd. GA 3022 of 2013 (Cal) Shapoorji Pallonji & Co. v DCIT, 164 ITD 42 Mum ITAT — para 3.5 Punjab Tractors v CIT 393 ITR 223, 237 (18-21) (P&H) Ground No. 1(iii) — whether CIT(A) erred in restricting the disallowance under sec.14A holding that the total investments of Rs. 1353.84 crores is not attributable for earning exempt income and in holding that investment of Rs. 428.89 crores is attributable for earning exempt income. Submissions: AO had adopted average of total…

Anamica Financial Services Pvt. Ltd., New Delhi vs. DCIT, Circle- 2(2), New Delhi

In the result, both the appeals filed by the respective assessees are partly allowed for statistical purpose

ITA 8203/DEL/2018[2013-14]Status: DisposedITAT Delhi14 Jul 2020AY 2013-14

Bench: Sh. R. K. Panda & Ms. Suchitra Kambleassessment Year: 2012-13

Section 10Section 14Section 14ASection 4

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI (THROUGH VIRTUAL COURT HEARING) BEFORE SH. R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year: 2012-13 Anamica Portfolio Pvt. Ltd. Vs. DCIT 206-207, Ansal Satyam RDC, Circle – 2 (2) Rajnagar New Delhi Ghaziabad UP 201001 (APPELLANT) (RESPONDENT) Assessment Year: 2013-14 Anamica Financial Services Vs. DCIT Pvt. Ltd. 206-207, Ansal Circle – 2 (2) Satyam RDC, Rajnagar New Delhi Ghaziabad UP 201001 (APPELLANT) (RESPONDENT) Appellant by Sh. Rajeev Khandelwal, CA Respondent by Sh. M. Baranesl, Senior DR Date of he…

ACIT, New Delhi vs. M/S. Indiabulls Financial Services Ltd., New Delhi

In the result, both the appeals of the revenue are dismissed

ITA 6603/DEL/2016[2012-13]Status: DisposedITAT Delhi11 Mar 2020AY 2012-13

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 6602/Del/2016 : Asstt. Year : 2012-13 Asstt. Commissioner Of Vs M/S Indiabulls Real Estate Ltd., Income Tax, Circle-12(1), M-62 & 63, First Floor, Connaught New Delhi Place, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabci5194F

For Appellant: Sh. Gautam Jain, Adv. &For Respondent: Sh. Rajesh Kumar Kedia, CIT DR
Section 14A

…income, merely because he did not expressly record his dissatisfaction about assessee's calculation, his conclusion could not be rejected. 6. Punjab Tractors Ltd Vs CIT [2017] 78 taxmann.com 65 (Punjab & Haryana)/[2017] 246 Taxman 31 (Punjab & Haryana)/[2017] 393 ITR 223 (Punjab & Harvana)/[2017] 293 CTR 50 (Punjab & Haryana), 2017-TIQL-353- HC-P&H-IT where Hon’ble Punjab & Haryana High Court held that AO is bound to apply provisions of Rule 8D where he is not satisfied with the correctness of the claim of assessee in respect of expenditures incurred to earn exempt income. 7. Avon Cycles Ltd Vs CIT [2015] 53 tax…

ACIT, New Delhi vs. M/S. Indiabulls Real Estate Ltd., New Delhi

In the result, both the appeals of the revenue are dismissed

ITA 6602/DEL/2016[2012-13]Status: DisposedITAT Delhi11 Mar 2020AY 2012-13

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 6602/Del/2016 : Asstt. Year : 2012-13 Asstt. Commissioner Of Vs M/S Indiabulls Real Estate Ltd., Income Tax, Circle-12(1), M-62 & 63, First Floor, Connaught New Delhi Place, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabci5194F

For Appellant: Sh. Gautam Jain, Adv. &For Respondent: Sh. Rajesh Kumar Kedia, CIT DR
Section 14A

…income, merely because he did not expressly record his dissatisfaction about assessee's calculation, his conclusion could not be rejected. 6. Punjab Tractors Ltd Vs CIT [2017] 78 taxmann.com 65 (Punjab & Haryana)/[2017] 246 Taxman 31 (Punjab & Haryana)/[2017] 393 ITR 223 (Punjab & Harvana)/[2017] 293 CTR 50 (Punjab & Haryana), 2017-TIQL-353- HC-P&H-IT where Hon’ble Punjab & Haryana High Court held that AO is bound to apply provisions of Rule 8D where he is not satisfied with the correctness of the claim of assessee in respect of expenditures incurred to earn exempt income. 7. Avon Cycles Ltd Vs CIT [2015] 53 tax…

Welspun Investments & Commercials Pvt. Ltd., Mumbai vs. ITO - 8(3)(4), Mumbai

In the result, appeal filed by the assessee for assessment year 2013-14 is dismissed

ITA 2782/MUM/2018[2013-14]Status: DisposedITAT Mumbai28 Jan 2019AY 2013-14

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2013-14 M/S Welspun Investments & The Income Tax Officer-8(3)(4), Commercial Pvt. Ltd., R. No. 616, 6Th Floor, 9Th Floor, “B” Wing, Trade World Aayakar Bhavan, Premises, Kamala Mills Compound, Vs. Mumbai - 400020 Senapati Bapat Marg, Lower Parel, Mumbai - 400013 Pan: Aaacw8345B (Appellant) (Respondent)

For Appellant: Shri Mitesh N. Shah (AR)For Respondent: Shri C.S. Anjaria (DR)
Section 10(34)Section 143Section 14ASection 234B

…bout correctness of dividend received and the demat charges paid and any amount credited/debited by the bank would be accepted. In the case of Punjab Tractors Ltd. Vs CIT [2017] 78 taxmann.com 65 (Punjab & Haryana)/2017) 246 Taxman 31 Punjab & Haryana)/[201] 393 ITR 223 (Punjab & Haryana) / [2017] 293 CTR 50 (Punjab & Haryana) , honourable Punjab and Haryana High Court has held that where assessee had earned tax free dividend income, the AO was justified in presuming that assessee had in curred expenditure towards administrative activities 8 Assessment Year: 2013-14 necessary to earn said income and, thus, h…

Kalyani Steels Ltd vs. Additional Commissioner of Income-Tax

In the result, the appeal of assessee is allowed

ITA 648/PUN/2016[2009-10]Status: DisposedITAT Pune23 Feb 2018AY 2009-10

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: Shri Nikhil PathakFor Respondent: Shri Dr. Vivek Aggarwal
Section 10(33)Section 115JSection 143(3)Section 14A

…s 14A of the Act. On the issue of necessity of recording of satisfaction while disallowing expenses u/s 14A we have come across a recent decision rendered by Hon’ble Punjab and Haryana High Court in the case of Punjab Tractors Ltd., Vs. CIT reported in (2017) 393 ITR 223 (P&H) wherein Hon’ble High Court has held that AO must record satisfaction that claim regarding expenditure is not satisfactory. The relevant observations by Hon’ble High Court are reproduced hereunder : “11.Section 14A specifies the circumstances in which the Assessing Officer is entitled to determine the amount of expenditure incurred in relat…

6. Punjab Tractors Ltd. v. CIT (393 ITR 223) — Cited in 12 Judgments | BharatTax