ACB India Ltd. v. ACIT

374 ITR 108High Court2015#205 most cited

What is ACB India Ltd. v. ACIT authority for?

When computing disallowance under Section 14A of the Income-tax Act using Rule 8D of the Income-tax Rules, only investments that have actually yielded exempt income during the relevant previous year are to be considered for the calculation.

364

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2026.

Also referred to as

ACB India Ltd v ACIT · Section 14A · Rule 8D · disallowance under Section 14A · expenditure for exempt income · investments yielding exempt income · computation of disallowance · Delhi High Court 374 ITR 108 · non-yielding investments · average investments Rule 8D

Also reported as

62 Taxmann.com 71235 Taxmann 22

Sections most often in play

Section 14ASection 143(3)Section 153ASection 1961Section 80ICSection 153DSection 132(1)Section 56(2)(x)

Issues it is cited on

section 153a proceedingsstrategic investmentsection 14a(2)section 80icdisallowance under section 14asection 115jb(2)section 56(2)(x)valuation of sharesdisallowance u/s 14asection 139(5)disallowance of interest expendituresection 92b

Judgments citing ACB India Ltd. v. ACIT

Cosmic Informatics Pvt. Ltd., New Delhi vs. ACIT Central Circle - 2, New Delhi

In the result, appeal of the Revenue in appeal No

ITA 2443/DEL/2024[2013-14]Status: DisposedITAT Delhi02 Jan 2025AY 2013-14

Bench: Shri Sudhir Kumar & Shri Manish Agarwalita No.2442 To 2445/Del/2023 (Assessment Years 2013-14 To 2016-17) Dcit, Lotus Herbals Pvt. Ltd., Cc-20, Delhi. Room No.269A, 2 Nd Floor, Ara Vs. Centre, E-2, Jhandewalan, New Delhi-110055. Pan-Aaacl0198F (Appellant) (Respondent) Assessee By Shri Rohit Jain, Adv. & Shri Shivam Gupta, Ca Department By Sh. Mukesh Jha, Cit Dr & Ms. Pooja Swroop, Cit-Dr 29.09.2025 Date Of Hearing Date Of Pronouncement 23.12.2025 O R D E R Per Manish Agarwal, Am: These Are Five Appeals Filed By The Revenue Against The Separate Orders Of Learned Commissioner Of Income Tax (Appeals)-27, New Delhi. All Are Dated 12.06.2023 For Assessment Years As Tabulated As Under:

Section 143Section 143(3)Section 147Section 148Section 151

…t investment which yielded exempt income should be considered for making computation of the addition in terms of Rule 8D of the IT Rule, 1962 by placing reliance on the judgment of Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT reported in 347 ITR 108 (Delhi). It is also a matter of fact that assessee has not challenged such findings of ld. CIT(A) before us. DCIT vs. Lotus Hearbals Pvt. Ltd. 33. Since the assessee is having exempt income and have the investments from which exempt income was not earned besides having investments which yielded exempt income. It is also not in dispute that the p…

Air India Limited, Mumbai vs. ACIT Circle 5(1)(1), Mumbai

In the result, the appeal of the assessee bearing ITA No

ITA 5632/MUM/2024[2017-18]Status: DisposedITAT Mumbai18 Dec 2024AY 2017-18

Bench: Shri.Narendra Kumar Billaiya & Shri Anikesh Banerjee

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Ram Krishn Kedia (SR DR)
Section 143(3)Section 14ASection 250

…well settled law that disallowance under section 14A can be made only in respect of those investments which have yielded tax free income during the year as held in Caraf Builders (supra) and ACB India Ltd. v. Asstt. CIT [2015] 62 taxmann.com 71/235 Taxman 22/374 ITR 108 (Delhi). The AO is thus directed to delete the disallowance under section 14A made over and above the disallowance offered by the assessee.” 8. In our view,Ld. CIT(A) erred in accepting calculations based on the pre- amended provisions. Post-amendment, only investments that yield dividend income are to be considered for disallowance. Relying on t…

Deputy Commissioner of Income Tax, New Delhi vs. Living Media India Limited, New Delhi

In the result, appeal of the Revenue is without any merit and therefore dismissed

ITA 2949/DEL/2024[2017-18]Status: DisposedITAT Delhi22 Oct 2024AY 2017-18

Bench: Pradip Kumar Kedia & Shri Vimal Kumar

Section 143(3)Section 14ASection 260A

…any exempt income cannot be reckoned to apply the statutory formula provided under Rule 8D of the Income Tax Rules. For this proposition, the ld. Counsel relied upon the judgment rendered by the Hon'ble Delhi High Court in the case of ACB India Ltd. Vs. ACIT (374 ITR 108) (Del.) and PCIT Vs. Caraf Builders and Construction Pvt. Ltd. (2019) 101 taxmann.com 167 (Del.) (SLP dismissed) (2019) 112 taxmann.com 322 (SC). 4.1 The ld. Counsel next submitted that identical issue cropped up in Assessment Year 2018-19 where similar disallowance were carried out by the Revenue based on total investments in shares rather than…

DCIT, New Delhi vs. M/S. Ulfex Ltd., New Delhi

ITA 2811/DEL/2017[2009-10]Status: DisposedITAT Delhi26 Jul 2024AY 2009-10

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

DCIT, New Delhi vs. M/S. Ulfex Ltd., New Delhi

ITA 2810/DEL/2017[2008-09]Status: DisposedITAT Delhi26 Jul 2024AY 2008-09

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

DCIT, New Delhi vs. M/S. Ulfex Ltd., New Delhi

ITA 2809/DEL/2017[2007-08]Status: DisposedITAT Delhi26 Jul 2024AY 2007-08

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

DCIT, New Delhi vs. M/S. Ulfex Ltd., New Delhi

ITA 2808/DEL/2017[2006-07]Status: DisposedITAT Delhi26 Jul 2024AY 2006-07

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

DCIT, New Delhi vs. M/S. Ulfex Ltd., New Delhi

ITA 2807/DEL/2017[2005-06]Status: DisposedITAT Delhi26 Jul 2024AY 2005-06

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

DCIT, New Delhi vs. M/S. Ulfex Ltd., New Delhi

ITA 2806/DEL/2017[2004-05]Status: DisposedITAT Delhi26 Jul 2024AY 2004-05

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

Uflex Ltd., New Delhi vs. ACIT, New Delhi

ITA 1732/DEL/2017[2009-10]Status: DisposedITAT Delhi26 Jul 2024AY 2009-10

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

Uflex Ltd., New Delhi vs. ACIT, New Delhi

ITA 1731/DEL/2017[2008-09]Status: DisposedITAT Delhi26 Jul 2024AY 2008-09

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

Uflex Ltd., New Delhi vs. ACIT, New Delhi

ITA 1730/DEL/2017[2007-08]Status: DisposedITAT Delhi26 Jul 2024AY 2007-08

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

Uflex Ltd., New Delhi vs. ACIT, New Delhi

ITA 1729/DEL/2017[2006-07]Status: DisposedITAT Delhi26 Jul 2024AY 2006-07

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

Uflex Ltd., New Delhi vs. ACIT, New Delhi

ITA 1728/DEL/2017[2005-06]Status: DisposedITAT Delhi26 Jul 2024AY 2005-06

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

Uflex Ltd., New Delhi vs. ACIT, New Delhi

ITA 1727/DEL/2017[2004-05]Status: DisposedITAT Delhi26 Jul 2024AY 2004-05

Bench: Shri G.S Pannu, Hon’Ble & Shri Vimal Kumar

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Ms. Sarita Kumari, CIT-DR
Section 115JSection 37Section 43B

…eriod. Reliance in this regard is placed on the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 27 (Delhi S.B) and the decision of the Hon’ble Delhi High Court in the case of ACB India Limited vs. ACIT 374 ITR 108. In this view of the matter the stand of the assessee is upheld and that of Revenue is declined. 18. Apart from the aforesaid, one more issue involved in ITA No. 1729/Del/2017 (AY 2006-07) is pertaining to addition of Rs. 1,58,320/- made on account of understatement of Long Term Capital Gain. In this regard, the facts are that assessee sold a pro…

Raoul Thackersey, Mumbai vs. DCIT 12(1), Mumbai

Appeal is partly allowed in above terms

ITA 1262/MUM/2017[2011-12]Status: DisposedITAT Mumbai22 Jul 2024AY 2011-12

Bench: Shri Satbeer Singh Godara & Shri Girish Agrawal

For Appellant: Shri K. GopalFor Respondent: Smt. Mahita Nair, Sr. DR
Section 143(3)Section 14A

…ssment year 2008-2009 whereas Rule 8D was applicable w.e.f. 01.04.2008 onwards. The same stands distinguished in very terms. 8.2. Next comes equally important aspect of computation of the impugned disallowance(s). The Revenue could hardly dispute that [2015] 374 ITR 108 (Del.) ACB India Ltd., vs. ACIT; [2017] 165 ITD 27 (Del.) (SB) ACIT vs. Vineet Investments; have settled the issue that such a disallowance has to be computed after considering the dividend yielding investments only. We find from a perusal of the assessee’s paper book in page-18 that he had filed the corresponding list of dividend yielding invest…

DCIT Central Circle-25, New Delhi vs. Neel Metal Products Ltd, New Delhi

ITA 309/DEL/2021[2018-19]Status: DisposedITAT Delhi09 Jul 2024AY 2018-19

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharma

For Appellant: Shri Salil Aggarwal, Sr.AdvocateFor Respondent: Shri Subhra Jyoti Chakraborty

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE VICE PRESIDENT AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.296/Del/2021 (Assessment Year: 2011-12) ITA No.273/Del/2021 (Assessment Year: 2014-15) ITA No.274/Del/2021 (Assessment Year: 2016-17) ITA No.275/Del/2021 (Assessment Year: 2018-19) DCIT, Vs Neel Metal Products Ltd. Central Circle-25, (Formerly known as Neel New Delhi. Auto Pvt. Ltd.), 601, Hemkunt Chamber, 89, Nehru Place, New Delhi – 110 019. PAN: AABCN6304Q ITA No.302/Del/2021 (Assessment Year: 2011-12) ITA No.304/Del/2021 (Assessment Year: 2013-14)…

DCIT Central Circle-25, New Delhi vs. Neel Metal Products Ltd, New Delhi

ITA 308/DEL/2021[2017-18]Status: DisposedITAT Delhi09 Jul 2024AY 2017-18

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharma

For Appellant: Shri Salil Aggarwal, Sr.AdvocateFor Respondent: Shri Subhra Jyoti Chakraborty

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE VICE PRESIDENT AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.296/Del/2021 (Assessment Year: 2011-12) ITA No.273/Del/2021 (Assessment Year: 2014-15) ITA No.274/Del/2021 (Assessment Year: 2016-17) ITA No.275/Del/2021 (Assessment Year: 2018-19) DCIT, Vs Neel Metal Products Ltd. Central Circle-25, (Formerly known as Neel New Delhi. Auto Pvt. Ltd.), 601, Hemkunt Chamber, 89, Nehru Place, New Delhi – 110 019. PAN: AABCN6304Q ITA No.302/Del/2021 (Assessment Year: 2011-12) ITA No.304/Del/2021 (Assessment Year: 2013-14)…

DCIT Central Circle-25, New Delhi vs. Neel Metal Products Ltd, New Delhi

ITA 306/DEL/2021[2015-16]Status: DisposedITAT Delhi09 Jul 2024AY 2015-16

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharma

For Appellant: Shri Salil Aggarwal, Sr.AdvocateFor Respondent: Shri Subhra Jyoti Chakraborty

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE VICE PRESIDENT AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.296/Del/2021 (Assessment Year: 2011-12) ITA No.273/Del/2021 (Assessment Year: 2014-15) ITA No.274/Del/2021 (Assessment Year: 2016-17) ITA No.275/Del/2021 (Assessment Year: 2018-19) DCIT, Vs Neel Metal Products Ltd. Central Circle-25, (Formerly known as Neel New Delhi. Auto Pvt. Ltd.), 601, Hemkunt Chamber, 89, Nehru Place, New Delhi – 110 019. PAN: AABCN6304Q ITA No.302/Del/2021 (Assessment Year: 2011-12) ITA No.304/Del/2021 (Assessment Year: 2013-14)…

DCIT Central Circle-25, New Delhi vs. Neel Metal Products Ltd, New Delhi

ITA 305/DEL/2021[2014-15]Status: DisposedITAT Delhi09 Jul 2024AY 2014-15

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharma

For Appellant: Shri Salil Aggarwal, Sr.AdvocateFor Respondent: Shri Subhra Jyoti Chakraborty

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE VICE PRESIDENT AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.296/Del/2021 (Assessment Year: 2011-12) ITA No.273/Del/2021 (Assessment Year: 2014-15) ITA No.274/Del/2021 (Assessment Year: 2016-17) ITA No.275/Del/2021 (Assessment Year: 2018-19) DCIT, Vs Neel Metal Products Ltd. Central Circle-25, (Formerly known as Neel New Delhi. Auto Pvt. Ltd.), 601, Hemkunt Chamber, 89, Nehru Place, New Delhi – 110 019. PAN: AABCN6304Q ITA No.302/Del/2021 (Assessment Year: 2011-12) ITA No.304/Del/2021 (Assessment Year: 2013-14)…