ACG Associated Capsules (P) Ltd. v. CIT

Firestone Trading Pvt. Ltd., Mumbai vs. DCIT CC-6(4), Mumbai

In the result, the appeal of the assessee is allowed, as above

Bench: Shri G.S.Pannum/S. Firestone Trading Pvt. Ltd., 1110 Prasad Chambers, Opera House, Mumbai 400004 Pan: Aaacf 3313J ...... Appellant Vs. Dy. Commissioner Of Income-Tax, Central Circle.6(4), 19Th Floor, Air India Bldg., Nariman Point, Mumbai 400021 .... Respondent

…rms of clause(1) of Explanation (baa) to section 80HHC of the Act. As per the assessee, what is excludible is ‘net interest’ and for that matter he has also referred to the judgment of the Hon’ble Supreme Court in the ACG Associated Capsules Pvt. Ltd v. CIT , 343 ITR 89 (SC). Be that as it may, what is relevant is that the impugned decision could not have been taken by the Assessing Officer in a summary manner so as to suggest that there is a 4 mistake apparent from record. Notably, a mistake apparent from record is one which is patent and obvious, on which no two views are possible. Therefore, without going int…

DCIT Cen Cir 8(3), Mumbai vs. Jsw Energy Ltd, Mumbai

In the result, both the appeals of the Revenue and the assessee are allowed in part in terms indicated hereinabove

Bench: Shri Saktijit Dey & Shri Manoj Kumar Aggarwal

…7th October 2016 in ITA no.462/Mum. /2014, restored the issue back to the file of the Assessing Officer with the following observations. “5. The ld. AR relied on the decision of Hon'ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd. v/s CIT, 343 ITR 89 (SC), and contended that only net interest should be excluded from eligible profit and not the gross interest income. We have carefully gone through the decision of Hon'ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd., (supra) wherein it was held that while computing deduction u/s.80fllFIC, net interest income which has been incl…

Jsw Energy Ltd, Mumbai vs. ACIT Cen Cir 46, Mumbai

In the result, both the appeals of the Revenue and the assessee are allowed in part in terms indicated hereinabove

Bench: Shri Saktijit Dey & Shri Manoj Kumar Aggarwal

…7th October 2016 in ITA no.462/Mum. /2014, restored the issue back to the file of the Assessing Officer with the following observations. “5. The ld. AR relied on the decision of Hon'ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd. v/s CIT, 343 ITR 89 (SC), and contended that only net interest should be excluded from eligible profit and not the gross interest income. We have carefully gone through the decision of Hon'ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd., (supra) wherein it was held that while computing deduction u/s.80fllFIC, net interest income which has been incl…

Asst CIT Cen Cir 46, Mumbai vs. Jsw Energy Ltd, Mumbai

In the result, both the appeals of the Revenue and the assessee are allowed in part in terms indicated hereinabove

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. No. 462/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Jsw Energy Limited Acit, Central Circle-46, बिाम/ Jsw Centre, Bandra Kurla Complex, Aayakar Bhavan, M. K. Road, Vs. Bandra (E), Mumabi-400 051 Mumbai स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Assessee) : (Revenue) आमकय अऩीर सं./I.T.A. No. 981/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Acit, Central Circle-46, Jsw Energy Limited बिाम/ Aayakar Bhavan, M. K. Road, Jsw Centre, Bandra Kurla Mumbai Complex, Vs. Bandra (E), Mumabi-400 051 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Revenue) : (Assessee) Assessee By : Shri Rakesh Joshi Revenue By : Shri K. Ravi Kiran सुनवाई की तायीख / : 12.7.2016 Date Of Hearing घोषणा की तायीख / : 07.10.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.: These Are The Cross Appeals Filed By The Assessee & The Revenue Against The Order By The Ld. Cit(A) For The Assessment Year (A.Y.) 2007-08. 2

…functioning of Power Project and thus, it was contended that the interest earned on such amount is directly related to the power undertaking. 5. The ld. AR relied on the decision of Hon‟ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd v. CIT 343 ITR 89 (SC), and contended that only net interest should be excluded from eligible profit and not the gross interest income. We 3 ITA Nos. 462 & 981/Mum/2014 (A.Y. 2007-08) JSW Energy Limited have carefully gone through the decision of Hon‟ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd., (supra) wherein it was held that while computin…

Jsw Energy Ltd, Mumbai vs. Asst CIT Cir 11(5), Bangalore

In the result, both the appeals of the Revenue and the assessee are allowed in part in terms indicated hereinabove

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. No. 462/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Jsw Energy Limited Acit, Central Circle-46, बिाम/ Jsw Centre, Bandra Kurla Complex, Aayakar Bhavan, M. K. Road, Vs. Bandra (E), Mumabi-400 051 Mumbai स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Assessee) : (Revenue) आमकय अऩीर सं./I.T.A. No. 981/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Acit, Central Circle-46, Jsw Energy Limited बिाम/ Aayakar Bhavan, M. K. Road, Jsw Centre, Bandra Kurla Mumbai Complex, Vs. Bandra (E), Mumabi-400 051 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Revenue) : (Assessee) Assessee By : Shri Rakesh Joshi Revenue By : Shri K. Ravi Kiran सुनवाई की तायीख / : 12.7.2016 Date Of Hearing घोषणा की तायीख / : 07.10.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.: These Are The Cross Appeals Filed By The Assessee & The Revenue Against The Order By The Ld. Cit(A) For The Assessment Year (A.Y.) 2007-08. 2

…functioning of Power Project and thus, it was contended that the interest earned on such amount is directly related to the power undertaking. 5. The ld. AR relied on the decision of Hon‟ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd v. CIT 343 ITR 89 (SC), and contended that only net interest should be excluded from eligible profit and not the gross interest income. We 3 ITA Nos. 462 & 981/Mum/2014 (A.Y. 2007-08) JSW Energy Limited have carefully gone through the decision of Hon‟ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd., (supra) wherein it was held that while computin…

The DCIT 1(1), Mumbai vs. M/S. Forbes Gokak Ltd, Mumbai

In the result, Revenue’s appeal for A

Bench: Shri Jason P. Boaz & Shri Sandeep Gosain M/S. Forbes & Company Ltd. D C I T – 1(1) (Formerly Forbes Gokak Ltd.) Room No. 579 Vs. Forbes Bldg., Charanjit Ran Aayakar Bhavan, M.K. Road Marg, Fort, Mumbai 400001 Mumbai 400020 Pan – Aaacf1765A Appellant Respondent D C I T – 1(1) M/S. Forbes & Company Ltd. (Formerly Forbes Gokak Ltd.) Room No. 579 Vs. Forbes Bldg., Charanjit Ran Aayakar Bhavan, M.K. Road Marg, Fort, Mumbai 400001 Mumbai 400020 Pan – Aaacf1765A Appellant Respondent

…e deduction under section 80HHC of the Act, it is the net interest expenses that is to be considered. In this regard reliance was placed on the following judicial pronouncements: - M/s. Forbes & Company Ltd. (i) ACG Associated Capsules (P) Ltd. vs. CIT (2012) 343 ITR 89 (SC) (ii) Lalsons Enterprises vs. DCIT (2004) 89 itd 25 (Del. SB) (iii) Shri Ram Honda Power Equipment (2007) 289 ITR 475 (Del) 15.3 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial pronouncements cited. In our view, this issue is well settled by the judicial pronouncements ci…

Forbes & Company Limited (Formerly Known As Forbes Gokak Limited), Mumbai vs. Dy.C.I.T-1(1), Mumbai

In the result, Revenue’s appeal for A

Bench: Shri Jason P. Boaz & Shri Sandeep Gosain M/S. Forbes & Company Ltd. D C I T – 1(1) (Formerly Forbes Gokak Ltd.) Room No. 579 Vs. Forbes Bldg., Charanjit Ran Aayakar Bhavan, M.K. Road Marg, Fort, Mumbai 400001 Mumbai 400020 Pan – Aaacf1765A Appellant Respondent D C I T – 1(1) M/S. Forbes & Company Ltd. (Formerly Forbes Gokak Ltd.) Room No. 579 Vs. Forbes Bldg., Charanjit Ran Aayakar Bhavan, M.K. Road Marg, Fort, Mumbai 400001 Mumbai 400020 Pan – Aaacf1765A Appellant Respondent

…e deduction under section 80HHC of the Act, it is the net interest expenses that is to be considered. In this regard reliance was placed on the following judicial pronouncements: - M/s. Forbes & Company Ltd. (i) ACG Associated Capsules (P) Ltd. vs. CIT (2012) 343 ITR 89 (SC) (ii) Lalsons Enterprises vs. DCIT (2004) 89 itd 25 (Del. SB) (iii) Shri Ram Honda Power Equipment (2007) 289 ITR 475 (Del) 15.3 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial pronouncements cited. In our view, this issue is well settled by the judicial pronouncements ci…

Keymed, Mumbai vs. DCIT Cir 4, Thane

In the result, appeal stands allowed for statistical purposes

Bench: Shri D. Karunakara Rao & Shri Saktijit Dey

…nst the income and the net amount has to be taken to the Profit & Loss account either as income or expenditure. In this context, learned Authorised Representative relied upon the decision of the Hon'ble Supreme Court in ACG Associated Capsules v/s CIT, [2012] 343 ITR 89 (SC). 12. The learned Departmental Representative on the other hand relied upon the order of the authorities below. 13. We have considered the submissions of the parties and perused the material available on record. As could be seen from the order of the Assessing Officer and the learned Commissioner (Appeals), the primary reason for which they…

Prestress Wire Industries, Mumbai vs. Addl CIT 12(1), Mumbai

…ng the income qualifying for deduction has to be the „net interest income and not the „gross interest receipt‟. In support of his contention, Ld Counsel relied on the judgment of the Hon‟ble Supreme Court in the case of ACG Associated Capsules P. Ltd vs. CIT (343 ITR 89). In this connection, both the parties stated that the said claim of the assessee needs to be considered in favour of the assessee in view of the binding judgment of the Hon‟ble Apex Court in the case of ACG Associated Capsules P. Ltd vs. CIT (supra). Accordingly, we direct the AO to apply the said judgment on considering the facts of the present…

M/S. Tata Industries Ltd, Mumbai vs. The ITO 2(3)(3), Mumbai

In the result, appeal of the assessee is treated as partly allowed

Bench: Shri G. S. Pannu, Accoutant Member & Shri Sanjay Gargtata Industries Ltd., Vs. The Income Tax Officer, Ward- Bombay House,24,Homi 2 (3) (3), Room No.555, Mody Street, Fort, Mumbai Aayakar Bhavan, Maharshi 400 001 Karve Road, Mumbai 400 020 Pan: Aaact 4058 L Appellant .. Respondent Appellant By Shri Dinesh Vyas, Ar Respondent By Shri Alok Johri, Dr Date Of Hearing 22-06-2016 Date Of Pronouncement 20-07-2016

…omputed in accordance with the provisions of the Act and forming part of the gross total income and not with reference to the full amount of dividend received by the assessee.” d) Hon’ble Supreme Court in the case of ACG Associated Capsules (P.) Ltd. [(2012) 343 ITR 89] followed the ratio of Hon’ble constitution Bench of Supreme Court in the case of Distributors (Baroda)(P) Ltd [(1985) 155 ITR 120] while adjudicating the issue of netting of interest for consideration u/s. 80HHC of the Act. Hon’ble Supreme Court distinguished Hon’ble Bombay High Court decision in the case of CIT V/s. Asian Star Co. Ltd. (2010) 32…

Agarwal Metals & Alloys, Mumbai vs. Addl CIT RG 14(1), Mumbai

In the result, the appeal of the assessee is treated as allowed for statistical purposes

Bench: S/Shri B.R. Baskaran (Am) & Ramlal Negi (Jm)

…ture and accordingly the deduciton u/s 80IB should be worked out. In support of this proposition, the Ld A.R placed reliance on the following case law:- a. Tata Sponge Iron Ltd Vs. CIT (2007)(292 ITR 175)(Ori) b. ACG Associated Capsultes P Ltd Vs. CIT (2012)(343 ITR 89)(SC) c. CIT Vs. Taj International Jewellers (ITA No.985 of 2010)(Delhi) 22. We heard the parties on this issue. The netting off sought by the assessee could be given, if it is shown that there is nexus between the borrowed funds and loans given/deposits made. Since this factual aspect requires verification, 10 Agarwal Metals & Alloys we set asi…