ACIT v. Vireet Investment Pvt. Ltd.

165 ITD 27Income Tax Appellate Tribunal2017#55 most cited

What is ACIT v. Vireet Investment Pvt. Ltd. authority for?

No disallowance under section 14A can be made while computing book profits under section 115JB unless the expenditure is debited to the profit and loss account and satisfies clause (f) of Explanation 1 to section 115JB(2).

882

judgments rely on this decision, according to BharatTax’s citation analysis of 371,088 Indian tax judgments — from 2017 to 2026.

Also referred to as

ACIT v. Vireet Investment Pvt. Ltd. · Section 14A disallowance · Section 115JB book profits · MAT computation · expenditure for exempt income · Explanation 1 to Section 115JB(2)(f) · debit to profit and loss account · Vireet Investment Special Bench

Also reported as

58 ITR (Trib) 313

Sections most often in play

Section 14ASection 115JBSection 143(3)Section 1961Section 8DSection 37(1)Section 250Section 143(2)

Issues it is cited on

section 115jb(2)section 14a(2)strategic investmentbook profitscorporate guaranteesection 115jdisallowance under section 14adisallowance of interest expendituresection 115jbdisallowance u/s 14asection 92bsection 14a

Judgments citing ACIT v. Vireet Investment Pvt. Ltd.

State Bank of India, Mumbai vs. Addl CIT RG 2(2), Mumbai

In the result, the appeal by the Revenue is partly allowed for statistical purposes

ITA 3645/MUM/2016[2009-10]Status: DisposedITAT Mumbai06 Jun 2023AY 2009-10

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

For Appellant: S/Shri P.J. Pardiwala a/w Ninad PatadeFor Respondent: Ms. Surabhi Sharma
Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)

…ing the year should be considered for computation of disallowance under section 14A of the Act. We find that this claim of the assessee is supported by the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment (P) Ltd. (2017) 165 ITD 27 (Delhi-Trib.), wherein it was held that only those investments are to be considered for computing average value of investments, which yield exempt income during the year. Accordingly, we direct the AO to only considered those investments for the purpose of computation of State Bank of India ITA no.3645/Mum./2016 ITA no.4564/Mum./2016 disallowance…

DCIT Circle-27(1), New Delhi vs. Wahid Sandhar Sugars Ltd, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 6508/DEL/2019[2015-16]Status: DisposedITAT Delhi29 May 2023AY 2015-16

Bench: Shri G. S. Pannua N D Shri Challa Nagendra Prasad

For Appellant: Shri Vivek Verma
Section 10(1)Section 2Section 41(1)

…ule 8D(2)(iii), held that the Assessing Officer wrongly computed the disallowance and deleted the excess disallowance. Even otherwise in view of the decision of the Special Bench in the case of ACIT Vs. Vireet Investment (P) Ltd. 8 I.T.A. No. 6508/Del/2019 [165 ITD 27 (Del.) (SB)] and also the decision of the Hon’ble Delhi High Court in the case of ACB India Ltd. Vs. CIT [374 ITR 108] only those investments which yielded Tax free dividend income should be considered for disallowance under Rule 8D(2)(iii). Therefore, we see no infirmity in the order passed by the ld. CIT (Appeals). The ground raised by the Reven…

Talbros Automotive Components Ltd, New Delhi vs. ACIT, Circle-25(1), New Delhi

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

ITA 8239/DEL/2018[2014-15]Status: DisposedITAT Delhi23 May 2023AY 2014-15

Bench: Shri Challa Nagendra Prasad & Shri Pradip Kumar Kediaआ.अ.सं/.I.T.A No.8239/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Talbros Automotive Components Ltd., Acit Vs. 1411 & 1412, Nicholson Road, Circle 25(1), Kashmiri Gate, New Delhi. New Delhi. Pan No. Aaact0265F अपीलाथ" Appellant ""यथ"/Respondent

Section 14A

…cisions: - 1. PCIT vs. Caraf Builders & Constructions (P) Ltd. (101 taxmann.com 67) (Del.) [SLP dismissed by SC in PCIT vs. Caraf Builders & Constructions] (112 taxmann.com 322); 2. ACB India Ltd. vs. ACIT (374 ITR 108) (Del.); 3. ACIT vs. Vireet Investment (165 ITD 27) (Del.) (SB). 4. The Ld. Counsel further submits that if the investments on which dividend yielded was considered for the purpose of disallowance the disallowance works out to Rs.3,13,585/- being 0.5% of average investments of Rs.6,26,17,020/-. I.T.A. No. 8239/Del/2018 5. Ld. DR supported the orders of the authorities below. 6. Heard rival s…

M/S. Apollo Hospitals Enterprises Ltd., Chennai vs. ACIT, Central Circle -3(1), Chennai

In the result, appeal filed by the assessee is partly allowed for

ITA 690/CHNY/2022[2018-19]Status: DisposedITAT Chennai19 May 2023AY 2018-19

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha.G, Hon’Bleआयकर अपील सं./Ita No.690/Chny/2022 िनधा"रण वष" /Assessment Year: 2018-19 V. M/S.Apollo Hospitals Enterprise Ltd., The Asst. Commissioner- Shafee Mohammed Road, Of Income Tax, Thousands Lights, Central Circle-3(1), Chennai-600 006. Chennai. [Pan: Aaaca 5443 N] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Respondent: Mr.P.Sajit Kumar, JCIT
Section 115JSection 143(3)Section 14ASection 36(1)(va)Section 80J

…ok profit u/s.115JB of the Act. Having heard both the sides, :: 8 :: we find that this issue is squarely covered in favour of the assessee by the decision of the Special Bench, ITAT Delhi in the case of ACIT v. Vireet Investment (P) Ltd., reported in [2017] 165 ITD 27 (Delhi-Trib.) (SB). We further noted that the Hon’ble Karnataka High Court in the case of CIT v. Gokaldas Images (P) Ltd., reported in [2020] 429 ITR 526 (Kar.), had considered an identical issue and held that disallowance made u/s.14A of the Act, should not be added to book profit of the assessee computed u/s.115JB of the Act. Therefore, by fo…

Mukta Arts Limited, Mumbai vs. ACIT 16(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 670/MUM/2023[2017-18]Status: DisposedITAT Mumbai19 May 2023AY 2017-18
Section 115JSection 143(3)Section 14A

….14A is made, no adjustment can be made in the book profit computed u/s.115JB. Otherwise also adjustment of computation u/s.14A cannot be made u/s.115JB in view of the following judgments:-  Asstt. CIT v. Vireet Investment (P) Ltd. [2017] 82 taxmann.com 415/ 165 ITD 27 (SB).(Delhi)(Trib) 4 M/s. Mukta Arts Ltd.  Pr. CIT v. Atria Power Corpn. Ltd. [2022] 142 taxmann.com 412 (Karn.)( HC) [SLP dismissed Pr. CIT v. Atria Power Corpn. Ltd. [2022] 142 taxmann.com 413 (SC)/[2022] 289 Taxman 111 (SC)[26-08-2022] 7. Accordingly, both the grounds raised by the assessee are allowed. 8. In the result, appeal of the assesse…

Harshini Epc Private Limited, Hyderabad vs. ITO Ward-2(3), Hyderabad

ITA 399/HYD/2022[2013-14]Status: DisposedITAT Hyderabad16 May 2023AY 2013-14

Bench: Shri Rama Kanta Panda & Shri Laliet Kumar

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Shri M. Naveen Kumar
Section 139(1)Section 143(1)Section 143(2)Section 143(3)Section 14ASection 199Section 36Section 36(1)(va)

…provides for disallowance of the expenditure even where taxpayer in a particular year has not earned any exempt income. 13. We have heard the rival submissions and perused the material on record. By the decision of ACIT Vs. Vireet Investment P. Ltd., (2017) [165 ITD 27] (Delhi) (SB), it was held that no addition u/s 14A of the Act can be made in the hands of the assessee if assessee has not received any exempt income during the year under consideration. In the said decision it was held as under : “11.6 In the backdrop of these facts the Tribunal's order was upheld by the Hon'ble High Court and Hon'ble Supreme Co…

Harshini Epc Private Limited, Hyderabad vs. ITO Ward-2(3), Hyderabad

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

ITA 398/HYD/2022[2012-13]Status: DisposedITAT Hyderabad16 May 2023AY 2012-13

Bench: Shri Rama Kanta Panda & Shri Laliet Kumar

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Shri M. Naveen Kumar
Section 143(1)Section 143(2)Section 143(3)Section 14ASection 40Section 40(1)(ia)Section 43B

…provides for disallowance of the expenditure even where taxpayer in a particular year has not earned any exempt income. 14. We have heard the rival submissions and perused the material on record. By the decision of ACIT Vs. Vireet Investment P. Ltd., (2017) [165 ITD 27] (Delhi) (SB), it was held that no addition u/s 14A of the Act can be made in the hands of the assessee if assessee has not received any exempt income during the year under consideration. In the said decision it was held as under : “11.6 In the backdrop of these facts the Tribunal's order was upheld by the Hon'ble High Court and Hon'ble Supreme C…

M/S. Religare Enterprise Ltd., Noida vs. DCIT, New Delhi

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

ITA 5116/DEL/2016[2011-12]Status: DisposedITAT Delhi10 May 2023AY 2011-12
For Appellant: Shri Rohit Jain, AdvocateFor Respondent: Ms. Princy Singla, Sr. DR
Section 10(34)Section 14ASection 37

…y yielded exempt income during the year under consideration [refer ACB India Ltd. v. ACIT: 374 ITR 108 (Del), PCIT v. Caraf Builders & Constructions (P.) Ltd: 261 Taxman 47 (Del), REI Agro Ltd vs. DCIT: 144 ITD 141(Kol.), ACIT v. Vireet Investments Pvt. Ltd.: 165 ITD 27 (Del Trib.) (SB)], Religare Enterprises Ltd. v. DCIT: 1549/De1l2014 (Del Trib.)]; 4 ITA No.5116/Del./2016 (b) Disallowance under section 14A of the Act read with Rule 8D of the Rules should, in any case, be directed to be restricted to actual expenditure incurred and claimed as deduction; (c) Depreciation should not be considered while consider…

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

In the result, the appeal by the assessee is allowed for statistical purposes

ITA 2116/MUM/2017[2012-13]Status: DisposedITAT Mumbai04 May 2023AY 2012-13

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri Rishabh Shah a/wFor Respondent: Dr. Yogesh Kumar
Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144C(1)Section 144C(13)Section 144C(5)Section 14ASection 801ASection 80I

…ing the year should be considered for computation of disallowance under section 14A of the Act. We find that this claim of the assessee is supported by the decision of the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investment (P) Ltd. (2017) 165 ITD 27 (Delhi- Trib.), wherein it was held that only those investments are to be considered for computing average value of investments, which yield exempt income during the year. Accordingly, we direct the AO to only considered those investments for the purpose of computation of disallowance under section 14A read with Rule 8D(2)(iii) of the Rules, which…

Asst. Commissioner of Income Tax, Circle-10(1), Hyderabad vs. Vertex Projects LLP (Formerly M/S Vertex Projects Ltd), Hyderabad

In the result, the appeal of Revenue is partly allowed for statistical purposes

ITA 1187/HYD/2018[2014-15]Status: DisposedITAT Hyderabad28 Apr 2023AY 2014-15

Bench: Shri Rama Kanta Panda & Shri Laliet Kumarassessment Year: 2014-15 Acit,Circle-10(1) Vs. Vertex Projects Llp Room No.515, 5Th Floor, (Formerly M/S.Vertex A-Block, I.T.Towers, Projects Ltd.) A.C.Guards, #156-159, Paigah House Hyderabad. S.P.Road, Next To Pg College. Secunderabad-500 026. Pan : Aanfv0232C (Appellant) (Respondent) Assessee By: Shri Sriram Seshadri, Ca Revenue By: Shri Rajendra Kumar,Cit-Dr Date Of Hearing: 15.03.2023 Date Of Pronouncement: 28.04.2023 O R D E R Per Shri Laliet Kumar, J.M. This Is An Appeal Filed By The Revenue, Feeling Aggrieved By The Order Passed By The Learned Commissioner Of Income Tax (Appeals)-5, Dated 16.03.2018 For The Ay 2014-15, On The Following Grounds :

For Appellant: Shri Sriram Seshadri, CAFor Respondent: Shri Rajendra Kumar,CIT-DR
Section 115JSection 142(1)Section 143(2)Section 14ASection 14A(3)Section 47Section 56Section 56(2)(viia)Section 56(2)(viiia)

…ority cannot be more than the expenditure incurred by the assessee for earning the exempt income. For the above said purposes, we may fruitfully rely upon the decision of the Special Bench in the case of ACIT Vs. Vireet Investment P. Ltd., reported in (2017) [165 ITD 27] (Delhi) (SB), wherein it was held as under : “11.6 In the backdrop of these facts the Tribunal's order was upheld by the Hon'ble High Court and Hon'ble Supreme Court. The Hon'ble Supreme Court, inter alia, held that it is the purpose of the expenditure that is relevant in determining the applicability of section 57(iii) and that purpose must be m…

Welspun Corp Ltd, Mumbai vs. DCIT Cen Cir 22, Mumbai

In the result, the appeals filed by the revenue are dismissed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3890/MUM/2016[2008-09]Status: DisposedITAT Mumbai03 Apr 2023AY 2008-09

Bench: Shri Prashant Maharishi & Shri Pavan Kumar Gadale

Section 143(3)Section 14ASection 32(1)(iia)

…isdiction High Court in the case of HDFC Bank Ltd. Vs. DCIT (2016) 283 ITR 529 (Bom) and the disallowance u/s 14A r.w.r 8(D)(2)(iii) has to computed considering only investments which yield exempt income as held in the case of ACT Vs Vireet Investment Pvt Ltd 165 ITD 27 (Del) Special Bench held that only those investments which yield ITA.No,3890&4364/5063&5483/5165&5043/5166&5044/Mum/2016 M/s. Welspun Corp Ltd, Mumbai. exempted income are considered for computing the average value of investments in respect of computing the disallowance under rule 8D(2)(iii) of the IT Rules. The Ld.AR demonstrated the details/ch…

Semit Pharmaceuticals & Chemicals Pvt. Ltd., Mumbai vs. DCIT, CC- 34, Mumbai

In the result, all the appeals filed by the assessee are allowed

ITA 7526/MUM/2018[2008-09]Status: DisposedITAT Mumbai24 Mar 2023AY 2008-09

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 115JSection 143(3)Section 14ASection 153C

…computed u/s 14A of the Act for the purpose of computing book profit u/s 115JB of the Act, the Ld A.R submitted that the same is not permissible in view of the decision rendered by the Special bench of Tribunal, Delhi in the case of Vireet Investments P Ltd (165 ITD 27)(Delhi –SB). 9. We heard the parties and perused the record. There is no dispute with regard to the fact that the Assessments relating to AY 2006-07, 2008-09 and 2010-11 fall under the category of “unabated assessments”. There is also no dispute that the department did not unearth any incriminating material relating to the addition to be made u/s…

Semit Pharmaceuticals & Chemicals Pvt. Ltd., Mumbai vs. DCIT, CC- 34, Mumbai

In the result, all the appeals filed by the assessee are allowed

ITA 6997/MUM/2018[2006-07]Status: DisposedITAT Mumbai24 Mar 2023AY 2006-07

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 115JSection 143(3)Section 14ASection 153C

…computed u/s 14A of the Act for the purpose of computing book profit u/s 115JB of the Act, the Ld A.R submitted that the same is not permissible in view of the decision rendered by the Special bench of Tribunal, Delhi in the case of Vireet Investments P Ltd (165 ITD 27)(Delhi –SB). 9. We heard the parties and perused the record. There is no dispute with regard to the fact that the Assessments relating to AY 2006-07, 2008-09 and 2010-11 fall under the category of “unabated assessments”. There is also no dispute that the department did not unearth any incriminating material relating to the addition to be made u/s…

DCIT 1(1)(2), Mumbai vs. Forbes & Company Ltd, Mumbai

In the result, the appeal is allowed for statistical purpose

ITA 4493/MUM/2017[2013-14]Status: DisposedITAT Mumbai20 Mar 2023AY 2013-14

Bench: Shir Pavan Kumar Gadale & Shri Gagan Goyal

For Appellant: Mr.Ketan Ved & Mr.AbdulkadirFor Respondent: Mr, Ankush Kapoor, CIT &
Section 143(1)Section 143(2)Section 14ASection 250Section 35A

…elding exempt income only. We find the submissions are realistic and accordingly restore this disputed issue to the file of the A.O. to recompute the disallowance considering the ratio of special bench decision of ACIT vs Vireet Investment Pvt Ltd (ITAT Delhi)165 ITD 27 and allow the ground of appeal for statistical purpose. 26. In the result, the appeal is allowed for statistical purpose ITA No. 1682/Mum/2021, A.Y 2016-17 27.As the facts and circumstances in the grounds of appeal is identical to ITA No. 1816/Mum/2019 on the disputed issue (except variance in figures) and the decision rendered in above paragrap…

DCIT - 1 (1) (2), Mumbai vs. Forbes & Company Ltd., Mumbai

In the result, the appeal is allowed for statistical purpose

ITA 1002/MUM/2017[2010-11]Status: DisposedITAT Mumbai17 Mar 2023AY 2010-11

Bench: Shir Pavan Kumar Gadale & Shri Gagan Goyal

For Appellant: Mr.Ketan Ved & Mr.AbdulkadirFor Respondent: Mr, Ankush Kapoor, CIT &
Section 143(1)Section 143(2)Section 14ASection 250Section 35A

…elding exempt income only. We find the submissions are realistic and accordingly restore this disputed issue to the file of the A.O. to recompute the disallowance considering the ratio of special bench decision of ACIT vs Vireet Investment Pvt Ltd (ITAT Delhi)165 ITD 27 and allow the ground of appeal for statistical purpose. 26. In the result, the appeal is allowed for statistical purpose ITA No. 1682/Mum/2021, A.Y 2016-17 27.As the facts and circumstances in the grounds of appeal is identical to ITA No. 1816/Mum/2019 on the disputed issue (except variance in figures) and the decision rendered in above paragrap…

Cyquator Media Services Private Limited, Mumbai vs. DCIT, Range .6(2)(1), Mumbai

In the result, overall, the appeal of the Revenue in ITA No

ITA 4478/MUM/2017[2012-13]Status: DisposedITAT Mumbai06 Mar 2023AY 2012-13

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.4312/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2012-13) Dcit-6(2)(1) बिधम/ M/S. Cyquator Media R. No. 504, 5Th Floor, Services Pvt. Ltd. Vs. Aayakar Bhavan, M. K. 135, Continental Building, Road, Mumbai-400020. Dr. A. B. Road, Worli, Mumbai-400018. Cross Objection No. 302/Mum/2018 Arising Out Of I.T.A. No.4312/Mum/2017 (निर्धारण वर्ा / Assessment Years: 2012-13) Cyquator Media Services बिधम/ Dcit-6(2)(1) Pvt. Ltd. Aayakar Bhavan, Vs. 18Th Floor, A Wing, Mumbai-400020. Marathon Futurex, N. M. Joshi Marg, Lower Parel, Mumbai-400013. आयकर अपील सं/ I.T.A. No.4478/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2012-13) M/S. Cyquator Media बिधम/ Dcit-6(2)(1) R. No. 504, 5Th Floor, Services Pvt. Ltd. Vs. 135, Continental Building, Aayakar Bhavan, M. K. Dr. A. B. Road, Worli, Road, Mumbai-400020 Mumbai-400018. Dcit-6(2)(1) R. No. 504, 5Th Floor, Aayakar Bhavan, M. K. Road, Mumbai-400020. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaecp0069P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Jay Bhansali/Ms. Slachi Jain Revenue By: Shri H. N. Singh (Dr) & Mr. R. A. Dhyani (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 12/12/2022 घोषणा की तारीख /Date Of Pronouncement: 06/03/2023 C.O. 302/Mum/2018 A.Ys. 2012-13 Shri Cyquator Media Services Pvt. Ltd.

For Appellant: Shri Jay Bhansali/Ms. Slachi JainFor Respondent: Shri H. N. Singh (DR) & Mr. R
Section 143(3)Section 56Section 56(1)Section 68

…no disallowance is sustainable in the MAT computation under section C.O. 302/Mum/2018 A.Ys. 2012-13 Shri Cyquator Media Services Pvt. Ltd. 115JB of the Act as well. Also, the Special Bench of this Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. (165 ITD 27) has held that the computation mechanism provided under Rule 8D of the Rules cannot be applied for computing addition in terms of clause (f) of Explanation 1, for arriving at the book profit u/s 115JB of the Act. Hence, the impugned disallowance made by the AO while computing book profit u/s 115JB is held to be unsustainable in law. 60. For the a…

DCIT, Circle.6(2)(1), Mumbai vs. Cyquator Media Services Private Limited, Mumbai

In the result, overall, the appeal of the Revenue in ITA No

ITA 4312/MUM/2017[2012-13]Status: DisposedITAT Mumbai06 Mar 2023AY 2012-13

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.4312/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2012-13) Dcit-6(2)(1) बिधम/ M/S. Cyquator Media R. No. 504, 5Th Floor, Services Pvt. Ltd. Vs. Aayakar Bhavan, M. K. 135, Continental Building, Road, Mumbai-400020. Dr. A. B. Road, Worli, Mumbai-400018. Cross Objection No. 302/Mum/2018 Arising Out Of I.T.A. No.4312/Mum/2017 (निर्धारण वर्ा / Assessment Years: 2012-13) Cyquator Media Services बिधम/ Dcit-6(2)(1) Pvt. Ltd. Aayakar Bhavan, Vs. 18Th Floor, A Wing, Mumbai-400020. Marathon Futurex, N. M. Joshi Marg, Lower Parel, Mumbai-400013. आयकर अपील सं/ I.T.A. No.4478/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2012-13) M/S. Cyquator Media बिधम/ Dcit-6(2)(1) R. No. 504, 5Th Floor, Services Pvt. Ltd. Vs. 135, Continental Building, Aayakar Bhavan, M. K. Dr. A. B. Road, Worli, Road, Mumbai-400020 Mumbai-400018. Dcit-6(2)(1) R. No. 504, 5Th Floor, Aayakar Bhavan, M. K. Road, Mumbai-400020. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaecp0069P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Jay Bhansali/Ms. Slachi Jain Revenue By: Shri H. N. Singh (Dr) & Mr. R. A. Dhyani (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 12/12/2022 घोषणा की तारीख /Date Of Pronouncement: 06/03/2023 C.O. 302/Mum/2018 A.Ys. 2012-13 Shri Cyquator Media Services Pvt. Ltd.

For Appellant: Shri Jay Bhansali/Ms. Slachi JainFor Respondent: Shri H. N. Singh (DR) & Mr. R
Section 143(3)Section 56Section 56(1)Section 68

…no disallowance is sustainable in the MAT computation under section C.O. 302/Mum/2018 A.Ys. 2012-13 Shri Cyquator Media Services Pvt. Ltd. 115JB of the Act as well. Also, the Special Bench of this Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. (165 ITD 27) has held that the computation mechanism provided under Rule 8D of the Rules cannot be applied for computing addition in terms of clause (f) of Explanation 1, for arriving at the book profit u/s 115JB of the Act. Hence, the impugned disallowance made by the AO while computing book profit u/s 115JB is held to be unsustainable in law. 60. For the a…

Negus Distributors Pvt. Ltd., Kolkata vs. A.C.I.T., Circle - 8(2), Kolkata

In the result, the appeal of the assessee is allowed

ITA 777/KOL/2022[2017-2018]Status: DisposedITAT Kolkata28 Feb 2023AY 2017-2018

Bench: Shri Rajpal Yadav, Vice-(Kz) & Dr. Manish Boradi.T.A. No. 777/Kol/2022 Assessment Year: 2017-2018 Negus Distributors Pvt. Limited,..............Appellant 9, A.J.C. Bose Road, 6Th Floor, Kolkata-700017 [Pan: Aaacn8486A] -Vs.- Assistant Commissioner Of Income Tax,....Respondent Circle-8(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances By: Shri J.M. Thard, Advocate, Appeared On Behalf Of The Assessee Smt. Ranu Biswas, Addl. Cit, Sr. D.R., Appeared On Behalf Of The Revenue Date Of Concluding The Hearing : February 28, 2023 Date Of Pronouncing The Order : February 28, 2023 O R D E R

Section 115JSection 143(3)Section 14A

…dismissed by the Hon’ble Supreme Court. 6. Apart from this, there are other large number of decisions on this point including Special Bench decision of the ITAT rendered in the case of ACIT –vs.- Vireet Investment (P) Limited reported in 82 taxmann.com 415/ 165 ITD 27 (Delhi-Trib.). Therefore, respectfully following the decisions of Hon’ble Delhi High Court as well as of Hon’ble Karnataka High Court, we allow this ground of appeal of the assessee and direct the ld. Assessing Officer not to include the amount of disallowance made under 3 Assessment Year: 2017-2018 Negus Distributors Pvt. Limited section 14A in…

DCIT(Ltu) - 1, Mumbai vs. Acc Ltd., Mumbai

In the result, appeal filed by assessee is partly allowed and appeal filed by the revenue is dismissed

ITA 3178/MUM/2019[2011-12]Status: DisposedITAT Mumbai28 Feb 2023AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 14Section 143(3)Section 14A

…icer in connection with proportionate interest disallowance deleted by the Ld.CIT(A) is sustained. 13. So far as disallowance of other administrative expenditure is considered, it is observed that Hon'ble Delhi ITAT in the case of Vireet Investment Pvt. Ltd. [165 ITD 27] has held as under: “Section 14A of the Income-tax Act, 1961 read with rule 8D of the Income-tax Rules, 1962 - Expenditure incurred in relation to exempt income not includible in total income - Assessment year 2008-09 - Whether only those investments are to be considered for computing average value of investment which yielded exempt income during…

DCIT(Ltu) - 1, Mumbai vs. Acc Ltd., Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3177/MUM/2019[2010-11]Status: DisposedITAT Mumbai28 Feb 2023AY 2010-11

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 143(3)Section 147Section 148Section 151

…icer in connection with proportionate interest disallowance deleted by the Ld.CIT(A) is sustained. 13. So far as disallowance of other administrative expenditure is considered, it is observed that Hon'ble Delhi ITAT in the case of Vireet Investment Pvt. Ltd. [165 ITD 27] has held as under: “Section 14A of the Income-tax Act, 1961 read with rule 8D of the Income-tax Rules, 1962 - Expenditure incurred in relation to exempt income not includible in total income - Assessment year 2008-09 - Whether only those investments are to be considered for computing average value of investment which yielded exempt income during…