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 371,112 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.

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

In the result, appeal filed by assessee is partly allowed

ITA 3176/MUM/2019[2009-10]Status: DisposedITAT Mumbai28 Feb 2023AY 2009-10

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

Section 143(3)Section 147Section 148Section 151Section 55A

…cer 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…

Acc Ltd., Mumbai vs. Addl CIT(Ltu), Mumbai

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

ITA 3139/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…

Acc Ltd., Mumbai vs. Addl CIT(Ltu), Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3137/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…

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

In the result, appeal filed by assessee is partly allowed

ITA 3136/MUM/2019[2009-10]Status: DisposedITAT Mumbai28 Feb 2023AY 2009-10

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

Section 143(3)Section 147Section 148Section 151Section 55A

…cer 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…

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

In the result, appeal filed by assessee is partly allowed

ITA 3135/MUM/2019[2009-10]Status: DisposedITAT Mumbai28 Feb 2023AY 2009-10

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

Section 143(3)Section 147Section 148Section 151Section 55A

…cer 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 268/MUM/2019[2008-09]Status: DisposedITAT Mumbai28 Feb 2023AY 2008-09

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit -Ltu (Formerly Known As The Associated Cement 29Th Floor, Center-1 Companies Ltd.) World Trade Centre, Cuffe Parade Cement House, 121, M.K. Road Mumbai-400005 Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Dy. Cit - Ltu-1 V. M/S. Acc Limited 29Th Floor, Center-1 (Formerly Known As The Associated Cement Companies Ltd.) World Trade Centre, Cuffe Parade Cement House, 121, M.K. Road Mumbai-400005 Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 14A

…om.) 9. The Ld.AR has alternatively also argued that disallowance u/s.14A should be restricted on investment which have actually yielded exempt income for which reliance was placed on decision of Hon'ble Delhi ITAT in the case of Vireet Investment Pvt. Ltd. [165 ITD 27]. The Ld. DR has relied upon the assessment order and contended that order of Assessing Officer may be restored. 10. Considered the rival submissions and material placed on record. So far as proportionate interest disallowance u/s 14A is concerned, it is observed that Assessee has sufficient own funds in the form of share capital and reserves and…

Acc Ltd ( Formelry Known As the Associated Cement Companies Ltd), Mumbai vs. Addll CIT, (Ltu), Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 6638/MUM/2018[2008-09]Status: DisposedITAT Mumbai28 Feb 2023AY 2008-09

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit -Ltu (Formerly Known As The Associated Cement 29Th Floor, Center-1 Companies Ltd.) World Trade Centre, Cuffe Parade Cement House, 121, M.K. Road Mumbai-400005 Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Dy. Cit - Ltu-1 V. M/S. Acc Limited 29Th Floor, Center-1 (Formerly Known As The Associated Cement Companies Ltd.) World Trade Centre, Cuffe Parade Cement House, 121, M.K. Road Mumbai-400005 Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 14A

…om.) 9. The Ld.AR has alternatively also argued that disallowance u/s.14A should be restricted on investment which have actually yielded exempt income for which reliance was placed on decision of Hon'ble Delhi ITAT in the case of Vireet Investment Pvt. Ltd. [165 ITD 27]. The Ld. DR has relied upon the assessment order and contended that order of Assessing Officer may be restored. 10. Considered the rival submissions and material placed on record. So far as proportionate interest disallowance u/s 14A is concerned, it is observed that Assessee has sufficient own funds in the form of share capital and reserves and…

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

In the result, appeal filed by assessee is partly allowed

ITA 3246/MUM/2018[2012-13]Status: DisposedITAT Mumbai28 Feb 2023AY 2012-13

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Ltd., V. Dcit – Range – 1(1) Mumbai {Formerly Known As The Associated Cement Companies, Ltd.,} Cement House, 121 M.K. Road, Churchgate Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent) Dcit (Ltu)-1 V. M/S. Acc Ltd., 29Th Floor, Centre No.1 Cement House, 121 World Trade Centre, Cuffe Parade M.K. Road, Churchgate Mumbai - 400005 Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 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…

Acc Limited (Formerly Known As the Associated Cement Companies Ltd.), Mumbai vs. Addll. CIT, RG. 1(1), Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3203/MUM/2018[2012-13]Status: DisposedITAT Mumbai28 Feb 2023AY 2012-13

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Ltd., V. Dcit – Range – 1(1) Mumbai {Formerly Known As The Associated Cement Companies, Ltd.,} Cement House, 121 M.K. Road, Churchgate Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent) Dcit (Ltu)-1 V. M/S. Acc Ltd., 29Th Floor, Centre No.1 Cement House, 121 World Trade Centre, Cuffe Parade M.K. Road, Churchgate Mumbai - 400005 Mumbai - 400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 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…

Acc Limited (Formerly Known As the Associated Cement Companies Ltd.), Mumbai vs. ACIT - Ltu, Mumbai

ITA 417/MUM/2014[2006-07]Status: DisposedITAT Mumbai28 Feb 2023AY 2006-07

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit -Range 1(1) (Formerly Known As The Associated Cement Mumbai Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) M/S. Acc Limited V. Asst. Cit-Ltu (Formerly Known As The Associated Mumbai Cement Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Acit – Ltu V. M/S. Acc Limited 28Th Floor, Centre-1 (Formerly Known As The Associated Cement Companies Ltd.) World Trade Centre, Cuffe Parade Cement House, 121, M.K. Road Mumbai - 400005 Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 145ASection 251Section 44A

…u/s 14A cannot be made while computing book profit u/s 115JB of the Act. The Ld.AR has mainly relied upon following decisions: (i) CIT v. Bengal Finance & Investments Pvt. Ltd. [ITA No.337 of 2013 (Bombay HC)] (ii) ACIT v. Vireet Investment (P.) Ltd [(2017) 165 ITD 27 (Delhi Tribunal) (SB)] 87. The Ld. DR has relied upon finding given by AO and argued that order of Assessing Officer may be restored. 88. Similar issue was considered by us in Department Appeal in Ground No 20 in AY 2005-06 and held as under: 54 ITA NO.5655 & 5692/MUM/2011(A.Y: 2006-07) M/s. ACC Limited “129. Considered the rival submissions an…

Addl CIT RG 1(1), Mumbai vs. Acc Ltd, Mumbai

ITA 5692/MUM/2011[2006-07]Status: DisposedITAT Mumbai28 Feb 2023AY 2006-07

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit -Range 1(1) (Formerly Known As The Associated Cement Mumbai Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) M/S. Acc Limited V. Asst. Cit-Ltu (Formerly Known As The Associated Mumbai Cement Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Acit – Ltu V. M/S. Acc Limited 28Th Floor, Centre-1 (Formerly Known As The Associated Cement Companies Ltd.) World Trade Centre, Cuffe Parade Cement House, 121, M.K. Road Mumbai - 400005 Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 145ASection 251Section 44A

…u/s 14A cannot be made while computing book profit u/s 115JB of the Act. The Ld.AR has mainly relied upon following decisions: (i) CIT v. Bengal Finance & Investments Pvt. Ltd. [ITA No.337 of 2013 (Bombay HC)] (ii) ACIT v. Vireet Investment (P.) Ltd [(2017) 165 ITD 27 (Delhi Tribunal) (SB)] 87. The Ld. DR has relied upon finding given by AO and argued that order of Assessing Officer may be restored. 88. Similar issue was considered by us in Department Appeal in Ground No 20 in AY 2005-06 and held as under: 54 ITA NO.5655 & 5692/MUM/2011(A.Y: 2006-07) M/s. ACC Limited “129. Considered the rival submissions an…

Acc Ltd ( Formerly Known As the Associated Cement Companies Ltd), Mumbai vs. Addl CIT RG 1(1), Mumbai

ITA 5655/MUM/2011[2006-07]Status: DisposedITAT Mumbai28 Feb 2023AY 2006-07

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit -Range 1(1) (Formerly Known As The Associated Cement Mumbai Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) M/S. Acc Limited V. Asst. Cit-Ltu (Formerly Known As The Associated Mumbai Cement Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Acit – Ltu V. M/S. Acc Limited 28Th Floor, Centre-1 (Formerly Known As The Associated Cement Companies Ltd.) World Trade Centre, Cuffe Parade Cement House, 121, M.K. Road Mumbai - 400005 Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 145ASection 251Section 44A

…u/s 14A cannot be made while computing book profit u/s 115JB of the Act. The Ld.AR has mainly relied upon following decisions: (i) CIT v. Bengal Finance & Investments Pvt. Ltd. [ITA No.337 of 2013 (Bombay HC)] (ii) ACIT v. Vireet Investment (P.) Ltd [(2017) 165 ITD 27 (Delhi Tribunal) (SB)] 87. The Ld. DR has relied upon finding given by AO and argued that order of Assessing Officer may be restored. 88. Similar issue was considered by us in Department Appeal in Ground No 20 in AY 2005-06 and held as under: 54 ITA NO.5655 & 5692/MUM/2011(A.Y: 2006-07) M/s. ACC Limited “129. Considered the rival submissions an…

Addl CIT RG 1(1), Mumbai vs. Acc Ltd, Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3786/MUM/2009[2005-06]Status: DisposedITAT Mumbai28 Feb 2023AY 2005-06

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit – Range-1(1) (Formerly Known As The Associated Mumbai Cement Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Dy. Cit - 1(1) V. M/S. Acc Limited Room No. 79, Aayakar Bhavan (Formerly Known As The Associated Cement Companies Ltd.) M.K. Road, Mumbai – 400020 Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 14ASection 14A(1)

…u/s 14A cannot be made while computing book profit u/s 115JB of the Act. The Ld.AR has mainly relied upon following decisions: (i) CIT v. Bengal Finance & Investments Pvt. Ltd. [ITA No.337 of 2013 (Bombay HC)] (ii) ACIT v. Vireet Investment (P.) Ltd [(2017) 165 ITD 27 (Delhi Tribunal) (SB)] 134. On the other hand, Ld. DR has relied upon finding given by Assessing Officer and argued that order of Assessing Officer may be restored. 135. Considered the rival submissions and material placed on record. The Assessing Officer has made disallowance u/s 14A while computing income as per normal provisions of the Act as…

Acc Ltd (Formerly Known As the Associated Cement Companies Ltd), Mumbai vs. Addl CIT RG 1(1), Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3490/MUM/2009[2005-06]Status: DisposedITAT Mumbai28 Feb 2023AY 2005-06

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit – Range-1(1) (Formerly Known As The Associated Mumbai Cement Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Dy. Cit - 1(1) V. M/S. Acc Limited Room No. 79, Aayakar Bhavan (Formerly Known As The Associated Cement Companies Ltd.) M.K. Road, Mumbai – 400020 Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 14ASection 14A(1)

…u/s 14A cannot be made while computing book profit u/s 115JB of the Act. The Ld.AR has mainly relied upon following decisions: (i) CIT v. Bengal Finance & Investments Pvt. Ltd. [ITA No.337 of 2013 (Bombay HC)] (ii) ACIT v. Vireet Investment (P.) Ltd [(2017) 165 ITD 27 (Delhi Tribunal) (SB)] 134. On the other hand, Ld. DR has relied upon finding given by Assessing Officer and argued that order of Assessing Officer may be restored. 135. Considered the rival submissions and material placed on record. The Assessing Officer has made disallowance u/s 14A while computing income as per normal provisions of the Act as…

Tata Steel Limited, Mumbai vs. The Deputy Commissioner of Income Tax -2(3)(1), Mumbai

In the result, appeal of the assessee for AY 2017-18 is partly allowed

ITA 2374/MUM/2022[2017-18]Status: DisposedITAT Mumbai20 Feb 2023AY 2017-18

Bench: Shri Vikas Awasthy& Shri M Balaganeshvkvkla-1340@Eaqcbz@2021¼Fu-Oa- 2016&17½ Vkvkla-2374@Eaqcbz@2022 ¼Fu-Oa- 2017&18½ Tata Steel Limited Bombay House, 24, Homi Mody Street Fort Mumbai-400 001 ..... Vihykfkhz/Appellant Pan No. Aaact2803M Cuke Vs. Additional/Joint/Deputy/Assistant Commissioner Of Income Tax/Income-Tax Officer, National E-Assessment Centre, ..... Izfroknh/Respondent Delhi

For Appellant: Shri Nishant Thakkar &For Respondent: Shri Biswanath Das CIT DR
Section 115JSection 143(3)Section 14ASection 14A(2)Section 263Section 36(1)(iii)Section 80GSection 90

…d the findings of AO in including disallowance u/s 14A of the Act for the purpose of computation of Book Profits u/s 115JB of the Act. The learned AR pointed that the issue is squarely covered by the decision of Special Bench in the case of Vireet Investments 165 ITD 27 P a g e | 5 ITA NO. 2374/MUM/2022(A.Y.2017-18) TATA STEEL LTD (SB) and the decision of Hon’ble jurisdictional High Court in the case of JSW Energy Limited 379 ITR 36. 4.7 In ground no. 10 of appeal, the learned AR submits, that admittedly the assessee had not claimed deduction of interest on PNCD in computation of Book Profits u/s 115JB of the A…

ACIT, Central Circle- 27, New Delhi vs. A.R. Leasing Pvt. Ltd., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 9239/DEL/2019[2015-16]Status: DisposedITAT Delhi16 Feb 2023AY 2015-16

Bench: Sh. Anil Chaturvedi & Sh. Narender Kumar Choudharyacit Vs. A. R. Leasing Pvt. Ltd. Central Circle – 27, 305, 3Rd Floor, Bhanot New Delhi Corner, Pampost Enclave, Greater Kailash-1, New Delhi-110 048 Pan No. Aaaca 0423 A (Appellant) (Respondent) Assessee By Shri M. P. Rastogi, Adv. & Shri Rajeev Kumar, C.A. Revenue By Shri Kanav Bali, Sr. D.R. Date Of Hearing: 06.01.2023 Date Of Pronouncement: 16.02.2023 Order Per Anil Chaturvedi, Am: This Appeal Filed By The Revenue Is Directed Against The Order Dated 24.09.2019 Passed By The Commissioner Of Income Tax (Appeals)-31, New Delhi Relating To Assessment Year 2015-16. 2. Brief Facts Of The Case As Culled Out From The Material On Record Are As Under:-

Section 115JSection 143(3)Section 14ASection 68

…nd for the reasons detailed in his order had in principle upheld the disallowance u/s 14A of the Act but however, on the merits of addition, he by relying on the Special Bench decision of the Tribunal in the case of ACIT vs. Vireet Investment Pvt. Ltd. (2017) 58 ITR (Trib) 313 (Del) (SB) held that only investment made in companies which has resulted into exempt income should be considered for the purpose of disallowance u/s 14A r.w.r 8D of the Rules. With respect to the disallowance of administrative expenses at 0.5% of the average value of investments, he has given a finding that AO had disallowed the sum of Rs.…

DCIT 14(3)(1), Mumbai vs. Wockhardt Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 2738/MUM/2015[2009-10]Status: DisposedITAT Mumbai10 Feb 2023AY 2009-10

Bench: Shri Vikas Awasthy & Shri Om Prakash Kantvk-Vk-La- 2633@Eaqcbz@2015 ¼Fu-Oa- 2009&10½ M/S Wockhardt Ltd. Wockhardt Towers, Bandra Kurla Complex, Bandra (E) Mumbai-400 051 ..... Vihykfkhz/Appellant Pan No. Aaacw2472M Cuke Vs. Deputy Commissioner Of Income Tax Range 10 (1), Aayakar Bhavan, ..... Izfroknh/Respondent Mumbai-400 020 Vk-Vk-La- 2738@Eaqcbz@2015 ¼Fu-Oa- 2009&10½ Deputy Commissioner Of Income Tax Range 10 (1), Aayakar Bhavan, ..... Vihykfkhz/Appellant Mumbai-400 020 Cuke Vs. M/S Wockhardt Ltd. Wockhardt Towers, Bandra Kurla Complex, Bandra (E) Mumbai-400 051 ..... Izfroknh/Respondent Pan No. Aaacw2472M

For Appellant: Shri Ronak Doshi &Ms Jinal jain dj foHkkx }kjk@For Respondent: Shri Rakesh Ranjan, CIT DR &
Section 115JSection 143(3)Section 14ASection 153Section 35Section 37(1)Section 80I

…u/s 115 JB of the Act. In support of his submission, the learned AR placed reliance on following decisions: 1) CIT Vs. Bengal Finance and Investment Pvt. Ltd in ITA No.337 of 2013 decided by Hon’ble Bombay High Court; 2) ACIT Vs. Vireet investment Pvt. Ltd. 165 ITD 27 (Special Bench) (Delhi) 10.1 The Special Bench of Tribunal in the case of Vireet Investment Pvt. Ltd (supra) has held that computation u/s 115JB(2), Explanation I (f) has to be made without resorting to computation of disallowance made u/s 14A r.w.r. 8D. The view taken by Special Bench has been approved by the Hon’ble Karnataka High Court in the…

DCIT, C-11(1), New Delhi vs. Hero Motocorp Ltd., New Delhi

Appeal of the Revenue is dismissed

ITA 1982/DEL/2019[2014-15]Status: DisposedITAT Delhi03 Feb 2023AY 2014-15

Bench: Shri Narendra Kumar Billaiya & Shri Kul Bharat

Section 14ASection 2(22)(e)Section 40Section 40a

…led by the Department dismissed in SLP(C) No. 25130/2019 reported in 268 Taxman 317 - REI Agro Ltd vs. DCIT: 144 ITD 141 (Kol. Trib.) - Department appeal dismissed in CIT v. REI Agro Ltd.: I.T.A.TNo.220 of 2013 (Cal. HC) - ACIT v. Vireet Investment (P.) Ltd.: 165 ITD 27 (Del) (SB) - Religare Enterprises Ltd. v. DCIT: 1549/Del/2014 (Del Trib.) - Religare Securities Ltd vs. ACIT: ITA 2282/Del/2013 - Religare Securities Ltd vs. DCIT: ITA 230/Del/2017 Amendment in section 14A vide Finance Act, 2022, w.e.f., 01.04.2022 prospective in nature 38 For sake of completeness, it is pointed out that vide Finance Act, 2022,…

ITO-7(3)(1), Mumbai vs. M/S. Pdl Realty Pvt. Ltd., Mumbai

In the result, appeal filed by the Revenue is treated as partly allowed

ITA 3055/MUM/2022[2014-15]Status: DisposedITAT Mumbai02 Feb 2023AY 2014-15

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

Section 10Section 115JSection 14A

…ble to be added. However, the same has to be computed independently from the annual accounts of the assessee without having resort to provisions of section 14A of the Act as held by Special Bench of Delhi of ITAT in the case of Vireet Investment Pvt. Limited (165 ITD 27). Accordingly, we modify the order passed by the learned CIT(A) on this issue and direct the Assessing Officer to compute the disallowance under clause (f) of Explanation (1) to section 115JB of the Act on the basis of annual accounts of the assessee. 9. In the result, appeal filed by the Revenue is treated as partly allowed. Pronounced in the o…

DCIT, New Delhi vs. M/S. Jindal Saw Ltd., New Delhi

In the result, the appeal is dismissed

ITA 3602/DEL/2015[2010-11]Status: DisposedITAT Delhi31 Jan 2023AY 2010-11

Bench: Sh. G. S. Pannu, Hon’Ble & Sh. Saktijit Dey

For Appellant: Sh. Rohit Jain, Adv. &For Respondent: Sh. Sanjay Kumar, Sr. DR
Section 14A

…the view, the issue is no more res integra in view of the decision of the Hon’ble Delhi High Court in PCIT Vs. Bhushan Steel Ltd.: ITA No. 593/2015 and the decision of the Hon’ble Special bench of the Tribunal in case of ACIT Vs. Vireet Investments (P.) Ltd.: 165 ITD 27, wherein, it has been held that while computing book profit under section 115JB of the Act, no adjustment can be made with reference to Section 14A read with Rule 8D. In this view of the matter, we do not find any infirmity in the decision of learned Commissioner (Appeals) on the issue. Accordingly, ground raised is dismissed. In the result, appea…