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 371,127 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, New Delhi vs. M/S. Jindal Saw Ltd., New Delhi

In the result, the appeal is dismissed

ITA 3601/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…

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

In the result, the appeal is dismissed

ITA 2915/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…

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

In the result, the appeal is dismissed

ITA 2914/DEL/2015[2009-10]Status: DisposedITAT Delhi31 Jan 2023AY 2009-10

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…

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

In the result, the appeal is dismissed

ITA 2714/DEL/2015[2009-10]Status: DisposedITAT Delhi31 Jan 2023AY 2009-10

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…

Asst CIT RG 10(3)(2), Thane vs. Pantaloon Industries Ltd, Mumbai

ITA 2566/MUM/2015[2011-12]Status: DisposedITAT Mumbai23 Jan 2023AY 2011-12

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Vipul Joshi, A.R. &For Respondent: Shri Chetan M. Kacha, Sr. A.R
Section 14ASection 2(24)(x)

…nder section 14A and on account of provision of doubtful debts respectively which is under challenge before the Tribunal. 23. By now it is settled principle of law as per order passed by the Special Bench of the Tribunal in case of Vireet Investment cited as 165 ITD 27 that disallowance if any made by the AO under section 14A read with rule 8D while computing the book profit under section 115JB of the Act is not sustainable in the eyes of law, hence ordered to be deleted. So ground No.3 raised by the assessee is hereby allowed. 24. In view of what has been discussed above, appeal filed by the Revenue bearing IT…

Pil Industries, Mumbai vs. DCIT RG 8(2), Mumbai

ITA 1825/MUM/2015[2010-11]Status: DisposedITAT Mumbai23 Jan 2023AY 2010-11

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Vipul Joshi, A.R. &For Respondent: Shri Chetan M. Kacha, Sr. A.R
Section 14ASection 2(24)(x)

…nder section 14A and on account of provision of doubtful debts respectively which is under challenge before the Tribunal. 23. By now it is settled principle of law as per order passed by the Special Bench of the Tribunal in case of Vireet Investment cited as 165 ITD 27 that disallowance if any made by the AO under section 14A read with rule 8D while computing the book profit under section 115JB of the Act is not sustainable in the eyes of law, hence ordered to be deleted. So ground No.3 raised by the assessee is hereby allowed. 24. In view of what has been discussed above, appeal filed by the Revenue bearing IT…

Asst CIT 10(3)(2), Mumbai vs. Pantaloon Industries Ltd, Mumbai

ITA 1434/MUM/2015[2010-11]Status: DisposedITAT Mumbai23 Jan 2023AY 2010-11

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Vipul Joshi, A.R. &For Respondent: Shri Chetan M. Kacha, Sr. A.R
Section 14ASection 2(24)(x)

…nder section 14A and on account of provision of doubtful debts respectively which is under challenge before the Tribunal. 23. By now it is settled principle of law as per order passed by the Special Bench of the Tribunal in case of Vireet Investment cited as 165 ITD 27 that disallowance if any made by the AO under section 14A read with rule 8D while computing the book profit under section 115JB of the Act is not sustainable in the eyes of law, hence ordered to be deleted. So ground No.3 raised by the assessee is hereby allowed. 24. In view of what has been discussed above, appeal filed by the Revenue bearing IT…

Excel Industries Limited, Mumbai vs. Deputy Commissioner of Income Tax - Central Circle 6(3), Mumbai

The appeal is allowed

ITA 915/MUM/2018[2014-15]Status: DisposedITAT Mumbai09 Jan 2023AY 2014-15

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Kirit Kamdar, ARFor Respondent: Shri Suresh Periasamy, DR
Section 115JSection 14A

…sallowance cannot be made. Further, with respect to the book profit, further increased by the disallowance under Section 115JB of the Act. It was submitted that issue is squarely covered in favour of the assessee by the decision of Vireet Investment Pvt. Ltd. 165 ITD 27. 023. The learned Departmental Representative vehemently supported the order of the lower authorities. 024. We have carefully considered the rival contentions and perused the orders of the lower authorities. The Excel Industries Ltd. A.Ys. 10-11 to 15-16 learned CIT (A) after considering the explanation of the assessee rejected that no interest o…

Excel Industries Limited, Mumbai vs. DCIT - CC- 6(3), Mumbai

The appeal is allowed

ITA 6444/MUM/2018[2015-16]Status: DisposedITAT Mumbai09 Jan 2023AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Kirit Kamdar, ARFor Respondent: Shri Suresh Periasamy, DR
Section 115JSection 14A

…sallowance cannot be made. Further, with respect to the book profit, further increased by the disallowance under Section 115JB of the Act. It was submitted that issue is squarely covered in favour of the assessee by the decision of Vireet Investment Pvt. Ltd. 165 ITD 27. 023. The learned Departmental Representative vehemently supported the order of the lower authorities. 024. We have carefully considered the rival contentions and perused the orders of the lower authorities. The Excel Industries Ltd. A.Ys. 10-11 to 15-16 learned CIT (A) after considering the explanation of the assessee rejected that no interest o…

Deputy Commissioner of Income Central Circle-6(3), Mumbai vs. M/S.Excel Industries Limited, Mumbai

The appeal is allowed

ITA 5432/MUM/2017[2011-12]Status: DisposedITAT Mumbai09 Jan 2023AY 2011-12

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Kirit Kamdar, ARFor Respondent: Shri Suresh Periasamy, DR
Section 115JSection 14A

…sallowance cannot be made. Further, with respect to the book profit, further increased by the disallowance under Section 115JB of the Act. It was submitted that issue is squarely covered in favour of the assessee by the decision of Vireet Investment Pvt. Ltd. 165 ITD 27. 023. The learned Departmental Representative vehemently supported the order of the lower authorities. 024. We have carefully considered the rival contentions and perused the orders of the lower authorities. The Excel Industries Ltd. A.Ys. 10-11 to 15-16 learned CIT (A) after considering the explanation of the assessee rejected that no interest o…

Deputy Commissioner of Income Central Circle-6(3), Mumbai vs. M/S.Excel Industries Limited, Mumbai

The appeal is allowed

ITA 5431/MUM/2017[2010-11]Status: DisposedITAT Mumbai09 Jan 2023AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Kirit Kamdar, ARFor Respondent: Shri Suresh Periasamy, DR
Section 115JSection 14A

…sallowance cannot be made. Further, with respect to the book profit, further increased by the disallowance under Section 115JB of the Act. It was submitted that issue is squarely covered in favour of the assessee by the decision of Vireet Investment Pvt. Ltd. 165 ITD 27. 023. The learned Departmental Representative vehemently supported the order of the lower authorities. 024. We have carefully considered the rival contentions and perused the orders of the lower authorities. The Excel Industries Ltd. A.Ys. 10-11 to 15-16 learned CIT (A) after considering the explanation of the assessee rejected that no interest o…

Dy.CIT Cent. Cir-8(1), Mumbai vs. M/S Raymond Apparel Ltd, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 2333/MUM/2021[2011-12]Status: DisposedITAT Mumbai30 Dec 2022AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Bledcit – Central Circle – 8(1) V. M/S. Raymond Apparel Limited Room No. 656, 6Th Floor New Glass Building Aayakar Bhavan, M.K. Road Pokhran Road No. 1 Mumbai - 400020 Jekegram, Thane – 400606 Pan: Aakcs3399H (Appellant) (Respondent) Assessee By : Shri Madhur Agrawal Department By : Shri T. Shankar

For Appellant: Shri Madhur AgrawalFor Respondent: Shri T. Shankar
Section 132Section 143(2)Section 14ASection 153C

…is bench is consistently holding that, the disallowance u/s. 14A of the Act if any shall be restricted to the exempt income earned by the assessee. We find that the Delhi Special Bench of the Tribunal in the case of ACIT v. Vireet Investments Private Limited [165 ITD 27] held that the computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s. 14A r.w. Rule 8D of the I.T Rules, 1962. Thus respectfully following the said decision, we restore the grounds raised by the revenue in respect of disallowance u/s. 14A while computing the book pr…

M/S. Srinivas Institute of Medical Science and Research Centre, Mangalroe vs. The Principal Commissioner of Income Tax (Central), Bengaluru

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

ITA 533/BANG/2022[N/A]Status: DisposedITAT Bangalore30 Dec 2022

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year: N.A.

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Dr. G. Manoj Kumar, D.R
Section 10Section 11Section 12ASection 269S

…ITA No.533/Bang/2022 M/s. Srinivas Institute of Medical Science and Research Centre, Mangalore IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER Assessment Year: N.A. M/s. Srinivas Institute of Medical Science and Research Centre, 13-2-115, Hotel Srinivas Building Vs. The Principal CIT (Central) GHS Road Bengaluru Mangalore 575 001 PAN NO : AAJTS9362G APPELLANT RESPONDENT Appellant by : Shri V. Srinivasan, A.R. Respondent by : Dr. G. Manoj Kumar, D.R. Date of Hearing : 26.10.2022 Date of Pronouncement : 30.12.20…

Gujarat Fluorochemicals Limited., Vadodara vs. The DCIT, Circle-1(1)(1), Vadodara

The appeal of the assessee is partly allowed

ITA 751/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad28 Dec 2022AY 2014-15

Bench: Mrs. Annapurna Gupta & Shri T.R. Senthil Kumar"नधा"रणवष"/Assessment Year: 2014-15 Gujarat Fluorochemicals Ltd., Vs. Dcit, 2Nd Floor, Abs Tower, Old Circle 1(1)(1), Padra Road, Baroda-390007 Baroda Pan : Aaacg 6725 H अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri S.N. Soparkar, Sr. Advocate & Shri Parin Shah, Ar Revenue By : Shri Samir Tekriwal, Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 11.10.2022 घोषणा क" तार"ख /Date Of Pronouncement: 28.12.2022 आदेश/O R D E R Per Annapurna Gupta:

For Appellant: Shri S.N. Soparkar, Sr. Advocate &For Respondent: Shri Samir Tekriwal, CIT-DR
Section 115Section 115JSection 14ASection 14A(2)Section 8D(2)(i)

…ase of CIT Vs. Bengal Finance & Investment P. Ltd. in Tax Appeal No.337 of 2013. He placed on record copies both these decisions. Apart from the above, he placed upon reliance Special Bench decision of the ITAT in the case of CIT Vs. Vireet Investment P. Ltd. 165 ITD 27. On the other hand, ld. CIT-DR relied upon the order of DRP. 18. We have duly considered rival contentions and gone through the record carefully. We find that ld. DRP has relied upon the order of the ITAT, Mumbai in the case of DCIT Vs. Viraj Profiles Ltd., (2016) 46 ITR (Trib) 0626 (Mum) and held that addition required tobe made in the book prof…

Deputy Commissioner of Income Tax, Central Circle-8(1), Mumbai vs. Raymond Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 4082/MUM/2018[2012-13]Status: DisposedITAT Mumbai28 Dec 2022AY 2012-13

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Madhur Agrawal &For Respondent: Shri T. Shankar
Section 143(3)Section 14ASection 23Section 40A(2)(b)

…e of determining average value of investments, the learned AR drew the attention of Hon'ble Delhi High Court decision in case of ACB India Ltd vs. ACIT [374 ITR108 (Delhi)] and Special Bench of Delhi in the case of ACIT vs. Vireet Investments Private Limited [165 ITD 27 (Del(SB)] wherein it was held that for the purpose of determining value of investments for the purpose of 14A disallowance, only those investments be considered which has actually yielded exempt income during the year under consideration. As per the submitted chart, it is apparent that the assessee had average value of investments of ₹.34,342.70 l…

Deputy Commissioner of Income Tax, Central Circle-8(1), Mumbai vs. Raymond Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 4073/MUM/2018[2011-12]Status: DisposedITAT Mumbai28 Dec 2022AY 2011-12

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Madhur Agrawal &For Respondent: Shri T. Shankar
Section 143(3)Section 14ASection 23Section 40A(2)(b)

…e of determining average value of investments, the learned AR drew the attention of Hon'ble Delhi High Court decision in case of ACB India Ltd vs. ACIT [374 ITR108 (Delhi)] and Special Bench of Delhi in the case of ACIT vs. Vireet Investments Private Limited [165 ITD 27 (Del(SB)] wherein it was held that for the purpose of determining value of investments for the purpose of 14A disallowance, only those investments be considered which has actually yielded exempt income during the year under consideration. As per the submitted chart, it is apparent that the assessee had average value of investments of ₹.34,342.70 l…

Deputy Commissioner of Income Tax, Central Circle-8(1), Mumbai vs. Raymond Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 4072/MUM/2018[2010-11]Status: DisposedITAT Mumbai28 Dec 2022AY 2010-11

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Madhur Agrawal &For Respondent: Shri T. Shankar
Section 143(3)Section 14ASection 23Section 40A(2)(b)

…e of determining average value of investments, the learned AR drew the attention of Hon'ble Delhi High Court decision in case of ACB India Ltd vs. ACIT [374 ITR108 (Delhi)] and Special Bench of Delhi in the case of ACIT vs. Vireet Investments Private Limited [165 ITD 27 (Del(SB)] wherein it was held that for the purpose of determining value of investments for the purpose of 14A disallowance, only those investments be considered which has actually yielded exempt income during the year under consideration. As per the submitted chart, it is apparent that the assessee had average value of investments of ₹.34,342.70 l…

Deputy Commissioner of Income Tax, Central Circle-8(1), Mumbai vs. Raymond Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 202/MUM/2018[2009-10]Status: DisposedITAT Mumbai28 Dec 2022AY 2009-10

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Madhur Agrawal &For Respondent: Shri T. Shankar
Section 143(3)Section 14ASection 23Section 40A(2)(b)

…e of determining average value of investments, the learned AR drew the attention of Hon'ble Delhi High Court decision in case of ACB India Ltd vs. ACIT [374 ITR108 (Delhi)] and Special Bench of Delhi in the case of ACIT vs. Vireet Investments Private Limited [165 ITD 27 (Del(SB)] wherein it was held that for the purpose of determining value of investments for the purpose of 14A disallowance, only those investments be considered which has actually yielded exempt income during the year under consideration. As per the submitted chart, it is apparent that the assessee had average value of investments of ₹.34,342.70 l…

ACIT -3(1)(2), Mumbai vs. Hikal Ltd., Mumbai

In the result, the In the result, the appeal of Revenue for assessment year 2010

ITA 2320/MUM/2016[2010-11]Status: DisposedITAT Mumbai28 Dec 2022AY 2010-11

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2010-11 & Assessment Year: 2011-12 Acit-3(1)(2), Hikal Ltd., Room No. 607, 6Th Floor, 717/718, Maker Chambers V, Aayakar Bhavan, Vs. Nariman Point, Mumbai-400020. Mumbai-400021. Pan No. Aaach 0383 A Appellant Respondent : Revenue By Mr. Sanjay Vishwas Rao Deshmukh, Cit-Dr/ Mr. R.N. D’Souza, Dr Assessee By : Mr. Sanjay Parikh, Ar : Date Of Hearing 02/11/2022 Date Of Pronouncement : 28/12/2022

For Appellant: Mr. Sanjay Parikh, ARFor Respondent: Revenue by Mr. Sanjay Vishwas Rao
Section 14A

…to the file of the Assessing Officer following the finding of Special Bench of Tribunal Assessing Officer following the finding of Special Bench of Tribunal Assessing Officer following the finding of Special Bench of Tribunal in Vireet Investments reported in 165 ITD 27. The relevant finding in Vireet Investments reported in 165 ITD 27. The relevant finding in Vireet Investments reported in 165 ITD 27. The relevant finding of the Tribunal (supra) is reproduced as under: supra) is reproduced as under: “8. The ground No.11 raised by the assessee is challenging The ground No.11 raised by the assessee is challenging…

DCIT, Circle-20(1), New Delhi vs. Priapus Developers Private Limited, New Delhi

ITA 700/DEL/2020[2016-17]Status: DisposedITAT Delhi27 Dec 2022AY 2016-17

Bench: Shri Challa Nagendra Prasad & Shri Pradip Kumar Kedia

For Appellant: Shri Rajeev Khandelwal, CAFor Respondent: Shri B.S. Anand, Sr.DR
Section 115JSection 143(3)Section 14ASection 36(1)(iii)

…ction 14A under normal provisions, the CIT(A) also reversed the additions / I.T.A. No.700/Del/2020 5 book profit under Section 115JB amounting to Rs.26,99,57,241/- following the ratio of the Special Bench in the case of ACIT vs. Vireet Investment Pvt. Ltd., 165 ITD 27 (SB). The relevant paragraph dealing with the issue is reproduced herein: “4.4 In ground no.6 & 7 the appellant has contested the disallowance under section 14A made at Rs 261,99,57,241/- under the provisions of MAT as against suo moto disallowance made by it at Rs 38,70,249/- The AO in the assessment order has computed the disallowance of expens…