ACIT v. Vireet Investment Pvt. Ltd.

Shivnarayan Nemani Shares & Stock Brokers P. Ltd., Mumbai vs. D.C.I.T. Circle 4(2), Mumbai

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

Bench: Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm (Hearing Through Video Conferencing Mode) आयकर अपील सं/ I.T.A. No. 2522/Mum/2012 (निर्धारण वर्ा / Assessment Year: 2008-09) M/S. Shivnarayan Nemani बिधम/ Dcit, Circle-4(2) Shares & Stock Brokers P. Mumbai Vs. Ltd. 9/43, Bhupen Chambers, 2Nd Floor, Dalal Street Mumbai- 400023. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadcs3296C (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Mayank Chauhan (Ar) Revenue By: Shri Rohit Kumar (Dr) सुनवाई की तारीख / Date Of Hearing: 07/09/2021 घोषणा की तारीख /Date Of Pronouncement: 08/10/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 20.01.2012 Passed By The Commissioner Of Income Tax (Appeals)-09, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2008-09. 2. The Assessee Has Raised The Following Grounds: - “1(A). On The Facts & In The Circumstances Of The Case & In Law, The Learned Commissioner Of Income-Tax(Appeals) Erred In Confirming The Disallowance Of Additional Amount Of Rs.2,98,258/- Under The Provisions Of Section 14A R.W.R. 8D Of The Income Tax Rules

…e exempt income is liable to be considered while calculating the expenditure to earn the exempt income in view of the provisions u/s 14A r.w. Rule 8D(iii). In this regard, we also placed reliance upon the decision of ACIT Vs. Vireet Investments P. Ltd. (2017) 165 ITD 27/82 taxmann.com 415 (Delhi- Trib). Accordingly, we decide this issue in favour of the assessee against the revenue. ISSUE No. 2 5. Under this issue the assessee has challenged the disallowance of lease line payment to stock exchanges. The AO took the view that the said amount is nature of technical services in view of the provisions u/s 194J and d…

Royal Twinkle Star Club P. Ltd, Mumbai vs. ACIT Cen Cir 14, Mumbai

In the result, appeal is partly allowed as indicated above

Bench: Shri Saktijit Dey & Shri Rajesh Kumarassessment Year: 2011-12 Royal Twinkle Star Club Pvt. Ltd., The Acit, 317/318, Parvati Industrial Central Circle-2(4), Estate, Sun Mill Compound, (Erstwhile Central Circle – 14), Lower Parel (W), Vs. Pratishtha Bhavan, 8Th Floor, Mumbai - 400013 Mumbai Pan: Aaecr0618L (Appellant) (Respondent) Assessee By : Shri Hiro Rai (Ar) Revenue By : Shri Bharat Andhle (Dr) Date Of Hearing : 15/09/2021 Date Of Pronouncement: 29/09/2021

…income during the year and secondly, under no circumstances the disallowance can exceed the exempt income earned during the year. In support of such contention, learned counsel relied upon the following decisions: 1. ACIT vs. Vireet Investment (P) Ltd. (2017) 165 ITD 27 ITAT (Delhi Tribunal Special Bench) 2. ACB India Ltd. vs. CIT (2015) 374 ITR 108 (Delhi) 3. PCIT VS. Ajit Ramakant Phatarpekar [2021 429 ITR 319 (Bombay) 5. Learned Departmental Representative strongly relied upon the observations of the AO and learned Commissioner (Appeals). 6. We have considered rival submissions in the light of decision relied…

Edelcap Securities Ltd, Mumbai vs. ACIT, Circle 3(1)(2), Mumbai

In the result, all the appeals of the Revenue as well as the assessee are partly allowed

…ance of interest could be made. Hence, in the light of decision of the Hon‟ble Supreme Court in the case of Reliance Industries Ltd., reported in 410 ITR 466 and the decision of the Special Bench of Delhi Tribunal in the case of Vireet Investments reported in 165 ITD 27, we direct the ld. AO to recompute the disallowance of expenses u/s.14A of the Act as under:- i) To consider only net interest expenditure as per the decision of the Hon‟ble Gujarat High Court in the case of Nirma Credit and Capital Pvt. Ltd., referred to supra. ii) To consider only those investments which had actually yielded exempt income to th…

Acira Consultancy Pvt. Ltd., Mumbai vs. ITO 5 (1)(4), Mumbai

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

…8D(2)(ii) of the Rules, we direct the ld AO to consider only those investments which had actually yielded dividend income during the year in the light of decision of Hon’ble Special Bench of Delhi Tribunal in the case of Vireet Investments vs ACIT reported in 165 ITD 27 (Del)(SB). Accordingly, the ground raised by the assessee is partly allowed and ld AO is directed to recompute accordingly. 4. In the result, the appeal of the assessee is partly allowed. Order pronounced on 07/09/2021 by way of proper mentioning in the notice board. (MAHAVIR SINGH) ACCOUNTANT MEMBER Mumbai; Dated 07/09/2021 KARUNA, sr.ps 4 M/s…

Hind Musafir Agency Ltd., Mumbai vs. Asst CIT 2(1)(2), Mumbai

In the result, this ground of appeal allowed for statistical purpose

Bench: Shri Amarjit Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं/ I.T.A. No. 591/Mum/2020 (निर्धारण वर्ा / Assessment Year: 2016-17) Hind Musafir Agency Ltd. बिधम/ Acit-2(1)(2) 39Th Floor, Sunshine Tower, Aayakar Bhavan, Maharishi Vs. Senapati Bapat Marg, Dadar Karve Road, Mumbai- (W), Mumbai-400013. 400020. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaach1250Q (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Parth Achwal (Ar) Revenue By: Shri Gurbinder Singh (Dr) सुनवाई की तारीख / Date Of Hearing: 14/07/2021 घोषणा की तारीख /Date Of Pronouncement: 03/09/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 25.11.2019 Passed By The Commissioner Of Income Tax (Appeals)-04, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2016-17. 2. The Assessee Has Raised The Following Grounds: - “1. On The Facts & In The Circumstances Of The Case & In Law, The Commissioner Of Income-Tax (Appeals) Erred In Upholding (He Action Of The Assessing Officer \N Considering The Income From Letting Out Of Office Premises Owned By The Appellant Under The Head 'Profits & Gains Of Business Or Profession' Instead Of The Head 'Income From House Property'.

…the investment which did not yielded exempt income is liable to be excluded while calculating expenditure to earn the exempt income. The Ld. Representative of the assessee has placed reliance upon the decision in the case of ACIT Vs. Vireet Investment (2017) 165 ITD 27 (Delhi-Trib SB). This issue has already decided by Hon‟ble ITAT in the assessee‟s own case bearing ITA. No. 247/Mum/2019 for the A.Y.2015-16 dated 15.09.2020. The relevant finding is hereby reproduced as under.:- 1. “We have considered the rival submissions of the parties and gone through the orders of the tax authorities below. As noted above th…

Star Chemicals (Bombay) Pvt Ltd., Mumbai vs. DCIT-3(3), Mumbai

The appeal stands dismissed

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.4448/Mum/2019 (धििाारण वर्ा / Assessment Year: 2014-15) Star Chemicals (Bombay) Pvt. Ltd. Dcit-3(3) बिाम/ 6Th Floor, Aaykar Bhavan, 55/58, Jolly Maker Chambers No. 2, Vs. Nariman Point, Mumbai-400 021 Mumbai-400 020 स्थायीलेखासं./ जीआइआरसं./ Pan/Gir No. Aaacs-7485-E (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Shri Anil Thanawad– Ld. Ar Revenue By : Shri T. S. Khalsa– Ld. Sr. Dr सुनवाई की तारीख/ : 16/08/2021 Date Of Hearing घोषणा की तारीख / : 25/08/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal ()

…the assessee while computing income under normal provisions as well as while computing Book-Profits u/s 115JB. 3. Upon further appeal, Ld. CIT(A), inter-alia, relying upon the decision of Special Bench of Delhi Tribunal in ACIT V/s Vireet Investment (P) Ltd. (165 ITD 27), directed Ld. AO to examine the working of the assessee and compute the disallowance by considering only those investments which have yielded exempt income during the year. The Ld. CIT(A) also directed Ld. AO to exclude the disallowance from Book-Profits u/s 115JB. Still aggrieved, the assessee is in further appeal before us. 4. Upon due consider…

Nirmal Industrial Control Pvt. Ltd., Mumbai vs. ACIT 15(2)(1), Mumbai

In the result, appeal of the assessee is partly allowed

…of the Rules is warranted, With regard to disallowance made u/s.14A in the computation of book profits u/s.115JB of the Act, the assessee placed reliance on the Special Bench of Delhi Tribunal in the case of ACIT vs. Vireet Investments Pvt. Ltd., reported in 165 ITD 27 wherein it was held that computation mechanism provided in Rule 8D(2) of the Rules cannot be imputed in Clause (f) of Explanation 2 to Section 115JB(2) of the Act for the purpose of making disallowance of expenses incurred for earning exempt income. However, the ld. CIT(A) did not heed to these contentions of the assessee and upheld the disallowan…