ACIT v. Vireet Investments Pvt. Ltd.

58 ITR 313High Court2017#3429 most cited

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

Disallowance under section 14A of the Income Tax Act cannot be added while computing book profits under section 115JB of the Act. Expenses incurred to earn exempt income should be restricted to the exempt income earned.

35

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2018 to 2026.

Also referred to as

ACIT v. Vireet Investments Pvt. Ltd. · section 14A · section 115JB · disallowance · exempt income · book profits · dividend income · rule 8D

Also reported as

165 ITD 25

Sections most often in play

Section 115JBSection 14ASection 41(1)Section 80IASection 142(1)Section 143(1)Section 143(2)Section 250(6)

Issues it is cited on

section 41(1)section 80iasection 41section 115jsection 80idisallowance u/s 14adisallowance under section 14asection 115jbsection 14adispute resolution panelsection 254international transaction

Judgments citing ACIT v. Vireet Investments Pvt. Ltd.

Assistant Commissioner of Income Tax, Circle- 4(1)(2), Bengaluru vs. M/S. M.N. Dastur Company Private Limited, Bangalore

Accordingly the same is dismissed

ITA 2054/BANG/2019[2013-14]Status: DisposedITAT Bangalore24 Jun 2020AY 2013-14

Bench: Shri N.V. Vasudevan & Shri B R Baskaranassessment Year : 2013-14

For Appellant: Shri Priyadarshi Mishra, Jt.CIT(DR)(ITAT), BengaluruFor Respondent: None
Section 10Section 10(38)Section 11Section 115JSection 143(3)Section 14ASection 154

…s HC in the case of CWT Vs. Sri Ram and Ors, 15 Taxman. 149 (Mad.) and also [2018] 96 taxmann.com 542 (Jaipur-Trib) [2018] 172 lTD 571 (Jaipur-Trib) and also taking into consideration the special bench decision in the case of ACTT v Vireet Investments Pvt Ltd-58 ITR 313 Delhi, wherein this issue "whether disallowance u/s 14A can be added back to book profit u/s 115JB” has been held in the favour of assessee, the assessee grounds are allowed. 7 In the result, the appeal is allowed.” 6. Aggrieved by the aforesaid order of the CIT(A), the revenue filed an application u/s.154 of the Act against the order dated 2.4.20…

Smt Usha Samani, Mumbai vs. ITO 17(3)(5), Mumbai

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

ITA 6554/MUM/2018[2013-14]Status: DisposedITAT Mumbai25 Feb 2020AY 2013-14

Bench: Shri R.C. Sharma & Shri Pawan Singh: A.Y : 2013-14

For Appellant: Shri Navin MishraFor Respondent: Shri Sarish Chandra Rajore
Section 10(34)Section 143(3)Section 14A

…ome on some of investment and it is the plea of the assessee that the same should not be considered for disallowance u/s. 14A. 1 find that this proposition is duly supported by the order of Special bench of the ITAT in the case of Vireet Investment Pvt. Ltd. (58 ITR 313). Hence I direct that investment which had not yield any dividend income should not be taken into account for the purpose of computation of disallowance.” 4. As the facts and circumstances during the year under consideration are same, we restore the matter back to the file of the AO for excluding investment on which the assessee has not received…

Essar Ports Ltd, Mumbai vs. ACIT-6(2)(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 4444/MUM/2017[2011-12]Status: DisposedITAT Mumbai26 Jun 2019AY 2011-12

Bench: Shri G.S. Pannu, Vice- & Shri Pawan Singhessar Ports Ltd. Acit-6(2)(2), Essar House, 11, Keshavrao Room No. 563 (C), Vs. Khadye Marg, Mahalaxmi, 5Th Floor, Aayakar Bhavan, Mumbai-400034. M.K. Road, Pan: Aaace8391D Mumbai-400020 Appellant Respondent Appellant By : Shri Vijay Mehta & Anuj Kisnadwala Ar’S Respondent By : Shri Mukundraj Chate Dr Date Of Hearing : 18.06.2019 Date Of Pronouncement : 26.06.2019 Order Under Section 254(1)Of Income Tax Act

For Appellant: Shri Vijay Mehta & Anuj KisnadwalaFor Respondent: Shri Mukundraj Chate DR
Section 115JSection 14Section 143(3)Section 14ASection 254(1)

…ear. In support of his submissions the ld AR for the assessee relied on the decision of Delhi High Court in CIT Vs Interglobe Enterprises Ltd (-------), ACB India Vs ACIT [374ITR 108 (Delhi)] and Special Bench of Delhi Tribunal in ACIT Vs Vireet Investment [ 165 ITD 25 (Del) (SB). In alternative submissions the ld AR for the assessee submits that disallowances under section14A is to be restricted to the amount of exempt income earned during the year. In support of this submissions the ld AR for the assessee relied on the decision of Delhi High Court in Joint Investment 11 ITA No. 4444 Mum 2017-Essar Ports Lt…

Smt Usha Samani, Mumbai vs. ITO 17(3)(5), Mumbai

In the result, this appeal stands partly allowed for statistical purposes

ITA 4268/MUM/2018[2012-13]Status: DisposedITAT Mumbai13 Jun 2019AY 2012-13

Bench: Shri Shamim Yahya (Am)

Section 14A

…ome on some of investment and it is the plea of the assessee that the same should not be considered for disallowance u/s. 14A. I find that this proposition is duly supported by the order of Special bench of the ITAT in the case of Vireet Investment Pvt. Ltd. (58 ITR 313). Hence I direct that investment which had not yield any dividend income should not be taken into account for the purpose of computation of disallowance. 6. As regards the claim that disallowance u/s. 14A should not be made for shares kept as stock-in-trade, I note that this issue is decided against the assessee by the decision of Hon'ble Apex Co…

M/S.Golflinks Software Park (P) Ltd., Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal of the revenue in ITA No

ITA 339/BANG/2017[2013-14]Status: DisposedITAT Bangalore10 May 2019AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri G. Sitaram, CAFor Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 28Section 36(1)(iii)

…tomatically added while determining the book profits u/s. 115JB of the Act. In support of the stand taken by the assessee, the assessee has placed reliance on the decision of the Delhi Special Bench of ITAT in the case of ACIT v. Vireet Investments Pvt. Ltd., 165 ITD 25 (Del)(SB). In the aforesaid decision, two questions were considered by the Special Bench which are as follows:- “(i) Whether the expenditure incurred to earn exempt income computed u/s 14A could not be added while computing book profit u/s 115JB of the Act? And (ii) Whether investments which did not yield any exempt income should enter into the c…

M/S.Golflinks Software Park (P) Ltd., Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal of the revenue in ITA No

ITA 338/BANG/2017[2012-13]Status: DisposedITAT Bangalore10 May 2019AY 2012-13

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri G. Sitaram, CAFor Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 28Section 36(1)(iii)

…tomatically added while determining the book profits u/s. 115JB of the Act. In support of the stand taken by the assessee, the assessee has placed reliance on the decision of the Delhi Special Bench of ITAT in the case of ACIT v. Vireet Investments Pvt. Ltd., 165 ITD 25 (Del)(SB). In the aforesaid decision, two questions were considered by the Special Bench which are as follows:- “(i) Whether the expenditure incurred to earn exempt income computed u/s 14A could not be added while computing book profit u/s 115JB of the Act? And (ii) Whether investments which did not yield any exempt income should enter into the c…

M/S.Golflinks Software Park (P) Ltd., Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal of the revenue in ITA No

ITA 337/BANG/2017[2011-12]Status: DisposedITAT Bangalore10 May 2019AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri G. Sitaram, CAFor Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 28Section 36(1)(iii)

…tomatically added while determining the book profits u/s. 115JB of the Act. In support of the stand taken by the assessee, the assessee has placed reliance on the decision of the Delhi Special Bench of ITAT in the case of ACIT v. Vireet Investments Pvt. Ltd., 165 ITD 25 (Del)(SB). In the aforesaid decision, two questions were considered by the Special Bench which are as follows:- “(i) Whether the expenditure incurred to earn exempt income computed u/s 14A could not be added while computing book profit u/s 115JB of the Act? And (ii) Whether investments which did not yield any exempt income should enter into the c…

M/S.Golflinks Software Park (P) Ltd., Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal of the revenue in ITA No

ITA 336/BANG/2017[2010-11]Status: DisposedITAT Bangalore10 May 2019AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri G. Sitaram, CAFor Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 28Section 36(1)(iii)

…tomatically added while determining the book profits u/s. 115JB of the Act. In support of the stand taken by the assessee, the assessee has placed reliance on the decision of the Delhi Special Bench of ITAT in the case of ACIT v. Vireet Investments Pvt. Ltd., 165 ITD 25 (Del)(SB). In the aforesaid decision, two questions were considered by the Special Bench which are as follows:- “(i) Whether the expenditure incurred to earn exempt income computed u/s 14A could not be added while computing book profit u/s 115JB of the Act? And (ii) Whether investments which did not yield any exempt income should enter into the c…

Sri.Ratan Babulal Lath, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal of the revenue in ITA No

ITA 335/BANG/2017[2009-10]Status: DisposedITAT Bangalore10 May 2019AY 2009-10

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri G. Sitaram, CAFor Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 28Section 36(1)(iii)

…tomatically added while determining the book profits u/s. 115JB of the Act. In support of the stand taken by the assessee, the assessee has placed reliance on the decision of the Delhi Special Bench of ITAT in the case of ACIT v. Vireet Investments Pvt. Ltd., 165 ITD 25 (Del)(SB). In the aforesaid decision, two questions were considered by the Special Bench which are as follows:- “(i) Whether the expenditure incurred to earn exempt income computed u/s 14A could not be added while computing book profit u/s 115JB of the Act? And (ii) Whether investments which did not yield any exempt income should enter into the c…

M/S.Golflinks Software Park (P) Ltd., Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal of the revenue in ITA No

ITA 334/BANG/2017[2008-09]Status: DisposedITAT Bangalore10 May 2019AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri G. Sitaram, CAFor Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 28Section 36(1)(iii)

…tomatically added while determining the book profits u/s. 115JB of the Act. In support of the stand taken by the assessee, the assessee has placed reliance on the decision of the Delhi Special Bench of ITAT in the case of ACIT v. Vireet Investments Pvt. Ltd., 165 ITD 25 (Del)(SB). In the aforesaid decision, two questions were considered by the Special Bench which are as follows:- “(i) Whether the expenditure incurred to earn exempt income computed u/s 14A could not be added while computing book profit u/s 115JB of the Act? And (ii) Whether investments which did not yield any exempt income should enter into the c…

M/S.Golflinks Software Park (P) Ltd., Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal of the revenue in ITA No

ITA 333/BANG/2017[2007-2008]Status: DisposedITAT Bangalore10 May 2019AY 2007-2008

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri G. Sitaram, CAFor Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 28Section 36(1)(iii)

…tomatically added while determining the book profits u/s. 115JB of the Act. In support of the stand taken by the assessee, the assessee has placed reliance on the decision of the Delhi Special Bench of ITAT in the case of ACIT v. Vireet Investments Pvt. Ltd., 165 ITD 25 (Del)(SB). In the aforesaid decision, two questions were considered by the Special Bench which are as follows:- “(i) Whether the expenditure incurred to earn exempt income computed u/s 14A could not be added while computing book profit u/s 115JB of the Act? And (ii) Whether investments which did not yield any exempt income should enter into the c…

DCIT 9(3)(2), Mumbai vs. Garware Polyster Ltd, Mumbai

In the result, appeal of the revenue is partly allowed

ITA 5757/MUM/2017[2012-13]Status: DisposedITAT Mumbai27 Mar 2019AY 2012-13

Bench: Shri Pawan Singh & Shri N.K. Pradhandcit-9(3)(2) M/S Garware Polyster Ltd. 418, 4Th Floor, Garware House, Western Express Aayakar Bhavan, Highway, Vile Parle(East), M.K. Road, Mumbai-400057. Vs. Mumbai-400020. Pan: Aaacg0571D Appellant Respondent Appellant By : Shri B.B. Rajendra Prasad (Cit-Dr) Respondent By : Shri Apurv Gandhi (Ar) Date Of Hearing : 20.03.2019 Date Of Pronouncement : 27.03.2019 Order Under Section 254(1)Of Income Tax Act

For Appellant: Shri B.B. Rajendra Prasad (CIT-DR)For Respondent: Shri Apurv Gandhi (AR)
Section 115JSection 143(3)Section 14ASection 254(1)

…. For the purpose of disallowance u/s 14A of the Act only those investments are to be considered form which exempt income has been received during the year for this purpose reliance is placed on following judicial pronouncement: 1. ACIT Vs. Vireet investment [165 ITD 25 (Del) (SB)] 2. ACB India Vs. ACIT [374 ITR 108 (Del)] 3. CIT vs. Interglobe Enterprises Ltd. (Delhi High Court) 4. M/s. Slyvex cable Co. Pvt. Ltd Vs. DCIT being ITA No. 8581/Mum/2011 for A. Y 2008-09 dated 24.02.2016. 5. Syntex Corp Pvt Ltd Vs. ITO being ITA No. 2994/Mum/2012 dated 21.06.2018. 21. In the A.Y 2009-10, we find that assessee was havi…

Essar Properties P.Ltd, Mumbai vs. DCIT 5(1), Mumbai

Appeal is allowed for statistical purposes

ITA 1363/MUM/2016[2011-12]Status: DisposedITAT Mumbai30 May 2018AY 2011-12

Bench: Shri Joginder Singh () & Shri N.K. Pradhan () Assessment Year: 2011-12 Dcit. Cir.6(3)(2), R. No. M/S Essar Properties Pvt. 522, 5Th Floor, Aayakar Ltd., 11, K K Marg, Essar Vs. Bhavan, M.K. Road, House, Mahalaxmi, Mumbai-400020. Mumbai-400024. Pan No. Aaace0893Q Appellant Respondent Assessment Year: 2011-12 M/S Essar Properties Pvt., Dcit. Cir.6(3)(2), R. No. Essar House, 11Keshavrao 522, 5Th Floor, Aayakar Vs. Khadya Marg, Mahalaxmi, Bhavan, M.K. Road, Mumbai-400034. Mumbai-400020. Pan No. Aaace0893Q Appellant Respondent Revenue By : Mr. V. Justin, Dr Assessee By : Mr. Vijay Mehta, Ar Date Of Hearing : 22/05/2018 Date Of Pronouncement: 30/05/2018

For Appellant: Mr. Vijay Mehta, ARFor Respondent: Mr. V. Justin, DR
Section 143(3)Section 24

…the purpose of disallowance u/s 14A of the Act only those investments are to be considered from which exempt income has been received during the year. Reliance is placed by him on the decision in (i) Asst. CIT v. M/s Essar Properties Pvt. Vireet Investments [165 ITD 25 (Del) (SB)], (ii) ACB India v. ACIT [374 ITR 108 (Del)], (iii) CIT v. Interglobe Enterprises Ltd. (Delhi High Court), (iv) M/s Slyvex Cable Co. Pvt. Ltd. v. DCIT being ITA No. 8581/Mum/2011 for AY 2008-09 dated 24.02.2016. The Ld. counsel further submits that disallowance u/s 14A of the Act is to be restricted to the amount of exempt income earned…

DCIT 6(3)(2), Mumbai vs. Essar Properties P. Ltd, Mumbai

Appeal is allowed for statistical purposes

ITA 1101/MUM/2016[2011-12]Status: DisposedITAT Mumbai30 May 2018AY 2011-12

Bench: Shri Joginder Singh () & Shri N.K. Pradhan () Assessment Year: 2011-12 Dcit. Cir.6(3)(2), R. No. M/S Essar Properties Pvt. 522, 5Th Floor, Aayakar Ltd., 11, K K Marg, Essar Vs. Bhavan, M.K. Road, House, Mahalaxmi, Mumbai-400020. Mumbai-400024. Pan No. Aaace0893Q Appellant Respondent Assessment Year: 2011-12 M/S Essar Properties Pvt., Dcit. Cir.6(3)(2), R. No. Essar House, 11Keshavrao 522, 5Th Floor, Aayakar Vs. Khadya Marg, Mahalaxmi, Bhavan, M.K. Road, Mumbai-400034. Mumbai-400020. Pan No. Aaace0893Q Appellant Respondent Revenue By : Mr. V. Justin, Dr Assessee By : Mr. Vijay Mehta, Ar Date Of Hearing : 22/05/2018 Date Of Pronouncement: 30/05/2018

For Appellant: Mr. Vijay Mehta, ARFor Respondent: Mr. V. Justin, DR
Section 143(3)Section 24

…the purpose of disallowance u/s 14A of the Act only those investments are to be considered from which exempt income has been received during the year. Reliance is placed by him on the decision in (i) Asst. CIT v. M/s Essar Properties Pvt. Vireet Investments [165 ITD 25 (Del) (SB)], (ii) ACB India v. ACIT [374 ITR 108 (Del)], (iii) CIT v. Interglobe Enterprises Ltd. (Delhi High Court), (iv) M/s Slyvex Cable Co. Pvt. Ltd. v. DCIT being ITA No. 8581/Mum/2011 for AY 2008-09 dated 24.02.2016. The Ld. counsel further submits that disallowance u/s 14A of the Act is to be restricted to the amount of exempt income earned…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. ACIT, Jaipur

In the result, both set of cross appeals for the respective assessment years are disposed off with above directions

ITA 380/JPR/2017[2013-14]Status: DisposedITAT Jaipur29 Mar 2018AY 2013-14
For Appellant: Shri P C ParwalFor Respondent: Shri Varindar Mehta (CIT) fu/kZkfjrh dh vksj ls@
Section 115JSection 14ASection 80I

…ause does not refer to Section 14A. Therefore, the book profit u/s 115JB cannot be increased by the disallowance made u/s 14A. Reliance is placed on the decision of Special Bench of Hon’ble Delhi Tribunal in case of ACIT Vs. Vireet Investment Pvt. Ltd. (2017) 58 ITR 313 where it was held as under: “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 read with Rule 8D of the Income-tax Rules, 1962. Therefore, disallowance under section 14A read with Rule 8D could not be added while computing book profits as per section 115JB a…