Ashima Syntex Ltd. v. ACIT

100 ITD 247Income Tax Appellate Tribunal2006#7621 most cited

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2024.

Issues it is cited on

directions of the drp most appropriate method transfer pricing adjustment section 92ca associated enterprise section 92 international transaction transfer prescribed person company india

Judgments citing Ashima Syntex Ltd. v. ACIT

TATA MOTORS LTD,MUMBAI vs. ACIT 2(3), MUMBAI

In the result, appeal of the assessee is partly allowed

ITA 631/MUM/2013[2008-09]Status: DisposedITAT Mumbai05 Feb 2024AY 2008-09

Bench: Shri Vikas Awasthy& Shri S.Rifaur Rahmanआअसं.631/मुं/2013 (िन.व. 2008-09) Tata Motors Limited Bombay House, 24,Homi Mody Street, Hutama Chowk, Mumbai – 400001. Pan: Aaact-2727-Q ...... अपीलाथ"/Appellant बनाम Vs. The Addl. Commissioner Of Income Tax Circle -2(3), Mumbai. Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ....."ितवादी/Respondent अपीलाथ" "ारा/ Appellant By : Shri J.D.Mistry, Sr.Advocate With Shri Nikhil Tiwari,Advocate "ितवादी "ारा/Respondent By : Ms. Vatsala Jha, Cit-Dr & Shri Manoj Kumar Singh, Sr.Ar सुनवाई की ितिथ/ Date Of Hearing : 10/11/2023 घोषणा की ितिथ/ Date Of Pronouncement : 05/02/2024 आदेश/Order Per Vikas Awasthy, Jm:

For Appellant: Shri J.D.Mistry, Sr.Advocate with Shri Nikhil Tiwari,AdvocateFor Respondent: Ms. Vatsala Jha, CIT-DR and Shri Manoj Kumar Singh, Sr.AR

Section 116Section 143(3)Section 92C

…tted that FCCN were convertible to shares, at the option of the holder. 28. Per contra, the ld. Departmental Representative strongly supporting the findings of the Assessing Officer submitted that the Special Bench in the case of Ashima Syntex Ltd. vs. ACIT, 100 ITD 247 has held that the expenditure incurred on issuance of convertible debentures is not allowable as revenue expenditure. 29. We have heard the submissions made by rival sides. We find that identical issue was considered by the Co-ordinate Bench in assessee's own 30 case in Assessment Year 2006-07 (supra). The Bench allowed expenditure on issuance o…

THE ACIT, CIRCLE-4,, BARODA vs. M/S. ORG INFORMATICS LTD.,, BARODA

In the result, appeal filed by the Revenue is dismissed

ITA 1877/AHD/2014[2008-09]Status: DisposedITAT Ahmedabad21 Sept 2022AY 2008-09

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmedassessment Year: 2008-09

For Appellant: NoneFor Respondent: Shri Atul Pandey, Sr. DR

Section 129Section 139(1)Section 142(1)Section 143(1)Section 143(2)

…52, decision of Hon’ble Rajasthan High Court in the case of CIT vs. Secure Meters Limited, 175 taxman 567. After going through the assessee’s submissions, the CIT(A) has observed that the decision relied by the Assessing Officer in the case of Ashima Syntex (100 ITD 247) and Banco Products (I) Limited vs. DCIT of ITAT Ahmedabad was delivered prior to 2007 and there are decisions of the Hon’ble High Courts which held that the expenses issue of fully convertible debentures are allowable as Revenue expenditure. The CIT(A) has relied upon the decision of Hon’ble Rajasthan High Court in case of Secure Meters Limited…

M/S. TE CONNECTIVITY SERVICES INDIA PRIVATE LIMITED,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(1), BANGALORE

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

ITA 191/BANG/2022[2017-18]Status: DisposedITAT Bangalore16 Sept 2022AY 2017-18

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sit(Tp)A No.191/Bang/2022 Assessment Year : 2017-18 M/S. Te Connectivity Services India Private Vs. National Faceless Assessment Centre, Limited, Delhi. 59/2, 1St Floor, Gurudas Heritage, Block-B, 100 Feet Ring Road, Banashankari 2Nd Stage, Bengaluru – 560 070. Pan: Aafct 3474 R Appellant Respondent Assessee By : Shri. Sriram Seshadri, Ca Revenue By : Dr. Manjunath Karkihalli, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 14.09.2022 Date Of Pronouncement : 16.09.2022 O R D E R Per N. V. Vasudevan:

For Appellant: Shri. Sriram Seshadri, CAFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru

Section 143(3)Section 144BSection 92Section 92C

…mining the applicability of the Tribunal order rendered in the case of Besix Kier Dabhol, SA vs. DDIT (supra), we now examine the applicability of the decision of Special Bench of the Tribunal rendered in the case of Ashima Syntex Ltd. Vs. ACIT as reported in 100 ITD 247 (Ahd.) (SB) on which reliance has been placed by ld. DR of revenue in the written submissions filed by him as reproduced above. From the facts noted by the Tribunal in this case, it is seen that in that case the assessee issued convertible debentures for subscription at the rate of Rs. 75 per debenture and these were in two parts; Part-A of Rs. 3…

CAE FLIGHT TRAINING (INDIA) PRIVATE LIMITED,BENGALURU vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BANGALORE

In the result, the appeal filed by the assessee stands partly allowed

ITA 520/BANG/2022[2016-17]Status: DisposedITAT Bangalore02 Aug 2022AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 520/Bang/2022 Assessment Year : 2016-17 M/S. Cae Flight Training (India) Pvt. Ltd., Survey No. 26 & 27, The Deputy Bandaramanahalli Commissioner Of Village, Income Tax, Anneshwara Panchayat, Central Circle – 2 (2), Kasaba Hobli, Vs. Bangalore. Devanahalli Taluk, Bengaluru – 562 110. Pan: Aadcc1248A Appellant Respondent Assessee By : Shri Ketan Ved, Ca : Shri Sumer Singh Meena, Revenue By Cit Dr-1 Date Of Hearing : 02-08-2022 Date Of Pronouncement : 02-08-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against Assessment Order Dated 12/04/2022 By The Ld.Dcit, Central Circle – 2(2), Bangalore On Following Grounds Of Appeal: “Based On The Facts & Circumstances Of The Case & In Law, M/S. Cae Flight Training (India) Private Limited (Hereinafter Referred To As The "Appellant") Respectfully Craves Leave To Prefer An Appeal Under Section 253 Of The Income-Tax Act, 1961 ("The Act") Against The Order Passed By The Deputy Commissioner Of Income-Tax, Central Circle

For Appellant: Shri Ketan Ved, CA

Section 253Section 92CSection 92D

M/S HOME STUDIO INDIA PT LTD ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), BANGALORE

In the result, the appeal of the assessee is dismissed

ITA 754/BANG/2017[2012-13]Status: DisposedITAT Bangalore23 Sept 2021AY 2012-13

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year : 2012-13

For Appellant: Shri L. Bhaskar, A.RFor Respondent: Shri Priya Darshini Mishra, D.R

Section 143(1)Section 35D

…der the Income tax Act, the “total income” is computed in accordance with the provisions of the Act. The issue relating to allowability of ‘deferred revenue expenses’ has been examined by the Ahmedabad special bench in the case of ACIT v/s Ashima Syntex Ltd. (100 ITD 247), wherein following principles have been laid down in conclusion:- “14. To conclude, the position emerging from the above discussion can be summed up as follows:- – the nature of the expenditure treated as a “deferred revenue expenditure” in the books needs to be properly analysed before taking a view on its allowability or otherwise under the p…

M/S EMBASSY ONE DEVELOPERS PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(2), BANGALORE

In the result, both the appeals of the assessee are partly allowed

ITA 2240/BANG/2018[2010-11]Status: DisposedITAT Bangalore26 Nov 2020AY 2010-11

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri. Ajay Rotti, CAFor Respondent: Shri. Kannan Narayanan, JCIT (DR)(ITAT), Bengaluru

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA Nos.2239 and 2240/Bang/2018 Assessment Years : 2009-10, 2010-11 M/s. Embassy One Developers Pvt. Ltd., Deputy Commissioner of Level-4, No.9, Bellary Road, Income Tax, Bengaluru – 560 032. Vs. Central Circle – 2(2), PAN : AADCE 8281 F Bengaluru. APPELLANT RESPONDENT Assessee by : Shri. Ajay Rotti, CA Revenue by : Shri. Kannan Narayanan, JCIT (DR)(ITAT), Bengaluru Date of hearing : 25.11.2020 Date of : 26.11.2020 Pronouncement O R D E R Per Chandra Poojari, Accountan…

M/S EMBASSY ONE DEVELOPERS PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(2), BANGALORE

In the result, both the appeals of the assessee are partly allowed

ITA 2239/BANG/2018[2009-10]Status: DisposedITAT Bangalore26 Nov 2020AY 2009-10

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri. Ajay Rotti, CAFor Respondent: Shri. Kannan Narayanan, JCIT (DR)(ITAT), Bengaluru

M/S. IMS HEALTH ANALYTICS SERVICES PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 3(1)(1), BANGALORE

In the result, the appeal by the assessee is allowed

ITA 1549/BANG/2019[2015-16]Status: DisposedITAT Bangalore19 Jun 2020AY 2015-16

Bench: Shri N.V. Vasudevan & Shri B R Baskaranassessment Year: 2015-16

For Appellant: Smt. Tanmayee Rajkumar, AdvocateFor Respondent: Smt. R. Premi, Jt.CIT(DR)(ITAT), Bengaluru

Section 36(1)(iii)Section 37(1)

…disallowed the claim of assessee for deduction u/s. 36(1)(iii) of the Act. The AO in coming to the above conclusion placed reliance on the decision of the Special Bench (SB) Income Tax Appellate Tribunal (ITAT) in the case of Ashima Syntex Ltd. v. ACIT [2006] 100 ITD 247 (Ahd)(SB). In the aforesaid case decided by the Special Bench [SB], the assessee issued CCDs which were to be fully converted into equity shares after a certain period. The assessee claimed deduction of expenditure incurred in issuing wholly convertible debentures and the question before the SB was, whether it was allowable u/s. 37(1) as revenue…

THE BHAVNAGAR SALT & INDUSTRIAL WORKS PVT.LTD.,,BHAVNAGAR vs. THE ACIT, CIRCLE-1,, BHAVNAGAR

In the result, appeal of the assessee is dismissed

ITA 1951/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad16 Oct 2019AY 2013-14

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No.1951/Ahd/2017 ("नधा"रण वष"/Assessment Year : 2013-14)

For Respondent: Shri Vinod Tanwani, Sr.DR

Section 36(1)(iii)

…that the expenditure was incurred in the course of business and, therefore, the same should be allowed as deduction. The Ld.AR in support of his contention relied on the order of this Special Bench in the case of Ashima Syntex Ltd. vs. ACIT reported in [2006] 100 ITD 247 (Ahmedabad) (SB). 6. On the other hand, ld. DR vehemently supported the orders of the authorities below. 7. We have heard rival contentions of both the parties and perused the material available on record. The assessee in the present case is engaged in the business of manufacturing of salt. But, the assessee has incurred the expenses in connect…

DCIT (INTERNATIONAL TAXATION), NEW DELHI vs. M/S TMW ASPF I CYPRUS HOLDING COMPANY LTD.,, GURGAON

In the result appeal of the revenue is dismissed and CO IS allowed

ITA 879/DEL/2016[2011-12]Status: DisposedITAT Delhi09 Aug 2019AY 2011-12

Bench: Shri Amit Shukla & Shri O.P. Kantasstt. Year: 2011-12 Dcit (International M/S. Tmw Aspf I Cyprus Holding Taxation) Company Ltd., C/O Deloitee Circle 3 (1)(1), Hasking & Sells Llp, New Delhi. 7Th Floor, Bldg. 10, Tower-B, Dlf Vs. Cyber City Complex, Dlf City Phase – Ii, Gurgaon 122 002 Haryana Pan Aacct6680J (Appellant) (Respondent)

For Appellant: Shri Kanchan Koushal, AdvFor Respondent: Shri H.K. Choudhary, CIT ( DR )

Section 92(1)

…etained by converting into equity shares, therefore, it cannot be said to be a borrowing or loan. Reliance in this regard is placed on the decision of Special 'Bench of ITAT Ahmedabad in the case of Ashima Syntex Ltd. v. Assistant Commissioner of Income- Tax (100 ITD 247) [2006]. 5.7 Further, TPO has erred by ignoring the fact that increase in interest rate charged by the assessee would lead to erosion of tax base in India. As per the Explanatory Memorandum explaining the Finance Bill 2002, the intention of introducing the transfer pricing law in India was expressed to avoid shifting of income from India avoid s…

M/S CAE FLIGHT TRAINING (INDIA) PRIVATE LIMITED,BANGALORE vs. ITO, BANGALORE

In the result, Both the C

ITA 84/BANG/2015[2010-11]Status: DisposedITAT Bangalore25 Jul 2019AY 2010-11

Bench: Shri Arun Kumar Garodia & Smt. Beena Pillai

…ment of the principal and therefore it does not constitute a debenture in classic sense. 6. On the facts and in the circumstances of the case whether or not the DRP can hold a contrary view to the view of the Special Bench in the case of Ashima Syntex Vs ACTT 100 ITD 247 (ITATOSB) that there being no liability to pay as principal is retained as capital by conversion into equity shares, it was not borrowing. 7. On the facts and in the circumstances of the case whether or not DRP after concurring with the view of the TPO that the investment in assessee company by the AEs is not for earning interest. Rather, the inv…

ITO, BANGALORE vs. M/S CAE FLIGHT TRAINING PVT. LTD.,, BANGALORE

In the result, Both the C

ITA 63/BANG/2015[2010-11]Status: DisposedITAT Bangalore25 Jul 2019AY 2010-11

Bench: Shri Arun Kumar Garodia & Smt. Beena Pillai

CAMBRIDGE SOLUTIONS LIMITED,BANGALORE vs. DCIT, BANGALORE

In the result, the assessee’s appeal is allowed

ITA 1469/BANG/2010[2006-07]Status: DisposedITAT Bangalore06 Feb 2017AY 2006-07

Bench: Shri. Vijay Pal Rao & Shri. S. Jayaraman

For Appellant: Shri. Chavali Narayan, CAFor Respondent: Shri. G. R. Reddy, CIT, DR-I

Section 10Section 10ASection 144C(5)

…of India Cements Ltd Vs CIT, 60 ITR 52, which has been followed by the ITAT, Jaipur in Moden Syntex (India) Vs DCJT, 95 TTJ 161 and a host of other decisions apply. The AO has relied on the decision of the ITAT, Ahmadabad Bench in Ashima Syntex Ltd Vs ACIT, 100 ITD 247) wherein it has been held that expenditure incurred by the assessee on issuance of wholly convertible debentures is not allowable as revenue expenditure.” We have considered the rival submissions. The Jurisdictional High Court in CIT v ITC Hotels Ltd 334 ITR 109 , after considering the decision of the Hon'ble High Court of Rajasthan in the case…

PRIME FOCUS LTD..,MUMBAI vs. D.C.I.T. (ODS) C. RG. 7, MUMBAI

In the result, appeal of the Revenue and the Cross Objection filed by the assessee are dismissed

ITA 8364/MUM/2011[2008-09]Status: DisposedITAT Mumbai04 Feb 2016AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Amarjit Singhi.T.A. No.8364/M/2011 (Assessment Year: 2008-2009) C.O.233/M/2012 (Arising Out Of Ita No.8066/M/2011) (Ay 2008-09) Prime Focus Limited, फनाभ/ Dcit (Osd-1), 1S T Floor, Old Dubbing & Central Range, Aayakar Vs. Recording Studio Building, Bhavan, Marine Lines, Dadasaheb Phalke Chitra Mumbai – 400 020. Nagari,Filmcity Campus, Opposite Hotel Food Paradise, Filmcity, Goregaon (E), Mumbai – 400 065. स्थामी रेखा सं./ Pan : Aaacp6811B (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent)

For Appellant: Shri R.R. VoraFor Respondent: Shri M. Dayasagar, DR

Section 14ASection 234D

…ITD 167) dated 22nd August, 2008. In addition, Ld Counsel for the assessee relied on various other decisions to demonstrate that similar kind of expenses were allowed as revenue expenditure u/s 37(1) of the Act. The decisions in the case of Ashima syntax Ltd (100 ITD 247) and Secure Meters Limited (321 ITR 611) (Rajasthan High Court) are some of them. He vehemently demonstrated that this is the case where the bond holders never exercised the option of converting the bonds into equity shares. Therefore, the bonds remained as the debt instrument like debentures, which were eventually redeemed. In such circumstances…