CCI Ltd. v. JCIT

250 CTR 291High Court2012#808 most cited

What is CCI Ltd. v. JCIT authority for?

Disallowance under Section 14A for exempt income is not warranted for notional expenditure where no actual expenditure is incurred. This principle extends to shares held as stock-in-trade if the primary purpose is not to earn dividend income.

128

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2008 to 2025.

Also referred to as

CCI Ltd. v. JCIT · Section 14A disallowance · exempt income expenditure · notional expenditure · shares stock-in-trade · dividend income · Rule 8D · actual expenditure · Section 10(34) · Karnataka High Court

Also reported as

206 Taxmann 56320 Taxmann.com 196250 ITR 29171 DTR 141

Sections most often in play

Section 10(34)Section 143(3)Section 14ASection 250

Issues it is cited on

section 8dstrategic investmentinterest free advancesdisallowance under section 14adisallowance u/s 14asection 36(1)(iii)commercial expediencybook profitssection 14asection 36(1)section 10section 36

Judgments citing CCI Ltd. v. JCIT

DCIT vs. M/S United Spirits Ltd

In the result, the assessee’s appeals for assessment years 2007-08, 2008-09 and 2009-10 are treated as allowed for statistical purposes

ITA 653/BANG/2013[2009-10]Status: DisposedITAT Bangalore31 Mar 2015AY 2009-10

Bench: Smt. P. Madhavi Devi & Shri Abraham P George & Ita Nos.424 & 605(Bang)/2013 (Assessment Years: 2008-09 & 2009-10)

For Appellant: Shri K.R.Pradeep, CAFor Respondent: Shri C.H.Sundar Rao, CIT(DR)
Section 14A

…earning exempt income. Moreover, when investments are made for the purpose of acquiring controlling interest and strategic interest, the provisions of section 14A cannot be invoked as has been held by the Hon'ble Karnataka High Court in the case of CCI Ltd. (250 ITR 291). The learned Authorised Representative submitted that in this regard, the assessee places reliance on the following decisions of the various Tribunals. ITA No.1277/B/2010, 424M605,652&653/Bang/2013 M/s. United Spirits Ltd. Page 11 of 16 (i) Kingfisher Finvest India Ltd. in ITA No.1368/Bang/2012 dt.17.10.2014; (ii) Garware Wall Ropes Ltd. in ITA…

DCIT vs. M/S United Spirits Ltd

In the result, the assessee’s appeals for assessment years 2007-08, 2008-09 and 2009-10 are treated as allowed for statistical purposes

ITA 652/BANG/2013[2008-09]Status: DisposedITAT Bangalore31 Mar 2015AY 2008-09

Bench: Smt. P. Madhavi Devi & Shri Abraham P George & Ita Nos.424 & 605(Bang)/2013 (Assessment Years: 2008-09 & 2009-10)

For Appellant: Shri K.R.Pradeep, CAFor Respondent: Shri C.H.Sundar Rao, CIT(DR)
Section 14A

…earning exempt income. Moreover, when investments are made for the purpose of acquiring controlling interest and strategic interest, the provisions of section 14A cannot be invoked as has been held by the Hon'ble Karnataka High Court in the case of CCI Ltd. (250 ITR 291). The learned Authorised Representative submitted that in this regard, the assessee places reliance on the following decisions of the various Tribunals. ITA No.1277/B/2010, 424M605,652&653/Bang/2013 M/s. United Spirits Ltd. Page 11 of 16 (i) Kingfisher Finvest India Ltd. in ITA No.1368/Bang/2012 dt.17.10.2014; (ii) Garware Wall Ropes Ltd. in ITA…

United Spirits Ltd vs. ACIT

In the result, the assessee’s appeals for assessment years 2007-08, 2008-09 and 2009-10 are treated as allowed for statistical purposes

ITA 605/BANG/2013[2009-10]Status: DisposedITAT Bangalore31 Mar 2015AY 2009-10

Bench: Smt. P. Madhavi Devi & Shri Abraham P George & Ita Nos.424 & 605(Bang)/2013 (Assessment Years: 2008-09 & 2009-10)

For Appellant: Shri K.R.Pradeep, CAFor Respondent: Shri C.H.Sundar Rao, CIT(DR)
Section 14A

…earning exempt income. Moreover, when investments are made for the purpose of acquiring controlling interest and strategic interest, the provisions of section 14A cannot be invoked as has been held by the Hon'ble Karnataka High Court in the case of CCI Ltd. (250 ITR 291). The learned Authorised Representative submitted that in this regard, the assessee places reliance on the following decisions of the various Tribunals. ITA No.1277/B/2010, 424M605,652&653/Bang/2013 M/s. United Spirits Ltd. Page 11 of 16 (i) Kingfisher Finvest India Ltd. in ITA No.1368/Bang/2012 dt.17.10.2014; (ii) Garware Wall Ropes Ltd. in ITA…

United Spirtis Limited vs. ACIT

In the result, the assessee’s appeals for assessment years 2007-08, 2008-09 and 2009-10 are treated as allowed for statistical purposes

ITA 424/BANG/2013[2008-09]Status: DisposedITAT Bangalore31 Mar 2015AY 2008-09

Bench: Smt. P. Madhavi Devi & Shri Abraham P George & Ita Nos.424 & 605(Bang)/2013 (Assessment Years: 2008-09 & 2009-10)

For Appellant: Shri K.R.Pradeep, CAFor Respondent: Shri C.H.Sundar Rao, CIT(DR)
Section 14A

…earning exempt income. Moreover, when investments are made for the purpose of acquiring controlling interest and strategic interest, the provisions of section 14A cannot be invoked as has been held by the Hon'ble Karnataka High Court in the case of CCI Ltd. (250 ITR 291). The learned Authorised Representative submitted that in this regard, the assessee places reliance on the following decisions of the various Tribunals. ITA No.1277/B/2010, 424M605,652&653/Bang/2013 M/s. United Spirits Ltd. Page 11 of 16 (i) Kingfisher Finvest India Ltd. in ITA No.1368/Bang/2012 dt.17.10.2014; (ii) Garware Wall Ropes Ltd. in ITA…

M/S. United Spirits Ltd., Bangalore vs. ACIT, Bangalore

In the result, the assessee’s appeals for assessment years 2007-08, 2008-09 and 2009-10 are treated as allowed for statistical purposes

ITA 1277/BANG/2010[2007-08]Status: DisposedITAT Bangalore31 Mar 2015AY 2007-08

Bench: Smt. P. Madhavi Devi & Shri Abraham P George & Ita Nos.424 & 605(Bang)/2013 (Assessment Years: 2008-09 & 2009-10)

For Appellant: Shri K.R.Pradeep, CAFor Respondent: Shri C.H.Sundar Rao, CIT(DR)
Section 14A

…earning exempt income. Moreover, when investments are made for the purpose of acquiring controlling interest and strategic interest, the provisions of section 14A cannot be invoked as has been held by the Hon'ble Karnataka High Court in the case of CCI Ltd. (250 ITR 291). The learned Authorised Representative submitted that in this regard, the assessee places reliance on the following decisions of the various Tribunals. ITA No.1277/B/2010, 424M605,652&653/Bang/2013 M/s. United Spirits Ltd. Page 11 of 16 (i) Kingfisher Finvest India Ltd. in ITA No.1368/Bang/2012 dt.17.10.2014; (ii) Garware Wall Ropes Ltd. in ITA…

Vijaya Bank, Bangalore vs. Addl.C.I.T., Bangalore

In the result the appeal by the Assessee is allowed

ITA 653/BANG/2012[2008-09]Status: DisposedITAT Bangalore27 Feb 2015AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Jason P. Boazassessment Year : 2008-09

For Appellant: Shri S.Ananthan and Smt.Lalitha Rameswaran, CAsFor Respondent: Shri O.P.Yadav, CIT-III (DR)
Section 36(1)(viia)

…ility of Sec.14A of the Act to both direct and indirect expenses, are without any basis. 50. Before the Tribunal, the learned counsel for the Assessee placed reliance on the decision of the Hon’ble Karnataka High Court in the case of CCI Ltd. Vs. JCIT (2012) 20 Taxmann.com 196 (Kar.)/(2012) 250 CTR (Kar) 291. The substantial question of law for consideration before the Hon’ble Karnataka High Court in the aforesaid case was as to whether the provisions of Section 14A of the Act are applicable to the expenses incurred by the assessee in the course of its business merely because the assessee is also having divide…

JCIT, Bangalore vs. M/S Vijaya Bank, Bangalore

In the result the appeal by the Assessee is allowed

ITA 578/BANG/2012[2008-09]Status: DisposedITAT Bangalore27 Feb 2015AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Jason P. Boazassessment Year : 2008-09

For Appellant: Shri S.Ananthan and Smt.Lalitha Rameswaran, CAsFor Respondent: Shri O.P.Yadav, CIT-III (DR)
Section 36(1)(viia)

…ility of Sec.14A of the Act to both direct and indirect expenses, are without any basis. 50. Before the Tribunal, the learned counsel for the Assessee placed reliance on the decision of the Hon’ble Karnataka High Court in the case of CCI Ltd. Vs. JCIT (2012) 20 Taxmann.com 196 (Kar.)/(2012) 250 CTR (Kar) 291. The substantial question of law for consideration before the Hon’ble Karnataka High Court in the aforesaid case was as to whether the provisions of Section 14A of the Act are applicable to the expenses incurred by the assessee in the course of its business merely because the assessee is also having divide…

Commissioner of Income Tax vs. M/S Praveen Electronics Ltd

In the result, the Revenue‟s

ITA/87/2006HC Delhi03 Oct 2008
For Respondent: Mr R.D. Jolly
Section 131Section 143(2)Section 260A

…sallow the loss with respect to 8,100 shares, amounting to Rs 1,21,600/-. 9.1 In our view the question whether the impugned share transaction in which the assessee was engaged was a colourable device or not, is essentially 2008:DHC:2834-DB Tax:(2001) 250 ITR 291 (at page 301) are apposite. The same are extracted below:- “….. It may be necessary to deal with the question of “colourable device”. A colourable transaction is one which is seemingly valid, but a feigned or counterfeit transaction entered into for some ulterior purpose. A conclusion about the nature of a transaction, i.e., whether it is c…