Cheminvest Ltd. v. CIT

378 ITR 33High Court2015#24 most cited

What is Cheminvest Ltd. v. CIT authority for?

A disallowance under Section 14A of the Income-tax Act, 1961, for expenditure incurred in relation to exempt income cannot be made if the assessee has not earned any exempt income during the relevant previous year.

1,569

judgments rely on this decision, according to BharatTax’s citation analysis of 367,164 Indian tax judgments — from 2015 to 2026.

Also referred to as

Cheminvest Ltd. v. CIT · Section 14A disallowance · no exempt income · exempt dividend income · expenditure related to exempt income · Section 8D · Section 115JB · Income-tax Act 1961 · Delhi High Court

Also reported as

61 Taxmann.com 118234 Taxmann 761317 ITD 33281 CTR 447

Sections most often in play

Section 14ASection 143(3)Section 8DSection 115JBSection 250Section 1961Section 37(1)Section 143(2)
Read the full judgment

Issues it is cited on

disallowance u/s 14adisallowance under section 14asection 14asection 36(1)(iii)section 115jbrevenue expendituresection 37(1)section 37section 36previous yearscrutiny assessmentsection 115

Judgments citing Cheminvest Ltd. v. CIT

Addl CIT RG 3(3), Mumbai vs. Relaince Capital Ltd, Mumbai

In the result appeal of the assessee as well as Revenue are partly allowed for statistical purposes

ITA 4794/MUM/2012[2008-09]Status: DisposedITAT Mumbai13 Sept 2017AY 2008-09

Bench: Shri G.S. Pannu & Shri C.N. Prasad

For Appellant: Shri Jitendra B. SanghaviFor Respondent: Shri Purushotam Kumar
Section 14A

…lowing the decision of the Special Bench in the chase of Cheminvest Limited [121 ITD 318] affirmed the order of the Assessing Officer. The decision relied on by the Ld.CIT(A) has been reversed by the Delhi High Court in the case of Cheminvest Limited Vs. CIT [378 ITR 33 Delhi]. Recently the Special Bench of the Delhi Tribunal in the case of ACIT v. Vireet Investments Private Limited(supra) held that only those investments are to be considered for computing average value of investments which yielded exempt income during the year while computing the disallowance Rule 4 ITA.No.4326/MUM/2012 (A.Y: 2008-09) ITA.No.47…

Reliance Capital Ltd, Mumbai vs. Addl CIT RG 3(3), Mumbai

In the result appeal of the assessee as well as Revenue are partly allowed for statistical purposes

ITA 4326/MUM/2012[2008-09]Status: DisposedITAT Mumbai13 Sept 2017AY 2008-09

Bench: Shri G.S. Pannu & Shri C.N. Prasad

For Appellant: Shri Jitendra B. SanghaviFor Respondent: Shri Purushotam Kumar
Section 14A

…lowing the decision of the Special Bench in the chase of Cheminvest Limited [121 ITD 318] affirmed the order of the Assessing Officer. The decision relied on by the Ld.CIT(A) has been reversed by the Delhi High Court in the case of Cheminvest Limited Vs. CIT [378 ITR 33 Delhi]. Recently the Special Bench of the Delhi Tribunal in the case of ACIT v. Vireet Investments Private Limited(supra) held that only those investments are to be considered for computing average value of investments which yielded exempt income during the year while computing the disallowance Rule 4 ITA.No.4326/MUM/2012 (A.Y: 2008-09) ITA.No.47…

Coimbatore Hitech Infrastructure Private Limited, Coimbatore vs. DCIT, Coimbatore

In the result, the assessee’s appeal is allowed

ITA 1091/CHNY/2017[2013-14]Status: DisposedITAT Chennai12 Sept 2017AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri. S. Sridhar, Advocate
Section 14A

…आयकरअपील"यअ"धकरण, ’ए’ "यायपीठ,चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं"ी एस जयरामन, लेखा सद"य केसम# BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 1091/Mds/2017 "नधा"रण वष"/Assessment Years : 2013-14 Coimbatore Hitech Infrastructure Private Deputy Commissioner of Income Tax, Limited, Vs. Corporate Circle -2, No. 365, Thudkyalur Road, Coimbatore – 641 018. Saravanampatti, Coimbatore – 641 035. [PAN: AACCC 5201G] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ%क&ओरसे/Appellant by : Shri. S. Sridh…

ACIT, Chennai vs. Carburettors Ltd., Chennai

In the result, the Revenue’s appeal is allowed

ITA 209/CHNY/2017[2012-13]Status: DisposedITAT Chennai05 Sept 2017AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri. Sreenivas, JCIT
Section 14A

…f the Jurisdictional ITAT in the case of EIH Hotels Ltd Vs. DCIT, ITA No. 1503 & 1624/Mds/2012 dated 17.07.2013 (Chennai Tribunal), DCIT vs. M/s. Amalgamations Ltd in ITA No. 811 & 1712/Mds/2015 order dated 16.09.2015 and 29.09.2015, Cheminvest Ltd vs. CIT 378 ITR 33 order dated 02.09.2015 in ITA No. 749/2014 decided by the Hon’ble Delhi High Court and :-4-: I.T.A. N0. 209/Mds/2017 jurisdictional Tribunal ACIT vs. M. Baskaran in ITA No. 171/Mds/2013 order dated 31st of July, 2014. In EIH Hotels (Supra) it was held by the ITAT that where investments were made by the assesse in the subsidiary company the same…

DCIT, CC-2(3), Kolkata vs. Shri Vivek Jain, Kolkata

In the result the appeals by the revenue are dismissed and the Cross Objections by the assessees are partly allowed

ITA 1283/KOL/2015[2012-2013]Status: DisposedITAT Kolkata18 Aug 2017AY 2012-2013

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri J.Sudhakar Reddy, Am] I.T.A No. 1282/Kol/2015 Assessment Year : 2012-13 D.C.I.T., Central Circle-2(3) -Vs- Shri Vikash Jain Kolkata. Kolkata [Pan : Actpj 6174 D] (Respondent) (Appellant) I.T.A No. 1283/Kol/2015 Assessment Year : 2012-13 D.C.I.T., Central Circle-2(3) -Vs- Shri Vivek Jain Kolkata. Kolkata [Pan : Actpj 6173 E] (Respondent) (Appellant) C.O.Nos.58&59/Kol/2015 (A/O Ita Nos.1282 & 1283/Kol/2015) Shri Vikash Jain & Shri Vivek Jain -Vs- D.C.I.T., Central Circle-2(3) Kolkata Kolkata [Pan : Actpj 6174D & Actpj 6173 E] (Cross Objectors) (Respondent) For The Revenue : Shri Sallong Yaden, Addl. Cit For The Assessee : None Date Of Hearing : 14.08.2017. Date Of Pronouncement : 18.08.2017. Order Per N.V.Vasudevan, Jm

For Appellant: NoneFor Respondent: Shri Sallong Yaden, Addl. CIT
Section 140ASection 143Section 14ASection 234Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : KOLKATA [Before Hon’ble Sri N.V.Vasudevan, JM & Shri J.Sudhakar Reddy, AM] I.T.A No. 1282/Kol/2015 Assessment Year : 2012-13 D.C.I.T., Central Circle-2(3) -vs- Shri Vikash Jain Kolkata. Kolkata [PAN : ACTPJ 6174 D] (Respondent) (Appellant) I.T.A No. 1283/Kol/2015 Assessment Year : 2012-13 D.C.I.T., Central Circle-2(3) -vs- Shri Vivek Jain Kolkata. Kolkata [PAN : ACTPJ 6173 E] (Respondent) (Appellant) C.O.Nos.58&59/Kol/2015 (A/o ITA Nos.1282 & 1283/Kol/2015) Shri Vikash Jain & Shri Vivek Jain -vs- D.C.I.T., Central Circle-2(3) Kolkata Kolkata [PAN : ACTPJ 617…

DCIT, Cen. Cir-2(3), Kolkata vs. Shri Vikash Jain, Kolkata

In the result the appeals by the revenue are dismissed and the Cross Objections by the assessees are partly allowed

ITA 1282/KOL/2015[2012-2013]Status: DisposedITAT Kolkata18 Aug 2017AY 2012-2013

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri J.Sudhakar Reddy, Am] I.T.A No. 1282/Kol/2015 Assessment Year : 2012-13 D.C.I.T., Central Circle-2(3) -Vs- Shri Vikash Jain Kolkata. Kolkata [Pan : Actpj 6174 D] (Respondent) (Appellant) I.T.A No. 1283/Kol/2015 Assessment Year : 2012-13 D.C.I.T., Central Circle-2(3) -Vs- Shri Vivek Jain Kolkata. Kolkata [Pan : Actpj 6173 E] (Respondent) (Appellant) C.O.Nos.58&59/Kol/2015 (A/O Ita Nos.1282 & 1283/Kol/2015) Shri Vikash Jain & Shri Vivek Jain -Vs- D.C.I.T., Central Circle-2(3) Kolkata Kolkata [Pan : Actpj 6174D & Actpj 6173 E] (Cross Objectors) (Respondent) For The Revenue : Shri Sallong Yaden, Addl. Cit For The Assessee : None Date Of Hearing : 14.08.2017. Date Of Pronouncement : 18.08.2017. Order Per N.V.Vasudevan, Jm

For Appellant: NoneFor Respondent: Shri Sallong Yaden, Addl. CIT
Section 140ASection 143Section 14ASection 234Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : KOLKATA [Before Hon’ble Sri N.V.Vasudevan, JM & Shri J.Sudhakar Reddy, AM] I.T.A No. 1282/Kol/2015 Assessment Year : 2012-13 D.C.I.T., Central Circle-2(3) -vs- Shri Vikash Jain Kolkata. Kolkata [PAN : ACTPJ 6174 D] (Respondent) (Appellant) I.T.A No. 1283/Kol/2015 Assessment Year : 2012-13 D.C.I.T., Central Circle-2(3) -vs- Shri Vivek Jain Kolkata. Kolkata [PAN : ACTPJ 6173 E] (Respondent) (Appellant) C.O.Nos.58&59/Kol/2015 (A/o ITA Nos.1282 & 1283/Kol/2015) Shri Vikash Jain & Shri Vivek Jain -vs- D.C.I.T., Central Circle-2(3) Kolkata Kolkata [PAN : ACTPJ 617…

Pr. Commissioner of Income Tax-04 vs. M/S Il & Fs Energy Development Company Ltd

ITA/520/2017HC Delhi16 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 115JSection 14ASection 260

…e had made investments in shares of subsidiary companies and joint ventures for the purposes of business and not for earning exempted dividend income, there could not be any disallowance. This Court, in Cheminvest Ltd. v. Commissioner of Income Tax (2015) 378 ITR 33 (Del), reversed the decision of the Special Bench of the ITAT and held that Section 14A of the Income Tax Act would not apply if the Assessee had not received any exempt income in the year in question. The Gujarat High Court had, in CIT v. Corrtech Energy Pvt. Ltd. [2015] 372 ITR 97 (Guj) held likewise. The Assessee held interest free funds…

ACIT, Chennai vs. Virgo Properties Pvt Ltd., Chennai

In the result, the Revenue’s appeal is partly allowed

ITA 741/CHNY/2016[2012-13]Status: DisposedITAT Chennai31 Jul 2017AY 2012-13

Bench: Shri Sanjay Arora & Shri Duvvuru Rl Reddyआयकर अपील सं./Ita No.741/Mds/2016 "नधा"रण वष" / Assessment Year : 2012-13

For Appellant: Shri K.Balasubramanian, AdvocateFor Respondent: 16.05.2017
Section 143(3)Section 14ASection 28Section 36(1)(iii)Section 37(1)

…letion of disallowance u/s. 14A, effected in the sum of ". 33,11,256/-. The deletion is for the reason of no dividend income, i.e., income not forming part of the total income, from investment in shares, following the decision in Cheminvest Ltd. v. CIT [2015] 378 ITR 33 (Del). The matter, even as pointed by the ld. Authorized Representative (AR) during hearing, is no longer is res integra as far as the Chennai Benches of the Appellate Tribunal are concerned in view of the decision by the Hon'ble jurisdictional High Court in Redington (India) Ltd. v. Addl. CIT [2017] 77 taxmann.com 257 (Mad) (copy on record). The…

DCIT, Circle-1(1), Cuttack vs. Jitendra Nath Patnaik, Keonjhar

In the result, the appeal filed by the revenue is dismissed

ITA 13/CTK/2016[2011-12]Status: DisposedITAT Cuttack28 Jul 2017AY 2011-12

Bench: S/Shri N.S Saini & Pavan Kumar Gadaleassessment Year :2011-12

For Appellant: Shri S.C.Bhadra, ARFor Respondent: Shri Subhendu Dutta, DR
Section 14A

…aid Circular, even if no exempt income is earned by the assessee, disallowance of expenditure can still be made u/s.14A of the Act. 7. Before us, ld A.R. has relied on the decision of Hon’ble Delhi High Court in the case of Cheminvest Limited vs CIT (2015) 378 ITR 33 (Del), wherein, it has been held that the expression 'does not form part of the total income' in Section 14A of the Act envisages that there should be an actual receipt of income, which was not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income.…

Rel Utility Engimeers Ltd, Mumbai vs. DCIT 10(1), Mumbai

In the result, the appeal of the assessee is allowed and the appeal of the Revenue is dismissed

ITA 7177/MUM/2013[2009-10]Status: DisposedITAT Mumbai14 Jul 2017AY 2009-10

Bench: Shri Sanjay Garg & Shri Rajesh Kumarassessment Year: 2009-10 M/S. Crest Logistics & Addl. Cit-10(1), Engineers Private Limited, [New Jurisdiction Addl. Cit (Erstwhile Rel Utility 14(3)(1)] Engineers Ltd. Formerly Known Aayakar Bhavan, As Rel Utility Engineers Ltd. M.K. Road, Vs. Formerly Known As Mumbai - 400020 Sonata Investments Ltd.), Devidas Lane, Near Mtnl, Off Svp Road, Borivali (W) – 400 103 Pan: Aaccr 7266A (Appellant) (Respondent) Assessment Year: 2009-10 Dy. Commissioner Of Income M/S. Crest Logistic & Tax-14(1)(2), Engineering Ltd., Room No.470, 4Th Floor, (Formerly Known As Sonata Aayakar Bhavan, Investments Ltd.) Maharshi Karve Road, Vs. 307, Charted House, Mumbai - 400020 297/299, Dr. Cawasji Hormosji Street, New Marine Lines, Mumbai – 400 002 Pan: Aaccr 7266A (Appellant) (Respondent)

For Appellant: Shri Jitendra Sanghvi, A.RFor Respondent: Shri B. Pruseth, D.R

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “D”, MUMBAI BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER Assessment Year: 2009-10 M/s. Crest Logistics and Addl. CIT-10(1), Engineers Private Limited, [New Jurisdiction Addl. CIT (Erstwhile REL Utility 14(3)(1)] Engineers Ltd. Formerly known Aayakar Bhavan, as REL Utility Engineers Ltd. M.K. Road, Vs. Formerly known as Mumbai - 400020 Sonata Investments Ltd.), Devidas Lane, Near MTNL, Off SVP Road, Borivali (W) – 400 103 PAN: AACCR 7266A (Appellant) (Respondent) Assessment Year: 2009-10 Dy. Commissioner of Income M/s. Crest L…

DCIT 10(1), Mumbai vs. Sonata Investments Ltd, Mumbai

In the result, the appeal of the assessee is allowed and the appeal of the Revenue is dismissed

ITA 6931/MUM/2013[2009-10]Status: DisposedITAT Mumbai14 Jul 2017AY 2009-10

Bench: Shri Sanjay Garg & Shri Rajesh Kumarassessment Year: 2009-10 M/S. Crest Logistics & Addl. Cit-10(1), Engineers Private Limited, [New Jurisdiction Addl. Cit (Erstwhile Rel Utility 14(3)(1)] Engineers Ltd. Formerly Known Aayakar Bhavan, As Rel Utility Engineers Ltd. M.K. Road, Vs. Formerly Known As Mumbai - 400020 Sonata Investments Ltd.), Devidas Lane, Near Mtnl, Off Svp Road, Borivali (W) – 400 103 Pan: Aaccr 7266A (Appellant) (Respondent) Assessment Year: 2009-10 Dy. Commissioner Of Income M/S. Crest Logistic & Tax-14(1)(2), Engineering Ltd., Room No.470, 4Th Floor, (Formerly Known As Sonata Aayakar Bhavan, Investments Ltd.) Maharshi Karve Road, Vs. 307, Charted House, Mumbai - 400020 297/299, Dr. Cawasji Hormosji Street, New Marine Lines, Mumbai – 400 002 Pan: Aaccr 7266A (Appellant) (Respondent)

For Appellant: Shri Jitendra Sanghvi, A.RFor Respondent: Shri B. Pruseth, D.R

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “D”, MUMBAI BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER Assessment Year: 2009-10 M/s. Crest Logistics and Addl. CIT-10(1), Engineers Private Limited, [New Jurisdiction Addl. CIT (Erstwhile REL Utility 14(3)(1)] Engineers Ltd. Formerly known Aayakar Bhavan, as REL Utility Engineers Ltd. M.K. Road, Vs. Formerly known as Mumbai - 400020 Sonata Investments Ltd.), Devidas Lane, Near MTNL, Off SVP Road, Borivali (W) – 400 103 PAN: AACCR 7266A (Appellant) (Respondent) Assessment Year: 2009-10 Dy. Commissioner of Income M/s. Crest L…

M/S. Nishu Finlease Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Appeal of the assessee is allowed

ITA 5650/DEL/2014[2010-11]Status: DisposedITAT Delhi14 Jul 2017AY 2010-11

Bench: Shri S. V. Mehrotra & Smt Suchitra Kamble

Section 10(34)Section 143(3)Section 14ASection 156Section 271(1)(c)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘F’ NEW DELHI BEFORE SHRI S. V. MEHROTRA, VICE PRESIDENT AND SMT SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A .No.-5650/Del/2014 (A.Y 2010-11) Nishu Finlease Pvt. Ltd. vs DCIT C/o. Oswal Sunil & Company, Circle-13(1) 71, Daryaganj New Delhi New Delhi AAACN3613M (APPELLANT) (RESPONDENT) Appellant by Sh. Amit Sharma, CA Respondent by Sh. F. R. Meena, Sr. DR Date of Hearing 08.06.2017 Date of Pronouncement 14.07.2017 ORDER PER SUCHITRA KAMBLE, JM This appeal is filed by the Assessee against the order dated 23/07/2014 passed by CIT(A)-XVI, New Delhi for Asses…

DCIT, Cuttack vs. Dipendra Bahadur Singh, Keonjhar

ITA 413/CTK/2015[2011-12]Status: DisposedITAT Cuttack13 Jul 2017AY 2011-12

Bench: S/Shri N.S Saini & Pavan Kumar Gadaleassessment Year :2011-12

For Appellant: Shri S.K.Agarwal, ARFor Respondent: Shri D.K.Pradhan, DR
Section 139(1)Section 43B

…tion 14A of the Act made disallowance of Rs.15,47,511/-. 15. On appeal, the CIT(A) confirmed the action of the Assessing Officer. 16. Before us, ld A.R. has relied on the decision of Hon’ble Delhi High Court in the case of Cheminvest Limited vs CIT (2015) 378 ITR 33 (Del), wherein, it has been held that the expression 'does not form part of the total income' in Section 14A of the Act envisages that there should be an actual receipt of income, which was not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income.…

ACIT, Chennai vs. Continuum Wind Energy (India) Pvt. Ltd., Chennai

In the result, the appeal filed by the assessee is partly allowed while the Revenue’s appeal is dismissed

ITA 211/CHNY/2017[2013-14]Status: DisposedITAT Chennai16 Jun 2017AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Sh. B. Ramakrishnan, CAFor Respondent: Sh. Sreenivasan, JCIT
Section 43A

…आयकर अपील"य अ"धकरण, ‘ए’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी एस जयरामन, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3344/Mds/2016 "नधा"रण वष" / Assessment Year : 2013-14 M/s Continuum Wind Energy (India) Pvt. Ltd. (Formerly known as M/s Surajbari Windfarm Development The Deputy Commissioner of Pvt. Ltd.), v. Income Tax, South Wing, 4th floor, Kakani Towers, Corporate Circle 1(2), No.15, Khader Nawaz Khan Road, Chennai - 600 034. Nungambakkam, Chennai - 600 006…

Continuum Wind Energy (India) Pvt. Ltd., Chennai vs. DCIT, Chennai

In the result, the appeal filed by the assessee is partly allowed while the Revenue’s appeal is dismissed

ITA 3344/CHNY/2016[2013-14]Status: DisposedITAT Chennai16 Jun 2017AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Sh. B. Ramakrishnan, CAFor Respondent: Sh. Sreenivasan, JCIT
Section 43A

…आयकर अपील"य अ"धकरण, ‘ए’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी एन.आर.एस. गणेशन, "या"यक सद"य एवं "ी एस जयरामन, लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3344/Mds/2016 "नधा"रण वष" / Assessment Year : 2013-14 M/s Continuum Wind Energy (India) Pvt. Ltd. (Formerly known as M/s Surajbari Windfarm Development The Deputy Commissioner of Pvt. Ltd.), v. Income Tax, South Wing, 4th floor, Kakani Towers, Corporate Circle 1(2), No.15, Khader Nawaz Khan Road, Chennai - 600 034. Nungambakkam, Chennai - 600 006…

DCIT, CC-Xxvii, Kolkata vs. M/S Forex Finance Pvt. Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 154/KOL/2014[2010-2011]Status: DisposedITAT Kolkata08 Jun 2017AY 2010-2011

Bench: Hon’Ble Sri A.T.Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 154/Kol/2014 Assessment Year : 2010-11 D.C.I.T., Central Circle-Xxvii, -Vs.- M/S Forex Finance Pvt..Ltd. Kolkata Kolkata [Pan : Aaacf 3639 H] (Respondent) (Appellant) For The Appellant : Shri A.K.Sinha, Addl. Cit For The Respondent : Shri J.P.Khaitan, Sr.Counsel & Shri Pratyush Jhunjhunwala, Advocate Date Of Hearing : 08.06.2017. Date Of Pronouncement : 08.06.2017. Order

For Appellant: Shri A.K.Sinha, Addl. CITFor Respondent: Shri J.P.Khaitan, Sr.Counsel and Shri Pratyush Jhunjhunwala, Advocate
Section 143(3)Section 14A

…Act is addressed at the threshold level itself by holding that the same is inapplicable to the facts of the instant case. Reliance in this regard is placed on the decision of the Hon’ble Delhi High Court in the case of Cheminvest Ltd vs CIT reported in (2015) 378 ITR 33 (Delhi) wherein it 5 M/s. Forex Finance Pvt. Ltd. A.Yr.2010-11 was held that no exempted income was earned by the assessee in the relevant assessment year and since the genuineness of the expenditure incurred by the assessee was not in doubt, no disallowance could be made under section 14A. But we find that in the instant case, though the ld CITA…

ACIT, New Delhi vs. M/S. Bhushan Energy Ltd., New Delhi

In the result appeal of assessee is allowed and departmental

ITA 4158/DEL/2014[2011-12]Status: DisposedITAT Delhi07 Jun 2017AY 2011-12

Bench: Hon'Bleshri G.D. Agrawal & Shri Bhavnesh Sainiassessment Year : 2011-12

For Appellant: Shri Ashwani Kumar, CAFor Respondent: Shri S.K. Jain, Sr. DR
Section 10Section 115JSection 14Section 14ASection 250

…ce with the above directions. The appeal is partly allowed.” 11. The AO while disallowing the deduction u/s 14A relied upon order of ITAT in the case of Cheminvest Ltd vs. CIT (supra). However Hon'ble Delhi High Court in the case of Cheminvest Ltd. vs. CIT 378 ITR 33 (Delhi) held as under :- “ that no exempted income was earned by the assessee in the relevant assessment year and since the genuineness of the expenditure incurred by the assessee was not in doubt, no disallowance could be made under section 14A.” 12. Considering the facts of the case in the light of the above decisions of Delhi High Court, it…

M/S. Bhushan Energy Ltd., New Delhi vs. ACIT, New Delhi

In the result appeal of assessee is allowed and departmental

ITA 3875/DEL/2014[2011-12]Status: DisposedITAT Delhi07 Jun 2017AY 2011-12

Bench: Hon'Bleshri G.D. Agrawal & Shri Bhavnesh Sainiassessment Year : 2011-12

For Appellant: Shri Ashwani Kumar, CAFor Respondent: Shri S.K. Jain, Sr. DR
Section 10Section 115JSection 14Section 14ASection 250

…ce with the above directions. The appeal is partly allowed.” 11. The AO while disallowing the deduction u/s 14A relied upon order of ITAT in the case of Cheminvest Ltd vs. CIT (supra). However Hon'ble Delhi High Court in the case of Cheminvest Ltd. vs. CIT 378 ITR 33 (Delhi) held as under :- “ that no exempted income was earned by the assessee in the relevant assessment year and since the genuineness of the expenditure incurred by the assessee was not in doubt, no disallowance could be made under section 14A.” 12. Considering the facts of the case in the light of the above decisions of Delhi High Court, it…

ACIT, Chennai vs. M/S. Celebrity Fashions Ltd., Chennai

In the result, the appeal of the revenue is dismissed

ITA 2516/CHNY/2016[2011-12]Status: DisposedITAT Chennai26 May 2017AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singhआयकर अपील सं./Ita No.2516/Mds/2016 "नधा+रण वष+ /Assessment Year: 2011-12

For Respondent: 14.03.2017
Section 14A

…used the facts in issue, submissions made by the appellant and material on record. The appellant has pleaded that it has not earned any dividend income during the period under consideration and as a result of which following the ratio in Cheminvest Ltd v. CIT 378 ITR 33, no disallowance is called for in its case. In this context it would serve useful purpose to refer to the decision of the Hon’ble Delhi High Court in the case of Cheminvest Ltd v. CIT 378 ITR 33 order dated 2.9.2015 in ITA No.749/2014 wherein it has been held that disallowance u/s 14A envisages that there should be a actual receipt of income, whic…

ACIT 3(1)(1), Mumbai vs. Bharat Serums & Vaccines Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3577/MUM/2016[2011-12]Status: DisposedITAT Mumbai24 May 2017AY 2011-12

Bench: Shri G.S.Pannu & Shri Sandeep Gosainthe Acit-3(1)(1), Room No.607,6Th Floor, Aaykar Bhavan,M.K.Road, Mumbai - 40020 ...... Appellant Vs. M/S. Bharat Serums & Vaccines Ltd. 17Th Floor, Hoechst House, Nariman Point, Mumbai 400021 Pan:Aaacb 2431M .... Respondent

For Appellant: Ms. Beena Santosh/For Respondent: Shri P.P.Bhandari
Section 143(3)Section 14ASection 37(1)

…sessee pointed out that the order of the CIT(A) is quite justified, inasmuch as, during the year under consideration no exempt income was received and, therefore, in terms of the judgment of the Hon'ble Delhi High Court in the case of Cheminvest Ltd. Vs. CIT, 378 ITR 33(Del) no disallowance is maintainable. Apart therefrom, it is also sought to be explained that the CIT(A) in para-5.2.2 of his order has clearly noted that assessee had enough interest free funds in the shape of Share Capital and Reserves & Surplus to cover the impugned investment and therefore, in terms of the judgment of the Hon'ble Bombay High C…