What is Cheminvest Ltd. v. ITO authority for?

Disallowance of expenses under Section 14A of the Income Tax Act can be made even when no exempt income has been earned or received by the assessee.

How many judgments cite Cheminvest Ltd. v. ITO?

338 judgments on BharatTax cite Cheminvest Ltd. v. ITO (121 ITD 318), spanning 2015 to 2026.

Which sections of the Income Tax Act does Cheminvest Ltd. v. ITO come up under?

It is most often cited in judgments turning on Section 14A, Section 143(3), Section 37(1), Section 115JB, Section 1962, Section 143(2).

Cheminvest Ltd. v. ITO (121 ITD 318)

Shruti Mohta, Kolkata vs. DCIT, Circle - 36, Kolkata

ITA 2417/KOL/2017[2013-14]Status: DisposedITAT Kolkata31 Jan 2019AY 2013-14

Bench: Shri J. Sudhakar Reddy & Shri S.S. Godaraassessment Year:2013-14

Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “A” KOLKATA Before Shri J. Sudhakar Reddy, Accountant Member and Shri S.S. Godara, Judicial Member Assessment Year:2013-14 Shruti Mohta DCIT, Circle-36 बनाम Calcutta Stock Exchange Aayaka Bhawan, / Building, Room No.4C, 2nd Poorva, 8th Floor, 110, V/s. Floor, 7, Lyons Range, Shanti Pally,Kolkata- Kolkata-700001 107 [PAN No.AJHPM 7128 H] .. अपीलाथ" /Appellant ""यथ" /Respondent ITA No.2418 & 2469/Kol/2017 Assessment Year:2014-15 Shruti Mohta ACIT, Circle-36 बनाम Calcutta Stock Exchange Aayaka Bhawan, / Building, Room No.4C, 2nd V/s. Poorva, 8th Floor, 110, Floor,…

Rasna Pvt. Ltd., Ahmedabad vs. The Dy. CIT., Circle-3(1)(2), Ahmedabad

In the result, appeal ITA 2334/Ahd/2015 filed by assessee is partly allowed

ITA 2334/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad30 Jan 2019AY 2010-11

For Appellant: Shri P.F. Jain, A.RFor Respondent: Shri Lalit P. Jain, Sr. D.R

Section 143(3)Section 36Section 41(1)

…in the case of AC IT vs Transformers & Rectifiers (India) Ltd. ITA No. 3090/Ahd/2011 has .held that the onus is on the assessee to establish that there is no nexus between the exempt income and the interest expenditure incurred. In the case of Cheminvest Ltd [121 ITD 318 2009(DEL)]Delhi Special Bench held that Sec. 14A disallowance had to be made in respect of interest on loans, which were utilized for investment in shares, even though no dividend income was earned on those shares during the relevant year. Whereas Hon'ble ITAT Chennai in the case of Siva Industries & Holding Ltd [TS-438-ITAT-2011(CHNY) and TS-317…

Assistant Commissioner of Income Tax Central Circle-2(4), Bangalore vs. Ms Allinace Infrastructure Projects Pvt Ltd, Bangalore

In the result, appeal of the Revene is dismissed

ITA 2402/BANG/2018[2012-13]Status: DisposedITAT Bangalore19 Dec 2018AY 2012-13

Bench: Shri. A. K. Garodia

For Appellant: Shri. Suman Kumar, CAFor Respondent: Smt. Sri Nandini Das, Addl. CIT

Section 10Section 14A

…dend income had been earned by the Assessee in the relevant AY? The Court referred to the decision of this Court in Maxopp Investment Ltd's. case (supra) and to the decision of the Special Bench of the ITAT in this very case i.e. Cheminvest Ltd. v. ITO [2009] 121 ITD 318. The Court also referred to three decisions of different High Courts which have decided the issue against Revenue. The first was the decision in CIT v. Lakhani Marketing Inc . [2014] 226 Taxman 45/49 taxmann.com 257 of the High Court of Punjab and Haryana which in turn referred to two earlier decisions of the same Court in CIT v. Hero Cycles Ltd.…

DCIT, Circle-6(1), Kolkata vs. M/S Integrated Coal Mining Ltd., Kolkata

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

ITA 1031/KOL/2017[2012-13]Status: DisposedITAT Kolkata07 Dec 2018AY 2012-13

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Dcit, Circle 6(1), Kolkata Vs. M/S. Integrated Coal Mining Ltd. P-7, Chowringhee Square, 6, Church Lane, Kolkata – 700 069. Kolkata – 700 001. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaci 5584 L (अपीलाथ" /Appellant) (""यथ" / Respondent) ..

For Appellant: Shri D. Mukherjee & A. Goenka, Ld. ARFor Respondent: Shri R. Chowdhury, Addl. CIT

Section 115JSection 14ASection 43Section 43B

…& Haryana High Court 6 M/s. Integrated Coal Mining Ltd. Assessment Year: 2012-13  CIT vs. Delite Enterprises in I.T.A. No. 110 of 2009 rendered by Bombay High Court The decision of Special Bench of Tribunal in the case of Cheminvest Ltd. vs. CIT reported in 121 ITD 318 had held that disallowance u/s 14A could be made even in an year in which no exempt income was earned or received by the assessee. But this decision has been overruled by Bangalore Tribunal, Gujrat High court and Allahabad High Court as stated supra. Moreover we also find that the special bench decision in Cheminvest Ltd. vs. CIT has been overrul…

Itc Limited, Kolkata vs. ACIT, RG-8, Kolkata

Appeal is dismissed

ITA 685/KOL/2014[2009-2010]Status: DisposedITAT Kolkata28 Nov 2018AY 2009-2010

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ]

For Appellant: Shri Md. Usman, CIT DRFor Respondent: Shri J.P. Khaitan, Senior Counsel

Section 143(3)

…and the income not forming part of total income then disallowance would be justified even where there is no receipt of exempted income u/s l0 in the year under consideration in view of the decision of Special Bench in the case of Cheminvest Ltd. v. ITO [2009] 121 ITD 318 (Delhi). 7.3.5 The basic principle of taxation is to tax the net income. On the same analogy, the exemption is also to be allowed on net basis i.e. gross receipts minus related expenses. Therefore, if any expenditure is directly related to exempted income, it cannot be allowed to be set off against taxable profit. On the same analogy, in our opin…

DCIT, Cir-8, Kolkata vs. M/S Itc Limited, Kolkata

Appeal is dismissed

ITA 1267/KOL/2014[2009-2010]Status: DisposedITAT Kolkata28 Nov 2018AY 2009-2010

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ]

For Appellant: Shri Md. Usman, CIT DRFor Respondent: Shri J.P. Khaitan, Senior Counsel

Section 143(3)

…and the income not forming part of total income then disallowance would be justified even where there is no receipt of exempted income u/s l0 in the year under consideration in view of the decision of Special Bench in the case of Cheminvest Ltd. v. ITO [2009] 121 ITD 318 (Delhi). 7.3.5 The basic principle of taxation is to tax the net income. On the same analogy, the exemption is also to be allowed on net basis i.e. gross receipts minus related expenses. Therefore, if any expenditure is directly related to exempted income, it cannot be allowed to be set off against taxable profit. On the same analogy, in our opin…

Asst CIT Cir 6(1)(2), Mumbai vs. Ask Investment Managers P.Ltd, Mumbai

The appeal of the Revenue is allowed for statistical

ITA 534/MUM/2017[2012-13]Status: DisposedITAT Mumbai09 Oct 2018AY 2012-13

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year 2012-13 Acit M/S Ask Investment Circle-6(1)(2), Managers Pvt. Ltd. बनाम/ R. No.536, 5Th Floor, 1St Floor Bandbox House, Vs. Aayakar Bhavan, Dr. Ab Road, Worli, M. K. Road, Churchgate, Mumbai-400030 Mumbai-400020 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aafca2302P Shri Nitin Waghmode-Dr राज"व क" ओर से / Revenue By "नधा"रती क" ओर से / Assessee By Shri J.D. Mistri Sr. Advocate

Section 115JSection 14A

…see, while working out the disallowance, had taken only the value of investment yielding tax exempt income instead of total value of investments. . However ld. CIT(A), in view of the decision of Special Bench of the ITAT in the case of Cheminvest Ltd. Vs. ITO 121 ITD 318 (Del)(SB), did not agree with this contention of assessee and required it to work out disallowance by taking the value of investment as per books of a/c, which was worked out at Rs. 91,95,698/- as under: Opening Balance of investment = Rs. 1,81,95,07,318/- Closing balance of investment = Rs. 1,85,87,71,986/- Average value of investment = Rs. 1,83…

ACIT 13(2)(1), Mumbai vs. Sodexo Food Solutions India P. Ltd, Mumbai

Appeal stand partly allowed for statistical purposes

ITA 5781/MUM/2016[2011-12]Status: DisposedITAT Mumbai03 Oct 2018AY 2011-12

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No.5781/Mum/2016 (िनधा"रण वष" / Assessment Year: 2011-12) Assistant Commissioner Of Sodexo Food Solutions India Income Tax-13(2)(1) Private Limited बनाम/ 1Stfloor, Gemstar Commercial Complex Room No.146, 1St Floor Vs. Ramchandra Lane Extension Aaykar Bhavan, M.K.Road Kanchpada, Malad(W) Mumbai -400 020 Mumbai-400 064 "थायी लेखा सं./Pan : Aaacr-2547-Q (अपीलाथ"/Appellant) (""थ" / Respondent) : & आयकर अपील सं./I.T.A. No.5707/Mum/2016 (िनधा"रणवष" / Assessment Year: 2011-12) Sodexo Food Solutions India Assistant Commissioner Of Private Limited Income Tax-13(2)(1) बनाम/ 1Stfloor, Gemstar Commercial Complex Room No.146, 1St Floor Ramchandra Lane Extension Vs. Aaykar Bhavan, M.K.Road Kanchpada, Malad(W) Mumbai -400 020 Mumbai-400 064 "थायी लेखा सं./Pan : Aaacr-2547-Q (अपीलाथ"/Appellant) (""थ" / Respondent) :

For Appellant: Nimesh Vora, Ld. ARFor Respondent: Rignesh Das, Ld. JCIT-DR

Section 143(3)Section 2(24)(x)Section 36(1)(va)Section 37(1)

…empt income was earned by the assessee against the same during the impugned AY and therefore, no disallowance was called for. However, not convinced, Ld. AO, inter-alia, replying upon judgment of Special Bench Delhi Tribunal rendered in Cheminvest Ltd. Vs ITO 121 ITD 318 computed aggregate disallowance Assessment Year-2011-12 of Rs.5.41 Lacs u/s 14A read with Rule 8D(2) which comprised-off of interest disallowance of Rs.2.99 Lacs u/r 8D(2)(ii) and expense disallowance of Rs.2.41 Lacs u/r 8D(2)(iii). 5.2 Aggrieved, the assessee contested the same with success before Ld. CIT(A) wherein the addition was deleted by o…

Sodexo Food Solutions India P .Ltd, Mumbai vs. Addl CIT RG 8(3), Mumbai

Appeal stand partly allowed for statistical purposes

ITA 5707/MUM/2016[2011-12]Status: DisposedITAT Mumbai03 Oct 2018AY 2011-12

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No.5781/Mum/2016 (िनधा"रण वष" / Assessment Year: 2011-12) Assistant Commissioner Of Sodexo Food Solutions India Income Tax-13(2)(1) Private Limited बनाम/ 1Stfloor, Gemstar Commercial Complex Room No.146, 1St Floor Vs. Ramchandra Lane Extension Aaykar Bhavan, M.K.Road Kanchpada, Malad(W) Mumbai -400 020 Mumbai-400 064 "थायी लेखा सं./Pan : Aaacr-2547-Q (अपीलाथ"/Appellant) (""थ" / Respondent) : & आयकर अपील सं./I.T.A. No.5707/Mum/2016 (िनधा"रणवष" / Assessment Year: 2011-12) Sodexo Food Solutions India Assistant Commissioner Of Private Limited Income Tax-13(2)(1) बनाम/ 1Stfloor, Gemstar Commercial Complex Room No.146, 1St Floor Ramchandra Lane Extension Vs. Aaykar Bhavan, M.K.Road Kanchpada, Malad(W) Mumbai -400 020 Mumbai-400 064 "थायी लेखा सं./Pan : Aaacr-2547-Q (अपीलाथ"/Appellant) (""थ" / Respondent) :

For Appellant: Nimesh Vora, Ld. ARFor Respondent: Rignesh Das, Ld. JCIT-DR

Section 143(3)Section 2(24)(x)Section 36(1)(va)Section 37(1)

…empt income was earned by the assessee against the same during the impugned AY and therefore, no disallowance was called for. However, not convinced, Ld. AO, inter-alia, replying upon judgment of Special Bench Delhi Tribunal rendered in Cheminvest Ltd. Vs ITO 121 ITD 318 computed aggregate disallowance Assessment Year-2011-12 of Rs.5.41 Lacs u/s 14A read with Rule 8D(2) which comprised-off of interest disallowance of Rs.2.99 Lacs u/r 8D(2)(ii) and expense disallowance of Rs.2.41 Lacs u/r 8D(2)(iii). 5.2 Aggrieved, the assessee contested the same with success before Ld. CIT(A) wherein the addition was deleted by o…

DCIT Cent. Cir. 7(1), Mumbai vs. Rare Enterprises, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 5208/MUM/2016[2013-14]Status: DisposedITAT Mumbai03 Oct 2018AY 2013-14

Bench: Shri B.R. Baskaran & Shri Pawan Singh

For Appellant: Ms. S. PadmajaFor Respondent: Shri S.C. Tiwari

Section 14Section 14ASection 2

…les, arguments and judicial positions and hence, in view of the said jurisdictional High Court's judgement, the applicability of various other decisions mentioned in para 4.1 supra relied upon by the assessee is distinguished. h) In the case of Cheminvest Ltd 317 ITR 86, the Delhi high court decided that disallowance under section 14A, can be made in a year in which no exempt income has been earned or received by the assessee. Provisions of section 14A are applicable with respect of dividend income earned by the assessee engaged in the business of dealing in shares and securities, on the shares held as stock in t…

DCIT Cent. Cir. 7(1), Mumbai vs. Rare Enterprises, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 5207/MUM/2016[2012-13]Status: DisposedITAT Mumbai03 Oct 2018AY 2012-13

Bench: Shri B.R. Baskaran & Shri Pawan Singh

For Appellant: Ms. S. PadmajaFor Respondent: Shri S.C. Tiwari

Section 14Section 14ASection 2

…les, arguments and judicial positions and hence, in view of the said jurisdictional High Court's judgement, the applicability of various other decisions mentioned in para 4.1 supra relied upon by the assessee is distinguished. h) In the case of Cheminvest Ltd 317 ITR 86, the Delhi high court decided that disallowance under section 14A, can be made in a year in which no exempt income has been earned or received by the assessee. Provisions of section 14A are applicable with respect of dividend income earned by the assessee engaged in the business of dealing in shares and securities, on the shares held as stock in t…