CIT v. Britannia Industries Ltd.

DCIT, CC-1(3), Kolkata vs. M/S Feegrade & Company Ltd., Kolkata

In the result the appeal by the revenue is dismissed

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ] Assessment Year : 2013-14

…tments were made by the own fund of the assessee and therefore no disallowance out of interest expenditure was justified. The contention of the assessee is also supported by the decision of the jurisdictional High Court in the case of Britannia Industries Ltd 280 ITR 525 (Cal). In view of the above, the addition of Rs.205685/ -made under rule 8D(2)(ii) is deleted. The assessee has contended before me that all investments have not yielded dividend income during the year and therefore no disallowance could lawfully be made under rule 8D(2)(iii) for all investments in view of the decision of the jurisdictional ITAT…

DCIT, CC-193, Kolkata vs. M/S Rungta Sons Private Ltd., Kolkata

In the result the appeal by the revenue is dismissed

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ] Assessment Year : 2013-14

…tments were made by the own fund of the assessee and therefore no disallowance out of interest expenditure was justified. The contention of the assessee is also supported by the decision of the jurisdictional High Court in the case of Britannia Industries Ltd 280 ITR 525 (Cal). In view of the above, the addition of Rs.152568/ -made under rule 8D(2)(ii) is deleted. The assessee has contended before me that all investments have not yielded dividend income during the year and therefore no disallowance could lawfully be made under rule 8D(2)(iii) for all investments in view of the decision of the jurisdictional ITAT…

M/S Rydak Syndicate Ltd., Kolkata vs. DCIT, Cir-4, Kolkata

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

Bench: Hon’Ble Shri M.Balaganesh, Am & Shri S.S.Viswanethra Ravi, Jm] I.T.A Nos. 301-302 & 304-305/Kol/2016 Assessment Years : 1993-94,2001-02,2011-12 &2012-13 M/S Rydak Syndicate Ltd. -Vs- Dcit, Spl.Rg-2, Kolkata [Pan: Aabcr 2656 P] (Appellant) (Respondent)

…assessee that the interest free funds were given out of the own funds available with the assessee company as per the ratio laid down in the following decisions :- a) Hon’ble Jurisdictional High Court in the case of CIT vs Britannia Industries Ltd reported in 280 ITR 525 (Cal) b) Hon’ble Bombay High Court in the case of CIT vs Reliance Utilities & Power Ltd reported in 313 ITR 340 (Bom) 6 ITA Nos.301-302 &304-305/Kol/2016 M/s Rydak Syndicate Ltd. A.Yrs. 93-94,01-02,11-12&12-13 In view of the aforesaid facts and respectfully following the ratio decidendi of the aforesaid decisions , we have no hesitation in delet…

M/S Rydak Syndicate Ltd., Kolkata vs. DCIT, Cir-4, Kolkata

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

Bench: Hon’Ble Shri M.Balaganesh, Am & Shri S.S.Viswanethra Ravi, Jm] I.T.A Nos. 301-302 & 304-305/Kol/2016 Assessment Years : 1993-94,2001-02,2011-12 &2012-13 M/S Rydak Syndicate Ltd. -Vs- Dcit, Spl.Rg-2, Kolkata [Pan: Aabcr 2656 P] (Appellant) (Respondent)

…assessee that the interest free funds were given out of the own funds available with the assessee company as per the ratio laid down in the following decisions :- a) Hon’ble Jurisdictional High Court in the case of CIT vs Britannia Industries Ltd reported in 280 ITR 525 (Cal) b) Hon’ble Bombay High Court in the case of CIT vs Reliance Utilities & Power Ltd reported in 313 ITR 340 (Bom) 6 ITA Nos.301-302 &304-305/Kol/2016 M/s Rydak Syndicate Ltd. A.Yrs. 93-94,01-02,11-12&12-13 In view of the aforesaid facts and respectfully following the ratio decidendi of the aforesaid decisions , we have no hesitation in delet…

M/S Rydak Syndicate Ltd., Kolkata vs. DCIT, Spl. RG-2, Kolkata

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

Bench: Hon’Ble Shri M.Balaganesh, Am & Shri S.S.Viswanethra Ravi, Jm] I.T.A Nos. 301-302 & 304-305/Kol/2016 Assessment Years : 1993-94,2001-02,2011-12 &2012-13 M/S Rydak Syndicate Ltd. -Vs- Dcit, Spl.Rg-2, Kolkata [Pan: Aabcr 2656 P] (Appellant) (Respondent)

…assessee that the interest free funds were given out of the own funds available with the assessee company as per the ratio laid down in the following decisions :- a) Hon’ble Jurisdictional High Court in the case of CIT vs Britannia Industries Ltd reported in 280 ITR 525 (Cal) b) Hon’ble Bombay High Court in the case of CIT vs Reliance Utilities & Power Ltd reported in 313 ITR 340 (Bom) 6 ITA Nos.301-302 &304-305/Kol/2016 M/s Rydak Syndicate Ltd. A.Yrs. 93-94,01-02,11-12&12-13 In view of the aforesaid facts and respectfully following the ratio decidendi of the aforesaid decisions , we have no hesitation in delet…

M/S Rydak Syndicate Ltd., Kolkata vs. DCIT, Spl. RG-2, Kolkata

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

Bench: Hon’Ble Shri M.Balaganesh, Am & Shri S.S.Viswanethra Ravi, Jm] I.T.A Nos. 301-302 & 304-305/Kol/2016 Assessment Years : 1993-94,2001-02,2011-12 &2012-13 M/S Rydak Syndicate Ltd. -Vs- Dcit, Spl.Rg-2, Kolkata [Pan: Aabcr 2656 P] (Appellant) (Respondent)

…assessee that the interest free funds were given out of the own funds available with the assessee company as per the ratio laid down in the following decisions :- a) Hon’ble Jurisdictional High Court in the case of CIT vs Britannia Industries Ltd reported in 280 ITR 525 (Cal) b) Hon’ble Bombay High Court in the case of CIT vs Reliance Utilities & Power Ltd reported in 313 ITR 340 (Bom) 6 ITA Nos.301-302 &304-305/Kol/2016 M/s Rydak Syndicate Ltd. A.Yrs. 93-94,01-02,11-12&12-13 In view of the aforesaid facts and respectfully following the ratio decidendi of the aforesaid decisions , we have no hesitation in delet…

D.C.I.T., Circle-4, Kolkata vs. M/S. Mega Resources Ltd., Kolkata

Bench: Shri Aby.T Varkey & Shri Waseem Ahmedassessment Year :2008-09

…आयकर अपील"य अधीकरण, "यायपीठ – “A” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “A” KOLKATA Before Shri Aby.T Varkey, Judicial Member and Shri Waseem Ahmed, Accountant Member Assessment Year :2008-09 DCIT, Circle-4(2), 4th V/s. M/s Mega Resources Ltd.10, Clive Row, 3rd Floor, Aayakar Bhawan, P-7, Chowringhee Floor, Kolkata-01 Square, Kolkata-69 [PAN No.AADCM 5397 E] .. अपीलाथ" /Appellant ""यथ"/Respondent C.O. No.103/Kol/2014 (a/o ITA No.1951/Kol/2014) Assessment Year:2008-09 V/s. DCIT, Circle-4(2), 4th M/s Mega Resources Ltd.10, Clive Row, 3rd Floor, Aayakar Bhawan, Floor, Kolkata-01 P-7, Chowring…

Ratan Saha, Kolkata vs. ITO, WD-22(4), Kolkata

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

Bench: Hon’Ble Shri Aby. T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 296/Kol/2016 Assessment Year : 2012-13 Ratan Saha -Vs- Ito, Ward-22(4), Kolkata [Pan: Amaps 3981 Q] (Appellant) (Respondent)

…had been used by the assessee for investment in Rupasi Cinema. Though we are in agreement with this argument of the Ld. AR to be in consonance with the decision of Hon’ble Jurisdictional High Court in the case of CIT vs. Britannia Industrials Ltd. reported in 280 ITR 525 (Cal), we find that from the perusal of the balance sheet of the assessee as on 31.03.2012, that the assessee is vested with own funds only to the extent of Rs. 1,14,43,625/-. The assessee has got interest bearing loans to the tune of Rs. 1,94,28,964/-. The total investment made in Rupasi Cinema as on 31.03.2012 is 1,41,86,935/-. Hence, from the…

M/S Snowtex Investment Ltd., Kolkata vs. DCIT, Circle - 12, Kolkata

In the result, appeal of the revenue is dismissed and that of the assessee is allowed

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…ank account the ratio of the judgment in Woolcombers of India Ltd. (supra) and P.RM. S. Ramanathan Chettiar (supra) squarely applies to the case. Further, we rely on the decision of Hon’ble jurisdictional High Court in CIT Vs. Britannia Industries Ltd. (2006) 280 ITR 525 (Cal), we are inclined to allow the appeal of the assessee and direct the deletion of the entire disallowance of interest payment made by AO and partially upheld by Ld. CIT(A). So, we direct deletion of addition. 9. In the result, appeal of the revenue is dismissed and that of the assessee is allowed. Order is pronounced in the open court on 15th…

DCIT, CC-Xxx, Kolkata vs. M/S Snowtex Investment Ltd., Kolkata

In the result, appeal of the revenue is dismissed and that of the assessee is allowed

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…ank account the ratio of the judgment in Woolcombers of India Ltd. (supra) and P.RM. S. Ramanathan Chettiar (supra) squarely applies to the case. Further, we rely on the decision of Hon’ble jurisdictional High Court in CIT Vs. Britannia Industries Ltd. (2006) 280 ITR 525 (Cal), we are inclined to allow the appeal of the assessee and direct the deletion of the entire disallowance of interest payment made by AO and partially upheld by Ld. CIT(A). So, we direct deletion of addition. 9. In the result, appeal of the revenue is dismissed and that of the assessee is allowed. Order is pronounced in the open court on 15th…

DCIT, CC-Xix, Kolkata vs. M/S International Conveyors Pvt. Ltd., Kolkata

In the result, appeals filed by the revenue in IT(SS)A No

Bench: Dr. A.L.Saini, Am & Shri K. Narasimha Chary, Jm It(Ss)A No.131/Kol/2014 ("नधा"रण वष" / Assessment Year :2008-2009) Dcit, Cc-Xix, Kolkata Vs. M/S.International Conveyors Pvt.Ltd.,10,Middletion Row, Kolkata-700071 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaci 6161 K .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Dcit, Cc-Xix, Kolkata Vs. M/S International Conveyors Pvt.Ltd.,10,Middletion Row, Kolkata-700071 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaci 6161 K .. (अपीलाथ" /Appellant) (""यथ" / Respondent) It(Ss)A No.90/Kol/2014 ("नधा"रण वष" / Assessment Year :2009-2010) Dcit, Cc-Xix, Kolkata Vs. M/S International Conveyors Pvt.Ltd.,10,Middletion Row, Kolkata-700071 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaci 6161 K (अपीलाथ" /Appellant) .. (""यथ" / Respondent) It(Ss)A No.91/Kol/2014 ("नधा"रण वष" / Assessment Year :2010-2011) Dcit, Cc-Xix, Kolkata Vs. M/S International Conveyors Pvt.Ltd.,10,Middletion Row, Kolkata-700071 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaci 6161 K .. (अपीलाथ" /Appellant) (""यथ" / Respondent) It(Ss)A No.92/Kol/2014 ("नधा"रण वष" / Assessment Year :2011-2012) Dcit, Cc-Xix, Kolkata Vs. M/S International Conveyors Pvt.Ltd.,10,Middletion Row, Kolkata-700071 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaci 6161 K .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

…hen it could be presumed that the investments were made from own funds and not from borrowed funds: Munjal Sales Corpn. v. CIT [2008] 298 ITR 298 (SC). CIT v. Reliance Utilities & Power Ltd. (2009) 178 Taxman 135 (Bom) CIT v. Britannia Industries Ltd. (2006) 280 ITR 525 (Cal) CIT v. Gujrat Narmada Valley Fertilizers Co. Ltd. [2014] 42 taxmann.com 270 (Gujrat) Even otherwise the issue is well covered by the decision of Hon'ble Supreme Court in the case of S.A. Builders Ltd. v. CIT [2007] 288 ITR 158 Taxman 74 (SC) and Hon'ble Gujrat High Court in the case of CIT vs. Gujrat Power Corporation Ltd. reported in [201…

Sri Girish Ghelani, Kolkata vs. ITO, WD-34(4), Kolkata

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

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

…e proprietor’s capital account was Rs.36,85,401/- and whereas the interest free advances given to the relatives were Rs.38,82,990/-. He placed reliance on the decision of Hon’ble Calcutta High Court in the case of CIT Vs. Britannia Industries Ltd. reported in 280 ITR 525 (Cal) and also on the decision of Hon’ble Supreme Court in the case of Munjal Sales Corporation Vs. CIT reported in 298 ITR 298 wherein it was held that in the event of own funds and borrowed funds being mixed up the presumption has to be in favour of the assessee that the interest free funds were given out of own funds of the assessee provided t…

M/S. Hooghly Mills Projects Ltd., Kolkata vs. DCIT, Central Circle - VII, Kolkata

In the result, assessee’s appeal stands allowed partly for statistical purpose

Bench: Shri Waseem Ahmed & Shri K.Narsimha Charyassessment Years:2006-07

…re, we are not inclined to uphold the order of ld. CIT under section 263 of the Act holding the order of the AO as erroneous in so far as prejudicial to the interest of revenue. In this connection, we also rely in the case of CIT Vs. Britannia Industries Ltd. 280 ITR 525 where the Hon’ble Jurisdictional High Court has held as under : “Business expenditure—Interest on borrowed capital—Interest-free advances to others—Advance was made to firm MCAP constituted by relatives of directors of the assessee-company—In view of definition of 'relative’ in s. 2(41), MCAP is not a firm of relatives—Further, concurrent finding…

D.C.I.T Cir - 4, Kolkata vs. M/S Tata Tea Limited, Kolkata

In the result, the appeals in ITA No

Bench: Shri M.Balaganesh & Shri S.S. Viswanethra Ravi

…ntly covered by the non-interest -bearing funds available with the assessee/ then the question of disallowance of interest on borrowed funds does not arise: • Woolcombers of India Limited - vs. - CIT 134 ITR 219 (Cal) • CIT Vs. 8ritannia Industries Ltd [2006} 280 ITR 525 (Cal) • CIT Vs. ITC Ltd [2008} 299 ITR (AT) 341 (Kolkata) (SB) • CIT Vs. Rockman Cycle Industries Ltd [2009} 176 Taxman 21(P & H) • CIT Vs. Prem Heavy Engineering Works Pvt.Ltd [2006} 285 ITR 554 (All) 2) Without prejudice to the above, it is humbly submitted that the loans as existed in FY 1989-90 to FY 1993-94 being the FYs in which such advanc…

ITO, Ward - 1(3), Kolkata vs. M/S. Atn International Limited, Kolkata

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

Bench: Shri M. Balaganesh, Am & Shri S.S.Viswanethra Ravi, Jm]

…its kitty which is much less than the borrowed funds and hence there is no question of disallowing the interest. He also placed reliance on the decision of the Hon’ble Jurisdictional High Court in the case of CIT vs Britannia Industries Ltd reported in (2006) 280 ITR 525 (Cal) in support of his contentions. 5.3. We have heard the rival submissions. It is not in dispute that the entire details of amount of interest free funds paid to three companies were duly filed before the ld AO by the assessee. The ld CITA had given a categorical finding that no part of the borrowed ATN International Ltd, AY 2004-05 funds wer…

DCIT, Circle - 8, Kolkata vs. M/S. Tata Steel Processing & Distribution Limited, Kolkata

In the result, both appeals of Revenue are dismissed and that of assessee’s appeal is partly allowed for statistical purpose and CO of assessee is dismissed as infructuous

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Year:2006-07

…authorities have not brought anything on record to prove that the borrowed funds have been invested in the investment made by the assessee. In this connection we rely in the judgment of Hon’ble Calcutta High Court in the case of Britannia Industries Limited. 280 ITR 525 where it was held as under : ITA Nos.1124/Kol/2010 & C.O.No.78/Kol/2010 A.Y. 2006-07 DCIT. Cir-8, Kol. vs. M/s Tata Ryerson Ltd. ITA Nos.379&303/Kol/2012 A.Y.2008-09 Page 18 “Out of the interest-free advance of Rs. 165 lakhs, MCAP supplied cashew nut kernels to the assessee-company between the period December, 1983 and June, 1984 amounting to Rs…

Tata Steel Processing and Distribution Ltd., Kolkata vs. DCIT, Circle - 8, Kolkata

In the result, both appeals of Revenue are dismissed and that of assessee’s appeal is partly allowed for statistical purpose and CO of assessee is dismissed as infructuous

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Year:2006-07

…authorities have not brought anything on record to prove that the borrowed funds have been invested in the investment made by the assessee. In this connection we rely in the judgment of Hon’ble Calcutta High Court in the case of Britannia Industries Limited. 280 ITR 525 where it was held as under : ITA Nos.1124/Kol/2010 & C.O.No.78/Kol/2010 A.Y. 2006-07 DCIT. Cir-8, Kol. vs. M/s Tata Ryerson Ltd. ITA Nos.379&303/Kol/2012 A.Y.2008-09 Page 18 “Out of the interest-free advance of Rs. 165 lakhs, MCAP supplied cashew nut kernels to the assessee-company between the period December, 1983 and June, 1984 amounting to Rs…

DCIT, Circle - 8, Kolkata vs. M/S. Tata Ryerson Limited, Kolkata

In the result, both appeals of Revenue are dismissed and that of assessee’s appeal is partly allowed for statistical purpose and CO of assessee is dismissed as infructuous

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Year:2006-07

…authorities have not brought anything on record to prove that the borrowed funds have been invested in the investment made by the assessee. In this connection we rely in the judgment of Hon’ble Calcutta High Court in the case of Britannia Industries Limited. 280 ITR 525 where it was held as under : ITA Nos.1124/Kol/2010 & C.O.No.78/Kol/2010 A.Y. 2006-07 DCIT. Cir-8, Kol. vs. M/s Tata Ryerson Ltd. ITA Nos.379&303/Kol/2012 A.Y.2008-09 Page 18 “Out of the interest-free advance of Rs. 165 lakhs, MCAP supplied cashew nut kernels to the assessee-company between the period December, 1983 and June, 1984 amounting to Rs…