CIT v. Car

335 ITR 94High Court2011#9000 most cited

What is CIT v. Car authority for?

Discounting charges paid by an assessee are not interest income under Section 2(28A) if they are not payable in respect of money borrowed or debt incurred. Such charges are not disallowable under Section 36(1)(iii) of the Income Tax Act.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Car · CIT v. Cargill Global Trading · Section 2(28A) · Section 36(1)(iii) · interest · discounting charges · money borrowed · debt incurred

Judgments citing CIT v. Car

Bps Mineral Exports Private Limited, Ahmedabad vs. The Income Tax Officer, Ward-1(1)(2), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 282/AHD/2024[2016-17]Status: DisposedITAT Ahmedabad01 Jan 2025AY 2016-17

Bench: Ms. Suchitra Kamble

For Appellant: Shri Tushar Hemani, Sr. Adv. &For Respondent: Shri C Dharani Nath, Sr. D.R
Section 250Section 26(1)(iii)Section 36(1)(iii)

…er submitted that the LC discounting charges will not fall within the ambit of interest and hence, Section 26(1)(iii) cannot be pressed into service. The Ld. A.R. relied upon the decision of Delhi High Court in case of CIT vs. Cargill Global Trading Pvt. Ltd. 335 ITR 94 (Delhi). 6. The Ld. D.R. submitted that the assessee has not furnished the necessary evidences to show that the huge loan and advances are given for purchase of material and there is no basis of such interest free advances when trade payable of Rs. 47,60,31,130/- is pending and interest bearing fund is utilized to pay the creditors. Thus, the Ld.…

M/S Kolte Patil Developers Ltd, Pune vs. DCIT, Circle-7, Pune

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

ITA 704/PUN/2024[2014-15]Status: DisposedITAT Pune12 Aug 2024AY 2014-15

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2014-15

For Appellant: Shri Nikhil S PathakFor Respondent: Shri Ramnath P Murkende
Section 143(2)Section 40Section 43C

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER Assessment Year : 2014-15 M/s. Kolte Patil Developers Ltd. DCIT, Circle 7, Pune (erstwhile Bellflower Properties Pvt. Ltd. merged with Kolte Patil Developers Ltd.) Vs. 2nd Floor, City Point, Dhole Patil Road, Pune – 411001 PAN: AAACK7310G (Appellant) (Respondent) Assessee by : Shri Nikhil S Pathak Department by : Shri Ramnath P Murkende Date of hearing : 06-08-2024 Date of pronouncement : 12-08-2024 O R D E R PER R. K. PANDA, VP : This appeal filed by the assessee is direct…

ACIT, Central Circle, Bikaner vs. Smt. Alpana Gupta, Sriganganagar

In the result, this appeal of the Revenue is dismissed

ITA 45/JODH/2020[2017-18]Status: DisposedITAT Jodhpur01 Feb 2021AY 2017-18

Bench: Shri Sandeep Gosain & Shri Manoj Kumar Aggarwala.C.I.T. Vs. Smt. Alpana Gupta, 4-A-15, Central Circle, Jawahar Nagar, Bikaner. Sriganganagar. Pan No. Aiepg 8893 R

Section 40

…2(28A). Accordingly, assessee is not required to deduct tax at source u/s 194A and consequently no disallowance u/s 40(a)(ia) can be made. Reliance in this connection is placed on the following decisions:- (i) CIT Vs. Cargill Global Trading Pvt. Ltd. (2011) 335 ITR 94 (Del.) (HC) (ii) PCIT Vs. M Sons Gems N. Jewellery Pvt. Ltd. 239 Taxman 530 (Del.) (HC) (iii) Omkara Impex and Merchandise Pvt. Ltd. Vs. ITO (2018) 53 CCH 0201 (Ahd.) (Trib.) 9 ITA 45/Jodh/2019 ACIT Vs Smt. Alpana Gupta. 12. We have heard the ld. Counsels of both the parties and have perused the material placed on record. We have also deliberated…

Siva Industries and Holdings Limited, Chennai vs. DCIT, Chennai

In the result, the assessee’s appeals in ITA No 1392/2016 for the

ITA 1973/CHNY/2016[2010-11]Status: HeardITAT Chennai21 Jan 2020AY 2010-11

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaraman

Section 250(6)

…Enterprises Ltd., Kolkatta Vs Department of Income tax — ITAT Kolkatta b) Director of Income tax, International Taxation-I, New Delhi Vs Cargil TSF PTE Ltd 212 Taxmann 16 (Delhi High Court)(2013) c) Commissioner of Income tax Vs Cargil Global Trading P Ltd., 335 ITR 94 (Delhi High Court) d) Board Circular No.22/68-IT(B) (F.No.12/23/68-IT(B) (F.No.12/23/68- IT(B)) dt.28- 3/13.5.1968 5.3.1 The Assessing Officer has observed that the transactions are between M/s Siva Ventures (Holding Co.,) to the appellant (subsidiary co.,) to M/s. Vantage Reality Pvt Ltd., (Subsidiary co), all group concerns under the same manage…

DCIT, Chennai vs. Siva Ventures Ltd., Chennai

In the result, the assessee’s appeals in ITA No 1392/2016 for the

ITA 1421/CHNY/2016[2008-2009]Status: DisposedITAT Chennai21 Jan 2020AY 2008-2009

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaraman

Section 250(6)

…Enterprises Ltd., Kolkatta Vs Department of Income tax — ITAT Kolkatta b) Director of Income tax, International Taxation-I, New Delhi Vs Cargil TSF PTE Ltd 212 Taxmann 16 (Delhi High Court)(2013) c) Commissioner of Income tax Vs Cargil Global Trading P Ltd., 335 ITR 94 (Delhi High Court) d) Board Circular No.22/68-IT(B) (F.No.12/23/68-IT(B) (F.No.12/23/68- IT(B)) dt.28- 3/13.5.1968 5.3.1 The Assessing Officer has observed that the transactions are between M/s Siva Ventures (Holding Co.,) to the appellant (subsidiary co.,) to M/s. Vantage Reality Pvt Ltd., (Subsidiary co), all group concerns under the same manage…

DCIT, Chennai vs. Siva Ventures Limited, Chennai

In the result, the assessee’s appeals in ITA No 1392/2016 for the

ITA 663/CHNY/2015[2010-11]Status: DisposedITAT Chennai21 Jan 2020AY 2010-11

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaraman

Section 250(6)

…Enterprises Ltd., Kolkatta Vs Department of Income tax — ITAT Kolkatta b) Director of Income tax, International Taxation-I, New Delhi Vs Cargil TSF PTE Ltd 212 Taxmann 16 (Delhi High Court)(2013) c) Commissioner of Income tax Vs Cargil Global Trading P Ltd., 335 ITR 94 (Delhi High Court) d) Board Circular No.22/68-IT(B) (F.No.12/23/68-IT(B) (F.No.12/23/68- IT(B)) dt.28- 3/13.5.1968 5.3.1 The Assessing Officer has observed that the transactions are between M/s Siva Ventures (Holding Co.,) to the appellant (subsidiary co.,) to M/s. Vantage Reality Pvt Ltd., (Subsidiary co), all group concerns under the same manage…

DCIT, Chennai vs. Siva Ventures Ltd., Chennai

In the result, the assessee’s appeals in ITA No 1392/2016 for the

ITA 1075/CHNY/2014[2009-10]Status: DisposedITAT Chennai21 Jan 2020AY 2009-10

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaraman

Section 250(6)

…Enterprises Ltd., Kolkatta Vs Department of Income tax — ITAT Kolkatta b) Director of Income tax, International Taxation-I, New Delhi Vs Cargil TSF PTE Ltd 212 Taxmann 16 (Delhi High Court)(2013) c) Commissioner of Income tax Vs Cargil Global Trading P Ltd., 335 ITR 94 (Delhi High Court) d) Board Circular No.22/68-IT(B) (F.No.12/23/68-IT(B) (F.No.12/23/68- IT(B)) dt.28- 3/13.5.1968 5.3.1 The Assessing Officer has observed that the transactions are between M/s Siva Ventures (Holding Co.,) to the appellant (subsidiary co.,) to M/s. Vantage Reality Pvt Ltd., (Subsidiary co), all group concerns under the same manage…

National Cooperative Development Corporation, New Delhi vs. DCIT, Circle- 17(2), New Delhi

In the result, appeal filed by assessee is allowed

ITA 4309/DEL/2017[2013-14]Status: DisposedITAT Delhi04 Dec 2019AY 2013-14

Bench: Shri H.S. Sidhu & Shri Anadee Nath Misshra

For Appellant: Shri K.V.S.R. Krishna, CAFor Respondent: Ms. Rakhi Vimal, Sr. DR
Section 143(3)Section 197ASection 40Section 40a

…ed or debt incurred (including a deposit, claim or other similar right or obligation)) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred ... "In the case of CIT v. Cargill Global Trading (I.) Co.. (P.) Ltd. [2011] 335 ITR 94/199 Taxman 320 (Delhi), Hon'ble Delhi High Court held as under:- "It is clear from the provisions of section 2(28A) that before any amount paid is construed as interest, it has to be established that the same is payable in respect of any money borrowed or debt incurred. In the instant case, on the aforesaid facts appearing On record, the Tribunal…

Cargill Financial Services Asia Pte Ltd.- in Liquidation, Singapore vs. ADIT, New Delhi

In the result, both the appeals, preferred by the assessee, stand allowed

ITA 5260/DEL/2011[2003-04]Status: DisposedITAT Delhi15 Mar 2016AY 2003-04

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

For Appellant: Shri Rohan Khare &For Respondent: Shri Anuj Arora CIT(DR)
Section 2

…s decision, we are of the view that no 'interference is called for. Hence, both the appeals are dismissed". 9. He further pointed out that the Tribunal’s order in the case of Cargil Global Trading (P) Ltd., has been upheld by the Hon’ble Delhi High Court in 335 ITR 94, wherein in para 5 to 7, Hon’ble High Court has observed as under: “5. We may notice at this stage that the respondent-assessee is in the export business. On the exports made by the assessee to its best buyers outside India, the assessee draws bills of exchange on those buyers located outside India. These bills of exchange are discounted by the a…

Cargill Tsf Asia Pte Ltd., Singapore vs. ADIT, New Delhi

In the result, both the appeals, preferred by the assessee, stand allowed

ITA 5006/DEL/2011[2008-09]Status: DisposedITAT Delhi15 Mar 2016AY 2008-09

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

For Appellant: Shri Rohan Khare &For Respondent: Shri Anuj Arora CIT(DR)
Section 2

…s decision, we are of the view that no 'interference is called for. Hence, both the appeals are dismissed". 9. He further pointed out that the Tribunal’s order in the case of Cargil Global Trading (P) Ltd., has been upheld by the Hon’ble Delhi High Court in 335 ITR 94, wherein in para 5 to 7, Hon’ble High Court has observed as under: “5. We may notice at this stage that the respondent-assessee is in the export business. On the exports made by the assessee to its best buyers outside India, the assessee draws bills of exchange on those buyers located outside India. These bills of exchange are discounted by the a…

Neo Sports Broadcast P.Ltd, Mumbai vs. CIT (TDS), Mumbai

In the result both appeals of the assessee are allowed

ITA 4011/MUM/2014[2011-12]Status: DisposedITAT Mumbai19 Feb 2016AY 2011-12
For Appellant: Dr. K.ShivramFor Respondent: Shri N.P.Singh
Section 194Section 194ASection 194CSection 201(1)Section 263

…orrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred ... " In the case of CIT v. Car gill Global Trading Co. (P.) Ltd. [2011J 335 ITR 94, Hon‟ble Delhi High Court held as under :- “It is clear from the provisions of section 2(28A) that before any amount paid is construed as interest, it has to be established that the same is payable in respect of any money borrowed or debt incurred. In the instant case, on the aforesaid facts appearing on record, the Tribunal rightly held that the…

Neo Sports Broadcast P.Ltd, Mumbai vs. CIT (TDS), Mumbai

In the result both appeals of the assessee are allowed

ITA 4010/MUM/2014[2010-11]Status: DisposedITAT Mumbai19 Feb 2016AY 2010-11
For Appellant: Dr. K.ShivramFor Respondent: Shri N.P.Singh
Section 194Section 194ASection 194CSection 201(1)Section 263

…orrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred ... " In the case of CIT v. Car gill Global Trading Co. (P.) Ltd. [2011J 335 ITR 94, Hon‟ble Delhi High Court held as under :- “It is clear from the provisions of section 2(28A) that before any amount paid is construed as interest, it has to be established that the same is payable in respect of any money borrowed or debt incurred. In the instant case, on the aforesaid facts appearing on record, the Tribunal rightly held that the…

CIT v. Car (335 ITR 94) — Cited in 12 Judgments | BharatTax