CIT v. Gujarat State Fertilizers & Chemicals Ltd.

358 ITR 323High Court2013#1424 most cited

What is CIT v. Gujarat State Fertilizers & Chemicals Ltd. authority for?

No disallowance under section 14A for interest expenditure is permissible when the assessee possesses adequate own funds to make investments, provided the Assessing Officer does not establish a direct nexus between borrowed funds and investments yielding tax-exempt income. This principle can also extend to administrative expenses.

80

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2012 to 2026.

Also referred to as

CIT v. Gujarat State Fertilizers & Chemicals Ltd. · Section 14A disallowance · interest expenditure · administrative expenditure · own funds · surplus funds · tax-exempt income · borrowed funds nexus · Section 1961 · disallowance of expenses

Also reported as

36 Taxmann.com 230217 Taxmann 229

Sections most often in play

Section 143(3)Section 144BSection 14ASection 1961Section 250

Issues it is cited on

section 14bsection 10(33)section 14(2)goodwill arising on amalgamationsection 40a(7)section 9(1)(ii)wholly and exclusively for businesssection 28(iv)section 43b(b)minimum alternate taxgoing concernsection 43(6)(c)

Judgments citing CIT v. Gujarat State Fertilizers & Chemicals Ltd.

The Dy. Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad vs. M/S. Harsha Engineers Ltd., Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 1853/AHD/2016[2013-14]Status: DisposedITAT Ahmedabad12 Oct 2018AY 2013-14

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediaआयकर अपील सं./ Ita No. 1853/Ahd/2016 "नधा"रण वष"/Assessment Year: 2013-14 Dcit,Cir.2(1)(1) M/S.Harsha Engineers Ltd. Ahmedabad. Vs Sarkhej Bhavla Road Changodar, Ahmedabad 382 213 Pan : Aaaach 4828 C अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Revenue By : Shri S.K. Dev, Sr.Dr Assessee By : Shri Tushar H. Hemani, Ar

For Appellant: Shri Tushar H. Hemani, ARFor Respondent: Shri S.K. Dev, Sr.DR
Section 115JSection 143(2)Section 14A

…estion as under: “7. So far as issue Nos. (iii) and (iv) are concerned, the learned counsel for the assessee has relied on the decision of this court in the case of Commissioner of Income-tax-I v. Gujarat State Fertilizers & Chemicals Ltd., reported in (2013) 358 ITR 323 (Gujarat) where this court has held in paragraph Nos. 6 to 6.5 this court has observed as under: “6. So far as the fourth question is concerned, it pertains to addition of Rs.1,14,43,040/- under Section 115JB of the Act being the expenditure estimated on earning of dividend income under Section 14A of the Act. 6.1 The Assessing Officer on referr…

The Dy. Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad vs. M/S. Ausom Enterprise Ltd., Ahmedabad

In the result, the appeals of the Revenue are partly allowed

ITA 857/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad05 Oct 2018AY 2013-14

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./ Ita No. 1519 & 1520/Ahd/2016 "नधा"रण वष"/Assessment Year: 2010-11 & 2012-13 & आयकर अपील सं./ Ita No. 857/Ahd/2017 "नधा"रण वष"/Assessment Year: 2013-14

For Appellant: Shri M.K. Patel, ARFor Respondent: Shri S.K. Dev, Sr.DR
Section 10ASection 143(2)

…stion as under: “7. So far as issue Nos. (iii) and (iv) are concerned, the learned counsel for the assessee has relied on the decision of this court in the case of Commissioner of Income-tax-I v. Gujarat State Fertilizers & Chemicals Ltd., reported in (2013) 358 ITR 323 (Gujarat) where this court has held in paragraph Nos. 6 to 6.5 this court has observed as under: “6. So far as the fourth question is concerned, it pertains to addition of Rs.1,14,43,040/- under Section 115JB of the Act being the expenditure estimated on earning of dividend income under ITA No.1519/Ahd/2016 and 2 Others DCIT Vs. Ausom Enterprise…

Assistant Commissioner of Income Tax, Circle-2, Jaipur vs. M/S. Om Metal Infraproject Limited, Jaipur

In the result, appeal of the revenue is dismissed

ITA 759/JPR/2018[2014-15]Status: DisposedITAT Jaipur15 Aug 2018AY 2014-15

Bench: The Hon’Ble Apex Court In Cit V/S M/S Sbbj In Slp (C) No. 16249/2014? (Ii) Whether On The Facts & Circumstances Of The Case & In Law The Ld. Cit(A) Was Justified In Deleting The Disallowance Of Rs. 44,02,000/- U/S 14A R.W.R 8D Of The I.T. Act When The Assessee Has

For Appellant: Shri B.V. Maheshwari (CA)For Respondent: Shri Varinder Mehta (CIT-DR) fu/kZkfjrh dh vksj ls@
Section 115JSection 14A

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 759/JP/2018 fu/kZkj.k o"kZ@Assessment Year :2014-15 cuke Assistant Commissioner M/s Om Metal Infraproject Ltd., Vs. of Income Tax, Om Tower, M.I. Road, Church Circle-2, Jaipur. Road, Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAACO 8245 J vihykFkhZ@Appellant izR;FkhZ@Respondent jktLo dh vksj ls@ Revenue by : Shri Varinder Mehta (CIT-DR) fu/kZkfjrh dh…

Gujarat Fluorochemicals Limited, Vadodara vs. The Deputy Commissioner of Income Tax, Circle-1(1)(1), Vadodara

In the result, both appeals of the assessee are partly allowed

ITA 805/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad03 Aug 2018AY 2012-13

Bench: Shri Rajpal Yadav & Shri Amarjit Singhआयकर अपील सं./ Ita No.805/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 & Asst.Year : 2013-2014

For Appellant: Shri S.N. Soparkar and Shri Parin Shah, ARFor Respondent: Shri O.P. Vaishnav, CIT-DR
Section 115JSection 143(2)Section 143(3)Section 14A

…stion as under: “7. So far as issue Nos. (iii) and (iv) are concerned, the learned counsel for the assessee has relied on the decision of this court in the case of Commissioner of Income-tax-I v. Gujarat State Fertilizers & Chemicals Ltd., reported in (2013) 358 ITR 323 (Gujarat) where this court has held in paragraph Nos. 6 to 6.5 this court has observed as under: “6. So far as the fourth question is concerned, it pertains to addition of Rs.1,14,43,040/- under Section 115JB of the Act being the expenditure estimated on earning of dividend income under Section 14A of the Act. 6.1 The Assessing Officer on referr…

Gujarat Flurochemicals Limited., Vadodara vs. The ACIT, Circle-1(1)(1), Vadodara

In the result, both appeals of the assessee are partly allowed

ITA 2744/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad03 Aug 2018AY 2013-14

Bench: Shri Rajpal Yadav & Shri Amarjit Singhआयकर अपील सं./ Ita No.805/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 & Asst.Year : 2013-2014

For Appellant: Shri S.N. Soparkar and Shri Parin Shah, ARFor Respondent: Shri O.P. Vaishnav, CIT-DR
Section 115JSection 143(2)Section 143(3)Section 14A

…stion as under: “7. So far as issue Nos. (iii) and (iv) are concerned, the learned counsel for the assessee has relied on the decision of this court in the case of Commissioner of Income-tax-I v. Gujarat State Fertilizers & Chemicals Ltd., reported in (2013) 358 ITR 323 (Gujarat) where this court has held in paragraph Nos. 6 to 6.5 this court has observed as under: “6. So far as the fourth question is concerned, it pertains to addition of Rs.1,14,43,040/- under Section 115JB of the Act being the expenditure estimated on earning of dividend income under Section 14A of the Act. 6.1 The Assessing Officer on referr…

M/S Alp Overseas Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 6140/DEL/2015[2006-07]Status: DisposedITAT Delhi30 Jul 2018AY 2006-07

Bench: : Shri Bhavnesh Saini & Shri L.P. Sahu

Section 143(3)Section 147Section 271(1)(c)

…In the Income-Tax Appellate Tribunal, Delhi Bench ‘F’, New Delhi Before : Shri Bhavnesh Saini, Judicial Member And Shri L.P. Sahu, Accountant Member ITA No. 6140/Del./2015 Assessment Year: 2006-07 ALP Overseas Pvt. Ltd., 25/31, vs. DCIT, Circle 1(1), East Patel Nagar, New Delhi. New Delhi. PAN : AAACG6366L (Appellant) (Respondent) Revenue by Shri Baljit Singh, CA Assessee by Shri S.R. Senapati, Sr DR Date of Hearing 20.07.2018 Date of Pronouncement 30.07.2018 ORDER Per L.P. Sahu, A.M.: This is an appeal filed by the assessee against the order of ld. CIT(A)-I, New Delhi dated 07.09.2015 for the assessment…

Aadinath Ornaments Private Limited, Ahmedabad vs. The ITO, Ward-1(1)(1), Ahmedabad

In the result, appeal of the assessee is allowed

ITA 180/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad11 May 2018AY 2013-14

Bench: Shri Pramod Kumar & Ms. Madhumita Royआयकर अपील सं./I.T.A. No.180/Ahd/2018 ("नधा"रण वष" / Assessment Year : 2013-14)

For Appellant: Shri Aseem L. Thakkar, ARFor Respondent: Shri Saurabh Singh, Sr.DR
Section 41(1)Section 438Section 43B

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘एस. एम. सी’, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ SMC ” BENCH, AHMEDABAD सम": "ी "मोद कुमार, लेखा सद"य एवं सु"ी मधु"मता रॉय, "या"यक सद"य BEFORE SHRI PRAMOD KUMAR ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No.180/Ahd/2018 ("नधा"रण वष" / Assessment Year : 2013-14) Aadinath Ornaments Private The Income Tax Officer बनाम/ Limited Ward-1(1)(1) Vs. 2, Dipawali Center Ahmedabad Opp: Old High Court Income Tax, Ahmedabad "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAFCA 9867 K .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से / App…

Sterling Addlife India Ltd., Ahmedabad vs. The DCIT, Circle-4(1)(1), Ahmedabad

In the result, this ground of appeal is allowed for statistical purposes

ITA 2479/AHD/2017[2013-2014]Status: DisposedITAT Ahmedabad11 May 2018AY 2013-2014
Section 143(3)Section 234ASection 271CSection 36Section 36(1)(va)

…s related to earning of exempt income. During the course of penalty proceedings before us, the ld. counsel has contended that jurisdictional Hon’ble high court of Gujarat vide its decision in the case of CIT vs. Gujarat State Fertilizers Chemicals Ltd. (2013) 358 ITR 323 (Guj) held that such amount could not be added while computing book profit u/s. 115JB of the act. We observe that assessee has not reported the full facts of the above judicial pronouncement adjudicated at para 6.2 to para 6.5 of above cited judgment wherein it is elaborated that total amount of addition to the book profit u/s 115 JB was restrict…

M/S. Suzlon Structures Ltd., Ahmedabad vs. The Dy. CIT, Circle-4(1)(1), Ahmedabad

In the result, this ground of appeal is allowed for statistical purposes

ITA 2348/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad11 May 2018AY 2013-14
Section 143(3)Section 234ASection 271CSection 36Section 36(1)(va)

…s related to earning of exempt income. During the course of penalty proceedings before us, the ld. counsel has contended that jurisdictional Hon’ble high court of Gujarat vide its decision in the case of CIT vs. Gujarat State Fertilizers Chemicals Ltd. (2013) 358 ITR 323 (Guj) held that such amount could not be added while computing book profit u/s. 115JB of the act. We observe that assessee has not reported the full facts of the above judicial pronouncement adjudicated at para 6.2 to para 6.5 of above cited judgment wherein it is elaborated that total amount of addition to the book profit u/s 115 JB was restrict…

M/S. Radix Web, Ahmedabad vs. The DCIT., Circle-5(2), Ahmedabad

In the result, this ground of appeal is allowed for statistical purposes

ITA 2051/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad11 May 2018AY 2013-14
Section 143(3)Section 234ASection 271CSection 36Section 36(1)(va)

…s related to earning of exempt income. During the course of penalty proceedings before us, the ld. counsel has contended that jurisdictional Hon’ble high court of Gujarat vide its decision in the case of CIT vs. Gujarat State Fertilizers Chemicals Ltd. (2013) 358 ITR 323 (Guj) held that such amount could not be added while computing book profit u/s. 115JB of the act. We observe that assessee has not reported the full facts of the above judicial pronouncement adjudicated at para 6.2 to para 6.5 of above cited judgment wherein it is elaborated that total amount of addition to the book profit u/s 115 JB was restrict…

Major Brands (India) Pvt. Ltd., Mumbai vs. Addl.CIT -5(2), Mumbai

In the result, the appeal filed by the assessee (Ground No

ITA 2153/MUM/2016[2011-12]Status: DisposedITAT Mumbai27 Feb 2018AY 2011-12

Bench: Shri C. N. Prasad, Jm &Dr. A.L.Saini, Am आयकरअपीऱसं./Ita No.2153/M/2016 (निर्धारणवषा / Assessment Year: 2011-12) Major Brands (India) Pvt. Vs. Acit-5(2), Mumbai Ltd. 401,Skyline Icon, Andheri Kurla Aayakarbhavan,M.K. Road,Andheri(East), Mumbai- Road,Mumbai-400020. 400059. स्थायीऱेखासं./ जीआइआरसं./ Pan/Gir No. : Aaccm 4949 B (Appellant) .. (Respondent) Appellant By :Shri Paras S.Savla, Ar Respondent By :Shri V. Vidhyadhar, Dr सुनवाईकीतारीख/ Date Of Hearing : 21/02/2018 घोषणाकीतारीख/Date Of Pronouncement : 27/02/2018 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am:

For Appellant: Shri Paras S.Savla, ARFor Respondent: Shri V. Vidhyadhar, DR
Section 143(3)Section 14A

…rule 8D(2) (ii):  CIT v. HDFC Bank Ltd. – 366 ITR 505 (bom)(HC)  CIT v. Gujarat Narmade Valley Fertilizers Co. Ltd. – 221 Taxman 479 (Guj) (HC)  CIT v. Amod Stamping (P) Ltd. – 223 taxmann 256(GUJ)(HC)  CIT v. Gujarat State Fertilizers & Chemicals Ltd. – 358 ITR 323(Guj) (HC)  CIT v. Torrent Power Ltd. 363 ITR 474(Guj) (HC)  CIT v. Hitachi Home & Life Solutions (I) Ltd. 221 Taxman 109(Guj) (HC) In view of the above,the counsel submitted before us that disallowance u/s 14A r.w.r 8D was not warranted since the assessee had sufficient own funds as compared to the investment made during the previous year 2010…

Mastek Limited, Ahmedabad vs. The Dy.CIT, (OSD) - 1, Circle-4, Ahmedabad

ITA 6/AHD/2015[2009-10]Status: DisposedITAT Ahmedabad08 Feb 2018AY 2009-10

Bench: Shri N.K. Billaiya & Shri Mahavir Prasad)

For Appellant: Shri Urvashi Shodhan, ARFor Respondent: Shri Prasoon Kabra, Sr. D.R
Section 115JSection 143(3)Section 14ASection 154

…ered by the Tribunal Special Bench, Delhi in the case of Vireet Investment Pvt. Ltd. in ITA No. 502/Delhi/2012. Per contra, the ld. D.R. 3 . A.Y. 2009-10 strongly supported the findings of the lower authorities and relied upon the decision in the case of GSFC 36 Taxmann.com 230. 8. We have given a thoughtful consideration to the orders of the authorities below. In our considered opinion, by not considering the disallowance made u/s. 14A for the purposes of the computation of book profit u/s. 115JB a rectifiable mistake was apparent from the record and therefore, there is no infirmity in rectifying the order u/s.…

Gujarat Chemical Port Terminal Co.Ltd., Baroda vs. The ACIT., Circle-1(1), Baroda

ITA 3077/AHD/2011[2004-05]Status: DisposedITAT Ahmedabad13 Nov 2017AY 2004-05

Bench: Shri Pramod Kumar & Shri S. S. Godara.

For Appellant: Shri Milin Mehta, A.RFor Respondent: Vasundhara Upmanyu, CIT. D.R
Section 143(3)Section 147Section 148

…el that the interest in question is otherwise allowable as Revenue expenditure. Hon’ble jurisdictional high court’s decision in DCIT vs. Gujarat Narmda Valley Fertilizers Co. Ltd. 33 taxmann.com 117 (Guj) and CIT vs. Gujarat State Fertilizers & Chemicals Ltd. 358 ITR 323 (Guj) hold that restructuring expenses are admissible as revenue expenditure. We therefore direct the Assessing Officer to delete the impugned disallowance. ITA No. 3077 to 3079 & 3115 to 3120/Ahd/11 [Gujarat Chemical Port Terminal Co. Ltd.] - 14 - 28. The assessee’s last substantive ground seeks to delete disallowance pertaining to minimum gua…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

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

ITA 6021/DEL/2012[2008-09]Status: DisposedITAT Delhi09 Nov 2017AY 2008-09

Bench: Shri N.K. Saini & Shri K.N. Charry

Section 143(3)Section 144CSection 144C(5)Section 14ASection 35DSection 43BSection 92C

…ITR 627, Alkali & Chemical Corp. of India v. CIT: (1986) 161 ITR 820 (Cal.), CIT v. Reliance Utilities and Power Ltd.: 313 ITR 340 (Bom.), CIT vs. M/s. Ashok Commercial Enterprises: ITA No. No.2985 of 2009 (Bom), Gujarat State Fertilizers and Chemicals Ltd : 358 ITR 323 (Guj), Hero Honda Finlease Ltd vs. ACIT: ITA No. 3726 & 6102/Del/2012 (Del) he submitted that if the assessee had sufficient surplus funds available, presumption should be drawn in favour of the assessee that surplus funds have been utilized for making investments. He submitted that the Gujarat High Court in the case of CIT v. UTI Bank Ltd: 215 T…

The DCIT(OSD) Circle-8, Ahmedabad vs. Voltamp Transformers Ltd., Ahmedabad

In the result appeal filed by the department is dismissed

ITA 2544/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad26 Sept 2017AY 2011-12

Bench: Shri N.K. Billaiya & Shri Mahavir Prasad

For Appellant: Shri Prasoon Kabra, Sr. D.RFor Respondent: Shri Ashwin Shah, C.A
Section 115JSection 145ASection 14ASection 44A

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘सी’ अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ C ” BENCH, AHMEDABAD सव"ी एन.के. "ब"लैया, लेखा सद"य एवं महावीर "साद, "या"यक सद"य के सम" । BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER And SHRI MAHAVIR PRASAD, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 2544/Ahd/2014 ("नधा"रण वष" / Assessment Year :2011-12) Dy. Commissioner of Voltamp Transformers बनाम/ Income Tax(OSD) Ltd. Vs. Circle – 8, 312 Sanman II, OPP Ahmedabad - 380015 Reliance Petrol Pump, Prahladnagar, Satellite, Ahmedabad - 380054 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACV 5048 G .. (अपीलाथ" /Appellant) (""य…

The DCIT(OSD) Circle-8, Ahmedabad vs. Voltamp Transformers Ltd., Ahmedabad

In the result, appeal filed by the department is dismissed

ITA 2084/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad26 Sept 2017AY 2010-11

Bench: Shri N.K. Billaiya & Shri Mahavir Prasad

For Respondent: Shri Ashwin Shah, C.A
Section 115JSection 14ASection 36(1)(iii)

…5JB. However, no addition u/s.14A in the regular assessment can be made while computing book profit u/s.115J. This Ground is also covered by the decision of Jurisdictional High Court in the matter of CIT vs. Gujarat State Fertilizers and Chemicals Ltd. [2013] 358 ITR 323 (Guj), wherein it is held that: “Disallowance in respect of interest expenditure not permissible – Where on facts section 14A not applicable no question of determining expenditure on reasonable basis and Payment to Financial consultants for professional services in connection with corporate debt restructuring by negotiating with banks and financi…

Arch Impex P.Ltd, Mumbai vs. ACIT Cen Cir 32, Mumbai

In the result, appeal of the assessee is allowed in part

ITA 2763/MUM/2015[2011-12]Status: DisposedITAT Mumbai07 Jun 2017AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm M/S. Arch Impex Pvt. Ltd., Vs. Acit Cen Cir 32, H Wing, 4Th Floor, Mumbai Tex Centre, Of Saki Vihar Road, Chandivali Andheri East Mumbai – 400 072 Pan/Gir No. Aaacca9190Q Appellant) .. Respondent)

Section 143(3)Section 14ASection 234ASection 271

…ment Year i.e. the year under consideration, AO has declined the claim. We do not find any justification for the same. The issue under consideration is covered by the decision of Gujarat High Court in the case of Gujarat State Fertilisers and Chemicals Ltd. , 358 ITR 323 wherein Hon’ble Court held that financial consultants for professional services in connection with corporate debt restructuring by negotiating with banks and financial institutions are to be allowed in the year in which it was incurred. The Court further observed that where the assessee has spread over the expenditure for six years and 1/6th is c…

M/S Indian Farmers Fertiliser Cooperative Ltd., New Delhi vs. Pr CIT, New Delhi

In the result, the Appeal filed by the Assessee stands allowed

ITA 2487/DEL/2016[2010-11]Status: DisposedITAT Delhi19 Sept 2016AY 2010-11

Bench: Shri H.S. Sidhu & Shri J.S. Reddy

For Appellant: Sh. Vijay Ranjan, Adv. Sh. Vartik RFor Respondent: Sh. A.K. Saroha, CIT(DR)
Section 263Section 36(1)(iii)

…, that this issue is squarely covered by a judgment of this Court in the case of CIT v. Reliance Utilities & Power Ltd. [2009] 313 ITR 340/178 Taxman 135 (Bom.) is well founded.” (emphasis supplied) (vi) CIT vs. Gujarat State Fertilizers and Chemicals Ltd., 358 ITR 323 (Guj.) The Headnote of this case is reproduced below for ready reference: “Held, that the dividend income earned was Rs. 1,14,43,040 and the estimate of expenditure was assessed at the rate of 10 per cent. of the total income. Had the Department been successful in establishing that the assessee had incurred the expenses to earn the dividend inco…

ACIT 10(2), Mumbai vs. Hindustan Composities Ltd, Mumbai

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

ITA 6842/MUM/2014[2010-11]Status: DisposedITAT Mumbai13 Jul 2016AY 2010-11

Bench: Shri B.R. Baskaran & Shri C.N. Prasadआयकर अपील सं /I.Ta No. 6842/Mum/2014 ("नधा"रण वष" / Assessment Year:2010-11 The Acit-10(2), M/S. Hindustan Composites बनाम/ Aaykar Bhavan, Ltd., Vs. Mumbai-400 020 B-11, Paragon Condominium, Pandurang Budhkar Marg, Worli,Mumbai-400 078

For Appellant: Shri Randhir GuptaFor Respondent: Shri R.S. Gordia
Section 14A

…ad invested from the own funds, hence, no interest expenditure can be disallowed”. Same view is held in CIT Vs HDFC Bank in ITA No. 330 of 2012 (Bombay High Court), CIT Vs UTI Bank Ltd, ITA No. 180/2013 (Guj), CIT Vs Gujarat State Fertilizers and Chemical Ltd 358 ITR 323 (Guj). Following the above decisions, disallowance for interest expenditure of Rs. 53,75,374/- is deleted. However, the Assessing Officer is directed to compute 0.5% of the average investments for the expenditure under administrative expenses. This ground of appeal is partly allowed”. 8. On reading of the Ld. CIT(A), we do not find any valid rea…

The Commissioner of Income Tax-III vs. M/S Sarada Projects Pvt. Ltd

ITTA/621/2006HC Telangana02 Feb 2012