CIT v. HDFC Bank Ltd.

Shree Naman Securities & Finance Pvt Ltd., Mumbai vs. Dy CIT Cir. 5(4), Mumbai

In the result, appeal of the assessee is partly allowed

…re sufficiently available and are more than the investments that had actually yielded exempt income, following the ratio laid down by the Hon’ble Jurisdictional High Court in the case of HDFC Bank Limited 3 Shree Naman Securities & Finance Ltd., reported in 366 ITR 505, we hold that no disallowance of interest under Rule 8D(2)(ii) of the Rules could be made in the facts of the instant case. 3.2. With regard to disallowance of indirect expenses under Rule 8D(2)(iii) of the Rules, we direct the ld. AO to consider only those investments which had actually yielded exempt income to the assessee and re-compute the d…

ACIT Circle-16 (1), Mumbai vs. M/S Utv Software Communicatin Ltd, Mumbai

In the result, Revenue’s appeal is dismissed

Bench: Shri S. Rifaur Rahman & Shri Ravish Sood

…IN THE INCOME TAX APPELLATE TRIBUNAL “J” BENCH, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA no.6292/Mum./2019 (Assessment Year : 2010–11) Asstt. Commissioner of Income Tax ……………. Appellant Circle–16(1), Mumbai v/s UTV Software Communication Ltd. 1st Floor, Building no.14, Solitaire Corporate Park, Guru Hargovindji Marg, Chakala ……………. Respondent Andheri (E), Mumbai 400 093 PAN – AAACU4122G Revenue by : Shri Vatsalya Saxena Assessee by : Shri Ajit Jain a/w Shri Siddhesh Chaugule Date of Hearing – 28.06.2021 Date of Order – 31.08.2021 O R D E R PER S. RIFAUR…

Rupa Eqquities Pvt Ltd, Mumbai vs. DCIT, Circle-3(3) (1), Mumbai

In the result, the appeal of assessee is partly allowed

Bench: Sri Mahavir Singh, Vp & Sri Manoj Kumar Aggarwal, Am Aayakr Apila Sam./ Ita No. 5760/Mum/2019 (Inaqa-Arna Baya- / Assessment Year 2015-16) Rupa Eqquities Pvt. Ltd. The Dy. Commissioner Of 2Nd Floor Bajaj Bhaan, Income Tax, Circle 3(3)(1), Vs. Jamnalal Marg, 226, Nariman Mumbai-400 020 Point, Mumbai-400 021 (Apilaaqai- / Appellant) .. (P`%Yaqaai- / Respondent) स्थामी रेखा िं./Pan No. Aaacs7520E अऩीराथी की ओय े / Appellant By : Shri Mahendra Gohel, Ar प्रत्मथी की ओय े / Respondent By : Shri Bharat Andhle, Dr स नवाई की तारीख / Date Of Hearing: 11.08.2021 घोषणा की तारीख / Date Of Pronouncement : 31.08.2021

…आयकर अपीलीय अधिकरण “D” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI श्री भहावीय स िंह, उऩाध्मक्ष एविं श्री भनोज कुभाय अग्रवार, रेखा दस्म के भक्ष । BEFORE SRI MAHAVIR SINGH, VP AND SRI MANOJ KUMAR AGGARWAL, AM Aayakr ApIla saM./ ITA No. 5760/Mum/2019 (inaQa-arNa baYa- / Assessment Year 2015-16) Rupa Eqquities Pvt. Ltd. The Dy. Commissioner of 2nd Floor Bajaj Bhaan, Income Tax, Circle 3(3)(1), Vs. Jamnalal Marg, 226, Nariman Mumbai-400 020 Point, Mumbai-400 021 (ApIlaaqaI- / Appellant) .. (p`%yaqaaI- / Respondent) स्थामी रेखा िं./PAN No. AAACS7520E अऩीराथी की ओय े / Appellant by : Shr…

Phl Finvest P. Ltd, Mumbai vs. DCIT 7(3)(2), Mumbai

The appeal is allowed for statistical purposes

Bench: Shri Vikas Awasthy & Shri S.Rifaur Rahmanआअसं. 280/मुं/2018 ("न. व.2013-14 ) M/S. Phl Fininvest Pvt. Ltd. 4Th Floor, Piramal Tower, Ganpatrao Kadam Marg, Lower Parel ,Mumbai 400 013. Pan: Aaacn-5024-A ...... अपीलाथ" /Appellant बनाम Vs. Dy. Commissioner Of Income Tax, Range – 7(3)(2) Room No.623, 6Th Floor, Aaykar Bhavan, M.K.Road, Mumbai 400 020 ..... ""तवाद"/Respondent

…er the investments made. The ld. Authorized Representative of the assessee placed reliance on following decisions to contend that no disallowance can be made u/s.14A, where own interest free funds are more than the investments made: (i) CIT vs.HDFC Bank Ltd., 366 ITR 505(Bom); (ii) HDFC Bank Ltd. vs. DCIT, 383 ITR 529(Bom); (iii) DCIT vs. Ashok Apparels, 106 taxmann.com 63 (Bom); and (iv) DCIT vs. Premier Finance & Trading Co. Ltd. 262 Taxman 341(Bom) The ld. Authorized Representative of the assessee submitted that direct expenses for earning tax free income is merely Rs.3,65,000/- hence, the same can be disallo…

Cargotec India Pvt Ltd., Navi Mumbai vs. Asst CIT 15(1)(2), Mumbai

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

…3 crores. Hence it could be safely presumed that the Capital Work in Progress had been invested only out of own funds and not out of borrowed funds, by following the ratio laid down by the Hon‟ble Jurisdictional High Court in the case of HDFC Bank reported in 366 ITR 505 (Bom). Respectfully following the same, we direct the ld AO to delete the disallowance of interest u/s 36(1)(iii) of the Act. Accordingly, the Ground No. 6 raised by the assessee for the Asst Year 2011-12 is hereby directed to be allowed. 15. The Ground No. 7 raised by the assessee for the Asst Year 2011-12 is identical to Ground No. 7 raised fo…

Nirmal Industrial Control Pvt. Ltd., Mumbai vs. ACIT 15(2)(1), Mumbai

In the result, appeal of the assessee is partly allowed

…Industrial Control Pvt.Ltd., presumed that the investments were made by the assessee out of own funds and not with the borrowed funds. Hence, by respectfully following the decision of the Hon’ble Jurisdictional High Court in the case of HDFC Bank reported in 366 ITR 505, we direct the ld. AO to delete the disallowance of interest under Rule 8D(2)(ii) of the Rules. With regard to disallowance of administrative expenses under Rule 8D(2)(iii) of the Rules, we direct the ld. AO to consider only those investments which had actually yielded dividend during the year and apply 0.5% on the average value of such investmen…

Hdfc Bank Ltd, Mumbai vs. DCIT 2(3)(1), Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri S.Rifaur Rahman () & Shri Ravish Sood () M/S Hdfc Bank Limited Acit-2(3)(1) Hdfc Bank House Vs. Aayakar Bhavan, Senapati Bapat Marg, Mumbai Lower Parel, Mumbai – 400 013

…at the aforesaid issue was squarely covered by the judgments of the Hon‟ble High Court of Bombay in the case of CIT Vs. Reliance Utility & Powers Limited (2009) 313 ITR 340 (Bom) and those passed in the assessee‟s own case i.e CIT Vs. HDFC Bank Limited (2014) 366 ITR 505 (Bom) and HDFC Bank Limited Vs. PCIT-2(3), Mumbai (2016) 383 ITR 529 (Bom). Adverting to the judgment of the Hon‟ble High Court of Bombay in the case of Reliance Utility and Power Limited (supra), it was submitted by the ld. A.R that there was a clear mention that the availability of the own funds with the assessee company was to be looked into i…

Paresh N. Bhagat, Mumbai vs. Assistant Commissioner of Income Tax-24(3), Mumbai

In the result, both the appeals of the assessee are partly allowed for statistical purposes

Bench: Shri Mahavir Singh () & Shri M. Balaganesh () Assessment Year: 2011-12 & Assessment Year: 2012-13 Paresh N. Bhagat, Addl. Commissioner Of Income 501, Heritage Plaza, Jp Road, Opp. Vs. Tax Range-20(2), Indian Oil Company, Andheri (W), Aayakarbhavan, Mumbai Mumbai-400053. [Now Lying With Asst.Cit- 4(3)(2), Mumbai] Pan No. Aabpb 1073 B Appellant Respondent Assessee By : Mr. Jigar Mehta, Ar Revenue By : Ms.Shreekalapardeshi, Dr Date Of Hearing : 24/06/2021 Date Of Pronouncement : 01/07/2021

…ts made by the assessee and hence, it could be safely presumed that the investments were made with own funds and not with borrowed funds. By placing reliance, in this regard on the decision of Hon’ble Jurisdictional High Court in the case of HDFC Bank Ltd. in 366 ITR 505, we direct the Ld. AO to delete the disallowance of interest under Rule 8D(2)(ii) was of the Rules. Paresh N. Bhagat 3.2. With regard to the disallowance of administrative expenses under Rule 8D(2)(iii) of the Rules, we hereby direct the Ld. AO to consider only dividend bearing investments for the purpose of working out the disallowance in the l…

ACIT (OSD) RG. 8(1), Mumbai vs. Capital First Limited, Mumbai

In the result, appeal of the Revenue and Cross Objection of the assessee is allowed for statistical purposes

…atements enclosed in the paper book filed before us. This figure of own funds is much more than the investments made by the assessee. Hence by placing reliance on the decision of the Hon’ble Jurisdictional High Court in the case of HDFC Bank Ltd., reported in 366 ITR 505, we hereby direct the ld. AO to delete the disallowance of interest under Rule 8D(2)(ii) of the Rules. 4.4. We find that the ld. AO had taken the disallowance of Rs.12 lakhs under Rule 8D(2)(i) of the Rules from the voluntary disallowance figure made by the assessee itself. No such direct nexus was identified by the ld AO towards incurrence of s…

The Sarswat Co-Operative Bank Ltd., Mumbai vs. ITO 1 (3)(1), Mumbai

Bench: Shri S. Rifaur Rahman & Shri Ravish Sood

…f the interest expenditure under Sec. 14A r.w. Rule 8D(2)(ii) was called for in its hands. In support of its aforesaid contention the assessee had drawn support from the judgment of the Hon‟ble High Court of Bombay in the case of CIT Vs. HDFC Bank Ltd. (2014) 366 ITR 505 (Bom). It was further submitted by the assessee that the ITAT, Mumbai in the assessee‟s own case for the preceding years, viz. A.Y 2008-09, A.Y 2009-10 & A.Y 2010-11, vide a common order dated 31st October, 2018 had after considering the judgments of the Hon‟ble High Court of Bombay in the case of HDFC Bank Ltd. Vs. DCIT (2016) 383 ITR 529 (Bom)…

Jsw Cement Ltd, Mumbai vs. DCIT 5 (2)(1), Mumbai

In the result, appeal of the assessee is allowed for statistical purpose

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Jsw Cement Ltd., V. Dcit – 5(2)(1) Room No. 571, 5Th Floor 5Th Floor, Jsw Centre Aayakar Bhavan, M.K. Road Bandra Kurla Complex, Bandra(E) Mumbai – 400020 Mumbai - 400051 Pan: Aabcj6731B (Appellant) (Respondent) Assessee By : Shri Gaurav Kabra Department By : Shri Sanjeev Kashyap & Shri Vijay Kumar Menon

…-15 by the Tribunal in ITA.No. 5387 & 5388/Mum/2018 dated 12.12.2019, wherein the Tribunal deleted the disallowance made Under Rule 8D(2)(ii) of I.T. Rules following the decisions of the Hon'ble Jurisdictional High Court in the case of CIT v. HDFC Bank Ltd., [366 ITR 505] and CIT v. Reliance Utilities & Power Pvt. Ltd., [313 ITR 340] held that no disallowance under Rule 8D(2)(ii) of I.T.Rules is warranted when the assessee has its own interest free funds more than the investments. The Tribunal also directed the Assessing Officer to verify this fact and if the reserves and surplus interest free funds of the assess…

DCIT, CC- 8(1), Mumbai vs. Nirshilp Securities Pvt. Ltd., Mumbai

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

…are perusal of the financial statements for the respective period and that the same is much more than the investments made by the assessee. Hence by applying the ratio laid down by the Hon‟ble Jurisdictional High Court in the case of HDFC Bank Ltd reported in 366 ITR 505 and of the Hon‟ble Supreme Court in the case of M/s. Nirhsilp Commodities Pvt. Ltd., Reliance Industries Ltd reported in 410 ITR 466, we hold that no disallowance of interest need to be made under Rule 8D(2)(ii) of the Rules. 2.3. With regard to disallowance under Rule 8D(2)(iii) of the Rules, the ld AR argued that the disallowance already made…