CIT v. HDFC Bank Ltd.

Reliance Ports and Terminals Ltd ( Engineering & Construction Division) (Erstwhile Reliance Engg. Associates P.Ltd), Mumbai vs. Addl CIT RG 3(3), Mumbai

In the result, appeal of the Revenue is dismissed whereas appeal of the assessee is allowed in terms indicate hereinabove

Bench: Shri R.C. Sharma() & Shri Amit Shukla () Assessment Year: 2008-09

…1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “D”, MUMBAI BEFORE SHRI R.C. SHARMA(ACCOUNTANT MEMBER) AND SHRI AMIT SHUKLA (JUDICIAL MEMBER) Assessment Year: 2008-09 Addl. CIT, M/s Reliance Ports And Terminals Ltd. Range 3(3) (Engineering & Construction Division) Aayakar Bhavan (Erstwhile Reliance Engg. Associates M.K. Marg, Mumbai-400020 P. Ltd.), 5th Floor, Maker Chamber-IV 222, Nariman Point, Mumbai-400021 PAN No. AABCR3878B & ITA Nos. 5151/MUM/2012 Assessment Year: 2008-09 M/s Reliance Ports And Terminals Ltd. Vs. Addl. CIT, (Engineering & Construction Division) Range 3(3) (Erstwhile Reliance Engg.…

Purvag Commodities & Derivatives P.Ltd, Mumbai vs. ITO 8(2)(4), Mumbai

In the result, appeal filed by the assessee is allowed

Bench: Shri B.R. Baskaran (Am) & Shri Pawan Singh (Jm)

…hat the opening balance of own funds available with the assessee was ` 49.70 crores. Accordingly, he submitted that no disallowance out of interest is required to be made as per the decision rendered by Hon'ble Bombay High Court in the case of HDFC Bank Ltd. (366 ITR 505), since own funds available with the assessee is in excess of value of investments. With regard to the disallowance of expenditure, learned AR invited our attention to the Schedule of investments and submitted that the assessee has brought forward the entire amount of investments from the preceding year and no new investment has been made during…

DCIT Cir 3(3)(1), Mumbai vs. Rishiroop Rubber International Ltd, Mumbai

In the result, the appeal of Revenue and that of the assessee, both are dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am Dy. Commissioner Of Income Tax M/S Rishiroop Rubber International Ltd. Circle-3(3)(1), Room No.609, 6Th Floor, 65, Atlanta, Nariman Point, Vs. Mumbai-400021 Aayakar Bhavan, M.K. Road, Mumbai-400021 Pan: Aaacr1789G Appellant .. Respondent M/S Rishiroop Rubber International Ltd. Dy. Commissioner Of Income Tax Circle-3(3)(1), Room No.609, 6Th Floor, 65, Atlanta, Nariman Point, Vs. Mumbai-400021 Aayakar Bhavan, M.K. Road, Mumbai-400021 Pan: Aaacr1789G Appellant .. Respondent Revenue By .. Shri B.S. Bist, Sr. Dr Assessee By .. Shri Jayesh Dedia, Ar Date Of Hearing .. 15-11-2016 Date Of Pronouncement .. 15-11-2016 O R D E R Per Mahavir Singh, Jm:

…n that the assessee might have made investment out of its own interest free funds available with him, in case AO is unable to prove nexus. This view of ours is supported by the decision of Hon’ble Bombay High Court in the case of CIT vs. HDFC Bank Ltd. (2014) 366 ITR 505 (Bom). Respectfully following the Hon’ble High Court, we confirmed the decision of CIT (A) and this issue of Revenue’s appeal is dismissed. 8. The next Issue in this appeal of Revenue is against the order of CIT (A) deleting the addition made by AO being work-in-progress amounting to Rs.11,80,812/-. For this Revenue has raised following ground No…

DCIT Cir 3(3)(1), Mumbai vs. Rallis India Ltd, Mumbai

In the result, the appeal of the Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar Am Dy. Commissioner Of Income Tax Vs. M/S Rallies India Ltd. Circle-3(3)(1), Room No-609, 6Th Floor 156/157, Aayakar Bhavan, M.K. Road, Nariman Bhavan,Nariman Point Mumbai-400020 Mumbai-400021 Pan Aabcr2657N Appellant .. Respondent .. Shri Anu K. Agarwal, Addl.Cit Revenue By Assessee By .. Shri Harmuzt Tamshedji, Ar .. Date Of Hearing 15-11-2016 Date Of Pronouncement .. 15-11-2016 O R D E R Per Mahavir Singh, Jm:

…sition regarding availability of interest free funds amounting to Rs.503.36 crores as compared to investment of Rs.151.93 crores, drawing presumption and placing reliance on the decision of Hon’ble Bombay High Court in the case of CIT Vs HDFC Bank Ltd. (2014) 366 ITR 505 (Bom), presumed that the above stated investment was made by assessee out of interest free funds. Accordingly, he deleted the disallowance of Rs.53.59 lakh made by the AO and restricted the disallowance amounting to Rs.68.39 lakhs after reducing already disallowed by assessee amounting to Rs. 19,905/-. We find no infirmity in the order of CIT (A)…

Raptakos Brett & Co. Ltd, Mumbai vs. Addl CIT 5(3), Mumbai

In the result, the appeal of Assessee is allowed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am M/S Raptakos Brett & Co. Ltd. Addl Cit(A) 5(3) Room No. 525B, 5Th Floor, Aayakar 21A Mittal Tower, Vs. Nirman Point, Mumbai-400021 Bhavan, Mk Road, New Marine Pan No.Aaacr1772R Lines, Mumbai-20 Appellant .. Respondent Assessee By .. Ronak Doshi, Ar Revenue By .. Sivaji Ghote, Sr. Dr Date Of Hearing .. 10-11-2016 Date Of Pronouncement .. 10-11-2016 O R D E R Per Mahavir Singh, Jm:

…-interest bearing on funds which are more than the investments. The learned Counsel for the assessee stated that presumption go in favour of assessee and for this he relied on the decisions of Hon’ble Bombay High Court in the case of CIT(A) Vs. HDFC Bank Ltd. 366 ITR 505 (Bom) (HC). The learned Counsel for the assessee stated that the Assessing Officer could not find any fault in the working of the assessee and without any fault the Assessing Officer has computed his own disallowance. He took us through the order of CIT (A) which is very cryptic and just confirmed the action of the Assessing Officer. 6. We have h…

Gabriel India Ltd, Mumbai vs. Addl CIT RG 5(1), Mumbai

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

Bench: Shri R.C.Sharma, Am & Shri Ramlal Negi, Jm M/S. Gabriel India Ltd., Vs. Acit- 5(1), Mumbai 10, Prasad Chambers Opera House, Mumbai Pan/Gir No. Aaacg1994N Appellant) .. Respondent)

…t of the Own Fund i.e. Share Capital and Reserves. As of 31 st March 2008, these are stated at INR 13,264.7 lacs and Investment of INR.1333.10 lakhs is only 10.08 % of the Net Worth. As per the decision of Jurisdictional High Courts in case of HDFC Bank Ltd., 366 ITR 505 and Reliance Utilities & Power Ltd., 313 ITR 340, if assessee is having sufficient own funds, no disallowance of interest is warranted. We also found that against the exempt income of Rs.1.66 lakhs the assessee suo- moto worked out the disallowance as per Rule 8D at INR 49,66,962 as against the disallowance of INR 62,87,173 worked out by the AO.…

S. Mansukhlal & Co., Mumbai vs. DCIT 14(2), Mumbai

In the result, the appeal filed by the assessee in ITA No

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 4793/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) M/S. S. Mansukhlal & Co., The Deputy Commissioner बनाम/ Srbc & Associates Llp, Of Income Tax –14(2), V. Chartered Accountants, Earnest House, Iii Floor, 12 Th Floor, The Ruby, Nariman Point, 29, Senapati Bapat Marg, Mumbai – 400 021. Dadar (West), Mumbai – 400 028. "थायी लेखा सं./Pan : Aahfs9459A .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

…4.65 crores as at 31-03-2010 and Rs. 8.65 crores as at 31-03-2009, as are reflected in audited financial statements which are placed in paper book. The ld. Counsel relied on the decision of Hon’ble Bombay High Court in the case of CIT v. HDFC Bank Ltd., (2014)366 ITR 505 (Bom) , CIT v. Reliance Utilities & Power ltd., (2009) 313 ITR 340 (Bom) and decision of Hon’ble Bombay High Court in writ petition in HDFC Bank Limited v. DCIT (2016) 67 taxmann.com 42(Bom. HC). The ld. Counsel also relied on the decision of the Tribunal in the case of M/s Silvassa Estates Pvt. Ltd. v. ITO in ITA No. 7383/Mum/2012 vide orders da…

The Hindustan Co Operative Bank Ltd, Mumbai vs. Jt CIT 13(3), Mumbai

In the result, the assessee’s appeal is partly allowed and partly allowed for statistical purposes

Bench: Shri Sanjay Arora, Am & Shri Amarjit Singh, Jm आयकर अपील सं./I.T.A. No. 1501/Mum/2014 ("नधा"रण वष" / Assessment Year: 2009­10) The Hindustan Co­Operative Bank Ltd. Jt. Cit­13(3), बनाम/ 4­A, Devi Galli, Baburao Bobde Marg, Aaykar Bhavan, Vs. Lokhand Bazar, Mumbai­400 009 Mumbai "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aabat 4355 R (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Amar Gahlot, Shri S. Sriram ""यथ" क" ओर से/Respondent By : Shri B. Satyanarayana Raja सुनवाई क" तार"ख / : 01.7.2016 Date Of Hearing घोषणा क" तार"ख / : 24.10.2016 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: This Is An Appeal By The Assessee Directed Against The Order By The Commissioner Of Income Tax (Appeals)­24, Mumbai (‘Cit(A)’ For Short) Dated 19.11.2013, Dismissing The Assessee’S Appeal Contesting Its Assessment U/S.143(3) Of The Income Tax Act, 1961 (‘The Act’ Hereinafter) For The Assessment Year (A.Y.) 2009­ 10 Vide Order Dated 21.12.2011. 2. The Assessee, A Co­Operative Bank In The Business Of Banking, Governed By The Banking Regulation Act, 1949 As Well As The Maharashtra State Co­Operative Societies Act, 1960, Claimed ‘Investment Loss Adjusted From Idr’ In The Sum Of Rs.80.991 Lacs In The Computation Of Its Business Income For The Year (Pb Pgs. 24­26). It Is This Claim

…0/6/2008). The accounting is strictly 3 The Hindustan Co-operative Bank Ltd. vs. Jt. CIT as per the RBI guidelines in the said Circular. The matter, in fact, is covered by the decision by the Hon’ble jurisdictional High Court in CIT vs. HDFC Bank Ltd. [2014] 368 ITR 377 (Bom) (pgs. 45­48 of CLC), besides other decisions. On being enquired into the reasons for the said transfer during hearing, it was explained vide Note dated 1.7.2016 (para 1) that anticipating a reduction in the market value of the transferred scrips in future, i.e., with reference to that obtaining on 4.4.2008, the transfer date, these were tra…

Shearson Investment & Trading Co. P.Ltd, Mumbai vs. DCIT 1(3), Mumbai

In the result, appeal filed by the assessee is treated as partly allowed for statistical purposes

Bench: Shri B.R. Baskaran (Am)& Ramlal Negi (Jm)

…unds available with the assessee is more than the value of tax free investment and hence there is no requirement to make disallowance of interest expenditure u/r. 8D(2)(ii) of the Act, as per the decision of Hon'ble Bombay High Court in the case of HDFC Ltd. (366 ITR 505). She further submitted that investment shown in the books of account includes share application money, debentures, preference shares (0%) and jewellery. Learned AR submitted that these items cannot be considered as tax free investments and accordingly pleaded that they have to be excluded for the purpose of Rule 8D of the I.T. Rules. She submitt…

Rallis India Ltd, Mumbai vs. DCIT RG 3(3), Mumbai

In the result, the appeal as may be treated as partly allowed

…le with it is more than the investment made hence there is no requirement of making any disallowance out of interest expenditure. The view taken by the assessee is supported by the decision of Hon'ble High Court rendered in the case of CIT Vs. HDFC Bank Ltd. (366 ITR 505). Further the assessee has made fresh investment in two mutual funds and most of the shares have been brought forward from the earlier year. Under these set of facts, we are of the view that the disallowance u/s. 14A may be restricted to 2% of the dividend income earned by the assessee as held in the case of Godrej Agrovet Ltd. (ITA no. 934 of 20…

Asst CIT Cen Cir 46, Mumbai vs. Jsw Energy Ltd, Mumbai

In the result, both the appeals of the Revenue and the assessee are allowed in part in terms indicated hereinabove

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. No. 462/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Jsw Energy Limited Acit, Central Circle-46, बिाम/ Jsw Centre, Bandra Kurla Complex, Aayakar Bhavan, M. K. Road, Vs. Bandra (E), Mumabi-400 051 Mumbai स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Assessee) : (Revenue) आमकय अऩीर सं./I.T.A. No. 981/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Acit, Central Circle-46, Jsw Energy Limited बिाम/ Aayakar Bhavan, M. K. Road, Jsw Centre, Bandra Kurla Mumbai Complex, Vs. Bandra (E), Mumabi-400 051 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Revenue) : (Assessee) Assessee By : Shri Rakesh Joshi Revenue By : Shri K. Ravi Kiran सुनवाई की तायीख / : 12.7.2016 Date Of Hearing घोषणा की तायीख / : 07.10.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.: These Are The Cross Appeals Filed By The Assessee & The Revenue Against The Order By The Ld. Cit(A) For The Assessment Year (A.Y.) 2007-08. 2

…er the ld. AR, sufficient interest free funds were available with the assessee, therefore in view of the decision of Hon'ble jurisdictional High Court in the 5 ITA Nos. 462 & 981/Mum/2014 (A.Y. 2007-08) JSW Energy Limited case of CIT vs. HDFC Bank Ltd. [2014] 366 ITR 505 (Bom), no disallowance on account of interest expenditure is warranted. 9. We have considered the rival contentions and also deliberated on the judicial pronouncement referred by the lower authorities in their respective orders as well as cited by the ld. AR and ld. DR during the course of hearing before us. From the recordwe find that the A.O.…

Jsw Energy Ltd, Mumbai vs. Asst CIT Cir 11(5), Bangalore

In the result, both the appeals of the Revenue and the assessee are allowed in part in terms indicated hereinabove

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. No. 462/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Jsw Energy Limited Acit, Central Circle-46, बिाम/ Jsw Centre, Bandra Kurla Complex, Aayakar Bhavan, M. K. Road, Vs. Bandra (E), Mumabi-400 051 Mumbai स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Assessee) : (Revenue) आमकय अऩीर सं./I.T.A. No. 981/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Acit, Central Circle-46, Jsw Energy Limited बिाम/ Aayakar Bhavan, M. K. Road, Jsw Centre, Bandra Kurla Mumbai Complex, Vs. Bandra (E), Mumabi-400 051 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Revenue) : (Assessee) Assessee By : Shri Rakesh Joshi Revenue By : Shri K. Ravi Kiran सुनवाई की तायीख / : 12.7.2016 Date Of Hearing घोषणा की तायीख / : 07.10.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.: These Are The Cross Appeals Filed By The Assessee & The Revenue Against The Order By The Ld. Cit(A) For The Assessment Year (A.Y.) 2007-08. 2

…er the ld. AR, sufficient interest free funds were available with the assessee, therefore in view of the decision of Hon'ble jurisdictional High Court in the 5 ITA Nos. 462 & 981/Mum/2014 (A.Y. 2007-08) JSW Energy Limited case of CIT vs. HDFC Bank Ltd. [2014] 366 ITR 505 (Bom), no disallowance on account of interest expenditure is warranted. 9. We have considered the rival contentions and also deliberated on the judicial pronouncement referred by the lower authorities in their respective orders as well as cited by the ld. AR and ld. DR during the course of hearing before us. From the recordwe find that the A.O.…

P.K. Shah Shares & Securities P.Ltd, Mumbai vs. ACIT 4(2) Or CIT City 4, Mumbai

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

Bench: Shri G.S. Pannu & Shri Amarjit Singh: (A.Y : 2011-12)

…ation for disallowing any interest expenditure since the share capital and Reserves & Surplus available with the assessee were more than the investments made and thus, following the ratio of judgment of Hon’ble Bombay High Court in the case of HDFC Bank Ltd., 366 ITR 505, no disallowance is called for. Apart therefrom, it was also pointed out that the assessee is an investor as well as a trader in shares and, therefore, so far as the investments in stock-in-trade are concerned, same are to be excluded while calculating the disallowance u/s 14A of the Act. At the time of hearing, learned representative for the ass…

K Uttamlal (Exports) P Ltd, Mumbai vs. DCIT Cir 6(2), Mumbai

In the result, the appeal of assessee is partly allowed

Bench: Shri G.S. Pannu & Shri Amarjit Singh

…mbay High Court in the case of Reliance Utilities & Power Ltd., 313 ITR 340, the presumption is that such investments are out of interest-free funds. Reliance has also been placed on the judgment of the Hon'ble Bombay High Court in the case of HDFC Bank Ltd., 366 ITR 505 for the proposition that in the aforesaid situation disallowance u/s 14A of the Act is not merited. At the time of hearing, the learned representative also pointed out that under a similar situation, interest disallowed u/s 14A of the Act in Assessment Year 2009-10 by the Assessing Officer was deleted by the 4 M/s. K. Uttamlal (Exports) Pvt. Ltd…

K Uttamlal (Exports) P Ltd, Mumbai vs. DCIT Cir 6(2), Mumbai

In the result, the appeal of assessee is partly allowed

Bench: Shri G.S. Pannu & Shri Amarjit Singh

…mbay High Court in the case of Reliance Utilities & Power Ltd., 313 ITR 340, the presumption is that such investments are out of interest-free funds. Reliance has also been placed on the judgment of the Hon'ble Bombay High Court in the case of HDFC Bank Ltd., 366 ITR 505 for the proposition that in the aforesaid situation disallowance u/s 14A of the Act is not merited. At the time of hearing, the learned representative also pointed out that under a similar situation, interest disallowed u/s 14A of the Act in Assessment Year 2009-10 by the Assessing Officer was deleted by the 4 M/s. K. Uttamlal (Exports) Pvt. Ltd…

DCIT Cen Cir 3(3), Mumbai vs. Sharekhan Financial Services P.Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

Bench: Shri B.R. Baskaran (Am)& Ramlal Negi (Jm)

…t the assessee did not establish the nexus between the interest free funds and investment made by it. On the contrary, AR submitted that above said contention of the assessee have been duly considered by Hon'ble Bombay High Court in the case of HDFC Bank Ltd (366 ITR 505 and 383 ITR 529). 5. We have also gone through the copy of balance-sheet filed by the assessee. Perusal of the same would show that the interest-free fund available with the assessee is in excess of the amount of investment made by it during the year under consideration and also in the immediately preceding year. We notice that learned CIT(A) ha…