CIT v. HDFC Bank Ltd.

Ceat Ltd, Mumbai vs. ACIT 6(2), Mumbai

In the result, the assessee’s appeal for assessment year 2009-10

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainm/S. Ceat Ltd., 463, Dr. Annie Besant Road, Mumbai 400 030 Pan:Aaacc 1645G ... Appellant Vs. The Acit, Range – 6(2), Room No.562, Aaykar Bhavan, Mumbai 400 020 .... Respondent

…ar 2008-09, wherein in its order in ITA No.824/Mum/2012 dated 26/2/2015, the same issue on similar facts was held in favour of the assessee. The assessee also placed reliance on the decision of the Hon’ble Bombay High Court in the case of HDFC Bank Ltd.(2014) 366 ITR 505 (Bom) in support of the proposition that 5 since the assessee’s own funds are more than the investments made by the assessee, it would be presumed that the investment made by the assessee would be out of the interest free funds available with the assessee. 5.3 Per contra, the Ld. Departmental Representative supported the orders of the authoriti…

Laadki Trading & Investments Ltd, Mumbai vs. Addl CIT RG 6(3), Mumbai

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

Bench: Shri Shailendra Kumar Yadav, Jmand Shri Rajesh Kumar, Am

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI SHAILENDRA KUMAR YADAV, JMAND SHRI RAJESH KUMAR, AM आयकर अपील सं./I.T.A. No. 5493/Mum/2012 ("नधा"रण वष" / Assessment Year: 2007-08) M/s. Laadki Trading & Investments Addl. Commissioner Of Income- Ltd. tax, Range-6(3), Room No.505, बनाम/ C/o. Kalyaniwalla & Mistry, Aayakar Bhavan, M.K. Marg, Army & Navy Building, 3rd Floor, Mumbai. Vs. 148, M.G. Road, Fort, Mumbai-400 001. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. AAACL 0640G (अपीलाथ" /Appellant) (""यथ" / Respondent) : : Shri M.M. Golvala & Zareer N. अपीलाथ" क" ओर से / Appellant by Mehta : Shri. Nil…

Anahaita Nalin Shah, Mumbai vs. ACIT- Range 4 (2), Mumbai

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

Bench: Shri Shailendra Kumar Yadav, Jm & Shri Rajesh Kumar, Am

…as business income and therefore the interest paid to the said company was wrongly disallowed by the AO u/s14A r.w.r. Rule 8 D. The ld. Counsel relied on the decision of the CIT Vs. Gujarat Power Corporation Ltd. 352 ITR 583 (Guj) and CIT Vs. HDFC Bank Ltd. 366 ITR 505 (Bom) in support of the assessee’s case. The ld. Counsel further submitted that the assessee did not borrow any loan during the financial year 31.03.2007 to 31.03.2009 and submitted that all the investment made by the assessee were out of her own funds during the above years. The ld. Counsel substantiated his arguments by filing the comparative…

Ruchi Realty Holdings Ltd, Mumbai vs. ACIT RG 3(3), Mumbai

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

Bench: S/Shri B.R.Baskaran & Amarjit Singhआयकर अपील सं/ I.T.A. No.7622/Mum/2013 ("नधा"रण वष" / Assessment Year: 2010-11) Ruchi Realty Holdings Ltd. Acit 3(3) बनाम/ 610, Tulasiani Chambers, Mumbai Vs. Nariman Point, Mumbai "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadcr7664R .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

…o purchase the bonds if any. On seeing the above said facts and circumstances of the case apparently the provision of section 14A r.w. Rule 8D of the Act is not applicable in this case. We also found support of law settled in 2 Assessment Year: 2010-11 [2014]366 ITR 505 (Bom) case titled as CIT Vs. HDFC Bank Ltd., [2013] 215 taxman 272/33 taxmann.com151(Gujarat) case titled as CIT-IV Vs. Suzlon Energy Ltd. and [2014]272 CTR (Guj) 270 case titled as CIT Vs. Torrent Power Ltd. The own funds available with the assessee is 39.50 crores as against investment of Rs.8.62 crores. Hence no disallowance of interest is cal…

DCIT 7(3), Mumbai vs. Yes Bank Ltd, Mumbai

In the result, the appeal of the assessee is treated as partly allowed and appeal of the revenue is dismissed

Bench: S/Shri B.R.Baskaran, Am & Amarjit Singh, Jm आमकय अऩीर सं./I.T.A. No.3357/Mum/2013 (ननधधायण वषा / Assessment Year:2008-09) Yes Bank Limited, बनाम/ Addl.Commissioner Of Income 9Th Floor, Nehru Centre, Tax 7(3), Vs. Discovery Of India Building, Room No.614, 6Th Floor, Dr.A B Road, Worli, Mumbai- Aayakar Bhavan, 400018 M K Road, Mumbai-400020 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) .. आमकय अऩीर सं./I.T.A. No.3388/Mum/2013 (ननधधायण वषा / Assessment Year:2008-09) बनाम/ Dy.Commissioner Of Income Yes Bank Limited, 9Th Floor, Nehru Centre, Tax 7(3), Vs. Discovery Of India Building, Room No.615, 6Th Floor, Dr.A B Road, Worli, Aayakar Bhavan, Mumbai-400018 M K Road, Mumbai-400020 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) ..

…to be made, if the non- interest bearing funds available with the assessee are more than the amount of investment which generate tax free income, since the said view has been upheld by the Hon’ble Bombay High Court in the case of CIT V/s HDFC BANK LTD. [2014] 366 ITR 505 (Bom). However, the fund position of the assessee is required to be examined at the end of the AO. Accordingly, we set aside the order of Ld CIT(A) on this issue and restore the same to the file of the AO with the direction to examine this issue by following the ratio rendered in the case of HDFC Bank Ltd (supra) and also any other decision that…

Yes Bank Ltd, Mumbai vs. Addl CIT 7(3), Mumbai

In the result, the appeal of the assessee is treated as partly allowed and appeal of the revenue is dismissed

Bench: S/Shri B.R.Baskaran, Am & Amarjit Singh, Jm आमकय अऩीर सं./I.T.A. No.3357/Mum/2013 (ननधधायण वषा / Assessment Year:2008-09) Yes Bank Limited, बनाम/ Addl.Commissioner Of Income 9Th Floor, Nehru Centre, Tax 7(3), Vs. Discovery Of India Building, Room No.614, 6Th Floor, Dr.A B Road, Worli, Mumbai- Aayakar Bhavan, 400018 M K Road, Mumbai-400020 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) .. आमकय अऩीर सं./I.T.A. No.3388/Mum/2013 (ननधधायण वषा / Assessment Year:2008-09) बनाम/ Dy.Commissioner Of Income Yes Bank Limited, 9Th Floor, Nehru Centre, Tax 7(3), Vs. Discovery Of India Building, Room No.615, 6Th Floor, Dr.A B Road, Worli, Aayakar Bhavan, Mumbai-400018 M K Road, Mumbai-400020 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) ..

…to be made, if the non- interest bearing funds available with the assessee are more than the amount of investment which generate tax free income, since the said view has been upheld by the Hon’ble Bombay High Court in the case of CIT V/s HDFC BANK LTD. [2014] 366 ITR 505 (Bom). However, the fund position of the assessee is required to be examined at the end of the AO. Accordingly, we set aside the order of Ld CIT(A) on this issue and restore the same to the file of the AO with the direction to examine this issue by following the ratio rendered in the case of HDFC Bank Ltd (supra) and also any other decision that…

Addl CIT RG 3, Mumbai vs. The Gopinath Patil Park Parshik Janata Sahakari Bank Ltd, Thane

In the result, the appeal of the assessee as well as of the Revenue is hereby dismissed

Bench: Shri N.K. Billaiya & Shri Sanjay Gargassessment Year: 2009-10 M/S. Gopinath Patil Parsik Acit Circle-3, Janata Sahakari Bank Ltd., Vardhan Building, Sahakarmurti Gopinath M.I.D.C. Wagle Indl. Estate, Shivram Patil Bhawan, Vs. Thane Parsik Nagar, Kharegaon, Kalwa, Thane – 400 605 Pan: Aaaap 0267H (Appellant) (Respondent) Assessment Year: 2009-10

…HDFC Bank Ltd. (supra), the Tribunal has allowed the amortization of loss arisen on account of premium paid on ‘Investments held to maturity’ as deductable following the decision of the Hon’ble Bombay High Court in the case of “CIT vs. HDFC Bank Ltd.” (2014) 366 ITR 505. The Ld. D.R. has fairly agreed that the issue is squarely covered by the above decision. Further, the Ld. A.R. of the assessee has brought our attention to the another decision of the Hon’ble Bombay High Court in the case of “CIT vs. Thane Bharat Sahakari Bank Ltd. in ITA No.1117 of 2013 decided on 17.03.15 wherein the Hon’ble Bombay High Court…

Gopinath Patil Parsik Janata Sahakari Bank, Thane vs. ACIT Cir 3, Thane

In the result, the appeal of the assessee as well as of the Revenue is hereby dismissed

Bench: Shri N.K. Billaiya & Shri Sanjay Gargassessment Year: 2009-10 M/S. Gopinath Patil Parsik Acit Circle-3, Janata Sahakari Bank Ltd., Vardhan Building, Sahakarmurti Gopinath M.I.D.C. Wagle Indl. Estate, Shivram Patil Bhawan, Vs. Thane Parsik Nagar, Kharegaon, Kalwa, Thane – 400 605 Pan: Aaaap 0267H (Appellant) (Respondent) Assessment Year: 2009-10

…HDFC Bank Ltd. (supra), the Tribunal has allowed the amortization of loss arisen on account of premium paid on ‘Investments held to maturity’ as deductable following the decision of the Hon’ble Bombay High Court in the case of “CIT vs. HDFC Bank Ltd.” (2014) 366 ITR 505. The Ld. D.R. has fairly agreed that the issue is squarely covered by the above decision. Further, the Ld. A.R. of the assessee has brought our attention to the another decision of the Hon’ble Bombay High Court in the case of “CIT vs. Thane Bharat Sahakari Bank Ltd. in ITA No.1117 of 2013 decided on 17.03.15 wherein the Hon’ble Bombay High Court…

Unigem (India) P.Ltd, Mumbai vs. Asst CIT 5(3), Mumbai

In the result, both the appeals filed by the assessee are treated as allowed for statistical purpose

Bench: Shri N.K. Billaiya & Shri Pawan Singhआयकर अपील सं/ I.Ta No. 1961 & 6263/Mum/2013 ("नधा"रण वष" / Assessment Years :2009-10 & 2010-11 बनाम/ M/S. Unigem (India) Pvt. The Acit 5(3), Ltd., Aayakar Bhavan, Vs. 401/402 Prasad Mumbai-400 020 Chambers, "थायी लेखा सं./जीआइआर सं./Pan/Gir No. :Aaacu 0081C (अपीलाथ" /Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant By: Shri Apurva Shah ""यथ" क" ओर से/Respondent By: Shri Pawan Kumar Beerla सुनवाई क" तार"ख / Date Of Hearing :09.12.2015 घोषणा क" तार"ख /Date Of Pronouncement :16.12 .2015 आदेश / O R D E R Per N.K. Billaiya, Am: These Appeals By The Assessee Are Preferred Against To Separate Orders Of The Ld. Cit(A)-9, Mumbai Dated 29.1.2013 & 17.9.2013 Pertaining To Assessment Years 2009-10 & 2010-11. The Grievance In Both These Appeals Is Common & Relates To The Disallowance Made U/S. 14A R.W. Rule 8D. Since The Facts Are Common In Both These Appeals, They Were Heard Together & Disposed Of By This Common Order For The Sake Of Convenience.

…d at Rs. 60 crores. The investment is at Rs. 7.80 crores. The ratio laid down by the Hon’ble High Court of Bombay in the case of Utilities and Power Ltd (supra) clearly apply. This has been followed by the Hon’ble High Court of Bombay in the case of HDFC Bank 366 ITR 505. Therefore, we do not find any reason in making the disallowance in so far as interest is concerned. 6.1. Regarding disallowance in respect of administrative expenses, in our considered opinion, the same has to be computed on investments on which income is earned which are exempt from tax. We, therefore, restore this issue to the file of the AO.…

ACIT Large Tax Payer Unit, Mumbai vs. Union Bank of India, Mumbai

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

Bench: S/Shri B.R.Baskaran, Am & Amarjit Singh, Jm आमकय अऩीर सं./I.T.A. No.4678/Mum/2013 (ननधधायण वषा / Assessment Year: 2008-09) बनाम/ Union Bank Of India, Addl. Commissioner Of Income Tax, Ltu, Central Accounts Department, Vs. World Trade Center, 6Th Floor, Cuff Parade, 239, Vidhan Bhavan Marg, Mumbai-400005 Nariman Point, Mumbai-400021 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) ..

…estments and hence there is 4 4 6 7 8 / Mu m/ 2 0 1 3 a n d 4 8 4 2 / Mu m/ 2 0 1 3 no question of making any disallowance out of interest expenditure, in view of the decision rendered by Hon‟ble Bombay High Court in the case of CIT V/s HDFC BANK LTD. [2014] 366 ITR 505 (Bom). The ld. AR further submitted that the securities, even though shown as „Investments‟ in the books of account, yet profit or loss arising on their sale was assessed under the head Income from business only for income tax purposes. He further submitted that all the securities are valued at cost or market value whichever is less at the year e…

Union Bank of India, Mumbai vs. Asst CIT Ltu, Mumbai

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

Bench: S/Shri B.R.Baskaran, Am & Amarjit Singh, Jm आमकय अऩीर सं./I.T.A. No.4678/Mum/2013 (ननधधायण वषा / Assessment Year: 2008-09) बनाम/ Union Bank Of India, Addl. Commissioner Of Income Tax, Ltu, Central Accounts Department, Vs. World Trade Center, 6Th Floor, Cuff Parade, 239, Vidhan Bhavan Marg, Mumbai-400005 Nariman Point, Mumbai-400021 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) ..

…estments and hence there is 4 4 6 7 8 / Mu m/ 2 0 1 3 a n d 4 8 4 2 / Mu m/ 2 0 1 3 no question of making any disallowance out of interest expenditure, in view of the decision rendered by Hon‟ble Bombay High Court in the case of CIT V/s HDFC BANK LTD. [2014] 366 ITR 505 (Bom). The ld. AR further submitted that the securities, even though shown as „Investments‟ in the books of account, yet profit or loss arising on their sale was assessed under the head Income from business only for income tax purposes. He further submitted that all the securities are valued at cost or market value whichever is less at the year e…

Dcb Bank Ltd, Mumbai vs. ACIT Cir 2(3), Mumbai

In the result, the appeal filed by the Revenue is dismissed and the appeal filed by the assessee is partly allowed

Bench: Shri N.K. Billaiya & Shri Amarjit Singhआयकर अपील सं/ I.Ta No. 820/Mum/2014 ("नधा"रण वष" / Assessment Year:2010-11 Dcb Bank Ltd., The Acit-Circle 2(3), बनाम/ Formerly Development Aayakar Bhavan, Vs. Credit Bank Ltd., 6Th Floor, Mumbai-400 020 Peninsulla Business Park, Tower A, Senapati Bapat Marg, Lower Parel, Mumbai-400 013

…he assessee. 10. The assessee carried the matter before the Ld. CIT(A) but without any success. 11. Before us, the Ld. Counsel for the assessee straightaway drew our attention to the decision of the Hon’ble High Court of Bombay in the case of HDFC Bank Ltd. 366 ITR 505 wherein question No. B read as under: (B) Whether the Income-tax Appellate Tribunal was correct in law in holding that the broken period interest is allowable as a deduction, in spite of the hon'ble Supreme Court's decision in the case of Vijaya Bank Ltd. v. Addl. CIT [1991] 187 ITR 541(SC) and the Rajasthan High Court's decision in the case of…

ACIT 2(3), Mumbai vs. Development Credit Bank Ltd, Mumbai

In the result, the appeal filed by the Revenue is dismissed and the appeal filed by the assessee is partly allowed

Bench: Shri N.K. Billaiya & Shri Amarjit Singhआयकर अपील सं/ I.Ta No. 820/Mum/2014 ("नधा"रण वष" / Assessment Year:2010-11 Dcb Bank Ltd., The Acit-Circle 2(3), बनाम/ Formerly Development Aayakar Bhavan, Vs. Credit Bank Ltd., 6Th Floor, Mumbai-400 020 Peninsulla Business Park, Tower A, Senapati Bapat Marg, Lower Parel, Mumbai-400 013

…he assessee. 10. The assessee carried the matter before the Ld. CIT(A) but without any success. 11. Before us, the Ld. Counsel for the assessee straightaway drew our attention to the decision of the Hon’ble High Court of Bombay in the case of HDFC Bank Ltd. 366 ITR 505 wherein question No. B read as under: (B) Whether the Income-tax Appellate Tribunal was correct in law in holding that the broken period interest is allowable as a deduction, in spite of the hon'ble Supreme Court's decision in the case of Vijaya Bank Ltd. v. Addl. CIT [1991] 187 ITR 541(SC) and the Rajasthan High Court's decision in the case of…

Next Media Works Ltd (Formerly Knwon Midday Multimedia Ltd), Mumbai vs. DCIT 5(2), Mumbai

…आयकर अपीलीय अिधकरण, ‘बी’ खंडपीठ मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI “B” BENCH सव"ी राजे", लेखा सद" एवं श""जीत डे, "ाियक सद" Before S/Sh. Rajendra,Accountant Member & Saktijit Dey,Judicial Member आयकर अपील सं/.ITA No.2738/Mum/2013,िनधा"रण वष"/Assessment Year-2009-10 M/s. Next Media Works Ltd. The DCIT-5(2) (Formerly known as Midday Room No.571 Multimedia Ltd.) Vs Aayakar Bhavan, M.K. Marg C.O. Inquilab Offset Printers Ltd. New Marine Lines 156, D.J. Dadajee Road, Mumbai-400 020. Behind Everest Building, Tardeo Mumbai-400 020. PAN: AAACM 7512 L (अपीलाथ" /Appellant) (""थ" / Respondent) िनधा"रती ओर से/As…

Greaves Cotton Ltd (Formerly Known As Greaves Ltd), Mumbai vs. ITO WD 6(3)(1), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri G S Pannu & Shri Amit Shuklaita

…ore than Rs. 85.5 crores. In AY 2002- 03, no disallowance of interest was made and this fact has been accepted till the stage of the Tribunal. In any case, now this issue stands covered by decision of jurisdictional High Court in the case of CIT vs HDFC Bank, 366 ITR 505 and Delhi High Court in the case of Taikisha Engineering, 370 ITR 338. 8. On the other hand, Ld. CIT DR, submitted that the Ld. CIT(A) has only tried to work out a reasonable basis for disallowance for which he has taken a same clue from formula laid down in Rule 8D. It is the onus of the assessee to prove the nexus between the investment made an…

Karp Impex Ltd, Mumbai vs. Addl CIT 5(2), Mumbai

The appeal of the AO is dismissed

Bench: S/Sh. Rajendra & Sanjay Gargअपील सं/.Ita No.6346/Mum/2011,िनधा"रण वष"/Assessment Year-2007-08 Acit-Circle -5(2) Karp Impex Ltd. 1411, 14Th Floor,Prasad Chambers Room No.571, Aayakar Bhavan, Vs M.K. Road, Tata Road, Opera House Mumbai-400 020. Mumbai-400 004. Pan:Aabck 1823 F अपील सं/.Ita No.6419/Mum/2011,िनधा"रण वष"/Assessment Year-2007-08 Karp Impex Ltd. Acit-Circle -5(2) Mumbai-400 004. Vs Mumbai-400 020 (अपीलाथ" /Appellant) (""थ" / Respondent) िनधा"रती ओर से/Assessee By :Shri B.V. Jhaveri राज" की ओर से/ Revenue By :Shri Raghuveer Madnappa सुनवाई की तारीख / Date Of Hearing : 10- 09 -2015 घोषणा की तारीख / Date Of Pronouncement : 07-10-2015 आयकर अिधिनयम,1961 1961 की धारा 254 254(1)के अ"ग"त आदेश 1961 1961 254 254 Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद" राजे" के अनुसार Per Rajendra, Am- Challenging The Order Dated 01.06.2011Of Cit(A)-,Mumbai,The Assessing Officer(Ao)And The Assessee Have Filed Cross Appeals,Raising Following Grounds Of Appeal

…आयकर अपीलीय अिधकरण, " ए” खंडपीठ मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-“A”,BENCH सव"ी राजे", लेखा सद" एवं संजय गग", "ाियक सद" Before S/Sh. Rajendra,Accountant Member & Sanjay Garg,Judicial Member अपील सं/.ITA No.6346/Mum/2011,िनधा"रण वष"/Assessment Year-2007-08 ACIT-Circle -5(2) Karp Impex Ltd. 1411, 14th Floor,Prasad Chambers Room No.571, Aayakar Bhavan, Vs M.K. Road, Tata Road, Opera House Mumbai-400 020. Mumbai-400 004. PAN:AABCK 1823 F अपील सं/.ITA No.6419/Mum/2011,िनधा"रण वष"/Assessment Year-2007-08 Karp Impex Ltd. ACIT-Circle -5(2) Mumbai-400 004. Vs Mumbai-400 020 (अपीलाथ" /Appellant) (""थ" / Res…