CIT v. Hero Cycles Ltd.

323 ITR 518High Court2010#150 most cited

What is CIT v. Hero Cycles Ltd. authority for?

Disallowance under Section 14A, for expenditure incurred in relation to exempt income, is not permissible when the assessee has not earned any exempt income, such as dividend income under Section 10(34), during the year under consideration.

470

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2012 to 2026.

Also referred to as

CIT v. Hero Cycles Ltd. · Section 14A disallowance · no exempt income earned · Section 10(34) dividend · expenditure nexus · disallowance if no dividend income · 323 ITR 518 · Hero Cycles 14A · exempt income disallowance

Also reported as

189 Taxmann 504 ITR-OL 246221 CTR 435

Sections most often in play

Section 14ASection 142(1)Section 143(3)Section 8DSection 143(2)Section 115JBSection 37(1)Section 43B
Read the full judgment

Issues it is cited on

section 10(34)disallowance under section 14adisallowance u/s 14asection 14asection 115jsection 115jbsection 37section 37(1)section 10section 115previous yearassistant commissioner

Judgments citing CIT v. Hero Cycles Ltd.

Avis Tie Up Pvt Ltd, Kolkata vs. D.C.I.T Cir - 11, Kolkata

In the result, assessee’s appeal is allowed

ITA 2028/KOL/2013[2008-09]Status: DisposedITAT Kolkata15 Jul 2016AY 2008-09

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Ravi

Section 143(2)Section 143(3)Section 14A

…Chini Mills Ltd. Vs. DCIT (2012) 20 taxmann.com 117 (Kol) e) ACIT vs. Elcher Ltd. (2006) 101 TTJ 369 (Del) f) ACIT vs. Jindal Saw Pipes Ltd (2008) 118 TTJ 228 (Del) g) CIT vs. Metalman Auto P. Ltd. (2011) 336 ITR 434 (P & H) h) CIT vs. Hero Cycles Ltd. (2010) 323 ITR 518 (P & H) i) DCIT vs. Jindal Photo Ltd.ITA No.4539/Del/2010 dated 22.12.2010 j) Godrej & Byoce vs. DCIT 328 ITR 81 (Bom) The relevant extract of the order of Hon’ble Delhi Tribunal in the case of ACIT vs. Elcher Ltd. (2006) 101 TTJ 369 (Del) is reproduced below. “A look at the language of s. 14A shows that the AO can disallow only expenditure "in…

Citicorp Finance P.Ltd, Mumbai vs. Addl CIT RG 10(1), Mumbai

ITA 5731/MUM/2012[2004-05]Status: DisposedITAT Mumbai13 Jul 2016AY 2004-05
Section 254(1)

…आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण," सी सी ” खंडपीठ खंडपीठ मुंबई मुंबई आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण सी सी खंडपीठ खंडपीठ मुंबई मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-“C”,BENCH सव"ी जोिग"दर "सह, "याियक सद"य एवं राजे"", लेखा सद"य Before S/Shri Joginder Singh,Judicial Member & Rajendra,Accountant Member आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं./ITA/ 5731/Mum/2012,िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2004-05 वष" Citicorp Finance (I) Limited The Addl. CIT, Range-10(1) 5th Floor, Plot C-61,Bandra Kurla Complex, Aayakar Bhavan, Mumbai. Vs. G-Block,Bandra (E), Mumbai-400…

Addl CIT 10-(1), Mumbai vs. Citicorp Finance (I) Ltd, Mumbai

ITA 5149/MUM/2012[2004-05]Status: DisposedITAT Mumbai13 Jul 2016AY 2004-05
Section 254(1)

…आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण," सी सी ” खंडपीठ खंडपीठ मुंबई मुंबई आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण सी सी खंडपीठ खंडपीठ मुंबई मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-“C”,BENCH सव"ी जोिग"दर "सह, "याियक सद"य एवं राजे"", लेखा सद"य Before S/Shri Joginder Singh,Judicial Member & Rajendra,Accountant Member आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं./ITA/ 5731/Mum/2012,िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2004-05 वष" Citicorp Finance (I) Limited The Addl. CIT, Range-10(1) 5th Floor, Plot C-61,Bandra Kurla Complex, Aayakar Bhavan, Mumbai. Vs. G-Block,Bandra (E), Mumbai-400…

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

Appeal is allowed

ITA 5720/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Jul 2016AY 2007-08

Bench: Shri I.C. Sudhir & Shri L.P. Sahu Assessment Year: 2007-08 Assessment Year: 2007-08 Maruti Suzuki India Ltd., Vs. Additional Cit, Plot No.1, Nelson Mandela Road, Range-6, Vasant Road, New Delhi. New Delhi. (Pan: Aaacm0829Q) (Appellant) (Respondent) Assessee By: S/Shri Ajay Vohra, Sr. Adv. Neeraj Jain, Rohit Jain, Adv. Romit Katyal & Ms. Tejasvi Jain, Cas Department By:Shri Amrendra Kumar, Cit(Dr)

For Appellant: S/Shri Ajay Vohra, Sr. Adv. NeerajFor Respondent: Shri Amrendra Kumar, CIT(DR)

…eliance is also placed on the following decisions, wherein it has been held that where no expenditure was actually incurred to earn dividend income, disallowance under section 14A cannot be made on the basis of mere presumption: CIT v. Hero Cycles: : (2009): 323 ITR 518 (P&H) CIT v. Metalman Auto P. Ltd.: 336 ITR 434 (P&H) M/s Maxpak Investment Ltd (ITA No.2632/Del/2003) (Del. Tri.) 66 Wimco Seedlings Limited v. DCIT: 107 ITD 267 (Del. Tri.)(TM) ACIT v. Eicher Limited: 101 TTJ 369 (Del.) 17.4 Furthermore, in the following cases it has been held that for making a disallowance under section 14A of the Act, th…

DCIT (OSD) RG 10(1), Mumbai vs. Godrej Agrovet Ltd, Mumbai

ITA 1278/MUM/2013[2009-10]Status: DisposedITAT Mumbai05 Jul 2016AY 2009-10

Bench: Shri Joginder Singh & Shri Rajendraassessment Years:2008-09

Section 14ASection 43(6)

…, however, could have utilized its surplus funds in repaying the borrowings instead of investing in shares and by not doing so, there was diversion of borrowed funds towards investment in shares to earn dividend income. In the case of CIT vs. Hero Cycles Ltd. 323 ITR 518 cited by the ld. Counsel for the assessee, a similar contention was raised in the context of disallowance of interest expenditure u/s 14A and reliance in support of this contention was placed on behalf of the Revenue on the decision in the case of CIT vs. Abhishek Industries Ltd. 286 ITR 1. The Hon’ble Punjab & Haryana High Court, however, did no…

DCIT 10(2), Mumbai vs. Godrej Agrovet Ltd, Mumbai

ITA 152/MUM/2012[2008-09]Status: DisposedITAT Mumbai05 Jul 2016AY 2008-09

Bench: Shri Joginder Singh & Shri Rajendraassessment Years:2008-09

Section 14ASection 43(6)

…, however, could have utilized its surplus funds in repaying the borrowings instead of investing in shares and by not doing so, there was diversion of borrowed funds towards investment in shares to earn dividend income. In the case of CIT vs. Hero Cycles Ltd. 323 ITR 518 cited by the ld. Counsel for the assessee, a similar contention was raised in the context of disallowance of interest expenditure u/s 14A and reliance in support of this contention was placed on behalf of the Revenue on the decision in the case of CIT vs. Abhishek Industries Ltd. 286 ITR 1. The Hon’ble Punjab & Haryana High Court, however, did no…

ACIT, New Delhi vs. M/S. Crown Corporation Pvt. Ltd., New Delhi

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

ITA 4634/DEL/2013[2009-10]Status: DisposedITAT Delhi27 Jun 2016AY 2009-10

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Kuldip Singh Shri Kuldip Singhshri Kuldip Singh Shri Kuldip Singh

…, vide reply dated 13th October, 2011, furnished the explanation saying that no expenditure was incurred for earning of exempt income. He has also relied upon the decision of Hon’ble Punjab & Haryana High Court in the case of CIT Vs. Hero Cycles Ltd. – [2010] 323 ITR 518 (P&H) so as to buttress its claim that the expenditure can be disallowed u/s 14A only if it is clearly identified to be incurred for the purpose of earning exempt income. He also submitted the statement of calculation under Rule 8D as was directed by the Assessing Officer. The Assessing Officer did not at all consider the assessee’s submission an…

M/S Crown Corporation (P) Ltd, New Delhi vs. ACIT, New Delhi

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

ITA 4463/DEL/2013[2009-10]Status: DisposedITAT Delhi27 Jun 2016AY 2009-10

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Kuldip Singh Shri Kuldip Singhshri Kuldip Singh Shri Kuldip Singh

…, vide reply dated 13th October, 2011, furnished the explanation saying that no expenditure was incurred for earning of exempt income. He has also relied upon the decision of Hon’ble Punjab & Haryana High Court in the case of CIT Vs. Hero Cycles Ltd. – [2010] 323 ITR 518 (P&H) so as to buttress its claim that the expenditure can be disallowed u/s 14A only if it is clearly identified to be incurred for the purpose of earning exempt income. He also submitted the statement of calculation under Rule 8D as was directed by the Assessing Officer. The Assessing Officer did not at all consider the assessee’s submission an…

Bec Impex International P.Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

Accordingly the appeal filed by the assessee is hereby allowed for statistical purpose

ITA 2462/MUM/2013[2009-10]Status: DisposedITAT Mumbai24 Jun 2016AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.2462/M/13 ("नधा"रण वष" / Assessment Year: 2009-10) M/S. Bec Impex The Dy. Commissioner Of बनाम/ International Pvt. Ltd. Income Tax Circle 3(1) Vs. C/O. Karnavat & Co. Mumbai 2A Kitab Mahal, 1St Floor, 192, Dr.D.N.Road, Mumbai - 400001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb0107C

For Appellant: Shri Sunil HirawatFor Respondent: Shri Sumit Kumar
Section 142(1)Section 143(2)Section 14A

…f expenses with the investment incurred to earn the exempt income, therefore, disallowance of @ 0.5% of the investment of Rs.5,31,609/- is liable to be deleted in the interest of justice and also placed reliance on the law settled in CIT Vs. Hero Cycles (P&H) 323 ITR 518 and ACIT Vs. Eicher Ltd. 101 TTJ (Del) 369. However, on the other hand the learned representative of the department has strongly relied upon the order passed by the CIT(A). In view of the arguments advanced by learned representative of the parties and perusing the record carefully, it came into notice that the share capital and reserve and surplu…

Shri Suresh Verma, Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 1152/DEL/2013[2010-11]Status: DisposedITAT Delhi14 Jun 2016AY 2010-11
Section 132Section 133ASection 143Section 14A

…shown to us. The Punjab and Haryana High Court in Commissioner of Income Tax, Faridabad Vs. M/s. Lakhani Marketing Incl., ITA No. 970/2008, decided on 02.04.2014, made reference to two earlier decisions of the same Court in CIT Vs. Hero Cycles Limited, [2010] 323 ITR 518 and CIT Vs. Winsome Textile Industries Limited, [2009] 319 ITR 204 to hold that Section 14A cannot be invoked when no exempt income was earned. The second decision is of the Gujarat High Court in Commissioner of Income Tax-I Vs. Corrtech Energy (P.) Ltd. [2014] 223 Taxmann 130 (Guj.). The third decision is of the Allahabad High Court in Income Ta…

Saurashtra Fuels P.Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

In the result, assessee appeal in ITA No 7274/Mum/2012 for assessment year 2009-10 is partly allowed

ITA 7273/MUM/2012[2007-08]Status: DisposedITAT Mumbai06 Jun 2016AY 2007-08

Bench: Shri Saktijit Dey & Shri Ramit Kochar

For Respondent: Shri Ritesh Mishra(D.R.)
Section 143(2)Section 143(3)Section 14ASection 80M

…. Maharashtra Seamless Limited 138 TTJ 244(Del) b) Yatish Trading Company Private Limited v. ACIT 129 ITD 237(Mum.) c) G.D.Metsteel Private Limited v. ACIT 47 SOT 62(Mum.) d) CIT v. Winsome Textiles Industries Limited 319 ITR 204(P&H HC) e) CIT v. Hero Cycles 323 ITR 518(P&H) f) Voltas Limited v. JCIT 125 TTJ 601(Mum.) g) K.J.Arora v. DCIT 180 Taxman 131(Del.) h) Dishman Pharmaceuticals & Chemicals Limited v. DCIT 45 SOT 37(Ahd.) i) ACIT v. Delite Enterprises Private Limited 135 TTJ 663(Mum.) j) Godrej and Boyce Manufacturing Company Limited 328 ITR 81 (Bom.) The assessee company further submitted that out of to…

Ge Capital Services India vs. Addl CIT Range 2

In the result, the appeals of the assessee and Revenue are partly allowed for

ITA 2898/DEL/2007[2000-2001]Status: DisposedITAT Delhi06 Jun 2016AY 2000-2001

Bench: Smt Diva Singh & Sh.L.P.Sahu

Section 14ASection 234DSection 45J

…s Ld. CIT(A) has restricted the disallowance to the extent of 5% of gross total income. Both the authorities have not made any finding of fact of incurring of any expenditure in this respect. Hon’ble Punjab & Haryana High Court in the case of Hero Cycles Ltd. 323 ITR 518 has held that disallowance u/s 14A requires finding of incurring of expenditure and where it is found that for earning exempt income, no expenditure has been incurred, disallowance u/s 14A cannot be made. Ld. A.R. has also invited our attention to para 28 of Maxopp Investments case decided by Hon'ble Delhi High Court and has argued that the Hon'b…

DCIT Circle 12 (1) vs. G.E. Capital Services India

In the result, the appeals of the assessee and Revenue are partly allowed for

ITA 2808/DEL/2007[2001-2002]Status: DisposedITAT Delhi06 Jun 2016AY 2001-2002

Bench: Smt Diva Singh & Sh.L.P.Sahu

Section 14ASection 234DSection 45J

…s Ld. CIT(A) has restricted the disallowance to the extent of 5% of gross total income. Both the authorities have not made any finding of fact of incurring of any expenditure in this respect. Hon’ble Punjab & Haryana High Court in the case of Hero Cycles Ltd. 323 ITR 518 has held that disallowance u/s 14A requires finding of incurring of expenditure and where it is found that for earning exempt income, no expenditure has been incurred, disallowance u/s 14A cannot be made. Ld. A.R. has also invited our attention to para 28 of Maxopp Investments case decided by Hon'ble Delhi High Court and has argued that the Hon'b…

Crescent Organics P.Ltd, Mumbai vs. Asst CIT 10(1), Mumbai

ITA 6428/MUM/2014[2010-11]Status: DisposedITAT Mumbai30 May 2016AY 2010-11

Bench: S/Shjoginder Singh & Rajendraआयकर आयकर अपील अपील संसंसंसं./I.T.A./6428/Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2010-11 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Crescent Organics Pvt. Ltd. Dcit-10(1) Windsor, 2Nd Floor, Cst Road Mumbai. Kalina, Santacruz (E) Vs. Mumbai-400 098. Pan:Aaacc 1690 D (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Dr. Darsi Suman Ratham-Dr Assessee By: Shri Piyush Chhajed-Ar’S सुनवाई क" तारीख / Date Of Hearing: 30.05.2016 घोषणा क" तारीख / Date Of Pronouncement: 30.05.2016 आयकर आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग" अ"तग"त आदेश आदेश आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग" अ"तग" आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा लेखा सद"य लेखा लेखा सद"य सद"य राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार Per Rajendra, Am- अनुसार Challenging The Order Dt.8.7.2014 Of Cit(A)-21,Mumbai, The Assessee Has Filed The Present Appeal.Assessee-Company, Engaged In The Business Of Trading & Indenting Of Chemicals, Filed Its Return Of Income 27.09.2010, Declaring Total Income At Rs.17.37 Crores. A Revised Return Was Filed On 10.8.2011 Wherein The Income Was Revised At Rs.17.45 Crores .The Assessing Officer (Ao) Completed The Assessment U/S.143(3) Of The Act,Determining The Total Income Of The Assessee At Rs.17.62 Crores.

For Appellant: Shri Piyush Chhajed-AR’sFor Respondent: Dr. Darsi Suman Ratham-DR
Section 143(3)Section 14ASection 254(1)

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, , , , मुंबई आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई मुंबई “सी मुंबई सी सी ” ” ” ” खंडपीठ सी खंडपीठ खंडपीठ खंडपीठ Income-tax Appellate Tribunal “ C ”Bench Mumbai सव"ी जोिग"दर "सह, "याियक सद"य एवं राजे"", लेखा सद"य Before S/ShJoginder Singh,Judicial Member & Rajendra,Accountant Member आयकर आयकर अपील अपील संसंसंसं./I.T.A./6428/Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2010-11 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Crescent Organics Pvt. Ltd. DCIT-10(1) Windsor, 2nd Floor, CST Road Mumbai. Kalina, Santacruz (E) Vs. Mumbai-400 098. PAN:AAACC 1690 D (अपीलाथ"…

Gvn Fuels Limited, Howrah vs. D.C.I.T., Circle - I, Kolkata

In the result, the grounds of appeal of assessee are partly allowed for statistical purposes

ITA 2278/KOL/2013[]Status: DisposedITAT Kolkata25 May 2016

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Sunil Surana, FCAFor Respondent: Md. Ghayas Uddin Ansari, JCIT, Sr. DR
Section 143(1)Section 14A

…shown to us. The Punjab and Haryana High Court in Commissioner of Income Tax, Faridabad Vs. M/s. Lakhani Marketing Incl., ITA No. 970/2008, decided on 02.04.2014, made reference to two earlier decisions of the same Court in CIT Vs. Hero Cycles Limited, [2010] 323 ITR 518 and CIT Vs. Winsome Textile Industries Limited, [2009] 319 ITR 204 to hold that Section 14A cannot be invoked when no exempt income was earned. The second decision is of the Gujarat High Court in Commissioner of Income Tax-I Vs. Corrtecb Energy (P.) Ltd. [2014] 223 Taxmann 130 (Guj .). The third decision is of the AlIahabad High Court in Income T…

Vishesh H Parekh, Mumbai vs. Asst CIT 20(3), Mumbai

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

ITA 4818/MUM/2014[2009-10]Status: DisposedITAT Mumbai25 May 2016AY 2009-10

Bench: Shri Jason P. Boaz, Am & Shri Sandeep Gosain, Jm Shri Vishesh H. Parekh, 601-A, Vs. The Asst. Commissioner Of Lok Darshan Military Road, Marol, Income Tax 20(3), Andheri (E), Mumbai 400 059 Mumbai Pan: Agvpp 2722P Appellant .. Respondent

Section 14Section 143Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL “F”, BENCH MUMBAI BEFORE SHRI JASON P. BOAZ, AM AND SHRI SANDEEP GOSAIN, JM Shri Vishesh H. Parekh, 601-A, Vs. The Asst. Commissioner of Lok Darshan Military Road, Marol, Income Tax 20(3), Andheri (E), Mumbai 400 059 Mumbai PAN: AGVPP 2722P Appellant .. Respondent Appellant by S/Shri S. C. Tiwari and Ruteja Parmar, ARs Respondent by Shri G. M. Doss (CIT DR) Date of hearing: 13-04-2016 Date of pronouncement: 25-05-2016 O R D E R PER SANDEEP GOSAIN,J.M: The present appeal has been filed by the assessee against the order of the learned CIT (A)-31, Mumbai dated 07-05-2014 pa…

Premier Finance & Trading Co. Ltd, Mumbai vs. ACIT Cir 7(1), Mumbai

ITA 2862/MUM/2013[2008-09]Status: DisposedITAT Mumbai25 May 2016AY 2008-09
For Appellant: S/Shri Sandeep Jhanwar and Hitendra Bhandari –AR.sFor Respondent: Shri Sanjay Bare-DR
Section 254(1)Section 36Section 36(1)(iii)Section 37(1)

…IT v. Cocanada Radhaswami Bank Ltd. [1965] 57 ITR 306 (SC) (para 14) iv. CIT v. Corrtech Energy (P.) Ltd. [2015] 372 ITR 97 (Guj) (para 15) v. CIT v.Holcim India (P.) Ltd.(I.T.A.No.486 of 2014 decided on 5- 9-2014) (para 15) vi. CIT v. Hero Cycles Ltd. [2010] 323 ITR 518 (P&H) (para 15) vii. CIT v. Lakhani Marketing Incl. [2015] 4 ITR-OL 246 (P&H) (para 15) viii. CIT v. Rajendra Prasad Moody [1978] 115 ITR 519 (SC) (para 10) ix.CIT v.Shivam Motors (P.) Ltd. (ITA No. 88 of 2014 decided on 5-5-2014) (para 15) x. IT v. Winsome Textile Industries Ltd. [2009] 319 ITR 204 (P&H) (para 15) , xi. Eicher Goodearth Ltd. vs.…

Cni Research Ltd, Mumbai vs. DCIT 5(1), Mumbai

Appeal of the assessee is allowed

ITA 4395/MUM/2014[2010-11]Status: DisposedITAT Mumbai18 May 2016AY 2010-11

Bench: Shri Joginder Singh & Shri Rajendraassessment Year: 2010-11 M/S Cni Research Ltd. Dcit-5(1), A/12 Gokul Arcade, Mumbai बनाम/ Sahar Road, Vile Parle (E), Vs. Mumbai-400057 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaccc2842H

Section 14A

…7 and 30 of the paper book by placing reliance upon the decision in the case of Iqbal M. Chagla (67 SOT 123)(Mum), Godrej & Boyce 328 ITR 81(Bom.), Walfort Share & Stock Broker 326 ITR 1 (SC), Maxoop Investment Ltd. 347 ITR 272 (Del.) and Hero Cycles Ltd. 323 ITR 518 (P & H). On the other hand, Shri V. K. Agarwal, ld. DR, defended the disallowance/addition made by the ld. Assessing Officer and confirmed by the Ld. Commissioner of Income Tax (Appeal). 3 M/s CNI Research Ltd. 2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assess…

ACIT Cir 4(2), Mumbai vs. Visaria Securities P.Ltd, Mumbai

In the result, the Revenue’s appeal for A

ITA 6900/MUM/2013[2010-11]Status: DisposedITAT Mumbai11 May 2016AY 2010-11

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainacit, Circle 4(2) M/S. Visaria Securities P. Ltd. Room No. 642, 6Th Floor 301-A, Commerce House Vs. Aayakar Bhavan, M.K. Road 140, N.M. Road, Fountain Mumbai 400020 Mumbai 400001 Pan - Aaacv7721L Appellant Respondent

For Respondent: Shri Niraj D. Sheth
Section 143(3)Section 14ASection 94(7)

…en incurred by the assessee for earning its dividend income. Merely, an ad hoc disallowance was made. The onus was on the AO 5 M/s. Visaria Securities P. Ltd. to establish any such expenditure, This onus has not been discharged. In "CIT VS. Hero Cycles" (P&H)323 ITR 518, under similar circumstances, it was held that the disallowance u/s 14A of the Act requires a clear finding of incurring of expenditure and that no disallowance can be made on the basis of presumptions. In "ACIT vs. Eicher Ltd ", 101 TTJ(Del.) 369, that it was held that the burden is on the AO to establish nexus of expenses incurred with the earn…

PAN India Network Infravest P.Ltd, Mumbai vs. DCIT Cir 7(1), Mumbai

The appeal of the assessee stands allowed

ITA 4170/MUM/2013[2009-10]Status: DisposedITAT Mumbai11 May 2016AY 2009-10
For Appellant: Shri Niraj Seth-ARFor Respondent: Shri Love Kumar-DR
Section 143(3)Section 14ASection 254(1)

…IT v. Cocanada Radhaswami Bank Ltd. [1965] 57 ITR 306 (SC) (para 14) iv. CIT v. Corrtech Energy (P.) Ltd. [2015] 372 ITR 97 (Guj) (para 15) v. CIT v.Holcim India (P.) Ltd.(I.T.A.No.486 of 2014 decided on 5- 9-2014) (para 15) vi. CIT v. Hero Cycles Ltd. [2010] 323 ITR 518 (P&H) (para 15) vii. CIT v. Lakhani Marketing Incl. [2015] 4 ITR-OL 246 (P&H) (para 15) viii. CIT v. Rajendra Prasad Moody [1978] 115 ITR 519 (SC) (para 10) ix.CIT v.Shivam Motors (P.) Ltd. (ITA No. 88 of 2014 decided on 5-5-2014) (para 15) x. IT v. Winsome Textile Industries Ltd. [2009] 319 ITR 204 (P&H) (para 15) , xi. Eicher Goodearth Ltd. vs.…