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 366,470 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.

M/S Tata Global Beverages Limited, Kolkata vs. The DCIT, Circle-4(2), Kolkata

In the result, the appeals filed by the assessee for AY 2012-

ITA 1899/KOL/2017[2013-14]Status: DisposedITAT Kolkata13 Feb 2023AY 2013-14

Bench: Dr. Manish Borad & Sonjoy Sarma

Section 143(3)Section 14ASection 92B

…abad Bank [ITA No. 1282 of 2012 dtd 01-06-2016 (Koi)] ACIT-vs.- Pawan Kumar Jhunjhunwala [2016] 157ITD 667 (Koi) ACIT-vs.- SIL Investment Ltd. [2012] 54 SOT 54 (Delhi) Priya Exhibitors (P.) Ltd. vs. ACIT[2012] 54 SOT356 (Delhi) CIT vs. Hero Cycles Ltd. [2010] 323 ITR 518 (Punj& Har) Triveni Engineering & Industries Ltd. -vs.- Addl. CIT [2020] 118 taxmann.com 301 (Delhi - Trib.) 3.6 As per Section 14A(2), provision of Rule 8D comes in to play only when the AO records a finding that he is not satisfied with the assessee’s method. Reliance in this regard is placed on the decision of the jurisdictional Hon'ble Calcut…

M/S Tata Global Beverages Limited, Kolkata vs. The DCIT, Circle-4(2), Kolkata

In the result, the appeals filed by the assessee for AY 2012-

ITA 1854/KOL/2016[2012-13]Status: DisposedITAT Kolkata13 Feb 2023AY 2012-13

Bench: Dr. Manish Borad & Sonjoy Sarma

Section 143(3)Section 14ASection 92B

…abad Bank [ITA No. 1282 of 2012 dtd 01-06-2016 (Koi)] ACIT-vs.- Pawan Kumar Jhunjhunwala [2016] 157ITD 667 (Koi) ACIT-vs.- SIL Investment Ltd. [2012] 54 SOT 54 (Delhi) Priya Exhibitors (P.) Ltd. vs. ACIT[2012] 54 SOT356 (Delhi) CIT vs. Hero Cycles Ltd. [2010] 323 ITR 518 (Punj& Har) Triveni Engineering & Industries Ltd. -vs.- Addl. CIT [2020] 118 taxmann.com 301 (Delhi - Trib.) 3.6 As per Section 14A(2), provision of Rule 8D comes in to play only when the AO records a finding that he is not satisfied with the assessee’s method. Reliance in this regard is placed on the decision of the jurisdictional Hon'ble Calcut…

Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 961/DEL/2015[2010-11]Status: DisposedITAT Delhi09 Feb 2023AY 2010-11

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2010-11] Maruti Suzuki India Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. Pan-Aaacm0829Q Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. Pan-Aaacm0829Q Appellant Respondent Appellant By Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, Ca Respondent By Shri G.C.Srivastava, Adv., Shri Kalrav Mehrotra, Adv. & Shri Mayank Patawari, Ca Date Of Hearing 11.11.2022 Date Of Pronouncement 09.02.2023

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…assessee has placed reliance on following judicial pronouncements:- [i] CIT vs Walfort Share & Stock Brokers 326 ITR 1 (SC); [ii] Godrej & Boyce Mfg.Co.Ltd. vs DCIT 328 ITR 81 (Bom.); [iii] Maxopp Investment Ltd. 203 Taxman 364 (Del.); [iv] CIT vs Hero Cycles 323 ITR 518 (P&H); [v] CIT vs Metalman Auto P.Ltd. 336 ITR 434 (P&H); [vi] CIT vs Reliance Utilities and Power Ltd. 313 ITR 340 (Bom.); [vii] CIT vs Reliance Industries Ltd. 339 ITR 632 (Bom.); [ix] CIT vs Ms. Sushma Kapoor 319 ITR 299 (Del). 43. Ld. Counsel for the assessee submitted that looking to the facts of the present case, no disallowance u/s 14A of…

DCIT, New Delhi vs. M/S. Maruti Suzuki India Ltd., New Delhi

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

ITA 1507/DEL/2015[2010-11]Status: DisposedITAT Delhi09 Feb 2023AY 2010-11

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2010-11] Maruti Suzuki India Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. Pan-Aaacm0829Q Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. Pan-Aaacm0829Q Appellant Respondent Appellant By Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, Ca Respondent By Shri G.C.Srivastava, Adv., Shri Kalrav Mehrotra, Adv. & Shri Mayank Patawari, Ca Date Of Hearing 11.11.2022 Date Of Pronouncement 09.02.2023

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…assessee has placed reliance on following judicial pronouncements:- [i] CIT vs Walfort Share & Stock Brokers 326 ITR 1 (SC); [ii] Godrej & Boyce Mfg.Co.Ltd. vs DCIT 328 ITR 81 (Bom.); [iii] Maxopp Investment Ltd. 203 Taxman 364 (Del.); [iv] CIT vs Hero Cycles 323 ITR 518 (P&H); [v] CIT vs Metalman Auto P.Ltd. 336 ITR 434 (P&H); [vi] CIT vs Reliance Utilities and Power Ltd. 313 ITR 340 (Bom.); [vii] CIT vs Reliance Industries Ltd. 339 ITR 632 (Bom.); [ix] CIT vs Ms. Sushma Kapoor 319 ITR 299 (Del). 43. Ld. Counsel for the assessee submitted that looking to the facts of the present case, no disallowance u/s 14A of…

Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore vs. M/S Infosys Limited, Bangalore

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

ITA 809/BANG/2018[2013-14]Status: DisposedITAT Bangalore09 Jan 2023AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Sri Sreenivas T. Bidari, D.R
Section 11Section 14ASection 194JSection 234BSection 40Section 80J

…IT(TP)A No.735/Bang/2018 & M/s. Infosys Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER IT(TP)A No.735/Bang/2018 Assessment Year: 2013-14 M/s. Infosys Ltd. Electronic City Hosur Road ACIT Circle-3(1)(1) Vs. Bangalore 560 100 Bangalore PAN NO : AAACI4798L APPELLANT RESPONDENT Assessment Year: 2013-14 Deputy Commissioner of M/s. Infosys Ltd. Income-tax Electronic City Circle-3(1)(1) Vs. Hosur Road Bangalore Bangalore 560 100 APPELLANT RESPONDENT Appellant by : Shri Padam Chand Khincha, A.R…

M/S Infosys Ltd, Bangalor E vs. The Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

ITA 735/BANG/2018[2013-14]Status: DisposedITAT Bangalore09 Jan 2023AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Sri Sreenivas T. Bidari, D.R
Section 11Section 14ASection 194JSection 234BSection 40Section 80J

…IT(TP)A No.735/Bang/2018 & M/s. Infosys Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER IT(TP)A No.735/Bang/2018 Assessment Year: 2013-14 M/s. Infosys Ltd. Electronic City Hosur Road ACIT Circle-3(1)(1) Vs. Bangalore 560 100 Bangalore PAN NO : AAACI4798L APPELLANT RESPONDENT Assessment Year: 2013-14 Deputy Commissioner of M/s. Infosys Ltd. Income-tax Electronic City Circle-3(1)(1) Vs. Hosur Road Bangalore Bangalore 560 100 APPELLANT RESPONDENT Appellant by : Shri Padam Chand Khincha, A.R…

ACIT, New Delhi vs. M/S. India Bulls Power Ltd., New Delhi

The appeals are dismissed in regard to the first question

ITA 2013/DEL/2017[2011-12]Status: DisposedITAT Delhi05 Jan 2023AY 2011-12

Bench: Shri Anil Chaturvedi & Ms. Astha Chandraasstt. Year: 2011-12 Acit, Vs. India Bulls Power Ltd. (Now Known Circle-21(1), As Rattan India Power Ltd.) New Delhi. 5Th Floor, Tower-B, Worldmark-1, Aerocity, New Delhi- 110 037 Pan Aalcs2063D (Appellant) (Respondent)

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri Anuj Garg, Sr. DR
Section 10Section 143(3)Section 14ASection 154

…issioner of Income Tax, Faridabad v. M/s. Lakhani Marketing Ind. (decision dated 2nd April 2014 of the High Court of Punjab and Haryana in ITA No. 970/2008) which in turn referred to two earlier decisions of the same Court in CIT v. Hero Cycles Limited [2010] 323 ITR 518 and CIT v. Winsome Textile Industries Ltd. [2009] 319 ITR 204. The second was of the Gujarat High Court in Commissioner of Income Tax-1 v. Corrtech Energy (P) Ltd. [2014] 223 Taxmann 130 (Guj.) and the third of the Allahabad High Court in Commissioner of Income Tax, Kanpur v. Shivam Motors (P) Ltd. (decision dated 5th May 2014 in ITA No. 88/2014)…

ACIT, Circle- 7(1), New Delhi vs. Decent Financial Services Pvt. Ltd., New Delhi

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

ITA 5707/DEL/2019[2015-16]Status: DisposedITAT Delhi24 Nov 2022AY 2015-16

Bench: Shri C.M. Garg & Shri Pradip Kumar Kediaassessment Year: 2015-16 Acit, Vs. Decent Financial Circle-5(2), Services Pvt. Ltd., New Delhi. A-86, Dd Shed, Okhla Industrial Area, Phase-I, New Delhi. Pan: Aaacd2899P (Appellant) (Respondent) Assessee By : Shri Amit Sharma, Advocate Revenue By : Shri Kumar Pranav, Sr. Dr Date Of Hearing : 21.11.2022 Date Of Pronouncement : 24.11.2022 Order Per C.M. Garg, Jm: This Appeal Filed By The Revenue Is Directed Against The Order Dated 10.04.2019 Of The Cit(A)-3, New Delhi, Relating To Assessment Year 2015-16. 2. The Ground Of Appeal Raised By The Revenue Reads As Under:- “1. On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A)Has Grossly Erred In Deleting The Disallowance Made By The Ao U/S 14A R.W. Rule 8D Of The Act Of Rs.1,62,35,930/-. 2. The Appellant Craves Leave To Add, Amend Or Forego Any Ground(S) Of Appeal At Any Time Before Or During The Hearing Of This Appeal.” 3. The Ld. Sr. Dr, Supporting The Assessment Order Dated 26.12.2017 Passed U/S 143(3) Of The Income-Tax Act, 1961 (For Short, ‘The Act’) Submitted That The Assessee Had Earned Substantial Dividend Income Of Rs.1,22,16,840/-, Therefore, The Ao Was Right In Making Disallowance U/S 14A Of The Act R.W.R. 8D Of The Income-Tax Rules, 1962 (For Short, ‘The Rules’). The Ld. Sr. Dr Submitted That The Assessee Has Capitalized Substantial Amount Of Interest Paid By Him On The Amount Invested, Therefore, The Amount Of Disallowance Has To Be Calculated Accordingly.

For Appellant: Shri Amit Sharma, AdvocateFor Respondent: Shri Kumar Pranav, Sr. DR
Section 143(3)Section 14A

…shown to us. The Punjab and Haryana High Court in Commissioner of Income Tax, Faridabad Vs. M/s. Lakhani Marketing Inch, 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 Tax…

Dilip Hari Amdekar, Pune vs. Income-Tax Officer, Ward - 12(2), Pune

In the result, appeal of the Assessee is Partly Allowed

ITA 1303/PUN/2018[2012-13]Status: DisposedITAT Pune03 Nov 2022AY 2012-13

Bench: Shri S.S.Godara & Dr. Dipak P. Ripote. आयकर अपीलसं. / Ita No.1303/Pun/2018 िनधा"रण वष" / Assessment Year : 2012-13 Dilip Hari Ambedkar, The Income Tax Officer, C/O.Ambedkar & Associates, Vs Ward-12(2), Pune. Flat No.302, Jai Ravi Appt. Cts No.1002/44, Rajendranagar, Behind Tendulkar Jogging Track, Navi Peth, Pune – 411030. Pan: Aappa 3065 J Appellant / Assessee Respondent / Revenue Assessee By None Revenue By Shri S P Walimbe – Dr Date Of Hearing 10/08/2022 Date Of Pronouncement 03/11/2022 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Is Directed Against The Order Of Ld.Commissioner Of Income Tax(Appeals)-8, Pune, Dated 05.06.2018 For The A.Y. 2012-13 Under Section 250 Of The Income Tax Act, 1961(In Short “The Act”). The Assessee Has Raised The Following Grounds Of Appeal: “1. The Learned Cit(A) Erred In Upholding The Addition Made By Ao Of Rs.5,49,458/- U/S 14A Read With Rule 8D (Para 3) 2. The Learned Cit (A) Failed To Appreciate That Separate Books Of Accounts For Business & Investments Were Maintained. 3. The Learned Cit (A) Has Failed To Show That Expenditure Is Incurred By The Assesse For Investment.

Section 14ASection 250

…egard to the accounts of the assessee. This recording of satisfaction is a condition precedent in accordance with the law laid down in Godrej & Boyce Manufacturing Co 394 ITR 449 (SC) & Maxopp Investment Ltd 247 CTR 162 (Del); In CIT Vs. Hero Cycle Ltd ( P&B, 323 ITR 518), it was held that “ The expression "expenditure incurred" in s. 14A refers to actual expenditure and not to some imagined expenditure. If no expenditure is incurred in relation to the exempt income, no disallowance can be made u/s 14A” In Maxopp Investment Ltd vs CIT ( Delhi High Court ,***), it was held that “The AO cannot proceed to determine…

M/S. Harman Connected Services Corporation India Private Limited, Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 3(1)(2), Bengaluru

In the result, the appeal is partly allowed

ITA 2243/BANG/2019[2015-16]Status: DisposedITAT Bangalore16 Sept 2022AY 2015-16

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Shri. Biju, M.K., CIT(DR)(ITAT), Bengaluru
Section 115JSection 143(2)Section 143(3)Section 14ASection 80GSection 92C

…red to the decisions, which we have noted earlier i.e.: - Shivam Motors (P) Ltd's. case (supra) - Winsome Textile Industries Ltd's. case (supra) - Lakhani Marketing Inc. case (supra) - Corrtech Energy (P.) Ltd's. case (supra). - CIT v. Hero Cycles Ltd. [2010] 323 ITR 518/189 Taxman 50 (Punj. & Har.). 11.2 The submission of ld. Principal CIT(DR) is that ITAT in the case of Delhi Special Bench in the case of Cheminvest Ltd. (supra) has specifically held that even if there is no exempt income, the provisions of section 14A are applicable in view of the decision of Hon'ble Supreme Court in the case of Rajendra Prasad…

DCIT, Circle- 21(1), New Delhi vs. Religare Enterprises Ltd., New Delhi

In the result, revenue’s appeal is dismissed and cross-objection

ITA 7552/DEL/2018[2014-15]Status: HeardITAT Delhi29 Aug 2022AY 2014-15

Bench: Shri Saktijit Dey & Shri Pradip Kumar Kedia:Assessment Year: 2014-15 Deputy Commissioner Of Vs. M/S. Religare Enterprises Income-Tax, Circle-21(1), Ltd., 2Nd Floor, Rajlok New Delhi Building, 24-Nehru Place, New Delhi-110019 Pan :Aaacv5888N (Appellant) (Respondent)

Section 14A

…l No. 970 of2008, decided on 2nd April, 2014) [reported at (2014) 272 CTR (P&H) 265: (2014) 111 DTR (P&H) 149— Ed.], made reference to two earlier decisions of the same Court in CIT vs. Hero Cycles Ltd. (2010) 233 CTR (P&H) 74: (2010) 31 DTR (P&H) 301: (2010) 323 ITR 518(P&H) and CITvs. Winsome Textile Industries Ltd. (2009) 319 ITR 204(P&H) to hold that s. 14A cannot be invoked when no exempt income was earned. The second decision is of the Gujarat High Court in CIT vs. Corrtech Energy (P) Ltd. (2014) 272 CTR (Guj) 20 ITA No. 7552 & CO. 27/Del./2018 262: (2014) 111 DTR (Guj) 146: (2014) 223 Taxman 130 (Guj). T…

DCIT, New Delhi vs. M/S Ntpc Ltd., New Delhi

ITA 156/DEL/2016[2011-12]Status: DisposedITAT Delhi05 Aug 2022AY 2011-12

Bench: Sh. A.D. Jaindr. B. R. R. Kumar

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Sh. Bhavnesh Kulsheshtha, CIT-DR
Section 80Section 80I

…re incurred" in section 14A refers to expenditure on rent, taxes, salaries, interest, etc. in respect of which allowances are provided for (see sections 30 to 37)……………..” 11.2 Hon’ble Punjab & Haryana High Court in their decision in CIT vs. Hero Cycles Ltd., 323 ITR 518 have observed that disallowance under section 14A requires finding of incurring of expenditure and where it is found that for earning exempted income no expenditure has been incurred, disallowance under section 14A cannot stand. 11.3 Hon’ble Kerala High Court in their decision in Catholic Syrian Bank Ltd. (supra) held that there being no precise…

Dcir, New Delhi vs. M/S Ntpc Ltd., New Delhi

ITA 5704/DEL/2015[2007-08]Status: DisposedITAT Delhi05 Aug 2022AY 2007-08

Bench: Sh. A.D. Jaindr. B. R. R. Kumar

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Sh. Bhavnesh Kulsheshtha, CIT-DR
Section 80Section 80I

…re incurred" in section 14A refers to expenditure on rent, taxes, salaries, interest, etc. in respect of which allowances are provided for (see sections 30 to 37)……………..” 11.2 Hon’ble Punjab & Haryana High Court in their decision in CIT vs. Hero Cycles Ltd., 323 ITR 518 have observed that disallowance under section 14A requires finding of incurring of expenditure and where it is found that for earning exempted income no expenditure has been incurred, disallowance under section 14A cannot stand. 11.3 Hon’ble Kerala High Court in their decision in Catholic Syrian Bank Ltd. (supra) held that there being no precise…

M/S. Atria Convergence Technologies Limited, Bangalore vs. Assistant Commissioner of Income Tax, Special Range- 1, Bangalore

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

ITA 2475/BANG/2019[2011-12]Status: DisposedITAT Bangalore18 Jul 2022AY 2011-12

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy Sassessment Year : 2011-12

For Appellant: Shri Aliasger Rampurwala, CAFor Respondent: Shri T. Roumuan Paite, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 14ASection 194JSection 40

…red to the decisions, which we have noted earlier i.e.: - Shivam Motors (P) Ltd's. case (supra) - Winsome Textile Industries Ltd's. case (supra) - Lakhani Marketing Inc. case (supra) - Corrtech Energy (P.) Ltd's. case (supra). - CIT v. Hero Cycles Ltd. [2010] 323 ITR 518/189 Taxman 50 (Punj. & Har.). 11.2 The submission of ld. Principal CIT(DR) is that ITAT in the case of Delhi Special Bench in the case of Cheminvest Ltd. (supra) has specifically held that even if there is no exempt income, the provisions of section 14A are applicable in view of the decision of Hon'ble Supreme Court in the case of Rajendra Prasad…

JCIT (OSD) Circle- 12(2), New Delhi vs. International Hospital Ltd. (Before Amalgamation M/S Escorts Hospital and Research Centre Ltd), New Delhi

Accordingly, the grounds raised are not sustainable; the appeal of Revenue is dismissed

ITA 5232/DEL/2019[2013-14]Status: DisposedITAT Delhi12 Jul 2022AY 2013-14

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmajcit (Osd), Vs. M/S. International Hospital Ltd. Circle-12(2) (Before Amalgamation Known As New Delhi M/S. Escorts Hospital & Research Centre Ltd.) Okhla Road, Pan : Aaaci9792A New Delhi-110025 (Appellant) (Respondent)

Section 143(3)Section 14ASection 36Section 36(1)(iii)

…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. ITA 725-2018 Page 6 of 12 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 Allahab…

Smita Conductors Pvt. Ltd., Mumbai vs. Deputy Commissioner of Income Tax 3(3)(2), Mumbai

In the result, appeal filed by the assessee is allowed for statistical purpose

ITA 5115/MUM/2019[2014-15]Status: DisposedITAT Mumbai21 Jun 2022AY 2014-15

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blesmita Conductors Pvt. Ltd., V. Dcit – 3(3)(2) 1402/03 Raheja Centre Room No. 609, 6Th Floor Free Press Road Aayakar Bhavan, M.K. Road Nariman Pont, Mumbai - 400021 Mumbai - 400020 Pan: Aaacs5379K (Appellant) (Respondent) Assessee By : Shri Sunil Hirawat Department By : Shri B.K. Bagchi

For Appellant: Shri Sunil HirawatFor Respondent: Shri B.K. Bagchi
Section 14ASection 2

…enditure had been incurred by the assessee for earning its dividend income. As such, Rule 8D was not appropriately applied by the LAO. The onus was on the LAO to establish any such expenditure. This onus has not been discharged. “In “CIT v. 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 v. Eicher Ltd.” 101 TTJ (Del)369, it was held that the burden is on the LAO to establish nexus of expenses incurred with the earning of…

M/S. Syngene International Limited, Bangalore vs. Joint Commissioner of Income Tax, Special Range- 6, Bangalore

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

ITA 147/BANG/2020[2010-11]Status: DisposedITAT Bangalore13 Jun 2022AY 2010-11

Bench: Shri Chandra Poojari & Shri George George K.Assessment Year: 2010-11

For Appellant: Sri Padamchand Khincha, A.RFor Respondent: Sri Sumer Singh Meena, DR
Section 10ASection 10BSection 14ASection 250Section 32(1)(iia)Section 80

…(Karnataka) [CLC Pg.324-341] M/s. Syngene International Limited, Bangalore Page 27 of 29 • CCI Ltd v JCIT [2012] 250 CTR 291 (Kar) [CLC Pg. 316- 318] • Maxopp Investment Ltd v CIT (2011) 203 Taxman 364 (Delhi) [CLC Pg. 245265] • CIT v Hero Cycles Ltd (2010) 323 ITR 518 (P&H) [CLC Pg.266-268] • Godrej & Boyce Mfg. Co. Ltd v DCIT (2010) 328 ITR 81 (Born) [CLC Pg.269-315] • CIT v Deepak Mittal [2014] 361 ITR 131 (P&H) [CLC Pg.319-323] • Justice Sam P. Bharucha v. ACIT (2012) 53 SOT 192 (URO) / 25 taxman.com 381 (Mum.)(Trib.) [CLC Pg.324- 341] • Biocon Research Ltd. v. ACIT (2017) ITA Nos. 1250 & 1251/Bang/2016 (B…

M/S. Chambal Fertilizers and Chemicals Limited, Kota vs. Assistant Commissioner of Income Tax, Circle-2, Kota

In the result, appeal of the revenue is dismissed

ITA 744/JPR/2018[2014-15]Status: DisposedITAT Jaipur13 May 2022AY 2014-15
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…l Fertilizers & Chemicals Ltd. 15.16. Further, reliance is also placed on the following decisions laying down the similar position that where no exempt income is earned there can be no disallowance under section 14A of the Act. • CIT v. Hero Cycles Limited (323 ITR 518)(P&H) • CIT v. Winsome Textile Industries Ltd (319 ITR 204) • CIT v. Corrtech Energy (P.) Ltd 223 Taxman 130 (Guj) • CIT v. Shivam Motors (P) Ltd. (2015) 230 Taxman 63 (Del) • CIT v. Holcim India P. Ltd. (2014) 90 CCH 81 (Del) A similar issue had come up for adjudication in the appellant’s appeals in the earlier years as under:- AY 2009-10 The A…

Chambal Fertilisers and Chemicals Limited, Kota vs. ACIT, Kota

In the result, appeal of the revenue is dismissed

ITA 291/JPR/2017[2013-14]Status: DisposedITAT Jaipur13 May 2022AY 2013-14
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…l Fertilizers & Chemicals Ltd. 15.16. Further, reliance is also placed on the following decisions laying down the similar position that where no exempt income is earned there can be no disallowance under section 14A of the Act. • CIT v. Hero Cycles Limited (323 ITR 518)(P&H) • CIT v. Winsome Textile Industries Ltd (319 ITR 204) • CIT v. Corrtech Energy (P.) Ltd 223 Taxman 130 (Guj) • CIT v. Shivam Motors (P) Ltd. (2015) 230 Taxman 63 (Del) • CIT v. Holcim India P. Ltd. (2014) 90 CCH 81 (Del) A similar issue had come up for adjudication in the appellant’s appeals in the earlier years as under:- AY 2009-10 The A…

Chambal Fertilisers and Chemicals Limited, Kota vs. DCIT, Kota

In the result, appeal of the revenue is dismissed

ITA 201/JPR/2017[2012-13]Status: DisposedITAT Jaipur13 May 2022AY 2012-13
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…l Fertilizers & Chemicals Ltd. 15.16. Further, reliance is also placed on the following decisions laying down the similar position that where no exempt income is earned there can be no disallowance under section 14A of the Act. • CIT v. Hero Cycles Limited (323 ITR 518)(P&H) • CIT v. Winsome Textile Industries Ltd (319 ITR 204) • CIT v. Corrtech Energy (P.) Ltd 223 Taxman 130 (Guj) • CIT v. Shivam Motors (P) Ltd. (2015) 230 Taxman 63 (Del) • CIT v. Holcim India P. Ltd. (2014) 90 CCH 81 (Del) A similar issue had come up for adjudication in the appellant’s appeals in the earlier years as under:- AY 2009-10 The A…