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.

Petronet Lng Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is allowed

ITA 5231/DEL/2015[2010-11]Status: DisposedITAT Delhi18 Mar 2021AY 2010-11

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle India Ltd. in ITA No. 2020/Del/2014 39. The ld. AR further argued that the assessee has not earned any dividend from certain investments which may not be taken into consideration while computing the disallowance. 40. On the other hand, the ld. DR totally supported the order of the Assessing Officer on all aspects. 41. Th…

Petronet Lng Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is allowed

ITA 5230/DEL/2015[2009-10]Status: DisposedITAT Delhi18 Mar 2021AY 2009-10

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle India Ltd. in ITA No. 2020/Del/2014 39. The ld. AR further argued that the assessee has not earned any dividend from certain investments which may not be taken into consideration while computing the disallowance. 40. On the other hand, the ld. DR totally supported the order of the Assessing Officer on all aspects. 41. Th…

DCIT, New Delhi vs. M/S. Petronet Lng Ltd., New Delhi

Appeal of the assessee is allowed

ITA 4904/DEL/2015[2011-12]Status: DisposedITAT Delhi18 Mar 2021AY 2011-12

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle India Ltd. in ITA No. 2020/Del/2014 39. The ld. AR further argued that the assessee has not earned any dividend from certain investments which may not be taken into consideration while computing the disallowance. 40. On the other hand, the ld. DR totally supported the order of the Assessing Officer on all aspects. 41. Th…

DCIT, New Delhi vs. M/S. Petronet Lng Ltd., New Delhi

Appeal of the assessee is allowed

ITA 4903/DEL/2015[2010-11]Status: DisposedITAT Delhi18 Mar 2021AY 2010-11

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle India Ltd. in ITA No. 2020/Del/2014 39. The ld. AR further argued that the assessee has not earned any dividend from certain investments which may not be taken into consideration while computing the disallowance. 40. On the other hand, the ld. DR totally supported the order of the Assessing Officer on all aspects. 41. Th…

DCIT, New Delhi vs. M/S. Petronet Lng Ltd., New Delhi

Appeal of the assessee is allowed

ITA 4902/DEL/2015[2009-10]Status: DisposedITAT Delhi18 Mar 2021AY 2009-10

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle India Ltd. in ITA No. 2020/Del/2014 39. The ld. AR further argued that the assessee has not earned any dividend from certain investments which may not be taken into consideration while computing the disallowance. 40. On the other hand, the ld. DR totally supported the order of the Assessing Officer on all aspects. 41. Th…

M/S. Dabur India Ltd., New Delhi vs. Addl.CIT, New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 6525/DEL/2014[2008-09]Status: DisposedITAT Delhi18 Feb 2021AY 2008-09

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…e can be made u/s 14A of interest on borrowed funds where in case of mixed funds, it is not possible to ascertain whether there exists an nexus between borrowed funds and tax free investment. This principle has been laid down in following cases: • Hero Cycles 323 ITR 518 (P&H) • DCIT v Maharashtra Seamless Ltd. (2011) 16 Taxman.com 97 (Del) 24.7 The AO has made a disallowance of Rs, 1.57 crores u/s 14A as expenses incurred in relation to tax free dividend income of Rs. 30^000 only. This is nothing but travesty of justice Obviously, intention of the legislature was not to compute disallowance under sub-sect on 2 c…

DCIT, New Delhi vs. M/S. Dabur India Ltd., New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 6256/DEL/2014[2008-09]Status: DisposedITAT Delhi18 Feb 2021AY 2008-09

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…e can be made u/s 14A of interest on borrowed funds where in case of mixed funds, it is not possible to ascertain whether there exists an nexus between borrowed funds and tax free investment. This principle has been laid down in following cases: • Hero Cycles 323 ITR 518 (P&H) • DCIT v Maharashtra Seamless Ltd. (2011) 16 Taxman.com 97 (Del) 24.7 The AO has made a disallowance of Rs, 1.57 crores u/s 14A as expenses incurred in relation to tax free dividend income of Rs. 30^000 only. This is nothing but travesty of justice Obviously, intention of the legislature was not to compute disallowance under sub-sect on 2 c…

M/S. Dabur India Ltd., New Delhi vs. Addl.CIT, New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3241/DEL/2014[2007-08]Status: DisposedITAT Delhi18 Feb 2021AY 2007-08

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…e can be made u/s 14A of interest on borrowed funds where in case of mixed funds, it is not possible to ascertain whether there exists an nexus between borrowed funds and tax free investment. This principle has been laid down in following cases: • Hero Cycles 323 ITR 518 (P&H) • DCIT v Maharashtra Seamless Ltd. (2011) 16 Taxman.com 97 (Del) 24.7 The AO has made a disallowance of Rs, 1.57 crores u/s 14A as expenses incurred in relation to tax free dividend income of Rs. 30^000 only. This is nothing but travesty of justice Obviously, intention of the legislature was not to compute disallowance under sub-sect on 2 c…

DCIT, New Delhi vs. M/S. Dabur India Ltd., New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3114/DEL/2014[2007-08]Status: DisposedITAT Delhi18 Feb 2021AY 2007-08

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…e can be made u/s 14A of interest on borrowed funds where in case of mixed funds, it is not possible to ascertain whether there exists an nexus between borrowed funds and tax free investment. This principle has been laid down in following cases: • Hero Cycles 323 ITR 518 (P&H) • DCIT v Maharashtra Seamless Ltd. (2011) 16 Taxman.com 97 (Del) 24.7 The AO has made a disallowance of Rs, 1.57 crores u/s 14A as expenses incurred in relation to tax free dividend income of Rs. 30^000 only. This is nothing but travesty of justice Obviously, intention of the legislature was not to compute disallowance under sub-sect on 2 c…

ACIT, Circle- 31(1), New Delhi vs. Iffco Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 7367/DEL/2017[2007-08]Status: DisposedITAT Delhi06 Jan 2021AY 2007-08

Bench: Shri Amit Shukla & Shri O.P. Kant[Through Video Conferencing]

Section 143(3)Section 14A

…laws directly on the issue in favour of the assessee. The Hon’ble Punjab & Haryana High Court in CIT, Faridabad Vs. M/s. Lakhani Marketing Inc., in ITA No. 970/2008 made reference to the two earlier decisions of the same Court in CIT Vs. Hero Cycles Limited, 323 ITR 518 and CIT Vs. Winsome Textile Industries Limited, 319 ITR 204 to hold that Section 14A cannot be invoked when no exempt income was earned. The Hon’ble Gujarat High Court in CIT Vs. Corrtech Energy Pvt. Limited, 223 Taxman 130 and the Hon’ble Allahabad High Court in CIT (II), Kanpur Vs. M/s. Shivam Motors Pvt. Limited in ITA No. 88 of 2014 also held…

Boral Infotech Pvt. Ltd., Mumbai vs. I.T.O-12(1)(3), Mumbai

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

ITA 2952/MUM/2019[2013-14]Status: DisposedITAT Mumbai22 Dec 2020AY 2013-14

Bench: Shri Vikas Awasthy () & Shri N.K. Pradhan () Assessment Year: 2013-14

For Appellant: Mr. Yagnesh Desai, AR
Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC” MUMBAI BEFORE SHRI VIKAS AWASTHY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2013-14 Boral Infotech Pvt. Ltd., Income Tax Officer-12(1)(3), B-1/1, Mayur Ma-Krupa Vs. Aayakar Bhavan, M.K. Road, Society, Opp. Gokhale School, Mumbai-400020. Shimpoli Road, Borivali (West), Mumbai-400092. PAN No. AABCB 5409 L Appellant Respondent Assessee by : Mr. Yagnesh Desai, AR : Revenue by Ms. Smita Verma, DR : Date of Hearing 21/12/2020 : Date of pronouncement 22/12/2020 ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the asses…

Sach Electro Mech Pvt. Ltd., Surat vs. The Income Tax Officer, Ward-2(1)(2), Surat

In the result ground No. 4 of the appeal is allowed

ITA 262/AHD/2017[2013-14]Status: DisposedITAT Surat09 Oct 2020AY 2013-14

Bench: Shri Pawan Singh, Hon'Ble & Dr Arjun Lal Saini, Hon'Ble(Virtual Court - Virtual Hearing) आ.अ.सं./I.T.A No.262/Ahd/2017 "नधा"रण वष"/Assessment Year: 2013-14 Sach Electro Mech Pvt. Ltd., V The Income Tax Officer, C/2, Maheshwari Apartment, S Ward-2(1)(2), Surat. Timaliyawad, Nanpura, . Surat – 395 001. [Pan: Aaics 8963 M] अपीलाथ" / Appellant ""यथ"/Respondent "नधा"रतीक"ओरसे /Assessee By Shri Manish J.Shah – Ar राज"वक"ओरसे /Revenue By Mrs. Anupam Singla – Sr.Dr

Section 143(3)Section 14ASection 2(24)(x)Section 36(1)(v)Section 36(1)(va)Section 37Section 40Section 43B

…e against Revenue. The first was the decision in CIT v. Lakhani Marketing Inc . [2014] 226 Taxman 45/49 taxmann.com 257 of the High Court of Punjab and Haryana which in turn referred to two earlier decisions of the same Court in CIT v. Hero Cycles Ltd. [2010] 323 ITR 518/189 Taxman 50 and CIT v. Winsome Textile Industries Ltd . [2009] 319 ITR 204. The second was of the Gujarat High Court in CIT v. Corrtech Energy (P.) Ltd. [2014] 223 Taxman 130/45 taxmann.com 116 and the third of the Allahabad High Court in CIT v. Shivam Motors (P.) Ltd . [2015] 230 Taxman 63/55 taxmann.com 262. These three decisions reiterated t…

Vedanta Ltd, Gurgaon vs. ACIT, Circle- 26(2), New Delhi

ITA 12/DEL/2020[2014-15]Status: FixedITAT Delhi18 Sept 2020AY 2014-15

Bench: Shri N.K. Billaiya & Shri Kuldip Singh[Assessment Year: 2014-15]

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 143(3)Section 153

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I-2’ BENCH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI KULDIP SINGH, JUDICIAL MEMBER [Assessment Year: 2014-15] Vedanta Ltd Vs The A.C.I.T Third Floor, Core - 6 Circle-26(2) Scope Complex, Lodhi Road New Delhi. New Delhi. PAN : AACCS 7101 B [Appellant] [Respondent] Date of Hearing : 24.08.2020 Date of Pronouncement : 21.09.2020 Assessee by : Shri Ajay Vohra, Sr. Adv Shri Sachit Jolly, Adv Shri Rohit Garg, Adv Shri Sidharth Joshi, Adv Revenue by : Shri Anupam Kant Garg, CIT-DR ORDER PER N.K. BILLAIYA, ACCO…

Ravi Mohan Gehi, Mumbai vs. DCIT Cen Cir 40, Mumbai

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

ITA 6238/MUM/2016[2011-12]Status: DisposedITAT Mumbai16 Sept 2020AY 2011-12

Bench: Shri S. Rifaur Rahman, Am & Shri Ram Lal Negi, Jm आयकरअपीलसं./ I.T.A. No. 6238/Mum/2016 (निर्धारणवर्ा / Assessment Year: 2011-12) Dcit Cen Cir 40, Ravi Mohan Gehi, Piramal Chambers B/6, Navkar Chambers, बिधम/ Mumbai Andheri Kurla Road, Vs. Pin- Andheri (E), Mumbai-400 059 स्थायीलेखासं./जीआइआरसं./Pan No. Aeppg1674M (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant : Shri Pradip Kanasi, Ar By प्रत्यथीकीओरसे/Respondentby : Shri Michael, Dr Virtual Date Of Hearing 29.07.2020 : Date Of Pronouncement 16.09.2020 :

For Appellant: Shri Pradip Kanasi, AR byFor Respondent: Shri Michael, DR
Section 143(1)Section 143(2)Section 14ASection 153ASection 234BSection 57

…of the appellant is supported by the following decisions: 14 I.T.A. No. 6238/Mum/2016 Ravi Mohan Gehi a) Priya Exhibitors (P.) Ltd 54 SOT 356 (Delhi-Trib) (2012)[A.Y. 2008-09] b) Justice Sam P. Bharucha, 53 SOT 192 (Mumbai) [A.Y.2008-09] c) Hero Cycles Ltd, 323 ITR 518 (P&H) [A.Y.2004-05] d) Sun Investment Ltd. 8 ITR(Trib)33 (Del.) (2011) [A.Y.2005-06] 2. Failure on part of the A.O. to record satisfaction i. The appellant has not incurred any expenditure in computing dividend income which is claimed exempt from tax and therefore no expenditure was claimed for earning an exempt income. This stand of the appellan…

Vinay Bhasin, New Delhi vs. ACIT, Circle- 61(1), New Delhi

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

ITA 6904/DEL/2017[2014-15]Status: DisposedITAT Delhi27 Aug 2020AY 2014-15

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

Section 143(3)Section 14A

…rred to various decision of other High Courts including the decisions of the Punjab and Haryana High Court in case of CIT, Faridabad vs Lakhani Marketing Inc., CIT Vs. Hero Cycles Ltd ITA No.970/2008. decided on 02.04.2014, CIT Vs. Hero Cycles Limited, [2010] 323 ITR 518 and CIT Vs. Winsome Textile Industries Limited, [2009] 319 ITR 204 which held that Section 14A cannot be invoked when no exempt income was earned. Hon ble Delhi High Court concurred with the ratio of the decisions mentioned therein. 6.12 It is noted that in this case, the following are the items of exempt income, i) Dividend income Rs. 10,87,838/…

Addl. CIT, New Delhi vs. M/S. Mmtc Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 3575/DEL/2017[2011-12]Status: DisposedITAT Delhi28 Jul 2020AY 2011-12

Bench: Sh. Bhavnesh Sainidr. B. R. R. Kumar(E-Court Module) Ita No. 3575/Del/2017 : Asstt. Year : 2011-12 Addl. Cit, Vs M/S Mmtc Ltd., Special Range-6, Core-1, Scope Complex, New Delhi Lodhi Road, New Delhi-110003 (Appellant) (Respondent) Pan No. Aaacm1433E Assessee By : Sh. Rohit Jain, Adv. Revenue By : Ms. Pamita M. Biswas, Cit Dr Date Of Hearing: 23.07.2020 Date Of Pronouncement: 28.07.2020

For Appellant: Sh. Rohit Jain, AdvFor Respondent: Ms. Pamita M. Biswas, CIT DR
Section 14Section 14A

…ue against Revenue. The first was the decision in CIT v. Lakhani Marketing Inc. [2014] 226 Taxman 45/49 taxmann.com 257 of the High Court of Punjab and Haryana which in turn referred to two earlier decisions of the same Court in CIT v. Hero Cycles Ltd. [2010] 323 ITR 518/189 Taxman 50 and CIT v. Winsome Textile Industries Ltd. [2009] 319 ITR 204. The second was of the Gujarat High Court in CIT v. Corrtech Energy (P.) Ltd. [2014] 223 Taxman 130/45 taxmann.com 116 and the third of the Allahabad High Court in CIT v. Shivam Motors (P.) Ltd. [2015] 230 Taxman 63/55 taxmann.com 262. These three decisions reiterated the…

M/S. Shamanur Kallappa & Sons, Davangere vs. Deputy Commissioner of Income Tax, Central Circle - 1(3), Bangalore

In the result, appeal of the Assessee is allowed

ITA 1669/BANG/2019[2015-16]Status: DisposedITAT Bangalore19 Jun 2020AY 2015-16

Bench: Shri N.V. Vasudevan & Shri B R Baskaranassessment Year: 2015-16

For Appellant: Shri Bharadwaj Sheshadri, AdvocateFor Respondent: Shri Priyadarsi Mishra, Jt.CIT(DR)(ITAT), Bengaluru
Section 14ASection 234

…keting Incl. (decision dated April 2, 2014, of the High Court of Punjab and Haryana in I. T. A. No. 970 of 2008)--since reported in [2015] 4 ITR-OL 246 (P&H)-- which in turn referred to two earlier decisions of the same court in CIT v. Hero Cycles Ltd. [2010] 323 ITR 518 (P&H) and CIT v. Winsome Textile Industries Ltd. [2009] 319 ITR 204 (P&H). The second was of the Gujarat High Court in CIT v. Corrtech Energy (P.) Ltd. [2014] 223 Taxmann 130 (Guj) ; [2015] 372 1TR 97 (Guj) and the third of the Allahabad High Court in CIT v. Shivam Motors (P) Ltd. (decision dated 5th May, 2014, in T.A. No. 88 of ITA No.1 1071Bang…

DCIT Cen Cir 3(2), Mumbai vs. Jsw Steel Ltd, Mumbai

The appeal of the assessee is allowed, and appeal of the Assessing Officer is dismissed

ITA 6264/MUM/2018[2013-14]Status: DisposedITAT Mumbai14 May 2020AY 2013-14
For Appellant: On the facts and circumstances of the case and in law, the learned Assessing
Section 115JSection 143(3)Section 14ASection 8D(2)(ii)

…e against Revenue. The first was the decision in CIT v. Lakhani Marketing Inc . [2014] 226 Taxman 45/49 taxmann.com 257 of the High Court of Punjab and Haryana which in turn referred to two earlier decisions of the same Court in CIT v. Hero Cycles Ltd. [2010] 323 ITR 518/189 Taxman 50 and CIT v. ITA No. 6103 and 6264/Mum/18 Assessment year: 2013-14 Page 4 of 9 Winsome Textile Industries Ltd . [2009] 319 ITR 204. The second was of the Gujarat High Court in CIT v. Corrtech Energy (P.) Ltd. [2014] 223 Taxman 130/45 taxmann.com 116 and the third of the Allahabad High Court in CIT v. Shivam Motors (P.) Ltd . [2015] 2…

Jsw Steel Ltd., Mumbai vs. DCIT, CC- 3(2), Mumbai

The appeal of the assessee is allowed, and appeal of the Assessing Officer is dismissed

ITA 6103/MUM/2018[2013-14]Status: DisposedITAT Mumbai14 May 2020AY 2013-14
For Appellant: On the facts and circumstances of the case and in law, the learned Assessing
Section 115JSection 143(3)Section 14ASection 8D(2)(ii)

…e against Revenue. The first was the decision in CIT v. Lakhani Marketing Inc . [2014] 226 Taxman 45/49 taxmann.com 257 of the High Court of Punjab and Haryana which in turn referred to two earlier decisions of the same Court in CIT v. Hero Cycles Ltd. [2010] 323 ITR 518/189 Taxman 50 and CIT v. ITA No. 6103 and 6264/Mum/18 Assessment year: 2013-14 Page 4 of 9 Winsome Textile Industries Ltd . [2009] 319 ITR 204. The second was of the Gujarat High Court in CIT v. Corrtech Energy (P.) Ltd. [2014] 223 Taxman 130/45 taxmann.com 116 and the third of the Allahabad High Court in CIT v. Shivam Motors (P.) Ltd . [2015] 2…

Punjab National Bank, New Delhi vs. Addl. CIT, New Delhi

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

ITA 3041/DEL/2017[2013-14]Status: DisposedITAT Delhi13 May 2020AY 2013-14

Bench: Sh. Bhavnesh Sainidr. B. R. R. Kumarita No. 2954/Del/2012 : Asstt. Year : 2013-14 Dcit, Vs M/S Punjab National Bank, Circle-20(1), Ho: Finance Division, 5, Sansad New Delhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp0165G

For Appellant: Sh. S. Krishnan, AdvFor Respondent: Smt. Sushma Singh, CIT DR
Section 142(1)

…y the bank in earning the aforesaid exempted income of Rs. 126.47crore and therefore no disallowance of interest expenditure is warranted under section 14A. It was also held by the Hon'ble High Court of Punjab & Haryana in the case of CIT vs. Hero Cycles Ltd (323 ITR 528) that where the assessee has interest free funds available which exceed the investments made in assets earning tax free income, the presumption is that the investments have come out of interest free funds only. Similar view was also taken by the Hon'ble High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Ltd (2009) 313 ITR 340.…