CIT v. Indo Saudi Services (Travel) Pvt. Ltd.

C. Dinesh & Company P.Ltd, Mumbai vs. ACIT 5(1), Mumbai

In the result, appeal filed by the assessee is allowed

Bench: Shri G.S.Pannu & Shri Pawan Singhassessment Year: 2009-10 M/S C. Dinesh & Company Pvt. Ltd. Acit 5(1), Dw-2332, Bharat Diamond Bourse, Aayakar Bhavan, Mumbai-400020 Bandra Kurla Complex, Bandra (E), Vs. Mumbai-400051. Pan: Aadcc 0451 B (Appellant) (Respondent)

…clarity, cut, carats etc. and average for comparison of price is not proper and appropriate as it would tend to distort the value and relied upon the judgment of jurisdictional High Court in case of CIT vs. Indo Saudi Services (Travel) (P) Ltd. reported vide 310 ITR 306 and decision of ITAT, Mumbai in ITA No. 7119/M/11 titled as Indo Bearing Traders. The Ld. AR for assessee also argued that the percentage of the total income turnover in the case of related party firm is 1.94 , whereas in the case of assessee company ,it is 2.7. Applying the differential net profit percentage of 0.23% on turnover of Rs. 5 lac, th…

Schil Services Ltd, Mumbai vs. DCIT 4(2)(1), Mumbai

In the result, both the appeals filed by the assessee are allowed and the appeal filed by the Revenue is dismissed

Bench: Shri C.N. Prasad & Shri Rajesh Kumarआयकर अपील सं/ I.Ta No.1777/Mum/2015 ("नधा"रण वष" / Assessment Year: 2011-12 M/S. Shcil Services Ltd., The Dcit-4(2)(1), बनाम/ C/O Kalyaniwalla & Mistry, Aayakar Bhavan, Vs. Army & Navy Bldg., Mumbai-400 020 3Rd Floor, 148 M.G. Road, Fort, Mumbai-400 001 आयकर अपील सं/ I.Ta No.1669/Mum/2015 ("नधा"रण वष" / Assessment Year: 2011-12 The Dcit-4(2)(1), M/S. Shcil Services Ltd., बनाम/ Aayakar Bhavan, C/O Kalyaniwalla & Mistry, Vs. Mumbai-400 020 Army & Navy Bldg., 3Rd Floor, 148 M.G. Road, Fort, Mumbai-400 001 आयकर अपील सं/ I.Ta No.5004/Mum/2015 ("नधा"रण वष" / Assessment Year: 2011-12 M/S. Shcil Services Ltd., The Dcit-4(2)(1), बनाम/ C/O Kalyaniwalla & Mistry, Aayakar Bhavan, Vs. Army & Navy Bldg., Mumbai-400 020 3Rd Floor, 148 M.G. Road, Fort, Mumbai-400 001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aajcs 5661H (अपीलाथ" /Appellant) .. (""यथ" / Respondent) अपीलाथ" ओर से/ Assesee By: Shri F.V. Irani Shri Z. Mehta ""यथ" क" ओर से/Respondent By: Shri Manjunatha Swamy Shri R.A. Dhyani

…erring to the decision of Edwise Consultants Pvt. Ltd Vs DCIT In ITA No. 5376/M/2011 dated 14.10.2015, the Ld. Counsel for the assessee submits that following the Jurisdictional High Court decision in the case of CIT Vs Indo Saudi Services (Travel) Pvt. Ltd. (310 ITR 306), The Hon’ble Bench held that no disallowance is to be made u/s. 40A(2) in respect of the payments made to related parties when there is no attempt to evade tax. It is further submitted by the Ld. Counsel that the AO alleged that since there is no dividend declared by the assessee, there is no payment of dividend distribution tax. Referring to pa…

DCIT 10(2), Mumbai vs. Aarvi Encon P.Ltd, Mumbai

…आयकर आयकर आयकर अपीलीय आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, अिधकरण " ए” खंडपीठ खंडपीठ खंडपीठ मुंबई खंडपीठ मुंबई मुंबई मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-“A”,BENCH सव"ी जोिग"दर"सह , "याियक सद"य एवं एवं एवं राजे"", लेखा सद"य एवं Before S/Sh. Joginder Singh,Judicial Member & Rajendra,Accountant Member आयकर आयकर अपील अपील संसंसंसं/.ITA No.5347/Mum/2013,िनधा"रण िनधा"रण वष" वष"/Assessment Year-2010-11 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Dy. CIT-10-(2) Vs. M/s. Aarvi Encon Pvt. Ltd. Room No.432, 4th Floor, Unit No.155, 1st Floor Aayakar Bhavan, M.K. Road Shah & Nahar Indl. Estate(A 1) Mumba…

Edwise Consultants P.Ltd, Mumbai vs. Asst CIT 4(3), Mumbai

In the result, all the three appeals filed by the assessee are allowed

Bench: S/Shri B.R.Baskaran, Am & Amarjit Singh, Jm आमकय अऩीर सं./I.T.A. No.5376/Mum/2011 & I.T.A. No.4121/Mum/2014 (ननधधायण वषा / Assessment Year: 2008-09 & 2010-11) बनाम/ Edwise Consultants Pvt.Ltd., Dy. Commissioner Of Income Tax, 4(3), Room No.649, Jer Mahal, Vs. 6Th Floor, Aayakar Bhavan, Opp. Metro Cinema, M K Road, Dhobi Talav, Mumbai-400020. Mumbai-400002 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) ..

…/ M/ 2 0 1 3 a n d 4 1 2 1 / M/ 2 0 1 4 liability & there is no evasion payment of tax by the Company by alleged payment of higher incentives to its directors. Further jurisdictional Bombay High Court in case of CIT V/s INDO SAUDI SERVICES (TRAVEL) (P.) LTD. 310 ITR 306) (Bom) “Under the CBDT Circular No. 6-P, dated 6th July, 1968 it is stated that no disallowance is to be made under section 40A(2) in respect of the payments made to the relatives and sister concerns where there is no attempt to evade tax. The Tribunal was correct in coming to the conclusion that the CIT(A) was wrong in disallowing half per cent…

Edwise Consultants P. Ltd, Mumbai vs. Addl CIT 4(3), Mumbai

In the result, all the three appeals filed by the assessee are allowed

Bench: S/Shri B.R.Baskaran, Am & Amarjit Singh, Jm आमकय अऩीर सं./I.T.A. No.5376/Mum/2011 & I.T.A. No.4121/Mum/2014 (ननधधायण वषा / Assessment Year: 2008-09 & 2010-11) बनाम/ Edwise Consultants Pvt.Ltd., Dy. Commissioner Of Income Tax, 4(3), Room No.649, Jer Mahal, Vs. 6Th Floor, Aayakar Bhavan, Opp. Metro Cinema, M K Road, Dhobi Talav, Mumbai-400020. Mumbai-400002 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) ..

…/ M/ 2 0 1 3 a n d 4 1 2 1 / M/ 2 0 1 4 liability & there is no evasion payment of tax by the Company by alleged payment of higher incentives to its directors. Further jurisdictional Bombay High Court in case of CIT V/s INDO SAUDI SERVICES (TRAVEL) (P.) LTD. 310 ITR 306) (Bom) “Under the CBDT Circular No. 6-P, dated 6th July, 1968 it is stated that no disallowance is to be made under section 40A(2) in respect of the payments made to the relatives and sister concerns where there is no attempt to evade tax. The Tribunal was correct in coming to the conclusion that the CIT(A) was wrong in disallowing half per cent…

A.C.I.T. Circle 7(2), Mumbai vs. Siyaram Silk Mills Ltd., Mumbai

In the result, the appeals filed by the Revenue are dismissed

Bench: Shri N.K. Billaiya & Shri Sanjay Gargआयकर अपील सं/ I.T.A. Nos.1189 & 2263/Mum/2012 ("नधा"रण वष" / Assessment Years:2007-08 & 2008-09 The Acit-7(2), M/S. Siyaram Silk Mills बनाम/ M.K. Road, Ltd., Vs. Mumbai-400 020 B-5, Trade World, Kamla City, Senapati Bapat Marg, Lower Parel, Mumbai-400 013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs 6995D .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से/ Revenue By: Shri Manjunatha R. Swamy ""यथ" क" ओर से/Respondent By: Shri F.V. Irani

…deposit which it has not taken from the other 8 licensor. Therefore, the comparison of the office rent is not on identical facts. Strong reliance was placed on the decision of the Bombay High Court in the case of CIT Vs Indo Saudi Services (Travel) Pvt. Ltd. 310 ITR 306. 4.1. After considering the facts and the decision of the Hon’ble High Court, the Ld. CIT(A) was convinced that the disallowance is unjustified and accordingly directed the AO to delete the addition of Rs. 23.52 lakhs. 5. Aggrieved by this, the assessee is before us. 6. The Ld. Departmental Representative strongly relied upon the findings of th…

Addl CIT RG 7(2), Mumbai vs. Siyaram Silk Mills Ltd, Mumbai

In the result, the appeals filed by the Revenue are dismissed

Bench: Shri N.K. Billaiya & Shri Sanjay Gargआयकर अपील सं/ I.T.A. Nos.1189 & 2263/Mum/2012 ("नधा"रण वष" / Assessment Years:2007-08 & 2008-09 The Acit-7(2), M/S. Siyaram Silk Mills बनाम/ M.K. Road, Ltd., Vs. Mumbai-400 020 B-5, Trade World, Kamla City, Senapati Bapat Marg, Lower Parel, Mumbai-400 013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs 6995D .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से/ Revenue By: Shri Manjunatha R. Swamy ""यथ" क" ओर से/Respondent By: Shri F.V. Irani

…deposit which it has not taken from the other 8 licensor. Therefore, the comparison of the office rent is not on identical facts. Strong reliance was placed on the decision of the Bombay High Court in the case of CIT Vs Indo Saudi Services (Travel) Pvt. Ltd. 310 ITR 306. 4.1. After considering the facts and the decision of the Hon’ble High Court, the Ld. CIT(A) was convinced that the disallowance is unjustified and accordingly directed the AO to delete the addition of Rs. 23.52 lakhs. 5. Aggrieved by this, the assessee is before us. 6. The Ld. Departmental Representative strongly relied upon the findings of th…

Edwise Consultants P.Ltd, Mumbai vs. DCIT 4(3), Mumbai

In the result, all the three appeals filed by the assessee are allowed

Bench: S/Shri B.R.Baskaran, Am & Amarjit Singh, Jm आमकय अऩीर सं./I.T.A. No.5376/Mum/2011 & I.T.A. No.4121/Mum/2014 (ननधधायण वषा / Assessment Year: 2008-09 & 2010-11) बनाम/ Edwise Consultants Pvt.Ltd., Dy. Commissioner Of Income Tax, 4(3), Room No.649, Jer Mahal, Vs. 6Th Floor, Aayakar Bhavan, Opp. Metro Cinema, M K Road, Dhobi Talav, Mumbai-400020. Mumbai-400002 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) ..

…/ M/ 2 0 1 3 a n d 4 1 2 1 / M/ 2 0 1 4 liability & there is no evasion payment of tax by the Company by alleged payment of higher incentives to its directors. Further jurisdictional Bombay High Court in case of CIT V/s INDO SAUDI SERVICES (TRAVEL) (P.) LTD. 310 ITR 306) (Bom) “Under the CBDT Circular No. 6-P, dated 6th July, 1968 it is stated that no disallowance is to be made under section 40A(2) in respect of the payments made to the relatives and sister concerns where there is no attempt to evade tax. The Tribunal was correct in coming to the conclusion that the CIT(A) was wrong in disallowing half per cent…