CIT v. Indo Swiss Jewels Ltd.

Prestress Wire Industries, Mumbai vs. Addl CIT 12(1), Mumbai

…er. In this regard, Ld Counsel relied on the following decisions. i) CIT vs. Vidyut Steel Ltd. 219 ITR 30 (AP) ii) CIT vs. Koshika Telecom Ltd 287 ITR 479 (Del) iii) CIT vs. Karnal Cooperative Sugar Mills Ltd 243 ITR 2 (SC) iv) CIT vs. Indo Swiss Jewells Ltd 284 ITR 389 (Bom) 15. On the other hand, Ld DR dutifully relied on the order of the AO. 16. We have heard both the parties and perused the orders of the Revenue Authorities as well as citations quoted by the Ld Counsel along with the relevant material placed before us. On perusal of the cited judgments of the higher judiciary, we find that they are relevant…

Ucb Indiap.Ltd, Mumbai vs. ITO 7(3)(3), Mumbai

In the result, the appeals filed by the Revenue in ITA Nos

Bench: Shri Rajendra & Shri C.N. Prasadआयकर अपील सं /I.Ta No. 6681/Mum/2013 ("नधा"रण वष" / Assessment Year: 2004-05 Ucb India Pvt. Ltd., The Ito 7(3)-3, बनाम/ 504, Peninsula Towers, Aayakar Bhavan, Vs. G.K. Marg, Lower Parel, Mumbai-400 020 Mumbai-400 013 आयकर अपील सं /I.Ta No. 6454/Mum/2013 ("नधा"रण वष" / Assessment Year: 2004-05 The Ito 7(3)-3, Ucb India Pvt. Ltd., बनाम/ Aayakar Bhavan, 504, Peninsula Towers, Vs. Mumbai-400 020 G.K. Marg, Lower Parel, Mumbai-400 013

…on by both parties. On a perusal of the order of the Tribunal in assessee’s own case for assessment years 2002-03 and 2003-04 in ITA Nos. 428 & 429/M/07 and relying on the decision of the Hon’ble Bombay High Court in the case of CIT Vs Indo Swiss Jewels Ltd. (284 ITR 389) it was held that interest on current account is assessable as business income. Further the Tribunal directed the Assessing Officer to eliminate only the net of interest following the Special Bench decisions in the case of Lalsons Enterprises Vs DCIT 89 ITD 25 (supra) as well as decision in the case of CIT Vs Ram Honda Power Equipment 289 ITR 47…

Finestar Jewellery and Diamonds P.Ltd, Mumbai vs. ITO WD 5(1)(4), Mumbai

In the result, the Revenue’s appeal for A

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainm/S. Finestar Jewellery & Income Tax Officer-5(1)(4) Diamonds Pvt. Ltd. Àayakar Bhavan, M.K. Road Vs. Unit No. 101, Seepz Mumbai 400020 Andheri (E), Mumbai 400096 Pan - Aaacf7241F Appellant Respondent Income Tax Officer-5(1)(4) M/S. Finestar Jewellery & Àayakar Bhavan, M.K. Road Diamonds Pvt. Ltd. Vs. Mumbai 400020 Unit No. 101, Seepz Andheri (E), Mumbai 400096 Pan - Aaacf7241F Appellant Respondent

…posits of the money kept apart for the purpose of business is to be taxed under the head ‘Income from business’ and cannot be taxed under ‘Income from other sources’. We draw support from the decision of the Hon'ble Bombay High Court in the case of Indo Swiss 284 ITR 389. We, accordingly direct the AO to treat the interest income under the head ‘Profits and gains of the business’ and for the M/s. Finestar Jewellery and Diamonds P. Ltd. reasons given in ground No. 1 of this appeal, we direct the AO to allow deduction u/s. 10A of the Act. Ground No. 2 is accordingly allowed.” 5.2.1 Following the aforesaid decision…

ITO 5(1)(4), Mumbai vs. Finestar Jewellery P.Ltd, Mumbai

In the result, the Revenue’s appeal for A

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainm/S. Finestar Jewellery & Income Tax Officer-5(1)(4) Diamonds Pvt. Ltd. Àayakar Bhavan, M.K. Road Vs. Unit No. 101, Seepz Mumbai 400020 Andheri (E), Mumbai 400096 Pan - Aaacf7241F Appellant Respondent Income Tax Officer-5(1)(4) M/S. Finestar Jewellery & Àayakar Bhavan, M.K. Road Diamonds Pvt. Ltd. Vs. Mumbai 400020 Unit No. 101, Seepz Andheri (E), Mumbai 400096 Pan - Aaacf7241F Appellant Respondent

…posits of the money kept apart for the purpose of business is to be taxed under the head ‘Income from business’ and cannot be taxed under ‘Income from other sources’. We draw support from the decision of the Hon'ble Bombay High Court in the case of Indo Swiss 284 ITR 389. We, accordingly direct the AO to treat the interest income under the head ‘Profits and gains of the business’ and for the M/s. Finestar Jewellery and Diamonds P. Ltd. reasons given in ground No. 1 of this appeal, we direct the AO to allow deduction u/s. 10A of the Act. Ground No. 2 is accordingly allowed.” 5.2.1 Following the aforesaid decision…

Addl CIT 19(3), Mumbai vs. Petrikum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…ter of credit/ bank guarantee was inextricably linked with the business of assessee, therefore, interest earned thereon are assessable as business income. The proposition of law laid down by the Hon’ble Bombay High Court in the case of Indo Swiss Jewels Ltd., 284 ITR 389 (Bom) and also the decision of Hon’ble Supreme Court in the case of Karnal Co-operative Sugal Mills Ltd., 243 ITR 2(SC) are applicable to the facts of assessee’s case. The detailed finding recorded ITA No.1741&6322/10 ITA No.2686&6421/12 by the CIT(A) has not been controverted. Accordingly, we do not find any reason to interfere in the order of t…

Addl CIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…ter of credit/ bank guarantee was inextricably linked with the business of assessee, therefore, interest earned thereon are assessable as business income. The proposition of law laid down by the Hon’ble Bombay High Court in the case of Indo Swiss Jewels Ltd., 284 ITR 389 (Bom) and also the decision of Hon’ble Supreme Court in the case of Karnal Co-operative Sugal Mills Ltd., 243 ITR 2(SC) are applicable to the facts of assessee’s case. The detailed finding recorded ITA No.1741&6322/10 ITA No.2686&6421/12 by the CIT(A) has not been controverted. Accordingly, we do not find any reason to interfere in the order of t…

ACIT 19(3), Mumbai vs. Petroleum India Internaitonal, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…ter of credit/ bank guarantee was inextricably linked with the business of assessee, therefore, interest earned thereon are assessable as business income. The proposition of law laid down by the Hon’ble Bombay High Court in the case of Indo Swiss Jewels Ltd., 284 ITR 389 (Bom) and also the decision of Hon’ble Supreme Court in the case of Karnal Co-operative Sugal Mills Ltd., 243 ITR 2(SC) are applicable to the facts of assessee’s case. The detailed finding recorded ITA No.1741&6322/10 ITA No.2686&6421/12 by the CIT(A) has not been controverted. Accordingly, we do not find any reason to interfere in the order of t…

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…ter of credit/ bank guarantee was inextricably linked with the business of assessee, therefore, interest earned thereon are assessable as business income. The proposition of law laid down by the Hon’ble Bombay High Court in the case of Indo Swiss Jewels Ltd., 284 ITR 389 (Bom) and also the decision of Hon’ble Supreme Court in the case of Karnal Co-operative Sugal Mills Ltd., 243 ITR 2(SC) are applicable to the facts of assessee’s case. The detailed finding recorded ITA No.1741&6322/10 ITA No.2686&6421/12 by the CIT(A) has not been controverted. Accordingly, we do not find any reason to interfere in the order of t…

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…ter of credit/ bank guarantee was inextricably linked with the business of assessee, therefore, interest earned thereon are assessable as business income. The proposition of law laid down by the Hon’ble Bombay High Court in the case of Indo Swiss Jewels Ltd., 284 ITR 389 (Bom) and also the decision of Hon’ble Supreme Court in the case of Karnal Co-operative Sugal Mills Ltd., 243 ITR 2(SC) are applicable to the facts of assessee’s case. The detailed finding recorded ITA No.1741&6322/10 ITA No.2686&6421/12 by the CIT(A) has not been controverted. Accordingly, we do not find any reason to interfere in the order of t…

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…ter of credit/ bank guarantee was inextricably linked with the business of assessee, therefore, interest earned thereon are assessable as business income. The proposition of law laid down by the Hon’ble Bombay High Court in the case of Indo Swiss Jewels Ltd., 284 ITR 389 (Bom) and also the decision of Hon’ble Supreme Court in the case of Karnal Co-operative Sugal Mills Ltd., 243 ITR 2(SC) are applicable to the facts of assessee’s case. The detailed finding recorded ITA No.1741&6322/10 ITA No.2686&6421/12 by the CIT(A) has not been controverted. Accordingly, we do not find any reason to interfere in the order of t…

ACIT 19(3), Mumbai vs. Petroleum India International, Mumbai

In the result, all appeals of revenue are allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.4439,4657&4658/Mum/2009

…ter of credit/ bank guarantee was inextricably linked with the business of assessee, therefore, interest earned thereon are assessable as business income. The proposition of law laid down by the Hon’ble Bombay High Court in the case of Indo Swiss Jewels Ltd., 284 ITR 389 (Bom) and also the decision of Hon’ble Supreme Court in the case of Karnal Co-operative Sugal Mills Ltd., 243 ITR 2(SC) are applicable to the facts of assessee’s case. The detailed finding recorded ITA No.1741&6322/10 ITA No.2686&6421/12 by the CIT(A) has not been controverted. Accordingly, we do not find any reason to interfere in the order of t…

Nathuram Ramnarayan P. Ltd, Mumbai vs. Addl CIT 2(2), Mumbai

In the result, assessee’s appeal is partly allowed

Bench: Shri Rajendra & Shri Saktijit Deyआमकय अऩीर सं. / Ita No.2583/Mum./2011 (ननधधायण वषा / Assessment Year : 2007–08) M/S. Nathuram Ramnarayan Pvt. Ltd. Rustom Building …….………. अऩीरधथी / 29, Veer Nariman Road Appellant Mumbai 400 023 Pan – Aaacn1289P V/S Addl. Commissioner Of Income Tax ..…….………. प्रत्मथी / Range–2(2), Aayakar Bhawan Respondent 101, M.K. Road, Mumbai 400 020 ननधधारयती की ओय से / Assessee By : Shri H.S. Raheja यधजस्व की ओय से / Revenue By : Shri Samir Tekriwal सुनवधई की तधयीख / आदेश घोषणध की तधयीख / Date Of Hearing – 08.10.2015 Date Of Order – 30.10.2015

…, the following decisions are directly in favour of the assessee. i) Sujoy Trading Pvt. Ltd., 111 ITD 249 (Mum.) (TM); ii) Poompuhar Shipping Corporation Ltd., 39 TTJ 206 (Mad.) iii) T.N. Dairy Development Corp. Ltd., 216 ITR 535; iv) Indo Swiss Jewels Ltd., 284 ITR 389; v) Paramount Premises Pvt. Ltd., 190 ITR 259; and vi) Lok Holds, 308 ITR 356. M/s. Nathuram Ramnarayan Pvt. Ltd. 7 7. The learned Departmental Representative, on the other hand, relying upon the findings of the Departmental Authorities submitted that during the year, neither the assessee has started any business venture nor shown any business in…