CIT v. Lok

ACIT 10(1), Mumbai vs. Technoprocess Solutions Ltd ( Formerly Bill Junction Payment Ltd), Mumbai

In the result, the appeals of assessee in ITA

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am

…s of the appellant were available for short period of time for deposing the same in fixed deposits and mutual funds. Thus the interest income has been earned on deployment of business receipts. The Hon’ble Bombay High Court in the case of CIT vs. Lok Holdings 308 ITR 356 held that where business receipts are used for earning interest income, the interest income was assessable under the head business income. In the case under considerations the business receipts were not surplus funds but were not immediately required for the purpose of business activities. Thus these business receipts were available to the appell…

Technprocess Solutions Ltd, Mumbai vs. Asst CIT 10(1), Mumbai

In the result, the appeals of assessee in ITA

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am

…s of the appellant were available for short period of time for deposing the same in fixed deposits and mutual funds. Thus the interest income has been earned on deployment of business receipts. The Hon’ble Bombay High Court in the case of CIT vs. Lok Holdings 308 ITR 356 held that where business receipts are used for earning interest income, the interest income was assessable under the head business income. In the case under considerations the business receipts were not surplus funds but were not immediately required for the purpose of business activities. Thus these business receipts were available to the appell…

West Gujarat Exressway Ltd, Mumbai vs. DCIT 14(3)(1), Mumbai

In the result, appeal of the assessee is allowed in part in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Ram Lal Negi, Jm M/S. West Gujarat Vs. Dcit – 14(3)1 Expressway Ltd., (Erstwhile Dy. The Il & Fs Financial Commissioner Of Income Center, Plot No.C-22, G Tax – 10(1), Room No.460 4Th Floor, Aaykar Bhavan Block, Bandra-Kurla Complex, Bandra (E) Maharshi Karve Road Mumbai – 400 051 Marine Lines, Mumbai – 400 020 Pan/Gir No. Aaacw5862D (Appellant) .. (Respondent) Dcit – 14(3)1 Vs. M/S. West Gujarat Expressway Room No.453 Ltd., 4Th Floor, Aaykar Bhavan The Il & Fs Financial Center, M.K. Marg Plot No.C-22, G Block, Bandra- Mumbai – 400 020 Kurla Complex, Bandra (E) Mumbai – 400 051 Pan/Gir No. Aaacw5862D (Appellant) .. (Respondent)

…sessee directing that the interest income be treated as business income relying upon his own findings given in the earlier assessment year 2007-08 for which he had relied upon the decision of the Hon‟ble Bombay High Court in the case of “CIT vs. Lok Holdings” 308 ITR 356. The Ld. A.R. of the assessee has stressed that the said findings of the Ld. CIT(A) given in relation to assessment year 2007-08 have been further upheld by the Tribunal vide order dated 27.02.13 passed in ITA No.1284/M/2011 & 14/M/2011. 6. We have perused the said order dated 27.02.1 3(supra) of the Tribunal. The relevant issue has been taken by…

Ambuja Cement India P.Ltd, Mumbai vs. Asst CIT Cir 3(1), Mumbai

In the result appeal of the assessee is allowed as indicated above

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.2600/Mum/2014 (नििाारण वर्ा / Assessment Year : 2005-06)

…ness has earned from Bank FDs is to be treated as income earned from business assessable as "Income from Other and cannot be treated as income from other Sources". [AO's order Pg. No. 12] sources] Order of CIT(A) - Interest earned CIT -vs.- Lok Holding (2009) 308 ITR 356 (Bom) out of surplus funds invested in Interest earned out of such monies accruing fixed deposits is taxable under from the business of the assessee company and the head Income from Other the same is further utilized for the purpose of Sources. Hence, the disallowance the business shall be assessable under the head made by the AO is upheld. busin…

Sun Enterprises, Mumbai vs. ITO 14(3)(4), Mumbai

Bench: Shri Shamim Yahya & Shri Ramlal Negi

…IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER, AND SHRI RAMLAL NEGI, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No.4987/Mum/2014 (िनधा"रण वष" / Assessment Year: 2010-11) M/s. Sun Enterprise Income tax officer-14(3)(4) बनाम/ 288, 3rd Floor, Kalbadevi Road, Room No.608, 6th Floor Vs. Kalbadevi, Mumbai-400 000. Earnest House, Nariman Point Mumbai-400 021. "थायी लेखा सं./PAN : AACCS 2167 F .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Shri Vallabhdas D.Parmar अपीलाथ" क" ओर से / Appellant by : Shri V. Justin-DR ""यथ" क" ओर से/ Respondent by : सुनवाई क" तारीख /Date o…

Asst CIT 16(1), Mumbai vs. Natinal Films Development Corporation Ltd, Mumbai

…he income as interest income, that the relevant facts revealed that the advances received were for the purpose of funding media release and production of big films/short 5737/M/15 M/s. National Films Development Corporation Ltd. (190 ITR 259), Lok Holdings (308 ITR 356), Bihar State Co-operative bank Ltd. (39 ITR 114) and finally allowed the appeal filed by the assessee. 4.During the course of hearing before us,the Departmental Representative(DR)strongly supported the order of the AO and stated that assessee was not in business of earning interest income, that interest income was rightly assessed as income fro…

Thiruvananthapuram Road Development Co. Ltd, Orrissa vs. DCIT 14(3)(1), Mumbai

Appeal of the assessee is disposed of in terms of the order in ITA

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2010-11 Thiruvananthapuram Road Dcit-14(3)(1), Development Company Ltd. बनाम/ (Earlier Dcit-10(1), The Il & Fs Financial Centre, Room No.455, 4Th Floor, Vs. Plot No.C-22, Aayakar Bhavan, G Block, Bandra Kurla M. K. Road, Complex, Bandra (East), Mumbai-400020 Mumbai-400051 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aacct0547J Assessment Year: 2010-11 Dcit-14(3)(1), Thiruvananthapuram Road (Earlier Dcit-10(1), Development Company Ltd. बनाम/ Room No.455, 4Th Floor, The Il & Fs Financial Vs. Aayakar Bhavan, Centre, Plot No.C-22, M. K. Road, G Block, Bandra Kurla Mumbai-400020 Complex, Bandra (East), Mumbai-400051 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aacct0547J

…me of Rs.36,25,280/- whether taxable under the head ‘business income’ and not income from other sources’ is concerned, we find that the Ld. Commissioner of Income Tax (Appeal) has followed the decision from Hon'ble Bombay High Court in CIT vs Lok Holding (308 ITR 356)(Bom.). Thus, we find no infirmity in the order. This ground of the Revenue is dismissed. 4.1. The next ground i.e. ground no.2, was sent to the file of the Ld. Assessing Officer, therefore, no grievance is caused to the Revenue. The Ld. Assessing Officer is directed to decide the issue in accordance with law. 31 Thiruvananthapuram Road Devel…

DCIT 14(3)(1), Mumbai vs. Thirvanthapuram Road Development Company Ltd, Mumbai

Appeal of the assessee is disposed of in terms of the order in ITA

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2010-11 Thiruvananthapuram Road Dcit-14(3)(1), Development Company Ltd. बनाम/ (Earlier Dcit-10(1), The Il & Fs Financial Centre, Room No.455, 4Th Floor, Vs. Plot No.C-22, Aayakar Bhavan, G Block, Bandra Kurla M. K. Road, Complex, Bandra (East), Mumbai-400020 Mumbai-400051 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aacct0547J Assessment Year: 2010-11 Dcit-14(3)(1), Thiruvananthapuram Road (Earlier Dcit-10(1), Development Company Ltd. बनाम/ Room No.455, 4Th Floor, The Il & Fs Financial Vs. Aayakar Bhavan, Centre, Plot No.C-22, M. K. Road, G Block, Bandra Kurla Mumbai-400020 Complex, Bandra (East), Mumbai-400051 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aacct0547J

…me of Rs.36,25,280/- whether taxable under the head ‘business income’ and not income from other sources’ is concerned, we find that the Ld. Commissioner of Income Tax (Appeal) has followed the decision from Hon'ble Bombay High Court in CIT vs Lok Holding (308 ITR 356)(Bom.). Thus, we find no infirmity in the order. This ground of the Revenue is dismissed. 4.1. The next ground i.e. ground no.2, was sent to the file of the Ld. Assessing Officer, therefore, no grievance is caused to the Revenue. The Ld. Assessing Officer is directed to decide the issue in accordance with law. 31 Thiruvananthapuram Road Devel…

Shubh Enterprises, Mumbai vs. ACIT Cir 15(2), Mumbai

In the result, the appeals are allowed for statistical purposes

Bench: Shri Joginder Singh () & Shri N.K. Pradhan () Assessment Year: 2008-09 & Assessment Year: 2009-10 M/S. Shubh Enterprises Vs. Acit Cir 15(2) 102 Wing, J Nisarg Bldg. Opp. Mumbai Uti Bank, Mahavir Nagar, Kandivali(W) Mumbai - 400067 Pan No. Aayfs3688J (Appellant) (Respondent)

…art which are taxable under separate head i.e. income from other sources. Therefore, considering the totality of facts and circumstances of the case, it is noted that the facts of the instant case are distinguishable from the case of CIT Vs. M/s. Lok Holdings 308 ITR 356 relied upon by the appellant. In that case advances received from customers were temporarily invested in the advances to some customers and banks, whereas in the instant case, the advances given to sister concerns are long term advances and not temporary advances. Therefore, assessment of interest income under the head ‘Income from other Sources’…

Shubh Enterprises, Mumbai vs. ACIT Cir 15(2), Mumbai

In the result, the appeals are allowed for statistical purposes

Bench: Shri Joginder Singh () & Shri N.K. Pradhan () Assessment Year: 2008-09 & Assessment Year: 2009-10 M/S. Shubh Enterprises Vs. Acit Cir 15(2) 102 Wing, J Nisarg Bldg. Opp. Mumbai Uti Bank, Mahavir Nagar, Kandivali(W) Mumbai - 400067 Pan No. Aayfs3688J (Appellant) (Respondent)

…art which are taxable under separate head i.e. income from other sources. Therefore, considering the totality of facts and circumstances of the case, it is noted that the facts of the instant case are distinguishable from the case of CIT Vs. M/s. Lok Holdings 308 ITR 356 relied upon by the appellant. In that case advances received from customers were temporarily invested in the advances to some customers and banks, whereas in the instant case, the advances given to sister concerns are long term advances and not temporary advances. Therefore, assessment of interest income under the head ‘Income from other Sources’…

DCIT 7(2), Mumbai vs. Swan Energy Ltd, Mumbai

In the result appeal filed by the Revenue is dismissed

Bench: Shri R.C. Sharma() & Shri Amarjeet Singh () Assessment Year: 2008-09

…of Rs 2042.19 lakhs is set off against interest received of Rs 256.44 lakhs, there is net interest payable and no interest received will remain. 6. Issue under consideration is squarely covered by the decision of Bombay High Court in the case of Lok Holdings-308 ITR 356 and Varun Shipping Company – 334 ITR 263, wherein it was held that assessee is engaged in business of development of properties received advance from intending purchaser, interest earned thereon is business income and not income from other sources. Respectfully applying the proposition laid down by Jurisdictional High Court to the facts of the in…

Shine Star Impex P.Ltd, Mumbai vs. DCIT Cen Cir (42), Mumbai

In the result, the appeals of the assessee’s are allowed in part

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. Nos.4347 & 4348/Mum/2015 (नििाारण वषा / Assessment Years: 2008-09 & 2009-10) Sunshine Import & Exports Pvt. Ltd. Dy. Cit, Central Circle (42), बिाम/ 28/3, Shree Ramniwas, 1St Bhatwadi, Mumbai Vs. Opera House, Mumbai-400 004 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aalcs 1023 K (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : & आमकय अऩीर सं./I.T.A. Nos.4349 & 4350/Mum/2015 (नििाारण वषा / Assessment Years: 2008-09 & 2009-10) Shine Star Impex Pvt. Ltd. Dy. Cit, Central Circle (42), बिाम/ 28/3, Shree Ramniwas, 1St Bhatwadi, Mumbai Vs. Opera House, Mumbai-400 004 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aalcs 3998 R (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : अऩीराथी की ओय से / Appellant By : Shri Vimal Punmiya – Written Submission प्रत्मथी की ओय से/Respondent By : Shri Uday Bhaskar Jakke सुनवाई की तायीख / : 19.7.2016 Date Of Hearing घोषणा की तायीख / : .9.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.:

…e as "Income from other Source". The Ld. AO failed to consider that income arise from business fund is assessable under the business. The issue under consideration is squarely covered by the Hon’ble Bombay High Court in the case of CIT vs. Lok Holdigns [2009] 308 ITR 356 (Bom), wherein it was held that interest received on deposits made out of advance money so received by the assessee in the course of its business is liable to be taxed as ‘business income’. Furthermore, the Hon’ble Calcutta High Court in the case of Tirupati Woollen Mills Ltd. (1992) 193 ITR 252 (Cal) held that interest arising from deposits made…

Shine Star Impex P.Ltd, Mumbai vs. DCIT Cen Cir (42), Mumbai

In the result, the appeals of the assessee’s are allowed in part

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. Nos.4347 & 4348/Mum/2015 (नििाारण वषा / Assessment Years: 2008-09 & 2009-10) Sunshine Import & Exports Pvt. Ltd. Dy. Cit, Central Circle (42), बिाम/ 28/3, Shree Ramniwas, 1St Bhatwadi, Mumbai Vs. Opera House, Mumbai-400 004 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aalcs 1023 K (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : & आमकय अऩीर सं./I.T.A. Nos.4349 & 4350/Mum/2015 (नििाारण वषा / Assessment Years: 2008-09 & 2009-10) Shine Star Impex Pvt. Ltd. Dy. Cit, Central Circle (42), बिाम/ 28/3, Shree Ramniwas, 1St Bhatwadi, Mumbai Vs. Opera House, Mumbai-400 004 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aalcs 3998 R (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : अऩीराथी की ओय से / Appellant By : Shri Vimal Punmiya – Written Submission प्रत्मथी की ओय से/Respondent By : Shri Uday Bhaskar Jakke सुनवाई की तायीख / : 19.7.2016 Date Of Hearing घोषणा की तायीख / : .9.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.:

…e as "Income from other Source". The Ld. AO failed to consider that income arise from business fund is assessable under the business. The issue under consideration is squarely covered by the Hon’ble Bombay High Court in the case of CIT vs. Lok Holdigns [2009] 308 ITR 356 (Bom), wherein it was held that interest received on deposits made out of advance money so received by the assessee in the course of its business is liable to be taxed as ‘business income’. Furthermore, the Hon’ble Calcutta High Court in the case of Tirupati Woollen Mills Ltd. (1992) 193 ITR 252 (Cal) held that interest arising from deposits made…

Sunshine Import & Exports P. Ltd, Mumbai vs. DCIT Cen Cir (42), Mumbai

In the result, the appeals of the assessee’s are allowed in part

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. Nos.4347 & 4348/Mum/2015 (नििाारण वषा / Assessment Years: 2008-09 & 2009-10) Sunshine Import & Exports Pvt. Ltd. Dy. Cit, Central Circle (42), बिाम/ 28/3, Shree Ramniwas, 1St Bhatwadi, Mumbai Vs. Opera House, Mumbai-400 004 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aalcs 1023 K (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : & आमकय अऩीर सं./I.T.A. Nos.4349 & 4350/Mum/2015 (नििाारण वषा / Assessment Years: 2008-09 & 2009-10) Shine Star Impex Pvt. Ltd. Dy. Cit, Central Circle (42), बिाम/ 28/3, Shree Ramniwas, 1St Bhatwadi, Mumbai Vs. Opera House, Mumbai-400 004 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aalcs 3998 R (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : अऩीराथी की ओय से / Appellant By : Shri Vimal Punmiya – Written Submission प्रत्मथी की ओय से/Respondent By : Shri Uday Bhaskar Jakke सुनवाई की तायीख / : 19.7.2016 Date Of Hearing घोषणा की तायीख / : .9.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.:

…e as "Income from other Source". The Ld. AO failed to consider that income arise from business fund is assessable under the business. The issue under consideration is squarely covered by the Hon’ble Bombay High Court in the case of CIT vs. Lok Holdigns [2009] 308 ITR 356 (Bom), wherein it was held that interest received on deposits made out of advance money so received by the assessee in the course of its business is liable to be taxed as ‘business income’. Furthermore, the Hon’ble Calcutta High Court in the case of Tirupati Woollen Mills Ltd. (1992) 193 ITR 252 (Cal) held that interest arising from deposits made…

Il & Fs Renewable Energy Ltd, Mumbai vs. DCIT 10(1), Mumbai

The appeal of the assessee is allowed

Bench: Shri Sakijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am Vs. Dy.Commr. Of Income Tax- M/S Il&Fs Renewable Energy Ltd. Plot No. C-22 10(1) Room No. 455, 4 Th Floor, G-Block, Bandra-Kurla Complex Aaykar Bhavan, Maharshi Bandra(E), Karve Road, Marine Lines, Mumbai – 400 051. Mumbai – 400020. Pan: Aabci8599N Appellant .. Respondent

…IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI SAKIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM Vs. Dy.Commr. of Income Tax- M/s IL&FS Renewable Energy Ltd. Plot No. C-22 10(1) Room No. 455, 4 th Floor, G-Block, Bandra-Kurla Complex Aaykar Bhavan, Maharshi Bandra(E), Karve Road, Marine Lines, Mumbai – 400 051. Mumbai – 400020. PAN: AABCI8599N Appellant .. Respondent Revenue by .. Shri Sridhar E (DR) Assessee by .. Shri Dilip V. Lakhani (AR) Date of hearing 06-09-2016 Date of pronouncement 06-09-2016 O R D E R PER MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER: 1. The instant appeal has been fil…

DCIT 24(3), Mumbai vs. Gundecha Builders, Mumbai

In the result appeal filed by the revenue for the Asst

Bench: Shri Rajendra (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2011-12

…AO or the facts and circumstances of both the cases. Following the Order of his predecessor in the case of M/s. ME and relying upon the judgments of the Hon‟ble High Courts of Karnataka and Bombay in the cases Satish Chandra & Co.(234 ITR 70) and Lok Holdings(308 ITR 356) decided the issue in favour of the assessee. He held that interest earned on surplus funds of business should be assessed as business income and not as income from other sources. He further directed the AO to allow the interest paid against the same, accordingly as per the provisions of Act. 2.3. Before us, Departmental Representative (DR) supp…

Andhra Pradesh Expressway Ltd, Mumbai vs. Asst CIT 14(1)(1), Mumbai

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

Bench: Shri B.R. Baskaran (Am)& Ramlal Negi (Jm)

…been made out of funds generated from the business of the assessee and hence the interest income should be assessed under the head Business. In this regard, he placed reliance on the decision rendered by Hon’ble Bombay High Court in the case of Lok Holdings (308 ITR 356) and also the decision rendered by the co-ordinate bench in the case of M/s West Gujarat Expressway Ltd (ITA No. 1284/Mum/2011 dated 27.02.2013). In the alternative, the Ld A.R submitted that the assessee has borrowed huge funds and they are repayable in predetermined instalments on fixed dates. Hence the funds, which are immediately required, wa…

ACIT 8(1), Mumbai vs. Bunge India P. Ltd, Mumbai

…ivity.He relied upon the cases of Sony India(P) Ltd (315ITR150-AT),E-gain indications Private Ltd(118 ITD 243)Mentor Graphics (Noida)Private Ltd(109 ITD 101),Dharampal Premchand Ltd(317 ITR 353), Vellore Electric Corporation Ltd.(227 ITR 557), Lokay Holdings (308 ITR 356). 6.We find that with a view to benchmark the international transactions of the MTA,the assessee had carried out detailed comprehensive benchmarking analysis, that it had selected TNMM is the most appropriate method(MAM),that it carried out a search process on capitaline database for identifying the comparables,that the search resulted into iden…