CIT v. Microlabs Ltd.

383 ITR 490High Court2016#553 most cited

What is CIT v. Microlabs Ltd. authority for?

If an assessee possesses interest-free funds exceeding investments in tax-free securities, it is presumed that investments are made from these own funds, precluding disallowance of interest expenditure under Section 14A read with Rule 8D(2)(ii). Additionally, weighted deduction under Section 35(2AB) is computed on the gross expenditure incurred, not net expenditure after reducing income earned.

175

judgments rely on this decision, according to BharatTax’s citation analysis of 367,164 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Microlabs Ltd. · Section 14A · Rule 8D(2)(ii) · disallowance of interest expenditure · interest-free funds · investments in tax-free securities · own funds presumption · Section 35(2AB) · weighted deduction R&D · gross expenditure deduction

Also reported as

79 Taxmann.com 365

Sections most often in play

Section 14ASection 143(3)Section 35(2AB)Section 115JBSection 144C(3)Section 37(1)Section 8DSection 10(34)
Read the full judgment

Issues it is cited on

section 8d(2)(ii)section 14(2)r&d expendituresection 92(1)disallowance of interest expendituresection 14a(1)section 92b(1)section 115jb(2)corporate guaranteeweighted deductionsection 35(2ab)legal expenses

Judgments citing CIT v. Microlabs 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

…respect of disallowance made u/s 14A r.w. Rule 8D(ii). He relied on the various case laws:  CIT Vs Syntex Industries Ltd. (2017) 82 taxmann.com 171 (Guj.)  Indian Sugar Exim Corporation Ltd. (2012) 206 taxmann.com 242 (Del.)  CIT Vs Microlabs Ltd. (2017) 79 Taxmann.com 365 (Kar.)  Gujarat Flurochemicals Ltd. Vs DCIT (2018) Taxmann.com 10 (Ahd.)  Ultratech Cement Ltd. Vs ACIT (2017) 88 taxmann.com 907 (Mum. Trib.) ITA Nos. 5230, 5231 & 5232/Del/2015 & Petronet LNG Ltd.  Axis Bank Ltd. Vs ACIT (2017) 79 taxmann.com 187 (Ahd. – Trib.)  ACIT Vs A.U. Financiers India Ltd. (2019) 175 ITD 245 (Jaipur)  Goyal…

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

…respect of disallowance made u/s 14A r.w. Rule 8D(ii). He relied on the various case laws:  CIT Vs Syntex Industries Ltd. (2017) 82 taxmann.com 171 (Guj.)  Indian Sugar Exim Corporation Ltd. (2012) 206 taxmann.com 242 (Del.)  CIT Vs Microlabs Ltd. (2017) 79 Taxmann.com 365 (Kar.)  Gujarat Flurochemicals Ltd. Vs DCIT (2018) Taxmann.com 10 (Ahd.)  Ultratech Cement Ltd. Vs ACIT (2017) 88 taxmann.com 907 (Mum. Trib.) ITA Nos. 5230, 5231 & 5232/Del/2015 & Petronet LNG Ltd.  Axis Bank Ltd. Vs ACIT (2017) 79 taxmann.com 187 (Ahd. – Trib.)  ACIT Vs A.U. Financiers India Ltd. (2019) 175 ITD 245 (Jaipur)  Goyal…

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

…respect of disallowance made u/s 14A r.w. Rule 8D(ii). He relied on the various case laws:  CIT Vs Syntex Industries Ltd. (2017) 82 taxmann.com 171 (Guj.)  Indian Sugar Exim Corporation Ltd. (2012) 206 taxmann.com 242 (Del.)  CIT Vs Microlabs Ltd. (2017) 79 Taxmann.com 365 (Kar.)  Gujarat Flurochemicals Ltd. Vs DCIT (2018) Taxmann.com 10 (Ahd.)  Ultratech Cement Ltd. Vs ACIT (2017) 88 taxmann.com 907 (Mum. Trib.) ITA Nos. 5230, 5231 & 5232/Del/2015 & Petronet LNG Ltd.  Axis Bank Ltd. Vs ACIT (2017) 79 taxmann.com 187 (Ahd. – Trib.)  ACIT Vs A.U. Financiers India Ltd. (2019) 175 ITD 245 (Jaipur)  Goyal…

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

…respect of disallowance made u/s 14A r.w. Rule 8D(ii). He relied on the various case laws:  CIT Vs Syntex Industries Ltd. (2017) 82 taxmann.com 171 (Guj.)  Indian Sugar Exim Corporation Ltd. (2012) 206 taxmann.com 242 (Del.)  CIT Vs Microlabs Ltd. (2017) 79 Taxmann.com 365 (Kar.)  Gujarat Flurochemicals Ltd. Vs DCIT (2018) Taxmann.com 10 (Ahd.)  Ultratech Cement Ltd. Vs ACIT (2017) 88 taxmann.com 907 (Mum. Trib.) ITA Nos. 5230, 5231 & 5232/Del/2015 & Petronet LNG Ltd.  Axis Bank Ltd. Vs ACIT (2017) 79 taxmann.com 187 (Ahd. – Trib.)  ACIT Vs A.U. Financiers India Ltd. (2019) 175 ITD 245 (Jaipur)  Goyal…

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

…respect of disallowance made u/s 14A r.w. Rule 8D(ii). He relied on the various case laws:  CIT Vs Syntex Industries Ltd. (2017) 82 taxmann.com 171 (Guj.)  Indian Sugar Exim Corporation Ltd. (2012) 206 taxmann.com 242 (Del.)  CIT Vs Microlabs Ltd. (2017) 79 Taxmann.com 365 (Kar.)  Gujarat Flurochemicals Ltd. Vs DCIT (2018) Taxmann.com 10 (Ahd.)  Ultratech Cement Ltd. Vs ACIT (2017) 88 taxmann.com 907 (Mum. Trib.) ITA Nos. 5230, 5231 & 5232/Del/2015 & Petronet LNG Ltd.  Axis Bank Ltd. Vs ACIT (2017) 79 taxmann.com 187 (Ahd. – Trib.)  ACIT Vs A.U. Financiers India Ltd. (2019) 175 ITD 245 (Jaipur)  Goyal…

Assistant Commissioner of Income Tax, Central Circle-5(1)(1), Bangalore vs. M/S Nitesh Estates Ltd, Bangalore

In the result, the appeal filed by the revenue and the appeal of the assessee for AY 2012-13 are dismissed

ITA 2005/BANG/2017[2012-13]Status: DisposedITAT Bangalore09 Dec 2020AY 2012-13

Bench: Shri George George K. & Shri B.R. Baskaranita Nos.1916 To 1918/Bang/2017 Assessment Year: 2010-11 M/S. Nitesh Estates Ltd. 8Th Floor, Nitesh Timesquare, #8, M.G. Road Dcit Vs. Bengaluru Circle-5(1)(1) Pan No : Aabcn9267C Bangalore Appellant Respondent Assessment Year: 2011-12 M/S. Nitesh Estates Ltd., Bangalore Acit, Range-12 Vs. Bangalore Appellant Respondent Assessment Year: 2012-13 M/S. Nitesh Estates Ltd., Bangalore Acit, Circle-5(1)(1) Vs. Bangalore Appellant Respondent Assessment Years: 2012-13 Acit, Circle-5(1)(1) Vs. M/S. Nitesh Estates Ltd., Bangalore Bangalore Appellant Respondent Appellant By : Shri V. Srinivasan, A.R. Respondent By : Smt. R. Premi, D.R. Date Of Hearing : 09.12.2020 Date Of Pronouncement : 09.12.2020

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Smt. R. Premi, D.R
Section 14A

…ince the own funds available with the assessee is more than the value of investments. The Ld. A.R. submitted that the above said proposition is supported by the decision rendered by Hon’ble Jurisdictional Karnataka High Court in the case of Micro Labs Limited 383 ITR 490. Accordingly, he contended that the disallowance made out of interest expenditure u/r 8D(2)(ii) should be deleted. 5.1 The Ld. D.R., however, submitted that the contentions of the assessee require examination at the end of the A.O. 5.2 We heard rival contentions on this issue. According to the Ld. A.R., disallowance out of interest expenditure…

M/S Nitesh Estates Ltd, Bangalore vs. Additional Commissioner of Income Tax Range-5(1), Bangalore

In the result, the appeal filed by the revenue and the appeal of the assessee for AY 2012-13 are dismissed

ITA 1918/BANG/2017[2012-13]Status: DisposedITAT Bangalore09 Dec 2020AY 2012-13

Bench: Shri George George K. & Shri B.R. Baskaranita Nos.1916 To 1918/Bang/2017 Assessment Year: 2010-11 M/S. Nitesh Estates Ltd. 8Th Floor, Nitesh Timesquare, #8, M.G. Road Dcit Vs. Bengaluru Circle-5(1)(1) Pan No : Aabcn9267C Bangalore Appellant Respondent Assessment Year: 2011-12 M/S. Nitesh Estates Ltd., Bangalore Acit, Range-12 Vs. Bangalore Appellant Respondent Assessment Year: 2012-13 M/S. Nitesh Estates Ltd., Bangalore Acit, Circle-5(1)(1) Vs. Bangalore Appellant Respondent Assessment Years: 2012-13 Acit, Circle-5(1)(1) Vs. M/S. Nitesh Estates Ltd., Bangalore Bangalore Appellant Respondent Appellant By : Shri V. Srinivasan, A.R. Respondent By : Smt. R. Premi, D.R. Date Of Hearing : 09.12.2020 Date Of Pronouncement : 09.12.2020

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Smt. R. Premi, D.R
Section 14A

…ince the own funds available with the assessee is more than the value of investments. The Ld. A.R. submitted that the above said proposition is supported by the decision rendered by Hon’ble Jurisdictional Karnataka High Court in the case of Micro Labs Limited 383 ITR 490. Accordingly, he contended that the disallowance made out of interest expenditure u/r 8D(2)(ii) should be deleted. 5.1 The Ld. D.R., however, submitted that the contentions of the assessee require examination at the end of the A.O. 5.2 We heard rival contentions on this issue. According to the Ld. A.R., disallowance out of interest expenditure…

M/S. Nitesh Estates Ltd, Bangalore vs. The Addl. Commissioner of Income Tax, Range-12, Bangalore

In the result, the appeal filed by the revenue and the appeal of the assessee for AY 2012-13 are dismissed

ITA 1917/BANG/2017[2011-12]Status: DisposedITAT Bangalore09 Dec 2020AY 2011-12

Bench: Shri George George K. & Shri B.R. Baskaranita Nos.1916 To 1918/Bang/2017 Assessment Year: 2010-11 M/S. Nitesh Estates Ltd. 8Th Floor, Nitesh Timesquare, #8, M.G. Road Dcit Vs. Bengaluru Circle-5(1)(1) Pan No : Aabcn9267C Bangalore Appellant Respondent Assessment Year: 2011-12 M/S. Nitesh Estates Ltd., Bangalore Acit, Range-12 Vs. Bangalore Appellant Respondent Assessment Year: 2012-13 M/S. Nitesh Estates Ltd., Bangalore Acit, Circle-5(1)(1) Vs. Bangalore Appellant Respondent Assessment Years: 2012-13 Acit, Circle-5(1)(1) Vs. M/S. Nitesh Estates Ltd., Bangalore Bangalore Appellant Respondent Appellant By : Shri V. Srinivasan, A.R. Respondent By : Smt. R. Premi, D.R. Date Of Hearing : 09.12.2020 Date Of Pronouncement : 09.12.2020

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Smt. R. Premi, D.R
Section 14A

…ince the own funds available with the assessee is more than the value of investments. The Ld. A.R. submitted that the above said proposition is supported by the decision rendered by Hon’ble Jurisdictional Karnataka High Court in the case of Micro Labs Limited 383 ITR 490. Accordingly, he contended that the disallowance made out of interest expenditure u/r 8D(2)(ii) should be deleted. 5.1 The Ld. D.R., however, submitted that the contentions of the assessee require examination at the end of the A.O. 5.2 We heard rival contentions on this issue. According to the Ld. A.R., disallowance out of interest expenditure…

M/S Nitesh Estates Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-5(1)(1), Bangalore

In the result, the appeal filed by the revenue and the appeal of the assessee for AY 2012-13 are dismissed

ITA 1916/BANG/2017[2010-11]Status: DisposedITAT Bangalore09 Dec 2020AY 2010-11

Bench: Shri George George K. & Shri B.R. Baskaranita Nos.1916 To 1918/Bang/2017 Assessment Year: 2010-11 M/S. Nitesh Estates Ltd. 8Th Floor, Nitesh Timesquare, #8, M.G. Road Dcit Vs. Bengaluru Circle-5(1)(1) Pan No : Aabcn9267C Bangalore Appellant Respondent Assessment Year: 2011-12 M/S. Nitesh Estates Ltd., Bangalore Acit, Range-12 Vs. Bangalore Appellant Respondent Assessment Year: 2012-13 M/S. Nitesh Estates Ltd., Bangalore Acit, Circle-5(1)(1) Vs. Bangalore Appellant Respondent Assessment Years: 2012-13 Acit, Circle-5(1)(1) Vs. M/S. Nitesh Estates Ltd., Bangalore Bangalore Appellant Respondent Appellant By : Shri V. Srinivasan, A.R. Respondent By : Smt. R. Premi, D.R. Date Of Hearing : 09.12.2020 Date Of Pronouncement : 09.12.2020

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Smt. R. Premi, D.R
Section 14A

…ince the own funds available with the assessee is more than the value of investments. The Ld. A.R. submitted that the above said proposition is supported by the decision rendered by Hon’ble Jurisdictional Karnataka High Court in the case of Micro Labs Limited 383 ITR 490. Accordingly, he contended that the disallowance made out of interest expenditure u/r 8D(2)(ii) should be deleted. 5.1 The Ld. D.R., however, submitted that the contentions of the assessee require examination at the end of the A.O. 5.2 We heard rival contentions on this issue. According to the Ld. A.R., disallowance out of interest expenditure…

Deputy Commissioner of Income Tax, Central Circle - 2(2), Bangalore vs. M/S. Assetz Infrastructure Private Limited, Bangalore

In the result, the appeal filed by the assessee and revenue are partly allowed

ITA 983/BANG/2019[2014-15]Status: DisposedITAT Bangalore02 Dec 2020AY 2014-15

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year: 2014-15

For Appellant: Shri B. Sudheendra, A.RFor Respondent: Shri Sunil Kumar Agarwal, D.R
Section 14ASection 2(22)(e)Section 36(1)(iii)

…ITA No.563&983/Bang/2019 Assetz Infrastructure Pvt. Ltd., Bengaluru IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER Assessment Year: 2014-15 M/s. Assetz Infrastructure Pvt. Ltd. 2/1, Second Floor, Deputy Commissioner Embassy Icon Annexe of Income-tax Infantry Road Vs. Circle-1(1)(1) Bengaluru-560 001 Bengaluru PAN NO : AAGCA7614K APPELLANT RESPONDENT Assessment Year: 2014-15 M/s. Assetz Infrastructure Deputy Commissioner of Pvt. Ltd. Income-tax 2/1, Second Floor, Embassy Vs. Circle-2(2) Icon Annexe Bengaluru In…

M/S. Alphagrep Securities Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Circle- 1(1)(1), Bangalore

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

ITA 1700/BANG/2019[2016-17]Status: DisposedITAT Bangalore04 Nov 2020AY 2016-17

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.C.Ramesh, CAFor Respondent: Sri.Priyadarshi Mishra, JCIT-DR
Section 143(3)Section 14A

…only Rs.11,07,43,921. The only justification of the CIT(A) was that the investments are from a common pool, and therefore, a portion of the interest disallowance is warranted. The Hon’ble jurisdictional High Court in the case of CIT v. Microlabs Ltd. [(2016) 383 ITR 490 (Kar.)] had held that even in a situation where investments are from common pool, if non-interest bearing funds are more than the investments in tax free securities, no disallowance can be made u/s 14A of the I.T.Act r.w.r. 8D(2)(ii) of the I.T.Rules. The Hon’ble jurisdictional High Court while laying down the above 4 M/s.Alphagrep Securities Pv…

M/S. Alp Consulting Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 11(1), Bangalore

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

ITA 1738/BANG/2019[2010-11]Status: DisposedITAT Bangalore26 Oct 2020AY 2010-11

Bench: Shri N.V. Vasudevan & Shri A K Garodiaassessment Year: 2010-11

For Appellant: Smt. R. Pratibha, AdvocateFor Respondent: Smt. R. Premi, Jt.CIT(DR)(ITAT), Bengaluru
Section 36(1)(iii)

…s:- “4. The said controversy with regard to Section 14-A read with Rule 8D of the Rules has been decided by this Court in the following two judgments which are quoted below for ready reference. (i) Commissioner of Income Tax & Anr. Vs. Microlabs Ltd., [2016] 383 ITR 490 (Karn). "39. Aggrieved by the order of CIT(A), the assessee has raised ground No.2. 40. We have heard the rival submissions. A copy of the availability of funds and investments made was filed before us which is at pages 38 to 42 of the assessee's paperbook and the same is enclosed as ANNEXURE-III to this order. It is clear from the said statement…

The Commissioner of Income Tax vs. M/S Jindal Aluminium Limited

In the result, we do not find any merit in this

ITA/450/2013HC Karnataka08 Oct 2020

Bench: ALOK ARADHE,H.T. NARENDRA PRASAD

Section 143(3)Section 14ASection 260Section 260ASection 70Section 80I

…ection, reliance has also been placed on decisions of this court in ‘COMMISSIONER OF INCOME TAX VS. SWARNAGIRI WIRE INSULATIONS (P.) LTD’, (2013) 213 TAXMAN 218 and decision in ‘COMMISSIONER OF INCOME TAX AND ANOTHER VS. MICROLABS LTD.’, (2016) 383 ITR 490 (KARN). It is also urged that there is no question of making any disallowance of expenditure under Section 14A as the assessee was already having it sown surplus fund and the Commissioner of Income Tax (Appeals) as well as the Tribunal have allowed the claim under Section 14A of the Act to the extent of Rs.26,61,011/- only after being sati…

M/S. Pai & Pai Enterprises, Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 2(2)(1), Bangalore

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

ITA 2302/BANG/2019[2013-14]Status: DisposedITAT Bangalore26 Jun 2020AY 2013-14

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

For Appellant: Shri Pranav Krishna, AdvocateFor Respondent: Shri Priyadarshi Mishra, Jt.CIT(DR)(ITAT), Bengaluru
Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B R BASKARAN, ACCOUNTANT MEMBER Assessment year: M/s. Pai & Pai Enterprises, Vs. The Assistant Commissioner # 438/1, 20th Main, 1st Block, of Income Tax, Rajajinagar, Circle 2(2)(1), Bengaluru – 560 010. Bengaluru. PAN: AABFP 0658G APPELLANT RESPONDENT Appellant by : Shri Pranav Krishna, Advocate Respondent by : Shri Priyadarshi Mishra, Jt.CIT(DR)(ITAT), Bengaluru. Date of hearing : 24.06.2020 Date of Pronouncement : 26.06.2020 O R D E R Per N.V. Vasudevan, Vice President This appeal by the assessee…

M/S. United Spirits Limted, Bangalore vs. Joint Commissioner of Income Tax, Special Range-7, Bangalore

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 300/BANG/2020[2011-12]Status: DisposedITAT Bangalore24 Jun 2020AY 2011-12

Bench: Shri N.V. Vasudevan & Shri B R Baskaranassessment Year : 2011-12

For Appellant: Shri C. Narayan, CAFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 14ASection 250

…rious contentions of Ld A. R, which are summarized below:- (a) It is the contention of Ld A.R that the own funds available with it is in excess of the investments. The jurisdictional Hon'ble Karnataka High Court in the case of CIT vs. Microlabs Limited (2016)(383 ITR 490) has dealt with an identical issue. The High Court extracted following decision rendered by the Tribunal:- "40. We have heard the rival submissions. A copy of the availability of funds and investments made was filed before us which is at pages 38 to 42 of the assessee's paperbook and the same is enclosed as ANNEXURE-Ill to this order. It is clear…

M/S. Goyal Ispat Private Limited, Bangalore vs. Income Tax Officer, Ward- 3(1)(3), Bengaluru

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

ITA 1755/BANG/2019[2016-17]Status: DisposedITAT Bangalore24 Jun 2020AY 2016-17

Bench: Shri N.V. Vasudevanand Shri B.R. Baskaran, Accoutant Member

For Appellant: Shri S.V. Ravishankar, A.RFor Respondent: Shri Priyadarshi Misra, D.R
Section 10Section 14A

…3. The Ld. A.R. submitted that the own funds available with the assessee is more than the value of investments and hence no disallowance u/s 14A of the Act is called for as per the decision rendered by Karnataka High Court in the case of Micro Labs Limited (383 ITR 490)(Kar) and also the decision rendered by Hon’ble Supreme Court in the case of Reliance Industries Limited 410 ITR 466. Accordingly, he submitted that the interest disallowance made by the A.O. under rule 8D(2)(ii) should be deleted. 4. On the contrary, the Ld. D.R. submitted that the assessee has made long term borrowings to the tune of Rs.3.51…

M/S. United Spirits Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

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

ITA 489/BANG/2017[2012-13]Status: DisposedITAT Bangalore29 May 2020AY 2012-13

Bench: Shri B.R. Baskaran & Shri Pavan Kumar Gadaleit(Tp)A No.489/Bang/2017 (Assessment Year: 2012-13) M/S. United Spirits Limited, Ub Towers, No.24, Vittal Mallya Road, Bangalore-560 001 ….Appellant Vs. Dy. Commissioner Of Income Tax, Circle 7(1)(1), Bangalore. ……Respondent. Assessee By: Shri Perci Pardiwala, Senior Advocate & Shri Ketan Ved, C.A. Revenue By: Shri Bipin C.N, Jcit (D.R) Date Of Hearing : 06.03.2020. Date Of Pronouncement : 29.05.2020. O R D E R Per Shri B.R. Baskaran, A.M. : The Assessee Has Filed This Appeal Challenging The Assessment Order Dated 31-01-2017 Passed By The Assessing Officer For Assessment Year 2012-13 Passed U/S 143(3) R.W.S 144C(13) Of The Act.

For Appellant: Shri Perci Pardiwala, Senior Advocate and Shri Ketan Ved, C.AFor Respondent: Shri Bipin C.N, JCIT (D.R)
Section 143(3)Section 144C(10)Section 144C(13)Section 14ASection 154Section 36(1)(iii)Section 92C

…arious contentions of Ld A.R, which are summarized below:- (a) It is the contention of Ld A.R that the own funds available with it is in excess of the investments. The jurisdictional Hon'ble Karnataka High Court in the case of CIT vs. Microlabs Limited (2016)(383 ITR 490) has dealt with an identical issue. The High Court extracted following decision rendered by the Tribunal:- “40. We have heard the rival submissions. A copy of the availability of funds and investments made was filed before us which is at pages 38 to 42 of the assessee's paperbook and the same is enclosed as ANNEXURE-III to this order. It is clear…

M/S. Ballal Tourist Hotel Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 1(1)(2), Bangalore

In the result, the appeal filed by the assessee is

ITA 1676/BANG/2019[2013-14]Status: DisposedITAT Bangalore11 Mar 2020AY 2013-14

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaran, Accoutant Member

For Appellant: N O N EFor Respondent: Shri R. Premi, D.R
Section 10(34)Section 14A

…investment, only those investments which have yielded exempt income should be considered. 6. We notice that both the above contentions have not been examined by the tax authorities. The Hon’ble Karnataka High Court has held in the case of Microlabs Ltd (383 ITR 490), by concurring with the view taken by Hon’ble Bombay High Court in the case of HDFC Bank Ltd (ITA 33/2012 dated 23-07-2014) has held that no interest disallowance under rule 8D(2)(ii) of I.T. Rules is M/s. Ballal Tourist Hotel Pvt. Ltd., Bangalore Page 4 of 7 called for, when the own funds available with the assessee is in excess of the value…

M/S Festino Commerce Private Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

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

ITA 96/BANG/2018[2013-14]Status: DisposedITAT Bangalore24 Feb 2020AY 2013-14

Bench: Shri Arun Kumar Garodia, Am & Smt. Beena Pillai, Jm Assessment Year : 2013 – 14 M/S Festino Commerce Pvt. Ltd., Flat No. 1102, Pride Regalia, 80/3, Hulimmavu, Vs. Acit, Circle – 3 (1) (1), Bannerghatta Main Road, Bangalore Bengaluru - 560076 Pan: Aaacf4358F Appellant Respondent Assessee By : Shree S. V. Ravishankar, Advocate Revenue By : Shri Manjeet Singh, Addl. Cit Dr Date Of Hearing : 16.12.2019 Date Of Pronouncement : 24.02.2020

For Appellant: Shree S. V. Ravishankar, AdvocateFor Respondent: Shri Manjeet Singh, Addl. CIT DR
Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, AM AND SMT. BEENA PILLAI, JM Assessment Year : 2013 – 14 M/s Festino Commerce Pvt. Ltd., Flat No. 1102, Pride Regalia, 80/3, Hulimmavu, vs. ACIT, Circle – 3 (1) (1), Bannerghatta Main Road, Bangalore Bengaluru - 560076 PAN: AAACF4358F APPELLANT RESPONDENT Assessee by : Shree S. V. Ravishankar, Advocate Revenue by : Shri Manjeet Singh, Addl. CIT DR Date of Hearing : 16.12.2019 Date of Pronouncement : 24.02.2020 O R D E R PER SHRI A.K. GARODIA, AM: This appeal is filed by the assesse and it is directed against the order of…

M/S. Mysore Holdings Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 4(1)(2), Bangalore

In the result, Assessee’s appeal is allowed for statistical purposes

ITA 2479/BANG/2019[2016-17]Status: DisposedITAT Bangalore20 Feb 2020AY 2016-17

Bench: Shri N. V. Vasudevan & Shri A. K. Garodia

For Appellant: Shri Sudheendra B. R., C. AFor Respondent: Shri Manjeet Singh, Addl. CIT DR
Section 14A

…he present year and Rs. 4443.43 Lacs at the end of the present year in addition to Reserves and Surplus of Rs. 2019.43 Lacs as on 31.03.2016. He placed reliance on the judgment of Hon’ble Karnataka High Court rendered in the case of CIT 2 vs. Microlabs Ltd., 383 ITR 490 and submitted that as per this judgment, in the facts of the present case, no disallowance is called for out of interest expenditure under Rule 8D (2) (ii). Regarding disallowance under Rule 8D (2) (iii) out of administrative expenses to the extent of 0.5% of average investments, he placed reliance on the decision of the special bench of the trib…