CIT v. Rajendra Prasad Moody

115 ITR 519Supreme Court of India1978#191 most cited

What is CIT v. Rajendra Prasad Moody authority for?

For deductions under Section 57(iii) relating to "Income from Other Sources," an expenditure is allowable if it is laid out wholly and exclusively for the purpose of making or earning such income, even if no income is actually earned in that previous year.

386

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2009 to 2026.

Also referred to as

CIT v. Rajendra Prasad Moody · Rajendra Prasad Moody · 115 ITR 519 · Section 57(iii) · Income from Other Sources · deductibility of expenditure · expenses without income · wholly and exclusively · purpose of making income · Section 14A distinction · disallowance of expenses

Sections most often in play

Section 143(3)Section 57(iii)Section 1961Section 14ASection 37(1)Section 68Section 36(1)(iii)Section 143(2)

Issues it is cited on

section 57(iii)section 57disallowance u/s 14adisallowance under section 14asection 14acapital expendituresection 37(1)income from other sourcessection 37salaryprevious yearsection 10

Judgments citing CIT v. Rajendra Prasad Moody

JCIT (OSD) Circle- 16(2), New Delhi vs. Mayar Health Resorts Pvt. Ltd., New Delhi

In the result, the appeals of the assessee are partly allowed and the appeal of the Revenue is partly allowed

ITA 3548/DEL/2018[2011-12]Status: DisposedITAT Delhi29 Jul 2024AY 2011-12

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Raghav Sharma, CA &For Respondent: Sh. Anshul, Sr. DR
Section 143(3)Section 145(2)Section 145(3)Section 209Section 35D(2)(c)

…/- u/s 14A of the Act without considering legal principle that allowability & disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon'ble Supreme Court in the case of CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519 and without considering ratio decidendi as upheld in the cases of CIT Vs. Walfort Share and Stock Brokers P. Ltd. [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT[2012] 347 ITR 272 (Delhi) on application of provisions of section 14A of the Act? 3. Whether on the facts and circumstances of the case, fid, CIT(A) is legally justified in deleting t…

Mayar Health Resorts Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are partly allowed and the appeal of the Revenue is partly allowed

ITA 326/DEL/2015[2010-11]Status: DisposedITAT Delhi29 Jul 2024AY 2010-11

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Raghav Sharma, CA &For Respondent: Sh. Anshul, Sr. DR
Section 143(3)Section 145(2)Section 145(3)Section 209Section 35D(2)(c)

…/- u/s 14A of the Act without considering legal principle that allowability & disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon'ble Supreme Court in the case of CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519 and without considering ratio decidendi as upheld in the cases of CIT Vs. Walfort Share and Stock Brokers P. Ltd. [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT[2012] 347 ITR 272 (Delhi) on application of provisions of section 14A of the Act? 3. Whether on the facts and circumstances of the case, fid, CIT(A) is legally justified in deleting t…

Mayar Health Resorts Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are partly allowed and the appeal of the Revenue is partly allowed

ITA 6228/DEL/2013[2009-10]Status: DisposedITAT Delhi29 Jul 2024AY 2009-10

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Raghav Sharma, CA &For Respondent: Sh. Anshul, Sr. DR
Section 143(3)Section 145(2)Section 145(3)Section 209Section 35D(2)(c)

…/- u/s 14A of the Act without considering legal principle that allowability & disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon'ble Supreme Court in the case of CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519 and without considering ratio decidendi as upheld in the cases of CIT Vs. Walfort Share and Stock Brokers P. Ltd. [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT[2012] 347 ITR 272 (Delhi) on application of provisions of section 14A of the Act? 3. Whether on the facts and circumstances of the case, fid, CIT(A) is legally justified in deleting t…

Mayar Health Resorts Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are partly allowed and the appeal of the Revenue is partly allowed

ITA 5109/DEL/2012[2008-09]Status: DisposedITAT Delhi29 Jul 2024AY 2008-09

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Raghav Sharma, CA &For Respondent: Sh. Anshul, Sr. DR
Section 143(3)Section 145(2)Section 145(3)Section 209Section 35D(2)(c)

…/- u/s 14A of the Act without considering legal principle that allowability & disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon'ble Supreme Court in the case of CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519 and without considering ratio decidendi as upheld in the cases of CIT Vs. Walfort Share and Stock Brokers P. Ltd. [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT[2012] 347 ITR 272 (Delhi) on application of provisions of section 14A of the Act? 3. Whether on the facts and circumstances of the case, fid, CIT(A) is legally justified in deleting t…

Raj Kumar Kandoi, Jaipur vs. ACIT Central Circle 3, Jaipur

In the result, the appeal of the assessee stands allowed with no orders as to costs

ITA 575/JPR/2024[2017-18]Status: DisposedITAT Jaipur10 Jul 2024AY 2017-18
For Appellant: Shri S.L. Poddar, AdvocateFor Respondent: Shri Rajesh Kumar Meena, Addl. CIT-DR
Section 57

…fulfilled in order to qualify the expenditure for deduction it does not say that the expenditure shall be 11 RAJ KUMAR KANDOI VS ACIT, CIRCLE-3, JAIPUR deductible only if any income is made or earned (CIT vs. Rajendra Prasad Moody (1978), Taxation 51 (3)-52, 115 ITR 519 (SC) : CIT vs. Murli Manohar (1998) IX SITC 673 (All) : CIT vs. Rampur Timber & Turney Co. Ltd. (1981) 129 ITR 58 (All.) : CIT vs. Administrator General of Madras (1998) 142 Taxation 85 (Mad.). The Gujarat High Court in Padmavati Jaykrishna vs. CIT (1981) 131 ITR 653 has held that in order to decide whether an expenditure is a permissible deducti…

Care Foundation Village, Delhi vs. Income Tax Officer Ward Exemption 1(3), Delhi

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

ITA 3746/DEL/2023[2014-15]Status: DisposedITAT Delhi05 Jul 2024AY 2014-15

Bench: Nfac, Delhi.

Section 11Section 11(1)Section 12ASection 12A(2)Section 143(1)Section 154Section 57

…urisdictional Delhi High Court in the case of DDIT Vs Petroleum Sports Promotion board Delhi High Court 362 ITR 235. The decision of Hon'ble Jurisdictional Delhi High Court is based on the decision of Hon'ble Supreme Court in CIT vs. Rajendra Prasad Moody, 115 ITR 519 that Section 57 (ii) must be construed broadly and the somewhat wider language of Section 37(i) should not affect the interpretation of Section 57 (iii). e) With regard to Ground No.3 the rectification intimation is challenged on the ground that the maximum marginal rate of tax has been charged on the gross income of the appellant by applying…

N. K. Proteins Ltd., Ahmedabad vs. The Assistant Commissioner of Income Tax, Circle-3(1)(1), Ahmedabad

ITA 313/AHD/2022[2017-18]Status: DisposedITAT Ahmedabad12 Jun 2024AY 2017-18

Bench: Or During The Course Of Hearing Of The Appeal.”

For Appellant: Shri Vartik Choksi, A.RFor Respondent: Shri Ketan Gajjar, CIT-D.R
Section 115JSection 14ASection 250

…us way back in the year 2010 has, by saying so, held that the expenditure in relation to earning of exempt income has to be disallowed and exemption is only of net income. The Hon'ble Supreme Court in the case of CITvs. Rajendra Prasad Moody (2002-TIOL-751- S&115 ITR 519 (SC) has held that even if there was no income, the expenditure is allowable. It is now well settled that income includes loss also as held by the Hon'ble Supreme Court in the case of CIT vs. Harprasad & Co. P Ltd. 99 ITR 118 (SC). As held by the Hon'ble Supreme Court in the case of Walfort (supra) that only the net of the income is taxable i.e.…

Thrrill Park Limited, Mumbai vs. Commissioner of Income Tax -Appeals, Delhi

ITA 316/MUM/2024[2018-2019]Status: DisposedITAT Mumbai27 May 2024AY 2018-2019
Section 10(35)Section 143(3)Section 14A

…sion in Taikisha Engineering India Pvt. Ltd. (supra) does not specifically deal with this issue. 22. It was suggested by Mr. Hossain that, in the context of Section 57(iii), the Supreme Court in Commissioner Of Income Tax, West v. Rajendra Prasad Moody [1978] 115 ITR 519 (SC) explained that deduction is allowable even where income was not actually earned in the AY in question. This aspect of the matter was dealt with by this Court in M/s Cheminvest Ltd. (supra) where it reversed the decision of the Special Bench of the ITAT by observing as under: “20. Since the Special Bench has relied upon the decision of the Su…

Pradipta Kumar Parida DCIT321, Mumbai vs. Kail Limited, Mumbai

ITA 4669/MUM/2023[2014-15]Status: DisposedITAT Mumbai22 May 2024AY 2014-15
Section 143(3)Section 14A

…sion in Taikisha Engineering India Pvt. Ltd. (supra) does not specifically deal with this issue. 22. It was suggested by Mr. Hossain that, in the context of Section 57(iii), the Supreme Court in Commissioner Of Income Tax, West v. Rajendra Prasad Moody [1978] 115 ITR 519 (SC) explained that deduction is allowable even where income was not actually earned in the AY in question. This aspect of the matter was dealt with by this Court in M/s Cheminvest Ltd. (supra) where it reversed the decision of the Special Bench of the ITAT by observing as under: “20. Since the Special Bench has relied upon the decision of the Su…

Sant Shankar Maharaj Ashram, Amravati vs. Deputy Commissioner of Income Tax, CPC, Bangalore

The appeal of the assessee is allowed for statistical purposes

ITA 334/NAG/2022[2017-2018]Status: DisposedITAT Nagpur22 Mar 2024AY 2017-2018

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshaliआयकर अपऩल सं. / Ita No. 334/Nag/2022 निर्धारण वषा / Assessment Year : 2017-18 Sant Shankar Maharaj Aashram 01, Pimpal Khuta, Dhamangaon, Amravati-444905. Pan: Aahts0026K . . . . . . . अपीलार्थी / Appellant

For Appellant: Mr Mahavir Atal [‘Ld. AR’]For Respondent: Mr K C Kanojiya [‘Ld. DR’]
Section 11Section 143(1)Section 246A(1)(a)Section 250

…he income is assessed under residual head of ‘Income from Other Sources’ then full play must be followed by allowing deduction u/s 57 of the Act with a wider connotation as laid in the decision of Hon’ble Supreme Court in ‘CIT Vs Rajendra Prasad Moody’ [1978, 115 ITR 519 SC]. ITAT-Nagpur Page 4 of 5 Sant Shankar Maharaj Aashram Vs CPC, Bengaluru. 7. In our considered view where benefit of exemption u/s 11 & 12 of the Act denied to the assessee the only resort available to the Revenue is to compute the taxable income in accordance with the provisions of law as applicable. That is to say in arriving at taxable in…

Vidyarthi Vikas Pratishthan Jalgaon, Jalgaon vs. Income Tax Department (NFAC), Delhi

ITA 1194/PUN/2023[2020-21]Status: DisposedITAT Pune02 Feb 2024AY 2020-21

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita No.1194/Pun/2023 िनधा"रणवष" / Assessment Year : 2020-21 Vidyarthi Vikas Pratishthan Assessment Unit, Income Jalgaon, V Tax Department(Nfac) Gat No.148, Yashwant Nagar, S Ramanand Nagar, Maharashtra – 425001. Pan: Aaatv6624R Appellant/ Assessee Respondent /Revenue Assessee By Shri Hari Krishnan – Ar Revenue By Shri Sourabh Nayak – Jcit-Dr Date Of Hearing 01/02/2024 Date Of Pronouncement 02/02/2024 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Delhi Under Section 250 Of The Income Tax Act, 1961 For A.Y.2020-21 Passed On 20.09.2023 Emanating From Order Under Section 143(3) R.W.S 144B Of The Income Tax Act, 1961 Dated 20.09.2022. The Assessee Has Raised The Following Grounds Of Appeal : “1. The Learned Cit(A) Has Erred In Dismissing The Grounds Of Appeal Filed Before Him By The Assessee & In Vidyarthi Vikas Pratishthan Jalgaon[A]

Section 11Section 143(3)Section 250Section 57

…the residual head full play must be allowed to Section 57(iii). Though prima facie it would appear that the phraseology employed in Section 57(iii) is different from Section 37(1), it has been held by the Supreme Court in CIT v. Rajendra Prasad Moody, f 1978] 115 ITR 519 that Section 57(iii) must be construed broadly and the somewhat wider language of Section 37(i) should not affect the interpretation of Section 57(iii). The assessee in the present case was created in 1979 with the object of promoting sports; there was no other object and all its constituents were giving grants/ funds only for that purpose. In tr…

Navayuga Infra Projects Private Limited, Hyderabad vs. Asst. Commissioner of Income Tax, Circle-16(1), Hyderabad

In the result, appeal in ITA No

ITA 106/HYD/2020[2016-17]Status: DisposedITAT Hyderabad29 Dec 2023AY 2016-17

Bench: Shri Rama Kanta Panda & Shri K. Narasimha Chary

For Appellant: Shri Mohd. Afzal, ARFor Respondent: Ms. TH. Vijaya Lakshmi, CIT-DR
Section 12(2)Section 57

…he credit side to justify the deduction of an expense". The question whether an expenditure can be allowed as a deduction only if it has resulted in any income or profits came to be considered by the Supreme Court again in CIT v. Rajendra Prasad Moody, [1978] 115 ITR 519, and it was observed as under: — "We fail to appreciate how expenditure which is otherwise a proper expenditure can cease to be such merely because there is no receipt of income. Whatever is a proper outgoing by way of expenditure must be debited irrespective of whether there is receipt of income or not. That is the plain requirement of proper ac…

Navayuga Infra Projects Private Limited, Hyderabad vs. Asst. Commissioner of Income Tax, Circle-16(1), Hyderabad

In the result, appeal in ITA No

ITA 1724/HYD/2018[2014-15]Status: DisposedITAT Hyderabad29 Dec 2023AY 2014-15

Bench: Shri Rama Kanta Panda & Shri K. Narasimha Chary

For Appellant: Shri K.C. Devdas, ARFor Respondent: Ms. TH. Vijaya Lakshmi, CIT-DR
Section 37

…he credit side to justify the deduction of an expense". The question whether an expenditure can be allowed as a deduction only if it has resulted in any income or profits came to be considered by the Supreme Court again in CIT v. Rajendra Prasad Moody, [1978] 115 ITR 519, and it was observed as under: — "We fail to appreciate how expenditure which is otherwise a proper expenditure can cease to be such merely because there is no receipt of income. Whatever is a proper outgoing by way of expenditure must be debited irrespective of whether there is receipt of income or not. That is the plain requirement of proper ac…

Navayuga Road Projects Private Limited, Hyderabad vs. Asst. Commissioner of Income Tax, Circle-16(1), Hyderabad

In the result, appeal in ITA No

ITA 1723/HYD/2018[2014-15]Status: DisposedITAT Hyderabad29 Dec 2023AY 2014-15

Bench: Shri Rama Kanta Panda & Shri K. Narasimha Chary

For Appellant: Shri K.C. Devdas, ARFor Respondent: Ms. TH. Vijaya Lakshmi, CIT-DR
Section 37

…he credit side to justify the deduction of an expense". The question whether an expenditure can be allowed as a deduction only if it has resulted in any income or profits came to be considered by the Supreme Court again in CIT v. Rajendra Prasad Moody, [1978] 115 ITR 519, and it was observed as under: — "We fail to appreciate how expenditure which is otherwise a proper expenditure can cease to be such merely because there is no receipt of income. Whatever is a proper outgoing by way of expenditure must be debited irrespective of whether there is receipt of income or not. That is the plain requirement of proper ac…

ACIT-1(1)(1), Mumbai vs. M/S. Chemicals and Ferro Alloys Pvt Ltd, Mumbai

In the result, the appeal of the revenue stand dismissed

ITA 1996/MUM/2023[2013-14]Status: DisposedITAT Mumbai11 Dec 2023AY 2013-14

Bench: Shri Aby T Varkey & Shri Amarjit Singhacit-1(1)(1) Vs. M/S Chemical & Ferro 579, Aaykar Bhavan, Alloys Private Limited M.K. Road, 3Rd Floor, Liberty Mumbai – 400020 Building, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai – 400020 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacc4508N Appellant .. Respondent

For Appellant: Sanjay ParikhFor Respondent: H.M. Bhatt
Section 143Section 143(2)

…holding of the assets. The view taken by the tribunal is based on the decision of this Court in Ormerod (India) P. Ltd. CIT (1959) 36 ITR 329 (Born). This decision has now been approved by the Supreme Court in CIT vs Rajendra Prasad M1978 CTR (SC) 141 (1978) 115 ITR 519 (SC). In that view of the matter, question No. 4 must be answered in the affirmative and in favour of the assessee.” IV.4 After analyzing the aforementioned judgments, we have noticed that the CIT(A) has decided this ground against the assessee by taking into consideration the observation of BIFR proceeding. The revenue authorities have concluded…

M/S. Aban Offshore Limited, Chennai vs. Dcitcorporate Circle1(1), Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 798/CHNY/2020[2011-12]Status: DisposedITAT Chennai08 Nov 2023AY 2011-12

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./It(Tp)A Nos.: 21/Chny/2022 & 40/Chny/2022 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Tpo Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita Nos.: 797 & 798/Chny/2020 िनधा"रण वष" / Assessment Years: 2011-12 & आयकर अपील सं./Ita No.: 2757/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita No.: 1672/Chny/2019 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of V. 113, Janpriya Crestpantheon Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. P. Murali Mohana Rao, Ca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 27.09.2023 घोषणा क" तारीख/Date Of Pronouncement : 08.11.2023

For Respondent: Shri. A. Sasikumar, CIT
Section 143Section 143(3)Section 144C(5)Section 147Section 148Section 37(1)

…ment, and the dividend is received in respect of such shares, the interest paid on borrowed funds has been held to be allowable as deduction against dividend income. The Supreme Court has gone a step further in the case of CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519, wherein it has been held that deduction on account of interest paid on borrowed funds is allowable as deduction in computing the income under the head ‘Income from other sources’, even where the dividend is not received in a particular year. If this is the legal position, then we are afraid, how the interest paid by the assessee can be considere…

M/S Aban Offshore Limited, Chennai vs. DCIT, Corporate Circle, Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 797/CHNY/2020[2011-12]Status: DisposedITAT Chennai08 Nov 2023AY 2011-12

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./It(Tp)A Nos.: 21/Chny/2022 & 40/Chny/2022 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Tpo Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita Nos.: 797 & 798/Chny/2020 िनधा"रण वष" / Assessment Years: 2011-12 & आयकर अपील सं./Ita No.: 2757/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita No.: 1672/Chny/2019 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of V. 113, Janpriya Crestpantheon Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. P. Murali Mohana Rao, Ca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 27.09.2023 घोषणा क" तारीख/Date Of Pronouncement : 08.11.2023

For Respondent: Shri. A. Sasikumar, CIT
Section 143Section 143(3)Section 144C(5)Section 147Section 148Section 37(1)

…ment, and the dividend is received in respect of such shares, the interest paid on borrowed funds has been held to be allowable as deduction against dividend income. The Supreme Court has gone a step further in the case of CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519, wherein it has been held that deduction on account of interest paid on borrowed funds is allowable as deduction in computing the income under the head ‘Income from other sources’, even where the dividend is not received in a particular year. If this is the legal position, then we are afraid, how the interest paid by the assessee can be considere…

DCIT Corporate Circle 1(1), Chennai vs. Aban Offshore Ltd., Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 1672/CHNY/2019[2013-14]Status: DisposedITAT Chennai08 Nov 2023AY 2013-14

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./It(Tp)A Nos.: 21/Chny/2022 & 40/Chny/2022 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Tpo Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita Nos.: 797 & 798/Chny/2020 िनधा"रण वष" / Assessment Years: 2011-12 & आयकर अपील सं./Ita No.: 2757/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita No.: 1672/Chny/2019 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of V. 113, Janpriya Crestpantheon Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. P. Murali Mohana Rao, Ca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 27.09.2023 घोषणा क" तारीख/Date Of Pronouncement : 08.11.2023

For Respondent: Shri. A. Sasikumar, CIT
Section 143Section 143(3)Section 144C(5)Section 147Section 148Section 37(1)

…ment, and the dividend is received in respect of such shares, the interest paid on borrowed funds has been held to be allowable as deduction against dividend income. The Supreme Court has gone a step further in the case of CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519, wherein it has been held that deduction on account of interest paid on borrowed funds is allowable as deduction in computing the income under the head ‘Income from other sources’, even where the dividend is not received in a particular year. If this is the legal position, then we are afraid, how the interest paid by the assessee can be considere…

Aban Offshore Limited, Chennai vs. DCIT Corporate Circle 1(1), Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 2757/CHNY/2017[2013-14]Status: DisposedITAT Chennai08 Nov 2023AY 2013-14

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./It(Tp)A Nos.: 21/Chny/2022 & 40/Chny/2022 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Tpo Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita Nos.: 797 & 798/Chny/2020 िनधा"रण वष" / Assessment Years: 2011-12 & आयकर अपील सं./Ita No.: 2757/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita No.: 1672/Chny/2019 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of V. 113, Janpriya Crestpantheon Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. P. Murali Mohana Rao, Ca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 27.09.2023 घोषणा क" तारीख/Date Of Pronouncement : 08.11.2023

For Respondent: Shri. A. Sasikumar, CIT
Section 143Section 143(3)Section 144C(5)Section 147Section 148Section 37(1)

…ment, and the dividend is received in respect of such shares, the interest paid on borrowed funds has been held to be allowable as deduction against dividend income. The Supreme Court has gone a step further in the case of CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519, wherein it has been held that deduction on account of interest paid on borrowed funds is allowable as deduction in computing the income under the head ‘Income from other sources’, even where the dividend is not received in a particular year. If this is the legal position, then we are afraid, how the interest paid by the assessee can be considere…

DCIT, Central Circle-14, New Delhi vs. Mdlr Airlines Pvt. Ltd., New Delhi

In the result, appeal of the revenue is dismissed

ITA 7824/DEL/2018[2012-13]Status: DisposedITAT Delhi19 Oct 2023AY 2012-13

Bench: Shri Chandra Mohan Garg & Shri Girish Agrawalassessment Year: 2012-13 Dcit, Central Circle-14, New Mdlr Airlines Pvt. Ltd. Delhi Flat No. 4, R. R. Apartment, 3-4, Room No. 354, E-2, Ara Centre, Vs Mehglapuri, Mehruli, Civil Jhandewalan Ext., New Delhi- . Lines, New Delhi-110030. 55. (Pan: Aaecm5231C) (Appellant) (Respondent) For Assessee: Shri Gautam Jain, Adv. For Revenue : Ms Suneeta Verma, Cit, Dr

For Appellant: Shri Gautam Jain, AdvFor Respondent: Ms Suneeta Verma, CIT, DR
Section 143(3)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F: NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER Assessment Year: 2012-13 DCIT, Central Circle-14, New MDLR Airlines Pvt. Ltd. Delhi Flat No. 4, R. R. apartment, 3-4, Room No. 354, E-2, ARA Centre, vs Mehglapuri, Mehruli, Civil Jhandewalan Ext., New Delhi- . Lines, New Delhi-110030. 55. (PAN: AAECM5231C) (Appellant) (Respondent) For Assessee: Shri Gautam Jain, Adv. For Revenue : Ms Suneeta Verma, CIT, DR Date of Hearing : 12.09.2023 Date of Pronouncement : 19.10.2023 ORDER PER GIRISH AGRAWAL, Accontant Membe…