CIT v. Reliance Utilities

ACIT - 14(1)(2), Mumbai vs. Godrej Properties Limited, Mumbai

In the result, the appeal of the assessee is partly allowed and appeal of the revenue is dismissed

Bench: Shri Amarjit Singh & Shri Rahul Chaudharygodrej Properties Ltd. Vs. The Dcit, Circle 14(1)(2) M/S Kalyaniwalla & Room No. 455, 4 Th Floor, Mistry Llp, Esplanade Aayakar Bhavan, House, 2Nd Floor, 29, M.K. Road, Hazarimal Somani Marg, Mumbai – 400 020 For, Mumbai – 400001 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacg3995M Appellant .. Respondent Acit-14(1)(2) Vs. Godrej Properties Ltd, Room No. 455, 4 Th Floor, 5Th Floor, Godrej One, Aayakar Bhavan, M.K. Pirojshanagar, Estern Road, Mumbai – 400020 Express Highway, Vikroli (E) Mumbai – 400079 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacg3995M Appellant .. Respondent Appellant By : Yasmin Dastur Respondent By : Kishore Dhule Date Of Hearing 28.12.2023 Date Of Pronouncement 15.01.2024

…P a g e | 1 ITA No.2994 & 3002/Mum/2023 Godrej Properties Ltd Vs. The DCIT, Circle 14(1)(2) IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER Godrej Properties Ltd. Vs. The DCIT, Circle 14(1)(2) M/s Kalyaniwalla & Room No. 455, 4 th Floor, Mistry LLP, Esplanade Aayakar Bhavan, House, 2nd Floor, 29, M.K. Road, Hazarimal Somani Marg, Mumbai – 400 020 For, Mumbai – 400001 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACG3995M Appellant .. Respondent ACIT-14(1)(2) Vs. Godrej Properties Ltd, Room No. 455, 4 th Floor, 5th Floor, Go…

Godrej Properties Ltd, Mumbai vs. DCIT 14 (1) (2), Mumbai

Bench: Shri Amarjit Singh & Shri Rahul Chaudhary

…Page 1 ITA No.2994 & 3002/Mum/2023 Godrej Properties Ltd Vs. The DCIT, Circle 14(1)(2) IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.2994/Mum/2023 (Α.Υ. 2015-16) Godrej Properties Ltd. M/s Kalyaniwalla & Mistry LLP, Esplanade House, 2nd Floor, 29, Hazarimal Somani Marg, For, Mumbai – 400001 Vs. The DCIT, Circle 14(1)(2) Room No. 455, 4th Floor, Aayakar Bhavan, M.K. Road, Mumbai 400 020 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACG3995M Appellant Respondent ITA No.3002/Mum/2023 (A.Y.2015-16) ACIT-14(1)(2) Room No. 4…

Asstt Commissioner of Income Tax, CC-7(3), Mumbai vs. M/S Macrotech Developers Ltd .(Successor to M/S Sahajanad Hi-Tech Construction Pvt Ltd.), Mumbai

In the result, for A.Y. 2015-16, the appeal of the learned

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm M/S Macrotech Developers Ltd. (Successor To M/S Sahajanad Acit Cc-7(3) Hi-Tech Construction Pvt. Room No. 655, Ltd.) Aayakar Bhavan, 412,4Th Floor, 17-G, Vs. M.K.Road, Vardhaman Chambers, Mumbai- 400 020 Cawasji Patel Road, Horniman Cirlce, Fort, Mumbai-400001 (Respondent) (Appellant) Pan No.Aaecp1936F Acit Cc-7(3) Macrotech Developers Ltd. Room No. 655, (Successor To Bellissimo Aayakar Bhavan, Developers Thane Private Limited) M.K.Road, 412, Floor-4, 17G Vs. Mumbai- 400 020 Vardhman Chamber, Cawasji, Patel Road, Horniman Circle, Fort, Mumabi-400 001 (Respondent) (Appellant) Pan No.Aadco0409D ‘Ita No. 1864/Mum/2022 (Assessment Year 2015-16) Macrotech Developers Ltd. Dcit, (Successor To Bellissimo Central Circle 7(3) Developers Thane Private Room No. 655, 6 Th Floor, Limited) 412, Floor-4, 17G Aaykar Bhavan, Vs. Vardhman Chamber, Cawasji, M. K. Road, Patel Road, Horniman Circle, Mumbai-400 021 Fort, Mumabi-400 001 (Respondent) (Appellant) Pan No.Aadco0409D

…s well as ₹350 crores from zero coupon redeemable preference shares and therefore, the above amount is far more than interest free advance given to other parties. Therefore, following the decision of the Hon'ble Bombay High Court in CIT Vs. Reliance Utilities 313 ITR 304 and CIT vs. HDFC Bank 366 ITR 505, the disallowance only of ₹9,75,000/- was confirmed. ITA Nos. 18931864 & 1885/Mum/2022 023. With respect to the reduction from WIP of the interest disallowed, the learned CIT (A) held that the interest which would not be allowable cannot be claimed as work in progress, however, the disallowance shall be restricte…

Assistant Commissioner of Income Tax, Central Circle-7(3), Mumbai vs. M/S Macrotech Developers Ltd, Mumbai

In the result, for A.Y. 2015-16, the appeal of the learned

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm M/S Macrotech Developers Ltd. (Successor To M/S Sahajanad Acit Cc-7(3) Hi-Tech Construction Pvt. Room No. 655, Ltd.) Aayakar Bhavan, 412,4Th Floor, 17-G, Vs. M.K.Road, Vardhaman Chambers, Mumbai- 400 020 Cawasji Patel Road, Horniman Cirlce, Fort, Mumbai-400001 (Respondent) (Appellant) Pan No.Aaecp1936F Acit Cc-7(3) Macrotech Developers Ltd. Room No. 655, (Successor To Bellissimo Aayakar Bhavan, Developers Thane Private Limited) M.K.Road, 412, Floor-4, 17G Vs. Mumbai- 400 020 Vardhman Chamber, Cawasji, Patel Road, Horniman Circle, Fort, Mumabi-400 001 (Respondent) (Appellant) Pan No.Aadco0409D ‘Ita No. 1864/Mum/2022 (Assessment Year 2015-16) Macrotech Developers Ltd. Dcit, (Successor To Bellissimo Central Circle 7(3) Developers Thane Private Room No. 655, 6 Th Floor, Limited) 412, Floor-4, 17G Aaykar Bhavan, Vs. Vardhman Chamber, Cawasji, M. K. Road, Patel Road, Horniman Circle, Mumbai-400 021 Fort, Mumabi-400 001 (Respondent) (Appellant) Pan No.Aadco0409D

…s well as ₹350 crores from zero coupon redeemable preference shares and therefore, the above amount is far more than interest free advance given to other parties. Therefore, following the decision of the Hon'ble Bombay High Court in CIT Vs. Reliance Utilities 313 ITR 304 and CIT vs. HDFC Bank 366 ITR 505, the disallowance only of ₹9,75,000/- was confirmed. ITA Nos. 18931864 & 1885/Mum/2022 023. With respect to the reduction from WIP of the interest disallowed, the learned CIT (A) held that the interest which would not be allowable cannot be claimed as work in progress, however, the disallowance shall be restricte…

Macrotech Developers Ltd(Successor to Bellissimo Developers Thane Private Limited), Mumbai vs. Dy Commissioner of Income Tax, Central Circle 7(3) (Formerly Income Tax Officer, Ward 6(3)(2)), Mumbai

In the result, for A.Y. 2015-16, the appeal of the learned

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm M/S Macrotech Developers Ltd. (Successor To M/S Sahajanad Acit Cc-7(3) Hi-Tech Construction Pvt. Room No. 655, Ltd.) Aayakar Bhavan, 412,4Th Floor, 17-G, Vs. M.K.Road, Vardhaman Chambers, Mumbai- 400 020 Cawasji Patel Road, Horniman Cirlce, Fort, Mumbai-400001 (Respondent) (Appellant) Pan No.Aaecp1936F Acit Cc-7(3) Macrotech Developers Ltd. Room No. 655, (Successor To Bellissimo Aayakar Bhavan, Developers Thane Private Limited) M.K.Road, 412, Floor-4, 17G Vs. Mumbai- 400 020 Vardhman Chamber, Cawasji, Patel Road, Horniman Circle, Fort, Mumabi-400 001 (Respondent) (Appellant) Pan No.Aadco0409D ‘Ita No. 1864/Mum/2022 (Assessment Year 2015-16) Macrotech Developers Ltd. Dcit, (Successor To Bellissimo Central Circle 7(3) Developers Thane Private Room No. 655, 6 Th Floor, Limited) 412, Floor-4, 17G Aaykar Bhavan, Vs. Vardhman Chamber, Cawasji, M. K. Road, Patel Road, Horniman Circle, Mumbai-400 021 Fort, Mumabi-400 001 (Respondent) (Appellant) Pan No.Aadco0409D

…s well as ₹350 crores from zero coupon redeemable preference shares and therefore, the above amount is far more than interest free advance given to other parties. Therefore, following the decision of the Hon'ble Bombay High Court in CIT Vs. Reliance Utilities 313 ITR 304 and CIT vs. HDFC Bank 366 ITR 505, the disallowance only of ₹9,75,000/- was confirmed. ITA Nos. 18931864 & 1885/Mum/2022 023. With respect to the reduction from WIP of the interest disallowed, the learned CIT (A) held that the interest which would not be allowable cannot be claimed as work in progress, however, the disallowance shall be restricte…

Dy.Citi CC-7(3), Mumbai vs. M/S. Macrotech Developers Ltd (Sucessor to M/S. Lodha Estate Pvt. Ltd, Mumbai

In the result, the appeal of the revenue is dismissed

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No. 837/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2016-17) Dcit, Cc-7(3) बिधम/ M/S. Macrotech Developers Room No. 655, Aayakar Ltd. (Successor To M/S. Lodha Vs. Bhavan, M. K. Road, Estate Private Limited) 4Th Mumbai-400020. 412, Floor, 17G Vardhaman Chamber, Cawasji Patel Road Horniman Circle, Fort, Mumbai-400001. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacl1490J (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Smt. Mahita Nair (Sr.Ar) Assessee By: Shri Niraj Sheth सुनवाई की तारीख / Date Of Hearing: 25/07/2022 घोषणा की तारीख /Date Of Pronouncement: 29/07/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Revenue Against The Order Of The Ld. Cit(A)-49, Mumbai Dated 25.02.2022 Dated 07.09.2018 For Ay.2016-17. 2. The Sole Ground Of The Appeal Of The Revenue Is Against The Action Of The Ld. Cit(A) Deleting The Disallowance U/S 36(1)(Iii) Of The Income Tax Act, 1961 (Hereinafter “The Act”) Amounting To Rs.3,67,86,750/- On The Plea That There Is Absence Of Direct Nexus Between Assessee’S Own Funds & The Investment Made By It. 3. Brief Facts As Noted By The Ao Is That The Assessee Has Taken Loan From Lodha Developers Pvt. Ltd. On Which It Has Paid Interest @

…ption is raised that its own A.Y.2016-17 M/s. Macrotech Developers Ltd. fund was utilized for the [interest free] advances can be drawn and for that proportion referred to the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities 313 ITR 304 (Bom). And further drew our attention to the facts in the present case wherein we note that the interest free funds available to the assessee as on 31.03.2016 was to the tune of Rs.63.75 Lakhs whereas the investment in OPCD was only to the tune of Rs.50.05 Lakhs. Therefore, we note that the Ld. CIT(A) has rightly decided that no disallowance of i…

Conwood Realty P. Ltd., Mumbai vs. Dy CIT -Circle-12(1)(2), Mumbai

Bench: Shri Rajesh Kumar () & Shri Ravish Sood () M/S Conwood Realty Pvt. Ltd. Dy. Cit, Circle-12(1)(2) Yashodham, D.B. House, Gen. Vs. Aayakar Bhavan, 2Nd Floor, A.K. Vaidya Marg, Goregaon M.K. Road, Mumbai 400020 (East), Mumbai – 400063 Pan No. Aadcc2501Q (Assessee) (Revenue) C.O. No. 55/Mum/2021 (Arising Out Of Ita No. 6447/Mum/2019) (Assessment Year: 2012-13) Acit, Circle-12(1)(2) M/S Conwood Realty Pvt. Ltd. R. No. 128D, 1St Floor, Aayakar Vs. Yashodham, D.B. House, Gen. Bhavan, Churchgate, A.K. Vaidya Marg, Goregaon Mumbai 400020 (East), Mumbai – 400063 Pan No. Aadcc2501Q (Revenue) (Assessee) Assessee By : Shri Prakash Jhunjhunwala, A.R Revenue By : Ms. Shreekala Pardeshi, D.R Date Of Hearing : 29/07/2021 Date Of Pronouncement : 26/10/2021

…12(1)(2) disallowed. In support of his aforesaid contention the ld. A.R had relied on the judgments of the Hon‟ble High Court of Bombay in the case of CIT Vs. HDFC Bank Ltd. (2014) 366 ITR 505 (Bom) and that of CIT Vs. Reliance Utility & Power Limited (2009) 313 ITR 304 (Bom). 12. Per contra, the ld. Departmental Representative (for short „D.R‟) relied on the orders of the lower authorities. After deliberating at length on the contentions advanced by the ld. Authorized Representatives for both the parties, we find substantial force in the claim of the ld. A.R that as the asesssee had sufficient self-owned funds…