CIT v. Reliance Utilities & Power Ltd.

DCIT Cir 2(2)(1), Mumbai vs. L & T Mhi Boilers P.Ltd, Mumbai

Appeal stands dismissed

Bench: Shri C.N. Prasad, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./I.T.A. No.712/Mum/2016 (िनधा"रणवष" / Assessment Year:2009-10) Deputy Commissioner Of Income Tax L & T Mhi Boilers Private Limited 3Rd Floor, L & T House, N.M.Marg, Circle-2(2)(1) बनाम/ Room No.545, Aaykar Bhavan, Vs. Ballard Estate, Fort M.K.Road, Mumbai-400 020 Mumbai-400 098 "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabcl-2635-C (अपीलाथ"/Appellant) (""थ" / Respondent) : Revenue By : R.P.Meena, Ld.Cit Dr Assessee By : Vijay Mehta, Ld. Ar सुनवाई की तारीख/ : 10/07/2018 Date Of Hearing घोषणा की तारीख / : 07/09/2018 Date Of Pronouncement

…eleted by observing that the Share Capital of Rs.50 Crores was much more than the investments of Rs.23.02 Crores and therefore, no disallowance was called for in terms of judgment of Hon’ble Bombay High Court rendered in CIT Vs. Reliance Utilities Power Ltd. [313 ITR 340] & CIT Vs. HDFC Bank [366 ITR 505]. Aggrieved, the revenue is in further appeal before us. 5. The Ld. Departmental Representative [DR], Shri R.P.Meena, submitted that their mere participation in the bidding process would not entitle the assessee to claim deduction of expenditure since manufacturing facility was not ready for production during imp…

DCIT 3(2)(1), Mumbai vs. Mangalore Refinery and Petrochemicals Ltd, Mumbai

In the result the appeal filed by the revenue is dismissed

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2009-10 Mangalore Refinery & Addl. Cit-3(2), Mumbai Petrochemicals Ltd. 15Th Vs. Floor, Maker Tower, Ewing, Cuffe Parade, Mumbai- 400005. Pan No. Aaacm5132A Respondent Appellant Assessment Year: 2009-10 Dcit-3(2) Room No. Mangalore Refinery & 674, 6Th Floor, Petrochemicals Ltd. 15Th Vs. Aayakarbhavan, M. K. Floor, Maker Tower, Ewing, Road, Mumbai-400020. Cuffe Parade, Mumbai- 400005. Pan No. Aaacm5132A Appellant Respondent Assessee By : Mr. J.D.J. Mistri, Senior Advocate & Mr. Madhur Agrawal, Advocate Revenue By : Mr.Samuel Darse, Cit(Dr) Date Of Hearing : 12/06/2018 Date Of Pronouncement: 07/09/2018

…sufficient own funds/net worth as compared to the investments made as can be seen from the audited financial statements and accordingly, no disallowance u/s 14A is warranted. Reliance is placed by him on the decision in CIT v. Reliance Utilities & Power Ltd. (313 ITR 340) (Bom.), CIT v. HDFC Bank Ltd. (366 ITR 505) (Bom), HDFC Bank Ltd. v. DCIT (383 ITR 529) (Bom) and CIT v. Micro labs Limited (ITA No. 471 of 2015) (Kar). Finally, the Ld. counsel submits that the AO has to examine the computation made by the assessee and only if, on an objective satisfaction recorded by the AO with regard to the correctness of th…

Magnalore Refinery and Petrochemicals Ltd, Mumbai vs. Addl CIT 3(2)

In the result the appeal filed by the revenue is dismissed

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2009-10 Mangalore Refinery & Addl. Cit-3(2), Mumbai Petrochemicals Ltd. 15Th Vs. Floor, Maker Tower, Ewing, Cuffe Parade, Mumbai- 400005. Pan No. Aaacm5132A Respondent Appellant Assessment Year: 2009-10 Dcit-3(2) Room No. Mangalore Refinery & 674, 6Th Floor, Petrochemicals Ltd. 15Th Vs. Aayakarbhavan, M. K. Floor, Maker Tower, Ewing, Road, Mumbai-400020. Cuffe Parade, Mumbai- 400005. Pan No. Aaacm5132A Appellant Respondent Assessee By : Mr. J.D.J. Mistri, Senior Advocate & Mr. Madhur Agrawal, Advocate Revenue By : Mr.Samuel Darse, Cit(Dr) Date Of Hearing : 12/06/2018 Date Of Pronouncement: 07/09/2018

…sufficient own funds/net worth as compared to the investments made as can be seen from the audited financial statements and accordingly, no disallowance u/s 14A is warranted. Reliance is placed by him on the decision in CIT v. Reliance Utilities & Power Ltd. (313 ITR 340) (Bom.), CIT v. HDFC Bank Ltd. (366 ITR 505) (Bom), HDFC Bank Ltd. v. DCIT (383 ITR 529) (Bom) and CIT v. Micro labs Limited (ITA No. 471 of 2015) (Kar). Finally, the Ld. counsel submits that the AO has to examine the computation made by the assessee and only if, on an objective satisfaction recorded by the AO with regard to the correctness of th…

ITO 2(1)(1), Mumbai vs. Abbott India Ltd, Mumbai

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

…made towards interest expenditure when its own funds are more than the amount of investments. In this regard, relied upon the decision of Hon’ble Bombay High Court in the case of HDFC Bank Ltd 366 ITR 505 (Bom) and also CIT vs Reliance Utilities & Power Ltd 313 ITR 340 (Bom). 19. We have heard both the parties and perused the material available on record and gone through the orders of authorities below. We have also considered case laws relied upon by the assessee. The issue of disallowance of interest u/s 14A when mixed funds are more than the amount of investments in shares and securities which yielded exem…