CIT v. Reliance Utilities & Power Ltd.

ACIT 3(2)(1), Mumbai vs. Indiabulls Wholsale Services Ltd, Mumbai

…d for earning exempt income, that the AO had not disputed the fact that the interest fund of the assessee in terms of share capital and reserves were more than the investment made by the assessee. He referred to the cases of Reliance Utilities and Power Ltd. (313 ITR 340), Maruti Udyog Ltd. (92 ITD 119), Hero Cycles Ltd.(323ITR518)and observed that the assessee had made specific claim about not incurring of any expenditure in relation to exempt dividend income, that the AO had applied the provisions of rule 8D without assigning any reason and in mechanical manner, that rule 8D was not automatic, that the AO had t…

ACIT 3(1)(2), Mumbai vs. Edelweiss Finance & Investments Ltd, Mumbai

Accordingly, relevant grounds raised by the Revenue are dismissed

…the issue of applicability of clause (ii) of Rule 8D(2) relating to interest disallowance. In this regard, CIT (A) held that the case is covered by the judgment of the Hon’ble jurisdictional High Court in the case of CIT vs Reliance Utilities & Power Limited (313 ITR 340) (Bom). Further, CIT (A) also relied on another judgment of the Bombay High Court in the case of HDFC Bank Limited vs. DCIT (383 ITR 529) (Bom) and mentioned that the assessee is having excess interest free funds in such case, no disallowance is called for under clause (ii) of Rule 8D(2) of the Rules. We agree with the said decision of the CIT (A…

Laqshya Media P.Ltd, Mumbai vs. Asst CIT 10(2)(1), Mumbai

Appeal of the AO is dismissed

…ntentions:- i. S.A.Builders Vs. CIT [Supreme Court 288 ITR 1] ii. Hero Cycles Pvt. Ltd. Vs. CIT [Supreme Court] [Civil Appeal No. 514 of 2008] iii. CIT Vs Reliance Communication Infrastructure [207 Taxmann 219 Bombay High Court] iv. CIT Vs Reliance Utilities [313 ITR 340 Bombay High Court] v. CIT Vs Ashok Commercial Enterprises [Bombay High Court] [ITA-L No. 2985 of 2009)] vi. CIT Vs. HDFC Bank Ltd [Bombay High Court][ITA No, 330 of 2012] Per Contra, Ld. DR justified the disallowances made by lower authorities on the ground that deduction thereof could be allowed only if the funds were used wholly and exclusively…

ACIT 10(2)(1), Mumbai vs. Laqshya Media P.Ltd, Mumbai

Appeal of the AO is dismissed

…ntentions:- i. S.A.Builders Vs. CIT [Supreme Court 288 ITR 1] ii. Hero Cycles Pvt. Ltd. Vs. CIT [Supreme Court] [Civil Appeal No. 514 of 2008] iii. CIT Vs Reliance Communication Infrastructure [207 Taxmann 219 Bombay High Court] iv. CIT Vs Reliance Utilities [313 ITR 340 Bombay High Court] v. CIT Vs Ashok Commercial Enterprises [Bombay High Court] [ITA-L No. 2985 of 2009)] vi. CIT Vs. HDFC Bank Ltd [Bombay High Court][ITA No, 330 of 2012] Per Contra, Ld. DR justified the disallowances made by lower authorities on the ground that deduction thereof could be allowed only if the funds were used wholly and exclusively…

DCIT 3(3)(2), Mumbai vs. Smart Chip Ltd, Mumbai

…reserves + surplus) stood at Rs. 43.19 crores, that the amount in question was way above the investments, that the AO had not established any nexus between the expenditure disallowed under rule 8D. He relied upon the cases of Reliance Utilities and Power Ltd.(313 ITR 340),Food Links Services (I) Pvt. Ltd. (ITA/2079 to 84/Mum/ 2011), Wimco Seedlings Ltd (107 ITD 267)and deleted the addition made by the AO under the regular provisions as well as under the MAT provisions. 4.Before us,the Departmental Representative(DR)supported the order of the AO. The Authorised Representative(AR)relied upon the order of the FAA an…

Web Works India P.Ltd, Mumbai vs. DCIT Cir 7(3), Mumbai

The appeal of the assessee is allowed in terms of our aforesaid observations

Bench: Shri B.R Baskaran,Am & Shri Ravish Sood, Jm Web Works India P. Ltd Dy. Commissioner Of Income-Tax, बिधम/ Unit No. 124, Unique Ind Est., Aaykar Bhavan, Mumbai-400 020. Off. Veer Savarkar Marg, Vs. Prabhadevi, Mumbai – 400 025. स्थामी रेखा सं./ जीआइआय सं./ Pan No. Aaacw3955H (अऩीराथी /Appellant) (प्रत्मथी / Respondent) :

…ITA NO. 2834/Mum/2015 1 Web Works India P. Ltd. Vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI B.R BASKARAN,AM AND SHRI RAVISH SOOD, JM Web Works India P. Ltd Dy. Commissioner Of Income-tax, बिधम/ Unit No. 124, Unique Ind Est., Aaykar Bhavan, Mumbai-400 020. Off. Veer Savarkar Marg, Vs. Prabhadevi, Mumbai – 400 025. स्थामी रेखा सं./ जीआइआय सं./ PAN No. AAACW3955H (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : अऩीराथी की ओय से / Appellant by : S/sh. Ashok Mehta & Dinesh Vora, A.Rs. प्रत्मथी की ओय से/Respondent by : Ms. Pooja Swaroop, D.R. सुनवाई की तायीख / : 02.11.2017 Date of Hea…

Siddhesh Capital Market Services P.Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

Appeal of the AO is dismissed

Bench: S/Shri Rajendra, A.M. & Amarjit Singh, J.M. आयकर अपील सुं./Ita No. 6532/Mum/2012,धनधावरण र्र्व /Assessment Year: 2009-10 M/S.Siddhesh Capital Market Services Dy. Commissioner Of Income Tax, P.Ltd,122, Maker Chamber Iii, Circle-3(3), Vs. Nariman Point, Mumbai – 400021 Mumbai. Pan: Aaccs4582N (अपीलाथी /Appellant) (प्रत्यथी / Respondent) आयकर अपील सुं./Ita No.2489/Mum/2015 धनधावरण र्र्व /Assessment Year: 2010-11 Dy. Commissioner Of Income Tax, M/S.Siddhesh Capital Market Services, Vs. Circle-3(3),Mumbai. Nariman Point, Mumbai – 400021 आयकर अपील सुं./Ita No.2517/Mum/2015 धनधावरण र्र्व /Assessment Year: 2010-11 M/S.Siddhesh Capital Market Services, Dy. Commissioner Of Income Tax, Vs. Nariman Point, Mumbai – 400021 Circle-3(3),Mumbai. Revenue By: Shri V. Justin-Dr Assessee By: Shri Vijay Mehta स नर्ाई की तारीख / Date Of Hearing: 03/10/2017 घोर्णा की तारीख / Date Of Pronouncement: 01/01/2018 आयकर अधधधनयम,1961 की धारा 254(1) के अन्द्तगवत आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सदस्य,राजेन्द्र के अन सार -Per Rajendra,Am: Challenging The Orders Dated 26.06.2012 & 12.01.2015 Of Cit(A)-7 & Cit-8,Respectively, The Assessee & The Assessing Officer(Ao)Have Filed Appeals For The Above-Mentioned Two Assessment Years.As The Issues Involved In Both The Appeals Are Common,So,We Are Adjudicat- Ing Them Together. Assessee-Company Is Engaged In The Business Of Finance,Trading, Investment & Derivative Transaction In Shares & Securities. The Details Of Filing Of Returns, Returned Incomes,Dates Of Assessments & Assessed Incomes Can Be Tabulated As Under: Ay. Roi Filed On Returned Income Asstt.Date Assessed Income 09-10 22.09.2009 (-) Rs.81,01,51,079/- 30.11.2011 (-) Rs.80,82,06,669/- 10-11 21.09.2010 Rs. 48,14,034/- 11.02.2013 Rs. 49,72,360/-

…d the facts of the case.We find that the Hon’ble Bombay High Court in the case of HDFC Bank Ltd. (supra)has,with regard to interest disallowance and the availability of the interest free funds,held as under: “In CIT v. RELIANCE UTILITIES AND POWER LTD. [2009] 313 ITR 340 (Bom), it was held that where both interest-free funds and interest bearing funds are available and the interest-free funds are more than the investments made, the presumption is that the investment in the tax-free securities would have been made out of the interest-free funds available with the assessee. Though the decision of this court in RELI…

DCIT Cir 3(3)(1), Mumbai vs. Siddhesh Capital Market Services P.Ltd, Mumbai

Appeal of the AO is dismissed

Bench: S/Shri Rajendra, A.M. & Amarjit Singh, J.M. आयकर अपील सुं./Ita No. 6532/Mum/2012,धनधावरण र्र्व /Assessment Year: 2009-10 M/S.Siddhesh Capital Market Services Dy. Commissioner Of Income Tax, P.Ltd,122, Maker Chamber Iii, Circle-3(3), Vs. Nariman Point, Mumbai – 400021 Mumbai. Pan: Aaccs4582N (अपीलाथी /Appellant) (प्रत्यथी / Respondent) आयकर अपील सुं./Ita No.2489/Mum/2015 धनधावरण र्र्व /Assessment Year: 2010-11 Dy. Commissioner Of Income Tax, M/S.Siddhesh Capital Market Services, Vs. Circle-3(3),Mumbai. Nariman Point, Mumbai – 400021 आयकर अपील सुं./Ita No.2517/Mum/2015 धनधावरण र्र्व /Assessment Year: 2010-11 M/S.Siddhesh Capital Market Services, Dy. Commissioner Of Income Tax, Vs. Nariman Point, Mumbai – 400021 Circle-3(3),Mumbai. Revenue By: Shri V. Justin-Dr Assessee By: Shri Vijay Mehta स नर्ाई की तारीख / Date Of Hearing: 03/10/2017 घोर्णा की तारीख / Date Of Pronouncement: 01/01/2018 आयकर अधधधनयम,1961 की धारा 254(1) के अन्द्तगवत आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सदस्य,राजेन्द्र के अन सार -Per Rajendra,Am: Challenging The Orders Dated 26.06.2012 & 12.01.2015 Of Cit(A)-7 & Cit-8,Respectively, The Assessee & The Assessing Officer(Ao)Have Filed Appeals For The Above-Mentioned Two Assessment Years.As The Issues Involved In Both The Appeals Are Common,So,We Are Adjudicat- Ing Them Together. Assessee-Company Is Engaged In The Business Of Finance,Trading, Investment & Derivative Transaction In Shares & Securities. The Details Of Filing Of Returns, Returned Incomes,Dates Of Assessments & Assessed Incomes Can Be Tabulated As Under: Ay. Roi Filed On Returned Income Asstt.Date Assessed Income 09-10 22.09.2009 (-) Rs.81,01,51,079/- 30.11.2011 (-) Rs.80,82,06,669/- 10-11 21.09.2010 Rs. 48,14,034/- 11.02.2013 Rs. 49,72,360/-

…d the facts of the case.We find that the Hon’ble Bombay High Court in the case of HDFC Bank Ltd. (supra)has,with regard to interest disallowance and the availability of the interest free funds,held as under: “In CIT v. RELIANCE UTILITIES AND POWER LTD. [2009] 313 ITR 340 (Bom), it was held that where both interest-free funds and interest bearing funds are available and the interest-free funds are more than the investments made, the presumption is that the investment in the tax-free securities would have been made out of the interest-free funds available with the assessee. Though the decision of this court in RELI…

Siddhesh Capital Market Services P.Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

Appeal of the AO is dismissed

Bench: S/Shri Rajendra, A.M. & Amarjit Singh, J.M. आयकर अपील सुं./Ita No. 6532/Mum/2012,धनधावरण र्र्व /Assessment Year: 2009-10 M/S.Siddhesh Capital Market Services Dy. Commissioner Of Income Tax, P.Ltd,122, Maker Chamber Iii, Circle-3(3), Vs. Nariman Point, Mumbai – 400021 Mumbai. Pan: Aaccs4582N (अपीलाथी /Appellant) (प्रत्यथी / Respondent) आयकर अपील सुं./Ita No.2489/Mum/2015 धनधावरण र्र्व /Assessment Year: 2010-11 Dy. Commissioner Of Income Tax, M/S.Siddhesh Capital Market Services, Vs. Circle-3(3),Mumbai. Nariman Point, Mumbai – 400021 आयकर अपील सुं./Ita No.2517/Mum/2015 धनधावरण र्र्व /Assessment Year: 2010-11 M/S.Siddhesh Capital Market Services, Dy. Commissioner Of Income Tax, Vs. Nariman Point, Mumbai – 400021 Circle-3(3),Mumbai. Revenue By: Shri V. Justin-Dr Assessee By: Shri Vijay Mehta स नर्ाई की तारीख / Date Of Hearing: 03/10/2017 घोर्णा की तारीख / Date Of Pronouncement: 01/01/2018 आयकर अधधधनयम,1961 की धारा 254(1) के अन्द्तगवत आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सदस्य,राजेन्द्र के अन सार -Per Rajendra,Am: Challenging The Orders Dated 26.06.2012 & 12.01.2015 Of Cit(A)-7 & Cit-8,Respectively, The Assessee & The Assessing Officer(Ao)Have Filed Appeals For The Above-Mentioned Two Assessment Years.As The Issues Involved In Both The Appeals Are Common,So,We Are Adjudicat- Ing Them Together. Assessee-Company Is Engaged In The Business Of Finance,Trading, Investment & Derivative Transaction In Shares & Securities. The Details Of Filing Of Returns, Returned Incomes,Dates Of Assessments & Assessed Incomes Can Be Tabulated As Under: Ay. Roi Filed On Returned Income Asstt.Date Assessed Income 09-10 22.09.2009 (-) Rs.81,01,51,079/- 30.11.2011 (-) Rs.80,82,06,669/- 10-11 21.09.2010 Rs. 48,14,034/- 11.02.2013 Rs. 49,72,360/-

…d the facts of the case.We find that the Hon’ble Bombay High Court in the case of HDFC Bank Ltd. (supra)has,with regard to interest disallowance and the availability of the interest free funds,held as under: “In CIT v. RELIANCE UTILITIES AND POWER LTD. [2009] 313 ITR 340 (Bom), it was held that where both interest-free funds and interest bearing funds are available and the interest-free funds are more than the investments made, the presumption is that the investment in the tax-free securities would have been made out of the interest-free funds available with the assessee. Though the decision of this court in RELI…

ITO 6(1)(2), Mumbai vs. Amoolya Engineers P.Ltd, Mumbai

Accordingly this ground raised by the revenue is partly allowed

Bench: Shri Shamim Yahya, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 6294/Mum/2016, (निर्धारणवर्ा / Assessment Year: 2009-10)

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM & SHRI SANDEEP GOSAIN, JM आयकरअपीलसं./ I.T.A. No. 6294/Mum/2016, (निर्धारणवर्ा / Assessment Year: 2009-10) ITO 6(1)(2) Amoolya Engineers Pvt. Room No. 508, 5th floor, Ltd. AayakarBhavan, M. K. Road, 9A-16, Gr. Floor, बिधम/ Mumbai. TaherManison, 16 Vs. Nagdevi Area,NayanDhuru Cross Lane, Mumbai-400003. स्थायीलेखासं./जीआइआरसं./PAN/GIR No. AADCA0172F (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant by : Shri Ram Tiwari प्रत्यथीकीओरसे/Respondentby : Shri Bhupendra Shah सुनवाईकीतारीख/ : 14/09/2017 Date of Hearing…

DCIT Cir 3(3)(1), Mumbai vs. Sicom Investment & Finance Ltd, Mumbai

Bench: Shri Rajendra, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 191/Mum/2015, (निर्धारणवर्ा / Assessment Year: 2011-12)

…t be disallowed u/s. 14A. In the case of CIT v. HDFC Ltd.(ITA No. 330 of 2012) Order dated 23/07/2014, the Hon'ble Bombay High Court held that in view of the factual position as per the judgement in the case of CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Born), it would have to be presumed that the investment made 7 I.T.A. No. 191/Mum/2015 Sicom Investment & Finance Ltd. by the assessee would be out of the interest free funds available with the assessee. In the relevant years, the assessee claimed that no disallowance of interest be made u/s. 14A of the I.T. Act, 1961 in view of the fact that t…

Creative Impex, Mumbai vs. Addl CIT RG 18(1), Mumbai

In the result, appeal filed by the assessee for assessment year 2006-

Bench: Shri G.S. Pannu (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2006-07 M/S Creative Impex, The Addl. Commissioner Of C/O Karnavat & Co. Income-Tax, Range – 18(1), 2A Kitab Mahal, 1St Floor, Room No. 138, 1St Floor, 192, Dr. D.N. Road, Vs. Piramal Chambers, Lalbaug, Mumbai - 400001 Mumbai - 400012 Pan: Aaafc1329E (Appellant) (Respondent) Assessee By : Shri Sunil Hirawat (Ar) Revenue By : Shri Saurabh Deshpande (Dr) Date Of Hearing: 06/09/2017 Date Of Pronouncement: 04/12/2017

…eflects that investment of the assessee as on 31st. March 2006 was nil. Hence, there is no justification in making disallowance under Rule 8D(2)(ii) in the light of the decision of the Hon’ble High Court of Bombay rendered in Reliance Utilities and Power Ltd. 313 ITR 340 (Bom). Hence, we delete the addition Rs. 81,085/- made under Rule 8D(2)(ii). However, we sustain the addition of Rs. 28,946/- made under Rule 8D(2)(iii) holding that the disallowance on account of administrative and general expenses upheld by the Ld. CIT(A) is reasonable despite the fact that AO has computed the same as per the method prescribed…

ACIT 11(1), Mumbai vs. Crest Animation Studios Ltd, Mumbai

In the result appeal of the revenue is partly allowed for statistical purposes, while the appeal of the assessee is allowed

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 6278/Mum/2010 (नििाारण वर्ा / Assessment Year : 2006-07)

…nts, wherein we have seen that net owned funds are much higher than combined value of investments as well loans and advances granted by the assessee. The ratio of decision of Hon’ble Bombay High Court in the case of Reliance Utilities and Power Limited (2009) 313 ITR 340(Bom. HC) will apply. The additions as sustained by learned CIT(A) stood deleted and relief granted by learned CIT(A) stood confirmed. We order accordingly. With respect to the second issue for disallowance u/s. 41(1) on account of cessation of liabilities which additions were deleted by learned CIT(A) , we have observed that learned CIT(A) has gr…

Sajjan India Ltd, Mumbai vs. Addl CIT RG 7(2), Mumbai

In the result the appeal of the assessee and revenue for AY 2011-12

Bench: Shri C.N.Prasad & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.5550/Mum/2015 (नििाारण वर्ा / Assessment Year: 2011-12) बिाम/ Sajjan India Limited Addl. Cit, Range 7(2) C/O Shankarlal Jain & Aayakar Bhawan Associates , 12, Engineer M K Road V. Building, 265, Princess Queens Road Street, Mumbai-400020 Mumbai-400020 स्थायी ऱेखा सं./ Pan : Aaacs6498M (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

…आयकर अपीऱीय अधिकरण “K” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI C.N.PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर अपीऱ सं./I.T.A. No.5550/Mum/2015 (नििाारण वर्ा / Assessment Year: 2011-12) बिाम/ Sajjan India Limited Addl. CIT, Range 7(2) C/o Shankarlal Jain & Aayakar Bhawan Associates , 12, Engineer M K Road v. Building, 265, Princess Queens Road Street, Mumbai-400020 Mumbai-400020 स्थायी ऱेखा सं./ PAN : AAACS6498M (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. आयकर अपीऱ सं./I.T.A. No. 5751/Mum/2015 (नििाारण वर्ा / Assessment Year: 2011-12)…