CIT v. Reliance Utilities & Power Ltd.

DCIT 1(1), Mumbai vs. Forbes & Company Ltd, Mumbai

In the result, the appeal of Assessee in ITA No

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…peals) has also observed, advances have been made out of common funds available with the assessee which includes both self–generated funds and borrowed funds. As held by the Hon'ble Jurisdictional High Court in CIT v/s Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom), when mixed funds are available with the assessee, the presumption would be, the interest free advances have been made out of the interest free funds available with the assessee. Therefore, applying the ratio of the Hon'ble Jurisdictional High Court (supra), no notional disallowance / adding back of interest attributable to interest free ad…

Forbes and Company Ltd ( Formerly Known As Forbes Gokak Ltd), Mumbai vs. Asst CIT 1(1), Mumbai

In the result, the appeal of Assessee in ITA No

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…peals) has also observed, advances have been made out of common funds available with the assessee which includes both self–generated funds and borrowed funds. As held by the Hon'ble Jurisdictional High Court in CIT v/s Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom), when mixed funds are available with the assessee, the presumption would be, the interest free advances have been made out of the interest free funds available with the assessee. Therefore, applying the ratio of the Hon'ble Jurisdictional High Court (supra), no notional disallowance / adding back of interest attributable to interest free ad…

Forbes and Company Ltd ( Formerly Known As Forbes Gokak Ltd), Mumbai vs. DCIT 1(1), Mumbai

In the result, the appeal of Assessee in ITA No

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…peals) has also observed, advances have been made out of common funds available with the assessee which includes both self–generated funds and borrowed funds. As held by the Hon'ble Jurisdictional High Court in CIT v/s Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom), when mixed funds are available with the assessee, the presumption would be, the interest free advances have been made out of the interest free funds available with the assessee. Therefore, applying the ratio of the Hon'ble Jurisdictional High Court (supra), no notional disallowance / adding back of interest attributable to interest free ad…

ACIT 1(1), Mumbai vs. Forbes & Co.Ltd, Mumbai

In the result, the appeal of Assessee in ITA No

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

…peals) has also observed, advances have been made out of common funds available with the assessee which includes both self–generated funds and borrowed funds. As held by the Hon'ble Jurisdictional High Court in CIT v/s Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom), when mixed funds are available with the assessee, the presumption would be, the interest free advances have been made out of the interest free funds available with the assessee. Therefore, applying the ratio of the Hon'ble Jurisdictional High Court (supra), no notional disallowance / adding back of interest attributable to interest free ad…

Strides Arcolab Ltd, Navi Mumbai vs. ACIT 10(3), Mumbai

Bench: Shri G.S. Pannu, Am & Shri Ravish Sood, Jm आयकर अपील सं./I.T.A. No. 8540/Mum/2010 (निर्धारण वर्ा / Assessment Year: 2006-07) Strides Shasun Limited The Asst. Commissioner Of [Formerly Known As Strides Income Tax Circle-10(3) Acrolab Limited], Mumbai बिधम/ 201 Devarata, Vs. Sector 17, Vashi, Navi Mumbai – 400 703. स्थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadcs8104P (Appellant) : ( Respondent)

…2, and therein observed that as the assessee was having substantial interest free funds by way of share capital of the company, therefore relying on the judgment of the Hon’ble High Court of Bombay in the case of CIT Vs. Reliance utility and Power Ltd. (2009) 313 ITR 340 (Bom), had held that no disallowance in respect of interest expenditure was called for in the hands of the assessee, by observing as under:- P a g e | 7 “Coming to the investments in the shares of Dena Bank in financial year 1996-1997 it is observed that the share capital of the company far exceeds the amount of investment in shares as at the…

Safe Clearing & Forwarding P. Ltd, Mumbai vs. ITO 7(2)(2), Mumbai

In the result, the appeal filed by the assessee is hereby ordered to be Allowed partly

Bench: Shri Rajendra, Am & Shri Amarjit Singh, Jm

…g the reserve and surplus fund to the tune of Rs.64,40,000/- and the investment to the tune of Rs.61,15,864/- which is less than the reserve and surplus fund. In view of the law settled in Hon’ble Bombay High Court in case titled as CIT Vs. Reliance Utilities 313 ITR 340, in which it is specifically held that whereas an assessee has his own fund as well as borrowed funds, a presumption can be made that the advances for non-business purposes have been made out of the own funds and that the borrowed funds have not been used for this purpose. In view of the law settled in HDFC Bank Vs. DCIT 366 ITR 505 (Bombay), it…

Mohd Salim Halim Shaikh, Mumbai vs. DCIT 22(1), Mumbai

In the result, the appeal filed by the assessee is hereby ordered

Bench: Shri Rajendra, Am & Shri Amarjit Singh, Jm

…eviable when the assessment was finalized on the basis of estimation. Moreover, rejection of the claim by the authority nowhere attract the penalty in view of the law settled by Bombay High Court in the case of CIT Vs. Reliance Utilities and Power Ltd. (2009) 313 ITR 340. In view of the above said facts and circumstances and law mentioned above, we are of the view that the penalty is not liable to be sustainable in the eyes of law. Accordingly, we delete the penalty and decided this issue in favour of the assessee against the revenue. In the result, the appeal filed by the assessee is hereby ordered 7. to be All…

Mafatlal Fabrics P. Ltd, Mumbai vs. Asst CIT 1(2), Mumbai

In the result, the appeal filed by the assessee is hereby ordered to be partly allowed

Bench: Shri Rajendra, Am & Shri Amarjit Singh, Jm

…Therefore, in the said circumstances no disallowance is required u/s.14A r.w.Rule 8D of the Act in view of the law settled in Hon’ble Bombay High Court in case titled as HDFC Bank Vs. DCIT 366 ITR 505 (Bombay) and in case titled as CIT Vs. Reliance Utilities 313 ITR 340. However, on the other hand the learned departmental representative has strongly relied upon the order passed by the CIT(A) in question. By giving the careful thoughts to the arguments advanced by Ld representative of the parties and by going through the relevant record carefully specifically balance sheet filed by the assessee lies at page 12 to…

Remi Process Plant and Machinery Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

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

Bench: Shri D.T. Garasia & Shri Rajesh Kumar: (A.Y : 2011-12) Dcit, Circle – 3(3)(1) Vs. M/S. Remi Process Plant & Mumbai (Appellant) Machinery Ltd. 11 Cama Industrial Estate Walbhat Road, Goregaon (E) Mumbai 400 009 Pan : Aaacr0409H (Respondent) : M/S. Remi Process Plant & Vs. Dcit, Circle – 3(3)(1) Machinery Ltd. Mumbai 11 Cama Industrial Estate Walbhat Road, Goregaon (E) Mumbai 400 009 Pan : Aaacr0409H (Respondent) Appellant By : Shri Purushottam Kumar Respondent By : Shri Bhagirath Singh Date Of Hearing : 28/02/2017 Date Of Pronouncement : 21/03/2017

…Machinery Ltd. investments. The assessee contended that interest income of Rs. 18,50,216/- and interest expense is Rs. 7,59,817/-, therefore, net interest income of Rs. 10,90,399/-. The A.O. relied upon the decision of CIT vs Reliance Utilities and Power Ltd. 313 ITR 340 (Bom). The learned DR relied upon the order of the revenue authorities. 5. We have heard the rival contention of both the parties. The assessee company had share capital and reserves of Rs. 10.31 crores as against investment of Rs. 20,00,000/- at the year end. The CIT(A) has held that if the assessee’s capital, reserves, surplus and current acco…

DCIT Cir 3(3)(1), Mumbai vs. Remi Process Plant & Machinery Ltd, Mumbai

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

Bench: Shri D.T. Garasia & Shri Rajesh Kumar: (A.Y : 2011-12) Dcit, Circle – 3(3)(1) Vs. M/S. Remi Process Plant & Mumbai (Appellant) Machinery Ltd. 11 Cama Industrial Estate Walbhat Road, Goregaon (E) Mumbai 400 009 Pan : Aaacr0409H (Respondent) : M/S. Remi Process Plant & Vs. Dcit, Circle – 3(3)(1) Machinery Ltd. Mumbai 11 Cama Industrial Estate Walbhat Road, Goregaon (E) Mumbai 400 009 Pan : Aaacr0409H (Respondent) Appellant By : Shri Purushottam Kumar Respondent By : Shri Bhagirath Singh Date Of Hearing : 28/02/2017 Date Of Pronouncement : 21/03/2017

…Machinery Ltd. investments. The assessee contended that interest income of Rs. 18,50,216/- and interest expense is Rs. 7,59,817/-, therefore, net interest income of Rs. 10,90,399/-. The A.O. relied upon the decision of CIT vs Reliance Utilities and Power Ltd. 313 ITR 340 (Bom). The learned DR relied upon the order of the revenue authorities. 5. We have heard the rival contention of both the parties. The assessee company had share capital and reserves of Rs. 10.31 crores as against investment of Rs. 20,00,000/- at the year end. The CIT(A) has held that if the assessee’s capital, reserves, surplus and current acco…

Hi-Tech Engineers, Mumbai vs. ITO 25(3)(2), Mumbai

In the result, appeal filed by the assessee in ITA No

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.3349/Mum/2016 ("नधा"रण वष" / Assessment Year : 2010-11) M/S Hi-Tech Engineers, Income Tax Officer बनाम/ 26, Jansukh Niwas, 25(3)(2), V. Kasturba Road, Mumbai. Kandivali (West), Mumbai – 400 067. "थायी लेखा सं./Pan : Aaafh3990C (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

…-2016 passed by learned CIT(A). With respect to the disallowance of Rs. 24,410/- made u/s 14A of 1961 Act read with Rule 8D of 1962 Rules, the assessee relied upon decision of Hon’ble Bombay High Court in the case of Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom.) and also decision of Mumbai-tribunal in the case of Reliance Industries Limited v. Addl. CIT in ITA no 3082/Mum/2006 and 3420/Mum/2006 , vide orders dated 28-05-2012 (reported in 2012(5) TMI 504 –ITAT Mumbai) , which contentions was rejected by the ld. CIT(A) who confirmed the additions made by the A.O. to the tune of Rs. 24,410/- towards…

Angular Trading P.Ltd, Mumbai vs. DCIT 3(1), Mumbai

The appeal of the assessee is allowed

Bench: S/Shri Rajendra, A.M. & Sanjay Garg,J.M. आयकर अपील सं आयकर अपील सं././././Ita No.5091/Mum/2012,िनधा"रण व आयकर अपील सं आयकर अपील सं िनधा"रण व िनधा"रण वष"ष"ष"ष" /Assessment Year: 2008-09 िनधा"रण व M/S. Angular Trading P.Ltd. Dcit-3(1) 111, Maker Bhavan, No.3,21, New Mumbai. Vs. Marine Lines,Mumbai-400 020. Pan: Aacca 8291 Q (अपीलाथ" /Appellant) (""यथ" / Respondent) आयकर अपील सं आयकर अपील सं././././Ita No.5191/Mum/2012,िनधा"रण वष" आयकर अपील सं आयकर अपील सं िनधा"रण वष" िनधा"रण वष" /Assessment Year: 2008-09 िनधा"रण वष" Dcit-3(1) M/S. Angular Trading P.Ltd. Vs. Mumbai. Mumbai-20. (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri Rajesh Kumar Yadav Assessee By: Shri Anuj Kisnadwala सुनवाई क" तारीख / Date Of Hearing: 24.01.2017 घोषणा क" तारीख / Date Of Pronouncement: 17.03.2017 आयकर अिधिनयम आयकर अिधिनयम,1961 क" क" धारा धारा 254(1)के अ"तग"त आदेश के अ"तग"त आदेश आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा के अ"तग"त आदेश के अ"तग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य लेखा सद"य,राजे"" के लेखा सद"य लेखा सद"य राजे"" के राजे"" के अनुसार राजे"" के अनुसार अनुसार -Per Rajendra,Am: अनुसार Challenging The Orders,Dated Of The Cit(A)-Ii,Mumbai The Assessing Officer (Ao)And The Assessee Have Filed Cross-Appeals For The Above-Mentioned Assessment Year(Ay.) Assessee- Company,Engaged In The Business Of Trading & Investment In Shares & Ipo Funding,Filed Its Return On 28.09.2008,Declaring Income Of Rs.4.58 Crores.The Ao Completed The Assessment On 30/12/2010 Under Section 143 (3) Of The Act, Determining Its Income At Rs.6.71 Crores.

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण “ए” ” ” ” "यायपीठ मुंबई म"। आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण "यायपीठ मुंबई म"। "यायपीठ मुंबई म"। "यायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI सव"ी राजे"", लेखा सद"य एवं संजय गग" ,"याियक सद"य Before S/Shri Rajendra, A.M. and Sanjay Garg,J.M. आयकर अपील सं आयकर अपील सं././././ITA No.5091/Mum/2012,िनधा"रण व आयकर अपील सं आयकर अपील सं िनधा"रण व िनधा"रण वष"ष"ष"ष" /Assessment Year: 2008-09 िनधा"रण व M/s. Angular Trading P.Ltd. DCIT-3(1) 111, Maker Bhavan, No.3,21, New Mumbai. Vs. Marine Lines,Mumbai-400 020. PAN: AACCA 8291 Q (अपीलाथ" /Appellant) (""…