CIT v. Reliance Utilities & Power Ltd.

Bhupinder Investment Co. P. Ltd, Mumbai vs. DCIT Cir 10(2), Mumbai

In the result the appeal of the assessee is partly allowed

Bench: Shri Mahavir Singh, Jm & Shri Rajesh Kumar, Am आमकय अऩीर सं./I.T.A. No.6326/Mum/2011 (ननधधारण वषा / Assessment Year : 2008-09) M/S Bhupinder Investment बनधम/ Dy. Commissioner Of Income Tax Circle 10(2), Aayakar Bhavan, Co. Pvt.Ltd Vs. M K Road, 27, Kirol Vidyavihar (W), Mumbai-400020 Mumbai-400086 स्थधयी ऱेखध सं./ Pan : Aaacb9117G अपीऱार्थी ओर से/ Assessee By Shri Ketan Panchmia प्रत्यर्थी की ओर से// Revenue By Shrimati Bharti Singh सुनवाई की तायीख / Date Of Hearing : 26.5.2016 घोषणा की तायीख /Date Of Pronouncement : 9.6.2016 आदेश / O R D E R Per Rajesh Kumar, A. M: This Appeal By The Assessee Is Directed Against The Order Dated 18.5.2011 Of Commissioner Of Income Tax (Appeals)-21, Mumbai (Hereinafter Called As The Cit(A) For Assessment Year 2008-09. 2. At The Outset, The Ld. Counsel Of The Assessee Submitted Before Us That Ground No.2 Is Not Pressed, Therefore, The Same Is Dismissed As Not Pressed.

…ds were sufficient to cover the investment and no loan funds were utilized for the purpose of investment in the share and securities . The ld. AR, in defence of his arguments, placed reliance on the decision of CIT V/s RELIANCE UTILITIES AND POWER LTD. [2009] 313 ITR 340 (Bom) and the decision in the case of CIT V/s HDFC BANK LTD. [2014] 366 ITR 505 (Bom). The ld. Counsel, therefore submitted that the addition of Rs.13,99,868/- made by the AO u/s 14A r.w.r.8D(2)(ii) was unwarranted and be deleted in view of the ratio laid down by the Hon’ble Jurisdictional High Court in the above mentioned cases. As regard the di…

Saurashtra Fuels P.Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

In the result, assessee appeal in ITA No 7274/Mum/2012 for assessment year 2009-10 is partly allowed

Bench: Shri Saktijit Dey & Shri Ramit Kochar

…t owned funds of the assessee company and no borrowed funds were utilized by the assessee company for making investment of Rs.7.53 crores, relying on the decision of Hon’ble Bombay High Court in the case of CIT v .Reliance Utilities and Power Limited , (2009) 313 ITR 340(Bom. HC) , CIT v. HDFC Bank Limited in ITA no 330 of 2012 (366 ITR 505(Bom. HC) ) and CIT v. HDFC Bank Limited(WP no. 1753 of 2016)((2016) 67 taxmann.com 42(Bom.HC). The learned counsel also contended that the investments of Rs1.10 crores has been made in foreign subsidiary company whereby dividend income is taxable under the provisions of the Ac…

Crescent Organics P.Ltd, Mumbai vs. Asst CIT 10(1), Mumbai

Bench: S/Shjoginder Singh & Rajendraआयकर आयकर अपील अपील संसंसंसं./I.T.A./6428/Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2010-11 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Crescent Organics Pvt. Ltd. Dcit-10(1) Windsor, 2Nd Floor, Cst Road Mumbai. Kalina, Santacruz (E) Vs. Mumbai-400 098. Pan:Aaacc 1690 D (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Dr. Darsi Suman Ratham-Dr Assessee By: Shri Piyush Chhajed-Ar’S सुनवाई क" तारीख / Date Of Hearing: 30.05.2016 घोषणा क" तारीख / Date Of Pronouncement: 30.05.2016 आयकर आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग" अ"तग"त आदेश आदेश आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग" अ"तग" आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा लेखा सद"य लेखा लेखा सद"य सद"य राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार Per Rajendra, Am- अनुसार Challenging The Order Dt.8.7.2014 Of Cit(A)-21,Mumbai, The Assessee Has Filed The Present Appeal.Assessee-Company, Engaged In The Business Of Trading & Indenting Of Chemicals, Filed Its Return Of Income 27.09.2010, Declaring Total Income At Rs.17.37 Crores. A Revised Return Was Filed On 10.8.2011 Wherein The Income Was Revised At Rs.17.45 Crores .The Assessing Officer (Ao) Completed The Assessment U/S.143(3) Of The Act,Determining The Total Income Of The Assessee At Rs.17.62 Crores.

…d that the share capital and reserve of the assessee was Rs. 26.75 corrodes as on 31/03/2011, investment of Rs. 10.68 corrodes was made in shares, that it invested Rs. 7.35 corrodes in foreign shares.Following the judgement of Reliance Utility and Power Ltd. (313 ITR 340)he held that if the results and surplus along with the own funds were more than the investment it had to be assumed that the assessee had invested from his own funds. He disallowed the interest portion of the 14A disallowance.However, he directed the AO to compute administrative and managerial expenses at 0.5% of the average investments by deduct…

Bayer Crop Science Ltd, Mumbai vs. Addl CIT 10(3), Mumbai

Bench: S/Sh.Rajendra & C.N. Prasadआयकर अपील सं./Ita/7978/Mum/2010,िनधा"रण वष"/Ay.2006-07 M/S. Bayer Cropscience Limited Acit -10(3) Aayakar Bhavan, 4Th Floor, M.K. Road Bayer House, Central Avenue, Hiranandani Gardens, Powai Vs. Mumbai-400 020. Mumbai-400 076. Pan:Aaacb 9651 K (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By:Shri G.M. Doss Assessee By: S/Shri Paras Savla; Harsh Shah & Viraj Mehta सुनवाई की तारीख / Date Of Hearing: 18.04.2016 घोषणा की तारीख / Date Of Pronouncement: 25.05.2016 आयकर अिधिनयम,1961 की धारा 254(1)के अ"ग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद" राजे" के अनुसार Per Rajendra, Am- Challenging The Order Dated 14/10/2010 Of The Assessing Officer (Ao),Passed U/S.143(3)R.W. S.144C(13)Of The Act, The Assessee Has Filed The Present Appeal. Assessee-Company,Engaged In The Business Of Manufacturing Of Insecticides & Other Chemicals For Plant Protection,Filed Its Return Of Income On 30/11/2006, Declaring Income Of Rs. 51.18 Crores.During The Assessment Proceedings,The Ao Found That Assessee Had Entered Into International Transactions (It.S) With Its Associated Enterprises(Aes).So,He Made A Reference To The Transfer Pricing Officer (Tpo)To Determine The Arm’S Length Price(Alp) Of Such Transactions. After Receiving The Order Of The Tpo,The Ao Sent The Draft Assessment Order To The Assessee, Who Challenged It Before The Dispute Resolution Panel (Drp).The Drp Issue Directions To The Ao Wide Its Order Dated 28/09/2010.In Pursuance Of The Said Directions, The Ao Completed The Assessment, Determining The Income Of The Assessee Had Rs. 59.89 Crores. 2.First Ground Of Appeal Relates To Transfer Pricing (Tp)Adjustments Of Rs. 2.80 Crores.During The Tp Proceedings,The Tpo Found That The Assessee Had Entered Into The Following It.S With Its Aes:

…that the AO had neither controverted not recorded any objective satisfaction with regard to expla -nation offered by the assessee. He relied upon the cases of HDFC Bank Ltd. (ITA.330 of 2012 of the Hon’ble Bombay High Court),Reliance Utilities and Power Ltd.(313 ITR 340),JM financial Ltd (ITA/4521/Mum/2012) Piem Hotels Ltd.(ITA/240/Mum/2012 and Bayer Bioscience(P)Ltd. (51 SOT 16).The DR stated that matter could be decided on merits. 4.2.We have heard the rival submissions and perused the material before us. We find that during the year under consideration the assessee had received dividend income of Rs. 37.51 l…

Tml Drivelines Ltd ( Earlier Known As H V Axles Ltd), Mumbai vs. DCIT 2(1), Mumbai

Appeal is allowed

Bench: S/Shri B.R.Baskaran & Amarjit Singhआयकर अपील सं/ I.T.A. No.6199/M/2011 & I.T.A. No. 8469/M/2011 ("नधा"रण वष" / Assessment Year: 2007-08 & 2008-09) Tml Drivelines Limited Dy. Commissioner Of बनाम/ (Earlier Known As Hv Axles Income Tax 2(1) Vs. Limited), 3Rd Floor, Aayakar Bhavan, Nanavati Mahalaya, 18, M.K.Marg, Homi Mody Street, Mumbai - 400020 Hutatma Chowk, Mumbai - 400001 आयकर अपील सं/ I.T.A. No. 8324/M/2011 ("नधा"रण वष" / Assessment Year: 2008-09) Dy. Commissioner Of Income बनाम/ Tml Drivelines Limited Tax 2(1) (Earlier Known As Hv Axles Vs. Aayakar Bhavan, Limited) M.K.Marg, 3Rd Floor, Mumbai - 400020 Nanavati Mahalaya, 18, Homi Mody Street, Hutatma Chowk, Mumbai - 400001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaach7625P

…the expenditure to earn the exempt income whereas it seems to be utilized on his own fund to earn the exempt income therefore the expenditure is not liable to be disallowed in provision in section 14A of the Act. Reliance placed upon the law settled in [2009] 313 ITR 340 (Bom) in the case of Bombay Commissioner of Income Tax Vs. Reliance Utilities and Power Ltd. However, on the other hand learned representative of the department has refuted the said contentions. On appraisal of the order in question it came into the notice that for the A.Y.2007-08 the assessee has claimed exemption of dividend income to the tune…

D.C.I.T. 2(1), Mumbai vs. H.V. Axles Ltd., Mumbai

Appeal is allowed

Bench: S/Shri B.R.Baskaran & Amarjit Singhआयकर अपील सं/ I.T.A. No.6199/M/2011 & I.T.A. No. 8469/M/2011 ("नधा"रण वष" / Assessment Year: 2007-08 & 2008-09) Tml Drivelines Limited Dy. Commissioner Of बनाम/ (Earlier Known As Hv Axles Income Tax 2(1) Vs. Limited), 3Rd Floor, Aayakar Bhavan, Nanavati Mahalaya, 18, M.K.Marg, Homi Mody Street, Mumbai - 400020 Hutatma Chowk, Mumbai - 400001 आयकर अपील सं/ I.T.A. No. 8324/M/2011 ("नधा"रण वष" / Assessment Year: 2008-09) Dy. Commissioner Of Income बनाम/ Tml Drivelines Limited Tax 2(1) (Earlier Known As Hv Axles Vs. Aayakar Bhavan, Limited) M.K.Marg, 3Rd Floor, Mumbai - 400020 Nanavati Mahalaya, 18, Homi Mody Street, Hutatma Chowk, Mumbai - 400001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaach7625P

…the expenditure to earn the exempt income whereas it seems to be utilized on his own fund to earn the exempt income therefore the expenditure is not liable to be disallowed in provision in section 14A of the Act. Reliance placed upon the law settled in [2009] 313 ITR 340 (Bom) in the case of Bombay Commissioner of Income Tax Vs. Reliance Utilities and Power Ltd. However, on the other hand learned representative of the department has refuted the said contentions. On appraisal of the order in question it came into the notice that for the A.Y.2007-08 the assessee has claimed exemption of dividend income to the tune…

Tml Drivelines Ltd (Earlier Known As H V Axles Ltd), Mumbai vs. DCIT 2(1), Mumbai

Appeal is allowed

Bench: S/Shri B.R.Baskaran & Amarjit Singhआयकर अपील सं/ I.T.A. No.6199/M/2011 & I.T.A. No. 8469/M/2011 ("नधा"रण वष" / Assessment Year: 2007-08 & 2008-09) Tml Drivelines Limited Dy. Commissioner Of बनाम/ (Earlier Known As Hv Axles Income Tax 2(1) Vs. Limited), 3Rd Floor, Aayakar Bhavan, Nanavati Mahalaya, 18, M.K.Marg, Homi Mody Street, Mumbai - 400020 Hutatma Chowk, Mumbai - 400001 आयकर अपील सं/ I.T.A. No. 8324/M/2011 ("नधा"रण वष" / Assessment Year: 2008-09) Dy. Commissioner Of Income बनाम/ Tml Drivelines Limited Tax 2(1) (Earlier Known As Hv Axles Vs. Aayakar Bhavan, Limited) M.K.Marg, 3Rd Floor, Mumbai - 400020 Nanavati Mahalaya, 18, Homi Mody Street, Hutatma Chowk, Mumbai - 400001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaach7625P

…the expenditure to earn the exempt income whereas it seems to be utilized on his own fund to earn the exempt income therefore the expenditure is not liable to be disallowed in provision in section 14A of the Act. Reliance placed upon the law settled in [2009] 313 ITR 340 (Bom) in the case of Bombay Commissioner of Income Tax Vs. Reliance Utilities and Power Ltd. However, on the other hand learned representative of the department has refuted the said contentions. On appraisal of the order in question it came into the notice that for the A.Y.2007-08 the assessee has claimed exemption of dividend income to the tune…

Ruchi Acroni Industries Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, assessee’s appeal is allowed for statistical purposes

Bench: Shri Saktijit Dey & Shri Rajesh Kumar

…ake care of the investment. That being the case, no disallowance of interest expenditure can be made. On such proposition he relied upon the decision of the Hon'ble Jurisdictional High Court in the following cases. i) CIT v/s Reliance Utilities & Power Ltd., 313 ITR 340 (Bom.); ii) CIT v/s HDFC Bank Ltd. [2014] 366 ITR 505 (Bom.). 6. As far as disallowance of administrative expenditure is concerned, the learned Authorised Representative submitted, assessee having not incurred any expenditure towards earning of exempt income, no disallowance can be made even on the average value of investment. He submitted, prov…

Ruchi Global Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, assessee’s appeal is allowed for statistical purposes

Bench: Shri Saktijit Dey & Shri Rajesh Kumar

…ke carte of the investment. That being the case, no disallowance of interest expenditure can be made. On such proposition he relied upon the decision of the Hon'ble Jurisdictional High Court in the following cases. i) CIT v/s Reliance Utilities & Power Ltd., 313 ITR 340 (Bom.); & ii) CIT v/s HDFC Bank Ltd. [2014] 366 ITR 505 (Bom.). 5. As far as disallowance of administrative expenditure is concerned, the learned Authorised Representative submitted, assessee having not incurred any expenditure towards earning of exempt income, no disallowance can be made even on the average value of investment. He submitted, pr…