CIT v. Smt. Leena Ramachandran

339 ITR 296High Court2011#2678 most cited

What is CIT v. Smt. Leena Ramachandran authority for?

The assessee is entitled to a deduction of interest under Section 36(1)(iii) on borrowed funds utilized for acquiring shares, provided the shares are held as stock-in-trade as part of a share trading business.

44

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. Smt. Leena Ramachandran · Section 36(1)(iii) · Section 14A · interest deduction · borrowed funds for shares · acquisition of shares · shares as stock-in-trade · share trading business · disallowance of expenditure

Also reported as

10 Taxmann.com 109235 CTR 512

Sections most often in play

Section 14ASection 10(34)Section 115JBSection 234DSection 250Section 36(1)(viii)Section 129Section 2(17)

Issues it is cited on

section 36(1)(iii)disallowance u/s 14asection 36(1)section 14asection 36section 23section 10previous yearcompanysection 14total incomeinterest

Judgments citing CIT v. Smt. Leena Ramachandran

DCIT 7(2), Mumbai vs. Srk Business Venture P.Ltd, Mumbai

ITA 6446/MUM/2013[2009-10]Status: DisposedITAT Mumbai04 Nov 2015AY 2009-10

Bench: Shri N.K.Billaiya, Am & Shri Sanjay Garg, Jm आयकर अपील सं./Ita No.6446/Mum/2013 ("नधा"रण "नधा"रण "नधा"रण वष" "नधा"रण वष" वष" / Assessment Year :2009-10) वष" Dcit-7(2), Mumbai Vs. M/S Srk Business Ventures Pvt. Ltd., Unit- 302, Apple Plaza, 3Rd Floor, Senapati Bapat Marg, Dadar(W), Mumbai-400028 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aakcs 9305 H .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" क" क" ओर क" ओर ओर सेसेसेसे /Revenue By ओर : Shri Premanand J. "नधा"रती क" क" क" ओर क" ओर ओर सेसेसेसे /Assessee By ओर : Shri K. Gopal सुनवाई क" तार"ख / Date Of Hearing : 22/09/2015 घोषणा क" तार"ख/Date Of Pronouncement 04/11/2015 आदेश आदेश / O R D E R आदेश आदेश Per Sanjay Garg: The Revenue Has Filed This Appeal Against The Order Of Commissioner Of Income Tax (Appeals)-13 [Hereinafter Referred To As The Cit(A)] , Mumbai, Dated 22-8-2013, For The Assessment Year 2009-10. 2. The Revenue, In This Appeal, Is Aggrieved By The Action Of The Cit(A) In Restricting The Disallowance U/S.14A R.W.Rule 8D(2)(I) At Rs.69,063/- As Against Disallowance Of Rs.30,57,179/- Made By The Ao. 3. The Facts In Brief Are That During The Relevant Previous Year, The Assessee Received Exempt Income Being Dividend Of Rs.37,942/-. During The Course Of Assessment Proceedings, The Ao Asked The Assessee As To Why The Disallowance Of Interest & Other Expenditure Should Not Be Made U/S.14A. In Response To This, The Assessee Filed His Reply, However

Section 14A

…income. We find that this Tribunal in the case of “DCIT vs. India Advantage Securities Ltd.” in ITA No.6711/M/2011 vide order dated 14.09.2012 while relying upon the decision of the Hon’ble Kerala High Court in the case of “CIT vs. Smt. Leena Ramachandran (339 ITR 296) and further on the decision of the Hon’ble High Court of Karnataka in the case of “CCL Ltd. vs. JCIT” 250 CTR 291 has held that disallowance under section 14A in relation to dividend received from trading shares cannot be made. The said finding of the Tribunal has been upheld by the Hon’ble Jurisdictional Bombay High Court in the case of “CIT…

Asst.C.I.T. 2(1), Mumbai vs. Bank of Baroda, Mumbai

The appeal of the Revenue is treated as allowed in the same lines

ITA 4873/MUM/2012[2008-09]Status: DisposedITAT Mumbai04 Nov 2015AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Sanjay Gargassessment Year: 2008-09 M/S. Bank Of Baroda, Addl. Cit, Range – 2(1), C-26, G-Block, Bandra Kurla Aayakar Bhavan, Queens Road, Complex, Vs. Mumbai - 400020 Bandra (East), Mumbai – 400 051 Pan: Aaacb 1534F (Appellant) (Respondent) Assessment Year: 2008-09 Acit 2(1), M/S. Bank Of Baroda, Aayakar Bhavan, C-26, G-Block, Baroda R.No.561, 5Th Floor, Corporate Centre, Vs. M.K. Road, Bandra Kurla Complex, Mumbai - 400020 Bandra (East), Mumbai – 400 051 Pan: Aaacb 1534F (Appellant) (Respondent)

For Appellant: Shri Jasbir Chouhan, Sr.A.RFor Respondent: Shri C. Naresh, D.R
Section 14ASection 36(1)(viii)Section 91

…. Further, we find that this Tribunal in the case of “DCIT vs. India Advantage Securities Ltd.” in ITA No.6711/M/2011 vide order dated 14.09.2012 while relying upon the decision of the Hon’ble Kerala High Court in the case of “CIT vs. Smt. Leena Ramachandran (339 ITR 296) and further on the decision of the Hon’ble High Court of Karnataka in the case of “CCL Ltd. vs. JCIT” 250 CTR 291 has held that disallowance under section 14A in relation to dividend received from trading shares cannot be made. The said finding of the Tribunal has been upheld by the Hon’ble Jurisdictional Bombay High Court in the case of “CIT vs…

Bank of Baroda, Mumbai vs. Addl CIT RG 2(1), Mumbai

The appeal of the Revenue is treated as allowed in the same lines

ITA 4619/MUM/2012[2008-09]Status: DisposedITAT Mumbai04 Nov 2015AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Sanjay Gargassessment Year: 2008-09 M/S. Bank Of Baroda, Addl. Cit, Range – 2(1), C-26, G-Block, Bandra Kurla Aayakar Bhavan, Queens Road, Complex, Vs. Mumbai - 400020 Bandra (East), Mumbai – 400 051 Pan: Aaacb 1534F (Appellant) (Respondent) Assessment Year: 2008-09 Acit 2(1), M/S. Bank Of Baroda, Aayakar Bhavan, C-26, G-Block, Baroda R.No.561, 5Th Floor, Corporate Centre, Vs. M.K. Road, Bandra Kurla Complex, Mumbai - 400020 Bandra (East), Mumbai – 400 051 Pan: Aaacb 1534F (Appellant) (Respondent)

For Appellant: Shri Jasbir Chouhan, Sr.A.RFor Respondent: Shri C. Naresh, D.R
Section 14ASection 36(1)(viii)Section 91

…. Further, we find that this Tribunal in the case of “DCIT vs. India Advantage Securities Ltd.” in ITA No.6711/M/2011 vide order dated 14.09.2012 while relying upon the decision of the Hon’ble Kerala High Court in the case of “CIT vs. Smt. Leena Ramachandran (339 ITR 296) and further on the decision of the Hon’ble High Court of Karnataka in the case of “CCL Ltd. vs. JCIT” 250 CTR 291 has held that disallowance under section 14A in relation to dividend received from trading shares cannot be made. The said finding of the Tribunal has been upheld by the Hon’ble Jurisdictional Bombay High Court in the case of “CIT vs…

R.R. Chokhan Stocki Brokers P. Ltd, Mumbai vs. ITO 4(2)(3), Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 6826/MUM/2014[2010-11]Status: DisposedITAT Mumbai30 Oct 2015AY 2010-11
For Appellant: Shri I.P.RathiFor Respondent: Shri K. Ravi Kiran
Section 143(3)Section 14A

…l followed the decision of the Special Bench of the Tribunal in the case of ITO vs. Daga Capital Management Pvt. Ltd. (supra). The assessee in that case had relied on the judgment of Hon’ble High Court of Kerala in the case of CIT vs. Smt. Leena Ramachandran (339 ITR 296) to argue that the disallowance could not be made in relation to the dividend received from trading shares. The Tribunal had however, distinguished the said judgment of Hon’ble High Court of Kerala on the ground that in that case the acquisition of shares with 5 the borrowed funds was for the purpose of controlling the company. Therefore, even t…