CIT v. Sociedade De Fomento Industrial (P) Ltd.

429 ITR 358High Court2020#2723 most cited

What is CIT v. Sociedade De Fomento Industrial (P) Ltd. authority for?

Before disallowing expenditure under Section 14A by applying Rule 8D, the Assessing Officer must first record dissatisfaction with the assessee's claim, provide cogent reasons, and establish a proximate relationship between the expenditure and tax-exempt income, with the onus to demonstrate this link falling on the Revenue.

43

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2021 to 2025.

Also referred to as

CIT v. Sociedade De Fomento Industrial (P) Ltd. · Section 14A disallowance · Rule 8D application · expenditure relating to exempt income · AO's obligation · recording dissatisfaction · proximate relationship · onus on Revenue · clear finding accounts · straightaway apply Rule 8D

Sections most often in play

Section 143(2)Section 143(3)Section 144BSection 14ASection 234C

Issues it is cited on

recognised provident fundsection 50bsection 43b(f)approved gratuity fundsection 40a(9)section 211wholly and exclusively for businesssection 35dslump salesection 32(1)(ii)domestic companyfull value of consideration

Judgments citing CIT v. Sociedade De Fomento Industrial (P) Ltd.

Bachhraj & Company Pvt Ltd., Mumbai vs. Asst CIT Circle- 3 (1)(1), Mumbai

Accordingly, the appeal filed by the assessee is allowed on the same terms

ITA 7349/MUM/2019[2015-16]Status: DisposedITAT Mumbai08 Oct 2021AY 2015-16

Bench: Shri Pramod Kumar () & Shri Ravish Sood () Ita Nos.7348 & 7349/Mum/2019 (Assessment Years: 2014-15 & 2015-16) Bachhraj & Company The Assistant Commissioner Private Limited, 2Nd Floor, Vs. Of Income-Tax, Circle 3(1)(1), Bajaj Bhawan, Room No. 607, Aayakar 226, Nariman Point, Bhavan, M.K. Road, Mumbai – 400 021 Mumbai – 400 020 Pan No. Aaacb5589N (Assessee) (Revenue) Assessee By : Shri Kirit Kamdar, A.R Revenue By : Shri Kprr Murty, D.R Date Of Hearing : 04/10/2021 Date Of Pronouncement : 08/10/2021

For Appellant: Shri Kirit Kamdar, A.RFor Respondent: Shri KPRR Murty, D.R
Section 143(3)Section 14A

…ecourse to the mechanism provided in Rule 8D of Income Tax Rules, 1962 for computing the disallowance u/s 14A of the Act, we find that the Hon’ble High Court of Bombay in its recent order in the case of CIT Vs. Sociedade De Fomento Industrial Pvt. Ltd. (2020) 429 ITR 358 (Bom), had observed, that the A.O must give a clear finding with reference to the assessee‘s accounts as to how the other expenditure claimed by it in respect of its non-exempt income is related to its exempt income. It was observed by the Hon‘ble High Court that the onus was on the revenue to establish that there is a proximate relationship betw…

Bachhraj & Company Pvt Ltd., Mumbai vs. Asst CIT Circle- 3 (1)(1), Mumbai

Accordingly, the appeal filed by the assessee is allowed on the same terms

ITA 7348/MUM/2019[2014-15]Status: DisposedITAT Mumbai08 Oct 2021AY 2014-15

Bench: Shri Pramod Kumar () & Shri Ravish Sood () Ita Nos.7348 & 7349/Mum/2019 (Assessment Years: 2014-15 & 2015-16) Bachhraj & Company The Assistant Commissioner Private Limited, 2Nd Floor, Vs. Of Income-Tax, Circle 3(1)(1), Bajaj Bhawan, Room No. 607, Aayakar 226, Nariman Point, Bhavan, M.K. Road, Mumbai – 400 021 Mumbai – 400 020 Pan No. Aaacb5589N (Assessee) (Revenue) Assessee By : Shri Kirit Kamdar, A.R Revenue By : Shri Kprr Murty, D.R Date Of Hearing : 04/10/2021 Date Of Pronouncement : 08/10/2021

For Appellant: Shri Kirit Kamdar, A.RFor Respondent: Shri KPRR Murty, D.R
Section 143(3)Section 14A

…ecourse to the mechanism provided in Rule 8D of Income Tax Rules, 1962 for computing the disallowance u/s 14A of the Act, we find that the Hon’ble High Court of Bombay in its recent order in the case of CIT Vs. Sociedade De Fomento Industrial Pvt. Ltd. (2020) 429 ITR 358 (Bom), had observed, that the A.O must give a clear finding with reference to the assessee‘s accounts as to how the other expenditure claimed by it in respect of its non-exempt income is related to its exempt income. It was observed by the Hon‘ble High Court that the onus was on the revenue to establish that there is a proximate relationship betw…

Sainath Trading Company Private Limited, Mumbai vs. ACIT - 8(1)(2), Mumbai

ITA 3795/MUM/2019[2015-16]Status: DisposedITAT Mumbai26 Jul 2021AY 2015-16

Bench: Shri Rajesh Kumar () & Shri Ravish Sood () Sainath Trading Company Pvt. Acit -8(1)(2) Ltd. , 509-510, Navratan Vs. Mumbai Premises Co-Op Soc. Ltd. 69 Pd Mello Road, Carnac Bunder, Mumbai – 400 009

For Appellant: Shri Dr. K. Shivaram, Senior AdvocateFor Respondent: Shri T.S. Khalsa, D.R
Section 143(1)Section 143(2)Section 143(3)Section 14A

…e and the exempt income before working out the disallowance u/s 14A. In support of his aforesaid contention the ld. A.R had relied on the judgment of the Hon‟ble High Court of Bombay in the case CIT Vs. Sociedade De Fomento Industrial Pvt. Ltd. (No. 2) (2020) 429 ITR 358 (Bom) and the order of the ITAT, Mumbai, in the case of JCIT Vs. M.s Rare Enterprises (2021) 187 ITD 65 (Mum). It was submitted by the ld. A.R that as the disallowance made by the A.O was not only exorbitant but also arbitrary, therefore, the same was liable to be vacated on the said count too. ITA No.3795/Mum/2019 A.Y. 2015-16 5 Sainath Trading…