CIT v. Srishti Securities (P) Ltd.

321 ITR 498High Court2010#3423 most cited

What is CIT v. Srishti Securities (P) Ltd. authority for?

Interest paid on capital borrowed for business purposes, including the acquisition of shares to gain controlling interest in another company, is allowable as a deduction under Section 36(1)(iii) of the Income-tax Act, 1961.

35

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Srishti Securities (P) Ltd. · section 36(1)(iii) · interest expenditure · business purpose · commercial expediency · acquisition of shares · controlling interest · borrowed capital

Also reported as

183 Taxmann 159

Sections most often in play

Section 36(1)(iii)Section 143(3)Section 142(1)Section 144C(13)Section 144C(5)Section 147Section 148Section 151
Read the full judgment

Issues it is cited on

section 36(1)(iii)disallowance of interest expenditurecommercial expediencysection 36(1)appeal before cit(a)capital expendituresection 36share application moneyrevenue expendituresection 115jbsection 28section 144c

Judgments citing CIT v. Srishti Securities (P) Ltd.

ITO 2(1)(1), Mumbai vs. Archway Investments Co. P. Ltd, Mumbai

The appeal of the assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 7215/MUM/2012[2007-08]Status: DisposedITAT Mumbai10 Feb 2017AY 2007-08

Bench: Shri Rajendra & Shri Sanjay Gargआयकर अपील सं././././Ita Nos.8461/M/2010 & 5598/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Years: 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Archway Investment Ito-2(1)(1), Company Limited, Mumbai Neville House, बनाम/Vs. J.N. Heredia Marg, बनाम बनाम बनाम Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'यथ% &'यथ%/Respondent) अपीलाथ% अपीलाथ% &'यथ% &'यथ% आयकर अपील सं././././Ita Nos.948/M/2011, 7215/M/2012 & 6013/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Year: 2007-08, 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Ito-2(1)(1), Archway Investment Co. Aayakar Bhavan, Ltd., R.No.561, 5Th Floor, Neville House, बनाम/Vs. M.K. Road, J.N. Heredia Marg, बनाम बनाम बनाम Mumbai-400 020 Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'य थ%/Respondent) अपीलाथ% अपीलाथ% &'य &'यथ% &'य थ% थ% Present For: Assessee By : Shri Yogesh Thar, A.R. Revenue By : Shri Rajesh Kumar Yadav, D.R.

For Appellant: Shri Yogesh Thar, A.RFor Respondent: Shri Rajesh Kumar Yadav, D.R
Section 14A

…आयकर अपीलीय अिधकरण, , , , मुंबई "यायपीठ आयकर अपीलीय अिधकरण मुंबई "यायपीठ ‘ए’ मुंबई । मुंबई । आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई "यायपीठ मुंबई "यायपीठ मुंबई । मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “A”, MUMBAI सव" "ी सव" "ी राजे"" राजे"", , , , लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग", "याियक सद"य के "याियक सद"य के सम" । सम" । सव" सव" "ी "ी राजे"" राजे"" लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग" "याियक सद"य के "याियक सद"य के सम" । सम" । BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER आयकर अपील सं././././ITA Nos.8461/M/2010 & 5598/M/20…

ITO 2(1)(1), Mumbai vs. Archway Investment Co. Ltd, Mumbai

The appeal of the assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 948/MUM/2011[2007-08]Status: DisposedITAT Mumbai10 Feb 2017AY 2007-08

Bench: Shri Rajendra & Shri Sanjay Gargआयकर अपील सं././././Ita Nos.8461/M/2010 & 5598/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Years: 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Archway Investment Ito-2(1)(1), Company Limited, Mumbai Neville House, बनाम/Vs. J.N. Heredia Marg, बनाम बनाम बनाम Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'यथ% &'यथ%/Respondent) अपीलाथ% अपीलाथ% &'यथ% &'यथ% आयकर अपील सं././././Ita Nos.948/M/2011, 7215/M/2012 & 6013/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Year: 2007-08, 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Ito-2(1)(1), Archway Investment Co. Aayakar Bhavan, Ltd., R.No.561, 5Th Floor, Neville House, बनाम/Vs. M.K. Road, J.N. Heredia Marg, बनाम बनाम बनाम Mumbai-400 020 Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'य थ%/Respondent) अपीलाथ% अपीलाथ% &'य &'यथ% &'य थ% थ% Present For: Assessee By : Shri Yogesh Thar, A.R. Revenue By : Shri Rajesh Kumar Yadav, D.R.

For Appellant: Shri Yogesh Thar, A.RFor Respondent: Shri Rajesh Kumar Yadav, D.R
Section 14A

…आयकर अपीलीय अिधकरण, , , , मुंबई "यायपीठ आयकर अपीलीय अिधकरण मुंबई "यायपीठ ‘ए’ मुंबई । मुंबई । आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई "यायपीठ मुंबई "यायपीठ मुंबई । मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “A”, MUMBAI सव" "ी सव" "ी राजे"" राजे"", , , , लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग", "याियक सद"य के "याियक सद"य के सम" । सम" । सव" सव" "ी "ी राजे"" राजे"" लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग" "याियक सद"य के "याियक सद"य के सम" । सम" । BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER आयकर अपील सं././././ITA Nos.8461/M/2010 & 5598/M/20…

ITO 2(1)(1), Mumbai vs. Archway Investment Co. Ltd, Mumbai

The appeal of the assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 6013/MUM/2011[2008-09]Status: DisposedITAT Mumbai10 Feb 2017AY 2008-09

Bench: Shri Rajendra & Shri Sanjay Gargआयकर अपील सं././././Ita Nos.8461/M/2010 & 5598/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Years: 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Archway Investment Ito-2(1)(1), Company Limited, Mumbai Neville House, बनाम/Vs. J.N. Heredia Marg, बनाम बनाम बनाम Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'यथ% &'यथ%/Respondent) अपीलाथ% अपीलाथ% &'यथ% &'यथ% आयकर अपील सं././././Ita Nos.948/M/2011, 7215/M/2012 & 6013/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Year: 2007-08, 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Ito-2(1)(1), Archway Investment Co. Aayakar Bhavan, Ltd., R.No.561, 5Th Floor, Neville House, बनाम/Vs. M.K. Road, J.N. Heredia Marg, बनाम बनाम बनाम Mumbai-400 020 Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'य थ%/Respondent) अपीलाथ% अपीलाथ% &'य &'यथ% &'य थ% थ% Present For: Assessee By : Shri Yogesh Thar, A.R. Revenue By : Shri Rajesh Kumar Yadav, D.R.

For Appellant: Shri Yogesh Thar, A.RFor Respondent: Shri Rajesh Kumar Yadav, D.R
Section 14A

…आयकर अपीलीय अिधकरण, , , , मुंबई "यायपीठ आयकर अपीलीय अिधकरण मुंबई "यायपीठ ‘ए’ मुंबई । मुंबई । आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई "यायपीठ मुंबई "यायपीठ मुंबई । मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “A”, MUMBAI सव" "ी सव" "ी राजे"" राजे"", , , , लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग", "याियक सद"य के "याियक सद"य के सम" । सम" । सव" सव" "ी "ी राजे"" राजे"" लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग" "याियक सद"य के "याियक सद"य के सम" । सम" । BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER आयकर अपील सं././././ITA Nos.8461/M/2010 & 5598/M/20…

Archway Investment Company Ltd, Mumbai vs. ITO 2(1)(1`), Mumbai

The appeal of the assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 5598/MUM/2011[2008-09]Status: DisposedITAT Mumbai10 Feb 2017AY 2008-09

Bench: Shri Rajendra & Shri Sanjay Gargआयकर अपील सं././././Ita Nos.8461/M/2010 & 5598/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Years: 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Archway Investment Ito-2(1)(1), Company Limited, Mumbai Neville House, बनाम/Vs. J.N. Heredia Marg, बनाम बनाम बनाम Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'यथ% &'यथ%/Respondent) अपीलाथ% अपीलाथ% &'यथ% &'यथ% आयकर अपील सं././././Ita Nos.948/M/2011, 7215/M/2012 & 6013/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Year: 2007-08, 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Ito-2(1)(1), Archway Investment Co. Aayakar Bhavan, Ltd., R.No.561, 5Th Floor, Neville House, बनाम/Vs. M.K. Road, J.N. Heredia Marg, बनाम बनाम बनाम Mumbai-400 020 Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'य थ%/Respondent) अपीलाथ% अपीलाथ% &'य &'यथ% &'य थ% थ% Present For: Assessee By : Shri Yogesh Thar, A.R. Revenue By : Shri Rajesh Kumar Yadav, D.R.

For Appellant: Shri Yogesh Thar, A.RFor Respondent: Shri Rajesh Kumar Yadav, D.R
Section 14A

…आयकर अपीलीय अिधकरण, , , , मुंबई "यायपीठ आयकर अपीलीय अिधकरण मुंबई "यायपीठ ‘ए’ मुंबई । मुंबई । आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई "यायपीठ मुंबई "यायपीठ मुंबई । मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “A”, MUMBAI सव" "ी सव" "ी राजे"" राजे"", , , , लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग", "याियक सद"य के "याियक सद"य के सम" । सम" । सव" सव" "ी "ी राजे"" राजे"" लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग" "याियक सद"य के "याियक सद"य के सम" । सम" । BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER आयकर अपील सं././././ITA Nos.8461/M/2010 & 5598/M/20…

Archway Investment Company Ltd, Mumbai vs. ITO 2(1)(1), Mumbai

The appeal of the assessee is partly allowed whereas the appeal of the Revenue is dismissed

ITA 8461/MUM/2010[2007-08]Status: DisposedITAT Mumbai10 Feb 2017AY 2007-08

Bench: Shri Rajendra & Shri Sanjay Gargआयकर अपील सं././././Ita Nos.8461/M/2010 & 5598/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Years: 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Archway Investment Ito-2(1)(1), Company Limited, Mumbai Neville House, बनाम/Vs. J.N. Heredia Marg, बनाम बनाम बनाम Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'यथ% &'यथ%/Respondent) अपीलाथ% अपीलाथ% &'यथ% &'यथ% आयकर अपील सं././././Ita Nos.948/M/2011, 7215/M/2012 & 6013/M/2011 आयकर अपील सं आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Year: 2007-08, 2007-08 & 2008-09) (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" Ito-2(1)(1), Archway Investment Co. Aayakar Bhavan, Ltd., R.No.561, 5Th Floor, Neville House, बनाम/Vs. M.K. Road, J.N. Heredia Marg, बनाम बनाम बनाम Mumbai-400 020 Ballard Estate, Mumbai-400 001 Pan: Aaaca5507H (अपीलाथ% अपीलाथ%/Appellant) (&'य थ%/Respondent) अपीलाथ% अपीलाथ% &'य &'यथ% &'य थ% थ% Present For: Assessee By : Shri Yogesh Thar, A.R. Revenue By : Shri Rajesh Kumar Yadav, D.R.

For Appellant: Shri Yogesh Thar, A.RFor Respondent: Shri Rajesh Kumar Yadav, D.R
Section 14A

…आयकर अपीलीय अिधकरण, , , , मुंबई "यायपीठ आयकर अपीलीय अिधकरण मुंबई "यायपीठ ‘ए’ मुंबई । मुंबई । आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई "यायपीठ मुंबई "यायपीठ मुंबई । मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “A”, MUMBAI सव" "ी सव" "ी राजे"" राजे"", , , , लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग", "याियक सद"य के "याियक सद"य के सम" । सम" । सव" सव" "ी "ी राजे"" राजे"" लेखा सद"य एवं लेखा सद"य एवं "ी संजय गग" "ी संजय गग" "याियक सद"य के "याियक सद"य के सम" । सम" । BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER आयकर अपील सं././././ITA Nos.8461/M/2010 & 5598/M/20…

Piramal Glass Ltd, Mumbai vs. DCIT 7(3)(2), Mumbai

The appeal of the assessee stands partly allowed

ITA 157/MUM/2016[2011-12]Status: DisposedITAT Mumbai04 Jan 2017AY 2011-12

Bench: Shri Amit Shukla, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No. 157/Mum/2016 ("नधा"रण वष" / Assessment Year : 2011-2012) M/S Piramal Glass Ltd. Deputy Commissioner Of (Earlier Known As ‘Gujarat Glass Pvt. Ltd.’) Income Tax 7(3)(2) बनाम/ Room No. 669A, 6Th Floor Piramal Tower Ganpatrao Kadam Marg Aaykar Bahwan Vs. Lower Parel M.K.Road, Churchgate Mumbai 400013 Mumbai 400020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aabcg-0093-R (अपीलाथ" /Appellant) (""यथ" / Respondent) :

Section 115PSection 143(3)Section 156Section 92C

…preme Court 288 ITR 1] iv. CIT Vs Reliance Utilities [313 ITR 340 Bombay High Court] v. CIT Vs Reliance Communication Infrastructure [207 Taxmann 219 Bombay High Court] vi. CIT Vs. Phil Corp. Ltd [244 CTR 226 Bombay High Court] vii. CIT Vs Shristi Securities [321 ITR 498 Bombay High Court] Per Contra, Ld. DR supported the stand lower authorities. We have heard various contentions and perused relevant material including cited case laws. After analyzing the various judicial pronouncements, we find strength in the various arguments of Ld. AR. The perusal of Net worth statements reveals that as on 31/03/2011, the as…

Gujarat Glass P. Ltd(Earlier Known As Gujarat Glass P. Ltd ), Mumbai vs. Addl CIT Cir 6(3), Mumbai

In the result, appeal stands partly allowed

ITA 8360/MUM/2010[2006-07]Status: DisposedITAT Mumbai16 Dec 2016AY 2006-07

Bench: Shri Rajendra & Shri Saktijit Deyआयकर अऩीऱ सं. / Ita No. 8360/Mum./2010 (ननधधारण वषा / Assessment Year : 2006–07) Gujarat Glass Pvt. Ltd. (Now Known As Piramal Glass Ltd.) …….………. अऩीऱधथी / Piramal Tower, G.K. Marg Appellant Lower Parel, Mumbai 400 013 Pan – Aabcg0093R V/S Addl. Commissioner Of Income Tax ..…….………. प्रत्यथी / Circle–6(3), Mumbai Respondent ननधधाररती की ओर से / Assessee By : Shri Yogesh Thar रधजस्व की ओर से / Revenue By : Shri N.K. Chand सुनवधई की तधरीख / आदेश घोषणध की तधरीख / Date Of Hearing – 03.10.2016 Date Of Order – 16.12.2016 आदेश / Order शक्तिजीि दे, न्याययक सदस्य के द्वारा / Per Saktijit Dey, J.M.

For Appellant: Shri Yogesh TharFor Respondent: Shri N.K. Chand
Section 115JSection 32(1)(ii)

…nvestment in shares is for controlling interest, the interest paid is allowable as deduction under section 36(1)(iii). In this context, he relied upon the following decisions:– i) CIT v/s Phil Corporation, 244 CTR 226 (Bom.); ii) CIT v/s Shrishti Securities, 321 ITR 498 (Bom.); iii) CIT v/s Jardine Enderson Ltd., 210 ITR 981 (Cal.); and iv) Pistabai Rikhabhchand Kothari v/s ITO, 30 taxmann.com 346. 16. Further, learned Authorised Representative submitted, since the investment in shares is in a company which is in a similar line of business, the investment made is for commercial expediency, hence, no disallowance…

Sh. Raj Kumar Jain, New Delhi vs. DCIT, New Delhi

In the result the appeal is allowed

ITA 2821/DEL/2014[2008-09]Status: DisposedITAT Delhi23 Sept 2016AY 2008-09

Bench: Shri J. Sudhakar Reddy & Shri Kuldip Singhay: 2008-09 Sh. Raj Kumar Jain Vs. Dy.Cit, Circle 24(1) A 2/31, Safdarjung Enclave New Delhi New Delhi 110 029 Pan: Aagpj 5125 R (Appellant) (Respondent) Appellant By : Sh. Gautam Jain, C.A. Respondent By : Sh. Anil Kr. Sharma, Sr.D.R.

For Appellant: Sh. Gautam Jain, C.AFor Respondent: Sh. Anil Kr. Sharma, Sr.D.R
Section 143(3)Section 24Section 36Section 36(1)(iii)Section 57

…ied on the following cases. (i) CIT vs. Rajeeva Lochan Kanoria 115 ITR 616 (Cal.) 5 A.Y. 2008-09 Shri Raj Kumar Jain (ii) CIT vs. Jardine Hendartors 210 ITR 981 (Cal.) (iii) CIT vs. Phil Corpn. Ltd. 244 CTR 226 (Bom.) (iv) CIT vs. Srishti Securities (P) Ltd. 321 ITR 498 (Bom.) (v) CIT vs. Panaji Goa vs. Phil Corpn. Ltd. 244 CTR 526 (Bom.) He argued that, the finding of the Ld.CIT(Appeals) that acquiring controlling interest in a hotel cannot be considered as business of the assessee is against the propositions of law laid down by various Hon’ble Courts. (c ) He submitted that even if the Ld.CIT(A) was wrong in d…

DCIT 10(2)(2), Mumbai vs. Aditya Birla Minacs Worldwide Ltd, Mumbai

In the result, appeal of the assessee is allowed on this ground

ITA 4790/MUM/2015[2009-10]Status: DisposedITAT Mumbai25 Aug 2016AY 2009-10

Bench: Shri R.C. Sharma & Shri Amit Shukla

For Appellant: Shri Rajan VoraFor Respondent: Rupinder Bror CIT (DR)
Section 143Section 143(3)Section 154Section 92C

…ther the Ld. AR for the assessee company has also relied on the following judgments wherein it has been held that interest paid on borrowed funds for the purpose of acquiring controlling interest in the company is allowable expenditure: 1. Shrishti Securities 321 ITR 498 ( H.C.Bom) 2. Rajeev Lochan Kanoria 208 ITR 616 ( Cal. H.C) Therefore, based on the above cited facts and circumstances and position in case law, the interest expenditure incurred by the assessee is out of commercial exigency of the business and hence should be allowed as business expenditure under section 36 (1) (iii) of the Act, and we accordin…

Minacs P. Ltd, Mumbai vs. DCIT 10(1)(1), Mumbai

In the result, appeal of the assessee is allowed on this ground

ITA 4276/MUM/2015[2009-10]Status: DisposedITAT Mumbai25 Aug 2016AY 2009-10

Bench: Shri R.C. Sharma & Shri Amit Shukla

For Appellant: Shri Rajan VoraFor Respondent: Rupinder Bror CIT (DR)
Section 143Section 143(3)Section 154Section 92C

…ther the Ld. AR for the assessee company has also relied on the following judgments wherein it has been held that interest paid on borrowed funds for the purpose of acquiring controlling interest in the company is allowable expenditure: 1. Shrishti Securities 321 ITR 498 ( H.C.Bom) 2. Rajeev Lochan Kanoria 208 ITR 616 ( Cal. H.C) Therefore, based on the above cited facts and circumstances and position in case law, the interest expenditure incurred by the assessee is out of commercial exigency of the business and hence should be allowed as business expenditure under section 36 (1) (iii) of the Act, and we accordin…

Aditya Birla Minacs Worldwide Ltd, Mumbai vs. Jt CIT OSD 8(1), Mumbai

In the result, appeal of the assessee is allowed on this ground

ITA 620/MUM/2013[2008-09]Status: DisposedITAT Mumbai25 Aug 2016AY 2008-09

Bench: Shri R.C. Sharma & Shri Amit Shukla

For Appellant: Shri Rajan VoraFor Respondent: Rupinder Bror CIT (DR)
Section 143Section 143(3)Section 154Section 92C

…ther the Ld. AR for the assessee company has also relied on the following judgments wherein it has been held that interest paid on borrowed funds for the purpose of acquiring controlling interest in the company is allowable expenditure: 1. Shrishti Securities 321 ITR 498 ( H.C.Bom) 2. Rajeev Lochan Kanoria 208 ITR 616 ( Cal. H.C) Therefore, based on the above cited facts and circumstances and position in case law, the interest expenditure incurred by the assessee is out of commercial exigency of the business and hence should be allowed as business expenditure under section 36 (1) (iii) of the Act, and we accordin…

JCIT (OSD) 8(1), Mumbai vs. Aditya Birla Minacs Worldwide Ltd ( Formelry Known As Transworks Information Services Ltd), Mumbai

In the result, appeal of the assessee is allowed on this ground

ITA 610/MUM/2013[2008-09]Status: DisposedITAT Mumbai25 Aug 2016AY 2008-09

Bench: Shri R.C. Sharma & Shri Amit Shukla

For Appellant: Shri Rajan VoraFor Respondent: Rupinder Bror CIT (DR)
Section 143Section 143(3)Section 154Section 92C

…ther the Ld. AR for the assessee company has also relied on the following judgments wherein it has been held that interest paid on borrowed funds for the purpose of acquiring controlling interest in the company is allowable expenditure: 1. Shrishti Securities 321 ITR 498 ( H.C.Bom) 2. Rajeev Lochan Kanoria 208 ITR 616 ( Cal. H.C) Therefore, based on the above cited facts and circumstances and position in case law, the interest expenditure incurred by the assessee is out of commercial exigency of the business and hence should be allowed as business expenditure under section 36 (1) (iii) of the Act, and we accordin…

DCIT Cir 3(3), Mumbai vs. Videocon Industries Ltd, Mumbai

In the result, the Revenue’s appeal for A

ITA 5715/MUM/2013[2008-09]Status: DisposedITAT Mumbai31 May 2016AY 2008-09

Bench: Shri Jason P. Boaz & Shri Sandeep Gosaindcit, Circle 3(3) Ms/ Videocon Industires Ltd. Room No. 609, 6Th Floor 171-C, Mittal Court Vs. Àayakar Bhavan, M.K. Road Nariman Point Mumbai 400020 Mumbai 400021 Pan - Aabcv4012H Appellant Respondent

For Appellant: Shri G.M. DossFor Respondent: Shri Shailesh S. Shaw
Section 143(3)Section 147Section 148Section 154Section 36(1)(iii)

…) the learned D.R. of the assessee, inter alia, placed reliance on the following judicial decisions: - i) S.A. Builders Ltd. (288 ITR 1) (SC) - on grounds of ‘commercial expediency, such expenditure is allowable. ii) CIT vs. Srishti Securities (P) Ltd. (2010) 321 ITR 498 (Bom) - for the reasons that if funds are borrowed by an investment company for making investment in shares for the purpose of acquiring controlling interest, such borrowed funds would be deductible. iii) Reliance Communications Infrastructure Ltd. (2012) 207 Taxman 219. It was prayed that Revenue’s grounds be dismissed. 5.3.1 We have heard the r…

Af-Taab Investment Company Ltd, Mumbai vs. ITO WD 2(1)(2), Mumbai

The appeal of the assessee are hereby allowed for statistical purpose

ITA 3684/MUM/2012[2004-05]Status: DisposedITAT Mumbai11 May 2016AY 2004-05

Bench: S/Shri B.R.Baskaran & Amarjit Singhआयकर अपील सं/ I.T.A. No.3684/Mum/2012 & I.T.A. No.8981/Mum/2010 ("नधा"रण वष" / Assessment Year: 2004-05 & 2005-06) Af-Taab Investment Company The Income Tax Officer बनाम/ Limited 2(1)(2) Vs. Corporate Centre, ‘B’ Block, Mumbai 34, Sant Tukaram Road, Carnac Bunder, Mumbai - 400009 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaca4800H (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: Shri P. J. PardiwalaFor Respondent: Shri Manoj Kumar
Section 14ASection 36(1)(iii)

…आयकर अपील"य अ"धकरण,“ए” "यायपीठ, मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI "ी बी. आर. बा"करन, लेखा सद"य यवं "ी अमरजीत "संह, "या"यक सद"य, के सम" BEFORE S/SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND AMARJIT SINGH, JUDICIAL MEMBER आयकर अपील सं/ I.T.A. No.3684/Mum/2012 & I.T.A. No.8981/Mum/2010 ("नधा"रण वष" / Assessment Year: 2004-05 & 2005-06) Af-taab Investment Company The Income Tax Officer बनाम/ Limited 2(1)(2) Vs. Corporate Centre, ‘B’ Block, Mumbai 34, Sant Tukaram Road, Carnac Bunder, Mumbai - 400009 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACA4800H (अपीलाथ" /Appellant) .. (""यथ" / Respondent)…

M/S. Gujarat Glass Ltd vs. The Addl CIT RG 6(3)

In the result, appeals are allowed in part, in terms indicated hereinabove

ITA 9645/MUM/2004[2001-2002]Status: DisposedITAT Mumbai02 Mar 2016AY 2001-2002
For Appellant: Shri Yogesh A.TharFor Respondent: Shri Peeyush Sonkar
Section 143(3)

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ ‘बी’, म ुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “B”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI, JM आमकय अऩीर सं./ITA No.9645/Mum/2004 (नििाारण वषा / Assessment Year :2001-2002) PIRAMAL GLASS LTD.(Formerly Vs. ADCIT, Range-6(3), known as Gujarat Glass Private Mumbai-400020 Limited), Piramal Tower, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400013 स्थामी रेखा सं./ जीआइआय सं./ PAN/GIR No. : AABCG 0093 R (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. AND आमकय अऩीर सं./ITA No.9498/Mum/2004 (नििाारण वषा / Assessment Year :2001-2002) DCIT, Range-6(3), Mumbai-…