CIT v. Veekay Lal Investments Co. Pvt. Ltd.

Acmevac Pumps & Engg. Pvt. Ltd., Thane vs. ACIT - 2(1)(1), Mumbai

Bench: Shri Joginder Singh() & Shri G Manjunatha ()

…1 ITA 5155/Mum/2016 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I”, MUMBAI Before Shri Joginder Singh(JUDICIAL MEMBER) AND Shri G Manjunatha (ACCOUNTANT MEMBER) I.T.A No.5155/Mum/2017 (Assessment year: 2012-13) Acmevac Pumps & Engg Pvt vs Asst.Commissioner of Income-tax- Ltd, 15-16, R.K.Industries 2(1)(1), Mumbai Estate, Behind Volvo, Opp Banjara Dhaba, Survey No.148, Gate No.3, Malji Pada, Vasai (E) Thane – 401 208 PAN : AACCA4547R APPELLANT RESPONDENT Appellant by Shri Hiro Rai Respondent by Shri Virender Singh Date of hearing 14-06-2018 Date of pronouncement 10-08-2018 O R D E R Per G Manjunatha,…

Mountpark Creativce P.Ltd, Mumbai vs. ITO 1(2)(3), Mumbai

In the result, the appeal is allowed

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2011-12 Mountpart Creative Pvt. Income Tax Officer- Ltd. Tardeo Ac Market 1(2)(3), 5Th Floor, Vs. Building, 7Th Floor, Suite 47, Aayakar Bhavan, M.K. Mumbai-400034. Road, Mumbai- 400020. Pan No. Aabcm1761G Appellant Respondent Assessee By : Mr. Biren Gabhawala, Ar Revenue By : Mr. Manoj Kumar Singh, Dr Date Of Hearing : 02/08/2018 Date Of Pronouncement : 08/08/2018. Order Per N.K. Pradhan, Am This Is An Appeal Filed By The Assessee. The Relevant Assessment Year Is 2011-12. The Appeal Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-2 [In Short ‘Cit(A)’], Mumbai & Arises Out Of The Assessment Order U/S 143(3) Of The Income Tax Act 1961, (The ‘Act’). 2. The Grounds Of Appeal Read As Under: 1. On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Erred In Upholding The Action Of The Learned In Computing "Book Profit" At Rs.73,32,838/-Under Section 115Jb Of The I.T. Act

…unal in M/s Technicarts (P) Ltd. v. ITO (2011) 46 SOT 294 (Mum.), Growth Avenue Securities Pvt. Ltd. v. DCIT (2010) 128 TTJ 426 (Del), Rain Commodities 41 DTR 449 (Hyderabad) and the judgment of the Hon’ble Bombay High Court in Veekay Lal Investment Pvt. Ltd. 249 ITR 597 (Bom), relied on the ratio laid down in the above decisions and confirmed the order of the AO that the assessee is not entitled to claim deduction u/s 54EC, while calculating book profit u/s 115JB of the Act. 5. Before us, the Ld. counsel of the assessee submits that the issue in the instant case has been decided by the Hon’ble Madras High Court…

Bhansali Infotech P.Ltd, Navi Mumbai vs. DCIT (OSD) 10(3), Mumbai

In the result, appeal of the assessee is allowed in part in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm M/S. Bhansali Infotech Pvt. Ltd., Vs. Dy. Commissioner Of Office No. 5 & 6 Income Tax (Osd) 10(3) Shakti Arcade Aayakar Bhavan 4Th Floor, Plot No.5, Sector – 19D Vashi, Navi Mumbai - 400705 Room No.517, M.K. Road Mumbai – 400 020 Pan/Gir No.Aaccb7808E Appellant) .. Respondent)

…le Supreme Court, book profit disclosed by the assessee company in audited P & L a/c for impugned assessment year cannot be altered by adding back Capital Reserve. We have also gone through the decision of Mumbai High Court in the case of Veekayal Investments 249 ITR 597 (Mumbai) as relied upon by the Ld 24 M/s. Bhansali Infotech Pvt. Ltd., DR. We noted that the said decision was rendered by Mumbai High Court prior to the decision of Apex Court in the case of Apollo Tyres Ltd. This decision therefore will not assist the Revenue. We therefore set aside the order of the CIT(A) on this issue and direct the AO not t…

DCIT Cir 7(1)(1), Mumbai vs. Geetanjali Trading & Investments P. Ltd, Mumbai

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2012-13 Dcit, Circle 7(1)(1), M/S Geetanjali Trading Room No. 23, Ground & Investment Pvt. Ltd. Vs. Floor, Aayakarbhavan, 3A, Barodawala M.K. Road, Mansion, 81, Dr. Annie Mumbai-400020. Besant Road, Worli, Mumbai-400018 Pan No. Aaacg3265A Appellant Respondent C.O. No. 281/Mum/2017 Assessment Year: 2012-13 M/S Geetanjali Trading Dcit, Circle 7(1)(1) & Investment Pvt. Ltd. Room No. 23, Ground Vs. 3A, Barodawala Floor, Aayakar Bhavan, Mansion, 81, Dr. Annie M.K. Road, Besant Road, Worli, Mumbai-400020 Mumbai-400018 Pan No. Aaacg3265A Appellant Respondent

…e Ld. CIT(A) reversed the action of the AO of increasing the assessee’s book profit by an amount of Rs.673.47 crores. 5.3 Before us, the Ld. DR relies on the decision in Indo Rama Synthetics (I) Ltd. v. CIT (2011) 196 Taxman 539 (SC), Veekaylal Investment Co. 249 ITR 597 (Bom) and DCIT v. Bombay Diamond Co. 33 DTR 59 and the requirement as to profit and loss account as per Schedule VI to the Companies Act. On the other hand, the Ld. counsel of the assessee relies on the decision in Apollo Tyres Ltd. v. CIT (2002) 255 ITR 273 (SC) and the Notification on Revised Schedule VI to the Companies Act, 1956. M/s Geetanja…

Bhupati Investments & Finance P. Ltd, Mumbai vs. ITO 5(1)(2), Mumbai

Bench: Shri Rajendra & Shri C.N. Prasadbhupati Investments & Finances Pvt Ltd V. Income Tax Officer B-34/35, 3Rd Floor 5(1)(2) Paragon Condominium Aayakar Bhavan P.B. Marg, Room No.525/570 Worli M.K.Road Mumbai 400 001 Mumbai 400 020 Pan : Aaacb 0441 P (Appellant) (Respondent) Bhupati Investments & Finances Pvt Ltd V. Acit – 5(1) B-34/35, 3Rd Floor Room No.525/570 Paragon Condominium Aayakar Bhavan P.B. Marg, M.K.Road Worli Mumbai 400 020 Mumbai 400 001 Pan : Aaacb 0441 P (Appellant) (Respondent) Assessee By: Shri Nitesh Joshi

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B”, MUMBAI BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, JUDICIAL MEMBER Bhupati Investments & Finances Pvt Ltd v. Income Tax Officer B-34/35, 3rd Floor 5(1)(2) Paragon Condominium Aayakar Bhavan P.B. Marg, Room No.525/570 Worli M.K.Road Mumbai 400 001 Mumbai 400 020 PAN : AAACB 0441 P (Appellant) (Respondent) Bhupati Investments & Finances Pvt Ltd v. ACIT – 5(1) B-34/35, 3rd Floor Room No.525/570 Paragon Condominium Aayakar Bhavan P.B. Marg, M.K.Road Worli Mumbai 400 020 Mumbai 400 001 PAN : AAACB 0441 P (Appellant) (Respondent) Assessee by: Shri…

Asst CIT Cir 11(5) vs. Jsw Steel Ltd

In the result assessee’s appeal is partly allowed whereas revenue’s appeal is dismissed

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05

…the assessing officer included such waiver of loan and interest thereon for the purpose of computing book profits u/s. 115JB. The tribunal in this background held as under:- “15. The Jurisdictional High Court in the case of CIT Veekaylal Investment Co P Ltd (249 ITR 597) has held that capital gains credited to profit and Loss account should be take into account in computing Book Profits. 16. The Delhi High Court in the case of CIT v Goyal M.G. Gases 2010- TIOL-91HC-DEL has held as under: "In the present case, the assessee did not claim nor was allowed any deduction or benefit of allowance by way of allowable ex…

Jsw Steel Ltd vs. Asst CIT Cir 11(5)

In the result assessee’s appeal is partly allowed whereas revenue’s appeal is dismissed

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05

…the assessing officer included such waiver of loan and interest thereon for the purpose of computing book profits u/s. 115JB. The tribunal in this background held as under:- “15. The Jurisdictional High Court in the case of CIT Veekaylal Investment Co P Ltd (249 ITR 597) has held that capital gains credited to profit and Loss account should be take into account in computing Book Profits. 16. The Delhi High Court in the case of CIT v Goyal M.G. Gases 2010- TIOL-91HC-DEL has held as under: "In the present case, the assessee did not claim nor was allowed any deduction or benefit of allowance by way of allowable ex…

Wadinar Power Company Ltd, Mumbai vs. Addl CIT 5(3), Mumbai

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainm/S. Vadinar Power Company Ltd. Additional Cit-5(3) 5Th Floor, Tower-Ii, Equinox Aayakar Bhavan Business Park, Off Bandra Kurla Vs. M.K. Road, Mumbai 400020 Complex, Lbs Marg, Kurla (W) Mumbai 400070 Pan - Aaacv5226C Appellant Respondent

…d. ` 99,93,000/- (i) Interest income (ii) Profit on sale of units of Mutual Funds `1,49,68,000/- In coming to this view, the AO placed reliance on the decisions of the Hon'ble Bombay High Court in the case of Veekaylal Investment Company Pvt. Ltd. reported in 249 ITR 597 and of the Coordinate Bench of this Tribunal in the case of Kopran Pharmaceuticals Ltd. (119 ITD 355) (ITAT, Mumbai) to hold that these two items (supra) are to be considered while computing the ‘book profits’ under section 115JB of the Act as they had not been routed through the Profit & Loss Account as per the provisions of Parts II & III of th…

The DCIT 3(1) vs. M/S. Gujarat Ambuja Cements Ltd

Bench: Shri B.R. Baskaran, Am & Shri Sandeep Gosain, Jm आयकर अपील सं./ I.T.A. No. 2524/Mum/2005 ("नधा"रण वष" / Assessment Year: 1998-99) Gujarat Ambuja Cements Limited The Deputy Commissioner Of 122, Maker Chambers Iii, Income Tax, Range 3(1), बनाम/ Nariman Point, Aayakar Bhawan, Vs. Mumbai-400 021. M.K. Road, Mumbai-400 020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaapj 8040P (अपीलाथ" /Appellant) (""यथ" / Respondent) :

…bmitted that during the year, the assessee has claimed exclusion of profit (net of loss) on sale of investments in computing Book Profit u/s 115JA ld. AR further submitted AO while relying on the decision of CIT vs. Veekaylal Investments Co. (P) Ltd. (2001) 249 ITR 597 (Bomb). Ld. AR further argued that CIT(A) has also erroneously upheld the order passed by AO. Ld. AR argued that the issue is covered by the decision of the Hon’ble Delhi Tribunal in the case of ACIT vs. Northern India Theaters (P) Ltd. (1996) 133 CTR 326 (Del) wherein it has been held that profit derived on sale of fixed assets yield only capi…

M/S. Gujarat Ambuja Cements Ltd vs. The Dy CIT RG3(1)

Bench: Shri B.R. Baskaran, Am & Shri Sandeep Gosain, Jm आयकर अपील सं./ I.T.A. No. 2524/Mum/2005 ("नधा"रण वष" / Assessment Year: 1998-99) Gujarat Ambuja Cements Limited The Deputy Commissioner Of 122, Maker Chambers Iii, Income Tax, Range 3(1), बनाम/ Nariman Point, Aayakar Bhawan, Vs. Mumbai-400 021. M.K. Road, Mumbai-400 020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaapj 8040P (अपीलाथ" /Appellant) (""यथ" / Respondent) :

…bmitted that during the year, the assessee has claimed exclusion of profit (net of loss) on sale of investments in computing Book Profit u/s 115JA ld. AR further submitted AO while relying on the decision of CIT vs. Veekaylal Investments Co. (P) Ltd. (2001) 249 ITR 597 (Bomb). Ld. AR further argued that CIT(A) has also erroneously upheld the order passed by AO. Ld. AR argued that the issue is covered by the decision of the Hon’ble Delhi Tribunal in the case of ACIT vs. Northern India Theaters (P) Ltd. (1996) 133 CTR 326 (Del) wherein it has been held that profit derived on sale of fixed assets yield only capi…

M/S. Gujarat Ambuja Cements Ltd vs. The Dy CIT RG 3(1)

In the result, appeal filed by the assessee is partly allowed and the appeal of the Revenue is dismissed

Bench: Shri D.Karunakara Rao & Shri Pawan Singhassessment Year: 1999-2000 Gujarat Ambuja Cements Limited, Dcit Range 3(1), 122, Maker Chambers, Iii, Aayakar Bhavan, M.K. Road, Vs. Mumbai-400020. Nariman Point, Mumbai-400021. Pan: Aaacg0569P (Appellant) (Respondent) Assessment Year: 1999-2000 Dcit Range 3(1), Gujarat Ambuja Cements Limited, Aayakar Bhavan, M.K. Road, 122, Maker Chambers, Iii, Vs. Mumbai-400020. Nariman Point, Mumbai-400021. Pan: Aaacg0569P (Appellant) (Respondent)

…estment in computing book profit u/s.115JA, the assessee has claimed exclusion of profit and sale of investment in computing book profit u/s. 115JA. The AO while making assessment relying on the decision of CIT vs. Veekaylal Investments Company P. Ltd. (2001) 249 ITR 597 (Bom), the claim of assessee was disallowed, CIT(A) upheld the decision of AO on the similar line. AR of the assessee argued that this issue is covered by the decision of Delhi Tribunal in the case of ACIT vs. Northern India Theaters (P) Ltd. (1996) 133 CTR 326 (Del). The AR further fairly conceded that this issue is covered against the assessee…