CIT v. Walfort Share & Stock Brokers (P.) Ltd.

326 ITR 1Supreme Court of India2010#116 most cited

What is CIT v. Walfort Share & Stock Brokers (P.) Ltd. authority for?

For attracting Section 14A disallowance, there must be a proximate cause relating the expenditure to actual tax-exempt income, and such disallowance is not automatic but requires positive material. Additionally, Section 94(7) on dividend stripping only ignores losses to the extent of dividend received for assessment years post-April 1, 2002, allowing the remaining loss.

543

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2011 to 2026.

Also referred to as

CIT v. Walfort Share & Stock Brokers P. Ltd. · 326 ITR 1 · Section 14A disallowance · proximate cause exempt income · not automatic disallowance · actual exempt income · Section 94(7) · dividend stripping · loss ignored to extent of dividend · tax-exempt income expenditure

Also reported as

192 Taxmann 21141 DTR 233

Sections most often in play

Section 14ASection 143(3)Section 94(7)Section 10(35)Section 133ASection 148Section 148ASection 48
Read the full judgment

Issues it is cited on

section 14a(1)strategic investmentsection 14a(2)section 10(34)disallowance under section 14adisallowance u/s 14asection 14asection 80iamercantile system of accountingsection 115jbsection 115jrevenue expenditure

Judgments citing CIT v. Walfort Share & Stock Brokers (P.) Ltd.

Addlcit, Special Range-6, Neww Delhi vs. National Building Construction Corporation Ltd., New Delhi

Appeals are disposed of by this common order

ITA 4165/DEL/2017[2012-13]Status: DisposedITAT Delhi26 Jul 2021AY 2012-13

Bench: Ms. Suchitra Kamblea N D Shri Prashant Maharishi

For Appellant: Shri Sachin Kumar, C.AFor Respondent: Shri Gaurav Pundir, Sr. D. R
Section 140ASection 143(3)Section 14ASection 244ASection 37(1)Section 40

…dy[1978] 115 ITR 519? 3, Whether infacts and circumstances of the case, Ld.CIT(A) is legally Justified in deletingdisallowance u/s 14A of the Act without considering ratio decidendi as upheld in cases of CIT Vs. Walfort Share and Stock Brokers P. Ltdd [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT [2012] 347 ITR 272 (Delhi) onapplication of provision of section 14A of the Act? " 4. Whether infacts and on circumstances of the case,the Ld.CIT (A) is Legally justified indeleting disallowance of Rs. 1,92,30,000/- u/s 40(a)(ia) of the Act on account of non-deduction of TDS on ‘Bank Guarantee Expenses’ by ignorin…

Dhanuka Labs Ltd., New Delhi vs. DCIT, New Delhi

In the result, miscellaneous application as well as the appeal of the assessee is allowed

ITA 3898/DEL/2014[2009-10]Status: DisposedITAT Delhi23 Jul 2021AY 2009-10

Bench: Shri R.K. Panda & Shri K. Narasimha Chary

For Respondent: Ms. Aman Preet, Sr. DR
Section 14ASection 14A(2)Section 14A(3)

…it does not account for the concept of ‘real income’. It does not note that under Section 5 of the Act, the question of taxation of ‘notional income’ does not arise. As explained in Commissioner of Income Tax v. Walfort Share and Stock Brokers Pvt. Ltd [2010] 326 ITR 1 (SC), the mandate of Section 14A of the Act is to curb the practice of claiming deduction of expenses incurred in relation to exempt income being taxable income and at the same time avail of the tax incentives by way of exemption of exempt income without making any apportionment of expenses incurred in relation to exempt income. Consequently, the C…

Principal Commissioner of Income Tax - 7 vs. M/S Universal Power Transformers Pvt Ltd

The appeal stands dismissed accordingly

ITA/107/2020HC Karnataka04 Jun 2021

Bench: SATISH CHANDRA SHARMA,RAVI V HOSMANI

Section 14ASection 260ASection 50CSection 73

…n of exempt income without making any apportionment of expenses incurred in relation to exempt income. The High Court of Madras has relied on the decision of the Supreme Court in COMMISSIONER OF INCOME TAX VS. WALFORT SHARE AND STOCK BROKERS (2010) 326 ITR 1 wherein it has been held that Section 14A is relatable to income of actual income or not notional or anticipated income. Therefore, the conclusion arrived at by us in M/S NOVEL SOFTWARE INDIA (P) LTD. is affirmed but for different reasons. It is also clarified by us that while recording the conclusion in KINGFISHER FINVEST LTD. that disallowa…

Principal Commissioner of Income Tax-5 vs. M/S. Nadathur Estates Pvt. Ltd

Appeal stands dismissed

ITA/247/2020HC Karnataka03 Jun 2021

Bench: SATISH CHANDRA SHARMA,RAVI V HOSMANI

Section 14ASection 260Section 73

…emption of exempt income without making any apportionment of expenses incurred in relation to exempt income. The High Court of Madras has relied on the decision of the Supreme Court in COMMISSIONER OF INCOME TAX VS. WALFORT SHARE AND STOCK BROKERS (2010) 326 ITR 1 wherein it has been held that Section 14A is relatable to income of actual income or not notional or anticipated income. Therefore, the conclusion arrived at by us in M/S NOVEL SOFTWARE INDIA (P) LTD. is affirmed but for different reasons. It is also clarified by us that ITA No.247/2020 6 while recording the conclusion in…

The Pr Commissioner of Income Tax, CIT(A) vs. M/S Delhi International Airport Pvt Ltd

In the result, we don to find any

ITA/352/2018HC Karnataka25 May 2021

Bench: SATISH CHANDRA SHARMA,R. NATARAJ

Section 14ASection 260A

…of exempt income without making any apportionment of expenses incurred in relation to exempt income. The High Court of Madras has relied on the decision of the Supreme Court in COMMISSIONER OF INCOME TAX VS. WALFORT SHARE AND STOCK BROKERS (2010) 326 ITR 1 wherein it has been held that Section 14A is relatable to income of actual income or not notional or anticipated income. Therefore, the conclusion arrived at by us in M/S NOVEL SOFTWARE INDIA (P) LTD. is affirmed but for different reasons. It is also clarified by us that while recording the conclusion in KINGFISHER FINVEST LTD. that disallowa…

Hero Motocrop Ltd., New Delhi vs. ACIT, Circle- 11(1), New Delhi

The appeal of the assessee is partly allowed

ITA 9187/DEL/2019[2015-16]Status: DisposedITAT Delhi13 Apr 2021AY 2015-16

Bench: Shri Sudhanshu Srivastava & Shri O.P. Kantassessment Year: 2015-16

Section 115JSection 143(3)Section 144CSection 145ASection 80ISection 92C

…llowance followed by the assessee. In the absence of any satisfaction recorded in the assessment order, the disallowance as per Rule 8D needs to be deleted. Reliance in this regard was placed on the following decisions: - CIT vs. Walfort Share & Stock Brokers 326 ITR 1(SC) - Godrej & Boyce Manufacturing Company Ltd. VS. DCIT: 394 ITR 449(SC) - Maxopp Investment Ltd: 347 ITR 272 (Del.)- Affirmed by the Hon’ble Supreme Court in 402 ITR 640 - CIT v. Essar Teleholdings Ltd.: 401 ITR 445 (SC) - PCIT v. Vedanta Ltd.: [2019] 261 Taxman 179 (Delhi) - H.T. Media Limited v. PCIT: 399 ITR 576 (Del) - Eicher Motors Ltd. vs.…

Bachhraj Factories Pvt Ltd., Mumbai vs. ACIT Circle-3(1)(1), Mumbai

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

ITA 3986/MUM/2019[2014-15]Status: DisposedITAT Mumbai07 Apr 2021AY 2014-15
For Appellant: Shri Kirit KamdarFor Respondent: Shri Tharian Oommen (DR)
Section 143(2)Section 14A

…t income. The said expression “in relation to” has been judiciously explained to mean some real and dominant relationship. 4.9. In this regard ld. counsel has relied on the decision of Hon‟ble Supreme Court in the case of CIT Vs. Walford Share & Stock Brokers 326 ITR 1, wherein it has been held by the Apex Court that there must be proximate relationship of expenditure with the exempt income for the purpose of making disallowance u/s 14A of the Act. This decision was followed by the Hon‟ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. Vs. CIT 328 ITR 81 . 4.10. He further referred to the decision…

Pr. Commissioner of Income-Tax-4 vs. Karnataka State Financial Corporation Ltd

ITA/168/2019HC Karnataka26 Mar 2021

Bench: SATISH CHANDRA SHARMA,S VISHWAJITH SHETTY

Section 143(3)Section 14ASection 260Section 73

…on of exempt income without making any apportionment of expenses incurred in relation to exempt income. The High Court of Madras has relied on the decision of the Supreme Court in COMMISSIONER OF INCOME TAX VS. WALFORT SHARE AND STOCK BROKERS (2010) 326 ITR 1 wherein it has been held that Section 14A is relatable to income of actual income or not notional or anticipated income. Therefore, the conclusion arrived at by us in M/S NOVEL SOFTWARE INDIA (P) LTD. is affirmed but for different ITA 168/2019 9 reasons. It is also clarified by us that while recording the conclusion in KINGFISHER…

Pr. Commissioner of Income Tax - 5 vs. M/S Nam Estates Private Limited

The appeal stands dismissed

ITA/273/2019HC Karnataka26 Mar 2021

Bench: SATISH CHANDRA SHARMA,S VISHWAJITH SHETTY

Section 143Section 143(3)Section 14ASection 154Section 260Section 90Section 90ASection 91

…on of exempt income without making any apportionment of expenses incurred in relation to exempt income. The High Court of Madras has relied on the decision of the Supreme Court in COMMISSIONER OF INCOME TAX VS. WALFORT SHARE AND STOCK BROKERS (2010) 326 ITR 1 wherein it has been held that Section 14A is relatable to income of actual income or not notional or anticipated income. Therefore, the conclusion arrived at by us in M/S NOVEL SOFTWARE INDIA (P) LTD. is affirmed but for different reasons. It is also clarified by us that while recording the conclusion in KINGFISHER FINVEST LTD. that dis…

DCIT, New Delhi vs. M/S Malana Power Co. Ltd., New Delhi

In the result, appeal filed by the learned assessing officer in ITA number 3713/del/2017 for assessment year 2012 – 13 is dismissed

ITA 3713/DEL/2017[2012-13]Status: DisposedITAT Delhi23 Mar 2021AY 2012-13

Bench: Shri Amit Shuklaa N D Shri Prashant Maharishi(Through Video Conferencing) Dcit, Vs. Malana Power Co. Ltd, Bhilwara Bhawan, Circle-16(1)M 40-41, Community Centre, New Friends Colony, New Delhi New Delhi Pan: Aabcm1108R (Appellant) (Respondent) Malana Power Co. Ltd, Vs. Addl. Dcit, Bhilwara Bhawan, 40-41, Community Centre, New Range-6, Friends Colony, New Delhi New Delhi Pan: Aabcm1108R (Appellant) (Respondent)

For Appellant: Shri P. K. Jain, CAFor Respondent: Shri Sohil Malik, Sr. DR
Section 115JSection 14Section 14ASection 2(14)Section 80I

…s of the case, the Ld. CIT (A) is legally justified in not upholding the disallowance u/s 14 A of the Act r.w. R 8D of the Rule of Rs. 2,46,47,780/- without considering ratio decidendi as upheld in cases of CIT Vs Walfort Share and Stock Brokers P Ltd. [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT [2012] 347 ITR 272 (Delhi) on application of provisions of section 14 A of the Act? 5. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in allowing deduction u/s 80IA of the Act on amount of Rs. 5,07,000/- which include ‘income from other sources’ including rental income? 6. Wh…

Malana Power Co. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, appeal filed by the learned assessing officer in ITA number 3713/del/2017 for assessment year 2012 – 13 is dismissed

ITA 2464/DEL/2017[2012-13]Status: DisposedITAT Delhi23 Mar 2021AY 2012-13

Bench: Shri Amit Shuklaa N D Shri Prashant Maharishi(Through Video Conferencing) Dcit, Vs. Malana Power Co. Ltd, Bhilwara Bhawan, Circle-16(1)M 40-41, Community Centre, New Friends Colony, New Delhi New Delhi Pan: Aabcm1108R (Appellant) (Respondent) Malana Power Co. Ltd, Vs. Addl. Dcit, Bhilwara Bhawan, 40-41, Community Centre, New Range-6, Friends Colony, New Delhi New Delhi Pan: Aabcm1108R (Appellant) (Respondent)

For Appellant: Shri P. K. Jain, CAFor Respondent: Shri Sohil Malik, Sr. DR
Section 115JSection 14Section 14ASection 2(14)Section 80I

…s of the case, the Ld. CIT (A) is legally justified in not upholding the disallowance u/s 14 A of the Act r.w. R 8D of the Rule of Rs. 2,46,47,780/- without considering ratio decidendi as upheld in cases of CIT Vs Walfort Share and Stock Brokers P Ltd. [2010] 326 ITR 1 (SC) and Maxopp Investment Vs CIT [2012] 347 ITR 272 (Delhi) on application of provisions of section 14 A of the Act? 5. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in allowing deduction u/s 80IA of the Act on amount of Rs. 5,07,000/- which include ‘income from other sources’ including rental income? 6. Wh…

Petronet Lng Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is allowed

ITA 5232/DEL/2015[2011-12]Status: DisposedITAT Delhi18 Mar 2021AY 2011-12

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…h are akin to fixed deposits of the bank not requiring any constant monitoring or analysis of investment portfolio unlike equity oriented funds. The ld. AR relied on various case laws as mentioned below:  CIT Vs Walfort Share & Stock Brokers (P) Ltd. (2010) 326 ITR 1 (SC)  Godrej & Boyce Manufacturing Company Ltd. (2017) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle I…

Petronet Lng Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is allowed

ITA 5231/DEL/2015[2010-11]Status: DisposedITAT Delhi18 Mar 2021AY 2010-11

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…h are akin to fixed deposits of the bank not requiring any constant monitoring or analysis of investment portfolio unlike equity oriented funds. The ld. AR relied on various case laws as mentioned below:  CIT Vs Walfort Share & Stock Brokers (P) Ltd. (2010) 326 ITR 1 (SC)  Godrej & Boyce Manufacturing Company Ltd. (2017) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle I…

Petronet Lng Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is allowed

ITA 5230/DEL/2015[2009-10]Status: DisposedITAT Delhi18 Mar 2021AY 2009-10

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…h are akin to fixed deposits of the bank not requiring any constant monitoring or analysis of investment portfolio unlike equity oriented funds. The ld. AR relied on various case laws as mentioned below:  CIT Vs Walfort Share & Stock Brokers (P) Ltd. (2010) 326 ITR 1 (SC)  Godrej & Boyce Manufacturing Company Ltd. (2017) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle I…

DCIT, New Delhi vs. M/S. Petronet Lng Ltd., New Delhi

Appeal of the assessee is allowed

ITA 4904/DEL/2015[2011-12]Status: DisposedITAT Delhi18 Mar 2021AY 2011-12

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…h are akin to fixed deposits of the bank not requiring any constant monitoring or analysis of investment portfolio unlike equity oriented funds. The ld. AR relied on various case laws as mentioned below:  CIT Vs Walfort Share & Stock Brokers (P) Ltd. (2010) 326 ITR 1 (SC)  Godrej & Boyce Manufacturing Company Ltd. (2017) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle I…

DCIT, New Delhi vs. M/S. Petronet Lng Ltd., New Delhi

Appeal of the assessee is allowed

ITA 4903/DEL/2015[2010-11]Status: DisposedITAT Delhi18 Mar 2021AY 2010-11

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…h are akin to fixed deposits of the bank not requiring any constant monitoring or analysis of investment portfolio unlike equity oriented funds. The ld. AR relied on various case laws as mentioned below:  CIT Vs Walfort Share & Stock Brokers (P) Ltd. (2010) 326 ITR 1 (SC)  Godrej & Boyce Manufacturing Company Ltd. (2017) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle I…

DCIT, New Delhi vs. M/S. Petronet Lng Ltd., New Delhi

Appeal of the assessee is allowed

ITA 4902/DEL/2015[2009-10]Status: DisposedITAT Delhi18 Mar 2021AY 2009-10

Bench: Sh. Sudhanshu Srivastavadr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5230/Del/2015 : Asstt. Year : 2009-10 Ita No. 5231/Del/2015 : Asstt. Year : 2010-11 Ita No. 5232/Del/2015 : Asstt. Year : 2011-12 Petronet Lng Ltd., Vs Deputy Commissioner Of First Floor, World Trade Centre, Income Tax, Circle-19(2), Babar Road, Barakhamba Lane, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Ita No. 4902/Del/2015 : Asstt. Year : 2009-10 Ita No. 4903/Del/2015 : Asstt. Year : 2010-11 Ita No. 4904/Del/2015 : Asstt. Year : 2011-12 Deputy Commissioner Of Vs Petronet Lng Ltd., Income Tax, Circle-19(2), First Floor, World Trade Centre, New Delhi Babar Road, Barakhamba Lane, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp8148D Assessee By : Sh. Vishal Kalra, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 27.01.2021 Date Of Pronouncement: 18.03.2021

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 14ASection 234C

…h are akin to fixed deposits of the bank not requiring any constant monitoring or analysis of investment portfolio unlike equity oriented funds. The ld. AR relied on various case laws as mentioned below:  CIT Vs Walfort Share & Stock Brokers (P) Ltd. (2010) 326 ITR 1 (SC)  Godrej & Boyce Manufacturing Company Ltd. (2017) 394 ITR 449 (SC)  HT Media Ltd. Vs Pr. CIT (2017) 85 taxmann.com 113 (Del.)  CIT Om Prakash Khaitan (2015) 376 ITR 390 (Del.)  ACIT Vs Eicher Ltd. (2007) 101 TTJ 369 (Del.)  Maruti Udgyog Ltd. Vs DCIT (2005) 92 ITD 119 (Del.)  CIT Vs Hero Cycles (2010) 323 ITR 518 (P&H)  DCIT Vs Nestle I…

ACIT, Central Circle- 17, New Delhi vs. Era Infrastructure (India) Ltd., New Delhi

In the result, appeals of the Revenue are dismissed

ITA 798/DEL/2018[2013-14]Status: DisposedITAT Delhi10 Mar 2021AY 2013-14

Bench: Shri Prashant Maharishi & Shri K. Narasimha Chary

For Appellant: Sh. Rajesh Kumar, Sr. DRFor Respondent: None
Section 14A

…it does not account for the concept of ‘real income’. It does not note that under Section 5 of the Act, the question of taxation of ‘notional income’ does not arise. As explained in Commissioner of Income Tax v. Walfort Share and Stock Brokers Pvt. Ltd [2010] 326 ITR 1 (SC), the mandate of Section 14A of the Act is to curb the practice of claiming deduction of expenses incurred in relation to exempt income being taxable income and at the 5 ITAs-797,798/Del/2018 same time avail of the tax incentives by way of exemption of exempt income without making any apportionment of expenses incurred in relation to exempt in…

ACIT, Central Circle- 17, New Delhi vs. Era Infrastructure (India) Ltd., New Delhi

In the result, appeals of the Revenue are dismissed

ITA 797/DEL/2018[2014-15]Status: DisposedITAT Delhi10 Mar 2021AY 2014-15

Bench: Shri Prashant Maharishi & Shri K. Narasimha Chary

For Appellant: Sh. Rajesh Kumar, Sr. DRFor Respondent: None
Section 14A

…it does not account for the concept of ‘real income’. It does not note that under Section 5 of the Act, the question of taxation of ‘notional income’ does not arise. As explained in Commissioner of Income Tax v. Walfort Share and Stock Brokers Pvt. Ltd [2010] 326 ITR 1 (SC), the mandate of Section 14A of the Act is to curb the practice of claiming deduction of expenses incurred in relation to exempt income being taxable income and at the 5 ITAs-797,798/Del/2018 same time avail of the tax incentives by way of exemption of exempt income without making any apportionment of expenses incurred in relation to exempt in…

ACIT, Circle- 7(2), Delhi vs. Ds Group Hospitality Pvt. Ltd., Gurgaon

In the result, appeal of the Revenue is dismissed

ITA 5483/DEL/2018[2015-16]Status: DisposedITAT Delhi10 Mar 2021AY 2015-16

Bench: Shri Prashant Maharishi & Shri K. Narasimha Charyassessment Year : 2015-16 Acit, Circle-7(2), Delhi Vs. M/S Ds Group Hospitality Pvt. Ltd., 3Rd Floor, Sco No. 310, Ansari Road, Daryaganj, New Delhi-110002 Pan-Aaecd7010Q (Appellant) (Respondent) Appellant By : Sh. Rajesh Kumar, Sr. Dr Respondent By : Sh. Satyajeet Goel, Ca Date Of Hearing : 10.03.2021 Date Of Pronouncement : 10.03.2021 Order Per K. Narasimha Chary, Jm: Aggrieved By The Orders Dated 1/6/2018 In Appeal Numbers 128/2017-18 Passed By The Learned Commissioner Of Income

For Appellant: Sh. Rajesh Kumar, Sr. DRFor Respondent: Sh. Satyajeet Goel, CA
Section 115Section 14Section 14A

…it does not account for the concept of ‘real income’. It does not note that under Section 5 of the Act, the question of taxation of ‘notional income’ does not arise. As explained in Commissioner of Income Tax v. Walfort Share and Stock Brokers Pvt. Ltd [2010] 326 ITR 1 (SC), the mandate of Section 14A of the Act is to curb the practice of claiming deduction of expenses incurred in relation to exempt income being taxable income and at the same time avail of the tax incentives by way of exemption of exempt income without making any apportionment of expenses incurred in relation to exempt income. Consequently, the C…