Commissioner of Income Tax v. Central Bank of India

Addl CIT R G 7(1), Mumbai vs. Novartis India Ltd ( Formerly Known As Hindustan Ciba Giegy Ltd. ), Mumbai

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Novartis India Limited V. Asst. Commissioner Of Income –Tax - 7(2)(2) {Earlier Addl. Commissioner Of Income –Tax – 7(1)} 6Th& 7Th Floor 1St Floor, Aayakar Bhavan Inspire Bkc M.K. Road, Mumbai - 400020 “G” Block, Bkc Main Road Bandra Kurla Complex, Bandra (E) Mumbai – 400051 Pan: Aaach2914F (Appellant) (Respondent) Addl. Commissioner Of Income –Tax – 7(1) V. M/S. Novartis India Limited Room No. 622, Aayakar Bhavan {Earlier Known As Hindustan Ciba Giegy Ltd.,} Sandoz House, Dr. A.B. Road M.K. Road, Mumbai - 400020 Worli, Mumbai – 400018 Pan: Aaach2914F (Appellant) (Respondent) Co No.190/Mum/2011 [Arising Out Of Ita No.6772/Mum/2010 (A.Y. 2002-03)] M/S. Novartis India Limited V. Addl. Commissioner Of Income –Tax – 7(1)} Room No. 622, Aayakar Bhavan {Earlier Known As Hindustan Ciba Giegy Ltd.,} Sandoz House, Dr. A.B. Road M.K. Road, Mumbai - 400020 Worli, Mumbai – 400018 Pan: Aaach2914F (Appellant) (Respondent)

…Act 2001 with retrospective effect from 1.4.1962.” 40. After hearing both the sides and going through the facts, we find that the CIT(A) following the decision of Hon’ble Bombay High Court in the case of CIT v. General Insurance Corpn. of India (No.1) (2002) 254 ITR 203 (Bom), restricting the disallowance at 2% by observing in Para 10.4 as under: - “10.4 On a consideration of the matter I am inclined to agree with the appellant. As pointed out by the appellant a similar issue had arisen in the case of this appellant for AY 1995-96. There, CIT(A)- XXIV on the facts of the instant case and relying upon the decisio…

DCIT RG. - 3(1), Mumbai vs. M/S. Bajaj Auto Ltd., Mumbai

In the result, appeal filed by the assessee is partly allowed

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Bajaj Auto Limited V. Dcit – Range – 3(1) Bajaj Bhavan, 226-Nariman Point 6Th Floor, Aayakar Bhavan Mumbai – 400021 M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Dcit – Range – 3(1) V. M/S. Bajaj Auto Limited Room No. 623, 6Th Floor Bajaj Bhavan, 226-Nariman Point Mumbai – 400021 Aayakar Bhavan M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Ms. Vasanti Patel& Shri Kirit Kamdar Department Represented By : Shri Ankush Kapoor

…expenses are of a revenue nature, the same should be allowed as deduction while computing the total income. The assessee also relied on the case of Bombay Burmah Trading Corporation Ltd. v. CIT (145 ITR 793) and CIT v. General Insurance Corporation of India (254 ITR 203). 69. After considering the submissions of the assessee, Ld. CIT(A) sustained the additions made by the Assessing Officer by observing that the expenditure had been incurred not for introduction of any capital but for the purpose of reduction of share capital, by relying on the decision of CIT v. Sakthi Finance [256 ITR 488 (Mad)] that the expen…

M/S. Bajaj Auto Ltd., Mumbai vs. DCIT RG. - 3(1), Mumbai

In the result, appeal filed by the assessee is partly allowed

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Bajaj Auto Limited V. Dcit – Range – 3(1) Bajaj Bhavan, 226-Nariman Point 6Th Floor, Aayakar Bhavan Mumbai – 400021 M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Dcit – Range – 3(1) V. M/S. Bajaj Auto Limited Room No. 623, 6Th Floor Bajaj Bhavan, 226-Nariman Point Mumbai – 400021 Aayakar Bhavan M.K. Road, Mumbai - 400020 Pan : Aaacb3370K (Appellant) (Respondent) Assessee Represented By : Ms. Vasanti Patel& Shri Kirit Kamdar Department Represented By : Shri Ankush Kapoor

…expenses are of a revenue nature, the same should be allowed as deduction while computing the total income. The assessee also relied on the case of Bombay Burmah Trading Corporation Ltd. v. CIT (145 ITR 793) and CIT v. General Insurance Corporation of India (254 ITR 203). 69. After considering the submissions of the assessee, Ld. CIT(A) sustained the additions made by the Assessing Officer by observing that the expenditure had been incurred not for introduction of any capital but for the purpose of reduction of share capital, by relying on the decision of CIT v. Sakthi Finance [256 ITR 488 (Mad)] that the expen…

M/S Godrej Investment Pvt. Ltd. (Now Amalgamated With Godrej & Boyce Mfg. Co. Ltd., Mumbai vs. DCIT 14(1)(2), Mumbai

Accordingly, ground raised by the assessee is allowed

Bench: Shri Mahavir Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Godrej Investments Pvt. Ltd., V. Dcit – Circle – 14(1)(2) M/S. Kalyaniwall & Mistry Llp Aayakar Bhavan, M.K. Road Esplande House, 2Nd Floor Mumbai - 400020 29, Hazarimal Somani Marg Fort, Mumbai – 400001 Pan: Aaacg1395D (Appellant) (Respondent) Assessee By : Shri Farrokh Irani Department By : Shri Ambuselvam

…that any adhoc allocation of expenditure to the earning of dividend income is not justified: (a) CIT V/s. Mahendra Sobhagchand Shah-203 ITR, pg. 178 (Bom) (b) CIT V/s. United Collieries Ltd. ~ 203 ITR. Pg.857 (Cal.) (c) CIT V/s. Central Bank of India (Bom) — 264 ITR 522 (Bom) (d) CIT V/s. GIC of India (No.1) - 254 1TR 203 (Bom) (e) State Bank of Indore V/s. CIT - 275 ITR 23 (MP) vii) Considering what is stated in the foregoing, it is respectfully submitted that the aforesaid expenses have been incurred to maintain the status of the Appellant as a Company, and cannot be allocated towards the earning of dividend,…

State Bank of India, Mumbai vs. Addl CIT RG 2(2), Mumbai

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

Bench: Shri Rajesh Kumar, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.6482 /Mum/2010 (निर्धारण वर्ा / Assessment Year: 2000-01) State Bank Of India बिधम/ Acit Range-2(2) Mumbai. Financial Reporting, Vs. Compliance & Taxation Dept. Mumbai-400021. Ita. No. 6822/Mum/2010 (निर्धारण वर्ा / Assessment Year: 2000-01) Acit Range-2(2) बिधम/ State Bank Of India Mumbai. Financial Reporting, Vs. Compliance & Taxation Dept. Mumbai-400021. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs8577K (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Girish Dave/Urvi Mehta Revenue By: Shri Awungshi Gimson (Dr) सुनवाई की तारीख / Date Of Hearing: 12/12/2019 घोषणा की तारीख /Date Of Pronouncement: 06/03/2020 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue As Well As Assessee Have Filed The Above Mentioned Appeals Against The Order Dated 21.07.2010 Passed By The Commissioner Of Income Tax (Appeals)-5, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2000-01. Ita. No.6482/M/2010 6822/M/2010 A.Y. 2000-01 2. The Assessee Has Filed The Present Appeal Against The Order Dated 21.07.2010 Passed By The Commissioner Of Income Tax (Appeals)-05, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2000- 01. 3. The Assessee Has Raised The Following Grounds: -

…. It was further submitted that section 14A applies only when expenditure is actually incurred and there are numerous judicial decision in favour of assessee‟s Bank viz. CIT vs. Central Bank of India 264 ITR 522(Bom), CIT vs. General Insurance Corpn. Of India 254 ITR 203(Bom), Eicher Ltd. (101 TTJ 369) (Del), Dhanlakshmi Bank Ltd. vs. ACIT 12 SOT 625 (Cochin), CIT vs. Hero Cycles Ltd. 323 ITR 518) (Punjab & Haryana High Court). The ld. AR further argued that as per guidelines laid down by Reserve Bank of India, the bank has to invest interest free securities to maintain Statutory Liquidity Ratio (SLR). The rate o…

Hindustan Petroleum Corporation Ltd, Mumbai vs. Addl CIT RG 1(1), Mumbai

In the result we affirm the order of ld CIT(A) id affirmed and

Bench: Shri Shamim Yahya () & Shri Pawan Singh () Hindustan Petroleum The Addl.Cit, Range-1(1), Corporation Ltd., Mumbai 17, Jamashedji Tata Road, V/S Mumbai-400 020 Pan: Aaach1118B Appellant Respondent

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “H”, MUMBAI BEFORE SHRI SHAMIM YAHYA (ACCOUNTANT MEMBER) AND SHRI PAWAN SINGH (JUDICIAL MEMBER) Hindustan Petroleum The Addl.CIT, Range-1(1), Corporation Ltd., Mumbai 17, Jamashedji Tata Road, v/s Mumbai-400 020 PAN: AAACH1118B APPELLANT RESPONDENT ITA No. 5702& 5705 /Mum/2010 (Assessment Year : 2006-07) The Addl.CIT, Range-1(1), Hindustan Petroleum Corporation Mumbai Ltd,17, Jamashedji Tata Road, vs Mumbai-400 020 PAN: AAACH1118B APPELLANT RESPONDENT Assessee by Shri PJ Pardiwalla & Ms. Aarti Sathe Revenue by Shri B Sriniwas, CIT-DR Date of hearing 05-08-201…

Raptakos Brett and Co. Ltd, Mumbai vs. DCIT RG 5(3)(1), Mumbai

In the result, appeal of the assessee is partly allowed as indicated above

Bench: Shri C.N. Prasad & Shri Rajesh Kumarassessment Year: 2012-13

…fees and safe custody charges has not been disallowed as such expenses are not directly relatable to earning of dividend; they may be relatable to acquisition of shares but not to dividend being earned. For this view reliance is placed on CIT Vs GIC of India (254 ITR 203) (Born) which has held that expenses incurred on account of salary paid to staff, stamp duty, transfer fees, custody are not directly relatable to earning of dividend 7.3 We have thereafter identified the expenses that are indirectly incurred in relation to such investments by way of cost on the personnel of RBCL who are engaged in the day- to-d…

State Bank of India, Mumbai vs. ACIT Cir 2(2)

In the result, appeal of the revenue is dismissed

Bench: Shri G.S. Pannu & Shri Pawan Singhstate Bank Of India Acit Circle (2)(2), Financial Reporting, Compliance & Mumbai. Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent) Acit Circle (2)(2), State Bank Of India Mumbai. Financial Reporting, Compliance & Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent)

…was further submitted that section 14A applies only when expenditure is actually incurred and there are numerous judicial decision in favour of assessee’s Bank viz. CIT vs. Central Bank of India 264 ITR 522(Bom), CIT vs. General Insurance Corpn. Of India 254 ITR 203(Bom), Eicher Ltd. (101 TTJ 369) (Del), Dhanlakshmi Bank Ltd. vs. ACIT 12 SOT 625 (Cochin), CIT vs. Hero Cycles Ltd. 323 ITR 518) (Punjab & Haryana High Court). The ld. AR further argued that as per guidelines laid down by Reserve Bank of India, the bank has to invest interest free securities to maintain Statutory Liquidity Ratio (SLR). The r…

ACIT Cir 2(2), Mumbai vs. State Bank of India, Mumbai

In the result, appeal of the revenue is dismissed

Bench: Shri G.S. Pannu & Shri Pawan Singhstate Bank Of India Acit Circle (2)(2), Financial Reporting, Compliance & Mumbai. Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent) Acit Circle (2)(2), State Bank Of India Mumbai. Financial Reporting, Compliance & Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent)

…was further submitted that section 14A applies only when expenditure is actually incurred and there are numerous judicial decision in favour of assessee’s Bank viz. CIT vs. Central Bank of India 264 ITR 522(Bom), CIT vs. General Insurance Corpn. Of India 254 ITR 203(Bom), Eicher Ltd. (101 TTJ 369) (Del), Dhanlakshmi Bank Ltd. vs. ACIT 12 SOT 625 (Cochin), CIT vs. Hero Cycles Ltd. 323 ITR 518) (Punjab & Haryana High Court). The ld. AR further argued that as per guidelines laid down by Reserve Bank of India, the bank has to invest interest free securities to maintain Statutory Liquidity Ratio (SLR). The r…

DCIT Cir 7(1) vs. M/S Novartis India Ltd

…आयकर अपीलीय आयकर अपीलीय अिधकरण अिधकरण, मुंबई मुंबई “आई आई” खंडपीठ खंडपीठ आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण मुंबई मुंबई आई आई खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“I”Bench Mumbai सव"ी राजे"",लेखा सद"य एवं सी. एन. "साद, "याियक सद"य Before S/Sh.Rajendra,Accountant Member and C. N. Prasad,Judicial Member आयकर अपील सं./I.T.A./5238/Mum/2003 ,िनधा"रण वष" /Assessment Year:1997-1998 आयकर अपील सं./I.T.A./6224/Mum/2004 ,िनधा"रण वष" /Assessment Year:1998-1999 आयकर अपील सं./I.T.A./6225/Mum/2004 ,िनधा"रण वष" /Assessment Year:1999-2000 Novartis India Ltd. ACIT-Circle-7(1) (Formerly known as Hindustan Ciba Gieg…