Dalal Broacha Stock Broking Pvt. Ltd. v. Addl.CIT, Range-4(1), Mumbai

131 ITD 36Income Tax Appellate Tribunal2011#8732 most cited

What is Dalal Broacha Stock Broking Pvt. Ltd. v. Addl.CIT, Range-4(1), Mumbai authority for?

Payments made as bonus or commission to directors, if in lieu of dividends and not for services rendered, are not deductible under Section 36(1)(ii) of the Income Tax Act.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2022.

Also referred to as

Dalal Broacha Stock Broking · Section 36(1)(ii) · bonus to directors · commission to directors · in lieu of dividend · not deductible · ITAT Mumbai Special Bench

Judgments citing Dalal Broacha Stock Broking Pvt. Ltd. v. Addl.CIT, Range-4(1), Mumbai

ACIT, Central Circle, Vapi vs. M/S. Shah Virchand Govanji Jewellers Pvt. Ltd, Surat

In the result, ground No. 2 of appeal raised by revenue is also dismissed

ITA 176/SRT/2020[2012-13]Status: DisposedITAT Surat08 Sept 2022AY 2012-13

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

For Respondent: “1. On the facts and circumstances o
Section 254(1)Section 68

…the addition under Section 36(1)(ii) of Rs. 3,28,36,400, without considering the judgment of the Special Bench of Hon’ble Income-tax Appellate Tribunal in the case of Dalal Broacha Stock Broking Pvt. Ltd. Vs Addl.CIT (2011) 10 ITR (Trib) 357 (Mum) (SB); (2011 131 ITD 36 (Mumbai) (SB)?” 9. The Hon’ble High Court after considering the contention of both the parties, dismissed the appeal of revenue by holding that payment of commission was made by the assesse company to its director have been allowed for five continuous assessment years. Nothing has been pointed out to show that the position has changed in the year…

ACIT, Central Circle, Vapi vs. M/S. Shah Virchand Govanji Jewellers Pvt. Ltd, Surat

In the result, ground No. 2 of appeal raised by revenue is also dismissed

ITA 175/SRT/2020[2010-11]Status: DisposedITAT Surat08 Sept 2022AY 2010-11

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

For Respondent: “1. On the facts and circumstances o
Section 254(1)Section 68

…the addition under Section 36(1)(ii) of Rs. 3,28,36,400, without considering the judgment of the Special Bench of Hon’ble Income-tax Appellate Tribunal in the case of Dalal Broacha Stock Broking Pvt. Ltd. Vs Addl.CIT (2011) 10 ITR (Trib) 357 (Mum) (SB); (2011 131 ITD 36 (Mumbai) (SB)?” 9. The Hon’ble High Court after considering the contention of both the parties, dismissed the appeal of revenue by holding that payment of commission was made by the assesse company to its director have been allowed for five continuous assessment years. Nothing has been pointed out to show that the position has changed in the year…

Src Aviation Pvt.Ltd vs. Assisstant Commissioner of Income Tax & Anr

ITA/492/2019HC Delhi13 Apr 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE DINESH KUMAR SHARMA

Section 15Section 260ASection 36

…Ltd v. DCIT 365 ITR 312 (Del) and CIT vs. M/s Bony Polymers (P) Ltd. ITA Nos.69/2011, 536/2011, 611/2011 & 1298/2011 order dated 18.01.2012. Learned counsel submitted that ITAT has wrongly relied upon Dalal & Brocha Stock Broking Pvt. Ltd. v. ACIT (2011) 131 ITD 36 (Mum)(SB). 9. The learned counsel submitted that the SLP filed by the department in the case of CIT vs. M/s Bony Polymers (P) Ltd. was dismissed by the Supreme Court vide order dated 24.08.2012. This is a digitally signed Judgement. NEUTRAL CITATION NO: 2022/DHC/001342 ITA 492/2019 & ITA 41/2020…

Mehta Equities Limited, Mumbai vs. DCIT -4 (2) (2), Mumbai

In the result, this appeal by the assessee is partly allowed for statistical purposes

ITA 5850/MUM/2019[2012-13]Status: DisposedITAT Mumbai14 Oct 2020AY 2012-13
Section 115JSection 143(3)Section 14ASection 36

…assessee company and said amount of Rs. 2.5 lakhs each, if not paid to them as bonus, was payable as dividend to the two shareholders. The AO has relied on the decision of the ITAT, Mumbai Special Bench in the case of M/s Dalai Broacha Stock Broking Pvt. Ltd. 131 ITD 36. 18. The learned CIT(A) noted assessee’s pleas as under :- “The Assessing Officer has made a disallowance of a sum of Rs 5,00,000, being bonus of Rs 2,50,000 each paid to the directors, Mrs. Nidhi Mehta and Mr. Rakesh Mehta, by invoking the provisions of section 36(l)(ii), holding that such payment of bonus are in lieu of dividends and further, h…

Mdindia Healthcare Services (Tpa) Pvt.Ltd, Pune vs. Income-Tax Officer, Pune

In the result, the appeal of assessee is allowed

ITA 1366/PUN/2017[2012-13]Status: DisposedITAT Pune19 Aug 2019AY 2012-13

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.1366/Pun/2017 यििाारण वषा / Assessment Year : 2012-13 Mdindia Healthcare Services (Tpa) Pvt. Ltd. (Now Known As Mdindia Health Insurance Tpa Pvt. Ltd.) S.No.46/1, E-Space Building, A-2 Wing, 3Rd Floor, Pune Nagar Road, Vadgaon Sheri, अऩीऱाथी/Appellant Pune – 411014 …. Pan: Aadcm4828N Vs. The Income Tax Officer, …. प्रत्यथी / Respondent Ward 14(2), Pune

For Appellant: Shri Kishor PhadkeFor Respondent: Shri Pankaj Garg
Section 143(3)Section 36(1)(ii)Section 40A(2)Section 40A(2)(b)

…IT (2012) 341 ITR 563 (Del). In view of the dictate of the Hon’ble High Court of Delhi, it was held that reliance placed upon by the Revenue on the ratio laid down by Mumbai Special Bench of Tribunal in Dalal Broacha Stock Broking (P) Ltd. Vs. Addl.CIT (2011) 131 ITD 36 (Mum) (SB) was misplaced. It may be pointed out that the Assessing Officer in present case had also relied on the decision of Mumbai Special Bench of Tribunal and disallowed the claim in the hands of assessee. However, applying the dictate of Hon’ble High Court of Delhi in AMD Metplast 8 Pvt. Ltd. Vs. DCIT (supra), we hold that there is no merit…

DCIT, New Delhi vs. Mr. Bmr Business Solutions Pvt. Ltd., Gurgaon

In the result, both the 02 appeals filed by the Revenue stand

ITA 2991/DEL/2016[2012-13]Status: DisposedITAT Delhi10 May 2019AY 2012-13

Bench: Sh. H.S. Sidhu & Shri O.P. Kant

Section 142(1)Section 143(1)Section 143(2)Section 36(1)(ii)

…under:- “In the above case, it is humbly submitted that the following decisions may be considered with regard to Section 36(1 )(ii) of I.T.Act: i) Order of Special Bench, Hon’ble ITAT, Mumbai, in case of M/s Dalai & Broacha Stock Broking (P) Ltd.[2011] 131 ITD 36, in ITA No. 5792 (Mum) of 2009 (Copy enclosed) wherein payment to commission to Directors have been held to be lieu of Dividend and hence not deductible u/s 36(1)(ii). ii) Order of Hon’ble ITAT Bench, Chandigarh, dtd. 09.12.2014 in case of Travelmatics(P) Ltd. Vs. Deptt. Of Income tax, in ITA No. 549/CHD/2010(Copy enclosed):- wherein paymen…

DCIT, New Delhi vs. Mr. Bmr Business Solutions Pvt. Ltd., Gurgaon

In the result, both the 02 appeals filed by the Revenue stand

ITA 2990/DEL/2016[2011-12]Status: DisposedITAT Delhi10 May 2019AY 2011-12

Bench: Sh. H.S. Sidhu & Shri O.P. Kant

Section 142(1)Section 143(1)Section 143(2)Section 36(1)(ii)

…under:- “In the above case, it is humbly submitted that the following decisions may be considered with regard to Section 36(1 )(ii) of I.T.Act: i) Order of Special Bench, Hon’ble ITAT, Mumbai, in case of M/s Dalai & Broacha Stock Broking (P) Ltd.[2011] 131 ITD 36, in ITA No. 5792 (Mum) of 2009 (Copy enclosed) wherein payment to commission to Directors have been held to be lieu of Dividend and hence not deductible u/s 36(1)(ii). ii) Order of Hon’ble ITAT Bench, Chandigarh, dtd. 09.12.2014 in case of Travelmatics(P) Ltd. Vs. Deptt. Of Income tax, in ITA No. 549/CHD/2010(Copy enclosed):- wherein paymen…

M/S Abaxial Architects P. Ltd., New Delhi vs. ACIT, New Delhi

ITA 1233/DEL/2016[2012-13]Status: DisposedITAT Delhi09 Apr 2019AY 2012-13

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri P.C. Yadav, AdvocateFor Respondent: Ms. Rinku Singh, Senior DR
Section 115Section 36(1)(ii)Section 37(1)(ii)

…link between bonus paid and services rendered; and that there is no evidence if any specific services have been rendered by Ms. Suparna Bhalla and relied upon the decision of Special Bench of the ITAT in M/s. Dalal & Broacha Stock Broking (P) Ltd. – (2011) 131 ITD 36 and coordinate Bench of the Tribunal in Travelmatics (P) Ltd. vs. DCIT in ITA No.549/Chd/2010 dated 09.12.2014. 8. Undisputedly, Ms. Suparna Bhalla has also been paid salary of Rs.6,00,000/- during the year under assessment who is holding 50% shares in the assessee company and is also entitled to receive profit or dividend. It is also not in disp…

M/S. the Alchemists Ark Private Ltd., Pune vs. Income-Tax Officer

In the result, appeal of the assessee is allowed for statistical

ITA 755/PUN/2016[2011-12]Status: DisposedITAT Pune09 May 2018AY 2011-12

Bench: Shri D.Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं. / Ita No.755/Pun/2016 अपील िनधा"रण िनधा"रण वष" िनधा"रण िनधा"रण वष" वष" / Assessment Year : 2011-12 वष"

For Appellant: Shri Suhas BoraFor Respondent: Shri Ajay Modi, JCIT
Section 143(3)Section 36(1)(ii)Section 37(1)

…of Hon’ble Delhi High Court in the case of Shriram Pistons and Rings Ltd. Vs. CIT dated 29-09-2008. Eventually, the AO relied on the Special Bench decision of the Mumbai Bench of the Tribunal in the case of M/s. Dalal Broacha Stock Broking Pvt. Ltd. Vs. ACIT 131 ITD 36 (ITAT Mumbai-SB) for the proposition that the commission paid to the Director attracts the provisions of section 36(1)(ii) of the Act. AO also relied on the judgment of Hon’ble Bombay High Court in the case of M/s. Loyal Motor Services Co. Ltd. 14 ITR 647 (Bom.) and held that the facts are comparable. Heavily relying on the judgment of Special Be…

DCIT 4(1)(1), Mumbai vs. Dalal Barocha Stock Broking P.Ltd, Mumbai

ITA 616/MUM/2015[2007-08]Status: DisposedITAT Mumbai07 Apr 2017AY 2007-08

Bench: Shri B.R Baskaran, Am & Shri Ravish Sood, Jm आयकर अपील सं./ I.T.A. No.616/Mum/2015 (निर्धारण वर्ा / Assessment Year: 2007-08) Dcit 4(1)(1), Dalal Barocha Stock Broking P. Ltd. R.No. 640, 6Th Floor, 506, Maker Chambers, बिधम/ Aaykar Bhawan, V 221 Nariman Point, M.K Road, Vs. Mumbai – 400 021. Mumbai – 400 020. सससससस सससस सस./सससससस सस./Pan/Gir No. Aaacd5662J (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) : अपीलार्थी की ओर से /Appellant By : Shri Purshottam Kumar प्रत्यर्थी की ओर से/Respondentby : Shri. Vijay Mehta सुनवाई की तारीख / : 10/01/2017 Date Of Hearing घोषणा की तारीख / : 07/04/2017 Date Of Pronouncement

For Appellant: Shri Purshottam KumarFor Respondent: Shri. Vijay Mehta
Section 154Section 250(6)Section 36(1)(ii)Section 37(1)

…P a g e | 1 IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, MUMBAI BEFORE SHRI B.R BASKARAN, AM AND SHRI RAVISH SOOD, JM आयकर अपील सं./ I.T.A. No.616/Mum/2015 (निर्धारण वर्ा / Assessment Year: 2007-08) DCIT 4(1)(1), Dalal Barocha Stock Broking P. Ltd. R.No. 640, 6th Floor, 506, Maker Chambers, बिधम/ Aaykar Bhawan, V 221 Nariman Point, M.K Road, Vs. Mumbai – 400 021. Mumbai – 400 020. सससससस सससस सस./सससससस सस./PAN/GIR No. AAACD5662J (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) : अपीलार्थी की ओर से /Appellant by : Shri Purshottam Kumar प्रत्यर्थी की ओर से/Respondentby : Shri. Vijay Mehta सुनवाई की तारीख / :…

Kshitij Interiors P.Ltd, Mumbai vs. DCIT 8(2), Mumbai

ITA 7367/MUM/2013[2010-11]Status: DisposedITAT Mumbai01 Jan 2016AY 2010-11
For Appellant: Shri Haridas BhatFor Respondent: Shri Asghar Zain
Section 143(3)Section 254(1)Section 36(1)(ii)Section 40

…आयकर अपीलीय अिधकरण,” ए” खंडपीठ मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-“A” BENCH सव"ी जोिग"दर"सह , "याियक सद"य एवं एवं राजे"", लेखा सद"य एवं एवं Before S/Sh. Joginder Singh,Judicial Member & Rajendra,Accountant Member आयकर आयकर अपील अपील संसंसंसं/.ITA/7367/Mum/2013,िनधा"रण िनधा"रण वष" वष"/Assessment Year :2010-11 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" M/s. Kshitij Interiors Pvt. Ltd. Dy. CIT-8(2) 210, New Apollo Estate Premises Aayakar Bhavan, M.K. Road Co-.Op Society Ltd., Old Nagardas Vs Mumbai-400 020. Road, 23, Mogra Village, Andheri (E) Mumbai-400 069. PAN:AABCK 8174 D (अपीलाथ" /Appellant) (""यथ…

V.S. International P.Ltd, Mumbai vs. Asst CIT 4(3), Mumbai

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

ITA 1581/MUM/2013[2009-10]Status: DisposedITAT Mumbai11 Dec 2015AY 2009-10

Bench: Shri N.K. Billaiya & Shri Pawan Singhआयकर अपील सं/ I.Ta No. 1581/Mum/2013 ("नधा"रण वष" / Assessment Year:2009-10 बनाम/ M/S. V.S. International The Acit-4(3), Pvt. Ltd., Mumbai Vs. 237, Sardar Griha Bldg., 198, Lokmanya Tilak Road, Mumbai-400 002 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacv 7292C (अपीलाथ" /Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant By: Shri Aarti Vissanji ""यथ" क" ओर से/Respondent By: Shri Vivek Batra सुनवाई क" तार"ख / Date Of Hearing :07.12.2015 घोषणा क" तार"ख /Date Of Pronouncement :11.12.2015 आदेश / O R D E R

For Appellant: Shri Aarti VissanjiFor Respondent: Shri Vivek Batra
Section 36(1)(ii)

…the assessee reiterated what has been stated before the lower authorities. It is the say of the Ld. Counsel that the decision relied upon by the Revenue authorities being the Special Bench decision in the case of Dalal Broacha Stock Broking Pvt. Ltd. Vs ACIT 131 ITD 36 is misplaced and do not apply on the facts of the case for the simple reason that in that case, there was no evidence to show that any services were rendered by the Directors. The Ld. Counsel stated that the facts of the case in hand are clearly supported by the decision of the Hon’ble High Court of Delhi in the case of CIT Vs Career Launcher Indi…

Dalal Broacha Stock Broking Pvt. Ltd. v. Addl.CIT, Range-4(1), Mumbai (131 ITD 36) — Cited in 12 Judgments | BharatTax