Dhanuka & Sons. v. CIT

India Glycols Limited, Kolkata vs. JCIT, Range-12, Kolkata

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

Bench: Shri S. S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.114/Kol/2017 ("नधा"रणवष" / Assessment Year: 2011-12) India Glycols Limited Vs. Jcit, Range-12, Kolkata

…d by the ld AO, on the decision of Hon’ble ITAT, Kolkata in the case of Champion Commercial Co. Lt,. in ITA No.644/Kol/2012 wherein the Hon’ble ITAT, Kolkata had relied on the observation of Hon’ble High Court of Bombay, in the case of Dhanuka & sons vs. CIT (339 ITR 319) which is as follows: 9. In the case before us, there is no dispute that part of the income of the assessee from its business is from dividend which is exempt from tax whereas the assessee was unable to produce any material before the authorities below showing the source from which such shares were acquired………………….. 10. In our opinion, the mere…

DCIT, Cir-9(1), Kolkata vs. M/S. Damodar Valley Corporation, Kolkata

In the result, the appeal of revenue is dismissed

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…ee to explain as to why disallowance should not be made as per provision of Rule 8D of the Rules. The AO, however, by referring to the decision of the Hon’ble Calcutta High Court 6 Damodar Valley Corporation, AY 2013-14 in the case of Dhanuka & Sons Vs. CIT (339 ITR 319) rejected the assessee’s contention and computed the disallowance inconformity with Rule 8D of the I T. Rules, 1962. Accordingly, the AO disallowed Rs.31,49,02,210/- out of interest paid under Rule 8D(2)(ii) of the Rules and Rs.5,52,69,466/- under Rule 8D(2)(iii) of the Rules. After deducting the suo moto disallowance of Rs.14,99,502/- the additi…

DCIT, Cir-5, Kolkata vs. M/S Essel Mining & Industries Ltd., Kolkata

In the result, the appeals of assessee are partly allowed and that of revenue are dismissed

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…his issue is also covered by the decision of the Hon’ble Jurisdictional High Court in the case of Pr.CIT vs Rasoi Ltd in G.A.No. 633 of 2016 . The Jurisdictional High Court after considering the judgement of the co-ordinate bench in Dhanuka & Sons reported in 339 ITR 319 (Cal) had observed as under:- “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee’s own funds were far in excess of the average total investments. There could not be any presumption of utilization of borrowed funds. Hence…

Essel Mining & Industries Ltd., Kolkata vs. DCIT, Cir-5, Kolkata

In the result, the appeals of assessee are partly allowed and that of revenue are dismissed

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…his issue is also covered by the decision of the Hon’ble Jurisdictional High Court in the case of Pr.CIT vs Rasoi Ltd in G.A.No. 633 of 2016 . The Jurisdictional High Court after considering the judgement of the co-ordinate bench in Dhanuka & Sons reported in 339 ITR 319 (Cal) had observed as under:- “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee’s own funds were far in excess of the average total investments. There could not be any presumption of utilization of borrowed funds. Hence…

D.C.I.T Cir - 5, Kolkata vs. M/S Essel Mining & Industries Ltd., Kolkata

In the result, the appeals of assessee are partly allowed and that of revenue are dismissed

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…his issue is also covered by the decision of the Hon’ble Jurisdictional High Court in the case of Pr.CIT vs Rasoi Ltd in G.A.No. 633 of 2016 . The Jurisdictional High Court after considering the judgement of the co-ordinate bench in Dhanuka & Sons reported in 339 ITR 319 (Cal) had observed as under:- “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee’s own funds were far in excess of the average total investments. There could not be any presumption of utilization of borrowed funds. Hence…

Essel Mining & Industries Limited, Kolkata vs. D.C.I.T Cir - 5, Kolkata

In the result, the appeals of assessee are partly allowed and that of revenue are dismissed

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…his issue is also covered by the decision of the Hon’ble Jurisdictional High Court in the case of Pr.CIT vs Rasoi Ltd in G.A.No. 633 of 2016 . The Jurisdictional High Court after considering the judgement of the co-ordinate bench in Dhanuka & Sons reported in 339 ITR 319 (Cal) had observed as under:- “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee’s own funds were far in excess of the average total investments. There could not be any presumption of utilization of borrowed funds. Hence…

ACIT, Central Circle-3(3), Kolkata vs. Smt. Madhu Devi Saraf, Kolkata

In the result, the appeal filed by the revenue is allowed for statistical purpose

Bench: : Shri Waseem Ahmed & Shri S.S.Viswanethra Ravia. Y 2013-14

…to be decided as to whether the CIT-A justified in deleting the impugned addition made u/s. 14A r.w.r 8D of the IT Rules, 1962 without appreciating the decision of the Hon’ble Jurisdictional High Court in the case of Dhanuka & Sons Vs. CIT reported in (2011) 339 ITR 319 (Cal) in the facts and circumstances of the case. 3. During the assessment proceedings the AO found that the assessee invested large fund in securities, income on which is not chargeable to tax. On perusal of accounts of assessee the AO found that the assessee has earned dividend of Rs. 2,39,34,566/- and interest on PPF of Rs.7,46,233/- and LTCG…

Kesoram Industries Limited, Kolkata vs. DCIT, Circle-5(1), Kolkata

In the result the revenue’s appeals for A

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…pheld by this Tribunal. We rely on the judgment of the Hon’ble Calcutta High Court in the case of CIT vs Rasoi Ltd. (supra) wherein the Hon’ble High Court taking note of the judgment passed by the co-ordinate Bench of the Calcutta High Court in Dhanuka & Sons 339 ITR 319 held as under: ITA No. 1188/Kol/2016 ITA No. 505/Kol/2017 Kesoram Industries Ltd., AYs- 2008-09 & 2009-10 “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee's own funds were far in excess of the average total investments…

Kesoram Industries Ltd., Kolkata vs. DCIT, Cir-5, Kolkata

In the result the revenue’s appeals for A

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…pheld by this Tribunal. We rely on the judgment of the Hon’ble Calcutta High Court in the case of CIT vs Rasoi Ltd. (supra) wherein the Hon’ble High Court taking note of the judgment passed by the co-ordinate Bench of the Calcutta High Court in Dhanuka & Sons 339 ITR 319 held as under: ITA No. 1188/Kol/2016 ITA No. 505/Kol/2017 Kesoram Industries Ltd., AYs- 2008-09 & 2009-10 “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee's own funds were far in excess of the average total investments…

Kesoram Industries Limited, Kolkata vs. Addl C.I.T RG - 5, Kolkata

In the result the revenue’s appeals for A

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…pheld by this Tribunal. We rely on the judgment of the Hon’ble Calcutta High Court in the case of CIT vs Rasoi Ltd. (supra) wherein the Hon’ble High Court taking note of the judgment passed by the co-ordinate Bench of the Calcutta High Court in Dhanuka & Sons 339 ITR 319 held as under: ITA No. 1188/Kol/2016 ITA No. 505/Kol/2017 Kesoram Industries Ltd., AYs- 2008-09 & 2009-10 “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee's own funds were far in excess of the average total investments…

D.C.I.T Cir - 5, Kolkata vs. M/S Kesoram Industries Limited, Kolkata

In the result the revenue’s appeals for A

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…pheld by this Tribunal. We rely on the judgment of the Hon’ble Calcutta High Court in the case of CIT vs Rasoi Ltd. (supra) wherein the Hon’ble High Court taking note of the judgment passed by the co-ordinate Bench of the Calcutta High Court in Dhanuka & Sons 339 ITR 319 held as under: ITA No. 1188/Kol/2016 ITA No. 505/Kol/2017 Kesoram Industries Ltd., AYs- 2008-09 & 2009-10 “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee's own funds were far in excess of the average total investments…

ACIT, Circle-5, Kolkata vs. M/S Kesoram Industries. Ltd, Kolkata

In the result the revenue’s appeals for A

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…pheld by this Tribunal. We rely on the judgment of the Hon’ble Calcutta High Court in the case of CIT vs Rasoi Ltd. (supra) wherein the Hon’ble High Court taking note of the judgment passed by the co-ordinate Bench of the Calcutta High Court in Dhanuka & Sons 339 ITR 319 held as under: ITA No. 1188/Kol/2016 ITA No. 505/Kol/2017 Kesoram Industries Ltd., AYs- 2008-09 & 2009-10 “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee's own funds were far in excess of the average total investments…

Kesoram Industries Ltd., Kolkata vs. Add.CIT, Range-5, Kolkata

In the result the revenue’s appeals for A

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…pheld by this Tribunal. We rely on the judgment of the Hon’ble Calcutta High Court in the case of CIT vs Rasoi Ltd. (supra) wherein the Hon’ble High Court taking note of the judgment passed by the co-ordinate Bench of the Calcutta High Court in Dhanuka & Sons 339 ITR 319 held as under: ITA No. 1188/Kol/2016 ITA No. 505/Kol/2017 Kesoram Industries Ltd., AYs- 2008-09 & 2009-10 “It appears for both the assessment years the Appellate Authority held that there was no finding of direct nexus between the borrowed fund and investment in shares. The assessee's own funds were far in excess of the average total investments…

M/S Maruti Traders & Investors, Kolkata vs. ACIT, Circle-35, Kolkata

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

Bench: Hon’Ble Shri M.Balaganesh, Am & Hon’Ble Shri S.S.Viswanethra Ravi, Jm] I.T.A No. 2204/Kol/2016 Assessment Year : 2012-13 M/S Maruti Traders & Investors -Vs- Acit, Circle-35, Kolkata [Pan: Aaqfm 9294 C ] (Appellant) (Respondent)

…issions on 23.02.2015 as under: 3 M/s Maruti Traders & Investors. A.Yr. 2012-13 The ld. AO however not being convinced with these arguments placed reliance on the decision of Hon’ble Jurisdictional High Court in the case of Dhanuka & Sons vs. CIT reported in 339 ITR 319 and proceeded to make disallowance u/s 14A read with Rule 8D of the Rules by applying the third limb of Rule 8D(2) and arrived at the disallowance figure of Rs. 38,93,332/- and added the same in the assessment. 4. The Ld. CIT(A) observed that the assessee firm is engaged only in the business of share trading, commodity derivatives, currency deri…

ACIT, Central Cirlce-3(3), Kolkata vs. Smt Madhu Devi Saraf, Kolkata

In the result, the appeal of the revenue is dismissed

…. 2. The only issue raised in the appeal whether the CIT-A was justified in deleting the addition made u/s. 14A r.w.r 8D without considering the decision of Hon’ble Jurisdictional High Court of Calcutta in the case of Dhanuka & Sons Vs. CIT reported in (2011) 339 ITR 319 (Cal)in the facts and circumstances of the case. 3. At the outset, the ld. AR submits that the issue raised in the appeal by the revenue is against the deletion of disallowance made by the AO by invoking the provisions of Rule 8D(2)(i),(ii) and (iii) of the Income Tax Rules 1962. He further submits that the issue in hand is covered by the order…

M/S Chengmari Tea Co. Ltd, Kolkata vs. DCIT, Cir-4, Kolkata

In the result the appeal by the assessee is partly allowed

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ] Assessment Year : 2011-12

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH ‘C’ KOLKATA [Before Hon’ble Shri N.V.Vasudevan, JM & Shri Waseem Ahmed, AM ] Assessment Year : 2011-12 M/s Chengmari Tea Co.Ltd. -versus- D.C.I.T., Circle-4, Kolkata Kolkata (PAN:AABCC 0672 Q) (Appellant) (Respondent) For the Appellant: Shri S.M.Surana, Advocate For the Respondent: Shri Amitava Bhattacharyya, Addl. CIT, Sr.DR Date of Hearing : 08.01.2018. Date of Pronouncement : 02.02.2018. ORDER PER N.V.VASUDEVAN, JM: This is an appeal by the Assessee against the order dated 12.05.2016 of C.I.T- (A)-2, Kolkata relating to A.Y.2011-12. 2. Ground Nos. 1,5 and 6…

ACIT, Ltu-2, Kolkata vs. M/S Century Plyboards(I), Ltd, Kolkata

In the result, all appeals of Revenue,( that is, ITA No

Bench: Shri N.V. Vasudevan, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1633, 1634 & 1635/Kol/2016 (िनधा"रणवष" / Assessment Years: 2009-10, 2011-12 & 2012-13) Acit, Ltu-2, Kolkata Vs. M/S Century Plyboards (I) Ltd. 6Th Floor, Large Tax Payer Unit, 180, 6, Lyons Range, Kolkata – 700 Shantipally, Kolkata – 700 107. 001. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aabcc 1682 J (Appellant) .. (Respondent) Appellant By :Md. Usman, Cit(Dr) Respondent By :Shri D. S. Damle, Fca सुनवाईकीतारीख/ Date Of Hearing : 06/12/2017 घोषणाकीतारीख/Date Of Pronouncement : 25/01/2018 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Three Appeals Filed By The Revenue, Pertaining To Assessment Years 2009-10, 2011-12 & 2012-13, Are Directed Against The Orderspassed By The Ld. Commissioner Of Income Tax (Appeals), Which In Turn Arise Out Of Assessment Orders Passed By The Assessing Officerunder Section 143(3)/263 Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’). 2. Since, These Three Appeals Relate To The Same Assessee, Different Assessment Years, Identical Issues Are Involved, Therefore, These Have Been Clubbed & Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity. 3. First We Take Revenue’S Appeal In Ita No.1633/Kol/2016, A.Y. 2009- 10. M/S Century Plyboards (I) Ltd.

…the assessee failed to discharge the onus lied on it. Therefore, AO had to make the disallowance as per the Rule 8D of the Rule. Ld. DR in this connection relied on the judgment of Hon'ble jurisdictional High Court in the case of Dhanuka and Sons reported in 339 ITR 319. Ld. DR vehemently relied on the order of AO and he requested the Bench to confirm the same. On the other hand, Ld. AR before us submitted that AO in the assessment year 2009-10 has admitted the fact that no borrowed fund has been utilized for the purpose of making the impugned investment. Ld. AR in support of assessee’s claim has relied on the a…

ACIT, Ltu-2, Kolkata vs. M/S Century Plyboards(I), Ltd, Kolkata

In the result, all appeals of Revenue,( that is, ITA No

Bench: Shri N.V. Vasudevan, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1633, 1634 & 1635/Kol/2016 (िनधा"रणवष" / Assessment Years: 2009-10, 2011-12 & 2012-13) Acit, Ltu-2, Kolkata Vs. M/S Century Plyboards (I) Ltd. 6Th Floor, Large Tax Payer Unit, 180, 6, Lyons Range, Kolkata – 700 Shantipally, Kolkata – 700 107. 001. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aabcc 1682 J (Appellant) .. (Respondent) Appellant By :Md. Usman, Cit(Dr) Respondent By :Shri D. S. Damle, Fca सुनवाईकीतारीख/ Date Of Hearing : 06/12/2017 घोषणाकीतारीख/Date Of Pronouncement : 25/01/2018 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Three Appeals Filed By The Revenue, Pertaining To Assessment Years 2009-10, 2011-12 & 2012-13, Are Directed Against The Orderspassed By The Ld. Commissioner Of Income Tax (Appeals), Which In Turn Arise Out Of Assessment Orders Passed By The Assessing Officerunder Section 143(3)/263 Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’). 2. Since, These Three Appeals Relate To The Same Assessee, Different Assessment Years, Identical Issues Are Involved, Therefore, These Have Been Clubbed & Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity. 3. First We Take Revenue’S Appeal In Ita No.1633/Kol/2016, A.Y. 2009- 10. M/S Century Plyboards (I) Ltd.

…the assessee failed to discharge the onus lied on it. Therefore, AO had to make the disallowance as per the Rule 8D of the Rule. Ld. DR in this connection relied on the judgment of Hon'ble jurisdictional High Court in the case of Dhanuka and Sons reported in 339 ITR 319. Ld. DR vehemently relied on the order of AO and he requested the Bench to confirm the same. On the other hand, Ld. AR before us submitted that AO in the assessment year 2009-10 has admitted the fact that no borrowed fund has been utilized for the purpose of making the impugned investment. Ld. AR in support of assessee’s claim has relied on the a…

ACIT, Ltu-2, Kolkata vs. M/S Century Plyboards(I), Ltd, Kolkata

In the result, all appeals of Revenue,( that is, ITA No

Bench: Shri N.V. Vasudevan, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1633, 1634 & 1635/Kol/2016 (िनधा"रणवष" / Assessment Years: 2009-10, 2011-12 & 2012-13) Acit, Ltu-2, Kolkata Vs. M/S Century Plyboards (I) Ltd. 6Th Floor, Large Tax Payer Unit, 180, 6, Lyons Range, Kolkata – 700 Shantipally, Kolkata – 700 107. 001. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aabcc 1682 J (Appellant) .. (Respondent) Appellant By :Md. Usman, Cit(Dr) Respondent By :Shri D. S. Damle, Fca सुनवाईकीतारीख/ Date Of Hearing : 06/12/2017 घोषणाकीतारीख/Date Of Pronouncement : 25/01/2018 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Three Appeals Filed By The Revenue, Pertaining To Assessment Years 2009-10, 2011-12 & 2012-13, Are Directed Against The Orderspassed By The Ld. Commissioner Of Income Tax (Appeals), Which In Turn Arise Out Of Assessment Orders Passed By The Assessing Officerunder Section 143(3)/263 Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’). 2. Since, These Three Appeals Relate To The Same Assessee, Different Assessment Years, Identical Issues Are Involved, Therefore, These Have Been Clubbed & Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity. 3. First We Take Revenue’S Appeal In Ita No.1633/Kol/2016, A.Y. 2009- 10. M/S Century Plyboards (I) Ltd.

…the assessee failed to discharge the onus lied on it. Therefore, AO had to make the disallowance as per the Rule 8D of the Rule. Ld. DR in this connection relied on the judgment of Hon'ble jurisdictional High Court in the case of Dhanuka and Sons reported in 339 ITR 319. Ld. DR vehemently relied on the order of AO and he requested the Bench to confirm the same. On the other hand, Ld. AR before us submitted that AO in the assessment year 2009-10 has admitted the fact that no borrowed fund has been utilized for the purpose of making the impugned investment. Ld. AR in support of assessee’s claim has relied on the a…

DCIT, Circle-1, Siliguri vs. M/S Gangadhar Developers Pvt. Ltd., Siliguri

In the result, the appeals of the revenue for assessment years 2008-09, 2009-10

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Hon’Ble Shri M.Balaganesh, Am ] I.T.A Nos. 1533-1536/Kol/2016 Assessment Years : 2008-09, 2009-10, 2010-11 & 2012-13 Respectively Dcit, Circle-1, Siliguri -Vs- M/S Gangadhar Developers Pvt. Ltd. [Pan: Aaccg 0424 H] (Appellant) (Respondent)

…urred for earning tax free income in cases where assessee do not maintain separate accounts for the investment and other expenditure incurred for earning tax free income. (c ) Reliance is placed on the ratio of judgment in the case of Dhanuka & Sons vs. CIT [244 CTR 511 (Cal)]/ (d) Chem Invest Ltd. vs. ITO, ITAT No. 87/Del/2008, (2009) 317 ITR (At 86 (Delhi) (SB): It was held there is dividend income or not interest paid for on borrowing for trading in shares cannot be allowed. (e) DCIT vs. Philips Carbon Black Ltd., Kolkata ‘B’ (Third Member) (2012) 146 TTJ (Kol)(TM) 175. 2. The Ld. CIT(A) deleted the additio…