HDFC Bank Ltd. v. DCIT

Sajjan India Ltd, Mumbai vs. Addl CIT RG 7(2), Mumbai

In the result the appeal of the assessee and revenue for AY 2011-12

Bench: Shri C.N.Prasad & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.5550/Mum/2015 (नििाारण वर्ा / Assessment Year: 2011-12) बिाम/ Sajjan India Limited Addl. Cit, Range 7(2) C/O Shankarlal Jain & Aayakar Bhawan Associates , 12, Engineer M K Road V. Building, 265, Princess Queens Road Street, Mumbai-400020 Mumbai-400020 स्थायी ऱेखा सं./ Pan : Aaacs6498M (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

…आयकर अपीऱीय अधिकरण “K” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI C.N.PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर अपीऱ सं./I.T.A. No.5550/Mum/2015 (नििाारण वर्ा / Assessment Year: 2011-12) बिाम/ Sajjan India Limited Addl. CIT, Range 7(2) C/o Shankarlal Jain & Aayakar Bhawan Associates , 12, Engineer M K Road v. Building, 265, Princess Queens Road Street, Mumbai-400020 Mumbai-400020 स्थायी ऱेखा सं./ PAN : AAACS6498M (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. आयकर अपीऱ सं./I.T.A. No. 5751/Mum/2015 (नििाारण वर्ा / Assessment Year: 2011-12)…

Alfa Distilleries Pvt. Ltd., Mumbai vs. ITO 2(1)(1), Mumbai

In the result, appeal of the Assessee in ITA No

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.1570/Mum/2015 (नििाारण वर्ा / Assessment Year: 2010-11)

…the file of A.O to look into these facts and then AO can decide the issue on merits in accordance with law. The learned counsel for the assessee placed reliance on decision of Hon’ble Bombay High Court in the case of HDFC Bank Ltd. v. DCIT reported in (2016) 383 ITR 529(Bom HC) , CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340(Bom HC) and decision CIT v. Reliance Communications Infrastructure Ltd.(2012) 207 taxman 219(Bom HC). With respect to the second issue ,it was submitted that the A.O applied wrong provisions of the 1961 Act . It is claimed that the assessee is engaged I.T.A. No.1570/Mum/2015…

Raheja Leasing & Investments P.Ltd, Mumbai vs. DCIT CC 4(2), Mumbai

In the result appeal of the assessee is partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri N.K. Pradhan, Hon'Bleraheja Leasing & Investments V. Deputy Commissioner Of Income Tax Private Ltd, 4Th Floor, Cc-4(2), Room No.1918, 19Th Floor, Raheja Centre Point, Cst Air India Building, Nariman Point, Road, 294, Vidya Nagari Mumbai 400 021 Marg, Santacruz (East), Mumbai – 400 098

…₹.89,13,742/- made in the companies yielding exempt income. The Learned Counsel for the assessee submits that, in view of the decision of the Hon'ble Jurisdictional High Court in the case of CIT v. HDFC Bank Ltd. (supra) which was reiterated in HDFC v. DCIT [383 ITR 529] submits that a presumption can be drawn that investment came out of interest free funds when the interest free funds far exceeds the investments made by the assessee. Therefore, he submits that the disallowance made under Rule 8D(2)(ii) should be deleted. 4. The Ld.DR relies on the orders of the authorities below. 5. We have heard the rival su…

Biostadt India Ltd, Mumbai vs. Asst CIT 6(1), Mumbai

In the result, appeals of the assessee are partly allowed for statistical purpose and the appeals of the Revenue are dismissed

Bench: Shri Rajendra, Hon'Ble & Shri C.N. Prasad, Hon'Ble

…assessee before us submits that no satisfaction is recorded by the Assessing Officer and Own funds are more than the investments. Therefore, he submits that in view of the decision of the Hon'ble Jurisdictional High Court in the case of HDFC Bank Ltd. v. CIT [383 ITR 529] no interest disallowance should be made. He also placed reliance on the decision of the Coordinate Bench in the case of 4 ITA.No.911, 912, 1328 & 1329/MUM/2014 Assessment Years 2008-09 & 2009-10 M/s. Biostadt India Limited M/s.Beekaylon Synthetics Pvt. Ltd. v. ACIT in ITA.No.2459/MUM/2015 dated 11.07.2017. 5. Ld.DR vehemently supported the autho…

Biostadt India Ltd, Mumbai vs. Asst CIT 6(1), Mumbai

In the result, appeals of the assessee are partly allowed for statistical purpose and the appeals of the Revenue are dismissed

Bench: Shri Rajendra, Hon'Ble & Shri C.N. Prasad, Hon'Ble

…assessee before us submits that no satisfaction is recorded by the Assessing Officer and Own funds are more than the investments. Therefore, he submits that in view of the decision of the Hon'ble Jurisdictional High Court in the case of HDFC Bank Ltd. v. CIT [383 ITR 529] no interest disallowance should be made. He also placed reliance on the decision of the Coordinate Bench in the case of 4 ITA.No.911, 912, 1328 & 1329/MUM/2014 Assessment Years 2008-09 & 2009-10 M/s. Biostadt India Limited M/s.Beekaylon Synthetics Pvt. Ltd. v. ACIT in ITA.No.2459/MUM/2015 dated 11.07.2017. 5. Ld.DR vehemently supported the autho…

DCIT Cir 6(1), Mumbai vs. Biostadt India Ltd, Mumbai

In the result, appeals of the assessee are partly allowed for statistical purpose and the appeals of the Revenue are dismissed

Bench: Shri Rajendra, Hon'Ble & Shri C.N. Prasad, Hon'Ble

…assessee before us submits that no satisfaction is recorded by the Assessing Officer and Own funds are more than the investments. Therefore, he submits that in view of the decision of the Hon'ble Jurisdictional High Court in the case of HDFC Bank Ltd. v. CIT [383 ITR 529] no interest disallowance should be made. He also placed reliance on the decision of the Coordinate Bench in the case of 4 ITA.No.911, 912, 1328 & 1329/MUM/2014 Assessment Years 2008-09 & 2009-10 M/s. Biostadt India Limited M/s.Beekaylon Synthetics Pvt. Ltd. v. ACIT in ITA.No.2459/MUM/2015 dated 11.07.2017. 5. Ld.DR vehemently supported the autho…

DCIT Cir 6(1), Mumbai vs. Biostadt India Ltd, Mumbai

In the result, appeals of the assessee are partly allowed for statistical purpose and the appeals of the Revenue are dismissed

Bench: Shri Rajendra, Hon'Ble & Shri C.N. Prasad, Hon'Ble

…assessee before us submits that no satisfaction is recorded by the Assessing Officer and Own funds are more than the investments. Therefore, he submits that in view of the decision of the Hon'ble Jurisdictional High Court in the case of HDFC Bank Ltd. v. CIT [383 ITR 529] no interest disallowance should be made. He also placed reliance on the decision of the Coordinate Bench in the case of 4 ITA.No.911, 912, 1328 & 1329/MUM/2014 Assessment Years 2008-09 & 2009-10 M/s. Biostadt India Limited M/s.Beekaylon Synthetics Pvt. Ltd. v. ACIT in ITA.No.2459/MUM/2015 dated 11.07.2017. 5. Ld.DR vehemently supported the autho…

Radiant Indus Chem P. Ltd, Mumbai vs. ITO 5(3)(1), Mumbai

In the result, the appeal bearing no

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

…he said funds were advanced out of the own funds of the assessee and no disallowance was called for. The ld. AR relied in defense of his arguments on the decision of Hon’ble Bombay High Court in the case of HDFC reported in 366 ITR 505 and Reliance Utilities(383 ITR 529) and also the decision in the case of SA Builders reported in. 288 ITR 1 (SC) . The Honb’le High Court has held that whether the holding company has deep interest in the subsidiary company and in that case advanced money by the holding company to the subsidiary company would not attract any disallowance and holding company would be entitled to…

Radiant Indus Chem P. Ltd, Mumbai vs. ITO 5(3)(1), Mumbai

In the result, the appeal bearing no

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

…he said funds were advanced out of the own funds of the assessee and no disallowance was called for. The ld. AR relied in defense of his arguments on the decision of Hon’ble Bombay High Court in the case of HDFC reported in 366 ITR 505 and Reliance Utilities(383 ITR 529) and also the decision in the case of SA Builders reported in. 288 ITR 1 (SC) . The Honb’le High Court has held that whether the holding company has deep interest in the subsidiary company and in that case advanced money by the holding company to the subsidiary company would not attract any disallowance and holding company would be entitled to…

DCIT 9(1)(2), Mumbai vs. Ashrit Holdings Ltd, Mumbai

In the result , appeal of the Revenue in ITA No

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 3284/Mum/2016 (नििाारण वर्ा / Assessment Year : 2012-13)

…ore the tribunal . The Ld. DR relied upon the assessment order of the A.O and fairly stated that the assessee case is covered by the decision of the Hon’ble Bombay High Court in the case of Reliance Utilities & Power Ltd.(Supra) , HDFC Bank Ltd. v. CIT (2016) 383 ITR 529(Bom) and also CIT v. HDFC Bank Limited(2014) 366 ITR 505(Bom) . The Ld. Counsel for the assessee submitted that the assessee’s own interest free funds available are more than the investments yielding exempt income and hence presumption will apply that assessee has invested its own funds I.T.A. No. 3284/Mum/2016 for the purposes of making invest…

DCIT Cir 3(3), Mumbai vs. Rallis India Ltd, Mumbai

In the result, the appeal of the revenue is dismissed

Bench: Shri Saktijit Dey, Jm & Shri Rajesh Kumar, Am आमकय अऩीर सं./ I.T.A. No.4234/Mum/2014 (निर्ाारण वषा / Assessment Year :2010-11) M/S Rallis India Ltd, Addl.Commissioner Of Income 156/157 Nariman Bhavan, Tax-Circle 3(3), फनाभ/ Room No.609, 6Th Floor, Nariman Point, Mumbai-400001 Aayakar Bhavan, Vs. M K Road, Mumbai-400020 (अऩीराथी /Appellant) (प्रत्मथी / Respondent) आमकय अऩीर सं./ I.T.A. No.4316/Mum/2014 (निर्ाारण वषा / Assessment Year :2010-11) Dy.Commissioner Of Income Tax- M/S Rallis India Ltd, Circle 3(3), 156/157 Nariman Bhavan, फनाभ/ Room No.609, 6Th Floor, Nariman Point, Aayakar Bhavan, Mumbai-400001 Vs. M K Road, Mumbai-400020 (अऩीराथी /Appellant) (प्रत्मथी / Respondent) Pan: Aabcr2657N अऩीराथी की ओय से / Assessee By : S/Shri Jitendra Jain, H.Jemshethji & Darshit Naik प्रत्मथी की ओय से/Respondent By : Shri Purishottam Kumar सुनवाई की तायीख /Date Of Hearing : 9.8.2017 घोषणा की तायीख /Date Of Pronouncement : 8.11.2017

…n funds in the business of assessee were far more than the investments from which tax free dividend income was earned to the tune of Rs.422.79 crores following the decision in the case of HDFC Bank Ltd. V. 12 I.T.A. No.4316/Mum/2014 and 4234/Mum/2014 DCIT (383 ITR 529) (Born HC) and also the decision in assessee‟s own case for the assessment years 2008-09 and 2009-10. In our considered view, the issue is squarely covered by the ratio in favour of the assessee and therefore we are inclined to dismiss the ground taken by the revenue. 15. The issue raised in the grounds of appeal no.3 is against the deletion of d…

Rallis India Ltd, Mumbai vs. Addl CIT 3(3), Mumbai

In the result, the appeal of the revenue is dismissed

Bench: Shri Saktijit Dey, Jm & Shri Rajesh Kumar, Am आमकय अऩीर सं./ I.T.A. No.4234/Mum/2014 (निर्ाारण वषा / Assessment Year :2010-11) M/S Rallis India Ltd, Addl.Commissioner Of Income 156/157 Nariman Bhavan, Tax-Circle 3(3), फनाभ/ Room No.609, 6Th Floor, Nariman Point, Mumbai-400001 Aayakar Bhavan, Vs. M K Road, Mumbai-400020 (अऩीराथी /Appellant) (प्रत्मथी / Respondent) आमकय अऩीर सं./ I.T.A. No.4316/Mum/2014 (निर्ाारण वषा / Assessment Year :2010-11) Dy.Commissioner Of Income Tax- M/S Rallis India Ltd, Circle 3(3), 156/157 Nariman Bhavan, फनाभ/ Room No.609, 6Th Floor, Nariman Point, Aayakar Bhavan, Mumbai-400001 Vs. M K Road, Mumbai-400020 (अऩीराथी /Appellant) (प्रत्मथी / Respondent) Pan: Aabcr2657N अऩीराथी की ओय से / Assessee By : S/Shri Jitendra Jain, H.Jemshethji & Darshit Naik प्रत्मथी की ओय से/Respondent By : Shri Purishottam Kumar सुनवाई की तायीख /Date Of Hearing : 9.8.2017 घोषणा की तायीख /Date Of Pronouncement : 8.11.2017

…n funds in the business of assessee were far more than the investments from which tax free dividend income was earned to the tune of Rs.422.79 crores following the decision in the case of HDFC Bank Ltd. V. 12 I.T.A. No.4316/Mum/2014 and 4234/Mum/2014 DCIT (383 ITR 529) (Born HC) and also the decision in assessee‟s own case for the assessment years 2008-09 and 2009-10. In our considered view, the issue is squarely covered by the ratio in favour of the assessee and therefore we are inclined to dismiss the ground taken by the revenue. 15. The issue raised in the grounds of appeal no.3 is against the deletion of d…

ACIT 3(1)(1), Mumbai vs. B Arunumar Capital & Credit Services P.Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

Bench: Shri B.R. Baskaran (Am) & Shri Ravish Sood(Jm)

…h Court in the case of CIT. Vs. Reliance Utilities And Power Limited., 313 ITR 340 (Bom). Consequently, following the judgments of the Hon'ble Bombay High Court in the case of CIT vs. HDFC Bank Ltd., 366 ITR 505(Bom) and in the case of HDFC Bank Ltd. vs. DCIT,383 ITR 529 (Bom), the interest disallowed in pursuance to Rule 8D(2)(ii) of the Rules has been deleted. Apart there from, the CIT(A) has observed in para - 5.1.6 of his order that the Assessing Officer has not given any justification for rejecting the claim of the assessee that no expenditure was incurred in earning dividend income. Accordingly, in this man…

Roha Dyechem P.Ltd, Mumbai vs. ACIT Cen Cir 43, Mumbai

In the result, the appeal is partly allowed

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2010-11 Roha Dyechem Pvt. Ltd. Acit, Central Circle-43 Plot-A-44/45, Road No.2, Aayakar Bhavan, Vs. Midc, Andheri(E), Mumbai400020. Mumbai-400092

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K” MUMBAI BEFORE SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2010-11 Roha Dyechem Pvt. Ltd. ACIT, Central Circle-43 Plot-A-44/45, Road No.2, Aayakar Bhavan, Vs. MIDC, Andheri(E), Mumbai400020. Mumbai-400092 PAN No. AAACR4974P Appellant Respondent Assessee by : Mr. Snehal J. Shah, AR Revenue by : Mr. V. Jenardhanan/Saurabh Deshpande, DR Date of Hearing : 03/08/2017 Date of pronouncement : 27/10/2017 ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the assessee. The relevant assessment year is 2010-…

Sbi Capitalmarkets Ltd vs. DCIT Sp. RG 27

The appeal of the AO stands dismissed

…nced to the SBI was out of its own funds and not out of the borrowed funds, that no disallowance in relation to interest expense could be made as the own fund/non-interest- bearing funds exceeded the investments made.He relied upon the cases of HDFC Bank Ltd (383 ITR 529),Reliance Utilities and Power Ltd. (313 ITR 340) and referred to page 4 of the paper book. The DR argued that the FAA had categorically recorded the findings in the AY.1992 -93,that having regard to Share Capital, Reserves, Investment in Fixed Assets and Liabilities the assessee company had no money of its own,that the amounts were diverted to HS…

Asst CIT 33(2), Mumbai vs. Kalpesh C. Shah, Mumbai

In the result appeal of the Revenue in ITA No

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 1422/Mum/2016 (नििाारण वर्ा / Assessment Year : 2008-09)

…upon decision of tribunal in the case of HDFC Bank Limited v. DCIT in ITA no. 374/Mum/2012 dated 23-09-2015 which is later set aside by Hon’ble Bombay High court in writ jurisdiction and matter was restored to tribunal in HDFC Bank Limited v. DCIT reported in 383 ITR 529(Bom. HC). The assessee also relied upon decision of Hon’ble Punjab and Haryana High Court in the case of Pr. CIT v. State Bank of Patiala 391 ITR 218(P&H HC) I.T.A. No. 1422/Mum/2016 and Decision of Hon’ble Calcutta High Court in the case of CIT v. GKK Capital Markets Private Limited (392 ITR 471(Cal. HC)) 6. We have considered rival contention…

Kuloday Technopack P. Ltd, Mumbai vs. ITO 8(2)(2), Mumbai

In the result, appeal of the assessee in ITA No

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 3300/Mum/2013 (नििाारण वर्ा / Assessment Year : 2009-10 ) आयकर अपीऱ सं./I.T.A. No. 2423/Mum/2014 (नििाारण वर्ा / Assessment Year : 2010-11)

…advances. The assessee relied upon the decision of the Hon‟ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340(Bom.) and decision of Hon‟ble Bombay High Court in the case of HDFC Bank Ltd v. DCIT reported in (2016) 383 ITR 529(Bom). The learned counsel for the assessee prayed that the matter may be set aside to the file of the AO wherein the assessee will demonstrate before the AO with reference to the books of accounts that interest free funds available with the assessee were utilised for making payments for interest free loans and advances. The 30 I.T.A. No. 3300/Mu…

Asst CIT Cen Cir 2(4), Mumbai vs. Twinkle Enviro Tech P.Ltd, Mumbai

In the result, the appeal is allowed for statistical purposes

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2011-12 Acit-2(4) Twinkle Enviro Tech P. Room No. 802, 8Th Ltd. 317/318 Parvatiindl. Vs. Floor, Old Cgo Estate, Sunmill Building, Annex Compound, Lower M.K. Road Parel(W) Mumbai-400020. Mumbai-400013 Pan No. Aaact4038N (Appellant) (Respondent) Revenue By : Shri Ram Tiwari, Dr Assessee By : None Date Of Hearing : 12/07/2017 Date Of Pronouncement: 27/09/2017

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E” MUMBAI BEFORE SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2011-12 ACIT-2(4) Twinkle Enviro Tech P. Room No. 802, 8th Ltd. 317/318 ParvatiIndl. Vs. floor, Old CGO Estate, Sunmill Building, Annex Compound, Lower M.K. Road Parel(W) Mumbai-400020. Mumbai-400013 PAN No. AAACT4038N (Appellant) (Respondent) Revenue by : Shri Ram Tiwari, DR Assessee by : None Date of Hearing : 12/07/2017 Date of pronouncement: 27/09/2017 ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the Revenue. The relevant assessmen…