Hero Cycles Pvt. Ltd. v. CIT

379 ITR 347Supreme Court of India2015#208 most cited

What is Hero Cycles Pvt. Ltd. v. CIT authority for?

The Revenue cannot substitute its judgment for that of a businessman regarding the necessity or reasonableness of an expenditure. If an expense is incurred wholly and exclusively for business purposes, it is deductible, and the Revenue cannot question its commercial expediency.

361

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2026.

Also referred to as

Hero Cycles Pvt. Ltd. v. CIT · 379 ITR 347 · 16 SCC 359 · Section 36(1)(iii) · commercial expediency · business expediency · disallowance of expenditure · interest-free advances · corporate guarantee · wholly and exclusively for business · Revenue's armchair approach · sales promotion expenditure

Also reported as

16 SCC 359

Sections most often in play

Section 143(3)Section 36(1)(iii)Section 147Section 1961Section 143(2)Section 14ASection 132Section 142(1)
Read the full judgment

Issues it is cited on

interest free advancescommercial expediencysection 36(1)(iii)corporate guaranteebusiness expediencysection 36book profitssection 36(1)arm's length pricetransfer pricing adjustmentassociated enterprisessection 92c

Judgments citing Hero Cycles Pvt. Ltd. v. CIT

Southern Petrochemical Industries Corporation Ltd., Chennai vs. ITO, Chennai

Appeal stands dismissed

ITA 205/CHNY/2023[2004-05]Status: DisposedITAT Chennai10 Jan 2024AY 2004-05

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.204/Chny/2023 (िनधा*रण वष* / Assessment Year: 2004-05) & 2.आयकरअपील सं./ Ita No.205/Chny/2023 (िनधा*रण वष* / Assessment Year: 2004-05) M/S. Southern Petrochemical Acit / Ito बनाम Industries Corporation Limited Corporate Circle-6(2) / 88, Spic House, Mount Road, Guindy, Corporate Ward-3(1) / Vs. Chennai-600 032. Chennai-600 034. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacs-4668-K (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri R. Vijayaraghavan & Shri Saroj Kumar Parida (Advocates)-Ld. Ars " थ"कीओरसे/Respondent By : Shri Nilay Baran Som (Cit) & Shri Ar V Sreenivasan (Addl. Cit)-Ld. Drs सुनवाईकीतारीख/Date Of Hearing : 16-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 10-01-2024 आदेश / O R D E R

For Appellant: Shri R. Vijayaraghavan & Shri Saroj KumarFor Respondent: Shri Nilay Baran Som (CIT) &
Section 115JSection 143(3)Section 194CSection 41(1)Section 43B

…panding the soda ash and ammonia chloride capacity. There was business transaction of this entity such as supply of raw material and marketing and sale of product. Accordingly considering the decision of Hon’ble Supreme Court in the case of Hero Cycles Ltd. (379 ITR 347), Ld. AO was directed not to make any interest disallowance. NAPCL was a joint venture of assessee to produce Benzene, orthoxylene, paraxylene and PTA. However, the project failed to commence production. The assessee merely submitted that the project got delayed due to regulatory consents but the same was not sufficient enough to establish busine…

Southern Petrochemical Industries Corporation Ltd., Chennai vs. ITO, Chennai

Appeal stands dismissed

ITA 204/CHNY/2023[2004-05]Status: DisposedITAT Chennai10 Jan 2024AY 2004-05

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.204/Chny/2023 (िनधा*रण वष* / Assessment Year: 2004-05) & 2.आयकरअपील सं./ Ita No.205/Chny/2023 (िनधा*रण वष* / Assessment Year: 2004-05) M/S. Southern Petrochemical Acit / Ito बनाम Industries Corporation Limited Corporate Circle-6(2) / 88, Spic House, Mount Road, Guindy, Corporate Ward-3(1) / Vs. Chennai-600 032. Chennai-600 034. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacs-4668-K (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri R. Vijayaraghavan & Shri Saroj Kumar Parida (Advocates)-Ld. Ars " थ"कीओरसे/Respondent By : Shri Nilay Baran Som (Cit) & Shri Ar V Sreenivasan (Addl. Cit)-Ld. Drs सुनवाईकीतारीख/Date Of Hearing : 16-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 10-01-2024 आदेश / O R D E R

For Appellant: Shri R. Vijayaraghavan & Shri Saroj KumarFor Respondent: Shri Nilay Baran Som (CIT) &
Section 115JSection 143(3)Section 194CSection 41(1)Section 43B

…panding the soda ash and ammonia chloride capacity. There was business transaction of this entity such as supply of raw material and marketing and sale of product. Accordingly considering the decision of Hon’ble Supreme Court in the case of Hero Cycles Ltd. (379 ITR 347), Ld. AO was directed not to make any interest disallowance. NAPCL was a joint venture of assessee to produce Benzene, orthoxylene, paraxylene and PTA. However, the project failed to commence production. The assessee merely submitted that the project got delayed due to regulatory consents but the same was not sufficient enough to establish busine…

ACIT Circle 5(1)(1), Mumbai vs. M/S Essar Shipping Limited, Mumbai

In the result, appeal filed by the learned AO is dismissed

ITA 2951/MUM/2022[2015-2016]Status: DisposedITAT Mumbai09 Jan 2024AY 2015-2016

Bench: Shri Prashant Maharishi, Am & Shri Narender Kumar Choudhry, Jm M/S Essar Shipping Limited Acit, Circle 5(1)(1) Essar House, 11, R.No.568, Aaykar Bhavan, Vs. Kk Marg, Mahalaxmi, M.K. Road, Mumbai-400 020 Mumbai-400 034 (Appellant) (Respondent) Pan No. Aacce3707D

For Appellant: Shri Rishav Patawari, ARFor Respondent: Shri Manoj Sinha, CIT DR
Section 115VSection 143Section 144CSection 28Section 43Section 92Section 92CSection 92F

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI NARENDER KUMAR CHOUDHRY, JM M/s Essar Shipping Limited ACIT, Circle 5(1)(1) Essar House, 11, r.no.568, Aaykar Bhavan, Vs. KK Marg, Mahalaxmi, M.K. Road, Mumbai-400 020 Mumbai-400 034 (Appellant) (Respondent) PAN No. AACCE3707D Assessee by : Shri Rishav Patawari, AR Revenue by : Shri Manoj Sinha, CIT DR Date of hearing: 20.10.2023 Date of pronouncement : 09.01.2024 O R D E R PER PRASHANT MAHARISHI, AM: 01. This appeal is filed by The Assistant Commissioner Of Income Tax, Circle – 5 (1) (1), Mumbai (The Learned AO)…

ACIT, Circle-2, Erode vs. M/S. K-3 Management and Education Services Pvt. Ltd., Erode

In the result, the appeal of Revenue is dismissed

ITA 3506/CHNY/2019[2016-17]Status: DisposedITAT Chennai29 Dec 2023AY 2016-17

Bench: Shri Mahavir Singhand Shri Manjunatha. Gआयकर अपील सं./Ita No.3506/Chny/2019 िनधा"रण वष" /Assessment Year: 2016-17 The Asst. Commissioner Of M/S. K3 Management & Income Tax, Vs. Education Service Pvt. Ltd., Circle-2, Old No.33/New No.81, Car Street, Erode. Anthiyur, Erode – 638 001. [Pan: Aafck-7114-D] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri Nilay Baran Som, Cit ""यथ" क" ओर से /Respondent By : Shri S. Sridhar, Advocate सुनवाई क" तारीख/Date Of Hearing : 18.12.2023 घोषणा क" तारीख /Date Of Pronouncement : 29.12.2023 आदेश / O R D E R

For Appellant: Shri Nilay Baran Som, CITFor Respondent: Shri S. Sridhar, Advocate
Section 143(3)Section 36(1)(iii)

…आयकर अपीलीय अिधकरण, ‘ए’ "यायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI "ी महावीर "सह, उपा"य" एवं "ी मंजुनाथ. जी, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANJUNATHA. G, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3506/Chny/2019 िनधा"रण वष" /Assessment Year: 2016-17 The Asst. Commissioner of M/s. K3 Management and Income Tax, Vs. Education Service Pvt. Ltd., Circle-2, Old No.33/New No.81, Car Street, Erode. Anthiyur, Erode – 638 001. [PAN: AAFCK-7114-D] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant by : Shri Nilay Baran Som, CIT ""यथ" क" ओर से /Res…

T.G. Ranganath, Bangalore vs. DCIT, Bangalore

ITA 173/BANG/2015[2010-11]Status: DisposedITAT Bangalore30 Oct 2023AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2008-09

For Appellant: Shri Satyanarayana Rao, A.R. &For Respondent: Shri Sathyasai Rath, D.R
Section 147Section 68

…rect profit and loss account by ignoring the draft/provisional profit and loss account statement prepared on anticipation of profits. The assessee begs to places reliance on the decision of the Hon'ble Supreme Court in the case CIT vs. Hero Cycles Ltd. (2015) 379 ITR 347(SC) wherein it was held as under: "the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. It further held that no businessman can be compelled to maximize hi…

T.G. Ranganath, Bangalore vs. ACIT, Bangalore

ITA 1467/BANG/2012[2009-10]Status: DisposedITAT Bangalore30 Oct 2023AY 2009-10

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2008-09

For Appellant: Shri Satyanarayana Rao, A.R. &For Respondent: Shri Sathyasai Rath, D.R
Section 147Section 68

…rect profit and loss account by ignoring the draft/provisional profit and loss account statement prepared on anticipation of profits. The assessee begs to places reliance on the decision of the Hon'ble Supreme Court in the case CIT vs. Hero Cycles Ltd. (2015) 379 ITR 347(SC) wherein it was held as under: "the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. It further held that no businessman can be compelled to maximize hi…

ACIT, Bangalore vs. Sri. T.G. Ranganath, Bangalore

ITA 1457/BANG/2012[2009-10]Status: DisposedITAT Bangalore30 Oct 2023AY 2009-10

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2008-09

For Appellant: Shri Satyanarayana Rao, A.R. &For Respondent: Shri Sathyasai Rath, D.R
Section 147Section 68

…rect profit and loss account by ignoring the draft/provisional profit and loss account statement prepared on anticipation of profits. The assessee begs to places reliance on the decision of the Hon'ble Supreme Court in the case CIT vs. Hero Cycles Ltd. (2015) 379 ITR 347(SC) wherein it was held as under: "the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. It further held that no businessman can be compelled to maximize hi…

Suresh Kumar, Chennai vs. DCIT, Central Circle-3(3), Chennai

In the result, appeal filed by the assessee is allowed

ITA 167/CHNY/2023[2019-20]Status: DisposedITAT Chennai31 Aug 2023AY 2019-20

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita No.: 167/Chny/2023 िनधा"रण वष" / Assessment Year: 2019-20 Suresh Kumar, Deputy Commissioner Of 114/10 (Ligh), Gandhi Road, V. Income Tax, West Tambaram, Central Circle 1(3), Chennai – 600 045. Chennai – 600 034. [Pan: Aagps-0396-D] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. D. Anand, Advocate अपीलाथ" क" ओर से/Appellant By ""यथ" क" ओर से/Respondent By : Shri. Ar V Sreenivasan, Addl. Cit सुनवाई क" तारीख/Date Of Hearing : 16.08.2023 घोषणा क" तारीख/Date Of Pronouncement : 31.08.2023 आदेश /O R D E R

For Respondent: Shri. AR V Sreenivasan, Addl. CIT
Section 131Section 133ASection 69B

…आयकर अपीलीय अिधकरण, ‘ए’ "यायपीठ, चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी महावीर "सह, उपा"य" एवं एवं "ी मंजुनाथ. जी, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 167/Chny/2023 िनधा"रण वष" / Assessment Year: 2019-20 Suresh Kumar, Deputy Commissioner of 114/10 (LIGH), Gandhi Road, v. Income Tax, West Tambaram, Central Circle 1(3), Chennai – 600 045. Chennai – 600 034. [PAN: AAGPS-0396-D] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. D. Anand, Advocate अपीलाथ" क" ओर से/Appellant by ""यथ" क" ओर स…

Jai Salasar Balaji Industries(P)Ltd, Kolkata vs. ACIT, Kolkata

In the result, the appeal filed by the assessee is allowed as per the terms indicated above

ITA 440/KOL/2023[2018-19]Status: DisposedITAT Kolkata25 Aug 2023AY 2018-19

Bench: Dr. Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Blei.T.A. No. 440/Kol/2023 Assessment Year: 2018-19 Jai Salasar Balaji Industries (P) Ltd. Acit, Central Circle – 4(1), Kolkata 5, Bentinck Street Vs Kolkata - 700001 [Pan : Aaacj6970D] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri A.K. Tulsiyan, Fca Revenue By : Shri Subhendu Datta, Cit, D/R सुनवाई क" तारीख/Date Of Hearing : 20/06/2023 घोषणा क" तारीख /Date Of Pronouncement: 25/08/2023 आदेश/O R D E R Per Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The Learned Principal Commissioner Of Income Tax (Central), Kolkata -2, (Hereinafter The “Ld. Pr. Cit”) Dt. 28/03/2023, Passed U/S 263 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2018-19. 2. Brief Facts Of The Case Are That The Assessee Is A Private Limited Company Engaged In The Business Of Manufacturing & Trading Of Steel. E-Return Filed On 27/10/2018 Declaring Total Income At Nil For The Assessment Year 2018-19. Case Selected For Through Cass Followed By Issuance Of Notice U/S 143(2) & 142(1) Of The Act. Details Were Called For In Respect Of The Reason Of Scrutiny Selection. The Assessee Complied By Filing All The Relevant Details & The Same Were Duly Examined By The Assessing Officer & He Came To The Conclusion That The Assessee Was Entitled To The Claim Of Carry Forward Of Loss To 2

For Appellant: Shri A.K. Tulsiyan, FCAFor Respondent: Shri Subhendu Datta, CIT, D/R
Section 143(2)Section 143(3)Section 263

…ar Balaji Industries (P) Ltd.  CIT vs. Beekons Industries Ltd. [2023] 149 taxmann.com 383 “With respect to the loan given to the director's relative the Supreme Court in the case of Hero Cycles (P.) Ltd. v. CIT [2015] 63 taxmann.com 308/[2016] 236 Taxman 447/379 ITR 347 has considered a similar issue and held that as loan of Rs. 34 lacs was given to the directors when the credit balance with the company was of Rs. 15 crores, this amount did not effect the business transaction carried out by the company after taking loan from the bank. It further overruled the judgment passed in the case of Abhishek Industries Lt…

Assistant Commissioner of Income Tax, Circle-1(1), Bhilai vs. Mesers Steelco Ispat Private Limited, Bhilai

In the result, appeal of the revenue is partly allowed for statistical purposes in terms of our aforesaid observations

ITA 88/RPR/2020[2014-15]Status: DisposedITAT Raipur31 Jul 2023AY 2014-15

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita No.88/Rpr/2020 ("नधा"रण वष" / Assessment Year: 2014-15)

For Appellant: Shri Ravi Agrawal, CAFor Respondent: Shri V.K. Singh, CIT-DR
Section 142(1)Section 143(2)Section 14A

…आयकर अपील"य अ"धकरण, रायपुर "यायपीठ, रायपुर IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR "ी र"वश सूद, "या"यक सद"य एवं "ी अ"ण खोड़"पया, लेखा सद"य के सम" । BEFORE SHRI RAVISH SOOD, JM & SHRI ARUN KHODPIA, AM आयकर अपील सं./ITA No.88/RPR/2020 ("नधा"रण वष" / Assessment Year: 2014-15) Assistant Commissioner of Income Vs M/s. Steelco Ispat Pvt. Ltd., Tax-1(1), 13-J, Light Industrial Area, Bhilai Bhilai PAN No. : AAICS6313D (अपीलाथ" /Appellant) .. (""यथ" / Respondent) "नधा"रती क" ओर से /Assessee by : Shri Ravi Agrawal, CA राज"व क" ओर से /Revenue by : Shri V.K. Singh, CIT-DR सुनवाई क" तार"ख / Date of Hearing :…

DCIT, Circle- 10(1), New Delhi vs. Global Green Company Ltd., New Delhi

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

ITA 7541/DEL/2019[2011-12]Status: DisposedITAT Delhi20 Jun 2023AY 2011-12

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…

Global Green Company Ltd., New Delhi vs. DCIT, Circle- 10(1), New Delhi

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

ITA 6940/DEL/2019[2011-12]Status: DisposedITAT Delhi20 Jun 2023AY 2011-12

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…

Global Green Company Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 2233/DEL/2017[2004-05]Status: DisposedITAT Delhi20 Jun 2023AY 2004-05

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…

Global Green Company Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 2232/DEL/2017[2003-04]Status: DisposedITAT Delhi20 Jun 2023AY 2003-04

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…

Global Green Company Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 1932/DEL/2017[2008-09]Status: DisposedITAT Delhi20 Jun 2023AY 2008-09

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…

Global Green Company Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 1407/DEL/2017[2010-11]Status: DisposedITAT Delhi20 Jun 2023AY 2010-11

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…

Global Green Company Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 1406/DEL/2017[2007-08]Status: DisposedITAT Delhi20 Jun 2023AY 2007-08

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…

Global Green Company Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 1405/DEL/2017[2005-06]Status: DisposedITAT Delhi20 Jun 2023AY 2005-06

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…

DCIT, New Delhi vs. M/S Global Green Company Ltd., New Delhi

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

ITA 1308/DEL/2017[2010-11]Status: DisposedITAT Delhi20 Jun 2023AY 2010-11

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…

DCIT, New Delhi vs. M/S Global Green Company Ltd., New Delhi

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

ITA 1307/DEL/2017[2007-08]Status: DisposedITAT Delhi20 Jun 2023AY 2007-08

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

…te Guarantees: 68. As adjudicated above in this order. Disallowance u/s 36(1)(iii): 69. The AO disallowed the interest on the amounts invested in the subsidiary company. The ld. CIT(A) relying on the judgment of Hon’ble Apex Court in the case of Hero Cycle 379 ITR 347 held that the disallowance of interest on the investments in the subsidiaries cannot be disallowed in the absence of evidence that the said investment had no element of commercial expediency from the business point of view. Since, the decision of the ld. CIT(A) is based on the order of the Hon’ble Apex Court, we decline to interfere with the adju…