Hive Communication (P.) Ltd. v. CIT

353 ITR 200High Court2013#4023 most cited

What is Hive Communication (P.) Ltd. v. CIT authority for?

When examining the reasonableness of expenditure under Section 40A(2), tax officers must exercise fair and objective judgment, considering the perspective of a prudent businessman, to prevent tax evasion without causing hardship in genuine cases.

30

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2023.

Also referred to as

Hive Communication · Section 40A(2) · reasonableness of expenditure · closely held company · associate concerns · fair market value · prudent businessman · objective decision · tax evasion · hardship

Also reported as

201 Taxmann 9912 Taxmann.com 287

Issues it is cited on

section 40a(2)(a)legal expensesclosely held companymanagement feessection 40a(2)(b)section 40a(2)maximum marginal rateenduring benefitsection 30section 40afair market valuerule 46a

Judgments citing Hive Communication (P.) Ltd. v. CIT

DENSO HARYANA PVT. LTD.,NEW DELHI vs. DCIT, CIRCLE- 10(1), NEW DELHI

In the result, appeal is allowed

ITA 3811/DEL/2017[2010-11]Status: DisposedITAT Delhi17 Nov 2023AY 2010-11

Bench: Shri Saktijit Dey, Vice- & Dr. Brr Kumarassessment Year: 2010-11 Denso Haryana Pvt. Ltd., Versus Dcit, Circle 10(1), B-1/D-4, Ground Floor, Mohan New Delhi. Cooperative Industrial Estate, Mathura Road, Badarpur, New Delhi. Pan:Aaacd6817F (Appellant) (Respondent) Assessee By : Sh. Himanshu S. Sinha, Adv. Sh. Bhuwan Dhoopar, Adv. Revenue By : Sh. Rajesh Kumar, Cit-Dr Date Of Hearing : 04.09.2023 Date Of Pronouncement: 17.11.2023

For Appellant: Sh. Himanshu S. Sinha, AdvFor Respondent: Sh. Rajesh Kumar, CIT-DR
Section 92B

…. Cushman and Wakefield (India) (P.) Ltd. [2014] 46 taxmann.com 317 (Delhi) - Knorr-Bremse India Pvt Ltd v CIT: [2016] 380 ITR 307(P&H HC) - Dresser Rand India Pvt Ltd v ACIT: [2011] 13 taxmann.com 82 (Mumbai-Trib) - Hive Communications (P) Ltd vs CIT: [2012] 353 ITR 200(Del HC) - CIT v Lumax Industries Ltd [ITA No. 102/2014, order dated 28.10.2015] Without prejudice argument: copious evidence was furnished which was unjustifiably disregarded by the Ld. TPO 6.10 It is submitted thatthe Appellant has availed services from itsAE(s)amounting to Rs. 72,27,543/-to conduct its business efficiently and effectively. To…

ACIT, CIRCLE- 2(2), NEW DELHI vs. ANAND DIVINE DEVELOPERS PVT. LTD., NEW DELHI

In the result, ITA.No.4499/Del

ITA 4499/DEL/2017[2014-15]Status: DisposedITAT Delhi24 Nov 2022AY 2014-15

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Shri Ved Jain, Advocate &For Respondent: Shri Kanav Bali, Sr. D.R
Section 143(3)Section 40A(2)(b)

…relatives and associate concerns and should not be applied in a manner which will cause hardship in bona fide cases. The said Circular had been challenged before the Hon’ble jurisdictional Delhi High Court in the case of Hive Communication P Ltd Vs CIT (2011)353 ITR 200 (Delhi) wherein the Hon’ble Delhi High Court observed as under : “We may also refer to the scope of section 40A(2) as explained by CBDT in Circular No. 6P, dated 6-7-1968. 8 ITA.No.4498/Del./2017 M/s. Anand Divine Developers Pvt. Ltd., New Delhi. The CBDT clarified that while examining the reasonableness of expenditure the Assessing Officer is e…

ACIT, CIRCLE- 2(2), NEW DELHI vs. ANAND DIVINE DEVELOPERS PVT. LTD., NEW DELHI

In the result, ITA.No.4499/Del

ITA 4498/DEL/2017[2013-14]Status: DisposedITAT Delhi24 Nov 2022AY 2013-14

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Shri Ved Jain, Advocate &For Respondent: Shri Kanav Bali, Sr. D.R
Section 143(3)Section 40A(2)(b)

…relatives and associate concerns and should not be applied in a manner which will cause hardship in bona fide cases. The said Circular had been challenged before the Hon’ble jurisdictional Delhi High Court in the case of Hive Communication P Ltd Vs CIT (2011)353 ITR 200 (Delhi) wherein the Hon’ble Delhi High Court observed as under : “We may also refer to the scope of section 40A(2) as explained by CBDT in Circular No. 6P, dated 6-7-1968. 8 ITA.No.4498/Del./2017 M/s. Anand Divine Developers Pvt. Ltd., New Delhi. The CBDT clarified that while examining the reasonableness of expenditure the Assessing Officer is e…

MUKESH KUMAR,BHATTU vs. ITO WARD - 1, FATEHABAD

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

ITA 6443/DEL/2019[2016-17]Status: DisposedITAT Delhi22 Sept 2021AY 2016-17
For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Shri R.K. Gupta, Sr. DR

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI (Through Virtual Hearing) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER Assessment Year: 2016-17 Mukesh Kumar, Vs. ITO, 44, New Grain Market, Ward-1, Bhattu, Fatehabad. Fatehabad, Haryana. PAN: ATQPK8439E (Appellant) (Respondent) Assessee by : Shri Gautam Jain, Advocate Revenue by : Shri R.K. Gupta, Sr. DR Date of Hearing : 25.08.2021 Date of Pronouncement : 22.09.2021 ORDER This appeal filed by the assessee is directed against the order dated 30.04.2019 of the CIT(A), Hisar, relating to the assessment year 2016-17. 2. Facts of the case, in brief, a…

ACIT, NEW DELHI vs. M/S OPUS PROJECTS LTD.,, DELHI

Appeal is dismissed

ITA 5470/DEL/2016[2012-13]Status: DisposedITAT Delhi19 Jan 2021AY 2012-13

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri C. S. Anand, AdvFor Respondent: Shri H. K. Chaudhary, CIT DR
Section 30Section 40Section 40A

…milar lease agreement where lease rent was Rs. 80 sq ft whereas assessee has paid only Rs. 50 sq ft. He therefore, deleted disallowances. Honourable Delhi High Court in Hive Communication (P.) Ltd. v. CIT [2011] 12 taxmann.com 287/201 Taxman 99 (Delhi)/[2013] 353 ITR 200, has observed that any determination on question of reasonableness and excessiveness requires several facets and parameters to be kept in mind, albeit approach has to be from standpoint of a reasonable and prudent businessman. The Assessing Officer's judgment of disallowance, if any, to be made has to be an objective and fair decision, as provisi…

DCIT, NEW DELHI vs. M/S. OPUS PROJECTS LTD., NEW DELHI

Appeal is dismissed

ITA 3939/DEL/2015[2011-12]Status: DisposedITAT Delhi19 Jan 2021AY 2011-12

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri C. S. Anand, AdvFor Respondent: Shri H. K. Chaudhary, CIT DR
Section 30Section 40Section 40A

…milar lease agreement where lease rent was Rs. 80 sq ft whereas assessee has paid only Rs. 50 sq ft. He therefore, deleted disallowances. Honourable Delhi High Court in Hive Communication (P.) Ltd. v. CIT [2011] 12 taxmann.com 287/201 Taxman 99 (Delhi)/[2013] 353 ITR 200, has observed that any determination on question of reasonableness and excessiveness requires several facets and parameters to be kept in mind, albeit approach has to be from standpoint of a reasonable and prudent businessman. The Assessing Officer's judgment of disallowance, if any, to be made has to be an objective and fair decision, as provisi…

DCIT, NEW DELHI vs. M/S. OPUS PROJECTS LTD., NEW DELHI

Appeal is dismissed

ITA 3938/DEL/2015[2010-11]Status: DisposedITAT Delhi19 Jan 2021AY 2010-11

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri C. S. Anand, AdvFor Respondent: Shri H. K. Chaudhary, CIT DR
Section 30Section 40Section 40A

…milar lease agreement where lease rent was Rs. 80 sq ft whereas assessee has paid only Rs. 50 sq ft. He therefore, deleted disallowances. Honourable Delhi High Court in Hive Communication (P.) Ltd. v. CIT [2011] 12 taxmann.com 287/201 Taxman 99 (Delhi)/[2013] 353 ITR 200, has observed that any determination on question of reasonableness and excessiveness requires several facets and parameters to be kept in mind, albeit approach has to be from standpoint of a reasonable and prudent businessman. The Assessing Officer's judgment of disallowance, if any, to be made has to be an objective and fair decision, as provisi…

SUNVIN INDUSTRIES PVT. LTD.,MUMBAI vs. DCIT 4(3), MUMBAI

In the result, appeal filed by the assessee is allowed

ITA 5380/MUM/2017[2011-12]Status: DisposedITAT Mumbai15 Mar 2019AY 2011-12

Bench: Shri Shamim Yahya, Am & Amarjit Singh, Jm Sunvin Industries Pvt.Ltd. Dcit-4(3) 21, Vitthal Chamgers, 3Rd Floor Room No.649, 6Th Floor 65, Kazi Sayyed Street Aaykar Bhawan Vs. Mumbai-400 003 M.K.Road Mumbai-400 020

For Appellant: NoneFor Respondent: Ashish Kumar
Section 40A(2)Section 40A(2)(b)

…Having regard to the nature and the scope of work of the directors and their qualification the afore-stated remuneration is very reasonable. • Reliance is place of judgment of Honourable Delhi High Court in the cae of Hive Communication (P) Ltd v/s CIT (2011) 201 Taxmann 99/12 taxmann.com 287 , wherein the court has deleted disallowances of Director Remuneration u/s 40A(2) of the judgment referred enclosed in Annexure-i).” 5. However, Ld. CIT(A) did not consider the above convincing and held that disallowance made is on a higher side. Looking into the facts of the case, he directed the AO to restrict the disall…

FREEWINGS POWER & INFRA LIMITED ,KOLKATA vs. DCIT, CIRCLE - 10(1), KOLKATA , KOLKATA

Appeal is allowed

ITA 778/KOL/2018[2012-13]Status: DisposedITAT Kolkata25 Jan 2019AY 2012-13

Bench: Shri S.S, Godaraassessment Year:2012-13

Section 143(3)Section 40A(2)Section 40A(2)(b)

…eased remuneration for the assessment year in question should be allowed." ITA No.778/Kol/2018 A.Y. 2012-13 Freewings Power & Infr Ltd. Vs. DCIT, Cir-10(1), Kol. Page 4 Sir, In the case of Hive Communication Put. Ltd. Versus Commissioner Of Income Tax [2013} 353 ITR 200 (Del). Hon'ble Delhi High Court Decided the question in favour of the assessee and in the negative holding that the Tribunal was not correct in law in upholding disallowance of Rs. 13.20 laes out of remuneration paid to Mr. Sushil Pandit (director) by invoking the 'provisions of Section 40A(2) of the Act. Sir, Hon'ble Allahabad High Court in Abba…

M/S. BRIGHT ENTERPRISES PVT. LTD.,JALANDHAR vs. ASSTT. COMMISSIONER OF INCOME-TAX, JALANDHAR

In the result, the appeal of the assessee in ITA No

ITA 126/ASR/2015[2012-13]Status: DisposedITAT Amritsar17 Jan 2019AY 2012-13

Bench: Sh. N. K. Saini, Hon’Ble & Sh. Ravish Soodita No.354/Asr./2014 : Asstt. Year : 2010-11 Ita No.126/Asr./2015 : Asstt. Year : 2012-13 M/S Bright Enterprises Pvt. Ltd., Vs Deputy Commissioner Of Income Mbd House, Railway Road, Tax, Central Circle-Ii, Jalandhar Jalandhar (Appellant) (Respondent) Pan No. Aaacb9469K Assessee By : Sh. Sudhir Sehgal, Adv. Revenue By : Sh. Pawan K. Kumar, Cit Dr Date Of Hearing : 08.01.2019 Date Of Pronouncement : 17.01.2019 Order Per N. K. Saini: These Two Appeals By The Assessee Are Directed Against The Orders Dated 08.05.2014 & 15.01.2015 Of The Ld. Cit(A)-5, Ludhiana For The Assessment Years 2010-11 & 2012-13 Respectively. 2. Since, The Issues Involved Are Common & The Appeals Were Heard Together, So These Are Being Disposed Off By This Consolidated Order For The Sake Of Convenience & Brevity.

For Appellant: Sh. Sudhir Sehgal, AdvFor Respondent: Sh. Pawan K. Kumar, CIT DR
Section 40A(2)(b)Section 4G

…IN THE INCOME TAX APPELLATE TRIBUNAL CAMP BENCH AT JALANDHAR Before Sh. N. K. Saini, Hon’ble Vice President and Sh. Ravish Sood, Judicial Member ITA No.354/Asr./2014 : Asstt. Year : 2010-11 ITA No.126/Asr./2015 : Asstt. Year : 2012-13 M/s Bright Enterprises Pvt. Ltd., Vs Deputy Commissioner of Income MBD House, Railway Road, Tax, Central Circle-II, Jalandhar Jalandhar (APPELLANT) (RESPONDENT) PAN No. AAACB9469K Assessee by : Sh. Sudhir Sehgal, Adv. Revenue by : Sh. Pawan K. Kumar, CIT DR Date of Hearing : 08.01.2019 Date of Pronouncement : 17.01.2019 ORDER Per N. K. Saini, Vice President: These two appeals…

M/S BRIGHT ENTERPRISES PVT. LTD,,JALANDHAR vs. THE DY. COMMISSIONER OF INCOME-TAX, JALANDHAR

In the result, the appeal of the assessee in ITA No

ITA 354/ASR/2014[2010-11]Status: DisposedITAT Amritsar17 Jan 2019AY 2010-11

Bench: Sh. N. K. Saini, Hon’Ble & Sh. Ravish Soodita No.354/Asr./2014 : Asstt. Year : 2010-11 Ita No.126/Asr./2015 : Asstt. Year : 2012-13 M/S Bright Enterprises Pvt. Ltd., Vs Deputy Commissioner Of Income Mbd House, Railway Road, Tax, Central Circle-Ii, Jalandhar Jalandhar (Appellant) (Respondent) Pan No. Aaacb9469K Assessee By : Sh. Sudhir Sehgal, Adv. Revenue By : Sh. Pawan K. Kumar, Cit Dr Date Of Hearing : 08.01.2019 Date Of Pronouncement : 17.01.2019 Order Per N. K. Saini: These Two Appeals By The Assessee Are Directed Against The Orders Dated 08.05.2014 & 15.01.2015 Of The Ld. Cit(A)-5, Ludhiana For The Assessment Years 2010-11 & 2012-13 Respectively. 2. Since, The Issues Involved Are Common & The Appeals Were Heard Together, So These Are Being Disposed Off By This Consolidated Order For The Sake Of Convenience & Brevity.

For Appellant: Sh. Sudhir Sehgal, AdvFor Respondent: Sh. Pawan K. Kumar, CIT DR
Section 40A(2)(b)Section 4G

…IN THE INCOME TAX APPELLATE TRIBUNAL CAMP BENCH AT JALANDHAR Before Sh. N. K. Saini, Hon’ble Vice President and Sh. Ravish Sood, Judicial Member ITA No.354/Asr./2014 : Asstt. Year : 2010-11 ITA No.126/Asr./2015 : Asstt. Year : 2012-13 M/s Bright Enterprises Pvt. Ltd., Vs Deputy Commissioner of Income MBD House, Railway Road, Tax, Central Circle-II, Jalandhar Jalandhar (APPELLANT) (RESPONDENT) PAN No. AAACB9469K Assessee by : Sh. Sudhir Sehgal, Adv. Revenue by : Sh. Pawan K. Kumar, CIT DR Date of Hearing : 08.01.2019 Date of Pronouncement : 17.01.2019 ORDER Per N. K. Saini, Vice President: These two appeals…

SIGMA RESEARCH & CONSULTING PVT. LTD vs. COMMISSIONER OF INCOME TAX & ANR.

The appeal is allowed and the addition made under Section 40A(2)(a) of the Act

ITA/120/2018HC Delhi12 Dec 2018

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI

Section 260ASection 40ASection 40A(2)(a)

…o objectively check and examine the evidence and material and rationally decide disallowance, if any, which would be justified under Section 40A(2)(a) of the Act. 5. Delhi High Court in Hive Communication Pvt. Ltd. Vs. Commissioner of Income Tax, (2013) 353 ITR 200, has observed that any determination on the question of reasonableness and excessiveness requires several facets and parameters to be kept in mind, albeit the approach has to be from the standpoint of a reasonable and prudent businessman. The Assessing Officer’s judgment of disallowance, if any, to be made has to be an objective and fair de…

M/S. EATON POWER QUALITY PRIVATE LTD.,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,,

In the result, the appeal of assessee in ITA No

ITA 1373/PUN/2014[2007-08]Status: DisposedITAT Pune11 Sept 2018AY 2007-08

Bench: Shri Anil Chaturvedi, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri Vishal KalraFor Respondent: Shri Rajeev Kumar
Section 143(3)

…chand & Co Ltd [1967]65 ITR 381 (SC)  CIT vs B. Dalmia Cement Ltd [2002] 254 ITR 377 (Del)  CIT vs Dhanrajgiri Raja Narasingirji [1973] 91 ITR 544 (SC)  CIT vs Oracle India (P) Ltd [2011] 199 TAXMAN 181 (Delhi)  Hive Communication Private Ltd vs CIT [2013]353 ITR 200 (Del) 4.13 It may also be pointed out that recently the CBDT vide notification G.S.R. 557(E) dated 7th June, 2017, has notified the Safe Harbour Rules, inter alia, for low end intra group services. The CBDT has also acknowledged a mark-up of 5% for such services. It would be appreciated that even from the approach suggested by the CBDT the servic…

M/S EATON POWER QUALITY P.LTD.,PUNE vs. ACIT, PUNE

In the result, the appeal of assessee in ITA No

ITA 119/PUN/2013[2008-09]Status: DisposedITAT Pune11 Sept 2018AY 2008-09

Bench: Shri Anil Chaturvedi, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri Vishal KalraFor Respondent: Shri Rajeev Kumar
Section 143(3)

…chand & Co Ltd [1967]65 ITR 381 (SC)  CIT vs B. Dalmia Cement Ltd [2002] 254 ITR 377 (Del)  CIT vs Dhanrajgiri Raja Narasingirji [1973] 91 ITR 544 (SC)  CIT vs Oracle India (P) Ltd [2011] 199 TAXMAN 181 (Delhi)  Hive Communication Private Ltd vs CIT [2013]353 ITR 200 (Del) 4.13 It may also be pointed out that recently the CBDT vide notification G.S.R. 557(E) dated 7th June, 2017, has notified the Safe Harbour Rules, inter alia, for low end intra group services. The CBDT has also acknowledged a mark-up of 5% for such services. It would be appreciated that even from the approach suggested by the CBDT the servic…

ACIT, NEW DELHI vs. M/S. THE JAY ENGINEERING WORKS LTD., NEW DELHI

In the result, the appeal of the department stands

ITA 4903/DEL/2011[2006-07]Status: DisposedITAT Delhi27 Jun 2018AY 2006-07

Bench: Sh. G.D. Agrawal & Sh. Sudhanshu Srivastavausha International Ltd. Acit (Earlier Known As The Jay Circle-18(1) Engineering Works Ltd.) New Delhi Vs. 19, Kasturba Gandhi Marg New Delhi Pan : Aaact0066A Acit The Jay Engineering Circle-18(1), Room No. 211A, Works Ltd. C.R.Building (Now Usha International New Delhi Ltd.) Vs. Surya Kiran Building, Pan : Aaact0066A 19, K.G.Marg New Delhi (Appellant) (Respondent)

For Appellant: Sh. V.P.Gupta, Sh. Anunav Kumar, AdvFor Respondent: Sh.Vijay Varma, CIT( DR)
Section 143(1)Section 40Section 40ASection 40A(2)(b)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”, NEW DELHI BEFORE SH. G.D. AGRAWAL, PRESIDENT AND SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Usha International Ltd. ACIT (Earlier Known as The Jay Circle-18(1) Engineering Works Ltd.) New Delhi Vs. 19, Kasturba Gandhi Marg New Delhi PAN : AAACT0066A ACIT The Jay Engineering Circle-18(1), Room No. 211A, Works Ltd. C.R.Building (Now USHA International New Delhi Ltd.) Vs. Surya Kiran Building, PAN : AAACT0066A 19, K.G.Marg New Delhi (Appellant) (Respondent) Assessee by : Sh. V.P.Gupta, Sh. Anunav Kumar, Adv. Revenue by : Sh.Vijay Varma, CIT( DR) Date of hearing…

USHA INTERNATIONAL LTD.,NEW DELHI vs. ACIT, NEW DELHI

In the result, the appeal of the department stands

ITA 4747/DEL/2011[2006-07]Status: DisposedITAT Delhi27 Jun 2018AY 2006-07

Bench: Sh. G.D. Agrawal & Sh. Sudhanshu Srivastavausha International Ltd. Acit (Earlier Known As The Jay Circle-18(1) Engineering Works Ltd.) New Delhi Vs. 19, Kasturba Gandhi Marg New Delhi Pan : Aaact0066A Acit The Jay Engineering Circle-18(1), Room No. 211A, Works Ltd. C.R.Building (Now Usha International New Delhi Ltd.) Vs. Surya Kiran Building, Pan : Aaact0066A 19, K.G.Marg New Delhi (Appellant) (Respondent)

For Appellant: Sh. V.P.Gupta, Sh. Anunav Kumar, AdvFor Respondent: Sh.Vijay Varma, CIT( DR)
Section 143(1)Section 40Section 40ASection 40A(2)(b)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”, NEW DELHI BEFORE SH. G.D. AGRAWAL, PRESIDENT AND SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Usha International Ltd. ACIT (Earlier Known as The Jay Circle-18(1) Engineering Works Ltd.) New Delhi Vs. 19, Kasturba Gandhi Marg New Delhi PAN : AAACT0066A ACIT The Jay Engineering Circle-18(1), Room No. 211A, Works Ltd. C.R.Building (Now USHA International New Delhi Ltd.) Vs. Surya Kiran Building, PAN : AAACT0066A 19, K.G.Marg New Delhi (Appellant) (Respondent) Assessee by : Sh. V.P.Gupta, Sh. Anunav Kumar, Adv. Revenue by : Sh.Vijay Varma, CIT( DR) Date of hearing…

SHRAVASTI DEVELOPERS & AGRO PRIVATE LIMITED,MUMBAI vs. ITO- 9(3)(1), MUMBAI

In the result, the appeal of the assessee is treated as partly allowed

ITA 2639/MUM/2016[2012-13]Status: DisposedITAT Mumbai07 Jun 2018AY 2012-13

Bench: Shri B.R. Baskaran (Am)& Shri Pawan Singh (Jm)

Section 40Section 40A(2)(b)

…12% in AY 2013-14 and 2014-15 respectively. Accordingly he submitted that the interest rate was determined as per market conditions and business necessity. He submitted that the Hon’ble Delhi High Court has held in the case of Hive Communications P Ltd (2013)(353 ITR 200) that the benefit accruing to the assessee must also be considered from the angle of a businessman and it is not for the AO to dictate what the business needs of the company should be and he is only to judge the legitimacy of the business needs of the assessee from the point of view of a prudent businessman. Accordingly he submitted that the disa…

GAMESA RENEWABLE PRIVATE LIMITED,CHENNAI vs. ACIT, CHENNAI

In the result, both the appeals of the assessee are partly allowed for statistical purposes

ITA 376/CHNY/2017[2012-13]Status: DisposedITAT Chennai13 Nov 2017AY 2012-13

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Shri B.Ramakrishnan, FCA &For Respondent: Smt. Vijayalakshmi, CIT,D.R
Section 143(3)Section 144C(1)Section 144C(5)

…activities. According to the ld. AR, business transactions of the assessee taken place in the ordinary course cannot be questioned by the TPO and he placed reliance on the judgment of the Delhi High Court in the case of Hive Communication (P) Ltd. vs. CIT (353 ITR 200) wherein the Court in the context of sec.40A(2) has clearly held that while examining the reasonableness of an expenditure, the Assessing Office is expected to exercise his conclusion in a reasonable and fair manner. It should be borne in mind that the provision is meant to check evasion of tax through excessive or unreasonable payments to rela…

GAMESA RENEWABLE PRIVATE LIMITED,CHENNAI vs. DCIT, CHENNAI

In the result, both the appeals of the assessee are partly allowed for statistical purposes

ITA 1420/CHNY/2017[2011-12]Status: DisposedITAT Chennai13 Nov 2017AY 2011-12

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Shri B.Ramakrishnan, FCA &For Respondent: Smt. Vijayalakshmi, CIT,D.R
Section 143(3)Section 144C(1)Section 144C(5)

…activities. According to the ld. AR, business transactions of the assessee taken place in the ordinary course cannot be questioned by the TPO and he placed reliance on the judgment of the Delhi High Court in the case of Hive Communication (P) Ltd. vs. CIT (353 ITR 200) wherein the Court in the context of sec.40A(2) has clearly held that while examining the reasonableness of an expenditure, the Assessing Office is expected to exercise his conclusion in a reasonable and fair manner. It should be borne in mind that the provision is meant to check evasion of tax through excessive or unreasonable payments to rela…

PR. COMMISSIONER OF INCOME TAX vs. M/S. SECOND LEASING PVT. LTD.

ITA/906/2017HC Delhi30 Oct 2017

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

Section 37Section 40A(2)(b)

…the Income Tax Act, 1961 as to the remuneration paid to the assessee’s Executive Director Shri Abhinav Kumar under Section 40A(2)(b). In doing so, the ITAT relied upon the previous ruling of this Court including Hive Communication Pvt. Ltd. v. CIT [2013] 353 ITR 200 (Del). The ITAT also referred to Abbas Wazir Pvt. Ltd. V. CIT [2004] 265 ITR 77 (Alla). It is argued by Mr. Zoheb Hossain, learned counsel that having regard to the relative inexperience of the individual concerned and his qualification – as a Commerce Graduate, the ITAT fell into error in accepting the assessee’s contention that the c…

Showing 1–20 of 30 · Page 1 of 2