ITO v. Daga Capital Management (P) Ltd. (117 ITD 169)

The ACIT 4(2)(1), Mumbai vs. M/S. Priyasha Meven Finance Ltd, Mumbai

In the result, both the appeals of the Revenue are dismissed

ITA 5655/MUM/2017[2013-14]Status: DisposedITAT Mumbai26 Mar 2019AY 2013-14

Bench: Shri Rajesh Kumar & Shri Amarjeet Singh

For Appellant: Shri Firoze Andhyarujina, A.RFor Respondent: Shri Abi Rama Kartikeyan, D.R

…intended by the Legislature, the court might modify the language used by the Legislature so as to achieve the intention of the Legislature and produce a rational construction. M/s. Priyasha Meven Finance Ltd. In the case of Daga Capital Management Pvt. Ltd. (117 ITD 169) the Tribunal by majority view held that the ultimate test for considering the retrospective or prospective operation of an amendment is to consider its nature rather than going by the date on which it is stated to be applicable from. In the case of SubhalakshmiVanijya Pvt. Ltd. vs. CIT [(2015) 60 taxmann.com 60 (CalTrib.) held that the amendment…

The DCIT, Circle-1(1)(1), Ahmedabad vs. M/S. Amjay Medimza (India) Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 289/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad04 Mar 2019AY 2012-13

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 289/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 The D.C.I.T, M/S Amjay Medimax(India) Pvt. Circle-1(1)(1), Vs. Ltd. Ahmedabad 4Th Floor, Max House, Opp. Karnavati Hospital, Ellisbridge, Ahmedabad-380 006 Pan : Aabca8241R

For Appellant: Shri Aseem Thakkar, A.RFor Respondent: Shri Rajesh Meena, Sr. DR

Section 14ASection 36(1)Section 36(1)(iii)Section 41(1)

…e interest-free funds were used for making the investment. 10.4 AO also relied in support of his contention on the judgment of Bombay High Court in case of Godrej & Boyce Mfg. Co. Ltd vs. DCIT, Mumbai ITAT in case of ITO vs. Daga capital management (P) Ltd. (117 ITD 169) and circular No. 5/2014, dated 11/02/2014 issued by CBDT. 10.5 Accordingly, AO calculated the amount of Rs. 42,23,658/- under Rule 8D(2)(ii) and Rs. 5,95,868/- under Rule 8D(2)(iii) and disallowed the total of both amounting to Rs. 48,19,529/- u/s 14A r.w. Rule 8D and added to the total income of the assessee. 11. Aggrieved assessee preferred…

Maruti Traders & Investors, Kolkata vs. ACIT, Circle - 31, Kolkata

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

ITA 637/KOL/2018[2013-14]Status: DisposedITAT Kolkata28 Nov 2018AY 2013-14

Bench: Hon’Ble Shri S.S.Godara, Jm & Hon’Ble Shri M.Balaganesh, Am] I.T.A No. 846/Kol/2017 I.T.A. No. 637/Kol/2018 Assessment Year : 2013-14

For Appellant: Shri D.S. Damle, ARFor Respondent: Shri P.K. Srihari, CIT DR

Section 143(3)Section 14A

…vities of the firm and are specifically admissible expenses. The ld AO however disregarded the contentions of the assessee and by placing reliance on the special bench decision of Mumbai Tribunal in the case of ITO vs Daga Capital Management P Ltd reported in 117 ITD 169 and Hon’ble Jurisdictional High Court in the case of Dhanuka & Sons vs CIT reported in 339 ITR 319 (Cal) arrived at the average of shares held as stock in trade and applied 0.5% thereon and made disallowance u/s 14A of the Act in the sum of Rs 28,41,850/-. 2.2. The assessee clearly pointed out from its audited financial statements for the year u…

Maruti Traders & Investors, Kolkata vs. ACIT Circle 31, Kolkata

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

ITA 846/KOL/2017[2013-14]Status: DisposedITAT Kolkata28 Nov 2018AY 2013-14

Bench: Hon’Ble Shri S.S.Godara, Jm & Hon’Ble Shri M.Balaganesh, Am] I.T.A No. 846/Kol/2017 I.T.A. No. 637/Kol/2018 Assessment Year : 2013-14

For Appellant: Shri D.S. Damle, ARFor Respondent: Shri P.K. Srihari, CIT DR

Section 143(3)Section 14A

…vities of the firm and are specifically admissible expenses. The ld AO however disregarded the contentions of the assessee and by placing reliance on the special bench decision of Mumbai Tribunal in the case of ITO vs Daga Capital Management P Ltd reported in 117 ITD 169 and Hon’ble Jurisdictional High Court in the case of Dhanuka & Sons vs CIT reported in 339 ITR 319 (Cal) arrived at the average of shares held as stock in trade and applied 0.5% thereon and made disallowance u/s 14A of the Act in the sum of Rs 28,41,850/-. 2.2. The assessee clearly pointed out from its audited financial statements for the year u…

Itc Limited, Kolkata vs. ACIT, RG-8, Kolkata

Appeal is dismissed

ITA 685/KOL/2014[2009-2010]Status: DisposedITAT Kolkata28 Nov 2018AY 2009-2010

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ]

For Appellant: Shri Md. Usman, CIT DRFor Respondent: Shri J.P. Khaitan, Senior Counsel

Section 143(3)

…e and he made disallowance u/s l4Aon prorate basis. The CIT(A) following his orders for earlier years, accepted the appeal of the assessee. The Tribunal following the decision of the Special Bench in the case of ITO v. Daga Capital Management (P.) Ltd. [2008] 117 ITD 169 (Mum.) restored the matter to the file of the AO for the consideration in the light of the provisions of sub-sec.(2) & (3) of Sec.l4A of the IT Act. The assessee, being aggrieved, filed appeal as well as Writ Petition challenging the constitutional validity of sub-sec. (2) &(3) and Rule D. The Hon'ble High Court save the following findings : “1.…

DCIT, Cir-8, Kolkata vs. M/S Itc Limited, Kolkata

Appeal is dismissed

ITA 1267/KOL/2014[2009-2010]Status: DisposedITAT Kolkata28 Nov 2018AY 2009-2010

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ]

For Appellant: Shri Md. Usman, CIT DRFor Respondent: Shri J.P. Khaitan, Senior Counsel

Section 143(3)

…e and he made disallowance u/s l4Aon prorate basis. The CIT(A) following his orders for earlier years, accepted the appeal of the assessee. The Tribunal following the decision of the Special Bench in the case of ITO v. Daga Capital Management (P.) Ltd. [2008] 117 ITD 169 (Mum.) restored the matter to the file of the AO for the consideration in the light of the provisions of sub-sec.(2) & (3) of Sec.l4A of the IT Act. The assessee, being aggrieved, filed appeal as well as Writ Petition challenging the constitutional validity of sub-sec. (2) &(3) and Rule D. The Hon'ble High Court save the following findings : “1.…

Aangan Agrotech Exports Pvt. Ltd., Ahmedabad vs. The Income Tax Officer, Ward-1(1), Ahmedabad

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

ITA 474/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad08 Oct 2018AY 2010-11

Bench: Shri Pramod Kumar & Shri Mahavir Prasad)

For Appellant: Shri Afaq Saiyed, ARFor Respondent: Shri S. K. Dev, Sr. D.R

Section 10(38)Section 14A

…e Supreme Court would be binding. It may be mentioned that the issue has been specifically dealt at length and has been held in favour of ITA No. 474-Ahd-2015 5 . A.Y. 2010-11 Revenue in the majority decision of M/s. Daga Management Pvt. Ltd. & Others (2009) 117 ITD 169 (Mum.) 9. It is also noted that the various other issues have been extensively covered and decided in favor of the Revenue in the case of ITO V/s. M/s. Daga Capital Management Pvt. Ltd. vide ITA No. 8057/Mum/03 for A.Y. 2001-02 by Hon'ble Mumbai ITAT and Hon'ble High Court Decision in the case of Godrej and Boyce Mfg. Ltd. (Mum.) in ITA No. 626…

Asst CIT 16(2), Mumbai vs. Iqbal M Chagla, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 5593/MUM/2015[2011-12]Status: DisposedITAT Mumbai17 Aug 2018AY 2011-12

Bench: Shri Shamim Yahya (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2011-12 The Asstt. Commissioner Of Shri Iqbal M. Chagla, Income-Tax-16(2), C Block, 3Rd Floor, Room No. 440, 4Th Floor, Pallonji Mansion, Aayakar Bhavan, M.K. Road, Vs. New Cuffe Parade, Colaba, Mumbai - 400020 Mumbai - 400005 Pan: Aabpc2830K (Appellant) (Respondent) Revenue By : Shri Chaudhary Arunkumar Singh (Dr) Assessee By : Ms. Aarti Sathe( Ar) Date Of Hearing: 17/08/2018 Date Of Pronouncement: 17/08/2018

For Appellant: Ms. Aarti Sathe( AR)For Respondent: Shri Chaudhary Arunkumar Singh (DR)

Section 143Section 14A

…se and in law, the ld. CIT (A) was justified in directing to delete the disallowance made u/s 14A read with Rule 8D without considering the ratio laid down by the Special Bench of the ITAT, Mumbai in the case of ITO Vs Daga Capital management Pvt. Ltd. (2009) 117 ITD 169 (Mumbai) and the judgment of Bombay High Court in the case of Godrej & Boyce Manufacturing Co. Ltd. 234 DTR 1 (Bom) in respect of the applicability of the rule 8D for disallowing other expenses or indirect expenses. 5. Whether on facts and in circumstances of the case and in law, the ld. CIT (A) was justified in directing to delete the disallowa…

DCIT - 9(1)(2), Mumbai vs. Atlanta Infra Assets Ltd., Mumbai

In the result, appeals of assessee and Revenue are allowed in part in terms indicated hereinabove

ITA 4769/MUM/2016[2012-13]Status: DisposedITAT Mumbai30 Jul 2018AY 2012-13

Bench: Shri R.C.Sharma, Am & Shri Ram Lal Negi, Jm Dy. Commisioner Of Income Vs. M/S. Atlanta Infra Assets Limited Tax – 9(1)(2) 101, Shree Amba Shanti Room No.260A, Chambers Mumbai Andheri Kurla Road Andheri (E), Mumbai – 400 059 Pan/Gir No. Aaccb7416Q Appellant) .. Respondent) Co No.19/Mum/2018 M/S. Atlanta Infra Assets Limited Vs. Dy. Commissioner Of Income 101, Shree Amba Shanti Chambers Tax – 9(1)(2) Andheri Kurla Road Room No.260A, Andheri (E), Mumbai – 400 059 Mumbai Pan/Gir No. Aaccb7416Q Appellant) .. Respondent) Revenue By Shri H.N. Singh Assessee By Shri Vijay Mehta Date Of Hearing 13/06/2018 Date Of Pronouncement 30/07/2018

For Respondent: - i) "Whether on the facts and in the circumstances of the case

Section 143(3)Section 14ASection 32

…IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI, JM Dy. Commisioner of Income Vs. M/s. Atlanta Infra Assets Limited Tax – 9(1)(2) 101, Shree Amba Shanti Room No.260A, Chambers Mumbai Andheri Kurla Road Andheri (E), Mumbai – 400 059 PAN/GIR No. AACCB7416Q Appellant) .. Respondent) CO No.19/Mum/2018 M/s. Atlanta Infra Assets Limited Vs. Dy. Commissioner of Income 101, Shree Amba Shanti Chambers Tax – 9(1)(2) Andheri Kurla Road Room No.260A, Andheri (E), Mumbai – 400 059 Mumbai PAN/GIR No. AACCB7416Q Appellant) .. Respondent) Revenue by Shri H.N. Singh Assessee…

Crescent Trading P. Ltd, Mumbai vs. Asst CIT Cen Cir 3(3), Mumbai

Appeal is partly allowed

ITA 240/MUM/2017[2012-13]Status: DisposedITAT Mumbai24 Jul 2018AY 2012-13

Bench: Shri G.Manjunatha, Am & Shri Ravish Sood, Jm M/S. Cresent Trading Pvt. Ltd. Asst. Commissioner Of Income-Tax Mandhana Manor, 45, Wing-‘C’, 3(3), Mumbai. बिधम/ Mogul Lane, Matunga Road Vs. (West), Mumbai 400 016. स्थामी रेखा सं./ जीआइआय सं./ Pan No. Aabcc6898A (अऩीराथी /Appellant) (प्रत्मथी / Respondent) :

For Appellant: S/Shri Farrok Irani & Mitesh Shah, A.RsFor Respondent: Shri. Rajat Mittal, D.R

Section 143(2)Section 143(3)Section 14A

…by the Hon’ble Court that disallowance under Rule 8D can be made in the cases involving exempted income, from A.Y. 2008-09 onwards. This issue has also been examined by the Special Bench of ITAT, Mumbai, in the case of Daga Capital Managements (P) Ltd. (2009) 117 ITD 169, wherein applicability of Rule 8D has been upheld for working of disallowance u/s. 14A. The Central Board of Direct Taxes (CBDT), vide circular No. 5 of 2014 dated 11/2/2014, has clarified that disallowance u/s. 14A is to be made, even if no exempted income has been earned by the assessee during the year. It is relevant to mention over here that…

M/S. Borbheta Estate P. Ltd., Kolkata vs. JCIT(OSD)C-4, Kolkata

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

ITA 798/KOL/2017[2009-10]Status: DisposedITAT Kolkata18 Jul 2018AY 2009-10

Bench: Sh. Waseem Ahmed & Sh. S.S.Viswanethra Ravi[Assessment Year: 2009-10] Vs M/S. Borbheta Estate Pvt.Ltd., Jcit(Osd)C-4, 25 Ballygunge Circular Road, Aayakar Bhawan, Kolkata-700019. P-7, Chowringhee Pan-Aabcb1010H Square, Kolkata. (Appellant) (Respondent) Appellant By Sh. H.V.Bhardwaj & Sh. V.N.Purohit, Fca Respondent By Sh. A.Bhattacharjee, Addl. Cit Date Of Hearing 01.05.2018 Date Of Pronouncement 18.07.2018

Section 14A

…(Average value of investment) 446862 Total disallowance u/s.14A 1207107 Less: Disallowance by assessee 314537 892570 (Addition Rs.892570/-) 4. The CIT(A) placing reliance on the decision of Hon’ble Special Bench of ITAT in the case of Daga Capital Marchant 312 ITR 1 (SB) [Mumbai] confirmed the addition made by the AO. The relevant portion is reproduced hereunder:- 3. “Grounds 1 to 3 are disallowance of Rs.8,92,570/- u/s 14A of the IT Act. The AO has made the addition as the assessee has earned dividend income and did not make disallowance u/s 14A. The A.O. has relied upon the decision of Hon'ble Special Bench…

DCIT 9(1)(2), Mumbai vs. Aptech Ltd, Mumbai

In the result, grounds of appeal raised by assessee are allowed

ITA 5568/MUM/2015[2011-12]Status: DisposedITAT Mumbai18 Jul 2018AY 2011-12

Bench: Sh. Sh.Pawan Singh & Sh. N.K. Pradhandcit 8(1), M/S Aptech Ltd. Room No.2010, 2Nd Floor, A-65, Aptech House, Midc Aayakar Bhavan, M.K. Road, Vs. Marol, Andheri (E), Mumbai-20. Mumbai-400093. Pan: Aadca0602L (Revenue /Appellant) (Respondent/ Assessee)

For Appellant: Shri S.C. Tiwari & Rutuja

Section 115JSection 143(3)Section 14ASection 253Section 254(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH “A”, MUMBAI BEFORE SH. SH.PAWAN SINGH, JUDICIAL MEMBER AND SH. N.K. PRADHAN ACCOUNTANT MEMBER DCIT 8(1), M/s Aptech Ltd. Room No.2010, 2nd Floor, A-65, Aptech House, MIDC Aayakar Bhavan, M.K. Road, Vs. Marol, Andheri (E), Mumbai-20. Mumbai-400093. PAN: AADCA0602L (Revenue /Appellant) (Respondent/ Assessee) Revenue by Shri Rajesh Kumar Yadav : ( Sr. DR) Assessee by : Shri S.C. Tiwari & Rutuja Pawar (AR’s) Date of hearing : 18.07.2018 Date of Pronouncement : 18.07.2018 Order Under Section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal b…