ITO v. Daga Capital Management (P) Ltd.

117 ITD 169Income Tax Appellate Tribunal2009#659 most cited
151

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2015 to 2026.

Also referred to as

ITO v. Daga Capital Management · Daga Capital Management · 117 ITD 169 · Section 14A · Rule 8D · dividend income · shares as stock-in-trade · exempt income · business of dealing in shares · disallowance of expenditure · Special Bench ITAT

Sections most often in play

Section 14ASection 115JBSection 37(1)Section 40A(2)(b)Section 92CA(3)Section 115USection 244ASection 271(1)(c)

Issues it is cited on

section 50(1)section 80absection 70(2)section 14a(1)section 54esection 10(33)section 10(15)section 80msection 54eclong-term capital assetsection 36(1)(viii)section 111a

Judgments citing ITO v. Daga Capital Management (P) Ltd.

Ambit Corporate Finance P.Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

In the result, the appeal of Revenue is dismissed and that of 14

ITA 1096/MUM/2015[2011-12]Status: DisposedITAT Mumbai16 Nov 2017AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am The Asst. Commissioner Of Ambit Corporate Finance Income Tax, Circle 3(1), Pvt. Ltd. Room No. 607, 6Th Floor, Ambit House, 1St Floor, 449, Vs. Aayakar Bhavan, Senapati Bapat Marg, Lower Mumbai-400 020 Parel, Mumbai-400 013 Appellant .. Respondent Pan No.Aaaca8834B

For Appellant: Nitesh Joshi, ARFor Respondent: Rajesh Kumar Yadav, DR
Section 143(3)

…as not recorded any satisfaction as can be seen from the assessment order. The learned Counsel took us through the assessment order whereby the AO has relied on the decision of ITAT special Bench, Mumbai, in the case of ITO Vs. Daga Capital Management P. Ltd. 117 ITD 169 (SB) wherein it is held that Rule 8D is retrospective. The relevant Para 6.6 and 6.7 of the AO’s order reads as under: - “6,6 The insertion of section 14A with retrospective effect, from 1.4.1962, is a serious attempt on the part of the ITA No. 1794/Mum/2014, Ambit Corporate Finance Pvt. Ltd. AYs: 08-09, 09-10, 10-11 & 11-12 Legislature not to a…

Ambit Corporate Finance P.Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

In the result, the appeal of Revenue is dismissed and that of 14

ITA 1794/MUM/2014[2010-11]Status: DisposedITAT Mumbai16 Nov 2017AY 2010-11

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am The Asst. Commissioner Of Ambit Corporate Finance Income Tax, Circle 3(1), Pvt. Ltd. Room No. 607, 6Th Floor, Ambit House, 1St Floor, 449, Vs. Aayakar Bhavan, Senapati Bapat Marg, Lower Mumbai-400 020 Parel, Mumbai-400 013 Appellant .. Respondent Pan No.Aaaca8834B

For Appellant: Nitesh Joshi, ARFor Respondent: Rajesh Kumar Yadav, DR
Section 143(3)

…as not recorded any satisfaction as can be seen from the assessment order. The learned Counsel took us through the assessment order whereby the AO has relied on the decision of ITAT special Bench, Mumbai, in the case of ITO Vs. Daga Capital Management P. Ltd. 117 ITD 169 (SB) wherein it is held that Rule 8D is retrospective. The relevant Para 6.6 and 6.7 of the AO’s order reads as under: - “6,6 The insertion of section 14A with retrospective effect, from 1.4.1962, is a serious attempt on the part of the ITA No. 1794/Mum/2014, Ambit Corporate Finance Pvt. Ltd. AYs: 08-09, 09-10, 10-11 & 11-12 Legislature not to a…

Ambit Corporate Finance P.Ltd, Mumbai vs. DCIT RG 3(1), Mumbai

In the result, the appeal of Revenue is dismissed and that of 14

ITA 6250/MUM/2012[2009-10]Status: DisposedITAT Mumbai16 Nov 2017AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am The Asst. Commissioner Of Ambit Corporate Finance Income Tax, Circle 3(1), Pvt. Ltd. Room No. 607, 6Th Floor, Ambit House, 1St Floor, 449, Vs. Aayakar Bhavan, Senapati Bapat Marg, Lower Mumbai-400 020 Parel, Mumbai-400 013 Appellant .. Respondent Pan No.Aaaca8834B

For Appellant: Nitesh Joshi, ARFor Respondent: Rajesh Kumar Yadav, DR
Section 143(3)

…as not recorded any satisfaction as can be seen from the assessment order. The learned Counsel took us through the assessment order whereby the AO has relied on the decision of ITAT special Bench, Mumbai, in the case of ITO Vs. Daga Capital Management P. Ltd. 117 ITD 169 (SB) wherein it is held that Rule 8D is retrospective. The relevant Para 6.6 and 6.7 of the AO’s order reads as under: - “6,6 The insertion of section 14A with retrospective effect, from 1.4.1962, is a serious attempt on the part of the ITA No. 1794/Mum/2014, Ambit Corporate Finance Pvt. Ltd. AYs: 08-09, 09-10, 10-11 & 11-12 Legislature not to a…

Addl.C.I.T.3(1), Mumbai vs. Ambit Corporate Finance Pvt. Ltd., Mumbai

In the result, the appeal of Revenue is dismissed and that of 14

ITA 5991/MUM/2012[2008-09]Status: DisposedITAT Mumbai16 Nov 2017AY 2008-09

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am The Asst. Commissioner Of Ambit Corporate Finance Income Tax, Circle 3(1), Pvt. Ltd. Room No. 607, 6Th Floor, Ambit House, 1St Floor, 449, Vs. Aayakar Bhavan, Senapati Bapat Marg, Lower Mumbai-400 020 Parel, Mumbai-400 013 Appellant .. Respondent Pan No.Aaaca8834B

For Appellant: Nitesh Joshi, ARFor Respondent: Rajesh Kumar Yadav, DR
Section 143(3)

…as not recorded any satisfaction as can be seen from the assessment order. The learned Counsel took us through the assessment order whereby the AO has relied on the decision of ITAT special Bench, Mumbai, in the case of ITO Vs. Daga Capital Management P. Ltd. 117 ITD 169 (SB) wherein it is held that Rule 8D is retrospective. The relevant Para 6.6 and 6.7 of the AO’s order reads as under: - “6,6 The insertion of section 14A with retrospective effect, from 1.4.1962, is a serious attempt on the part of the ITA No. 1794/Mum/2014, Ambit Corporate Finance Pvt. Ltd. AYs: 08-09, 09-10, 10-11 & 11-12 Legislature not to a…

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

In the result , appeal of the Revenue in ITA No

ITA 3284/MUM/2016[2012-13]Status: DisposedITAT Mumbai08 Nov 2017AY 2012-13

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

For Appellant: Shri Shloka ShahaFor Respondent: Shri T.A. Khan
Section 143(3)Section 14A

…Rs.1,43,94,092/ - u/s 14A, thereby ignoring the principles as laid down by jurisdiction Hon'ble Bombay High Court in the case of Godrej and Boyce Limited and the Special Branch of Hon'ble Tribunal in the case of ITO V/s Daga Capital Management (P) Ltd (2009) 117 ITD 169." c) "Whether an the facts and in the circumstances of the case, the Ld. CIT-(A) erred in ignoring the CBDT Circular No. 5 of 2014 dated 11.02.2014 wherein it has been clarified that the term "includible" in the Heading section 14A of the Act and the Heading to Rule 8D of 1. T. Rules, 1962 indicates that for invoking disallowance u/s 14A, it is…

M/S. Renaissance Asset Management Co. Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal filed by the assessee stands allowed

ITA 4462/DEL/2014[2005-06]Status: DisposedITAT Delhi28 Jun 2017AY 2005-06

Bench: Sh. N. K. Saini & Smt. Beena A. Pillairenaissance Asset Dcit, Management Co. Pvt. Ltd. Circle-15(1), 2Nd Floor, Shiv Mahal, B-47 New Delhi Cannaught Place, New Delhi. Vs. Pan : Aabcr6696K (Appellant) (Respondent)

For Appellant: Sh. M. L. Dujari, CAFor Respondent: Sh. Shravan Gotru, Sr. DR
Section 14ASection 254Section 271Section 271(1)Section 271(1)(c)

…ile granting above relief, this Tribunal directed Ld. AO to recompute disallowance under section 14A of the Act, in accordance with Rule 8D of Income Tax Rules in view of Special Bench division, in case of ITO vs. Daga Capital Management Pvt. Ltd, reported in 117 ITD 169, wherein it was held that Rule 8D was retrospective in operation. 3. During original assessment, proceedings under section 271(1)(c) was initiated and penalty of Rs. 9,13,504/- was levied. 4. On further appeal to said penalty levied on recomputation of 14A disallowance read with Rule 8D of the Act was cancelled on merits by Ld. CIT(A), vide order…

Nirmal N Kotecha, Mumbai vs. CIT(28), Mumbai

The appeal of the assessee stands partly allowed

ITA 3700/MUM/2015[2009-10]Status: DisposedITAT Mumbai07 Jun 2017AY 2009-10

Bench: S/Shri Rajendra & Ram Lal Negiआयकर अपील आयकर अपील संसंसंसं./I.T.A./3567/Mum/2015, िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Acit-17(2) Mr. Nirmal N. Kotecha Room No.134, Aayakar Bhavan 601, Sukh Castle, Bhadarkar Road Vs. M.K. Road, Mumbai-400 020. Matunga,Mumbai-400 019. Pan:Aezpk 2016 H (अपीलाथ" /Appellant) (""यथ" / Respondent) आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं./I.T.A./3700/Mum/2015, िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2009-10 वष" Mr. Nirmal N. Kotecha Vs. Acit-17(2) Mumbai-400 019. Mumbai-400 020. (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri Jagdish P. Jangid-Dr Assessee By: Shri Pradeep Kapasi-Ar सुनवाई क" तारीख / Date Of Hearing: 19.05.2017 घोषणा क" तारीख / Date Of Pronouncement: 07.06.2017 आयकर आयकर आयकर अिधिनयम आयकर अिधिनयम अिधिनयम,1961 क" अिधिनयम क" क" धारा क" धारा धारा 254(1)केकेकेके अ"तग"त धारा अ"तग"त अ"तग"त आदेश अ"तग"त आदेश आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा लेखा सद"य लेखा लेखा सद"य सद"य राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार Per Rajendra, Am- अनुसार Challenging The Orders,Dated 27/03/2015,Of The Cit(A)-28,Mumbai,The Assessing Officer (Ao)And The Assessee Have Filed Cross-Appeals For The Above-Mentioned Assessment Year. Assessee,An Individual,Filed His Return Of Income On 30/09/2009, Declaring Total Loss Of Rs. 4. 70Crores.The Ao Completed The Assessment,U/S.143(3) Of The Act,On 29/12/2011,Determining His Income At Rs. 49.29 Crores.

For Appellant: Shri Pradeep Kapasi-ARFor Respondent: Shri Jagdish P. Jangid-DR
Section 14Section 143(3)Section 14ASection 254(1)

…shares as stock in trade and also held that same were to be taken into consideration for computing the disallowance in view of the 3700&3567/M/15 Nirmal N. Kotecha decision of Special Bench of the Tribunal in the case of Daga Capital Management Private Ltd (117 ITD 169).He computed the disallowance under Rule 8D(2) (i) at Rs.5 lakhs, under Rule 8D(2)(ii) at Rs.2.08 crores and under Rule 8D(2)(iii) at Rs. 23.91 lakhs.Thus,total disallowance u/s.14 A read with Rule 8D of the Rules,was computed at Rs.2.32 crores. 2.2.Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Aut…

DCIT 9(3)(2), Mumbai vs. Future Value Retail Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3968/MUM/2015[2011-12]Status: DisposedITAT Mumbai31 May 2017AY 2011-12

Bench: Shri G.S.Pannu & Shri Amarjit Singhthe Dcit-9(3)(2), Aaykar Bhavan,M.K.Road, Mumbai 400 020 ..... Appellant Vs. M/S. Future Value Retail Ltd., Knowledge House, Off Jogeshwari- Vikhroli Link Road, Shyam Nagar, Jogeshwari (E) Mumbai -400 060 Pan: Aaecp 3041P .... Respondent

For Appellant: Shri Rahul RamanFor Respondent: Ms. Dinkle Haria
Section 143(3)Section 14ASection 194HSection 40

…f Rs.23,31,350/- u/s 14A, thereby ignoring the principles as laid down by jurisdictional Hon'ble Bombay High Court in the case of Godrej and Boyce Limited and the Special Branch of Hon'ble Tribunal in the case of ITO Vis Daga Capital Management (P) Ltd (2009) 117 ITD 169?" 5. "Whether on the facts and in the circumstances of the case, the Ld. CIT-(A) erred in deleting the disallowance u/s 14A without appreciating that sub-rule 8D(3) starts with heading "Formula for determination of expenditure" and the three steps prescribed under this sub-rule to compute the expenditure in relation to exempt income and shall be…

Sudhanva Investments & Trading Co. P.Ltd, Mumbai vs. DCIT 8(3), Mumbai

In the result, appeal is allowed for statistical purposes

ITA 7639/MUM/2011[2008-09]Status: DisposedITAT Mumbai24 Apr 2017AY 2008-09

Bench: Shri Joginder Singh () & Shri N.K. Pradhan () Assessment Year: 2008-09

For Appellant: Shri Niraj Sheth, ARFor Respondent: Shri B.S. Bist, DR
Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E” MUMBAI BEFORE SHRI JOGINDER SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2008-09 Sudhanva Investments & Trading Co. Vs. DCIT 8(3) Pvt. Ltd. Room No. 204, 2nd Floor 202/203 Magnum Opus Shantinagar Indl. M.K. Road Estate, Vakola Santacruz (E) Mumbai – 400020 Mumbai - 400055 PAN No. AAACS6353D (Appellant) (Respondent) Assessee by : Shri Niraj Sheth, AR Revenue by: Shri B.S. Bist, DR Date of Hearing : 16/02/2017 Date of pronouncement: 24/04/2017 ORDER PER N.K. PRADHAN, AM This is an appeal filed by the assessee. The…

M/S Kalyani Barter (P) Ltd., Kolkata vs. The ITO, WD-2(3), Kolkata

In the result the assessee’s appeal is dismissed and the revenue’s appeal is partly allowed

ITA 681/KOL/2015[2010-2011]Status: DisposedITAT Kolkata03 Mar 2017AY 2010-2011

Bench: Hon’Ble Shri Waseem Ahmed & Shri S.S.Viswanethra Ravi

Section 10(34)Section 143(3)Section 14A

…ome. Consequently, while Section 14A will still apply in the cases whether shares are held as stock in trade or as investments, and that is precisely what a Special Bench of this Tribunal has held in the case of ITO v. Daga Capital Management (P.) Ltd. [2009] 117 ITD 169 (Mum) the disallowance to be made under section 14 A read with rule 8 D will be restricted to direct expenses incurred in the earning of dividend income. " Therefore, considering the above decisions and the fact that the Appellant was trading in Shares, the same were being held as stock-in-trade which is apparent from the Balance Sheet i.e. the…

S. Mansukhlal & Co., Mumbai vs. DCIT - 14(2), Mumbai

In the result, appeal filed by assessee is allowed

ITA 2780/MUM/2016[2006-07]Status: DisposedITAT Mumbai15 Feb 2017AY 2006-07
For Appellant: Shri Rajan Vora/Nikhil Tiwari(AR)For Respondent: Shri Vishwas Mundhe (DR)
Section 143(3)Section 14ASection 154Section 253Section 254(1)

…while framing the assessment made the disallowance on account of interest expenditure u/s 14A/36(1)(iii) of Rs. 12,62,225/-. On appeal before CIT(A), the Ld. CIT(A) in its order dated 20.05.2009 while relied upon the case of Daga Capital Management Pvt. Ltd. 117 ITD 169(SB) directed the Assessing Officer (AO) to apply Rule 8D of the Act. The AO passed the order giving effect to the order of ld. CIT(A) on 17.02.2011 and made the disallowance of Rs. 5,86,904/-. Before passing the order giving effect, the assessee filed an application for rectification of order dated 20.05.2009 before the ld. CIT(A). On 04.10.2010,…

Bharat Serums and Vaccines Ltd, Mumbai vs. Addl CIT RG 3(1), Mumbai

Appeal of the AO stands dismissed

ITA 3091/MUM/2012[2008-09]Status: DisposedITAT Mumbai15 Feb 2017AY 2008-09
For Appellant: S/Shri Nitesh Joshi & Vipul Mody -ARFor Respondent: Shri Saurabh Kumar Rai-DR
Section 115Section 115JSection 143(3)Section 14ASection 254(1)

…आयकर आयकर अपीलीय आयकर आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, मुंबई अिधकरण मुंबई मुंबई “बी मुंबई बी बी” ” ” ” खंडपीठ बी खंडपीठ खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“B”Bench Mumbai सव"ी राजे"",लेखा सद"य एवं अमरजीत "सह, "याियक सद"य Before S/Sh.Rajendra,Accountant Member and Amarjit Singh,Judicial Member आयकर अपील सं./I.T.A./3091/Mum/2012,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2008-09 िनधा"रण िनधा"रण वष" वष" M/s. Bharat Serums & Vaccines Ltd. ACIT, Range-3(1) 27th Floor, Hoechst House, Nariman Point Aayakar Bhavan, M.K. Marg Vs. Mumbai-21. Mumbai-400 020. PAN:AAACB 2431 M (अपीलाथ" /Appellant)…

DCIT, Cir-12, Kolkata vs. M/S Dalmia Securities Pvt. Ltd., Kolkata

In the result, appeal filed by the Revenue on all the grounds are

ITA 325/KOL/2014[2009-2010]Status: DisposedITAT Kolkata08 Feb 2017AY 2009-2010

Bench: Shri A.T.Varkey, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita No.325/Kol/2014 ("नधा"रण वष" /Assessment Year:2009-2010) Dcit, Circle-12 Vs. M/S Dalmia Securities Pvt. Ltd. P-7, Chowringhee Square, Ideal Plaza, 11/1, Sarat Bose Rd., Aayakar Bhawan, 7Th Floor, Kolkata-700020 Kolkata-700069 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcd 1813 G .. (अपीलाथ" /Appellant) (""यथ" / Respondent) & Cross Objection No.22/Kol/2014 ("नधा"रण वष" /Assessment Year:2009-2010) M/S Dalmia Securities Pvt. Ltd. Vs. Dcit, Circle-12 Ideal Plaza, 11/1, Sarat Bose P-7, Chowringhee Square, Aayakar Bhawan, 7Th Floor, Rd.,Kolkata-700020 Kolkata-700069 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcd 1813 G .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri Ashim Chowdhury, ARFor Respondent: Shri Rajat Kumar Kureel, JCIT
Section 143(3)Section 14ASection 94(7)

…dated 26.06.2014: “Under the facts and circumstances of the case, in our view, the ld CIT(A) rightly held that the assessee was right in his action in netting the interest received against the interest paid”. (3). Daga Capital Management (P) Ltd.-ITAT Mumbai,117 ITD 169 (2009): “Dominant and immediate connection refers to first degree of relation between the two things. However, it would cease to be dominant connection if the degree of relationship slips from first to second. There is a dominant and immediate connection between the expenditure incurred by the assessee in the shape of interest on borrowings for p…

Eastern India Educational Institution, Kolkata vs. ITO, (Exemption)-II, Kolkata

In the result, appeal filed by the assessee is allowed

ITA 654/KOL/2016[2011-2012]Status: DisposedITAT Kolkata07 Dec 2016AY 2011-2012

Bench: Shri N.V.Vasudevan & Dr. A.L.Saini, Am आयकर अपील सं./Ita No.654/Kol/2016 ("नधा"रण वष" / Assessment Year :2011-2012) Eastern India Educational Vs. The Income Tax Officer Institution, (Exemption)-Ii, 10B, Birla Building, 4Th Floor, Middleton Row, 5Th Floor, 9/1, R.N.Mukherjee Road, Kolkata-700071 Kolkata-700071 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaate 0448 G .. (अपीलाथ" /Appellant) (""यथ" / Respondent) "नधा"रती क" ओर से /Assessee By : Shri D.S.Damle, Ar राज"व क" ओर से /Revenue By : Shri G.Mallikarjuna, Cit Dr सुनवाई क" तार"ख / Date Of Hearing : 29/11/2016 घोषणा क" तार"ख/Date Of Pronouncement 07/12/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Appeal Filed By The Assessee, Pertaining To The Assessment Year 2011-2012, Is Directed Against The Order Passed By Ld. Commissioner Of Income Tax (Exemptions), Kolkata, Dated 29.3.2016, U/S.263 Of The I.T.Act. 2. Brief Facts Of The Case Qua The Assessee Are That The Assessment U/S. 143(3) Of The Income Tax Act, 1961 For The Ay. 2011-12 Was Completed An 18.03.2014 Determining The Total Income At Rs. 20,35,850/- . On Further Verification Of Records, It Has Been Found That Dividend Income At Rs.3,21,19,822/- Was Earned By The Assessee & Claimed Exempt U/S. 10(34) Of The I.T. Act, 1961. As Per Provisions Of Section 14A Of The I.T.Act, 1961, Expenditure Incurred In Relation To Income Which Do Not Form Part Of Total Income Requires To Be Disallowed In Accordance With The Provisions Of Rule 8D Of The I. T. Rules, 1962. The Computation Of Such Disallowance Was Made In The Assessment Order, Which Was Determined

For Appellant: Shri D.S.Damle, ARFor Respondent: Shri G.Mallikarjuna, CIT DR
Section 10(34)Section 143(3)Section 14ASection 14A(2)Section 263

…CIT(Central)-I, Kolkata [(2011) 244 CTR 511 (CAL)] and Hon'ble ITAT Mumbai Bench (SMC) in the case of Rhythm Exports P. Ltd Vs. ITA [(2005) 2 SOT 429 MUM (SMC)]. Reference is made to the decision of Hon'ble Court in I.T.O -vs- Daga Capital Management [P] Ltd 117 ITD 169 (SB), where it has been held that - 1. It was unanimously held that provisions of section 14A would override the provisions for computing the total income of an assessee. Thus, disallowance would be justified u/s 14A even if the income is otherwise allowable u/s 36(1)(iii)/57(iii). 2. It was also unanimously held that provisions of sub sections…

D.C.I.T., Circle-4, Kolkata vs. M/S the Scottish Assam (India) Ltd., Kolkata

In the result, the appeal filed by the revenue is dismissed

ITA 2725/KOL/2013[2009-2010]Status: DisposedITAT Kolkata25 Nov 2016AY 2009-2010

Bench: : Shri M.Balaganesh & Shri S.S. Viswanethra Ravi

Section 143(2)Section 14ASection 40

…irect as well as indirect expenditure for earning exempt income. Since the Assessee made no calculation in respect of expenditure, the AO adopted the method as prescribed in Rule 8D, as per the ratio in the case of ITO –vs- Daga Capital Market Pvt. Ltd (2009) 312 ITR 1 (SB) (Mumbai) and M/s. The Scottish Assam (I) Ltd 2 disallowed of Rs.15,63,660/- u/s.14A of the Act, the computation of which is as under: i. Direct expenses related to exempt income Nil ii. Interest debited to P/L A/c (A) 13,09,358/- Average value of investment (B) 10,10,09,365/- Average value of assets (C) 12,49,34,581/- A X B/C 10,58,613 iii…

Anvil Fintrade P. Ltd, Mumbai vs. Asst CIT Cir 2(1), Mumbai

In the result, appeal of the assessee is allowed as above

ITA 6788/MUM/2013[2010-11]Status: DisposedITAT Mumbai09 Nov 2016AY 2010-11

Bench: Shri G.S.Pannu & Shri Ram Lal Negim/S.Anvil Fintrade Pvt. Ltd. 201, 2Nd Floor, Krishna Kunj, Mehta Road, Opp. Sun Flower Hospital, Jvpd Scheme, Vile Parle (W), Mumbai -56. Pan: Aabca 9882 E ...... Appellant Vs. Dy.Commissioner Of Income Tax 2(1), Aaykar Bhavan, Churchgate, Mumbai 40020 .... Respondent

For Appellant: Ms. Neelam C. JhadhavFor Respondent: Shri Arun Shenoy
Section 143(3)Section 14A

…IT(A) in para 5.2.6 of his order held that even the shares considered as stock-in-trade are liable to be considered for the purpose of disallowance following the decision of the Special Bench of the Tribunal in the case of Daga Capital Management (Pvt.) Ltd., 117 ITD 169(SB). In our considered opinion, the stand of the CIT(A) on this aspect is not tenable in view of the subsequent decision of the Mumbai Tribunal in the case of DCIT vs. India Advantage Securities Ltd. dated 14/09/2011 for assessment year 2008-09. In the case of India Advantage Securities Ltd. (supra), the Tribunal, after relying on the judgment of…

DCIT, Circle-6, Kolkata vs. Uco Bank, Kolkata

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

ITA 1281/KOL/2012[2008-2009]Status: DisposedITAT Kolkata05 Oct 2016AY 2008-2009

Bench: Shri M. Balaganesh, Am & Shri S.S. Viswanethra Ravi, Jm]

For Appellant: S/Shri D.S.Damle & Akkal Dudhwewala, FCAFor Respondent: Shri G. Mallikarjuna, CIT, DR
Section 143(3)Section 36(1)(viia)

…the expression ‘value of investments’ and not ‘held as investment’ and this fine distinction has already been considered and upheld by the special bench of Mumbai UCO Bank, AY 2008-09 Tribunal in the case of ITO vs Daga Capital Management (P) Ltd reported in 117 ITD 169 (Mum) (SB). 3.3. We have heard the rival submissions. The facts stated hereinabove remain undisputed and hence the same are not reiterated for the sake of brevity. The dividend received by the assessee is exempt from tax as per section 10 of the Act. The law does not differentiate whether the said dividend is received from investments held as in…

Uco Bank, Kolkata vs. DCIT, Circle -6, Kolkata

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

ITA 1202/KOL/2012[2008-2009]Status: DisposedITAT Kolkata05 Oct 2016AY 2008-2009

Bench: Shri M. Balaganesh, Am & Shri S.S. Viswanethra Ravi, Jm]

For Appellant: S/Shri D.S.Damle & Akkal Dudhwewala, FCAFor Respondent: Shri G. Mallikarjuna, CIT, DR
Section 143(3)Section 36(1)(viia)

…the expression ‘value of investments’ and not ‘held as investment’ and this fine distinction has already been considered and upheld by the special bench of Mumbai UCO Bank, AY 2008-09 Tribunal in the case of ITO vs Daga Capital Management (P) Ltd reported in 117 ITD 169 (Mum) (SB). 3.3. We have heard the rival submissions. The facts stated hereinabove remain undisputed and hence the same are not reiterated for the sake of brevity. The dividend received by the assessee is exempt from tax as per section 10 of the Act. The law does not differentiate whether the said dividend is received from investments held as in…

ACIT Cir 6(3), Mumbai vs. Mahindra Infrastructural Projects P.Ltd ( Now Merged With Andromeda Investment & Finance P. Ltd), Mumbai

In the result, both the appeals filed by the Revenue are dismissed

ITA 2019/MUM/2013[2008-09]Status: DisposedITAT Mumbai05 Oct 2016AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Amarjit Singh

For Appellant: Shri B. Satyanarayana Raju, DRFor Respondent: Shri Prasad M. Bapat
Section 143(3)Section 14ASection 36(1)(iii)

…iture. This Rule provides a uniform and standard method for determining the amount of expenditure incurred in relation to exempt income. The operation of this rule has been declared as retrospective by the Special Bench of the ITAT in Daga Capital Management (117 ITD 169). It has also been held in the same case that expenditure has to be disallowed even if no income by way of dividend is earned during the year. In view of the above, Rule 8D has to be applied in the case of the appellant and the proportionate expenditure in relation to exempt income determined. The AO has followed a method which is not fully conso…

DCIT Cir 3(1), Mumbai vs. Amforge Industries Ltd, Mumbai

In the result, appeal filed by the Revenue in ITA No

ITA 4124/MUM/2014[2007-08]Status: DisposedITAT Mumbai26 Sept 2016AY 2007-08

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.4124/Mum/2014 ("नधा"रण वष" / Assessment Year : 2007-08) Dcit Circle – 3(1), M/S Amforge Industries बनाम/ R. No. 607, 6Th Floor, Ltd., V. Aayakar Bhavan, 108 Reheja Chambers, Mumbai – 400 020. Free Press Journal Marg, Nariman Point, Mumbai 400 021. "थायी लेखा सं./Pan : Aaaca8756A (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: Shri B.V. Jhaveri
Section 10(34)Section 143(3)Section 14A

…of which is relatable to the earning of the dividend income of Rs. 10,19,208/- which had been claimed as exempt by the assessee u/s 10(34) of the Act. The A.O. relied on the decision of Special Bench of ITAT in the case of Daga Capital Management Ltd. (2009) 117 ITD 169(Mumbai)(SB), whereby it was held that Section 14A of the Act is a special provision which deals with disallowance of expenditure incurred by the assessee in relation to income which does not form part of total income. The expenses falling under any head or section which are otherwise deductible as business expenditure or under other respective he…