ITO v. Daga Capital Management (P) Ltd.

ACIT CC-8, Mumbai vs. Jindal Drugs Ltd, Mumbai

In the result, appeals filed by the assessee are allowed in part whereas the appeals filed by the Revenue are dismissed

Bench: Shri R.C. Sharma & Shri Sandeep Gosainassessment Year: - 2005-06 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel 229, Nariman Point, – 8 Aaykar Bhavan, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Appellant Respondent Pan/Gir No. Aaacj1000A Assessment Year: - 2005-06 The Asst. Commissioner Of Vs.` Jindal Drugs Limited Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel – 8 229, Nariman Point, Old Cgo Bldg, Annexe, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Pan/Gir No. Aaacj1000A Appellant Respondent Assessment Year: - 2006-07 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, Income Tax, Central Circel – 8, B&C, Aaykar Bhavan, 229, Nariman Point, M.K. Road, Mumbai – 400 020. Mumbai – 400 021. Pan/Gir No. Aaacj1000A Appellant Respondent

…f investments, then it is to be presumed that investments have been made out of own funds. The Co- ordinate Bench of Tribunal in the case of Tata Projects Ltd. (ITA No. 5862/Mum/2006, after considering the decision in the case of Daga Capital Management Ltd., 117 ITD 169, held that if the investments are made out of own funds no disallowance can be made u/s 14A of the Act.. 2.4 Respectfully following the decisions referred above, we do not find any infirmity in the order of the CIT(A) deleting the disallowance of interest so Page 6 of 39 7 Jindal Drugs Ltd. made. So far as the CIT (A) has upheld the disallowanc…

ACIT CC.8, Mumbai vs. Jindal Drugs Ltd, Mumbai

In the result, appeals filed by the assessee are allowed in part whereas the appeals filed by the Revenue are dismissed

Bench: Shri R.C. Sharma & Shri Sandeep Gosainassessment Year: - 2005-06 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel 229, Nariman Point, – 8 Aaykar Bhavan, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Appellant Respondent Pan/Gir No. Aaacj1000A Assessment Year: - 2005-06 The Asst. Commissioner Of Vs.` Jindal Drugs Limited Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel – 8 229, Nariman Point, Old Cgo Bldg, Annexe, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Pan/Gir No. Aaacj1000A Appellant Respondent Assessment Year: - 2006-07 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, Income Tax, Central Circel – 8, B&C, Aaykar Bhavan, 229, Nariman Point, M.K. Road, Mumbai – 400 020. Mumbai – 400 021. Pan/Gir No. Aaacj1000A Appellant Respondent

…f investments, then it is to be presumed that investments have been made out of own funds. The Co- ordinate Bench of Tribunal in the case of Tata Projects Ltd. (ITA No. 5862/Mum/2006, after considering the decision in the case of Daga Capital Management Ltd., 117 ITD 169, held that if the investments are made out of own funds no disallowance can be made u/s 14A of the Act.. 2.4 Respectfully following the decisions referred above, we do not find any infirmity in the order of the CIT(A) deleting the disallowance of interest so Page 6 of 39 7 Jindal Drugs Ltd. made. So far as the CIT (A) has upheld the disallowanc…

R.R. Chokhan Stocki Brokers P. Ltd, Mumbai vs. ITO 4(2)(3), Mumbai

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

…n as much as assessee did not consider the investment in stock-in-trade of shares and securities. In forming such an opinion, the Assessing Officer relied upon the decision of the Special Bench of the Tribunal in the case of Daga Capital Management Pvt. Ltd., 117 ITD 169. Consequently, the Assessing Officer reworked the disallowance as per Rule 8D of the Rules at Rs.17,45,347/- and the said amount was added to the returned income under section 14A of the Act. The said action of the Assessing Officer has been affirmed by the CIT(A) also. In this background, the assessee is in further appeal before the Tribunal. 4…

Jindal Drugs Ltd, Mumbai vs. ACIT Cen Cir 8, Mumbai

In the result, appeals filed by the assessee are allowed in part whereas the appeals filed by the Revenue are dismissed

Bench: Shri R.C. Sharma & Shri Sandeep Gosainassessment Year: - 2005-06 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel 229, Nariman Point, – 8 Aaykar Bhavan, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Appellant Respondent Pan/Gir No. Aaacj1000A Assessment Year: - 2005-06 The Asst. Commissioner Of Vs.` Jindal Drugs Limited Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel – 8 229, Nariman Point, Old Cgo Bldg, Annexe, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Pan/Gir No. Aaacj1000A Appellant Respondent Assessment Year: - 2006-07 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, Income Tax, Central Circel – 8, B&C, Aaykar Bhavan, 229, Nariman Point, M.K. Road, Mumbai – 400 020. Mumbai – 400 021. Pan/Gir No. Aaacj1000A Appellant Respondent

…f investments, then it is to be presumed that investments have been made out of own funds. The Co- ordinate Bench of Tribunal in the case of Tata Projects Ltd. (ITA No. 5862/Mum/2006, after considering the decision in the case of Daga Capital Management Ltd., 117 ITD 169, held that if the investments are made out of own funds no disallowance can be made u/s 14A of the Act.. 2.4 Respectfully following the decisions referred above, we do not find any infirmity in the order of the CIT(A) deleting the disallowance of interest so Page 6 of 39 7 Jindal Drugs Ltd. made. So far as the CIT (A) has upheld the disallowanc…

ACIT Cen Cir-8, Mumbai vs. M/S. Jindal Drugs Ltd, Mumbai

In the result, appeals filed by the assessee are allowed in part whereas the appeals filed by the Revenue are dismissed

Bench: Shri R.C. Sharma & Shri Sandeep Gosainassessment Year: - 2005-06 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel 229, Nariman Point, – 8 Aaykar Bhavan, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Appellant Respondent Pan/Gir No. Aaacj1000A Assessment Year: - 2005-06 The Asst. Commissioner Of Vs.` Jindal Drugs Limited Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel – 8 229, Nariman Point, Old Cgo Bldg, Annexe, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Pan/Gir No. Aaacj1000A Appellant Respondent Assessment Year: - 2006-07 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, Income Tax, Central Circel – 8, B&C, Aaykar Bhavan, 229, Nariman Point, M.K. Road, Mumbai – 400 020. Mumbai – 400 021. Pan/Gir No. Aaacj1000A Appellant Respondent

…f investments, then it is to be presumed that investments have been made out of own funds. The Co- ordinate Bench of Tribunal in the case of Tata Projects Ltd. (ITA No. 5862/Mum/2006, after considering the decision in the case of Daga Capital Management Ltd., 117 ITD 169, held that if the investments are made out of own funds no disallowance can be made u/s 14A of the Act.. 2.4 Respectfully following the decisions referred above, we do not find any infirmity in the order of the CIT(A) deleting the disallowance of interest so Page 6 of 39 7 Jindal Drugs Ltd. made. So far as the CIT (A) has upheld the disallowanc…

Jindal Drugs Ltd, Mumbai vs. M/S. ACIT Cen Cir-8, Mumbai

In the result, appeals filed by the assessee are allowed in part whereas the appeals filed by the Revenue are dismissed

Bench: Shri R.C. Sharma & Shri Sandeep Gosainassessment Year: - 2005-06 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel 229, Nariman Point, – 8 Aaykar Bhavan, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Appellant Respondent Pan/Gir No. Aaacj1000A Assessment Year: - 2005-06 The Asst. Commissioner Of Vs.` Jindal Drugs Limited Bakhtawar, 6Th Floor, B&C, Income Tax, Central Circel – 8 229, Nariman Point, Old Cgo Bldg, Annexe, Mumbai – 400 021. M.K. Road, Mumbai – 400 020. Pan/Gir No. Aaacj1000A Appellant Respondent Assessment Year: - 2006-07 Jindal Drugs Limited Vs. The Asst. Commissioner Of Bakhtawar, 6Th Floor, Income Tax, Central Circel – 8, B&C, Aaykar Bhavan, 229, Nariman Point, M.K. Road, Mumbai – 400 020. Mumbai – 400 021. Pan/Gir No. Aaacj1000A Appellant Respondent

…f investments, then it is to be presumed that investments have been made out of own funds. The Co- ordinate Bench of Tribunal in the case of Tata Projects Ltd. (ITA No. 5862/Mum/2006, after considering the decision in the case of Daga Capital Management Ltd., 117 ITD 169, held that if the investments are made out of own funds no disallowance can be made u/s 14A of the Act.. 2.4 Respectfully following the decisions referred above, we do not find any infirmity in the order of the CIT(A) deleting the disallowance of interest so Page 6 of 39 7 Jindal Drugs Ltd. made. So far as the CIT (A) has upheld the disallowanc…

Devkant Syntehetics (India) P.Ltd, Mumbai vs. ITO 3(1)(2), Mumbai

In the result, the appeal filed for AY 2009-10 is allowed and the appeals filed for AY 2010-11 and 2011-12 are partly allowed

Bench: S/Shri B.R.Baskaran,Am & Lalit Kumar, Jm आमकय अऩीर सं./I.T.A. No.2663, 2664 & 2665/Mum/2015 (ननधधायण वषा / Assessment Years: 2009-10, 2010-11 & 2011-12) बनाम/ Devkant Synthetics (India) Income Tax Officer 3(1)(2), Pvt.Ltd., Mumbai. Vs. 1006, Raheja Centre, 10Th Floor, Nariman Point, Mumbai-400021 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) .. स्थधमी रेखध सं./जीआइआय सं./Pan : Aaacd2102K अऩीरधथी ओय से / Appellant By Shri Rajiv Khandelwal प्रत्मथी की ओय से/Rspondent By Ms.Anu Aggarwal सुनवधई की तधयीख / Date Of Hearing : 19.8.2015 घोषणध की तधयीख /Date Of Pronouncement: 28.10.2015 आदेश / O R D E R Per B.R.Baskaran:

…arnataka High Court in the case of CCI Ltd (supra) has already been followed by the Tribunal in the case of Ganjam Trading Co.P.Ltd (supra) and also the Special Bench of the Tribunal in the decision rendered in ITO V/s.Daga Capital Management (P.) Ltd. [2009] 117 ITD 169 (MUM.) (SB). However, following the decision of Hon’ble Karnataka High Court in the case of CCI Ltd (supra), the Tribunal held that the disallowance of interest in relation to dividend received from shares held as stock-in-trade cannot be made. 14. In the result, the appeal filed for AY 2009-10 is allowed and the appeals filed for AY 2010-11 and…

Devkant Syntehetics (India) P.Ltd, Mumbai vs. ITO 3(1)(2), Mumbai

In the result, the appeal filed for AY 2009-10 is allowed and the appeals filed for AY 2010-11 and 2011-12 are partly allowed

Bench: S/Shri B.R.Baskaran,Am & Lalit Kumar, Jm आमकय अऩीर सं./I.T.A. No.2663, 2664 & 2665/Mum/2015 (ननधधायण वषा / Assessment Years: 2009-10, 2010-11 & 2011-12) बनाम/ Devkant Synthetics (India) Income Tax Officer 3(1)(2), Pvt.Ltd., Mumbai. Vs. 1006, Raheja Centre, 10Th Floor, Nariman Point, Mumbai-400021 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) .. स्थधमी रेखध सं./जीआइआय सं./Pan : Aaacd2102K अऩीरधथी ओय से / Appellant By Shri Rajiv Khandelwal प्रत्मथी की ओय से/Rspondent By Ms.Anu Aggarwal सुनवधई की तधयीख / Date Of Hearing : 19.8.2015 घोषणध की तधयीख /Date Of Pronouncement: 28.10.2015 आदेश / O R D E R Per B.R.Baskaran:

…arnataka High Court in the case of CCI Ltd (supra) has already been followed by the Tribunal in the case of Ganjam Trading Co.P.Ltd (supra) and also the Special Bench of the Tribunal in the decision rendered in ITO V/s.Daga Capital Management (P.) Ltd. [2009] 117 ITD 169 (MUM.) (SB). However, following the decision of Hon’ble Karnataka High Court in the case of CCI Ltd (supra), the Tribunal held that the disallowance of interest in relation to dividend received from shares held as stock-in-trade cannot be made. 14. In the result, the appeal filed for AY 2009-10 is allowed and the appeals filed for AY 2010-11 and…

Devkant Syntehetics (India) P.Ltd, Mumbai vs. ITO 3(1)(2), Mumbai

In the result, the appeal filed for AY 2009-10 is allowed and the appeals filed for AY 2010-11 and 2011-12 are partly allowed

Bench: S/Shri B.R.Baskaran,Am & Lalit Kumar, Jm आमकय अऩीर सं./I.T.A. No.2663, 2664 & 2665/Mum/2015 (ननधधायण वषा / Assessment Years: 2009-10, 2010-11 & 2011-12) बनाम/ Devkant Synthetics (India) Income Tax Officer 3(1)(2), Pvt.Ltd., Mumbai. Vs. 1006, Raheja Centre, 10Th Floor, Nariman Point, Mumbai-400021 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) .. स्थधमी रेखध सं./जीआइआय सं./Pan : Aaacd2102K अऩीरधथी ओय से / Appellant By Shri Rajiv Khandelwal प्रत्मथी की ओय से/Rspondent By Ms.Anu Aggarwal सुनवधई की तधयीख / Date Of Hearing : 19.8.2015 घोषणध की तधयीख /Date Of Pronouncement: 28.10.2015 आदेश / O R D E R Per B.R.Baskaran:

…arnataka High Court in the case of CCI Ltd (supra) has already been followed by the Tribunal in the case of Ganjam Trading Co.P.Ltd (supra) and also the Special Bench of the Tribunal in the decision rendered in ITO V/s.Daga Capital Management (P.) Ltd. [2009] 117 ITD 169 (MUM.) (SB). However, following the decision of Hon’ble Karnataka High Court in the case of CCI Ltd (supra), the Tribunal held that the disallowance of interest in relation to dividend received from shares held as stock-in-trade cannot be made. 14. In the result, the appeal filed for AY 2009-10 is allowed and the appeals filed for AY 2010-11 and…