ITO v. Mokul Finance (P) Ltd.

SNW SMITH CONSULTANT PRIVATE LIMITED,NEW DELHI vs. DCIT CENTRAL CIRCLE 5, NEW DELHI

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

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmansnw Smith Consultant Private Limited, Vs. Dcit, Central Circle 5, 112-Gl, Antriksh Bhawan, New Delhi. 22, Kg Marg, New Delhi – 110 001. (Pan : Aakcs4626B) (Appellant) (Respondent) Assessee By : Ms. Hasneeta Matta, Advocate Shri Mahan Kalra, Advocate Revenue By : Shri Manish Gupta, Sr. Dr Date Of Hearing : 10.07.2025 Date Of Order : 08.10.2025 O R D E R Per S. Rifaur Rahman: 1. This Appeal Is Filed By The Assessee Against The Order Of The Ld. Commissioner Of Income-Tax (Appeals)-24, New Delhi (For Short ‘Ld. Cit (A)) For The Assessment Year 2018-19. 2. Brief Facts Of The Case Are, This Is Second Round Of Appeal After Setting Aside The Appeal Preferred By The Assessee To The File Of The Ao By The Coordinate Bench Vide Ita No.1588/Del/2020 To Verify The Expenditures Claimed By The Assessee Even Though There Was No Business Income

…that the expenditure that he had incurred was expended for the purpose of his business. 3.6. The above ratio has been followed by this Hon'ble jurisdictional Tribunal in a plethora of cases, e.g., Hon'ble Delhi Tribunal in ITO v. Mokul Finance (P) Ltd. [2009] 29 SOT 11 (Delhi) (URO); Hon'ble Delhi Tribunal in DCIT v. NCR Business Park (P.) Ltd [2022J 141 taxmann.com 563 (Delhi - Trib.). 4. Key issues in appeal Lawyer Fees - not for litigation but Advisory and drafting of proposals 4.1. The Ld. AO/CIT(A) have disallowed two expenses. one, on account of Lawyers fees towards seeking legal guidance/opinion (pages 70…

ACIT, CENTRAL CIRCLE-6, NEW DELHI vs. FIITJEE EDUSOFT LTD (MERGED WITH FIITJEE LTD), NEW DELHI

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

…was not related to assessee’s business. Thereafter, ld. Counsel for the assessee referred to plethora of case laws in this regard as under:- l. CIT vs E-funds International India (2007) 162 Taxmann 1 Delhi High Court 2. ITO vs Mokul Finance (P) Ltd. (2009) 29 SOT 11 Delhi Tribunal 3. CIT vs Ganga Properties Ltd. (1992) 62 Taxmann 286 Calcutta High Court 4. L.Ve. Vairavan Chettiar vs CIT (1969) 72 ITR 114 Madras High Court 5. ITO vs Patel Corp. P Ltd. [2017] 86 taxmann.com 82 Mumbai Tribunal 6. Akarsh Printers Ltd., Kolkata vs Department Of Income Tax I.T.A.No.2279 (Kol) of 2007 Kolkata Tribunal 7. Pr. Comm…

FIITJEE EDUSOFT LTD (MERGED WITH FIITJEE LTD),NEW DELHI vs. ACIT, CENTRAL CIRCLE-6, NEW DELHI

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

…was not related to assessee’s business. Thereafter, ld. Counsel for the assessee referred to plethora of case laws in this regard as under:- l. CIT vs E-funds International India (2007) 162 Taxmann 1 Delhi High Court 2. ITO vs Mokul Finance (P) Ltd. (2009) 29 SOT 11 Delhi Tribunal 3. CIT vs Ganga Properties Ltd. (1992) 62 Taxmann 286 Calcutta High Court 4. L.Ve. Vairavan Chettiar vs CIT (1969) 72 ITR 114 Madras High Court 5. ITO vs Patel Corp. P Ltd. [2017] 86 taxmann.com 82 Mumbai Tribunal 6. Akarsh Printers Ltd., Kolkata vs Department Of Income Tax I.T.A.No.2279 (Kol) of 2007 Kolkata Tribunal 7. Pr. Comm…

ITO, NEW DELHI vs. M/S. NAHAR RETAIL TRADING SERVICES LTD., NEW DELHI

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

Bench: Shri N.K. Billaiya & Shri Kuldip Singh

…r maintaining corporate structure of the assessee. In our considered view, such expenditure has to be allowed while computing the income of the assessee. Our this view is fortified by the decision of the co-ordinate bench in the case of Mokul Finance Pvt Ltd 29 SOT 11. The relevant findings of the co-ordinate bench read as under: “3. The material facts of the case are like this. The assessee is a domestic company and, in the relevant previous year, it had income only from interest and dividend. In the course of scrutiny assessment proceedings, the AO noticed that no business activities were carried out by the…

NAHAR RETAIL TRADING SERVICES LTD.,NEW DELHI vs. ITO, NEW DELHI

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

Bench: Shri N.K. Billaiya & Shri Kuldip Singh

…r maintaining corporate structure of the assessee. In our considered view, such expenditure has to be allowed while computing the income of the assessee. Our this view is fortified by the decision of the co-ordinate bench in the case of Mokul Finance Pvt Ltd 29 SOT 11. The relevant findings of the co-ordinate bench read as under: “3. The material facts of the case are like this. The assessee is a domestic company and, in the relevant previous year, it had income only from interest and dividend. In the course of scrutiny assessment proceedings, the AO noticed that no business activities were carried out by the…

M/S. IDEAL HITECH ENGINEERING EQUIPMENT (P) LTD.,NEW DELHI vs. ITO, NEW DELHI

In the result, appeal of the assessee is allowed

Bench: Shri H.S. Sidhu & Dr. B.R.R. Kumar

…rd, reliance is placed on the following judgments: Inder Chand Hari Ram Vs CIT, Allahabad High Court, [1953] 23 ITR 437 Arkaaye Builders & Developers Pvt. Ltd. Versus ITO, Ward-2(1), New Delhi, ITAT Delhi, Income-tax Officer v. Mokul Finance (P.) Ltd, [2009] 29 SOT 11 (DELHI)(URO) L.VE. Vairavan Chettiar Versus Commissioner of Income-Tax, Madras. MADRAS High Court, 72 ITR 114 28. Further, it has also been appreciated in a number of judgments while dealing with the question of allowability of expenses in absence of business income that as long as the company is in existence, it is required to comply with various…