Kalpataru Construction Overseas (P.) Ltd. v. Dy. CIT

13 SOT 194Income Tax Appellate Tribunal2007#10136 most cited

What is Kalpataru Construction Overseas (P.) Ltd. v. Dy. CIT authority for?

Disallowance under Section 14A applies to all forms of expenditure, direct or indirect, fixed or variable, administrative, managerial, or financial, that are connected with earning income exempt from tax.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,406 Indian tax judgments — from 2016 to 2022.

Also referred to as

Kalpataru Construction Overseas · Section 14A · disallowance of expenses · exempt income · direct expenses · indirect expenses · managerial expenses · financial expenses · business income

Judgments citing Kalpataru Construction Overseas (P.) Ltd. v. Dy. CIT

Keimed Limited, Hyderabad vs. ACIT, Central Circle-3(1), Chennai

In the result, the appeal filed by the assessee in ITA

ITA 553/CHNY/2019[2015-16]Status: DisposedITAT Chennai31 Jan 2022AY 2015-16

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri G. Manjunathaआयकर अपील सं./Ita Nos.547 & 548, 550, 551 & 553/Chny/2019 िनधा"रण वष" /Assessment Years: 2010-11 & 2012-13, 2013-14, 2014-15 & 2015-16 M/S.Keimed Pvt. Ltd., V. The Asst. Commissioner Of No.10-3-316A, Income Tax, Masab Tank, Central Circle-3(1), Hyderbad-500 028. Chennai-34. [Pan: Aabck 4532 F] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.T.Banusekar, CAFor Respondent: Mr.R.N.Siddappaji, CIT
Section 143(3)Section 14ASection 234B

…the assessee. It is judicially held that disallowance u/s 14A covers all forms of expenditure regardless of whether it is fixed, variable, direct, indirect, administrative, managerial or financial. - Kalpataru Construction Overseas (P.) Ltd, v. Dy. CIT [2007] 13 SOT 194 (Mnm. -Trib.) - Parry ARTO Industries v. Asst. CIT 314 ITR (AT) 181(2009) (Cochin). (D) As per the provisions of Section 14A of the Act, any sum incurred for earning an income exempt from tax cannot be allowed as expenditure in computing the taxable income. It essentially means that the expenses debited to the Profit & Loss Account of the assesse…

Keimed Limited, Hyderabad vs. ACIT, Central Circle-3(1), Chennai

In the result, the appeal filed by the assessee in ITA

ITA 551/CHNY/2019[2014-15]Status: DisposedITAT Chennai31 Jan 2022AY 2014-15

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri G. Manjunathaआयकर अपील सं./Ita Nos.547 & 548, 550, 551 & 553/Chny/2019 िनधा"रण वष" /Assessment Years: 2010-11 & 2012-13, 2013-14, 2014-15 & 2015-16 M/S.Keimed Pvt. Ltd., V. The Asst. Commissioner Of No.10-3-316A, Income Tax, Masab Tank, Central Circle-3(1), Hyderbad-500 028. Chennai-34. [Pan: Aabck 4532 F] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.T.Banusekar, CAFor Respondent: Mr.R.N.Siddappaji, CIT
Section 143(3)Section 14ASection 234B

…the assessee. It is judicially held that disallowance u/s 14A covers all forms of expenditure regardless of whether it is fixed, variable, direct, indirect, administrative, managerial or financial. - Kalpataru Construction Overseas (P.) Ltd, v. Dy. CIT [2007] 13 SOT 194 (Mnm. -Trib.) - Parry ARTO Industries v. Asst. CIT 314 ITR (AT) 181(2009) (Cochin). (D) As per the provisions of Section 14A of the Act, any sum incurred for earning an income exempt from tax cannot be allowed as expenditure in computing the taxable income. It essentially means that the expenses debited to the Profit & Loss Account of the assesse…

Keimed Limited, Hyderabad vs. ACIT, Central Circle-3(1), Chennai

In the result, the appeal filed by the assessee in ITA

ITA 550/CHNY/2019[2013-14]Status: DisposedITAT Chennai31 Jan 2022AY 2013-14

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri G. Manjunathaआयकर अपील सं./Ita Nos.547 & 548, 550, 551 & 553/Chny/2019 िनधा"रण वष" /Assessment Years: 2010-11 & 2012-13, 2013-14, 2014-15 & 2015-16 M/S.Keimed Pvt. Ltd., V. The Asst. Commissioner Of No.10-3-316A, Income Tax, Masab Tank, Central Circle-3(1), Hyderbad-500 028. Chennai-34. [Pan: Aabck 4532 F] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.T.Banusekar, CAFor Respondent: Mr.R.N.Siddappaji, CIT
Section 143(3)Section 14ASection 234B

…the assessee. It is judicially held that disallowance u/s 14A covers all forms of expenditure regardless of whether it is fixed, variable, direct, indirect, administrative, managerial or financial. - Kalpataru Construction Overseas (P.) Ltd, v. Dy. CIT [2007] 13 SOT 194 (Mnm. -Trib.) - Parry ARTO Industries v. Asst. CIT 314 ITR (AT) 181(2009) (Cochin). (D) As per the provisions of Section 14A of the Act, any sum incurred for earning an income exempt from tax cannot be allowed as expenditure in computing the taxable income. It essentially means that the expenses debited to the Profit & Loss Account of the assesse…

Keimed Limited, Hyderabad vs. ACIT, Central Circle-3(1), Chennai

In the result, the appeal filed by the assessee in ITA

ITA 548/CHNY/2019[2012-13]Status: DisposedITAT Chennai31 Jan 2022AY 2012-13

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri G. Manjunathaआयकर अपील सं./Ita Nos.547 & 548, 550, 551 & 553/Chny/2019 िनधा"रण वष" /Assessment Years: 2010-11 & 2012-13, 2013-14, 2014-15 & 2015-16 M/S.Keimed Pvt. Ltd., V. The Asst. Commissioner Of No.10-3-316A, Income Tax, Masab Tank, Central Circle-3(1), Hyderbad-500 028. Chennai-34. [Pan: Aabck 4532 F] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.T.Banusekar, CAFor Respondent: Mr.R.N.Siddappaji, CIT
Section 143(3)Section 14ASection 234B

…the assessee. It is judicially held that disallowance u/s 14A covers all forms of expenditure regardless of whether it is fixed, variable, direct, indirect, administrative, managerial or financial. - Kalpataru Construction Overseas (P.) Ltd, v. Dy. CIT [2007] 13 SOT 194 (Mnm. -Trib.) - Parry ARTO Industries v. Asst. CIT 314 ITR (AT) 181(2009) (Cochin). (D) As per the provisions of Section 14A of the Act, any sum incurred for earning an income exempt from tax cannot be allowed as expenditure in computing the taxable income. It essentially means that the expenses debited to the Profit & Loss Account of the assesse…

Keimed Limited, Hyderabad vs. ACIT, Central Circle-3(1), Chennai

In the result, the appeal filed by the assessee in ITA

ITA 547/CHNY/2019[2010-11]Status: DisposedITAT Chennai31 Jan 2022AY 2010-11

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri G. Manjunathaआयकर अपील सं./Ita Nos.547 & 548, 550, 551 & 553/Chny/2019 िनधा"रण वष" /Assessment Years: 2010-11 & 2012-13, 2013-14, 2014-15 & 2015-16 M/S.Keimed Pvt. Ltd., V. The Asst. Commissioner Of No.10-3-316A, Income Tax, Masab Tank, Central Circle-3(1), Hyderbad-500 028. Chennai-34. [Pan: Aabck 4532 F] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr.T.Banusekar, CAFor Respondent: Mr.R.N.Siddappaji, CIT
Section 143(3)Section 14ASection 234B

…the assessee. It is judicially held that disallowance u/s 14A covers all forms of expenditure regardless of whether it is fixed, variable, direct, indirect, administrative, managerial or financial. - Kalpataru Construction Overseas (P.) Ltd, v. Dy. CIT [2007] 13 SOT 194 (Mnm. -Trib.) - Parry ARTO Industries v. Asst. CIT 314 ITR (AT) 181(2009) (Cochin). (D) As per the provisions of Section 14A of the Act, any sum incurred for earning an income exempt from tax cannot be allowed as expenditure in computing the taxable income. It essentially means that the expenses debited to the Profit & Loss Account of the assesse…

M/S Karnataka State Beverages Corporation Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-4(1)(1), Bangalore

In the result, appeal by the assessee is treated as partly allowed for statistical purposes

ITA 972/BANG/2018[2010-11]Status: DisposedITAT Bangalore29 Jul 2021AY 2010-11

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri. S. V. Ravishankar, AdvocateFor Respondent: Shri. Priyadarshi Mishra, Addl. CIT (DR)(ITAT), Bengaluru
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA Nos. & Assessment Appellant Respondent Years 971/Bang/2018 M/s. Karnataka State ACIT, 2009-10 Beverages Corporation Ltd., Circle - 4(1)(1), 4th Floor, TTMC Building Bengaluru. ‘A’ Block, BMTC, Shantinagar, Bengaluru. PAN : ACAPR 1985 P 972/Bang/2018 -do- -do- 2010-11 1925/Bang/2017 -do- DCIT, 2010-11 Circle - 4(1)(1), Bengaluru. Assessee by : Shri. S. V. Ravishankar, Advocate Revenue by : Shri. Priyadarshi Mishra, Addl. CIT (DR)(ITAT), Bengaluru Date of hearing…

M/S Karnataka State Beverages Corporation Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-4(1)(1), Bangalore

In the result, appeal by the assessee is treated as partly allowed for statistical purposes

ITA 971/BANG/2018[2009-10]Status: DisposedITAT Bangalore29 Jul 2021AY 2009-10

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri. S. V. Ravishankar, AdvocateFor Respondent: Shri. Priyadarshi Mishra, Addl. CIT (DR)(ITAT), Bengaluru
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA Nos. & Assessment Appellant Respondent Years 971/Bang/2018 M/s. Karnataka State ACIT, 2009-10 Beverages Corporation Ltd., Circle - 4(1)(1), 4th Floor, TTMC Building Bengaluru. ‘A’ Block, BMTC, Shantinagar, Bengaluru. PAN : ACAPR 1985 P 972/Bang/2018 -do- -do- 2010-11 1925/Bang/2017 -do- DCIT, 2010-11 Circle - 4(1)(1), Bengaluru. Assessee by : Shri. S. V. Ravishankar, Advocate Revenue by : Shri. Priyadarshi Mishra, Addl. CIT (DR)(ITAT), Bengaluru Date of hearing…

M/S. Karnataka State Bevereges Corporation Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Circle-4(1)(1), Bangalore

In the result, appeal by the assessee is treated as partly allowed for statistical purposes

ITA 1925/BANG/2017[2010-11]Status: DisposedITAT Bangalore29 Jul 2021AY 2010-11

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri. S. V. Ravishankar, AdvocateFor Respondent: Shri. Priyadarshi Mishra, Addl. CIT (DR)(ITAT), Bengaluru
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA Nos. & Assessment Appellant Respondent Years 971/Bang/2018 M/s. Karnataka State ACIT, 2009-10 Beverages Corporation Ltd., Circle - 4(1)(1), 4th Floor, TTMC Building Bengaluru. ‘A’ Block, BMTC, Shantinagar, Bengaluru. PAN : AACCK 1421 A 972/Bang/2018 -do- -do- 2010-11 1925/Bang/2017 -do- DCIT, 2010-11 Circle - 4(1)(1), Bengaluru. Assessee by : Shri. S. V. Ravishankar, Advocate Revenue by : Shri. Priyadarshi Mishra, Addl. CIT (DR)(ITAT), Bengaluru Date of hearing…

Saurashtra Fuels P.Ltd, Mumbai vs. Asst CIT Cir 3(3), Mumbai

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

ITA 7452/MUM/2013[2010-11]Status: DisposedITAT Mumbai25 Aug 2016AY 2010-11

Bench: Shri Shailendra Kumar Yadav, Jm & Shri Rajesh Kumar, Am आयकर अपीऱ सं./I.T.A. No.7452/Mum/2013 (ननधधारण वषा / Assessment Year : 2010-11) बनधम/ M/S Saurashtra Fuels Pvt Ltd- Asstt Commissioner Of Income 93-C, Mittal Tower, Tax, Circle-3(3), Vs. Nariman Point, Room No.609, Aayakar Bhavan, Mumbai-400021 Mumbai-400020

Section 10(34)Section 115JSection 143(1)Section 143(2)Section 14A

…shares/mutual funds. The ld. CIT(A) after considering the reply and submissions of the assessee dismissed the appeal of the assessee on this issue by observing and holding as under : “It has been held in Kalpataru Constructions Overseas (P) Ltd v/s CIT(2007) 13 SOT 194(Mum) that all expenses connected with exempt income have to be disallowed u/s 14A regardless of whether they are direct or indirect, fixed or variable and managerial or financial in accordance with law. Also it has been held in Siva Industries and Holidays Ltd V/s CIT (2012) 54 SOT 49 (Chennai) that even in the year where no exempt income is earne…

Vinyl Chemicals (India) Ltd, Mumbai vs. DCIT RG 3(3), Mumbai

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

ITA 1066/MUM/2014[2010-11]Status: DisposedITAT Mumbai29 Jan 2016AY 2010-11

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 1066/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) Vinyl Chemicals (India) Ltd., बनाम/ Asstt. Commissioner Of Regent Chambers, 7 Th Floor, Income Tax- Range 3 (3), V. Jamnalal Bajaj Marg, 6 Th Floor, Nariman Point, Aayakar Bhavan, Mumbai 400 021. Mumbai- 400 020. "थायी लेखा सं./Pan : Aaacv2410Q (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: Shri Ketan PanchmiaFor Respondent: Shri Airiju Jay Kumar (D.R.)
Section 10(35)Section 143(2)Section 143(3)Section 14ASection 40A(2)

…to exempt income , it cannot be allowed as a deduction even if it otherwise qualifies under the other provisions of the Act.” ITA 1066/Mum/2014 5 The CIT(A) also referred to the decision in the case of Kalpataru Construction Overseas (P) Ltd. v. CIT (2007) 13 SOT 194 (Mum.) wherein it has been held that all expenses connected with exempt income have to be disallowed u/s 14A of the Act regardless of whether they are direct or indirect, fixed or variable and managerial or financial in accordance with law. The CIT(A) held that the A.O. has only taken into account 0.5% of average value of investments on the openin…

Kalpataru Construction Overseas (P.) Ltd. v. Dy. CIT (13 SOT 194) — Cited in 10 Judgments | BharatTax