Lalsons Enterprises v. CIT

89 ITD 25Income Tax Appellate Tribunal2004#2962 most cited

What is Lalsons Enterprises v. CIT authority for?

Only net interest expenses are to be considered when calculating deductions under section 80HHC of the Income Tax Act. This principle has been affirmed by various courts, including the Supreme Court.

40

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2007 to 2023.

Also referred to as

Lalsons Enterprises v. CIT · 89 ITD 25 · section 80HHC · net interest expenses · business income · deduction calculation · ITAT Delhi Special Bench

Issues it is cited on

section 24(1)section 43(5)speculative transactionsection 80hsection 80hhcsection 80hhfurnishing inaccurate particularsrule 46asection 28section 43section 37(1)section 250(6)

Judgments citing Lalsons Enterprises v. CIT

ACIT, New Delhi vs. M/S. Emaar Mgf Construction Pvt. Ltd., New Delhi

In the result, the appeals of the assessee are allowed and the appeals of the revenue are dismissed

ITA 5827/DEL/2014[2011-12]Status: FixedITAT Delhi26 Dec 2019AY 2011-12

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 1731/Del/2014 : Asstt. Year : 2009-10 Ita No. 1732/Del/2014 : Asstt. Year : 2010-11 Ita No. 6114/Del/2014 : Asstt. Year : 2011-12 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-7, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 2001/Del/2014 : Asstt. Year : 2009-10 Ita No. 2002/Del/2014 : Asstt. Year : 2010-11 Ita No. 5827/Del/2014 : Asstt. Year : 2011-12 Deputy Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-7, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 913/Del/2017 : Asstt. Year : 2013-14 Ita No. 914/Del/2017 : Asstt. Year : 2014-15 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-2, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 1253/Del/2017 : Asstt. Year : 2013-14 Asstt. Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-2, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K

For Appellant: Sh. I. P. Bansal, Adv. &For Respondent: Ms. Nidhi Srivastava, CIT DR

…shown under head “Income from Other Sources”. The Assessing Officer relied on the decision of Hon’ble Delhi High court in Commissioner of Income-tax Vs. Shri Ram Honda Power Equip(2007) 289 ITR 475 (Dei) and on the Special bench of ITAT in Lal Sons enterprise 89 ITD 25 (Del). The Assessing Officer admits that the said decision was given in the context of computation of deduction under section 80HHC however the ratio laid down in those ITA Nos. 1731, 1732, 2001, 59 2002, 5827 & 6114/Del/2014 ITA Nos. 913, 914 & 1253/Del/2017 Emaar MGF Construction Pvt. Ltd. decisions is clear in as much as interest income from…

DCIT, New Delhi vs. M/S. Emaar Mgf Construction Pvt. Ltd., New Delhi

In the result, the appeals of the assessee are allowed and the appeals of the revenue are dismissed

ITA 2001/DEL/2014[2009-10]Status: DisposedITAT Delhi26 Dec 2019AY 2009-10

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 1731/Del/2014 : Asstt. Year : 2009-10 Ita No. 1732/Del/2014 : Asstt. Year : 2010-11 Ita No. 6114/Del/2014 : Asstt. Year : 2011-12 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-7, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 2001/Del/2014 : Asstt. Year : 2009-10 Ita No. 2002/Del/2014 : Asstt. Year : 2010-11 Ita No. 5827/Del/2014 : Asstt. Year : 2011-12 Deputy Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-7, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 913/Del/2017 : Asstt. Year : 2013-14 Ita No. 914/Del/2017 : Asstt. Year : 2014-15 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-2, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 1253/Del/2017 : Asstt. Year : 2013-14 Asstt. Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-2, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K

For Appellant: Sh. I. P. Bansal, Adv. &For Respondent: Ms. Nidhi Srivastava, CIT DR

…shown under head “Income from Other Sources”. The Assessing Officer relied on the decision of Hon’ble Delhi High court in Commissioner of Income-tax Vs. Shri Ram Honda Power Equip(2007) 289 ITR 475 (Dei) and on the Special bench of ITAT in Lal Sons enterprise 89 ITD 25 (Del). The Assessing Officer admits that the said decision was given in the context of computation of deduction under section 80HHC however the ratio laid down in those ITA Nos. 1731, 1732, 2001, 59 2002, 5827 & 6114/Del/2014 ITA Nos. 913, 914 & 1253/Del/2017 Emaar MGF Construction Pvt. Ltd. decisions is clear in as much as interest income from…

M/S. Emaar Mgf Construction Private Limited, New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee are allowed and the appeals of the revenue are dismissed

ITA 1732/DEL/2014[2010-11]Status: FixedITAT Delhi26 Dec 2019AY 2010-11

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 1731/Del/2014 : Asstt. Year : 2009-10 Ita No. 1732/Del/2014 : Asstt. Year : 2010-11 Ita No. 6114/Del/2014 : Asstt. Year : 2011-12 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-7, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 2001/Del/2014 : Asstt. Year : 2009-10 Ita No. 2002/Del/2014 : Asstt. Year : 2010-11 Ita No. 5827/Del/2014 : Asstt. Year : 2011-12 Deputy Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-7, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 913/Del/2017 : Asstt. Year : 2013-14 Ita No. 914/Del/2017 : Asstt. Year : 2014-15 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-2, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 1253/Del/2017 : Asstt. Year : 2013-14 Asstt. Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-2, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K

For Appellant: Sh. I. P. Bansal, Adv. &For Respondent: Ms. Nidhi Srivastava, CIT DR

…shown under head “Income from Other Sources”. The Assessing Officer relied on the decision of Hon’ble Delhi High court in Commissioner of Income-tax Vs. Shri Ram Honda Power Equip(2007) 289 ITR 475 (Dei) and on the Special bench of ITAT in Lal Sons enterprise 89 ITD 25 (Del). The Assessing Officer admits that the said decision was given in the context of computation of deduction under section 80HHC however the ratio laid down in those ITA Nos. 1731, 1732, 2001, 59 2002, 5827 & 6114/Del/2014 ITA Nos. 913, 914 & 1253/Del/2017 Emaar MGF Construction Pvt. Ltd. decisions is clear in as much as interest income from…

M/S. Emaar Mgf Construction Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee are allowed and the appeals of the revenue are dismissed

ITA 6114/DEL/2014[2011-12]Status: FixedITAT Delhi26 Dec 2019AY 2011-12

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 1731/Del/2014 : Asstt. Year : 2009-10 Ita No. 1732/Del/2014 : Asstt. Year : 2010-11 Ita No. 6114/Del/2014 : Asstt. Year : 2011-12 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-7, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 2001/Del/2014 : Asstt. Year : 2009-10 Ita No. 2002/Del/2014 : Asstt. Year : 2010-11 Ita No. 5827/Del/2014 : Asstt. Year : 2011-12 Deputy Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-7, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 913/Del/2017 : Asstt. Year : 2013-14 Ita No. 914/Del/2017 : Asstt. Year : 2014-15 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-2, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 1253/Del/2017 : Asstt. Year : 2013-14 Asstt. Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-2, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K

For Appellant: Sh. I. P. Bansal, Adv. &For Respondent: Ms. Nidhi Srivastava, CIT DR

…shown under head “Income from Other Sources”. The Assessing Officer relied on the decision of Hon’ble Delhi High court in Commissioner of Income-tax Vs. Shri Ram Honda Power Equip(2007) 289 ITR 475 (Dei) and on the Special bench of ITAT in Lal Sons enterprise 89 ITD 25 (Del). The Assessing Officer admits that the said decision was given in the context of computation of deduction under section 80HHC however the ratio laid down in those ITA Nos. 1731, 1732, 2001, 59 2002, 5827 & 6114/Del/2014 ITA Nos. 913, 914 & 1253/Del/2017 Emaar MGF Construction Pvt. Ltd. decisions is clear in as much as interest income from…

DCIT, New Delhi vs. M/S. Emaar Mgf Construction Pvt. Ltd., New Delhi

In the result, the appeals of the assessee are allowed and the appeals of the revenue are dismissed

ITA 2002/DEL/2014[2010-11]Status: FixedITAT Delhi26 Dec 2019AY 2010-11

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 1731/Del/2014 : Asstt. Year : 2009-10 Ita No. 1732/Del/2014 : Asstt. Year : 2010-11 Ita No. 6114/Del/2014 : Asstt. Year : 2011-12 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-7, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 2001/Del/2014 : Asstt. Year : 2009-10 Ita No. 2002/Del/2014 : Asstt. Year : 2010-11 Ita No. 5827/Del/2014 : Asstt. Year : 2011-12 Deputy Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-7, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 913/Del/2017 : Asstt. Year : 2013-14 Ita No. 914/Del/2017 : Asstt. Year : 2014-15 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-2, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 1253/Del/2017 : Asstt. Year : 2013-14 Asstt. Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-2, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K

For Appellant: Sh. I. P. Bansal, Adv. &For Respondent: Ms. Nidhi Srivastava, CIT DR

…shown under head “Income from Other Sources”. The Assessing Officer relied on the decision of Hon’ble Delhi High court in Commissioner of Income-tax Vs. Shri Ram Honda Power Equip(2007) 289 ITR 475 (Dei) and on the Special bench of ITAT in Lal Sons enterprise 89 ITD 25 (Del). The Assessing Officer admits that the said decision was given in the context of computation of deduction under section 80HHC however the ratio laid down in those ITA Nos. 1731, 1732, 2001, 59 2002, 5827 & 6114/Del/2014 ITA Nos. 913, 914 & 1253/Del/2017 Emaar MGF Construction Pvt. Ltd. decisions is clear in as much as interest income from…

M/S. Emaar Mgf Construction Private Limited, New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee are allowed and the appeals of the revenue are dismissed

ITA 1731/DEL/2014[2009-10]Status: DisposedITAT Delhi26 Dec 2019AY 2009-10

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 1731/Del/2014 : Asstt. Year : 2009-10 Ita No. 1732/Del/2014 : Asstt. Year : 2010-11 Ita No. 6114/Del/2014 : Asstt. Year : 2011-12 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-7, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 2001/Del/2014 : Asstt. Year : 2009-10 Ita No. 2002/Del/2014 : Asstt. Year : 2010-11 Ita No. 5827/Del/2014 : Asstt. Year : 2011-12 Deputy Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-7, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 913/Del/2017 : Asstt. Year : 2013-14 Ita No. 914/Del/2017 : Asstt. Year : 2014-15 Emmar Mgf Construction Pvt. Vs Asstt. Commissioner Of Income Ltd., First Floor, Ece House, 28, Tax, Central Circle-2, Kasturba Gandhi Marg, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K Ita No. 1253/Del/2017 : Asstt. Year : 2013-14 Asstt. Commissioner Of Income Vs Emmar Mgf Construction Pvt. Tax, Central Circle-2, Ltd., First Floor, Ece House, 28, New Delhi Kasturba Gandhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabce7912K

For Appellant: Sh. I. P. Bansal, Adv. &For Respondent: Ms. Nidhi Srivastava, CIT DR

…shown under head “Income from Other Sources”. The Assessing Officer relied on the decision of Hon’ble Delhi High court in Commissioner of Income-tax Vs. Shri Ram Honda Power Equip(2007) 289 ITR 475 (Dei) and on the Special bench of ITAT in Lal Sons enterprise 89 ITD 25 (Del). The Assessing Officer admits that the said decision was given in the context of computation of deduction under section 80HHC however the ratio laid down in those ITA Nos. 1731, 1732, 2001, 59 2002, 5827 & 6114/Del/2014 ITA Nos. 913, 914 & 1253/Del/2017 Emaar MGF Construction Pvt. Ltd. decisions is clear in as much as interest income from…

Royal Anti-Biotics & Investments P.Ltd, Mumbai vs. Asst CIT Cir 4(3), Mumbai

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 317/MUM/2015[1998-99]Status: DisposedITAT Mumbai21 Oct 2016AY 1998-99

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

For Appellant: Shri Vishwas Mehendale, A.RFor Respondent: Shri B.S. Bist, D.R
Section 80

…ness, then he would allow the benefit of netting of the impugned receipts M/s. Royal Anti-Biotics & Investments Pvt. Ltd. against the business expenses in terms of the decision of the special bench of the Tribunal in the case of “Lal Sons Enterprises vs. CIT” 89 ITD 25 (SB). The relevant findings of the Tribunal for the sake of convenience are reproduced as under: 7. We have considered the rival submissions. The issue needs to be restored to the file of the learned CIT(A) in order to enable him to record a categorical finding as to the nature of receipts, and in particular, as to whether the impugned receipts are…

Royal Anti-Biotics & Investments P.Ltd, Mumbai vs. Asst CIT Cir 4(3), Mumbai

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 316/MUM/2015[1996-94]Status: DisposedITAT Mumbai21 Oct 2016AY 1996-94

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

For Appellant: Shri Vishwas Mehendale, A.RFor Respondent: Shri B.S. Bist, D.R
Section 80

…ness, then he would allow the benefit of netting of the impugned receipts M/s. Royal Anti-Biotics & Investments Pvt. Ltd. against the business expenses in terms of the decision of the special bench of the Tribunal in the case of “Lal Sons Enterprises vs. CIT” 89 ITD 25 (SB). The relevant findings of the Tribunal for the sake of convenience are reproduced as under: 7. We have considered the rival submissions. The issue needs to be restored to the file of the learned CIT(A) in order to enable him to record a categorical finding as to the nature of receipts, and in particular, as to whether the impugned receipts are…

The DCIT 1(1), Mumbai vs. M/S. Forbes Gokak Ltd, Mumbai

In the result, Revenue’s appeal for A

ITA 1573/MUM/2009[2004-2005]Status: DisposedITAT Mumbai07 Oct 2016AY 2004-2005

Bench: Shri Jason P. Boaz & Shri Sandeep Gosain M/S. Forbes & Company Ltd. D C I T – 1(1) (Formerly Forbes Gokak Ltd.) Room No. 579 Vs. Forbes Bldg., Charanjit Ran Aayakar Bhavan, M.K. Road Marg, Fort, Mumbai 400001 Mumbai 400020 Pan – Aaacf1765A Appellant Respondent D C I T – 1(1) M/S. Forbes & Company Ltd. (Formerly Forbes Gokak Ltd.) Room No. 579 Vs. Forbes Bldg., Charanjit Ran Aayakar Bhavan, M.K. Road Marg, Fort, Mumbai 400001 Mumbai 400020 Pan – Aaacf1765A Appellant Respondent

For Appellant: Shri Girish Dave &For Respondent: Shri Pratap Sinh &
Section 115JSection 143(3)Section 14ASection 295(4)Section 80H

…he case of ACG Associated Capsules (P) Ltd. vs. CIT (2012) 343 ITR 89 (SC); of the Hon'ble Delhi High Court in the case of Shri Ram Honda Power Equipments (2007) 289 ITR 475 (Del) and of the ITAT Delhi (Special Bench) in the case of Lalsons Enterprises (2004) 89 ITD 25 (Del SB). Respectfully following these decisions (supra), we confirm the decision of the learned CIT(A) in holding and directing the AO, that for the purpose of computing the deduction under section 80HHC if the Act, the net interest is to be considered. Consequently, Revenue’s ground No. 2 is dismissed. 16. Ground No. 3 – Deduction under section 8…

Forbes & Company Limited (Formerly Known As Forbes Gokak Limited), Mumbai vs. Dy.C.I.T-1(1), Mumbai

In the result, Revenue’s appeal for A

ITA 1382/MUM/2009[2004-2005]Status: DisposedITAT Mumbai07 Oct 2016AY 2004-2005

Bench: Shri Jason P. Boaz & Shri Sandeep Gosain M/S. Forbes & Company Ltd. D C I T – 1(1) (Formerly Forbes Gokak Ltd.) Room No. 579 Vs. Forbes Bldg., Charanjit Ran Aayakar Bhavan, M.K. Road Marg, Fort, Mumbai 400001 Mumbai 400020 Pan – Aaacf1765A Appellant Respondent D C I T – 1(1) M/S. Forbes & Company Ltd. (Formerly Forbes Gokak Ltd.) Room No. 579 Vs. Forbes Bldg., Charanjit Ran Aayakar Bhavan, M.K. Road Marg, Fort, Mumbai 400001 Mumbai 400020 Pan – Aaacf1765A Appellant Respondent

For Appellant: Shri Girish Dave &For Respondent: Shri Pratap Sinh &
Section 115JSection 143(3)Section 14ASection 295(4)Section 80H

…he case of ACG Associated Capsules (P) Ltd. vs. CIT (2012) 343 ITR 89 (SC); of the Hon'ble Delhi High Court in the case of Shri Ram Honda Power Equipments (2007) 289 ITR 475 (Del) and of the ITAT Delhi (Special Bench) in the case of Lalsons Enterprises (2004) 89 ITD 25 (Del SB). Respectfully following these decisions (supra), we confirm the decision of the learned CIT(A) in holding and directing the AO, that for the purpose of computing the deduction under section 80HHC if the Act, the net interest is to be considered. Consequently, Revenue’s ground No. 2 is dismissed. 16. Ground No. 3 – Deduction under section 8…

M/S. Mirabelle International, New Delhi vs. DCIT, Delhi

In the result, appeal of the assessee is allowed

ITA 2258/DEL/2014[2002-03]Status: DisposedITAT Delhi05 Sept 2016AY 2002-03

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2002-03 M/S. Mirabelle International, Vs. Deputy Commissioner Of 13/14, Windsor Mansion, Income Tax, Circle-31(1), 14Th Janpath Lane, New Delhi 1405, Floor, Civic Centre, Delhi. Pan : Aabfm1743P (Appellant) (Respondent) Appellant By Ms. Charu Goel, Ca Respondent By Sh. Surender Pal, Sr. Dr Date Of Hearing 19.07.2016 Date Of Pronouncement 05.09.2016 Order Per O.P. Kant, A.M.: This Appeal By The Assessee Is Directed Against Order Dated 07/02/2014 By The Learned Commissioner Of Income-Tax (Appeals)-Xxvi, New Delhi For Assessment Year 2002-03, Raising Following Grounds Of Appeal: I. That The Learned Commissioner Of Income Tax (Appeals)- Xxvi Is Wrong Is Deterring The Total Income At Rs. 2,55,22,744/-. Ii. That The Learned Commissioner Of Income Tax Is Wrong Is Ignoring All Material Fact & Evidence & Evidence Produced Before Him While Computing The Total Income. Iii. That The Computation Of Total Income Is Bad In Law & Is Against The Actual Facts & Evidence On Record.

Section 143(3)Section 57Section 80H

…ch in the case of Rajeev Enterprises, 78 TTJ 330. The learned Commissioner of Income Tax (Appeals) further observed that netting was to be done in the light of the special bench decision in the case of Lalson Enterprises Vs. Deputy Commissioner of Income Tax, 89 ITD 25 (Del.) (SB). Against the finding of the learned Commissioner of Income Tax (Appeals), the Revenue appealed to the Tribunal. The Tribunal upheld the finding of the learned Commissioner of Income Tax (Appeals) in the case of Laxminarain Khaitan (supra) with following observations: “18. The case of the assessee was decided by this Tribunal vide order…

Ucb Indiap.Ltd, Mumbai vs. ITO 7(3)(3), Mumbai

In the result, the appeals filed by the Revenue in ITA Nos

ITA 6681/MUM/2013[2004-05]Status: DisposedITAT Mumbai18 May 2016AY 2004-05

Bench: Shri Rajendra & Shri C.N. Prasadआयकर अपील सं /I.Ta No. 6681/Mum/2013 ("नधा"रण वष" / Assessment Year: 2004-05 Ucb India Pvt. Ltd., The Ito 7(3)-3, बनाम/ 504, Peninsula Towers, Aayakar Bhavan, Vs. G.K. Marg, Lower Parel, Mumbai-400 020 Mumbai-400 013 आयकर अपील सं /I.Ta No. 6454/Mum/2013 ("नधा"रण वष" / Assessment Year: 2004-05 The Ito 7(3)-3, Ucb India Pvt. Ltd., बनाम/ Aayakar Bhavan, 504, Peninsula Towers, Vs. Mumbai-400 020 G.K. Marg, Lower Parel, Mumbai-400 013

For Appellant: Shri Pranay Gandhi

…’ble Bombay High Court in the case of India Supply Jewels Ltd. (284 ITR 389) has held that interest on current account is assessable as business income. He further submits that the Co-ordinate Bench relying on the decisions in the case of Lalsons Enterprises (89 ITD 25 (SB)] and Sriram Power Equipment held that only the net interest has to be eliminated under clause (baa) of Explanation to Sec. 80HHC of the Act. The Ld. Counsel submits that the Hon’ble Supreme Court in the case of ACG Associates Capsules Pvt. Ltd Vs CIT (343 ITR 89) has held that only the net interest should be excluded while computing the deduc…

Commissioner of Income Tax Del vs. M/S Maruti Udyog Ltd

The appeal is dismissed with the aforesaid observations

ITA-1041/2005HC Delhi30 Nov 2011

Bench: The Tribunal Was Whether Interest Income Earned By The Assessee Could Be Assessed Under 2011:Dhc:6112-Db

For Appellant: Mr Sanjeev SabharwalFor Respondent: Mr S.Ganesh Sr. Advocate with Mr S.Sukumaran
Section 260ASection 80H

…ome should be against net interest i.e. after adjusting the interest paid while the stand of the revenue is that exclusion of 90% should be gross interest. This issue now stands covered by the decision of Special bench in the case of Lalsons Enterprises, 89 ITD 25 where in it has been held that 90% exclusion should be of net interest if there is nexus between the interest received and interest paid. This aspect requires verification. Therefore, the order of the CIT(A) is set aside on this aspect of the issue and the matter is restored to the file of AO for fresh computation in accordance with the deci…

Commissioner of Income Tax Del vs. M/S Maruti Udyog Ltd

The appeal is dismissed with the aforesaid observations

ITA/1041/2005HC Delhi30 Nov 2011

Bench: The Tribunal Was Whether Interest Income Earned By The Assessee Could Be Assessed Under 2011:Dhc:6112-Db

For Appellant: Mr Sanjeev SabharwalFor Respondent: Mr S.Ganesh Sr. Advocate with Mr S.Sukumaran
Section 260ASection 80H

…ome should be against net interest i.e. after adjusting the interest paid while the stand of the revenue is that exclusion of 90% should be gross interest. This issue now stands covered by the decision of Special bench in the case of Lalsons Enterprises, 89 ITD 25 where in it has been held that 90% exclusion should be of net interest if there is nexus between the interest received and interest paid. This aspect requires verification. Therefore, the order of the CIT(A) is set aside on this aspect of the issue and the matter is restored to the file of AO for fresh computation in accordance with the deci…

Commissioner of Income Tax Delhi-V vs. Nectar Life Science Ltd

ITA/125/2009HC Delhi20 Oct 2011

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 80H

…fer from the judgments of the Punjab and Haryana High Court in Rani Paliwal [2004] 268 ITR 220 and the Madras High Court in Chinnapandi [2006] 282 ITR 389 and affirm the ruling of the Special Bench of the Income-tax Appellate Tribunal in Lalsons [2004] 89 ITD 25 (Delhi). (ix) Where, as a result of the computation of profits and gains of business and profession, the Assessing Officer treats the interest receipt as business income, then deduction should be permissible, in terms of Explanation (baa) of the net interest, i.e., the gross interest less the expenditure incurred for the purposes of e…

CIT vs. Nectar Lifesciences Ltd

The appeal is disposed of

ITA/1543/2010HC Delhi20 Oct 2011

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 260ASection 80Section 80H

…fer from the judgments of the Punjab and Haryana High Court in Rani Paliwal [2004] 268 ITR 220 and the Madras High Court in Chinnapandi [2006] 282 ITR 389 and affirm the ruling of the Special Bench of the Income-tax Appellate Tribunal in Lalsons [2004] 89 ITD 25 (Delhi). (ix) Where, as a result of the computation of profits and gains of business and profession, the Assessing Officer treats the interest receipt as business income, then deduction should be permissible, in terms of Explanation (baa) of the net interest, i.e., the gross interest less the expenditure incurred for the purposes of ear…

CIT vs. Delhi Brass & Metal Works Ltd

In the result, the impugned judgment of the Tribunal is set aside

ITA - 653 / 2007HC Delhi21 Nov 2008
For Appellant: Ms Prem Lata BansalFor Respondent: None
Section 143Section 260ASection 80

…and interest received there from was inextricably linked with the business interest income and interest paid is justified. Further, this issue squarely covered by the decision of the special Bench of ITAT, New Delhi in the case of Lal Sons Enterprises, 89 ITD 25 (Del) (SB). Assessing Officer is directed to compute the profit of the business under explanation (baa) of Sec. 80 HHC by deducting 90%net interest…...” 9. As noted above, the Revenue being aggrieved has preferred the present appeal before us. The learned counsel for the Revenue, Ms Bansal, has submitted that, the impugned judgment d…

Commissioner of Income Tax

In the result, the impugned judgment of the Tribunal is set aside

ITA/653/2007HC Delhi21 Nov 2008
For Appellant: Ms Prem Lata BansalFor Respondent: None
Section 143Section 260ASection 80

…and interest received there from was inextricably linked with the business interest income and interest paid is justified. Further, this issue squarely covered by the decision of the special Bench of ITAT, New Delhi in the case of Lal Sons Enterprises, 89 ITD 25 (Del) (SB). Assessing Officer is directed to compute the profit of the business under explanation (baa) of Sec. 80 HHC by deducting 90%net interest…...” 9. As noted above, the Revenue being aggrieved has preferred the present appeal before us. The learned counsel for the Revenue, Ms Bansal, has submitted that, the impugned judgment d…

M/S Kashmir Arts vs. Commissioner of Income Tax VII

The appeal is dismissed

ITA/84/2005HC Delhi12 Oct 2007

Bench: It Under Section 254(2) Of The Act Seeking Rectification Of Its Order Dated 30Th September, 2003 By Which It Dismissed The Assessee’S Appeal. 1.2 It Requires To Be Noticed That The Appellant Had Challenged The Main Order Dated 30Th September, 2003 Passed By The Tribunal Dismissing Ita No. 2007:Dhc:1282-Db

Section 143Section 254(2)Section 260Section 80Section 80H

…ted to the export business could not be treated as income derived from the export business.” Accordingly the appeal filed by the Revenue was allowed. 7. After the decision of the Special Bench of the Tribunal in Lalsons Enterprises v. Deputy CIT (2004) 89 ITD 25 (Del) [SB], the assessee filed an application before the Tribunal under Section 254 (2) of the Act for rectification stating that it was entitled to netting of interest in terms of that decision. By its order dated 7th October, 2004 the Tribunal dismissed the application on the ground that the judgment in Lalsons Enterprises had…

Commissioner of Income Tax-V N vs. Damanjit Singh

ITA/166/2000HC Delhi12 Jan 2007

…interest less the expenditure incurred by the assessee in earning such interest. The Tribunal's decision in Lal Sons Enterprises 26.1 Since much reliance has been placed by the assessees on the decision of the ITAT in Lalsons Enterprises v. DCIT [2004] 89 ITD 25 (Del) (SB), we propose to discuss the decision at some length. At the outset it must be noticed that the Tribunal in Lalsons proceeded on the footing that in the batch of cases before it, no question was raised that interest income should be categorized as income from other sources. In other words, the judgment of the Tribunal proceeded on the…