Macintosh Finance Estates Ltd. v. ACIT

12 SOT 324Income Tax Appellate Tribunal2007#8705 most cited

What is Macintosh Finance Estates Ltd. v. ACIT authority for?

Interest expenses incurred for holding shares as investment cannot be added to the cost of investment, even if dividend income from those shares is exempt, because interest is allowable under the head 'income from other sources'.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2017 to 2024.

Also referred to as

Macintosh Finance Estates Ltd. v. ACIT · 12 SOT 324 · interest expenses · cost of investment · holding shares · dividend income · exempt income · income from other sources · capital gains

Sections most often in play

Section 115JBSection 143(3)Section 14ASection 263Section 48

Judgments citing Macintosh Finance Estates Ltd. v. ACIT

Income Tax Officer, Mumbai vs. Barindra Overseas Pvt. Ltd., Mumbai

In the result, the appeals of the revenue for AY 2010-11 and 2011-12 are dismissed

ITA 2606/MUM/2023[2011-2012]Status: DisposedITAT Mumbai10 May 2024AY 2011-2012

Bench: Shri Pavan Kumar Gadale, Jm & Ms Padmavathy S, Am

For Respondent: Shri Laxmi Kant , Sr. DR
Section 115Section 115JSection 143(3)Section 14ASection 263Section 48

…ital gains. The conclusion of the CIT(A) thus deserves to be affirmed. 4. Before us, the Ld. DR however referred to the decisions of Mumbai Bench of the Tribunal in the case of Macintosh Finance Estates Limited Vs. Additional Commissioner of Income Tax (2007) 12 SOT 324. The question before the Tribunal in the case of Macintosh Finance Estates Limited (supra) was as to whether interest expenses incurred for holding shares as investment can be added to the cost of investment. The Tribunal noted the factual matrix of the case before it and found that the assessee therein was earning dividend income from the investm…

Income Tax Officer, Mumbai vs. Barindra Overseas Pvt. Ltd., Mumbai

In the result, the appeals of the revenue for AY 2010-11 and 2011-12 are dismissed

ITA 2605/MUM/2023[2010-2011]Status: DisposedITAT Mumbai10 May 2024AY 2010-2011

Bench: Shri Pavan Kumar Gadale, Jm & Ms Padmavathy S, Am

For Respondent: Shri Laxmi Kant , Sr. DR
Section 115Section 115JSection 143(3)Section 14ASection 263Section 48

…ital gains. The conclusion of the CIT(A) thus deserves to be affirmed. 4. Before us, the Ld. DR however referred to the decisions of Mumbai Bench of the Tribunal in the case of Macintosh Finance Estates Limited Vs. Additional Commissioner of Income Tax (2007) 12 SOT 324. The question before the Tribunal in the case of Macintosh Finance Estates Limited (supra) was as to whether interest expenses incurred for holding shares as investment can be added to the cost of investment. The Tribunal noted the factual matrix of the case before it and found that the assessee therein was earning dividend income from the investm…

M/S. Aban Offshore Limited, Chennai vs. Dcitcorporate Circle1(1), Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 798/CHNY/2020[2011-12]Status: DisposedITAT Chennai08 Nov 2023AY 2011-12

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./It(Tp)A Nos.: 21/Chny/2022 & 40/Chny/2022 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Tpo Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita Nos.: 797 & 798/Chny/2020 िनधा"रण वष" / Assessment Years: 2011-12 & आयकर अपील सं./Ita No.: 2757/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita No.: 1672/Chny/2019 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of V. 113, Janpriya Crestpantheon Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. P. Murali Mohana Rao, Ca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 27.09.2023 घोषणा क" तारीख/Date Of Pronouncement : 08.11.2023

For Respondent: Shri. A. Sasikumar, CIT
Section 143Section 143(3)Section 144C(5)Section 147Section 148Section 37(1)

…ted from such asset or likely to be generated to the extent provided by the Legislature under different heads. 31.6 The above view is also fortified by the decision of the coordinate Bench of the Tribunal in the case of Macintosh Finance Estates Ltd. vs. ACIT(12 SOT 324), wherein it has been held "once we find that interest expenses is an allowable expenditure under the head "Income from other sources”, it cannot be allowed to be added to the cost of investment only because in this year no deduction is allowable because the dividend income has been made exempt’’. The following observations of Supreme Court in the…

M/S Aban Offshore Limited, Chennai vs. DCIT, Corporate Circle, Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 797/CHNY/2020[2011-12]Status: DisposedITAT Chennai08 Nov 2023AY 2011-12

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./It(Tp)A Nos.: 21/Chny/2022 & 40/Chny/2022 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Tpo Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita Nos.: 797 & 798/Chny/2020 िनधा"रण वष" / Assessment Years: 2011-12 & आयकर अपील सं./Ita No.: 2757/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita No.: 1672/Chny/2019 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of V. 113, Janpriya Crestpantheon Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. P. Murali Mohana Rao, Ca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 27.09.2023 घोषणा क" तारीख/Date Of Pronouncement : 08.11.2023

For Respondent: Shri. A. Sasikumar, CIT
Section 143Section 143(3)Section 144C(5)Section 147Section 148Section 37(1)

…ted from such asset or likely to be generated to the extent provided by the Legislature under different heads. 31.6 The above view is also fortified by the decision of the coordinate Bench of the Tribunal in the case of Macintosh Finance Estates Ltd. vs. ACIT(12 SOT 324), wherein it has been held "once we find that interest expenses is an allowable expenditure under the head "Income from other sources”, it cannot be allowed to be added to the cost of investment only because in this year no deduction is allowable because the dividend income has been made exempt’’. The following observations of Supreme Court in the…

DCIT Corporate Circle 1(1), Chennai vs. Aban Offshore Ltd., Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 1672/CHNY/2019[2013-14]Status: DisposedITAT Chennai08 Nov 2023AY 2013-14

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./It(Tp)A Nos.: 21/Chny/2022 & 40/Chny/2022 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Tpo Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita Nos.: 797 & 798/Chny/2020 िनधा"रण वष" / Assessment Years: 2011-12 & आयकर अपील सं./Ita No.: 2757/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita No.: 1672/Chny/2019 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of V. 113, Janpriya Crestpantheon Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. P. Murali Mohana Rao, Ca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 27.09.2023 घोषणा क" तारीख/Date Of Pronouncement : 08.11.2023

For Respondent: Shri. A. Sasikumar, CIT
Section 143Section 143(3)Section 144C(5)Section 147Section 148Section 37(1)

…ted from such asset or likely to be generated to the extent provided by the Legislature under different heads. 31.6 The above view is also fortified by the decision of the coordinate Bench of the Tribunal in the case of Macintosh Finance Estates Ltd. vs. ACIT(12 SOT 324), wherein it has been held "once we find that interest expenses is an allowable expenditure under the head "Income from other sources”, it cannot be allowed to be added to the cost of investment only because in this year no deduction is allowable because the dividend income has been made exempt’’. The following observations of Supreme Court in the…

Aban Offshore Limited, Chennai vs. DCIT Corporate Circle 1(1), Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 2757/CHNY/2017[2013-14]Status: DisposedITAT Chennai08 Nov 2023AY 2013-14

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./It(Tp)A Nos.: 21/Chny/2022 & 40/Chny/2022 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Tpo Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita Nos.: 797 & 798/Chny/2020 िनधा"रण वष" / Assessment Years: 2011-12 & आयकर अपील सं./Ita No.: 2757/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of 113, Janpriya Crestpantheon V. Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] आयकर अपील सं./Ita No.: 1672/Chny/2019 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Aban Offshore Limited, Deputy Commissioner Of V. 113, Janpriya Crestpantheon Income Tax, Road, Egmore, Corporate Circle -1(1), Chennai – 600 008. Chennai. [Pan: Aaaca-3012-H] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. P. Murali Mohana Rao, Ca Assessee By Department By : Shri. A. Sasikumar, Cit सुनवाई क" तारीख/Date Of Hearing : 27.09.2023 घोषणा क" तारीख/Date Of Pronouncement : 08.11.2023

For Respondent: Shri. A. Sasikumar, CIT
Section 143Section 143(3)Section 144C(5)Section 147Section 148Section 37(1)

…ted from such asset or likely to be generated to the extent provided by the Legislature under different heads. 31.6 The above view is also fortified by the decision of the coordinate Bench of the Tribunal in the case of Macintosh Finance Estates Ltd. vs. ACIT(12 SOT 324), wherein it has been held "once we find that interest expenses is an allowable expenditure under the head "Income from other sources”, it cannot be allowed to be added to the cost of investment only because in this year no deduction is allowable because the dividend income has been made exempt’’. The following observations of Supreme Court in the…

DCIT, Circle- 4(1), New Delhi vs. Kanwal Mohan Singh Sehgal, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 500/DEL/2019[2015-16]Status: DisposedITAT Delhi25 Aug 2022AY 2015-16

Bench: Shri N.K. Billaiya & Ms. Astha Chandraassessment Year: 2015-16

For Appellant: Shri Sanjeev Khurana, CAFor Respondent: Shri Anuj Garg, Sr. DR
Section 131(1)(d)Section 24Section 43Section 48Section 54

…he date of sale would not form part of the cost of acquisition. According to Ld. AO such interest expenditure does not fall within the ambit of section 48 and cited the decision of Mumbai Bench of the ITAT in Macintosh Finance Estate Ltd. vs. Addl. CIT (2007) 12 SOT 324. He also observed that in determining the cost of acquisition, the interest component after bringing the asset into existence is not taken into consideration as per Explanation 8 to section 43 of the Act. respect of self occupied property sold during the year under section 24(b) of the Act under the head “House Property”. Hence it cannot be treate…

Analjit Singh, Delhi vs. DCIT, Circle- 16(2), Delhi

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

ITA 4737/DEL/2017[2014-15]Status: DisposedITAT Delhi01 Dec 2017AY 2014-15

Bench: Shri Amit Shukla & Shri O.P.Kant

Section 143(3)Section 2Section 50D

…on 43A where special provision is made for determining the cost of acquisition, the cost of acquisition would be the price paid for acquiring the asset. Lastly, he placed reliance on co- ordinate bench decisions in the cases of Macintosh Finance Estates Ltd. (12 SOT 324); Vikram Sadanand Hoskote (18 SOT 130); and Aban Offshore Ltd. (76 taxmann 47) to rely on the proposition that interest cannot form part of the cost of acquisition. Thus, he submitted that the cost of acquisition can include only the amount actually paid by the appellant for acquiring the asset in terms of specific mandate of section 55(2) of the…

DCIT, Chennai vs. Sical Logistics Ltd., Chennai

ITA 1697/CHNY/2014[2010-11]Status: DisposedITAT Chennai18 Aug 2017AY 2010-11

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Shri Milind Madhukar, JCIT &For Respondent: Shri S. Sridhar, Advocate
Section 10Section 14A

…from such asset or likely to be generated to the extent provided by the Legislature under different heads. 7.17 The above view is also fortified by the decision of the coordinate Bench of the Tribunal in the case of Macintosh Finance Estates Ltd. vs. ACIT(12 SOT 324), wherein it has been held "once we find that interest expenses is an allowable expenditure under the head "Income from other sources”, it 27 - - ITA 1695 to 1697 & CO 84/Mds/14 cannot be allowed to be added to the cost of investment only because in this year no deduction is allowable because the dividend income has been made exempt’’. The fo…

DCIT, Chennai vs. Sical Logistics Ltd., Chennai

ITA 1696/CHNY/2014[2009-10]Status: DisposedITAT Chennai18 Aug 2017AY 2009-10

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Shri Milind Madhukar, JCIT &For Respondent: Shri S. Sridhar, Advocate
Section 10Section 14A

…from such asset or likely to be generated to the extent provided by the Legislature under different heads. 7.17 The above view is also fortified by the decision of the coordinate Bench of the Tribunal in the case of Macintosh Finance Estates Ltd. vs. ACIT(12 SOT 324), wherein it has been held "once we find that interest expenses is an allowable expenditure under the head "Income from other sources”, it 27 - - ITA 1695 to 1697 & CO 84/Mds/14 cannot be allowed to be added to the cost of investment only because in this year no deduction is allowable because the dividend income has been made exempt’’. The fo…

DCIT, Chennai vs. Sical Logistics Ltd., Chennai

ITA 1695/CHNY/2014[2008-09]Status: DisposedITAT Chennai18 Aug 2017AY 2008-09

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Shri Milind Madhukar, JCIT &For Respondent: Shri S. Sridhar, Advocate
Section 10Section 14A

…from such asset or likely to be generated to the extent provided by the Legislature under different heads. 7.17 The above view is also fortified by the decision of the coordinate Bench of the Tribunal in the case of Macintosh Finance Estates Ltd. vs. ACIT(12 SOT 324), wherein it has been held "once we find that interest expenses is an allowable expenditure under the head "Income from other sources”, it 27 - - ITA 1695 to 1697 & CO 84/Mds/14 cannot be allowed to be added to the cost of investment only because in this year no deduction is allowable because the dividend income has been made exempt’’. The fo…

Aban Offshore Limited, Chennai vs. DCIT, Chennai

In the result, the appeal of the assessee is partly

ITA 450/CHNY/2017[2012-13]Status: DisposedITAT Chennai19 Jun 2017AY 2012-13

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri P. Murali Mohana Rao, CAFor Respondent: Shri Pathlavath Peerya, CIT
Section 14Section 143(3)Section 144C(5)Section 24Section 36(1)(iii)Section 48Section 92C

…ted from such asset or likely to be generated to the extent provided by the Legislature under different heads. 31.6 The above view is also fortified by the decision of the coordinate Bench of the Tribunal in the case of Macintosh Finance Estates Ltd. vs. ACIT(12 SOT 324), wherein it has been held "once we find that interest expenses is an allowable expenditure under the head "Income from other sources”, it cannot be allowed to be added to the cost of investment only because in this year no deduction is allowable because the dividend income has been made exempt’’. The following observations of Supreme Court in the…

Macintosh Finance Estates Ltd. v. ACIT (12 SOT 324) — Cited in 12 Judgments | BharatTax