Maxopp Investment Ltd. v. CIT

Asst CIT 2(2)(1), Mumbai vs. State Bank of India, Mumbai

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

Bench: Smt. Beena Pillai () & Shri Jagadish ()

…eld by the assessee, though the assessee has to ultimately trade those shares by selling them to earn profits. The situation here is, therefore, different from the case like Maxopp Investment Ltd. [Maxopp Investment Ltd. v. CIT 2011 SCC OnLine Del 4855 (2012) 347 ITR 272] where the assessee would continue to hold those shares as it wants to retain control over the investee company. In that case, whenever dividend is declared by the investee company that would necessarily be earned by the assessee and therefore, even at the time of investing into those shares, the assessee knows that it may generate dividend incom…

State Bank of India, Mumbai vs. Asst CIT Cir 2(2), Mumbai

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

Bench: Smt. Beena Pillai () & Shri Jagadish ()

…eld by the assessee, though the assessee has to ultimately trade those shares by selling them to earn profits. The situation here is, therefore, different from the case like Maxopp Investment Ltd. [Maxopp Investment Ltd. v. CIT 2011 SCC OnLine Del 4855 (2012) 347 ITR 272] where the assessee would continue to hold those shares as it wants to retain control over the investee company. In that case, whenever dividend is declared by the investee company that would necessarily be earned by the assessee and therefore, even at the time of investing into those shares, the assessee knows that it may generate dividend incom…

Maharashtra State Electricity Transmission Company Limited, Mumbai vs. ITO Circle 14(1)(1), Mumbai

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

…of Hon’ble Delhi High Court in the case of Joint Investments Pvt. Ltd. Vs. Commissioner of Income Tax [ITA 117/2015 [2015-ITRV-HC-DEL-119] - Decision of Hon’ble Delhi High Court in the case of Maxopp Investment Ltd. Ors. Vs. Commissioner of Income Tax [2011] 347 ITR 272 - JM Financial Limited Vs. Additional Commissioner of Income Tax [ITA. No. 4521/Mum/2012, Assessment Year 2009-2010, dated 26/03/2014] - Decision of Delhi High Court in the case of Commissioner of Income Tax Vs. Taikisha Engineering India Ltd. [2015- ITRVHC-DEL-118][2015] 54 taxmann.com 109 (Delhi) - Decision of Tribunal in the case of Inter Glob…

JCIT(OSD)-14(1)(1), Mumbai vs. Maharashtra State Electricity Transmission Co. Ltd., Mumbai

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

…of Hon’ble Delhi High Court in the case of Joint Investments Pvt. Ltd. Vs. Commissioner of Income Tax [ITA 117/2015 [2015-ITRV-HC-DEL-119] - Decision of Hon’ble Delhi High Court in the case of Maxopp Investment Ltd. Ors. Vs. Commissioner of Income Tax [2011] 347 ITR 272 - JM Financial Limited Vs. Additional Commissioner of Income Tax [ITA. No. 4521/Mum/2012, Assessment Year 2009-2010, dated 26/03/2014] - Decision of Delhi High Court in the case of Commissioner of Income Tax Vs. Taikisha Engineering India Ltd. [2015- ITRVHC-DEL-118][2015] 54 taxmann.com 109 (Delhi) - Decision of Tribunal in the case of Inter Glob…

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

…in relation to the exempt income. The aforesaid understanding of the mechanics of Sec. 14A of the Act is clear from the reading of Sub-section (2) & (3) thereof and also from the judgment of the Hon'ble Delhi High Court in the case of Maxopp Investment Ltd., 347 ITR 272 (Delhi) and also the judgment of the Hon'ble Supreme Court in the case of Godrej & Boyce Mfg. Co. Ltd., [2017] 81 taxmann.com 111 (SC), which has approved the judgment of the Hon'ble Bombay High Court reported in the case of Godrej & Boyce Mfg. Co. Ltd., 328 ITR 81 (Bom) on the aspect of recording of satisfaction contemplated in Sec. 14A(2) of th…

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

…in relation to the exempt income. The aforesaid understanding of the mechanics of Sec. 14A of the Act is clear from the reading of Sub-section (2) & (3) thereof and also from the judgment of the Hon'ble Delhi High Court in the case of Maxopp Investment Ltd., 347 ITR 272 (Delhi) and also the judgment of the Hon'ble Supreme Court in the case of Godrej & Boyce Mfg. Co. Ltd., [2017] 81 taxmann.com 111 (SC), which has approved the judgment of the Hon'ble Bombay High Court reported in the case of Godrej & Boyce Mfg. Co. Ltd., 328 ITR 81 (Bom) on the aspect of recording of satisfaction contemplated in Sec. 14A(2) of th…

Small Industries Development Bank of India, Mumbai vs. Deputy Commissioner of Income Tax Circle 3(3)(1), Mumbai

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

…in relation to the exempt income. The aforesaid understanding of the mechanics of Sec. 14A of the Act is clear from the reading of Sub-section (2) & (3) thereof and also from the judgment of the Hon'ble Delhi High Court in the case of Maxopp Investment Ltd., 347 ITR 272 (Delhi) and also the judgment of the Hon'ble Supreme Court in the case of Godrej & Boyce Mfg. Co. Ltd., [2017] 81 taxmann.com 111 (SC), which has approved the judgment of the Hon'ble Bombay High Court reported in the case of Godrej & Boyce Mfg. Co. Ltd., 328 ITR 81 (Bom) on the aspect of recording of satisfaction contemplated in Sec. 14A(2) of th…

Small Industries Development Bank of India, Mumbai vs. Deputy Commissioner of Income Tax Circle 3(3)(1), Mumbai

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

…in relation to the exempt income. The aforesaid understanding of the mechanics of Sec. 14A of the Act is clear from the reading of Sub-section (2) & (3) thereof and also from the judgment of the Hon'ble Delhi High Court in the case of Maxopp Investment Ltd., 347 ITR 272 (Delhi) and also the judgment of the Hon'ble Supreme Court in the case of Godrej & Boyce Mfg. Co. Ltd., [2017] 81 taxmann.com 111 (SC), which has approved the judgment of the Hon'ble Bombay High Court reported in the case of Godrej & Boyce Mfg. Co. Ltd., 328 ITR 81 (Bom) on the aspect of recording of satisfaction contemplated in Sec. 14A(2) of th…

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

…in relation to the exempt income. The aforesaid understanding of the mechanics of Sec. 14A of the Act is clear from the reading of Sub-section (2) & (3) thereof and also from the judgment of the Hon'ble Delhi High Court in the case of Maxopp Investment Ltd., 347 ITR 272 (Delhi) and also the judgment of the Hon'ble Supreme Court in the case of Godrej & Boyce Mfg. Co. Ltd., [2017] 81 taxmann.com 111 (SC), which has approved the judgment of the Hon'ble Bombay High Court reported in the case of Godrej & Boyce Mfg. Co. Ltd., 328 ITR 81 (Bom) on the aspect of recording of satisfaction contemplated in Sec. 14A(2) of th…

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

…in relation to the exempt income. The aforesaid understanding of the mechanics of Sec. 14A of the Act is clear from the reading of Sub-section (2) & (3) thereof and also from the judgment of the Hon'ble Delhi High Court in the case of Maxopp Investment Ltd., 347 ITR 272 (Delhi) and also the judgment of the Hon'ble Supreme Court in the case of Godrej & Boyce Mfg. Co. Ltd., [2017] 81 taxmann.com 111 (SC), which has approved the judgment of the Hon'ble Bombay High Court reported in the case of Godrej & Boyce Mfg. Co. Ltd., 328 ITR 81 (Bom) on the aspect of recording of satisfaction contemplated in Sec. 14A(2) of th…

Dy. Commissioner of Income Tax Circle - 3(3)(1), Mumbai vs. Small Industries Development Bank of India, Mumbai

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

…in relation to the exempt income. The aforesaid understanding of the mechanics of Sec. 14A of the Act is clear from the reading of Sub-section (2) & (3) thereof and also from the judgment of the Hon'ble Delhi High Court in the case of Maxopp Investment Ltd., 347 ITR 272 (Delhi) and also the judgment of the Hon'ble Supreme Court in the case of Godrej & Boyce Mfg. Co. Ltd., [2017] 81 taxmann.com 111 (SC), which has approved the judgment of the Hon'ble Bombay High Court reported in the case of Godrej & Boyce Mfg. Co. Ltd., 328 ITR 81 (Bom) on the aspect of recording of satisfaction contemplated in Sec. 14A(2) of th…

Star Chemicals Bombay Private Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 3(3)(2), Mumbai

Bench: Shri Saktijit Dey, Vp & Ms Padmavathy S, Am

…not satisfied Star Chemicals Bombay Pvt. Ltd. with the correctness of the claim for expenditure made by the assessee in relation to income, which did not form part of the total income. 12. Hon'ble Delhi High Court in the case of Maxopp Investment Limited ITR 347 ITR 272 held that the condition precedent for the AO to determine the amount of expenditure under Rule 8D is that he must record his satisfaction with the correctness of the claim of expenditure made by the assessee or with the correctness of the claim made by the assessee that no expenditure has been incurred. It is only when this condition precedent is…

Star Chemicals Bombay Private Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 3(3)(1), Mumbai

Bench: Shri Saktijit Dey, Vp & Ms Padmavathy S, Am

…not satisfied Star Chemicals Bombay Pvt. Ltd. with the correctness of the claim for expenditure made by the assessee in relation to income, which did not form part of the total income. 12. Hon'ble Delhi High Court in the case of Maxopp Investment Limited ITR 347 ITR 272 held that the condition precedent for the AO to determine the amount of expenditure under Rule 8D is that he must record his satisfaction with the correctness of the claim of expenditure made by the assessee or with the correctness of the claim made by the assessee that no expenditure has been incurred. It is only when this condition precedent is…

G R N Finsec Private Limited, Mumbai vs. Assistant Commissioner of Income Tax, Mumbai

In the result, the appeal filed by the assessee in ITA No

Bench: Shri Vikram Singh Yadav & Shri Sandeep Gosain

…by the assessee, though the assessee has to ultimately trade those shares by selling them to earn profits. The situation here is, therefore, different from the case like Maxopp Investment Ltd. [Maxopp Investment Ltd. v. CIT, 2011 SCC OnLine Del 4855 : (2012) 347 ITR 272] where the assessee would continue to hold those shares as it wants to retain control over the investee company. In that case, whenever dividend is declared by the investee company that would necessarily be earned by the assessee and the assessee alone. Therefore, even at the time of investing into those shares, the assessee knows that it may gen…

G R N Finsec Private Limited, Mumbai vs. Deputy Commissioner of Income Tax - Circle 1(1)(2), Mumbai

In the result, the appeal filed by the assessee in ITA No

Bench: Shri Vikram Singh Yadav & Shri Sandeep Gosain

…by the assessee, though the assessee has to ultimately trade those shares by selling them to earn profits. The situation here is, therefore, different from the case like Maxopp Investment Ltd. [Maxopp Investment Ltd. v. CIT, 2011 SCC OnLine Del 4855 : (2012) 347 ITR 272] where the assessee would continue to hold those shares as it wants to retain control over the investee company. In that case, whenever dividend is declared by the investee company that would necessarily be earned by the assessee and the assessee alone. Therefore, even at the time of investing into those shares, the assessee knows that it may gen…