McDowell & Co. Ltd. v. CTO

Cable Corporation of India Ltd, Mumbai vs. DCIT Circle 2(1), Mumbai

In the result, the appeal of the assessee is allowed

Bench: Shri Rajesh Kumar & Shri Amarjeet Singhassessment Year: 2010-11

…x planning and it is wrong to encourage or entertain the belief that it is honorable to avoid the payment of tax by dubious methods. It is obligation of every citizen to pay the taxes honestly without resorting to subterfuges (M/s McDowell's Co Ltd Vs. CTO in 154 ITR 148). There is behind taxation laws as much moral sanction as is behind any other welfare legislation and it is a pretense to say that avoidance of taxation is not unethical and that it stands on no less a moral plane than honest payment of taxation. The proper way to construe a taxing statue, while considering a device to avoid tax. is not to ask wh…

ACIT (Cir.) - 6(1)(2), Mumbai vs. Bhandar Power Ltd., Mumbai

In the result, both the appeals of the Revenue are dismissed

Bench: Shri Mahavir Singh & Shri Rajesh Kumar

…rated by the appellant-company is not operating income and the entire transaction structured is a colourable and resulting into abusive tax planning. In this regard, A.O. placed reliance on the decision of the Hon'ble Apex Court in the case of McDowell & Co., 154 ITR 148 as well as several other decisions. I have also perused the submissions made by the appellant to justify that it has not resorted to abusive tax planning. In this respect, the appellant has placed reliance on the decision of the Punjab & Haryana High Court in the case of CIT vs. Punjab State Electricity Board, 320 ITR 469 and Porrits and Spencer…

Larsen & Toubro Infotech Limited, Mumbai vs. Principal Commissioner of Income Tax - 2, Mumbai

In the result, the appeal of assessee is allowed

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am

…आयकर अपीलीय अधिकरण “A” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI श्री महावीर स िंह, न्याययक दस्य एविं श्री जी. मंजुनाथ लेखा दस्य के मक्ष । BEFORE SRI MAHAVIR SINGH, JM AND SRI G MANJUNATHA, AM Aayakr ApIla saM./ ITA No. 409/Mum/2018 (inaQa-arNa baYa- / Assessment Year 2011-12) Larsen & Toubro Infotech Pr. Commissioner of Income Limited Tax-2, Room No. 344, 3 rd Taxation Dept., L&T House, Vs. Floor, Aayakar Bhavan, 2nd Floor, N.M. Marg, Ballard M.K. Road, Mumbai-400 Estate, Mumbai-400 001 020 .. (p`%yaqaaI- / Respondent) (ApIlaaqaI- / Appellant) स्थायी लेखा िं./PAN No. AAACL1681…

Asst CIT 16(2), Mumbai vs. Mahendra Popatlal Shah, Mumbai

Bench: Hon’Ble Sh. G. S. Pannu, Vp & Hon’Ble Sh. Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 819/Mum/2014 (निर्धारणवर्ा / Assessment Year: 2009-10) In The Matter Of:

…on the ground that it was propounded to avoid capital gains tax that would have arisen if the transferor companies would have directly transferred their shares to the promoters and that it was a "colourable device to evade tax". Reliance was placed onMcDowell 154 ITR 148 (SC),Wood Polymer 47 CC 597 (Guj) &Groupe Industrial Marcel Dassault (AAR). HELD by the High Court rejecting the objection: InAzadi Bachao Andolan263 ITR 706 (SC), it was held that McDowell cannot be read as laying down that every attempt at tax planning is illegitimate and must be ignored, or that every transaction or arrangement which is perfe…

Income Tax Officer-19(3)(5), Mumbai vs. Umeshbhai R. Patel, Prop: M/S.Uma Gems, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Bleincome Tax Officer – 19(3)(5) V. Shri Umeshbhai R. Patel Room No. 201 Prop: M/S. Uma Gems Matru Mandir, Tardeo Road, 117/A, Pancharatna, Mumbai – 400 007 Opera House Mumbai – 400 004 Pan: Acfpp 2969 N (Appellant) (Respondent) Assessee By : None Department By : Shri Rajeev K. Gubgotra

…d on the judgement of Hon'ble Supreme Court in the case of Sri Meenakshi Mills Ltd 63 ITR 609 where it was held that the IT. Authorities are entitled to pierce the veil of Corporate Entity and to look into reality of transaction. In the case of McDowell & Co. 154 ITR 148(SC) it was stated that implications of tax avoidance are manifold. First, there is substantial loss of much needed public revenue. Next, there is serious disturbance caused to the economy of the country due to piling of mountains of black money, causing inflation. Thus, there is "the large hidden loss" to the community, by some of the members in…

Mitesh Ilesh Gadhia, Mumbai vs. DCIT Cen Cir 4(2), Mumbai

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

Bench: Shri B.R. Baskaran & Shri Ravish Soodshri Mitesh Ilesh Gadhia Dcit, Central Circle-4(2) 201, Vyapar Bhavan, 2Nd Floor Room No. 1918 368/270 Narshi Natha Street Vs. Air India Building Masjid Bunder (W) Nariman Point Mumbai 400009 Mumbai 400021 Pan – Aegpg2818A Appellant Respondent

…(1995)(214 ITR 801)(SC) and CIT vs. Durga Prasad More (82 ITR 540). The AO also held that the purchases made from hawala dealers falls within the ambit of “colouorable devices” as observed by Hon’ble Supreme Court in the case of Mc Dowell and Co Ltd vs. CTO (154 ITR 148). The AO also relied upon various other case laws to hold that the entries made in the books of accounts are not determinative of the genuineness. He also took support of the decision rendered by Hon’ble Delhi High Court in the case of CIT vs. La Medica (250 4 Shri Mitesh Ilesh Gadhia ITR 575) to hold that the sum paid towards fictitious purchas…