Micro Ink Ltd. v. ACIT

Krishnagopal Tilakraj Kapoor, Ghatkopar East vs. Assisstant Commissioner of Income Tax, Grant Road

The appeal of the appellant is partly allowed as above for statistical purposes

Bench: Shri Sandeep Gosain (Jm) & Shri Omkareshwar Chidara (Am) Krishnagopal Tilakraj Kapoor Acit 14(2)(1) Flat No. 13, Plot No. 353 Matru Mandir Triveni Building, Vallabh Vs. Building Baugh Exten. Lane Grant Road Ghatkopar East Mumbai-400 Mumbai-400 077. 007. Pan : Aahpk0342G Appellant Respondent

…IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “E” Bench, Mumbai. Before Shri Sandeep Gosain (JM) & Shri Omkareshwar Chidara (AM) Krishnagopal Tilakraj Kapoor ACIT 14(2)(1) Flat No. 13, Plot No. 353 Matru Mandir Triveni Building, Vallabh Vs. Building Baugh Exten. Lane Grant Road Ghatkopar East Mumbai-400 Mumbai-400 077. 007. PAN : AAHPK0342G Appellant Respondent Assessee by : Shri Krish Desai Revenue by : Shri Hemanshu Joshi Date of Hearing : 12/02/2025 Date of pronouncement : 05/05/2025 O R D E R Per Omkareshwar Chidara (AM) :- The appellant in this appeal has taken up the following grounds and one additional…

DCIT 5(3)(2), Mumbai vs. The Great Eastern Shipping Co.Ltd, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 Nd Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of The Great Eastern Shipping Income-Tax, Co. Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 Nd Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

…ld that giving of a guarantee on behalf of an AE is not an international transaction as it has no bearing on the profits, income, losses or assets of the enterprises involved: a. Marico Ltd. (ITA No. 8858/M/11 and 8713/M/11) dated 18.5.2016 b. Micro Ink Ltd. (157 ITD 132) (Ahd.) c. Videocon Industries Ltd. (55 taxmann.com 263) (Mum.) ITA Nos. 3272/Mum/2015 & 1656/Mum/2014 The Great Eastern Shipping Co. Ltd.; A.Y. 09-10 ii. Without prejudice, the Appellant submits that section 92B, as amended retrospectively by the Finance Act, 2012, does not cover a performance guarantee of the type given by the Appellant as the…

The Great Eastern Shipping Co. Ltd, Mumbai vs. DCIT RG 5(3), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 Nd Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of The Great Eastern Shipping Income-Tax, Co. Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 Nd Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

…ld that giving of a guarantee on behalf of an AE is not an international transaction as it has no bearing on the profits, income, losses or assets of the enterprises involved: a. Marico Ltd. (ITA No. 8858/M/11 and 8713/M/11) dated 18.5.2016 b. Micro Ink Ltd. (157 ITD 132) (Ahd.) c. Videocon Industries Ltd. (55 taxmann.com 263) (Mum.) ITA Nos. 3272/Mum/2015 & 1656/Mum/2014 The Great Eastern Shipping Co. Ltd.; A.Y. 09-10 ii. Without prejudice, the Appellant submits that section 92B, as amended retrospectively by the Finance Act, 2012, does not cover a performance guarantee of the type given by the Appellant as the…

DCIT Circle- 2(1)(1), Mumbai vs. M/S Bombay Dyeing & Manufacturing Co. Ltd, Mumbai

Bench: Shri Kuldip Singh & Shri Gagan Goyalassessment Year : 2009-10 & Assessment Year: 2010-11

…of the assessee and direct the Assessing Officer to delete the impugned ALP adjustment of Rs 33,10,161. The assessee gets the relief accordingly." 17. We further notice that the decision of Ahmedabad Tribunal in the case of Micro Ink Ltd. Vs. Add. CIT [2016] 157 ITD 132 (Ahd-Trib.), which has followed the decision of Bharti Airtel (supra) held that issuance of corporate guarantees was in the nature of shareholder's activity/quasi capital, thus, could not be included in the ambit of international transaction u/s 92(1) of the Act. Further, Ahmedabad Tribunal has distinguished the decision of Hon'ble Bombay High Co…

ACIT, Circle - 2(1)(1), Mumbai vs. The Bombay Dyeing & Mfg. Co. Ltd., Mumbai

Bench: Shri Kuldip Singh & Shri Gagan Goyalassessment Year : 2009-10 & Assessment Year: 2010-11

…of the assessee and direct the Assessing Officer to delete the impugned ALP adjustment of Rs 33,10,161. The assessee gets the relief accordingly." 17. We further notice that the decision of Ahmedabad Tribunal in the case of Micro Ink Ltd. Vs. Add. CIT [2016] 157 ITD 132 (Ahd-Trib.), which has followed the decision of Bharti Airtel (supra) held that issuance of corporate guarantees was in the nature of shareholder's activity/quasi capital, thus, could not be included in the ambit of international transaction u/s 92(1) of the Act. Further, Ahmedabad Tribunal has distinguished the decision of Hon'ble Bombay High Co…

ACIT, Circle - 2(1)(1), Mumbai vs. The Bombay Dyeing & Mfg. Co. Ltd., Mumbai

Bench: Shri Kuldip Singh & Shri Gagan Goyalassessment Year : 2009-10 & Assessment Year: 2010-11

…of the assessee and direct the Assessing Officer to delete the impugned ALP adjustment of Rs 33,10,161. The assessee gets the relief accordingly." 17. We further notice that the decision of Ahmedabad Tribunal in the case of Micro Ink Ltd. Vs. Add. CIT [2016] 157 ITD 132 (Ahd-Trib.), which has followed the decision of Bharti Airtel (supra) held that issuance of corporate guarantees was in the nature of shareholder's activity/quasi capital, thus, could not be included in the ambit of international transaction u/s 92(1) of the Act. Further, Ahmedabad Tribunal has distinguished the decision of Hon'ble Bombay High Co…

Enem Nostrum Remedies Limited, Mumbai vs. Asst. CIT -9(2)(2), Mumbai

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

…IN THE INCOME TAX APPELLATE TRIBUNAL "K" BENCH, MUMBAI SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER Enem Nostrum Remedies Private Limited, Unit No. 201 to 204, Gayatri Commercial Complex, Behind Mittal Industrial Estate, Marol, Andheri (East),Mumbai - 400059 [PAN: AAACE8766G] ……………. Appellant Assistant Commissioner of Vs Income Tax – 9(2)(2), Mumbai, Room No. 665A, Aayakar Bhavan, M.K. Road, Mumbai - 400020 …………….. Respondent Appearances For the Appellant/ Assessee : Ms. Chaitee Londhe For the Respondent/Department : Shri Sumit Kumar Date of conclusion of hearing : 23.03.2022 Dat…

Virgo Valves & Controls Ltd, Mumbai vs. DCIT 1(3), Mumbai

…le Courts above. As the things stand now, in the light of the above judicial development, the ratio of a series of decisions of this Tribunal, including in the cases of assesse‟s own case (reported as 177 TTJ 609), in the case of Micro Ink Ltd Vs ACIT [(2016) 157 ITD 132 (Ahd)] and Bharati Airtel Ltd Vs ACIT [(2014) 63 SOT 113 (Del)], holding that issuance of corporate guarantees does not constitute „international transaction‟ under section 92B does not hold good in law any longer. The fact that these words are of non- jurisdictional High Court, in view of anything contrary thereto having been expressed by Hon‟bl…

Virgo Valves & Controls Ltd. (Now Virgo Valves & Controls Pvt. Ltd.), Mumbai vs. DCIT - 1(3), Mumbai

…le Courts above. As the things stand now, in the light of the above judicial development, the ratio of a series of decisions of this Tribunal, including in the cases of assesse‟s own case (reported as 177 TTJ 609), in the case of Micro Ink Ltd Vs ACIT [(2016) 157 ITD 132 (Ahd)] and Bharati Airtel Ltd Vs ACIT [(2014) 63 SOT 113 (Del)], holding that issuance of corporate guarantees does not constitute „international transaction‟ under section 92B does not hold good in law any longer. The fact that these words are of non- jurisdictional High Court, in view of anything contrary thereto having been expressed by Hon‟bl…

Virgo Valves & Controls Ltd, Mumbai vs. DCIT 1(3), Mumbai

…le Courts above. As the things stand now, in the light of the above judicial development, the ratio of a series of decisions of this Tribunal, including in the cases of assesse‟s own case (reported as 177 TTJ 609), in the case of Micro Ink Ltd Vs ACIT [(2016) 157 ITD 132 (Ahd)] and Bharati Airtel Ltd Vs ACIT [(2014) 63 SOT 113 (Del)], holding that issuance of corporate guarantees does not constitute „international transaction‟ under section 92B does not hold good in law any longer. The fact that these words are of non- jurisdictional High Court, in view of anything contrary thereto having been expressed by Hon‟bl…

Virgo Valves & Controls Ltd, Mumbai vs. DCIT 1(3), Mumbai

…le Courts above. As the things stand now, in the light of the above judicial development, the ratio of a series of decisions of this Tribunal, including in the cases of assesse‟s own case (reported as 177 TTJ 609), in the case of Micro Ink Ltd Vs ACIT [(2016) 157 ITD 132 (Ahd)] and Bharati Airtel Ltd Vs ACIT [(2014) 63 SOT 113 (Del)], holding that issuance of corporate guarantees does not constitute „international transaction‟ under section 92B does not hold good in law any longer. The fact that these words are of non- jurisdictional High Court, in view of anything contrary thereto having been expressed by Hon‟bl…

Siro Clinpharm P.Ltd, Mumbai vs. ITO RG 3(3)(2), Mumbai

In the result, the appeal is partly allowed in the terms indicated above

…le Courts above. As the things stand now, in the light of the above judicial development, the ratio of a series of decisions of this Tribunal, including in the cases of assesse’s own case (reported as 177 TTJ 609), in the case of Micro Ink Ltd Vs ACIT [(2016) 157 ITD 132 (Ahd)] and Bharati Airtel Ltd Vs ACIT [(2014) 63 SOT 113 (Del)], holding that issuance of corporate guarantees does not constitute ‘international transaction’ under section 92B does not hold good in law any longer. The fact that these words are of non-jurisdictional High Court, in view of anything contrary thereto having been expressed by Hon’ble…