Otis Elevator Co. (India) Ltd. v. CIT

Bayer Crop Science Ltd, Mumbai vs. Addl CIT 10(3), Mumbai

Bench: S/Sh.Rajendra & C.N. Prasadआयकर अपील सं./Ita/7978/Mum/2010,िनधा"रण वष"/Ay.2006-07 M/S. Bayer Cropscience Limited Acit -10(3) Aayakar Bhavan, 4Th Floor, M.K. Road Bayer House, Central Avenue, Hiranandani Gardens, Powai Vs. Mumbai-400 020. Mumbai-400 076. Pan:Aaacb 9651 K (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By:Shri G.M. Doss Assessee By: S/Shri Paras Savla; Harsh Shah & Viraj Mehta सुनवाई की तारीख / Date Of Hearing: 18.04.2016 घोषणा की तारीख / Date Of Pronouncement: 25.05.2016 आयकर अिधिनयम,1961 की धारा 254(1)के अ"ग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद" राजे" के अनुसार Per Rajendra, Am- Challenging The Order Dated 14/10/2010 Of The Assessing Officer (Ao),Passed U/S.143(3)R.W. S.144C(13)Of The Act, The Assessee Has Filed The Present Appeal. Assessee-Company,Engaged In The Business Of Manufacturing Of Insecticides & Other Chemicals For Plant Protection,Filed Its Return Of Income On 30/11/2006, Declaring Income Of Rs. 51.18 Crores.During The Assessment Proceedings,The Ao Found That Assessee Had Entered Into International Transactions (It.S) With Its Associated Enterprises(Aes).So,He Made A Reference To The Transfer Pricing Officer (Tpo)To Determine The Arm’S Length Price(Alp) Of Such Transactions. After Receiving The Order Of The Tpo,The Ao Sent The Draft Assessment Order To The Assessee, Who Challenged It Before The Dispute Resolution Panel (Drp).The Drp Issue Directions To The Ao Wide Its Order Dated 28/09/2010.In Pursuance Of The Said Directions, The Ao Completed The Assessment, Determining The Income Of The Assessee Had Rs. 59.89 Crores. 2.First Ground Of Appeal Relates To Transfer Pricing (Tp)Adjustments Of Rs. 2.80 Crores.During The Tp Proceedings,The Tpo Found That The Assessee Had Entered Into The Following It.S With Its Aes:

…आयकर अपीलीय अिधकरण, मुंबई “केकेकेके” खंडपीठ Income-tax Appellate Tribunal -“K”Bench Mumbai सव"ी राजे"",लेखा सद"य एवं सी. एन. "साद,"याियक सद"य Before S/Sh.Rajendra,Accountant Member and C.N. Prasad,Judicial Member आयकर अपील सं./ITA/7978/Mum/2010,िनधा"रण वष"/AY.2006-07 M/s. Bayer CropScience Limited ACIT -10(3) Aayakar Bhavan, 4th floor, M.K. Road Bayer House, Central Avenue, Hiranandani Gardens, Powai Vs. Mumbai-400 020. Mumbai-400 076. PAN:AAACB 9651 K (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue by:Shri G.M. Doss Assessee by: S/Shri Paras Savla; Harsh Shah & Viraj Mehta सुनवाई की तारीख / Date of Hearing…

Asst CIT 1(3), Mumbai vs. General Insurance Corporation of India, Mumbai

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri C.N. Prasad & Shri Rajesh Kumarआयकर अपील सं/ I.Ta No.4926/Mum/2014 ("नधा"रण वष" / Assessment Year:2010-11 बनाम/ Acit 1(3), General Insurance Aayakar Bhavan, Corporation Of India, Vs. Mumbai-400 020 “Suraksha”, 170, J. Tata Road, Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaacg 0615N (अपीलाथ" /Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant By: Shri H.S. Singh ""यथ" क" ओर से/Respondent By: Shri Farrokh V. Irani सुनवाई क" तार"ख / Date Of Hearing :10.02.2016 घोषणा क" तार"ख /Date Of Pronouncement :02.03.2016 आदेश / O R D E R Per C.N. Prasad, Jm: This Appeal Is Filed By The Revenue Against The Order Of The Ld. Cit(A)-2, Mumbai Dated 21.03.2014 Pertaining To Assessment Year 2010-11. 2. The Revenue Has Raised Following Grounds In Its Appeal:

…orts the order of the A.O on disallowing the club expenses. The Ld. Counsel for the assessee supports the order of the Ld. CIT(A) and further placing reliance on the decision of the Hon’ble Bombay High Court in the case of Otis Elevator Co (India) Ltd Vs CIT (195 ITR 682) submits that the club expenses incurred by the assessee enables to improve the relations and prospects. The Ld. Counsel submits that it is impossible to keep record of every person visiting to the club and what kind of business dealings have been made from the visits of the club. Therefore, he submits that the expenses are definitely business ex…

Top Class Capital Markets P.Ltd, Mumbai vs. CIT 1, Mumbai

In the result, the appeal filed by the assessee is dismissed

Bench: S/Shri B.R.Baskaran & Shri Sandeep Gosainआयकर अपीऱ सं./I.T.A. No.2094/Mum/2015 (निर्धारण वर्ा / Assessment Year :2010-11)

…icense to initiate revision proceedings u/s 263 of the Act. 5. On merits, the Ld A.R submitted that the club membership fee is an admissible deduction as held by the Hon‟ble jurisdictional Bombay High Court in the case of OTIS Elevator Co. (India) Ltd (1992)(195 ITR 682). He submitted that the membership fee was paid for a representative of the assessee, who could bring business for the assessee. Hence the same is allowable as deduction. Accordingly he submitted that the view taken by Ld CIT was a case of mere change of opinion and hence the revision proceeding initiated by Ld CIT is not valid on this ground als…

Deepak C Dalal, Mumbai vs. ITO 12(1)(4), Mumbai

Bench: Shri Shailendra Kumar Yadav & Shri Rajesh Kumar.

…gards to allowability of Rs.10,04,416/- being club membership fees. Learned Authorized Representative pointed out that this issue is covered in favour of assessee vide order of Hon’ble Bombay High Court in case of Otis Elevator Co. (India) Ltd. vs. CIT [1992] 195 ITR 682 (Bom.), wherein it has been held that payment of club fees made to promote business interests is allowable expenditure and similar view has been taken by ITAT, Mumbai ‘H’ Bench in case of Lubrizol India Pvt. Ltd. vs. ACIT in ITA No. 2848/Mum/2008 for A.Y. 2004-05. Nothing contrary has been brought to our knowledge on behalf of ITA No.3086/Mum/12…