PCIT v. U.K. Paints (India) (P.) Ltd.

380 ITR 652High Court2016#4211 most cited

What is PCIT v. U.K. Paints (India) (P.) Ltd. authority for?

Disallowance under Section 14A and Rule 8D requires the Assessing Officer to record specific satisfaction regarding the nexus between expenditure and exempt income, and cannot be mechanically applied without such satisfaction.

28

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2026.

Also referred to as

PCIT v. U.K. Paints (India) (P.) Ltd. · Section 14A · Rule 8D · Assessing Officer satisfaction · nexus between expenditure and exempt income · mechanical invocation of Rule 8D

Sections most often in play

Section 11UASection 143(2)Section 143(3)Section 14ASection 1961 - Sections 14ASection 1962 - Rule 8DSection 22Section 23

Issues it is cited on

section 80ia(8)section 194hsection 80icsection 194jsection 40a(2)(b)section 14a(2)section 2(22)section 2(22)(e)section 40a(2)section 80iasection 80icommercial expediency

Judgments citing PCIT v. U.K. Paints (India) (P.) Ltd.

Vikas Globalone Ltd., New Delhi vs. DCIT, Circle- 26(2), New Delhi

In the result, appeal of Assessee is partly allowed

ITA 2498/DEL/2018[2012-13]Status: DisposedITAT Delhi08 Mar 2019AY 2012-13

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: Shri Piyush KamalFor Respondent: Shri S.S. Rana, CIT-D.R
Section 115JSection 37Section 80I

…on Associates 381 ITR 204 (P&H) noted that assessee claimed old investments out of capital and reserves, no separate amount borrowed for making investment, no disallowance be made. Hon’ble Punjab and Haryana High Court in the case of Abhishek Industries Ltd., 380 ITR 652 (P&H) held that onus is upon the A.O. to record satisfaction that interest bearing funds used for investment to earn tax free income. 13.1. Considering the totality of the facts and circumstances in the light of above decisions, it is clear that assessee claimed that no expenditure have been incurred for earning exempt income. A.O. has not recor…

DCIT, New Delhi vs. M/S. K.S. Hotels (P) Ltd., New Delhi

In the result, appeal of Revenue is dismissed

ITA 2809/DEL/2015[2011-12]Status: DisposedITAT Delhi01 Nov 2018AY 2011-12

Bench: Shri Bhavnesh Saini, J.M. & Shri L.P. Sahu, A.M.

For Appellant: Shri Salil Aggarwal, AdvocateFor Respondent: Smt. Naina Soin Kapil, Sr.DR
Section 14ASection 194CSection 40

…used for purchase of investment have not been rebutted by the Revenue through any evidence or material on 6 ITA.No.2809/Del./2015 M/s. K.S. Hotels (P) Ltd., New Delhi. record. The Hon’ble Punjab and Haryana High Court in the case of Abhishek Industries Ltd., 380 ITR 652 held that “onus is upon A.O. to record satisfaction that interest bearing funds have been used for investment to earn tax free income”. Since no borrowed funds have been used by assessee to make investment, therefore, Ld. CIT(A) correctly deleted the addition. Ground No.2 of appeal of Revenue is dismissed. 9. In the result, appeal of Revenue is…

Dy. C.I.T.1(2), Raipur (Cg) vs. M/S Godawari Power & Ispat Ltd., Raipur (Cg)

In the result, the appeal filed by the Revenue is partly allowed for

ITA 365/BIL/2014[2011-12]Status: DisposedITAT Raipur01 Oct 2018AY 2011-12

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2011-12 Dcit- 1(2), Godawari Power & Ispat Ltd., Raipur (Cg). Plot No.482/2, Industrial Growth Vs. Centre, Phase- 1, Siltara, Raipur (Cg).

For Appellant: Shri R. B. Doshi, CAFor Respondent: Shri P. K. Mishra, CIT(DR)
Section 143(2)Section 143(3)Section 14ASection 3Section 80Section 80I

…tal and free reserves which is more than investment made, the income of which is exempt from tax, no disallowance is called for. Referring to the decision of the Hon’ble Punjab & Haryana High Court in the case of CIT vs. Abhishek Industries Ltd. reported in 380 ITR 652 and the decisions of the Kolkata Bench of the Tribunal in the case of Damodar Valley Corporation vs. Addl.CIT reported in 66 taxmann.com 25, he submitted that the initial burden was on the Assessing Officer to establish that borrowed funds 26 C.O. No.12/RPR/2018 were used for making investments, the income of which exempt. However, such initi…

M/S Sunev Pharma Solution Ltd., Panchkula vs. ACIT, Panchkula

In the result, both the appeals of the assessee are hereby allowed

ITA 354/CHANDI/2017[2013-14]Status: DisposedITAT Chandigarh07 Aug 2018AY 2013-14

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: S/Sh. S.C.Gupta & Jaspal SharmaFor Respondent: Sh. Gulsthan Raj, CIT DR
Section 14A

…section (3) of Section 14A further emphasis that even when assessee claims that no expenditure has been incurred by him even then also recording of satisfaction is a pre-requisite. 13. Judgment of Hon’ble High Court In the case of CIT Vs. Abhishek Industries 380 ITR 652 (P&H)held as under “Section 14A of the Act requires the Assessing Officer to record satisfaction that interest bearing funds , have been used to earn tax free income. The satisfaction to be recorded must be based upon credible and relevant evidence. The onus, therefore, to prove that interest bearing funds were used, lies squarely on the shoulder…

M/S Sunev Pharma Solution Ltd., Panchkula vs. DCIT, Pkl Circle, Panchkula

In the result, both the appeals of the assessee are hereby allowed

ITA 1167/CHANDI/2017[2014-15]Status: DisposedITAT Chandigarh07 Aug 2018AY 2014-15

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: S/Sh. S.C.Gupta & Jaspal SharmaFor Respondent: Sh. Gulsthan Raj, CIT DR
Section 14A

…section (3) of Section 14A further emphasis that even when assessee claims that no expenditure has been incurred by him even then also recording of satisfaction is a pre-requisite. 13. Judgment of Hon’ble High Court In the case of CIT Vs. Abhishek Industries 380 ITR 652 (P&H)held as under “Section 14A of the Act requires the Assessing Officer to record satisfaction that interest bearing funds , have been used to earn tax free income. The satisfaction to be recorded must be based upon credible and relevant evidence. The onus, therefore, to prove that interest bearing funds were used, lies squarely on the shoulder…

DCIT, Cir-12(1), Kolkata vs. M/S Dalmia Securities Pvt. Ltd., Kolkata

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

ITA 1369/KOL/2015[2010-2011]Status: DisposedITAT Kolkata07 Mar 2018AY 2010-2011

Bench: Hon’Ble Shri Aby. T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 1369/Kol/2015 Assessment Year : 2010-11 Dcit, Circle- 12(1), Kolkata. -Vs- M/S Dalmia Securities Pvt. Ltd. [Pan: Aabcd 1813 G] (Appellant) (Respondent)

For Appellant: Shri Sallong Yaden, Addl. CIT (DR)For Respondent: Shri Ashim Chowdhury, ACA
Section 143(3)Section 14ASection 14A(2)Section 94(7)

…e made if it is proved that the assessee is having sufficient own funds with it. With regard to non-recording of satisfaction he placed reliance on the decision of Hon’ble Punjab & Haryana High Court in the case of CIT vs. Abhishek Industries Ltd. reported in 380 ITR 652 (P&H) wherein it was held that the satisfaction to be recorded by the ld. AO must be based on credible and relevant evidence and that the ld. AO cannot by recording general observation, particularly where the assessee has denied using interest bearing funds, proceed to infer that the interest bearing funds must have been used to earn exempted inc…

Asst CIT 10(3)(1), Mumbai vs. Nandraj Developers P. Ltd, Mumbai

ITA 727/MUM/2015[2009-10]Status: DisposedITAT Mumbai24 Aug 2016AY 2009-10
For Appellant: NoneFor Respondent: Shri N. Sathya Moorthy-DR
Section 14Section 143Section 14ASection 254(1)

…आयकर अपीलीय अिधकरण, मुंबई “ई” खंडपीठ Income-tax Appellate Tribunal -“E”Bench Mumbai सव"ी सव"ी सव"ी राजे"" सव"ी राजे"" राजे"",लेखा राजे"" लेखा लेखा सद"य लेखा सद"य सद"य एवं सद"य एवं एवं सी एवं सी सी. एन सी एन एन. "साद एन "साद "साद,"याियक "साद "याियक "याियक सद"य "याियक सद"य सद"य सद"य Before S/Shri Rajendra,Accountant Member and C.N. Prasad,Judicial Member आयकर आयकर अपील अपील संसंसंसं./ITA/727/Mum/2015,िनधा"रण िनधा"रण वष" वष" /Assessment Years: 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" ACIT-10 (3)(1) M/s. Nandraj Developers Pvt. Ltd. Room No.212, Aayakar Bhavan 1, Sheffield Towers Society Vs. M.K Road V…

Usha Garments Manufacturing Co P. Ltd, Mumbai vs. DCIT 8(3), Mumbai

The appeal of the assessee is partly allowed for statistical purpose

ITA 4213/MUM/2014[2010-11]Status: DisposedITAT Mumbai11 Mar 2016AY 2010-11

Bench: Shri Joginder Singh & Shri Jason P. Boazassessment Year: 2010-11 Usha Garments Mfg. Dcit, Company P. Ltd. Ward-8(3), बनाम/ Plot .13, Wicel, Midc, Aayakar Bhavan, Vs. Andheri (East), Mumbai-400020 Mumbai-400093 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaacu1397H

Section 10(34)Section 14ASection 32

…t no borrowed funds were utilized by the assessee for making the investment for which our attention was invited to page 8 of the paper book. Reliance was placed upon the decision of Hon’ble Punjab & Haryana High Court in CIT v. Abhishek Industries Ltd. [2016] 380 ITR 652. Plea was also raised that the ld. Assessing Officer has not recorded satisfaction while making the disallowance. On the other hand, the ld. DR defended the disallowance made by the Assessing Officer and confirmed by the ld. Commissioner of Income Tax (Appeals). 3.1 We have considered the rival submissions and perused the material available on r…