Rain Commodities Ltd. v. Dy. CIT

Batliboi Ltd, Mumbai vs. DCIT Cir 2(1), Mumbai

In the result, appeal of the assessee is allowed in part

Bench: Shri M.Balaganesh, Am & Shri Pavan Kumar Gadale, Jm M/S. Batliboi Limited Vs. Dy. Cit, Circle 2(1) Bharat House, Aayakar Bhavan 5Th Floor, 104 5Th Floor, Mumbai-400001 Mumbai Samachar Marg Fort, Mumbai -400 001 Pan/Gir No. Aaacb4408L (Appellant) .. (Respondent)

…has essentially relied on the following decisions: (a) Decision of the Hyderabad Tribunal in the case of Gulf Oil Corpn. Ltd. v. Asstt. CIT [2008] 111 ITD 124 (Hyd.) (b) Veekaylal Investment Co. (P.) Ltd. (supra) (c) Rain Commodities Ltd. v. Dy. CIT [2010] 40 SOT 265 (Hyd.) (SB) ii. In the case of Gulf oil, (Hyderabad ITAT decision), it is noticed that, the issue under consideration was whether advisory fee debited as an extra-ordinary item in the Profit and Loss account was to be considered while computing Book profits u/s. 115JB. The premise on which adjustment was sought was that the item under considerati…

Rahas Investment P.Ltd, Mumbai vs. DCIT 10(1), Mumbai

In the result, appeal of the assessee is dismissed and appeal of the revenue is dismissed

Bench: Shri M.Balaganesh, Am & Shri Amarjit Singh, Jm M/S. Lupin Investments Vs. Deputy Commissioner Of Private Limited (Successor To Income Tax, 10(1) Rahas Investments Private Aayakar Bhavan Limited M.K.Road, 159, Cst Road, Mumbai – 400 020 Kalina, Santacruz(E) Mumbai – 400 098 Pan/Gir No.Aaacr3202L (Appellant) .. (Respondent) Deputy Commissioner Of Vs. M/S. Lupin Investments Private Income Tax, 10(1) Limited (Successor To Rahas Aayakar Bhavan Investments Private Limited M.K.Road, 159, Cst Road, Mumbai – 400 020 Kalina, Santacruz(E) Mumbai – 400 098 Pan/Gir No.Aaacr3202L (Appellant) .. (Respondent) Assessee By Shri Hemen Chandariya Revenue By Shri Padmapani Bora Date Of Hearing 08/11/2019 Date Of Pronouncement 05/02/2020

…e of inclusion as book profits u/s.115JB of the Act. 13.6. The ld. DR also placed reliance on the following decisions in support of his proposition:- a. Decision of Special Bench of Hyderabad Tribunal in the case of Rain Commodities Ltd vs. DCIT reported in 40 SOT 265. b. Decision of Chennai Tribunal in the case of DCIT vs. Western India Cashew Co. Pvt. Ltd. reported in 155 ITD 356 13.7. In view of the elaborate observations, the aforesaid decisions relied upon by the ld. DR would not come to the rescue of the revenue. We also find that all these decisions were subsequently considered by various decisions of t…

Allied Digital Services Ltd., Mumbai vs. DCIT, CC- 1(3), Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

Bench: Shri G. Manjunatha & Shri Ram Lal Negiassessment Year: 2012-13

…ion 14A of the Income Tax Act, 1961. 5. The Ld. CIT(A) after considering the relevant submissions of the assessee and also by relying upon certain judicial proceedings including the decision of ITAT Special Bench, in the case of Rain Commodities Ltd. Vs. DCIT 40 SOT 265 held that it is a settled position of law that the AO has the power to alter or rewrite the net profit as per profit & loss account, in case it is found that profit & loss account is not prepared in accordance with parts II & III of schedule VI to the Companies Act, 1956 and if accounting policies and accounting standards are not adopted for prepa…

Gts E-Services P.Ltd, Mumbai vs. ITO 15(1)(4), Mumbai

The appeal stands partly allowed

Bench: Hon’Ble Shri Pawan Singh, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.1231/Mum/2017 (िनधा"रण वष" / Assessment Year: 2012-13) Gts E-Services Private Ltd. Income Tax Officer-15(1)(4) 103, A-Wing Kensinton Room No.15B, Ground Floor बनाम/ Hiranandani Business Park Aaykar Bhavan, M.K. Road Vs. Hiranandani Builder Sez Mumbai-400 020. Powai, Mumbai-400 076. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaccg-8662-R (अपीलाथ"/Appellant) (""थ" / Respondent) : Assessee By : Shri Nilesh Patel- Ld. Ar Revenue By : Shri V.K. Agarwal – Addl. Cit-Ld. Dr सुनवाई की तारीख/ : 26/06/2019 Date Of Hearing घोषणा की तारीख / : 03/07/2019 Date Of Pronouncement आदेश / O R D E R

…05 ITR 409 (SC) and iv. DCIT v. Bisleri Sales Ltd.: 151 TTJ 285 (Mum)(ITAT) 35. The Ld. Sr. DR on the other hand supported the order of the AO on the strength of the decision of the Special Bench of the Tribunal in the case of Rain Commodities v. DCIT: (2010) 40 SOT 265. 36. We have considered the rival submissions and perused the material on record. It is settled law that except for adjustments provided in Explanation 1 Section 115JB(2) of the Act, no other adjustment can be made to book profits under Section 115JB of the Act. We find that that transfer pricing adjustment is not one of the adjustments contemplat…

Asst CIT (Ltu) 2, Mumbai vs. Reliance Industries Ltd, Mumbai

Bench: S/Shri B.R.Baskaran (Am) & Amarjit Singh (Jm)

…limited power to increase and reduce items as provided in Explanation to sec. 115JB of the Act. In support of this proposition, the Ld D.R placed his reliance on the decision rendered by the Special bench of Tribunal in the case of Rain Commodities Ltd (2010)(40 SOT 265). We notice that an identical issue was considered by the co-ordinate bench in the case of M/s Alok Industries Ltd (ITA No.1017/Mum/2017 dated 21-05-2018) and has been held that the Capital receipts cannot be included in the Book Profit u/s 115JB of the Act. We notice that an identical view has been expressed in several other cases also by the co-…