REI Agro Ltd. v. DCIT

Akzo Nobel India Limited, Kolkata vs. DCIT, Circle - 10(1), Kolkata

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

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am Akzo Nobel India Limited Vs. Dcit, Circle-10(1), Kolkata Geetanjali Middletown Street, Kolkata – 700071. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaci6297A (अपीलाथ" /Appellant) (""यथ" / Respondent) ..

…vest Ltd. Vs CIT 317 ITD 33(Delhi), wherein it was held that if there is no exempt income earned or received by the assessee, no disallowance is warranted under section 14A read with rule 8D of the Rules. The ITAT Kolkata in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141 (Kol-Trib) has held 13 Akzo Nobel India Limited that it is only the investments which yields dividend during the previous year that has to be considered while adopting the average value of investments for the purpose of Rule 8D(2)(ii) & (iii) of the Rules. The aforesaid view of the Tribunal has since been affirmed as correct by the Hon'ble Calcu…

DCIT, Cir-3(1), Kolkata vs. M/S Saregama India Ltd, Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Saini

…income from dividends to the tune of ₹61,80,942/-. Learned senior counsel’s only case is that the same ought to have been restricted to exempt income yielding investment only as per the tribunal’s co-ordinate bench’s decision in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) as upheld in hon'ble jurisdictional high court. Learned CIT-DR fails to rebuttal the crucial fact that lower authorities have taken into account the assessee’s non exempt income yielding investment as well. The fact also remains that we are dealing with an indirect head of expenditure wherein some kind of proportional location on estimate b…

DCIT, Cir-3(1), Kolkata vs. M/S Saregama India Ltd, Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Saini

…income from dividends to the tune of ₹61,80,942/-. Learned senior counsel’s only case is that the same ought to have been restricted to exempt income yielding investment only as per the tribunal’s co-ordinate bench’s decision in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) as upheld in hon'ble jurisdictional high court. Learned CIT-DR fails to rebuttal the crucial fact that lower authorities have taken into account the assessee’s non exempt income yielding investment as well. The fact also remains that we are dealing with an indirect head of expenditure wherein some kind of proportional location on estimate b…

DCIT, Cir-3(1), Kolkata vs. M/S Saregama India Ltd, Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Saini

…income from dividends to the tune of ₹61,80,942/-. Learned senior counsel’s only case is that the same ought to have been restricted to exempt income yielding investment only as per the tribunal’s co-ordinate bench’s decision in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) as upheld in hon'ble jurisdictional high court. Learned CIT-DR fails to rebuttal the crucial fact that lower authorities have taken into account the assessee’s non exempt income yielding investment as well. The fact also remains that we are dealing with an indirect head of expenditure wherein some kind of proportional location on estimate b…

DCIT, Cir-3(1), Kolkata vs. M/S Saregama India Ltd, Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Saini

…income from dividends to the tune of ₹61,80,942/-. Learned senior counsel’s only case is that the same ought to have been restricted to exempt income yielding investment only as per the tribunal’s co-ordinate bench’s decision in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) as upheld in hon'ble jurisdictional high court. Learned CIT-DR fails to rebuttal the crucial fact that lower authorities have taken into account the assessee’s non exempt income yielding investment as well. The fact also remains that we are dealing with an indirect head of expenditure wherein some kind of proportional location on estimate b…

M/S Saregama India Limited, Kolkata vs. DCIT, Cir.-3(1), Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Saini

…income from dividends to the tune of ₹61,80,942/-. Learned senior counsel’s only case is that the same ought to have been restricted to exempt income yielding investment only as per the tribunal’s co-ordinate bench’s decision in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) as upheld in hon'ble jurisdictional high court. Learned CIT-DR fails to rebuttal the crucial fact that lower authorities have taken into account the assessee’s non exempt income yielding investment as well. The fact also remains that we are dealing with an indirect head of expenditure wherein some kind of proportional location on estimate b…

M/S Saregama India Limited, Kolkata vs. DCIT, Cir.-3(1), Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Saini

…income from dividends to the tune of ₹61,80,942/-. Learned senior counsel’s only case is that the same ought to have been restricted to exempt income yielding investment only as per the tribunal’s co-ordinate bench’s decision in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) as upheld in hon'ble jurisdictional high court. Learned CIT-DR fails to rebuttal the crucial fact that lower authorities have taken into account the assessee’s non exempt income yielding investment as well. The fact also remains that we are dealing with an indirect head of expenditure wherein some kind of proportional location on estimate b…

M/S Saregama India Limited, Kolkata vs. DCIT, Cir.-3(1), Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Saini

…income from dividends to the tune of ₹61,80,942/-. Learned senior counsel’s only case is that the same ought to have been restricted to exempt income yielding investment only as per the tribunal’s co-ordinate bench’s decision in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) as upheld in hon'ble jurisdictional high court. Learned CIT-DR fails to rebuttal the crucial fact that lower authorities have taken into account the assessee’s non exempt income yielding investment as well. The fact also remains that we are dealing with an indirect head of expenditure wherein some kind of proportional location on estimate b…

New India Retailing & Investment Limited, Kolkata vs. D.C.I.T., Circle-6(1), Kolkata

In the result, the appeal of the assessee is allowed

Bench: Shri P.M. Jagtap, Vice-

…2)(ii) and 8D(2)(iii), the assessee-company has considered only the investments from which dividend income was received during the year under consideration. Although the assessee- company relied on the decision of the Tribunal in the case of REI Agro Limited (144 ITD 141) to support and substantiate the said computation, the Assessing Officer held by relying on the CBDT Circular No. 5/2014 dated 11.02.2014 that for invoking disallowance under section 14A, it was not material that the assessee should have earned such exempt income during the relevant year. He accordingly recomputed the disallowance to be made unde…

M/S. Hindusthan National Glass & Industries Ltd., Kolkata vs. D.C.I.T, Circle - 5(2), Kolkata

In the result, the appeal of the assessee is allowed

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.515/Kol/2019 ("नधा"रणवष" / Assessment Year: 2013-14)

…ant an opportunity of hearing before passing any order in this regard. This ground is therefore allowed for statistical purposes. As regards to disallowance of ihe expenses under rule 8D (iii) Hon'ble jurisdictional ITAT in the case of RE1 Agro Ltd. vs. DC1T (144 ITD 141) has held that only the investments which actually yield exempt income has to be considered for the purposes of application of Rule 8D(2)(iii). The ITAT held that the investments which did not yield any tax-free income in the relevant year were not required to be considered for the purposes of application of Rule 8D. Keeping in view, of above and…

Udaipuria Commercial Pvt. Ltd., Kolkata vs. ITO, Ward - 6(4), Kolkata

In the result, the appeal of the assessee is allowed for statistical purposes

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.135/Kol/2019 ("नधा"रणवष" / Assessment Year: 2014-15)

…for the revenue and perused the material available on record. We note that the issue raised by the assessee in its grounds of appeal is no longer res integra. We note that the Co-ordinate Bench of ITAT Kolkata in the case of REI Agro Ltd. vs. DCIT reported in 144 ITD 141 (Kol-Trib) has held that it is only the investment which yields dividend during the previous year that has to be considered while adopting the average value of investment for the purpose of Rule 8D(2)(ii) and Rule 8D(2)(iii) of the Income Tax Rules. The aforesaid view of the Tribunal has since been confirmed as correct by the Hon’ble Calcutta Hig…

ACIT, Circle - 6(2), Kolkata vs. M/S Williamson Magor & Company Limited, Kolkata

In the result, the revenue’s appeal and the assessee’s cross

…e decision of thi This issue is no more res integra in view of the decision of this Bench of the Tribunal in the case of Kolkata Bench of the ITAT in the case of Kolkata Bench of the ITAT in the case of REI Agro Ltd. v. Dy. CIT REI Agro Ltd. v. Dy. CIT [2013] 144 ITD 141/35 taxmann.com 404 [2013] 144 ITD 141/35 taxmann.com 404 and the decision of the Delhi Special Bench of and the decision of the Delhi Special Bench of the Tribunal in the case of the Tribunal in the case of ACIT vs. Vireet Investments (P.) Ltd. [2017] 82 taxmann.com [2017] 82 taxmann.com 415 (Delhi - Trib.) (SB). The ratio of the decision in the…

ACIT, Cir-11(2), Kolkata vs. M/S Srei Infrastructure Finance Ltd., Kolkata

In the result, the appeal filed by the assessee and Revenue are allowed to the extent indicated above

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am Srei Infrastructure Finance Ltd. Vs. Addl. Cit, Range-9, New Delhi D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Assessee) .. (Revenue/Department) Addl. Cit, Range-9, New Delhi Vs. Srei Infrastructure Finance Ltd. D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant) Srei Infrastructure Finance Ltd. Vs. Dcit, Circle-11(2), Kolkata 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Appellant) .. (Respondent) Acit, Circle-11(2), Kolkata Vs. Srei Infrastructure Finance Ltd. 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant)

…est Ltd. Vs CIT 317 ITD 33 (Delhi), wherein it was held that if there is no exempt income earned or received by the assessee, no disallowance is warranted under section 14A read with rule 8D of the Rules. The ITAT Kolkata in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141 (Kol-Trib) has held that it is only the investments which yields dividend during the previous year that has to be considered while adopting the average value of investments for the purpose of Rule 8D(2)(ii) & (iii) of the Rules. The aforesaid view of the Tribunal has since been affirmed as correct by the Hon’ble Calcutta High Court in G.A.No.3581…

Srei Infrastructure Finance Limited, Kolkata vs. DCIT, Circle-11(2), Kolkata

In the result, the appeal filed by the assessee and Revenue are allowed to the extent indicated above

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am Srei Infrastructure Finance Ltd. Vs. Addl. Cit, Range-9, New Delhi D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Assessee) .. (Revenue/Department) Addl. Cit, Range-9, New Delhi Vs. Srei Infrastructure Finance Ltd. D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant) Srei Infrastructure Finance Ltd. Vs. Dcit, Circle-11(2), Kolkata 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Appellant) .. (Respondent) Acit, Circle-11(2), Kolkata Vs. Srei Infrastructure Finance Ltd. 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant)

…est Ltd. Vs CIT 317 ITD 33 (Delhi), wherein it was held that if there is no exempt income earned or received by the assessee, no disallowance is warranted under section 14A read with rule 8D of the Rules. The ITAT Kolkata in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141 (Kol-Trib) has held that it is only the investments which yields dividend during the previous year that has to be considered while adopting the average value of investments for the purpose of Rule 8D(2)(ii) & (iii) of the Rules. The aforesaid view of the Tribunal has since been affirmed as correct by the Hon’ble Calcutta High Court in G.A.No.3581…

D.C.I.T Cir - 3(1), Kolkata vs. M/S the Peerless General Finance & Investment Co Ltd, Kolkata

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

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Ita No. 1469 & 1470/Kol/2019 Assessment Year: 2013-14 & 2015-16 Deputy Commissioner Of Income Tax, Circle-12(1), Kolkata……………….………....…........Appellant Vs. M/S. The Peerless General Finance & Investment & Co. Ltd..................……………….…..Respondent 3, Esplanade East Kolkata – 700 069 [Pan : Aabct 3043 L] Appearances By: Shri Supriyo Pal, Jcit Sr. D/R, Appearing On Behalf Of The Revenue Shri S.K. Tulsiyan, Adv. & Subrata Dey, Ca, Appeared On Behalf Of The Assessee. . Date Of Concluding The Hearing : October 31St, 2019 Date Of Pronouncing The Order : December 5Th, 2019 Order Per J. Sudhakar Reddy, Am :-

…les, 1962 (‘Rules’). Thus, this issue is covered in Thus, this issue is covered in favour of the assessee by the order of this Bench of the favour of the assessee by the order of this Bench of the Tribunal in the case of REI Agro REI Agro Ltd. vs. DCIT [2013] 144 ITD 141 (Kolkata [2013] 144 ITD 141 (Kolkata - Trib.), wherein it was held as under: wherein it was held as under:- “Section 14A of the Income Section 14A of the Income-tax Act, 1961, read with rule 8D of the Income tax Act, 1961, read with rule 8D of the Income-tax Rules, 1962 - Expenditure incurred in relation to income not includible in Expenditure in…

DCIT, Circle - 3(1), Kolkata vs. M/S. the Peerless General Finance & Investment Co. Ltd., Kolkata

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

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Ita No. 1469 & 1470/Kol/2019 Assessment Year: 2013-14 & 2015-16 Deputy Commissioner Of Income Tax, Circle-12(1), Kolkata……………….………....…........Appellant Vs. M/S. The Peerless General Finance & Investment & Co. Ltd..................……………….…..Respondent 3, Esplanade East Kolkata – 700 069 [Pan : Aabct 3043 L] Appearances By: Shri Supriyo Pal, Jcit Sr. D/R, Appearing On Behalf Of The Revenue Shri S.K. Tulsiyan, Adv. & Subrata Dey, Ca, Appeared On Behalf Of The Assessee. . Date Of Concluding The Hearing : October 31St, 2019 Date Of Pronouncing The Order : December 5Th, 2019 Order Per J. Sudhakar Reddy, Am :-

…les, 1962 (‘Rules’). Thus, this issue is covered in Thus, this issue is covered in favour of the assessee by the order of this Bench of the favour of the assessee by the order of this Bench of the Tribunal in the case of REI Agro REI Agro Ltd. vs. DCIT [2013] 144 ITD 141 (Kolkata [2013] 144 ITD 141 (Kolkata - Trib.), wherein it was held as under: wherein it was held as under:- “Section 14A of the Income Section 14A of the Income-tax Act, 1961, read with rule 8D of the Income tax Act, 1961, read with rule 8D of the Income-tax Rules, 1962 - Expenditure incurred in relation to income not includible in Expenditure in…

DCIT, Circle - 6, Kolkata vs. Williamson Magor & Company Limited, Kolkata

In the result, the appeal of the Revenue is dismissed

Bench: Shri S.S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.164/Kol/2019 ("नधा"रणवष" / Assessment Year: 2013-14)

…IT(A) and other materials available on record. We note that the issue under consideration in respect of disallowance u/s 14A read with Rule 8D is no longer res integra. As per the judgment of jurisdictional ITAT Kolkata in REI Agro Limited vs DCIT reported in 144 ITD 141 on the dividend bearing security is to be taken into account for the purpose of disallowance under Rule 8D(2)(ii) and (iii). Apart from this, the disallowance made u/s 14A is not the subject matter of computation of book profit u/s 115JB as has been held by the Special Bench of ITAT in the case of ACIT vs. Vireet Investment Pvt. Ltd. reported in…

DCIT, Circle - 1(1), Kolkata vs. M/S. Mcnally Bharat Engineering Company Limited, Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am I.T.A Nos. 147&109 & C.O Nos.35 & 36/Kol/2018 ("नधा"रण वष" / Assessment Years: 2010-11 & 2011-12) Dcit, Circle-1(1), Kolkata Vs. M/S. Mcnally Bharat Engineering Ltd. M/S Mcnally Bharat Engineering Co. Company Limited, 4, Mangoe Lane, Kolkata – 700001. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabcm9443R (Appellant) .. (Respondent/Cross-Objector)

…640 (SC) holds that the purpose of making exempt income yielding investments is no more a guiding factor, we therefore decline the assessee’s foregoing argument. The fact also remains that this tribunal’s coordinate bench’s decision in REI Agro Ltd. vs. DCIT 144 ITD 141 (Kol) holds that only exempt income yielding investment have to be considered for computing the impugned disallowance. The same has nowhere been considered in either of the lower proceedings. This tribunal’s yet another decision in Maruti Traders & Investors vs. ACIT ITA No.846/Kol/17 & No.637/Kol/18 dated 28.11.18 holds that since administrative…