S.R. Thorat Milk Products(P) Ltd. v. ACIT

PHL FINVEST P. LTD,MUMBAI vs. DCIT 7(3)(2), MUMBAI

The appeal is allowed for statistical purposes

Bench: Shri Vikas Awasthy & Shri S.Rifaur Rahmanआअसं. 280/मुं/2018 ("न. व.2013-14 ) M/S. Phl Fininvest Pvt. Ltd. 4Th Floor, Piramal Tower, Ganpatrao Kadam Marg, Lower Parel ,Mumbai 400 013. Pan: Aaacn-5024-A ...... अपीलाथ" /Appellant बनाम Vs. Dy. Commissioner Of Income Tax, Range – 7(3)(2) Room No.623, 6Th Floor, Aaykar Bhavan, M.K.Road, Mumbai 400 020 ..... ""तवाद"/Respondent

…n for allotment of shares, whereas, the assessee has charged interest upto the date of allotment of shares. The ld. Authorized Representative of the assessee placed reliance on the decision rendered in the case of S.R. Thorat Milk Products Pvt. Ltd. vs. ACIT, 159 ITD 255 (Pune-Trib) to contend that interest paid on share application money pending allotment of shares would be allowable as revenue expenditure. 5 6. Per contra, Sh. Sushil Kumar Mishra representing the Department vehemently defended the assessment order and prayed for dismissing appeal of the assessee. The ld. Departmental Representative submitted…

DY.CIT.,-8(1), MUMBAI vs. E-CITY PROJECTS CONSTRUCTION PVT.LTD.,, MUMBAI

In the result, appeal of revenue is dismissed whereas appeal of assessee is allowed

…t dated 01/12/2007 assessee was under obligation to pay interest on the funds provided by way of share application money. Reliance was also placed on the decision of Pune Bench of the Hon'ble Tribunal in the case of S.R. Thorat Milk Products(P) Ltd. Vs. ACIT (159 ITD 255) in support of the proposition that the share application money cannot be equated with the share capital as obligation to return money is always implicit in event of non allotment of shares hence payment of interest on share application money pending allotment of shares would be allowable as revenue expenditure. Reliance was placed on the decisio…

E-CITY PROJECTS CONSTRUCTION P.LTD,MUMBAI vs. DCIT OSD 8(1), MUMBAI

In the result, appeal of revenue is dismissed whereas appeal of assessee is allowed

…t dated 01/12/2007 assessee was under obligation to pay interest on the funds provided by way of share application money. Reliance was also placed on the decision of Pune Bench of the Hon'ble Tribunal in the case of S.R. Thorat Milk Products(P) Ltd. Vs. ACIT (159 ITD 255) in support of the proposition that the share application money cannot be equated with the share capital as obligation to return money is always implicit in event of non allotment of shares hence payment of interest on share application money pending allotment of shares would be allowable as revenue expenditure. Reliance was placed on the decisio…