Seth R. Dalmia v. CIT

PIYUSH SUBHASH WADHWA,MUMBAI vs. CIT(APPEAL), DELHI

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

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankarpiyush Subhash Wadhwa V/S. Commissioner Of Income 64, Ashirwad Icici बनाम Tax (Appeal)National Apartments, Gd Ambekar Appeal Faceless Centre, Marg, Naigaon Dadar(E), Delhi Mumbai – 400 014, Maharashtra स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aagpw3024N Appellant/अपीलार्थी .. Respondent/प्रतिवादी

…tions. In this regard, reliance has been P a g e | 10 A.Y. 2016-17 Piyush Subhash Wadhwa placed on various judicial decision i.e.CIT v. Rajendra Prasad Moody115 ITR 519 (SC),CIT v. Smt. Sushila Devi Khadaria 319 ITR 413 (Bom- HC),Seth R. Dalmia v. CIT, Delhi 110 ITR 644 (SC),CIT v. Darashaw & Co. Pvt. Ltd. -ITA No. 2627 and 2628 of 2011 (Bom-HC),CIT v. Ballarpur Industries Ltd. -ITA No. 138 of 2003 (Bom-HC) etc. 7. The ld.DR on the other hand placed reliance on the orders of the authorities below contenting further that no purpose for loan given to builder was adduced nor any agreement was made for giving loan.…

DY COMMISSIONER OF INCOME TAX, MUMBAI vs. HITESH SHANTILAL MEHTA, MUMBAI

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

Bench: adverting to the merits, it is necessary to record that Ground No. 1 raised in the cross-objection was expressly stated to be not pressed by the learned counsel for the assessee at the time of hearing. Accordingly, Ground No. 1 of the cross-objection is dismissed as not pressed. The adjudication hereinafter is, therefore, confined exclusively to Ground No. 2 of the cross- objection, which pertains to the allowability of interest expenditure under section 57 of the Act. 4. Briefly stated, th

…The mere fact that income by way of dividend Awe accrued and that the expenditure incurred is in some manner or other related to the accrual of the dividend income is not sufficient. 31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CFT, (1977) 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi (1975) 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

DY COMMISSIONER OF INCOME TAX, MUMBAI vs. HITESH SHANTILAL MEHTA, MUMBAI

In the result, the cross-objections filed by the assessee are allowed

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

…re has to be the making or earning of the dividend income. The mere fact that income by way of dividend Awe accrued and that the expenditure incurred is in some manner or sufficient. 31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CFT, (1977) 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi (1975) 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

DY COMMISSIONER OF INCOME TAX, MUMBAI vs. HITESH SHANTILAL MEHTA, MUMBAI

In the result, the cross-objections filed by the assessee are allowed

Bench: the Tribunal, as stipulated under CBDT Circular No.09/2024 dated 17.09.2024. It was also not the case of the Revenue that the present appeals fall within any of the exceptions carved out in the said Circular. In view of this admitted position and having regard to the binding nature of the Circular, which expressly applies even to pending appeals, the maintainability of the Revenue's appeals stands squarely governed by the said Circular. 3

…re has to be the making or earning of the dividend income. The mere fact that income by way of dividend Awe accrued and that the expenditure incurred is in some manner or sufficient. 31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CFT, (1977) 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi (1975) 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

DY COMMISSIONER OF INCOME TAX, MUMBAI vs. HITESH SHANTILAL MEHTA, MUMBAI

In the result, the cross-objections filed by the assessee are allowed

Bench: the Tribunal, as stipulated under CBDT Circular No.09/2024 dated 17.09.2024. It was also not the case of the Revenue that the present appeals fall within any of the exceptions carved out in the said Circular. In view of this admitted position and having regard to the binding nature of the Circular, which expressly applies even to pending appeals, the maintainability of the Revenue's appeals stands squarely governed by the said Circular. 3

…re has to be the making or earning of the dividend income. The mere fact that income by way of dividend Awe accrued and that the expenditure incurred is in some manner or sufficient. 31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CFT, (1977) 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi (1975) 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

DY. COMMISSIONER OF INCOME TAX, MUMBAI vs. PRATIMA HITESH MEHTA, MUMBAI

In the result, grounds of appeal raised by revenue in A

Bench: Shri Pawan Singh& Smt. Renu Jauhri

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER& SMT. RENU JAUHRI, ACCOUNTANT MEMBER ITA No. 5452/MUM/2025 (AY: 2008-09) (Physical hearing) DCIT, Mumbai Pratima Hitesh Mehta 420, 4th Floor, Kautilya Bhawan, Vs 32, Dr. Anne Besant Road, Worli, G Block, BKC, Bandra (East), Mumbai – 400018. Mumbai – 400051. [PAN: ABNPM8226G] Appellant / Revenue Respondent / Assessee Assessee by Shri Dharmesh Shah, Advocate a/w Ms. Mitali Parekh, Advocate Revenue by Dr. P. Daniel, Advocate (Special Counsel) Date of Institution 30.08.2025 Date of hearing 04.11.2025 Date of pronouncement…

DY. COMMISSIONER OF INCOME TAX, KAUTILYA BHAWAN vs. PRATIMA HITESH MEHTA, MUMBAI

In the result, grounds of appeal raised by revenue in A

Bench: Shri Pawan Singh& Smt. Renu Jauhri

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER& SMT. RENU JAUHRI, ACCOUNTANT MEMBER ITA No. 5452/MUM/2025 (AY: 2008-09) (Physical hearing) DCIT, Mumbai Pratima Hitesh Mehta 420, 4th Floor, Kautilya Bhawan, Vs 32, Dr. Anne Besant Road, Worli, G Block, BKC, Bandra (East), Mumbai – 400018. Mumbai – 400051. [PAN: ABNPM8226G] Appellant / Revenue Respondent / Assessee Assessee by Shri Dharmesh Shah, Advocate a/w Ms. Mitali Parekh, Advocate Revenue by Dr. P. Daniel, Advocate (Special Counsel) Date of Institution 30.08.2025 Date of hearing 04.11.2025 Date of pronouncement…

DY. COMMISSIONER OF INCOME TAX, KAUTILYA BHAWAN vs. PRATIMA HITESH MEHTA, MUMBAI

In the result, grounds of appeal raised by revenue in A

Bench: Shri Pawan Singh& Smt. Renu Jauhri

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER& SMT. RENU JAUHRI, ACCOUNTANT MEMBER ITA No. 5452/MUM/2025 (AY: 2008-09) (Physical hearing) DCIT, Mumbai Pratima Hitesh Mehta 420, 4th Floor, Kautilya Bhawan, Vs 32, Dr. Anne Besant Road, Worli, G Block, BKC, Bandra (East), Mumbai – 400018. Mumbai – 400051. [PAN: ABNPM8226G] Appellant / Revenue Respondent / Assessee Assessee by Shri Dharmesh Shah, Advocate a/w Ms. Mitali Parekh, Advocate Revenue by Dr. P. Daniel, Advocate (Special Counsel) Date of Institution 30.08.2025 Date of hearing 04.11.2025 Date of pronouncement…

PRATIMA HITESH MEHTA ,MUMBAI vs. DCIT, CC -4(1), MUMBAI

In the result, appeal of the assessee is partly allowed

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 1992-1993 Pratima Hitesh Mehta Vs Deputy Commissioner Of 32, Madhuli Apartment, Income-Tax, Cc -4(1), 3Rd Floor, Dr. A.B Road, Worli, Mumbai Mumbai - 400018 [Pan: Abnpm8226G] Appellant Respondent Present For: Appellant By : Shri Dharmesh Shah & Ms. Mitali Parekh, Advocates Respondent By : Dr. P. Daniel (Special Counsel For Dept.) Date Of Hearing : 29.07.2025 Date Of Pronouncement : 17.10.2025 O R D E R Per Girish Agrawal: This Appeal Filed By The Assessee Is Against The Order Of Cit(A)-52, Mumbai, Vide Order No. Itba/Apl/S/250/2024-25/1070774879(1), Dated 29.11.2025 Passed Against The Assessment Order By Deputy Commissioner Of Income-Tax, Cc-4(1), Mumbai, U/S. 144 R.W.S. 254 Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”), Dated 19.07.2024 For Assessment Year 1992-93. 2. Grounds Taken By The Assessee Are Reproduced As Under: 1. The Ld. Cit(A) Has Erred In Law & In Fact In Partly Confirming The Assessment Order Passed U/S. 144 R.W.S. 254 Of The Act Dated 19.07.2024. 2. The Ld. Cit(A) Has Erred In Law & In Fact In Not Quashing The Assessment Order Which Is Time Barred & Hence Void.

…he mere fact that income by way of dividend has accrued and that the expenditure incurred is in some manner or other related to the accrual of the dividend Income is not sufficient." 31. We find that the Hon'ble Supreme Court In Seth R. Dalmia v/s CIT, [1977] 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

GROWMORE LEASING & INVESTMENT LTD ,MUMBAI vs. DCIT, CC-4(1) (ERSTWHILE DCIT-31, MUMBAI

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

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

…that the expenditure incurred is in some manner or other related to the accrual of the dividend income is not sufficient." I.T.A. No. 452 & 660/Mum/2023 Assessment Year: 1993-94 13 31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

GROWMORE LEASING AND INVESTMENTS LTD,MUMBAI vs. DCIT, CC-4(1) (ERSTWHILE DCIT-31, MUMBAI

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

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

…that the expenditure incurred is in some manner or other related to the accrual of the dividend income is not sufficient." I.T.A. No. 452 & 660/Mum/2023 Assessment Year: 1993-94 13 31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

SUDHIR S. MEHTA,MUMBAI vs. DCIT,CC-4(1) (ERSTWHILE DCIT, CC -31), MUMBAI

In the result, ground no. 6 raised by the assessee is allowed

…ere fact that income by way of\ndividend has accrued and that the expenditure incurred is in some manner or other\nrelated to the accrual of the dividend income is not sufficient.\"\n31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644\n(SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s Η.Η.\nMaharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that\nthe connection between the expenditure and the earning of income need not be direct, and\neven an indirect connection could prove the nexus between the expenditure incur…

RASILA S. MEHTA,MUMBAI vs. DCIT, CC-4(1), (ERSTWHILE ACIT, CC-23), MUMBAI

In the result, appeals of the assessee are partly allowed and that\nof the revenue are dismissed

…ere fact that income by way of dividend has\naccrued and that the expenditure incurred is in some manner or other related to the\naccrual of the dividend income is not sufficient.\"\n31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644\n(SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s Η.Η.\nMaharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that\nthe connection between the expenditure and the earning of income need not be direct, and even\nan indirect connection could prove the nexus between the expenditure incur…

RASILA S. MEHTA,MUMBAI vs. ACIT, CC-4(1), MUMBAI

In the result, appeals of the assessee are partly allowed and that\nof the revenue are dismissed

…ere fact that income by way of dividend has\naccrued and that the expenditure incurred is in some manner or other related to the\naccrual of the dividend income is not sufficient.\"\n31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644\n(SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H.\nMaharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that\nthe connection between the expenditure and the earning of income need not be direct, and even\nan indirect connection could prove the nexus between the expenditure incur…

DY COMMISSIONER OF INCOME TAX, CEN.CIRCLE-4(1), MUMBAI vs. SMT. RASILA S. MEHTA, MUMBAI

In the result, appeals of the assessee are partly allowed and that\nof the revenue are dismissed

…ere fact that income by way of dividend has\naccrued and that the expenditure incurred is in some manner or other related to the\naccrual of the dividend income is not sufficient.\"\n31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644\n(SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H.\nMaharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that\nthe connection between the expenditure and the earning of income need not be direct, and even\nan indirect connection could prove the nexus between the expenditure incur…

GROWMORE RESEARCH AND ASSETS MANAGEMENT ,MUMBAI vs. DCIT, CC-4(1) (ERSTWHILE DCIT-31, MUMBAI

In the result, both the appeals are treated as partly allowed

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

…ase of Pratima Hitesh Mehta (supra) that interest expenditure is allowable as deduction. The relevant portion of the decision rendered by the co-ordinate bench is extracted below:- “31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

LANXES INDIA P.LTD,THANE vs. ASST CIT CIR 1, THANE

In the result, both the appeals are treated as partly allowed

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

…ase of Pratima Hitesh Mehta (supra) that interest expenditure is allowable as deduction. The relevant portion of the decision rendered by the co-ordinate bench is extracted below:- “31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

OM SRI MAA SHAKTI NAMAH,MUMBAI vs. ASSTT. COMMISSIONER OF INCOME TAX, CIR-32(2), MUMBAI

…. In other words the claim of your appellant\ntowards interest expenses of Rs. 1,97,13,918/- is allowable\nagainst the interest income taxed under the head \"Income from\nOther Sources\".\n\nThe H'ble Supreme Court in the case of Seth R. Dalmia v. CIT\n[1997] 110 ITR 644 (SC) has categorically stated that \"In\ncomputing the taxable income under the head \"Income from Other\nSources\" the assessee is entitled to deduct u/s 57 from the gross\n\n\n\n\n\n\n\namount, expenses of revenue nature subject to fulfillment of the\nfollowing basic conditions:\na) The expenditure must have been incurred wholly and\nexclusivel…

DEEPIKA A. MEHTA,MUMBI vs. DCIT, CC-4(1), MUMBAI

In the result appeal of Department is dismissed

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआ.अ.सं.379/मुं/2023 (नि.व. 1992-93) Ιτα No.379/Mum/2023 (A.Y.1992-93) Smt. Deepika A Mehta 32, Madhuli, Dr. A.B. Road, Worli, Mumbai – 400 018 Pan: Abnpm8231D अपीलार्थी / Appellant बनाम Vs. The Dy.Commissioner Of Income Tax, Cen.Circle-4(1), Mumbai-400 021 प्रतिवादी/Respondent आ.अ.सं. 1178/मुं/2023 (नि.व. 1992-93)

…he mere fact that income by way of dividend has accrued and that the expenditure incurred is in some manner or other related to the accrual of the dividend income is not sufficient." 31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…

DY COMMISSIONER OF INCOME TAX, CEN-CIRCLE-4(1), MUMBAI vs. SMT. DEEPIKA A. MEHTA, MUMBAI

In the result appeal of Department is dismissed

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआ.अ.सं.379/मुं/2023 (िन.व. 1992-93) Smt. Deepika A Mehta 32, Madhuli, Dr. A.B. Road, Worli, Mumbai – 400 018 ...... अपीलाथ" /Appellant Pan: Abnpm8231D बनाम Vs.

…e mere fact that income by way of dividend has accrued and that the expenditure incurred is in some manner or other related to the accrual of the dividend income is not sufficient." 31. We find that the Hon'ble Supreme Court in Seth R. Dalmia v/s CIT, [1977] 110 ITR 644 (SC) agreed with the view taken by the Hon'ble jurisdictional High Court in CIT v/s H.H. Maharani Vijaykuverba Saheb of Morvi [1975] 100 ITR 67 (Bom), wherein it was held that the connection between the expenditure and the earning of income need not be direct, and even an indirect connection could prove the nexus between the expenditure incurred…