Shobha Developers Ltd. v. DCIT (LTU)

434 ITR 266High Court2021#3923 most cited

What is Shobha Developers Ltd. v. DCIT (LTU) authority for?

Disallowances made under section 14A, if deleted, cannot be added to book profits under section 115JB of the Income Tax Act.

30

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2021 to 2026.

Also referred to as

Shobha Developers Ltd. v. DCIT · section 14A · section 115JB · disallowance · book profits · MAT · income tax · Karnataka High Court · deleted disallowance

Sections most often in play

Section 115JBSection 14ASection 1961Section 143(3)Section 80IBSection 132Section 142(1)Section 143(2)

Issues it is cited on

section 92f(v)section 80ia(5)section 10(2a)section 10(35)bright line testresale price methodsection 144c(10)amp expendituremultiple year datasection 115jasection 14a(1)section 92f

Judgments citing Shobha Developers Ltd. v. DCIT (LTU)

Hansa Vision India Private Limited, Chennai vs. DCIT, Chennai

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

ITA 3443/CHNY/2019[2014-15]Status: DisposedITAT Chennai05 May 2022AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No. 3443/Chny/2019 िनधा"रण वष"/Assessment Year:2014-15 M/S. Hansa Vision India P. Ltd., The Deputy Commissioner Of No. 19, Wheatcroft Road, Vs. Income Tax, Nungambakkam, Chennai 600 034. Corporate Circle 2(2), [Pan:Aabct3770E] Chennai. (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri S. Sridhar, Advocate ""थ" की ओर से/Respondent By : Shri G. Johnson, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 06.04.2022 घोषणा की तारीख /Date Of Pronouncement : 05.05.2022 आदेश /O R D E R Per V. Durga Rao,: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 6, Chennai, Dated 29.11.2019 Relevant To The Assessment Year 2014-15. 2. The First Ground & Ground No. 12 Raised In The Appeal Are General In Nature & Requires No Adjudication.

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri G. Johnson, Addl. CIT
Section 115JSection 14A

…14A of the Act. It was further submitted that no disallowance under section 14A of the Act could be made while computing book profits under section 115JB of the Act in view of the 3 I.T.A. No.3443/Chny/19 decision in the case of Sobha Developers Ltd. v. DCIT 434 ITR 266 (Kar). 2.4 On the other hand, the ld. DR strongly support the order of the ld. CIT(A) and relied upon the decision of the Hon’ble Supreme Court in the case of Maxopp Investments Ltd. v. CIT 402 ITR 406. 2.5 We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, the…

Shriram Credit Company Ltd., Chennai vs. DCIT Corporate Circle 6(1), Chennai

In the result, the appeal filed by the Revenue is dismissed and the appeal filed by the assessee is partly allowed

ITA 1307/CHNY/2018[2014-15]Status: DisposedITAT Chennai13 Apr 2022AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.1199/Chny/2018 िनधा"रण वष"/Assessment Year: 2014-15 The Deputy Commissioner Of Vs. M/S. Shriram Credit Company Income Tax, Corporate Circle 6(1) I/C, Limited, Shriram House, No. 4, Aayakar Bhavan, Wanaparthy Burkit Road, T. Nagar, Block, 7Th Floor, 121, M.G. Road, Chennai 600 042. Chennai 600 034. [Pan:Aagcs4497N] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.1307/Chny/2018 िनधा"रण वष"/Assessment Year: 2014-15 M/S. Shriram Credit Company Vs. The Deputy Commissioner Of Limited, Mookambika Complex, Income Tax, No. 4, Lady Desika Road, Corporate Circle 6(1), Mylapore, Chennai 600 004. Chennai 600 034. (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Shri P. Sajit Kumar, Jcit Assessee By : Shri R.Sivaraman, Advocate सुनवाई की तारीख/ Date Of Hearing : 30.03.2022 घोषणा की तारीख /Date Of Pronouncement : 13.04.2022 आदेश /O R D E R Per V. Durga Rao: Both The Appeals Filed By The Revenue As Well As Assessee Are Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 15, Chennai Dated 26.12.2017 Relevant To The Assessment

For Appellant: Shri R.Sivaraman, AdvocateFor Respondent: Shri P. Sajit Kumar, JCIT
Section 14A

…the Tribunal. 6.1 We have considered the rival contentions. So far as disallowance under section 14A of the Act while computing the book profit under section 115JB of the Act is concerned, in the recent judgement in the case of Sobha Developers Ltd. v. DCIT 434 ITR 266 (Kar), wherein, 14 I.T.A. Nos.1199 & 1307Chny/18 the Hon’ble Karnataka High Court has held that the disallowance made under section 14A of the Act could not be added to book profits of the assessee under section 115JB of the Act. The substantial question of law raised before the Hon’ble Karnataka High Court is reproduced as under: “Whether the…

DCIT Corporate Circle 6(1) (I/C), Chennai vs. Shriram Credit Company Limited, Chennai

In the result, the appeal filed by the Revenue is dismissed and the appeal filed by the assessee is partly allowed

ITA 1199/CHNY/2018[2014-15]Status: DisposedITAT Chennai13 Apr 2022AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.1199/Chny/2018 िनधा"रण वष"/Assessment Year: 2014-15 The Deputy Commissioner Of Vs. M/S. Shriram Credit Company Income Tax, Corporate Circle 6(1) I/C, Limited, Shriram House, No. 4, Aayakar Bhavan, Wanaparthy Burkit Road, T. Nagar, Block, 7Th Floor, 121, M.G. Road, Chennai 600 042. Chennai 600 034. [Pan:Aagcs4497N] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.1307/Chny/2018 िनधा"रण वष"/Assessment Year: 2014-15 M/S. Shriram Credit Company Vs. The Deputy Commissioner Of Limited, Mookambika Complex, Income Tax, No. 4, Lady Desika Road, Corporate Circle 6(1), Mylapore, Chennai 600 004. Chennai 600 034. (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Shri P. Sajit Kumar, Jcit Assessee By : Shri R.Sivaraman, Advocate सुनवाई की तारीख/ Date Of Hearing : 30.03.2022 घोषणा की तारीख /Date Of Pronouncement : 13.04.2022 आदेश /O R D E R Per V. Durga Rao: Both The Appeals Filed By The Revenue As Well As Assessee Are Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 15, Chennai Dated 26.12.2017 Relevant To The Assessment

For Appellant: Shri R.Sivaraman, AdvocateFor Respondent: Shri P. Sajit Kumar, JCIT
Section 14A

…the Tribunal. 6.1 We have considered the rival contentions. So far as disallowance under section 14A of the Act while computing the book profit under section 115JB of the Act is concerned, in the recent judgement in the case of Sobha Developers Ltd. v. DCIT 434 ITR 266 (Kar), wherein, 14 I.T.A. Nos.1199 & 1307Chny/18 the Hon’ble Karnataka High Court has held that the disallowance made under section 14A of the Act could not be added to book profits of the assessee under section 115JB of the Act. The substantial question of law raised before the Hon’ble Karnataka High Court is reproduced as under: “Whether the…

Shriram Capital Ltd, Chennai vs. DCIT, Corp Cir-6(1), Chennai

In the result, both the appeals filed by the assessee are allowed and the appeals filed by the Revenue are dismissed

ITA 3255/CHNY/2018[2014-15]Status: DisposedITAT Chennai18 Feb 2022AY 2014-15

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. Nos.3168 & 3255/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13 & 2014-15 M/S. Shriram Capital Limited, The Deputy Commissioner Of Vs. Shriram House, 1St Floor, No. 4, Income Tax, Burkit Road, T. Nagar, Corporate Circle 6(1), Chennai 600 017. Chennai 600 034. [Pan:Aabcs2726B] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. Nos.3216 & 3217/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13 & 2014-15 The Deputy Commissioner Of Vs. M/S. Shriram Capital Limited, Shriram House, 1St Floor, No. 4, Income Tax, Corporate Circle 6(1), Burkit Road, T. Nagar, Chennai 600 034. Chennai 600 017. (अपीलाथ"/Appellant) (""थ"/Respondent) Assessee By : Shri R. Sivaraman, Advocate Department By Shri Darzakhum Songate, Cit : सुनवाई की तारीख/ Date Of Hearing : 03.01.2022 घोषणा की तारीख /Date Of Pronouncement : 18.02.2022 आदेश /O R D E R Per V. Durga Rao: Both The Cross Appeals Filed By The Assessee As Well As Revenue Are Directed Against Different Orders Of The Ld. Commissioner Of Income Tax (Appeals) 15, Chennai Dated 29.08.2018 Relevant To The 2

For Appellant: Shri R. Sivaraman, Advocate
Section 115JSection 143(3)Section 14A

…was not accepted and the Department preferred further appeal before the Hon’ble Madras High Court, which is still pending. 7.2 On the other hand, by filing the recent judgement of the Hon’ble Karnataka High Court in the case of Sobha Developers Ltd. v. DCIT 434 ITR 266 (Kar), wherein, it was held that the disallowance made under section 14A of the Act could not be added to book profits of the assessee under section 115JB of the Act, the ld. Counsel for the assessee has prayed for following the same for the assessment years under appeal. 7.3 We have heard the rival contentions and perused the judgement in the c…

DCIT, Corp Cir-6(1), Chennai vs. Shriram Capital Ltd, Chennai

In the result, both the appeals filed by the assessee are allowed and the appeals filed by the Revenue are dismissed

ITA 3217/CHNY/2018[2014-15]Status: DisposedITAT Chennai18 Feb 2022AY 2014-15

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. Nos.3168 & 3255/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13 & 2014-15 M/S. Shriram Capital Limited, The Deputy Commissioner Of Vs. Shriram House, 1St Floor, No. 4, Income Tax, Burkit Road, T. Nagar, Corporate Circle 6(1), Chennai 600 017. Chennai 600 034. [Pan:Aabcs2726B] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. Nos.3216 & 3217/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13 & 2014-15 The Deputy Commissioner Of Vs. M/S. Shriram Capital Limited, Shriram House, 1St Floor, No. 4, Income Tax, Corporate Circle 6(1), Burkit Road, T. Nagar, Chennai 600 034. Chennai 600 017. (अपीलाथ"/Appellant) (""थ"/Respondent) Assessee By : Shri R. Sivaraman, Advocate Department By Shri Darzakhum Songate, Cit : सुनवाई की तारीख/ Date Of Hearing : 03.01.2022 घोषणा की तारीख /Date Of Pronouncement : 18.02.2022 आदेश /O R D E R Per V. Durga Rao: Both The Cross Appeals Filed By The Assessee As Well As Revenue Are Directed Against Different Orders Of The Ld. Commissioner Of Income Tax (Appeals) 15, Chennai Dated 29.08.2018 Relevant To The 2

For Appellant: Shri R. Sivaraman, Advocate
Section 115JSection 143(3)Section 14A

…was not accepted and the Department preferred further appeal before the Hon’ble Madras High Court, which is still pending. 7.2 On the other hand, by filing the recent judgement of the Hon’ble Karnataka High Court in the case of Sobha Developers Ltd. v. DCIT 434 ITR 266 (Kar), wherein, it was held that the disallowance made under section 14A of the Act could not be added to book profits of the assessee under section 115JB of the Act, the ld. Counsel for the assessee has prayed for following the same for the assessment years under appeal. 7.3 We have heard the rival contentions and perused the judgement in the c…

DCIT, Corp Cir-6(1), Chennai vs. Shriram Capital Ltd, Chennai

In the result, both the appeals filed by the assessee are allowed and the appeals filed by the Revenue are dismissed

ITA 3216/CHNY/2018[2012-13]Status: DisposedITAT Chennai18 Feb 2022AY 2012-13

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. Nos.3168 & 3255/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13 & 2014-15 M/S. Shriram Capital Limited, The Deputy Commissioner Of Vs. Shriram House, 1St Floor, No. 4, Income Tax, Burkit Road, T. Nagar, Corporate Circle 6(1), Chennai 600 017. Chennai 600 034. [Pan:Aabcs2726B] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. Nos.3216 & 3217/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13 & 2014-15 The Deputy Commissioner Of Vs. M/S. Shriram Capital Limited, Shriram House, 1St Floor, No. 4, Income Tax, Corporate Circle 6(1), Burkit Road, T. Nagar, Chennai 600 034. Chennai 600 017. (अपीलाथ"/Appellant) (""थ"/Respondent) Assessee By : Shri R. Sivaraman, Advocate Department By Shri Darzakhum Songate, Cit : सुनवाई की तारीख/ Date Of Hearing : 03.01.2022 घोषणा की तारीख /Date Of Pronouncement : 18.02.2022 आदेश /O R D E R Per V. Durga Rao: Both The Cross Appeals Filed By The Assessee As Well As Revenue Are Directed Against Different Orders Of The Ld. Commissioner Of Income Tax (Appeals) 15, Chennai Dated 29.08.2018 Relevant To The 2

For Appellant: Shri R. Sivaraman, Advocate
Section 115JSection 143(3)Section 14A

…was not accepted and the Department preferred further appeal before the Hon’ble Madras High Court, which is still pending. 7.2 On the other hand, by filing the recent judgement of the Hon’ble Karnataka High Court in the case of Sobha Developers Ltd. v. DCIT 434 ITR 266 (Kar), wherein, it was held that the disallowance made under section 14A of the Act could not be added to book profits of the assessee under section 115JB of the Act, the ld. Counsel for the assessee has prayed for following the same for the assessment years under appeal. 7.3 We have heard the rival contentions and perused the judgement in the c…

Shriram Capital Ltd, Chennai vs. DCIT, Corp Cir-6(1), Chennai

In the result, both the appeals filed by the assessee are allowed and the appeals filed by the Revenue are dismissed

ITA 3168/CHNY/2018[2012-13]Status: DisposedITAT Chennai18 Feb 2022AY 2012-13

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. Nos.3168 & 3255/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13 & 2014-15 M/S. Shriram Capital Limited, The Deputy Commissioner Of Vs. Shriram House, 1St Floor, No. 4, Income Tax, Burkit Road, T. Nagar, Corporate Circle 6(1), Chennai 600 017. Chennai 600 034. [Pan:Aabcs2726B] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. Nos.3216 & 3217/Chny/2018 िनधा"रण वष"/Assessment Years: 2012-13 & 2014-15 The Deputy Commissioner Of Vs. M/S. Shriram Capital Limited, Shriram House, 1St Floor, No. 4, Income Tax, Corporate Circle 6(1), Burkit Road, T. Nagar, Chennai 600 034. Chennai 600 017. (अपीलाथ"/Appellant) (""थ"/Respondent) Assessee By : Shri R. Sivaraman, Advocate Department By Shri Darzakhum Songate, Cit : सुनवाई की तारीख/ Date Of Hearing : 03.01.2022 घोषणा की तारीख /Date Of Pronouncement : 18.02.2022 आदेश /O R D E R Per V. Durga Rao: Both The Cross Appeals Filed By The Assessee As Well As Revenue Are Directed Against Different Orders Of The Ld. Commissioner Of Income Tax (Appeals) 15, Chennai Dated 29.08.2018 Relevant To The 2

For Appellant: Shri R. Sivaraman, Advocate
Section 115JSection 143(3)Section 14A

…was not accepted and the Department preferred further appeal before the Hon’ble Madras High Court, which is still pending. 7.2 On the other hand, by filing the recent judgement of the Hon’ble Karnataka High Court in the case of Sobha Developers Ltd. v. DCIT 434 ITR 266 (Kar), wherein, it was held that the disallowance made under section 14A of the Act could not be added to book profits of the assessee under section 115JB of the Act, the ld. Counsel for the assessee has prayed for following the same for the assessment years under appeal. 7.3 We have heard the rival contentions and perused the judgement in the c…

ACIT, Ltu, New Delhi vs. The Oriental Insurance Co. Ltd., New Delhi

In the result, the order passed by the tribunal dated 09

ITA 5723/DEL/2018[2014-15]Status: DisposedITAT Delhi07 Dec 2021AY 2014-15

Bench: Smt. Diva Singh & Shri N.K. Billaiya

Section 14ASection 44

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’: NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER I.T.A No. 5723/Del/2018 (ASSESSMENT YEAR: 2014-15) ACIT The Oriental Insurance NBCC Plaza, Pushap Vihar, Co. Ltd. Sector-5, Vs. A-25/27, Asaf Ali Road, New Delhi New Delhi AAACT0627R (Appellant) (Respondent) Appellant By Sh. Tarandeep Singh Adv & Sh. Pulkit Verma, Adv Respondent by Shri H. K. Chaudhary, CIT (DR) Date of Hearing 01.12.2021 Date of Pronouncement 07.12.2021 Hearing conducted via Webex ORDER PER DIVA SINGH, J.M. The present appeal has been filed…

Cear India Finance Pvt. Ltd., New Delhi vs. ITO, Ward -5(4), New Delhi

In the result the appeal of the assessee is allowed

ITA 6254/DEL/2017[2012-13]Status: DisposedITAT Delhi25 Oct 2021AY 2012-13

Bench: Shri G.S. Pannu, Hon’Ble & Shri Amit Shuklaasstt. Year: 2012-13

For Appellant: Shri Satyen Sethi, AdvocateFor Respondent: Shri Harpal Singh, Sr. DR
Section 115JSection 14ASection 154Section 234B

…ce u/s 14A can be added as book profit or not stands covered by the decision of Hon’ble Special Bench in the case of ACIT vs. Vireet Investment (P) Ltd. and also the decision of Hon’ble Karnataka High Court in the case of Sobha Developers Ltd. vs. DCIT (2021) 434 ITR 266, wherein it has been held that disallowance the computation of book profit u/s 115JB has to be made without resorting to disallowance u/s 14A. Since this is the only issue involved in the present appeal, therefore, respectfully following the aforesaid judgement of special bench of Hon’ble Karnataka High Court we hold that no disallowance u/s 14A…

DCIT, Circle- 1, Ltu, New Delhi vs. The Oriental Insurance Co. Ltd., New Delhi

In the result, the order passed by the tribunal dated 09

ITA 5834/DEL/2018[2015-16]Status: DisposedITAT Delhi24 Sept 2021AY 2015-16

Bench: Shri R.K. Panda & Shri Vijay Pal Raoassessment Year: 2015-16 Dcit, Vs The Oriental Insurance Co. Ltd., Circle-1, Ltu, A-25/27, Asaf Ali Road, New Delhi. New Delhi. Pan: Aaact0627R (Appellant) (Respondent) Assessee By : Shri Tarandeep Singh, Ca & Shri Pulkit Verma, Advocate Revenue By : Shri H.K. Chaudhary, Cit, Dr Date Of Hearing : 20.09.2021 Date Of Pronouncement : 24.09.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Revenue Is Directed Against The Order Dated 29Th June, 2018 Of The Cit(A)-22, New Delhi Relating To Assessment Year 2015-16. 2. Ground Of Appeal No.1 Raised By The Revenue Reads As Under:- “1. On The Facts & The Circumstances Of The Case & In Law, Ld. Cit (A) Has Erred In Deleting The Addition Of Rs.25,85,81,755/- Made By The Ao U/S 14A Of The I.T. Act.” 3. Facts Of The Case, In Brief, Are That The Assessee Is A Public Sector Undertaking Of Government Of India & Is In The Business Of Non-Life Insurance. It Filed Its Return Of Income Declaring Total Income Under Normal Provisions Of The Income-Tax Act At A Loss Of Rs.186,97,30,289/- & Book Profit U/S 115Jb I.E., Mat Scheme Of Rs.565,63,58,876/-. During The Course Of Assessment Proceedings, The Ao Noted That The Assessee Has Claimed The Following Income As Exempt:- S. No. Particulars Amount ( □) 1. Interest On Tax Free Public Sector Bonds Exempt Under 4,59,58,525/- Section 10 (15) (Iv) (H) Of The Act 2,04,22,38,227/- 2. Dividend Exempt U/S 10(34) Of The Income Tax Act, 1961 Total 2,08,81,96,752/-

For Appellant: Shri Tarandeep Singh, CA &For Respondent: Shri H.K. Chaudhary, CIT, DR
Section 10Section 10(34)Section 115JSection 14ASection 44

…in 32 SOT 101 (Del), the decision of Kolkata Bench of the Tribunal in the case of Integrated Mining Ltd. vs. DCIT, reported in 67 taxmann.com 260 and the decision of the Hon’ble Karnataka High Court in the case of Shobha Developers Ltd. vs. DCIT, reported in 434 ITR 266 (Kar.), he submitted that the issue stands squarely covered in favour of the assessee. 20. We have considered the rival arguments made by both the sides and perused the orders of the authorities below. We find, the AO, in the instant case, made addition of Rs.25,85,81,755/- which was disallowed by him u/s 14A of the Act for computation of the bo…