Siva Industries & Holdings Ltd. v. ACIT

54 SOT 49Income Tax Appellate Tribunal2012#2060 most cited

What is Siva Industries & Holdings Ltd. v. ACIT authority for?

Disallowance under section 14A read with Rule 8D is applicable to expenses incurred for earning exempt dividend income, even if the assessee has not admitted such expenses, empowering the Assessing Officer to determine the amount.

56

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2023.

Also referred to as

Siva Industries & Holdings Ltd. v. ACIT · 54 SOT 49 · Section 14A · Rule 8D · disallowance of expenditure · exempt dividend income · expenses for exempt income · Assessing Officer determination · ITAT Chennai · computation of disallowance

Also reported as

59 DTR 182149 TTJ 23369 Taxmann.com 400

Judgments citing Siva Industries & Holdings Ltd. v. ACIT

DCIT, Central Circle - 4(4), Kolkata vs. M/S. Electrosteel Castings Limited., Kolkata

ITA 192/KOL/2018[2013-14]Status: DisposedITAT Kolkata28 Feb 2019AY 2013-14

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…benchmark:  Delhi High Court in case of CIT Vs. Cotton Naturals (I) Pvt. Ltd. [276 CTR 475]  The Chennai Bench of Tribunal in case of Siva Industries & Holdings Ltd. Vs. ACIT [145 TTJ(Chennai) 497]  Mumbai Tribunal in case of Tata Autocomp System Vs. ACIT [149 TTJ 233] [Affirmed by the Hon'ble Bombay High Court] In light of the above, the Ld. AO was clearly not justified in arriving at arm's Length interest rate by taking the cost of funds to the assessee, which is a domestic rate, as a base rate. 4.4.1 Next, it is contended that computation of spread of 750bp by the AO is arbitrary and has no basis whatsoeve…

DCIT, Central Circle - 4(4), Kolkata vs. M/S. Electrosteel Castings Limited., Kolkata

ITA 191/KOL/2018[2012-13]Status: DisposedITAT Kolkata28 Feb 2019AY 2012-13

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…benchmark:  Delhi High Court in case of CIT Vs. Cotton Naturals (I) Pvt. Ltd. [276 CTR 475]  The Chennai Bench of Tribunal in case of Siva Industries & Holdings Ltd. Vs. ACIT [145 TTJ(Chennai) 497]  Mumbai Tribunal in case of Tata Autocomp System Vs. ACIT [149 TTJ 233] [Affirmed by the Hon'ble Bombay High Court] In light of the above, the Ld. AO was clearly not justified in arriving at arm's Length interest rate by taking the cost of funds to the assessee, which is a domestic rate, as a base rate. 4.4.1 Next, it is contended that computation of spread of 750bp by the AO is arbitrary and has no basis whatsoeve…

M/S. Electrosteel Casting Limited., Kolkata vs. DCIT, Cental Circle - 4(4), Kolkata

ITA 139/KOL/2018[2013-14]Status: DisposedITAT Kolkata28 Feb 2019AY 2013-14

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…benchmark:  Delhi High Court in case of CIT Vs. Cotton Naturals (I) Pvt. Ltd. [276 CTR 475]  The Chennai Bench of Tribunal in case of Siva Industries & Holdings Ltd. Vs. ACIT [145 TTJ(Chennai) 497]  Mumbai Tribunal in case of Tata Autocomp System Vs. ACIT [149 TTJ 233] [Affirmed by the Hon'ble Bombay High Court] In light of the above, the Ld. AO was clearly not justified in arriving at arm's Length interest rate by taking the cost of funds to the assessee, which is a domestic rate, as a base rate. 4.4.1 Next, it is contended that computation of spread of 750bp by the AO is arbitrary and has no basis whatsoeve…

M/S. Electrosteel Casting Limited., Kolkata vs. DCIT, Cental Circle - 4(4), Kolkata

ITA 138/KOL/2018[2012-13]Status: DisposedITAT Kolkata28 Feb 2019AY 2012-13

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…benchmark:  Delhi High Court in case of CIT Vs. Cotton Naturals (I) Pvt. Ltd. [276 CTR 475]  The Chennai Bench of Tribunal in case of Siva Industries & Holdings Ltd. Vs. ACIT [145 TTJ(Chennai) 497]  Mumbai Tribunal in case of Tata Autocomp System Vs. ACIT [149 TTJ 233] [Affirmed by the Hon'ble Bombay High Court] In light of the above, the Ld. AO was clearly not justified in arriving at arm's Length interest rate by taking the cost of funds to the assessee, which is a domestic rate, as a base rate. 4.4.1 Next, it is contended that computation of spread of 750bp by the AO is arbitrary and has no basis whatsoeve…

Dy.Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad vs. M/S. Adani Port & Special Economic Zone Ltd., Ahmedabad

In the result, the appeal of the Assessing Officer for the assessment year 2010-11 is dismissed

ITA 3482/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad12 Feb 2019AY 2010-11
Section 143(3)Section 80Section 80I

…LIBOR and in the range of 140-170 basis points above LIBOR. In contrast to this comparable case, the interest charged in the present case is 247 points above the LIBOR rate. In the case of Siva Industries & Holdings Ltd. v. Asstt. CIT [2012] 26 taxmann.com 96/54 SOT 49 (Chennai), dealing with the assessment year 2006-07 and while referring to LIBOR at 4.42, interest rate on advances to subsidiary at 6%, which was thus 158 points above the LIBOR rate, was held to be an arms length price. In view of these discussions, it cannot be said that the advance to subsidiary, at 247 basis points above the LIBOR, is not at a…

Dy. Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad vs. M/S. Adani Port & Special Economic Zone Ltd., Ahmedabad

In the result, the appeal of the Assessing Officer for the assessment year 2010-11 is dismissed

ITA 3481/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad12 Feb 2019AY 2009-10
Section 143(3)Section 80Section 80I

…LIBOR and in the range of 140-170 basis points above LIBOR. In contrast to this comparable case, the interest charged in the present case is 247 points above the LIBOR rate. In the case of Siva Industries & Holdings Ltd. v. Asstt. CIT [2012] 26 taxmann.com 96/54 SOT 49 (Chennai), dealing with the assessment year 2006-07 and while referring to LIBOR at 4.42, interest rate on advances to subsidiary at 6%, which was thus 158 points above the LIBOR rate, was held to be an arms length price. In view of these discussions, it cannot be said that the advance to subsidiary, at 247 basis points above the LIBOR, is not at a…

Moserbaer India Ltd., New Delhi vs. DCIT, New Delhi

Appeal is dismissed

ITA 1617/DEL/2015[2010-11]Status: DisposedITAT Delhi03 Oct 2018AY 2010-11

Bench: Shri N. K. Saini & Ms Suchitra Kamblemoserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Moserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Astt. Commissioner Of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-Iii New Delhi-110020 (Appellant) Aaam0322J (Respondent) Moserbaer India Ltd. Vs Dcit Tax, 43-A, Okhla Indl Area, Circle 17(1) Phase-Iii New Delhi New Delhi-110020 (Respondent) Aaam0322J (Appellant)

Section 10BSection 143Section 144CSection 14A

…DELHI BENCH: ‘I-1’ NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER Moserbaer India Ltd. Vs Assistant Commissioner of Tax, 43-A, Okhla Indl Area, Income Tax Phase-III Circle 5(1) New Delhi-110020 New Delhi AAAM0322J (RESPONDENT) (APPELLANT) Moserbaer India Ltd. Vs Assistant Commissioner of Tax, 43-A, Okhla Indl Area, Income Tax Phase-III Circle 5(1) New Delhi-110020 New Delhi AAAM0322J (RESPONDENT) (APPELLANT) Astt. Commissioner of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-III New Delhi-110020 (APPELLANT) AAAM0322J (RE…

M/S. Moserbaer India Ltd., New Delhi vs. ACIT, New Delhi

Appeal is dismissed

ITA 2395/DEL/2014[2009-10]Status: DisposedITAT Delhi03 Oct 2018AY 2009-10

Bench: Shri N. K. Saini & Ms Suchitra Kamblemoserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Moserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Astt. Commissioner Of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-Iii New Delhi-110020 (Appellant) Aaam0322J (Respondent) Moserbaer India Ltd. Vs Dcit Tax, 43-A, Okhla Indl Area, Circle 17(1) Phase-Iii New Delhi New Delhi-110020 (Respondent) Aaam0322J (Appellant)

Section 10BSection 143Section 144CSection 14A

…DELHI BENCH: ‘I-1’ NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER Moserbaer India Ltd. Vs Assistant Commissioner of Tax, 43-A, Okhla Indl Area, Income Tax Phase-III Circle 5(1) New Delhi-110020 New Delhi AAAM0322J (RESPONDENT) (APPELLANT) Moserbaer India Ltd. Vs Assistant Commissioner of Tax, 43-A, Okhla Indl Area, Income Tax Phase-III Circle 5(1) New Delhi-110020 New Delhi AAAM0322J (RESPONDENT) (APPELLANT) Astt. Commissioner of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-III New Delhi-110020 (APPELLANT) AAAM0322J (RE…

ACIT, New Delhi vs. M/S. Moser Baer India Limited, New Delhi

Appeal is dismissed

ITA 1200/DEL/2014[2009-10]Status: DisposedITAT Delhi03 Oct 2018AY 2009-10

Bench: Shri N. K. Saini & Ms Suchitra Kamblemoserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Moserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Astt. Commissioner Of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-Iii New Delhi-110020 (Appellant) Aaam0322J (Respondent) Moserbaer India Ltd. Vs Dcit Tax, 43-A, Okhla Indl Area, Circle 17(1) Phase-Iii New Delhi New Delhi-110020 (Respondent) Aaam0322J (Appellant)

Section 10BSection 143Section 144CSection 14A

…DELHI BENCH: ‘I-1’ NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER Moserbaer India Ltd. Vs Assistant Commissioner of Tax, 43-A, Okhla Indl Area, Income Tax Phase-III Circle 5(1) New Delhi-110020 New Delhi AAAM0322J (RESPONDENT) (APPELLANT) Moserbaer India Ltd. Vs Assistant Commissioner of Tax, 43-A, Okhla Indl Area, Income Tax Phase-III Circle 5(1) New Delhi-110020 New Delhi AAAM0322J (RESPONDENT) (APPELLANT) Astt. Commissioner of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-III New Delhi-110020 (APPELLANT) AAAM0322J (RE…

Moserbaer India Ltd., New Delhi vs. ACIT, New Delhi

Appeal is dismissed

ITA 6042/DEL/2012[2008-09]Status: DisposedITAT Delhi03 Oct 2018AY 2008-09

Bench: Shri N. K. Saini & Ms Suchitra Kamblemoserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Moserbaer India Ltd. Vs Assistant Commissioner Of Tax, 43-A, Okhla Indl Area, Income Tax Phase-Iii Circle 5(1) New Delhi-110020 New Delhi Aaam0322J (Respondent) (Appellant) Astt. Commissioner Of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-Iii New Delhi-110020 (Appellant) Aaam0322J (Respondent) Moserbaer India Ltd. Vs Dcit Tax, 43-A, Okhla Indl Area, Circle 17(1) Phase-Iii New Delhi New Delhi-110020 (Respondent) Aaam0322J (Appellant)

Section 10BSection 143Section 144CSection 14A

…DELHI BENCH: ‘I-1’ NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER Moserbaer India Ltd. Vs Assistant Commissioner of Tax, 43-A, Okhla Indl Area, Income Tax Phase-III Circle 5(1) New Delhi-110020 New Delhi AAAM0322J (RESPONDENT) (APPELLANT) Moserbaer India Ltd. Vs Assistant Commissioner of Tax, 43-A, Okhla Indl Area, Income Tax Phase-III Circle 5(1) New Delhi-110020 New Delhi AAAM0322J (RESPONDENT) (APPELLANT) Astt. Commissioner of Income Tax Vs Moserbaer India Ltd. Circle 5(1) Tax, 43-A, Okhla Indl Area, New Delhi Phase-III New Delhi-110020 (APPELLANT) AAAM0322J (RE…

Subhsh Ghai, Mumbai vs. Asst CIT 11(1), Mumbai

In the result this ground of appeal is allowed for

ITA 3766/MUM/2016[2010-11]Status: DisposedITAT Mumbai26 Sept 2018AY 2010-11

Bench: Shri G.S. Pannu & Shri Pawan Singhm/S Subhash Ghai Acit- 11(1) 6, Bashiron, T.P.S, 29Th Road, Aayakar Bhavan, M.K. Road, Bandra (West), Vs. Mumbai-400020. Mumbai-400050. Pan: Aafpg8264K Appellant Respondent Appellant By : Shri Rahul K. Hakani (Ar) Respondent By : Ms. Pooja Swaroop (Sr. Ar)

For Appellant: Shri Rahul K. Hakani (AR)For Respondent: Ms. Pooja Swaroop (Sr. AR)
Section 143(3)Section 14ASection 253Section 254(1)

…amounts/claim of assessee. Our view file supported from decision in CIT versus Hero Cycle Ltd 323 ITR 158(P&H), Reliance Utility and Power Ltd 313 ITR 340(Bombay), DCIT versus Jindal Photo Ltd( Delhi Trib) and Shiva Industries & Holding Ltd versus ACIT(2011) 59 DTR 182. The Hon’ble jurisdictional High Court in Reliance Utility and Power Ltd categorically held that if interest free funds are available with the assessee, which are sufficient to make the investment and the same time assessee raised a loan, it can be presumed that investment was made from the available interest free funds. In the present case, the d…

M. K. Shah Exports Ltd., Kolkata vs. DCIT, Cir-4, Kolkata

In the result, appeal filed by the Revenue in ITA No

ITA 507/KOL/2016[2010-2011]Status: DisposedITAT Kolkata17 Aug 2018AY 2010-2011

Bench: Shri S. S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.506 & 507/Kol/2017 ("नधा"रणवष" / Assessment Years: 2009-10& 2010-11) M/S. M. K. Shah Exports Ltd. Vs. D.C.I.T, Circle-4, Kolkata

For Appellant: Shri S. Jhajharia, ARFor Respondent: ShriSanjay Paul & Saurabh Kumar, Addl. CIT (Sr.DR)
Section 143(3)Section 14A

…e rate of term loan facility provided by Standard Chartered Bank in India for the basis of working out arm's length rate on the loan . The ld CIT(A) also relied on the judgment of the Hon`ble Tribunal of Chennai in the case of Siva Industries and Holdings Ltd 59 DTR 182, wherein it was held that once the transaction between the assessee and the AEs is in foreign currency, the transaction would have to be looked upon by applying commercial principle in regard to international transaction. If this is so, then the domestic prime lending rate would have no applicability and the international rate fixed being L1BOR wo…

M. K. Shah Exports Ltd., Kolkata vs. DCIT, Cir-4, Kolkata

In the result, appeal filed by the Revenue in ITA No

ITA 506/KOL/2016[2009-2010]Status: DisposedITAT Kolkata17 Aug 2018AY 2009-2010

Bench: Shri S. S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.506 & 507/Kol/2017 ("नधा"रणवष" / Assessment Years: 2009-10& 2010-11) M/S. M. K. Shah Exports Ltd. Vs. D.C.I.T, Circle-4, Kolkata

For Appellant: Shri S. Jhajharia, ARFor Respondent: ShriSanjay Paul & Saurabh Kumar, Addl. CIT (Sr.DR)
Section 143(3)Section 14A

…e rate of term loan facility provided by Standard Chartered Bank in India for the basis of working out arm's length rate on the loan . The ld CIT(A) also relied on the judgment of the Hon`ble Tribunal of Chennai in the case of Siva Industries and Holdings Ltd 59 DTR 182, wherein it was held that once the transaction between the assessee and the AEs is in foreign currency, the transaction would have to be looked upon by applying commercial principle in regard to international transaction. If this is so, then the domestic prime lending rate would have no applicability and the international rate fixed being L1BOR wo…

JCIT, (OSD), Cir-4(1), Kolkata vs. M/S M. K. Shah Exports Ltd., Kolkata

In the result, appeal filed by the Revenue in ITA No

ITA 1275/KOL/2016[2010-2011]Status: DisposedITAT Kolkata17 Aug 2018AY 2010-2011

Bench: Shri S. S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.506 & 507/Kol/2017 ("नधा"रणवष" / Assessment Years: 2009-10& 2010-11) M/S. M. K. Shah Exports Ltd. Vs. D.C.I.T, Circle-4, Kolkata

For Appellant: Shri S. Jhajharia, ARFor Respondent: ShriSanjay Paul & Saurabh Kumar, Addl. CIT (Sr.DR)
Section 143(3)Section 14A

…e rate of term loan facility provided by Standard Chartered Bank in India for the basis of working out arm's length rate on the loan . The ld CIT(A) also relied on the judgment of the Hon`ble Tribunal of Chennai in the case of Siva Industries and Holdings Ltd 59 DTR 182, wherein it was held that once the transaction between the assessee and the AEs is in foreign currency, the transaction would have to be looked upon by applying commercial principle in regard to international transaction. If this is so, then the domestic prime lending rate would have no applicability and the international rate fixed being L1BOR wo…

JCIT, (OSD), Cir-4(1), Kolkata vs. M/S M. K. Shah Exports Ltd., Kolkata

In the result, appeal filed by the Revenue in ITA No

ITA 1274/KOL/2016[2009-2010]Status: DisposedITAT Kolkata17 Aug 2018AY 2009-2010

Bench: Shri S. S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.506 & 507/Kol/2017 ("नधा"रणवष" / Assessment Years: 2009-10& 2010-11) M/S. M. K. Shah Exports Ltd. Vs. D.C.I.T, Circle-4, Kolkata

For Appellant: Shri S. Jhajharia, ARFor Respondent: ShriSanjay Paul & Saurabh Kumar, Addl. CIT (Sr.DR)
Section 143(3)Section 14A

…e rate of term loan facility provided by Standard Chartered Bank in India for the basis of working out arm's length rate on the loan . The ld CIT(A) also relied on the judgment of the Hon`ble Tribunal of Chennai in the case of Siva Industries and Holdings Ltd 59 DTR 182, wherein it was held that once the transaction between the assessee and the AEs is in foreign currency, the transaction would have to be looked upon by applying commercial principle in regard to international transaction. If this is so, then the domestic prime lending rate would have no applicability and the international rate fixed being L1BOR wo…

M/S. Ufo Moviez India Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal filed by the assessee is allowed

ITA 6780/DEL/2015[2011-12]Status: DisposedITAT Delhi31 Jul 2018AY 2011-12

Bench: Shri N.K. Billaiya & Shri Suchitra Kamble[A.Y 2011-12] Ufo Moviez India Ltd Vs. The Dy. C.I.T 1-B, First Floor, Sagar Apartments Circle 27(1) 6, Tilak Marg, New Delhi New Delhi Pan : Aabcv 8900 E [Appellant] [Respondent] Date Of Hearing : 31.07.2018 Date Of Pronouncement : 31.07.2018

For Appellant: Shri Piyush Chawla, AdvFor Respondent: Shri H.K. Choudhary, CIT- DR
Section 14A

…150 basis points above LIBOR and in the range of 140-170 basis points above LIBOR. In contrast to this comparable case, the interest charged in the present case is 247 points above the LIBOR rate. In the case of Siva Industries & Holdings Ltd Vs ACIT [(2012) 145 TTJ 497 (Chennai)], dealing with the assessment year 2006-07 and while referring to LIBOR at 4.42, interest rate on advances to subsidiary at 6%, which was thus 158 points above the LIBOR rate, was held to be an arm's length price. In view of these discussions, it cannot be said that the advance to subsidiary, at 247 basis points above the LIBOR, is not…

Bs Limited, Hyderabad vs. Asst.Comissioner of Income Tax, Circle-2(3), Hyderabad

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

ITA 2186/HYD/2017[2013-14]Status: DisposedITAT Hyderabad27 Apr 2018AY 2013-14

Bench: Shri D. Manmohan & Shri S. Rifaur Rahmanassessment Year: 2013-14

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Shri Deepak P. Ripote
Section 132Section 133(6)Section 142(1)Section 143(2)Section 143(3)Section 153ASection 92B

…lied on the following cases: 1. Bharati Airtel Ltd. Vs. ACIT, ITA No. 5816/Del/2012 2. Aban Offshore Ltd. vs. DCIT, ITA No. 585/Mds/2015 3. Videocon Industries Ltd. Vs. ACIT, ITA No. 6145/Mum/2012/ 55 Taxmann.com 263 4. Manugraph India Ltd., Vs. DCIT, [2016] 69 Taxmann.com 400 (Mum. Trib) 5. Rusabh Diamonds Vs. ACIT, 68 Taxmann.com 141 ( Mum. Trib) 6. Asian Paints Ltd. Vs. ACIT, ITA No. 7801/Mum/2010 7. Lanco Infratech Ltd. Vs. DCIT, ITA No. 450/hyd/2016 8. Aster Pvt. Ltd., Vs. DCIT, ITA No. 220/Hyd/2015. 13. Ld. DR submitted that corporate guarantee is international transaction following the amendment introduce…

DCIT Cir 3(3)(2), Mumbai vs. Tulip Hotels P.Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 5151/MUM/2015[2011-12]Status: DisposedITAT Mumbai14 Mar 2018AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm Dcit Cir 3(3)(2) Vs. M/S. Tulip Hotels Pvt.Ltd., R.No.609, 6Th Floor Chandermukhi Building Aayakar Bhavan (Basement), Behind The M.K.Road, Oberoi Nariman Point Mumbai – 400 020 Mumbai – 400 021 Pan/Gir No. Aaact9446Q Appellant) .. Respondent)

Section 10Section 143Section 143(3)Section 14A

…in its appeal for A.Y. 2010- 11. My learned predecessor. Commissioner of Income Tax (Appeals) - 7, Mumbai in para 5, pg. 5 of his order no. ClT(A)- 7/IT-6027DCIT-3(3)712-13 dt 08.10.2013 had followed the ratio in Siva Industries and Holding Ltd. v. CIT (2012) 54 SOT 49 (Chennai) wherein the Hon'ble ITAT Chennai had held, "even in the year where no exempt income is earned or received by the assesses, disallowance u/s 14A can be made." Based on this, my learned predecessor had upheld the disallowance u/s 14A. 5.1.4 However, I find that my learned predecessor had not discussed in detail the merits of applicability o…

Madhusha Holdings P.Ltd, Mumbai vs. ITO 3(2)(2), Mumbai

The appeal of the assessee is partly allowed

ITA 6676/MUM/2013[2010-11]Status: DisposedITAT Mumbai25 Jan 2018AY 2010-11

Bench: Shri Joginder Singh & Shri Rajesh Kumar

Section 2(22)(e)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘बी’,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, ‘B’ MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी राजेश कुमार, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri Rajesh Kumar, Accountant Member ITA Nos.6675 & 6676/Mum/2013 Assessment Years: 2009-10 & 2010-11 M/s Madhusha Holdings P. Income Tax Officer-3(2)(2), Ltd.(formerly known as R. No.609, 6th Floor, बनाम/ UCIL Investment Ltd.), Aayakar Bhavan, Vs. 69A Mittal Chambers, M.K. Road, Nariman Point, Mumbai-400020 Mumbai-400021 (राज"व /Revenue) ("नधा"रती /Assessee) PAN. No.AAACV4048D "नधा"रती…

Madhusha Holdings P.Ltd, Mumbai vs. ITO 3(2)(2), Mumbai

The appeal of the assessee is partly allowed

ITA 6675/MUM/2013[2009-10]Status: DisposedITAT Mumbai25 Jan 2018AY 2009-10

Bench: Shri Joginder Singh & Shri Rajesh Kumar

Section 2(22)(e)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘बी’,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, ‘B’ MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी राजेश कुमार, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri Rajesh Kumar, Accountant Member ITA Nos.6675 & 6676/Mum/2013 Assessment Years: 2009-10 & 2010-11 M/s Madhusha Holdings P. Income Tax Officer-3(2)(2), Ltd.(formerly known as R. No.609, 6th Floor, बनाम/ UCIL Investment Ltd.), Aayakar Bhavan, Vs. 69A Mittal Chambers, M.K. Road, Nariman Point, Mumbai-400020 Mumbai-400021 (राज"व /Revenue) ("नधा"रती /Assessee) PAN. No.AAACV4048D "नधा"रती…