Union of India v. Azadi Bachao Andolan

Morarjee Realities Ltd. (Now Known As Peninsula Land Ltd.), Mumbai vs. Dy.C.I.T. Circle 6(3), Mumbai

In the result, appeal of the assessee as well as of the Revenue is partly allowed

Bench: Shri G.S. Pannu & Shri Sandeep Gosain: A.Y : 2004-05

…reiterated the submission made before the CIT(A). It is explained that the transactions entered are within the framework of law and not paper transactions. A reference was made to the decision of the Hon’ble Supreme Court in the case of Azadi Bachao Andolan, 263 ITR 703 (SC), wherein it has been observed that an act which is otherwise valid in law cannot be treated as non-est merely on the basis of some underlying motive supposedly resulting in some economic detriment or prejudice to the Department. 31 Morarjee Realties Ltd. ITA Nos. 2135 & 2343/Mum/2009 44. In reply, the Ld. DR has attempted to distinguish th…

Aditya Jyot Eye Hospital Pvt. Ltd., Mumbai vs. ITO - 6(1)(1), Mumbai

In the result, all the five appeals of the assessee are allowed

Bench: Sri Mahavir Singh

…justifiable. It is also argued that the transaction if any can be considered as tax planning which is not against the law and facts, therefore, the finding of the CIT(A) is not justifiable in view of the law settled in Union of India Vs. Azadi Bachao Andolan 263 ITR 706 (SC), Madras High Court in M.V. Vallipan Vs. CIT 170 ITR 238 & Bhoruka Engg. Ltd. Vs. DCIT 356 ITR 25. However, on the other hand, the Ld. Representative of the Department has strongly relied upon the order passed by the CIT(A) in question. The factual position is not in dispute. The assessee purchased the flat bearing flat no.602, in the buildin…

DCIT 1(1)(2), Mumbai vs. Hardcastle & Waud Manufacturing Co. Ltd, Mumbai

In the result, the appeal by Revenue is partly allowed

Bench: Shri Shamim Yahya (Am) & Shri Amarjit Singh (Jm)

…see had really made profits in the transaction, it was not permissible for him to add back to assessee’s return any fictional income. Learned CIT(A) further referred to the decision of Hon'ble Apex Court in the case of Union of India Vs. Azadi Bachao Andolan (263 ITR 706). 16. Learned DR relied on the order of the Assessing Officer. 17. Per contra, learned Counsel of the assessee submitted that learned CIT(A) has passed correct order. NAV of the company whose shares were sold would come to negative at Rs. 3.18 hence, learned counsel submitted that no fault can be placed on sale of shares by price which is more…

ITO 3(3)2, Mumbai vs. Shamrock Pharmachemi P.Ltd, Mumbai

In the result appeal of the Revenue in ITA No

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.1774/Mum/2013 (नििाारण वर्ा / Assessment Year: 2009-10) बिाम/ Ito 3(3)2, M/S. Shamrock R.No. 602, Pharmachemi Pvt. Ltd., Aayakar Bhavan, 83E,Hansraj Pragi Bldg., V. M.K Road, Opp. Dr. E Moses Road, Mumbai 400020 Worli, Mumbai-400018 स्थायी ऱेखा सं./ Pan: Aaacs6290H (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue By: Shri. Ashim Kumar Modi (Cit- Dr), Shri V. Justin & Ms. Chaitna Ajaria Shri. Bharat L. Gandhi Assessee By: सुनवाई की तारीख /Date Of Hearing : 01.03.2019 घोषणा की तारीख /Date Of Pronouncement : 30.05.2019 आदेश / O R D E R Per Ramit Kochar: This Appeal, Filed By Revenue, Being Ita No. 1774/Mum/2013, Is Directed Against Appellate Order Dated 29.10.2012, Passed By Learned Commissioner Of Income Tax (Appeals)-7, Mumbai (Hereinafter Called ―The Cit(A)‖) In Appeal Number Cit(A)-7/Ito-3(3)(2)/It-166/11-12, For Assessment Year 2009-10, The Appellate Proceedings Had Arisen Before Learned Cit(A) From The Assessment Order Dated 29.12.2011 Passed By Learned Assessing Officer (Hereinafter Called ―The Ao‖) U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Called ―The Act‖) For Ay 2009-10. I.T.A. No.1774/Mum/2013

…or services rendered outside India could not be deemed to be income which has either accrued or arisen in India. The above contentions if I.T.A. No.1774/Mum/2013 further supported in the judgment reported in 64 DTR 257. f) Relying on the judgment reported in 263 ITR 706 that the Offshore Companies can take the exemption and benefit of double taxation avoidance agreement between the respective countries and such types of interpretation has to be done beneficial to the Assessee. g) It is also settled law that the circulars issued by the Central Board of Direct taxes are binding upon the Income Tax Authorities u/s…

Asst CIT 16(2), Mumbai vs. Mahendra Popatlal Shah, Mumbai

Bench: Hon’Ble Sh. G. S. Pannu, Vp & Hon’Ble Sh. Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 819/Mum/2014 (निर्धारणवर्ा / Assessment Year: 2009-10) In The Matter Of:

…to the promoters and that it was a "colourable device to evade tax". Reliance was placed onMcDowell 154 ITR 148 (SC),Wood Polymer 47 CC 597 (Guj) &Groupe Industrial Marcel Dassault (AAR). HELD by the High Court rejecting the objection: InAzadi Bachao Andolan263 ITR 706 (SC), it was held that McDowell cannot be read as laying down that every attempt at tax planning is illegitimate and must be ignored, or that every transaction or arrangement which is perfectly permissible under law, which has the effect of reducing the tax burden of the assessee, must be looked upon with disfavor. A citizen is free to act in a m…