commercial substance — 140 case laws

ITO-41(4)(1), Mumbai vs. Chirania Trading LLP, Mumbai

ITA 150/MUM/2024[2012]Status: DisposedITAT Mumbai30 Oct 2024

Bench: IN THE INCOME TAX APPELLATE TRIBUNAL "C" BENCH, MUMBAI SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 150/MUM/2024 (Assessment Year: 2012-13) ITA No. 993/MUM/2024 (Assessment Year: 2014-15) ITA No. 992/MUM/2024 (Assessment Year: 2015-16) Income Tax Officer 41(4)(1), Mumbai Kautilya Bhavan, BKC, Bandra East, Mumbai-400051 Maharashtra Appellant Vs Chirania Trading LLP, Mumbai 914, Corporate Annex, Near Udyog Bhavan, Sonawala Lane, Goregaon East Mumbai-4000

For Appellant: Shri Jay BhansaliFor Respondent: Shri H. M. Bhatt/Shri Raj Singh

Section 10(38)Section 143(3)Section 68

worth of KDJH was negligible and the share prices have been artificially rigged to reach an unusual high. (e) The purchase/sale transactions lacked commercial substance, being artificially structured transactions, entered into with the sole purpose of evading taxes and introducing unaccounted cash into books. 10.5. In view of the above

ACIT-2(1)(1), Mumbai vs. Vallabh Roopchand Bhanshali, Mumbai

In the result, appeal of the Revenue is allowed

ITA 889/MUM/2024[2017-18]Status: DisposedITAT Mumbai06 Aug 2024AY 2017-18

Bench: Ms. Kavitha Rajgopal & Shri Gagan Goyalacit Circle 2(1) (1), R. No. 575, 5Th Floor, Aayakar Bhavan, Mumbai- 400 020. ...... Appellant Vs. Shri Vallabh Roopchand Bhansali, 18Th Floor, 191, Dongarsi Road, Walkeshwar, Mumbai-400 006 Pan: Aabpb4198H ..... Respondent

For Appellant: Shri Ankush Kapoor, Ld. DRFor Respondent: Shri C. Balaram Murthy, Ld. AR

Section 10(38)Section 143(2)Section 250

GENERAL ANTI- AVOIDANCE RULE], although applicable w.e.f. A.Y. 2018-19 onwards. It is further held that the arrangement under scrutiny appears to lack commercial substance. It was noticed that the transaction under consideration created extraordinary rights and obligations that do not align with principles of fairness, suggesting it qualify

ITO -24(2)(1), Mumbai, Piramal Chambers vs. Kailash Chandra Gupta, HUF, Mumbai

ITA 4013/MUM/2023[2012-13]Status: DisposedITAT Mumbai26 Jul 2024AY 2012-13

Section 10(38)Section 143(1)Section 143(2)Section 148

IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “E” Bench, Mumbai. Before Ms. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM) Ι

ACIT, Circle-2(2)(1), Int. Taxation, New Delhi vs. Maven India Fund, Mauritius

Appeal is dismissed

ITA 1766/DEL/2023[2018-19]Status: DisposedITAT Delhi23 Jul 2024AY 2018-19

Bench: Shri Saktijit Dey & Shri M. Balaganeshassessment Year: 2018-19

Section 10(34)Section 10(38)Section 13(4)Section 133(6)

doing any bonafide business activity and was just being used to channelize funds to India to avail treaty benefits. The applicant company has no commercial substance. Mere possession of a TRC alone is not sufficient proof of control and management of the applicant company in Mauritius. Therefore ... First Appellate Authority has clearly discussed the correct facts, which demonstrate that not only the assessee is a genuine tax resident of Mauritius, having commercial substance, but the control and management of the assessee for the year under consideration was in Mauritius. Thus, he submitted, the learned First Appellate Authority

India Property (Mauritius) Company II, Mauritius vs. ACIT, Circle Int. Taxation 2(1)(1), New Delhi

ITA 1020/DEL/2023[2018-19]Status: DisposedITAT Delhi18 Jul 2024AY 2018-19

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharma

Section 143(3)Section 144C(13)Section 234ASection 90(2)

shares in India, at the time of disposal of shares to a third party, solely with a view to avoid tax without any commercial substance. Tax Department, in such a situation, notwithstanding the fact that the Mauritian company is required to. be treated as a beneficial owner of the shares ... shares in India, at the time of disposal of shares to a third party, solely with a view to avoid tax 15 without any commercial substance. Tax Department, in such a situation, notwithstanding the fact that the Mauritian company is required to be treated as a beneficial owner

Ramanlal Jivrajbhai Patel, Thane vs. The Income Tax Officer, Ward-1, Himatnagar

In the result, the appeal filed by the Assessee is partly allowed

ITA 515/AHD/2024[2016-17]Status: DisposedITAT Ahmedabad11 Jun 2024AY 2016-17

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member Assessment Year : 2016-17 Ramanlal Jivrajbhai Patel The Ito B-2003, Shreeji Heights Vs Ward-1 (Palm Beach Road, Navi Mumbai – Himatnagar Thane, Nerul Node –Iii So) Sector 46A, Plot No.1, 1A, 1B, 1C Thane 400 706 Maharashtra Pan: Abcpp 1551 G .. अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri B.K. Patel, Ca Revenue By : Shri Ketan Gajjar, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 06/06/2024 घोषणा क" तार"ख /Date Of Pronouncement: 11/06/2024 आदेश/O R D E R Per Makarand V. Mahadeokarthis Appeal By The Assessee Is Directed Against The Order Dated 20/02/2024 Passed By The Ld.Commissioner Of Income Tax (Appeals)- Nfac, Delhi [Hereinafter Referred To As 'The Ld. Cit(A)'] In The Matter Of Assessment Order Passed By The Assessing Officer [Hereinafter Referred To As 'The Ao’] Under Section 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As 'The Act') For The Assessment Year (Ay) 2016-17. Facts Of The Case: Ramanlal Jivrajbhai Patel Vs. Ito Asst. Year : 2016-17

For Appellant: Shri B.K. Patel, CAFor Respondent: Shri Ketan Gajjar, Sr.DR

Section 143(2)Section 143(3)Section 28Section 37(1)Section 80C

only genuinely incurred for business purposes, but are also reasonable in the context of the business operations. 7.1. If the transaction is having commercial substance, tax arbitrage need not be a reason to disallow the expenditure. The amount of expenditure should be reasonable in relation to the nature

Norwest Venture Partners X - Mauritius, Mauritius vs. DCIT Circle Intl. Taxation 2(2)(2), New Delhi

ITA 2311/DEL/2023[2020-21]Status: DisposedITAT Delhi19 Mar 2024AY 2020-21

Bench: Shri Saktijit Dey & Shri Pradip Kumar Kedia[Assessment Year: 2020-21]

Section 143(3)Section 144C(13)Section 71(4)

From the aforesaid analysis of facts, the Assessing Officer concluded that the assessee was controlled and managed from outside and does not have any commercial substance or real economic activity in Mauritius. He observed, the ultimate parent company of the assessee is beneficially owned by the entity

Superb Mind Holding Ltd., New Delhi vs. ACIT Circle Int Tax 3(1)(2), New Delhi

In the result, appeal of the assessee is allowed

ITA 1568/DEL/2022[2018-19]Status: DisposedITAT Delhi05 Mar 2024AY 2018-19

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.1568/Del/2022 िनधा"रणवष"/Assessment Year: 2018-19

Section 112Section 143(3)Section 144C(5)

shares in India, at the time of disposal of the shares to a third party, solely with a view to avoid tax without any commercial substance. Tax Department, in such a situation, notwithstanding the fact that the Mauritian company is required to be treated as the beneficial owner ... ignored if the treaty is abused for the fraudulent purpose of evasion of tax. ” 2.9 The AO is therefore not precluded from verifying the commercial substance of the transaction under consideration, notwithstanding the holding of a TRC. The tax treaty does not allow its improper use or such use which

ACIT 16(1), Mumbai vs. 9X Media P.Ltd, Mumbai

ITA 4600/MUM/2017[2012-13]Status: DisposedITAT Mumbai21 Nov 2023AY 2012-13

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Ashok Rao, CAFor Respondent: Ms. Riddhi Mishra, CIT DR

Section 115Section 14ASection 35D

shares in India, at the time of disposal of the shares to a third party, solely with a view to avoid tax without any commercial substance." In the present case, it prima-facie appears that M/s. NSR-PE Mauritius has been established solely with a view to avoid tax without ... commercial substance. Round Tripping: Para 105 of the order: In this para, Hon'ble SC has made the following observation which is worth quoting: "India is considered to be the most attractive investment destinations and, it is known, has received $37.763 billion in FDI and $29.048 billion in Fll investment

9X Media P.Ltd, Mumbai vs. Asst CIT 16(1), Mumbai

ITA 3606/MUM/2017[2012-13]Status: DisposedITAT Mumbai21 Nov 2023AY 2012-13

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Ashok Rao, CAFor Respondent: Ms. Riddhi Mishra, CIT DR

Section 115Section 14ASection 35D

shares in India, at the time of disposal of the shares to a third party, solely with a view to avoid tax without any commercial substance." In the present case, it prima-facie appears that M/s. NSR-PE Mauritius has been established solely with a view to avoid tax without ... commercial substance. Round Tripping: Para 105 of the order: In this para, Hon'ble SC has made the following observation which is worth quoting: "India is considered to be the most attractive investment destinations and, it is known, has received $37.763 billion in FDI and $29.048 billion in Fll investment

ACIT 16(1), Mumbai vs. 9X Media P.Ltd, Mumbai

ITA 7477/MUM/2016[2011-12]Status: DisposedITAT Mumbai21 Nov 2023AY 2011-12

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Ashok Rao, CAFor Respondent: Ms. Riddhi Mishra, CIT DR

Section 115Section 14ASection 35D

shares in India, at the time of disposal of the shares to a third party, solely with a view to avoid tax without any commercial substance." In the present case, it prima-facie appears that M/s. NSR-PE Mauritius has been established solely with a view to avoid tax without ... commercial substance. Round Tripping: Para 105 of the order: In this para, Hon'ble SC has made the following observation which is worth quoting: "India is considered to be the most attractive investment destinations and, it is known, has received $37.763 billion in FDI and $29.048 billion in Fll investment

9X Media P.Ltd, Mumbai vs. JCIT RG 11(1), Mumbai

ITA 7052/MUM/2016[2011-12]Status: DisposedITAT Mumbai21 Nov 2023AY 2011-12

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Ashok Rao, CAFor Respondent: Ms. Riddhi Mishra, CIT DR

Section 115Section 14ASection 35D

shares in India, at the time of disposal of the shares to a third party, solely with a view to avoid tax without any commercial substance." In the present case, it prima-facie appears that M/s. NSR-PE Mauritius has been established solely with a view to avoid tax without ... commercial substance. Round Tripping: Para 105 of the order: In this para, Hon'ble SC has made the following observation which is worth quoting: "India is considered to be the most attractive investment destinations and, it is known, has received $37.763 billion in FDI and $29.048 billion in Fll investment

Dsd Noell Gmbh, New Delhi vs. DCIT Circle-1(2)(2) International Taxation, New Delhi

In the result, the appeals of the assessee are allowed

ITA 1619/DEL/2022[2018-19]Status: DisposedITAT Delhi21 Nov 2023AY 2018-19

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 271Section 44BSection 9Section 9(1)(vii)