INTAS PHARMACEUTICALS LTD.,AHMEDABAD vs. THE DCIT, CIRCLE-2(1)(1), AHMEDABAD

Accordingly, this ground raised by the Revenue is dismissed

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2015-16 Acit, Cir.2(1)(1) M/S.Intas Pharmaceuticals Ltd Vejalpur Vs Corporate House Ahmedabad. S.G. Highway Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L Asstt.Year : 2015-16 M/S.Intas Pharmaceuticals Ltd Acit, Cir.2(1)(1) Corporate House Vs Vejalpur S.G. Highway Ahmedabad. Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, Sr.Advocae & Shri Parin Shah, Ar : Shri Ragnesh Das, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 28/04/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

iii) of the IT Act" (7) "Whether the CIT(A) has erred in law and on facts in deleting the disallowance of expenditure related to exempt income u/s.14A r.w.r. 8D of the IT Act made while computing income under normal provisions of the Act?" (8) "Whether the CIT(A) has erred in law and on facts in deleting the disallowance

M/S. HAVMOR ICE CREAM LIMITED,,AHMEDABAD vs. THE DCIT, CIRCLE-2(1)(1),, AHMEDABAD

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

Bench: Shri Pramod M. Jagtap & Shri T.R. Senthil Kumarassessment Year : 2013-14 M/S. Havmor Ice Cream Limited The Deputy Commissioner Of 2Nd Floor, Commerce House Iv Vs Income-Tax, Besides Shell Petrol Pump Circle-2(1)(1), Prahladnagar, Ahmedabad Ahmedabad Pan : Aabch 6766 L अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Dhinal Shah, Ca Revenue By : Shri V.K. Singh, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 25/03/2022 घोषणा क" तार"ख /Date Of Pronouncement: 30/03/2022 आदेश/O R D E R Per Pramod M. Jagtap, Vice-This Appeal Filed By The Assessee Is Directed Against The Order Of Ld. Commissioner Of Income-Tax (Appeals)-2, Ahmedabad [Cit(A)] Dated 12.10.2017 & The Solitary Issue Relating To Disallowance Of Rs.15,52,172/- On Account Of Interest As Made By The Assessing Officer & Confirmed By The Ld.Cit(A) Is Raised Therein By Way Of The Following Original Grounds:- “Ground No.1 – Disallowance Of Rs.15,52,172/- Under Section 36(1)(Iii) Towards Capital Work In Progress (“Cwip”) 1. Based On The Facts & Circumstances Of The Case & In Law, The Learned Cit(A) Has Erred In Making Disallowance Of Interest Of Rs.15,52,172/- Under Section 36(1)(Iii) Of The Act On Account Of Expenditure Incurred By The Appellant On Cwip. 2. On The Facts & In The Circumstances Of The Case & In Law, The Learned Cit(A) Erred In Considering The Facts That Expenditure Incurred On Cwip Ay 2013-14 Havmor Ice Cream Ltd. Vs. Dcit 2

section 36(1)(iii) are clearly applicable. As regard appellant's argument that it has its own accrual to make investment in CWIP, appellant has incurred expenditure out of cash credit account on which interest has been paid. Appellant has relied on the case of Nirma Limited in which Honourable Tribunal has stated that in a case of cash credit

ATUL LIMITED,AHMEDABAD vs. THE ACIT, CIRCLE-1(1)(1), AHMEDABAD

In the result, the appeal is partly allowed

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2017-18 Atul Limited Acit, Cir.1(1)(1) Atul House, Gi Patel Mark Vs Ahmedabad. Mithila Society, Ahmedabad. Pan : Aabca 2390 M (Applicant) (Responent) Assessee By : Shri Bandish Soparkar, Ar : Shri Prathvi Raj Meena, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 01/05/2025 घोषणा क" तारीख /Date Of Pronouncement: 08/05/2025 आदेश/O R D E R आदेश आदेश आदेश

iii), computing 1% of the average value of investments at Rs.8,34,69,516/-, and after reducing the amount already disallowed suo motu by the assessee, made a net disallowance of Rs.8,26,43,616/-. This amount was also added back to the book profits under section

PAWAN EDIFICE PVT. LTD.,VADODARA vs. THE DY.CIT, CIRCLE-2(1)(2), VADODARA

section 36(1)(iii) in accordance with law and in line with our observations above. In case the assessee fails to produce credible evidence, the disallowance as sustained by the CIT(A) shall stand confirmed. Issue – 3 – Addition on account of Notional interest on advances/rent 49. For A.Y. 2013–14, the Assessing Officer noted from the financial statements that

ORIENTAL ENTERPRISE PRIVATE LIMITED,VADODARA vs. THE ACIT, CIRCLE-2(1)(2), VADODARA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

disallowed proportionate interest of Rs. 26,25,000/- (calculated at 15% of Rs. 1,75,00,000/-) under Section 36(1)(iii

ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-2(1)(1), VADODARA, VADODARA vs. ORIENTAL ENTERPRISES PRIVATE LIMITED, PCC NOTIFIED AREA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

disallowed proportionate interest of Rs. 26,25,000/- (calculated at 15% of Rs. 1,75,00,000/-) under Section 36(1)(iii

ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 2(1)(1), VADODARA, VADODARA vs. ORIENTAL ENTERPRISES PRIVATE LIMITED,, PCC NOTIFIED AREA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

disallowed proportionate interest of Rs. 26,25,000/- (calculated at 15% of Rs. 1,75,00,000/-) under Section 36(1)(iii

THE DY.CIT, CENTRAL CIRCLE-1, VADODARA vs. PAWAN EDIFICE PVT. LTD., VADODARA

Appeals are partly allowed for\nstatistical reasons

section 36(1)(iii) in accordance with law\nand in line with our observations above. In case the assessee fails to produce\ncredible evidence, the disallowance as sustained by the CIT(A) shall stand\nconfirmed.\nIssue – 3 – Addition on account of Notional interest on advances/rent\n49.\nFor A.Y. 2013–14, the Assessing Officer noted from the financial\nstatements that

THE ACIT,(OSD)CIRCLE-8,, AHMEDABAD vs. TORRENT POWER LTD.,, AHMEDABAD

In the result, the appeal of the Revenue and the Cross-objection of the assessee, both are dismissed

Bench: Shri Sandeep Gosain & Shri Amarjit Singh

III. Deputy Commissioner of Income-tax, Range 3(1), Mumbai vs. Beck India Ltd. 26 SOT 141 IV. Impulse (India) (P.) Ltd. :vs_ _ Assistant Commissioner. of Income-tax (OSD), New Delhi 22 SOT 368. V. CIT vs. Hero Cycles Ltd. [2010] 189 Taxman 50 (P& H High Court) . Without prejudice to the above, it may be appreciated that the appellant

SUZLON ENERGY LTD.,,AHMEDABAD vs. THE DY. COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), AHMEDABAD

In the result the Ground Nos

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

disallowance under section 14A was squarely covered by Supreme Court in South Indian Bank Ltd. v. CIT [2021] 130 taxmann.com 178/283 Taxman 178/438 ITR 1/ [2021] 10 SCC 153 wherein it was held that since interest free own funds available with assessee exceeded their investments in tax-free securities, investments would be presumed to be made out of assessee

THE DY. COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), AHMEDABAD vs. SUZLON ENERGY LTD.,, AHMEDABAD

In the result the Ground Nos

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

disallowance under section 14A was squarely covered by Supreme Court in South Indian Bank Ltd. v. CIT [2021] 130 taxmann.com 178/283 Taxman 178/438 ITR 1/ [2021] 10 SCC 153 wherein it was held that since interest free own funds available with assessee exceeded their investments in tax-free securities, investments would be presumed to be made out of assessee

THE DY. COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), AHMEDABAD vs. SUZLON ENERGY LTD.,, AHMEDABAD

In the result the Ground Nos

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

disallowance under section 14A was squarely covered by Supreme Court in South Indian Bank Ltd. v. CIT [2021] 130 taxmann.com 178/283 Taxman 178/438 ITR 1/ [2021] 10 SCC 153 wherein it was held that since interest free own funds available with assessee exceeded their investments in tax-free securities, investments would be presumed to be made out of assessee

SUZLON ENERGY LTD.,,AHMEDABAD vs. THE DY. COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), AHMEDABAD

In the result the Ground Nos

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

disallowance under section 14A was squarely covered by Supreme Court in South Indian Bank Ltd. v. CIT [2021] 130 taxmann.com 178/283 Taxman 178/438 ITR 1/ [2021] 10 SCC 153 wherein it was held that since interest free own funds available with assessee exceeded their investments in tax-free securities, investments would be presumed to be made out of assessee

THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(1),, AHMEDABAD vs. INDO COLCHEM LTD.,, AHMEDABAD

In the result, revenue’s appeal is dismissed

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

disallowance under section 40(a)(ia) for any payments made to such non-resident agents without deduction of tax at source. Learned representatives, however, fairly agree, even as learned Departmental Representative dutifully relies upon the stand of the authorities below, that this issue is now covered by a coordinate bench decision of this Tribunal in the case of DCIT

KARNAVATI ENGINEERING LTD.,,AHMEDABAD vs. THE DEPUTY COMMISSIONER OF INCOME TAX (OSD) CIRCLE-4,, AHMEDABAD

In the result, the appeal is allowed in the terms indicated above

disallowance under section 40(a)(ia) for any payments made to such non- resident agents without deduction of tax at source. Learned representatives, however, fairly agree, even as learned Departmental Representative dutifully relies upon the stand of the authorities below, that this issue is now covered by a coordinate bench decision of this Tribunal in the case of DCIT

THE ACIT, CIRCLE-2(1)(1),, AHMEDABAD vs. INDO COLCHEM PVT. LTD.,, AHMEDABAD

In the result, the appeal is dismissed

disallowance under section 40(a)(ia) for any payments made to such non-resident agents without deduction of tax at source. Learned representatives, however, fairly agree, even as learned Departmental Representative dutifully relies upon the stand of the authorities below, that this issue is now covered by a coordinate bench decision of this Tribunal in the case of DCIT

THE DCIT, CIRCLE-1(2),, BARODA vs. M/S. ASTRAL PHARMACEUTICALS INDUSTRIES,, BARODA

In the result, appeal, the appeal and cross-objection, both are dismissed

Bench: The Ao U/S 195(2) Of The Act, Though It Was Obligation Of The Assessee. 3. The Ld. Cit(Appeals) Erred In Law In Allowing The Claim Of The Assessee Without Appreciating The Fact That Assessee Itself Has Deducted Service Tax From The Payments Made To M/S. Urja International, Usa Which Proves That The

iii) royalty. These is, however no controversy in respect of payment of sales commission to non- residents as can be seen from the following direct decisions: • ACIT Vs Rapid Pack Engg.(P) Ltd. [2014] 46 taxmann.co 330 (Mumbai trib.) • Prithvi Information Solutions Ltd. Vs (TO (TDS) [2014]G5 SOT 89 (Hyderbad Trib) (URO) • Rich Gravis Products (p.) Ltd. Vs Addl.CIT

THE DCIT, CIRCLE-1(2),, BARODA vs. M/S. ASTRAL PHARMACEUTICALS INDUSTRIES,, BARODA

In the result, appeal, the appeal and cross-objection, both are dismissed

Bench: The Ao U/S 195(2) Of The Act, Though It Was Obligation Of The Assessee. 3. The Ld. Cit(Appeals) Erred In Law In Allowing The Claim Of The Assessee Without Appreciating The Fact That Assessee Itself Has Deducted Service Tax

iii) royalty. These is, however no controversy in respect of payment of sales commission to non- residents as can be seen from the following direct decisions: • ACIT Vs Rapid Pack Engg.(P) Ltd. [2014] 46 taxmann.co 330 (Mumbai trib.) • Prithvi Information Solutions Ltd. Vs (TO (TDS) [2014]G5 SOT 89 (Hyderbad Trib) (URO) • Rich Gravis Products (p.) Ltd. Vs Addl.CIT

ACIT CENTRAL CIRCLE 2(3), AHMEDABAD vs. INTAS PHARMACEUTICALS LIMITED, AHMEDABAD

In the result, the appeal of the Revenue is dismissed

Bench: Ms. Suchitra R. Kamble & Shri Narendra Prasad Sinhaasst. Commissioner Of M/S. Intas Pharmaceuticals Ltd., Vs. Income-Tax, Corporate House, S.G. Highway, Central Circle 2(3), Nr. Sola Bridge, Thaltej, Ahmedabad Ahmedabad-380 054 [Pan : Aaaci 5120 L] (Appellant) .. (Respondent) Appellant Represented By : Shri Sher Singh, Cit (Dr) Respondent Represented By: Shri S. N. Soparkar, Sr. Advocate & Ms. Urvashi Sodhan, Ar Date Of Hearing 07.01.2026 Date Of Pronouncement 24.02.2026 O R D E R Per Ms. Suchitra R. Kamble:-

26,38,250/- on account of weighted Deduction claim of the assessee u/s 35(2AB) in excess of that allowed by the DSIR in Form 3CL. 15) Whether on the facts and the circumstances of the case and in law, the ld CIT(A) has erred in deleting the disallowance of interest of Rs. 14,06,15,203/u/s.36(1)(iii