DCIT CORPORATE CIRCLE 5(1), CHENNAI vs. REPCO HOME FINANCE P LTD., CHENNAI

In the result, the appeal of Revenue in ITA no

Bench: Shri George Mathan & Shri Ramit Kochar

section 43B of the Act by virtue of Finance Act, 2003 with effect from 1-4-2004 it agreed with the submission of the learned counsel for the assessee that by virtue of the omission of the second proviso and the omission of clauses (a), (c), (d ), (e) and (f) without any saving clause would mean that the provisions

SREE RAM CONSTRUCTIONS,NO.77, RAMANUJA NAGAR, UPPILIPALAYAM POST, COIMBATORE vs. DCIT, COIMBATORE

The appeal stands allowed in terms of our above order

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri Manoj Kumar Aggarwal, Am S.

68 291/Chny/2021 2018-19 Shri Penchalaiah, ACIT Mr. M. 26, Swatha Tira Nagar, Centralized Karunakaran, Lloyds Road, 4th Street, Processing Center, Advocate Triplicane, Chennai Bengaluru-560 500. 600005. PAN: AIKPP-1825-G 69 311/Chny/2021 2019-20 M/s. Shakun Consumer ADIT Mr. N. Arjunraj, CA Products P. Ltd., Centralized 2nd Floor, 163-1 Prakasam Processing Center, Salai, Boradway, Chennai Bengaluru

ACIT, CHENNAI vs. UPDATER SERVICES LIMITED, CHENNAI

In the result, the grounds of appeal raised by both the assessee and the Revenue, as well as the grounds raised in the cross-objections filed by the assessee, are treated as allowed for statistical...

Bench: Shri S.S. Viswanethra Ravi & Shri S. R. Raghunathaआयकर अपील सं./Ita No.:1339 /Chny/2025 िनधा#रण वष# / Assessment Year: 2017-18 M/S. Updater Services Limited (Formerly Dcit, Known As Updater Services Private Vs. Central Circle -2(3), Limited), No.2/302-A, Uds Salai, Chennai. Off Old Mahabalipuram Road, Thoraipakkam, Chennai – 600 097. [Pan:Aaacu-6845-J] (अपीलाथ%/Appellant) (&'थ%/Respondent)

68,89,00,000 under Section 56(2)(viia) of the Act; and o Disallowance of interest expenditure of INR 5,70,62,500 under Section 36(1)(iii) of the Act, being computed at 10% of the buyback value, i.e., 57,06,25,000 :-9-: ITA Nos.:1339, 1616/Chny/2025 & C.O.No.66/Chny/2025 • Pursuant to the appeal filed

M/S. UPDATER SERVICES LTD.,CHENNAI vs. DCIT, CENTRAL CIRCLE-2(3), CHENNAI

In the result, the grounds of appeal raised by both the assessee and the Revenue, as well as the grounds raised in the cross-objections filed by the assessee, are treated as allowed for statistical...

Bench: Shri S.S. Viswanethra Ravi & Shri S. R. Raghunathaआयकर अपील सं./Ita No.:1339 /Chny/2025 िनधा#रण वष# / Assessment Year: 2017-18 M/S. Updater Services Limited (Formerly Dcit, Known As Updater Services Private Vs. Central Circle -2(3), Limited), No.2/302-A, Uds Salai, Chennai. Off Old Mahabalipuram Road, Thoraipakkam, Chennai – 600 097. [Pan:Aaacu-6845-J] (अपीलाथ%/Appellant) (&'थ%/Respondent)

68,89,00,000 under Section 56(2)(viia) of the Act; and o Disallowance of interest expenditure of INR 5,70,62,500 under Section 36(1)(iii) of the Act, being computed at 10% of the buyback value, i.e., 57,06,25,000 :-9-: ITA Nos.:1339, 1616/Chny/2025 & C.O.No.66/Chny/2025 • Pursuant to the appeal filed

M/S ASPIRE SYSTEMS INDIA PRIVATE LIMITED ,CHENNAI vs. DCIT , CORPORATE RANGE - 1 (1), CHENNAI

In the result, appeals filed by the revenue for assessment

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1069, 1070 & 1071/Chny/2022, 159 & 315/Chny/2023 िनधा"रण वष" / Assessment Years: 2010-11, 2017-18, 2016-17, 2012-13 & 2013-14 Dcit/Jcit(Osd), M/S. Aspire Systems India Corporate Circle -1(1), V. Private Limited, Chennai – 600 034. Old No. 4, New No. 7, Ii Trust Link Road, Raja Annamalaipuram, Chennai – 600 028. [Pan: Aacca-4543-M] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 39 & 40/Chny/2023 िनधा"रण वष" / Assessment Years: 2012-13 & 2013-14

68 Taxmann.com 366 due to the fact that, the subsidiary companies made available their complex technical skills for the completion/final execution of the software development programme with the ultimate customer of the appellant in US/UAE. In other words, until the involvement of the US subsidiary, the software development will not be completed. 6. Existence of PE: Further, it was submitted

M/S ASPIRE SYSTEMS INDIA PRIVATE LIMITED ,CHENNAI vs. DCIT , CORPORATE RANGE - 1 (1), CHENNAI

In the result, appeals filed by the revenue for assessment

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1069, 1070 & 1071/Chny/2022, 159 & 315/Chny/2023 िनधा"रण वष" / Assessment Years: 2010-11, 2017-18, 2016-17, 2012-13 & 2013-14 Dcit/Jcit(Osd), M/S. Aspire Systems India Corporate Circle -1(1), V. Private Limited, Chennai – 600 034. Old No. 4, New No. 7, Ii Trust Link Road, Raja Annamalaipuram, Chennai – 600 028. [Pan: Aacca-4543-M] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 39 & 40/Chny/2023 िनधा"रण वष" / Assessment Years: 2012-13 & 2013-14

68 Taxmann.com 366 due to the fact that, the subsidiary companies made available their complex technical skills for the completion/final execution of the software development programme with the ultimate customer of the appellant in US/UAE. In other words, until the involvement of the US subsidiary, the software development will not be completed. 6. Existence of PE: Further, it was submitted

DCIT , CORPORATE CIRCLE - 1 (1), CHENNAI vs. M/S ASPIRE SYSTEMS INDIA PRIVATE LIMITED , CHENNAI

In the result, appeals filed by the revenue for assessment

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1069, 1070 & 1071/Chny/2022, 159 & 315/Chny/2023 िनधा"रण वष" / Assessment Years: 2010-11, 2017-18, 2016-17, 2012-13 & 2013-14 Dcit/Jcit(Osd), M/S. Aspire Systems India Corporate Circle -1(1), V. Private Limited, Chennai – 600 034. Old No. 4, New No. 7, Ii Trust Link Road, Raja Annamalaipuram, Chennai – 600 028. [Pan: Aacca-4543-M] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 39 & 40/Chny/2023 िनधा"रण वष" / Assessment Years: 2012-13 & 2013-14

68 Taxmann.com 366 due to the fact that, the subsidiary companies made available their complex technical skills for the completion/final execution of the software development programme with the ultimate customer of the appellant in US/UAE. In other words, until the involvement of the US subsidiary, the software development will not be completed. 6. Existence of PE: Further, it was submitted

DCIT , CORPORATE RANGE - 1 (1), CHENNAI vs. M/S ASPIRE SYSTEMS INDIA PRIVATE LIMITED , CHENNAI

In the result, appeals filed by the revenue for assessment

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1069, 1070 & 1071/Chny/2022, 159 & 315/Chny/2023 िनधा"रण वष" / Assessment Years: 2010-11, 2017-18, 2016-17, 2012-13 & 2013-14 Dcit/Jcit(Osd), M/S. Aspire Systems India Corporate Circle -1(1), V. Private Limited, Chennai – 600 034. Old No. 4, New No. 7, Ii Trust Link Road, Raja Annamalaipuram, Chennai – 600 028. [Pan: Aacca-4543-M] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 39 & 40/Chny/2023 िनधा"रण वष" / Assessment Years: 2012-13 & 2013-14

68 Taxmann.com 366 due to the fact that, the subsidiary companies made available their complex technical skills for the completion/final execution of the software development programme with the ultimate customer of the appellant in US/UAE. In other words, until the involvement of the US subsidiary, the software development will not be completed. 6. Existence of PE: Further, it was submitted

DCIT , CORPORATE CIRCLE - 1 (1), CHENNAI vs. M/S ASPIRE SYSTEMS INDIA PRIVATE LIMITED , CHENNAI

In the result, appeals filed by the revenue for assessment

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1069, 1070 & 1071/Chny/2022, 159 & 315/Chny/2023 िनधा"रण वष" / Assessment Years: 2010-11, 2017-18, 2016-17, 2012-13 & 2013-14 Dcit/Jcit(Osd), M/S. Aspire Systems India Corporate Circle -1(1), V. Private Limited, Chennai – 600 034. Old No. 4, New No. 7, Ii Trust Link Road, Raja Annamalaipuram, Chennai – 600 028. [Pan: Aacca-4543-M] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 39 & 40/Chny/2023 िनधा"रण वष" / Assessment Years: 2012-13 & 2013-14

68 Taxmann.com 366 due to the fact that, the subsidiary companies made available their complex technical skills for the completion/final execution of the software development programme with the ultimate customer of the appellant in US/UAE. In other words, until the involvement of the US subsidiary, the software development will not be completed. 6. Existence of PE: Further, it was submitted

DCIT , CORPORATE CIRCLE - 1 (1), CHENNAI vs. M/S ASPIRE SYSTEMS INDIA PRIVATE LIMITED , CHENNAI

In the result, appeals filed by the revenue for assessment

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1069, 1070 & 1071/Chny/2022, 159 & 315/Chny/2023 िनधा"रण वष" / Assessment Years: 2010-11, 2017-18, 2016-17, 2012-13 & 2013-14 Dcit/Jcit(Osd), M/S. Aspire Systems India Corporate Circle -1(1), V. Private Limited, Chennai – 600 034. Old No. 4, New No. 7, Ii Trust Link Road, Raja Annamalaipuram, Chennai – 600 028. [Pan: Aacca-4543-M] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 39 & 40/Chny/2023 िनधा"रण वष" / Assessment Years: 2012-13 & 2013-14

68 Taxmann.com 366 due to the fact that, the subsidiary companies made available their complex technical skills for the completion/final execution of the software development programme with the ultimate customer of the appellant in US/UAE. In other words, until the involvement of the US subsidiary, the software development will not be completed. 6. Existence of PE: Further, it was submitted

JCIT(OSD),CORPORATE CIRCLE-1(10, CHENNAI vs. ASPIRE SYSTEMS INDIALTD., CHENNAI

In the result, appeals filed by the revenue for assessment

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1069, 1070 & 1071/Chny/2022, 159 & 315/Chny/2023 िनधा"रण वष" / Assessment Years: 2010-11, 2017-18, 2016-17, 2012-13 & 2013-14 Dcit/Jcit(Osd), M/S. Aspire Systems India Corporate Circle -1(1), V. Private Limited, Chennai – 600 034. Old No. 4, New No. 7, Ii Trust Link Road, Raja Annamalaipuram, Chennai – 600 028. [Pan: Aacca-4543-M] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 39 & 40/Chny/2023 िनधा"रण वष" / Assessment Years: 2012-13 & 2013-14

68 Taxmann.com 366 due to the fact that, the subsidiary companies made available their complex technical skills for the completion/final execution of the software development programme with the ultimate customer of the appellant in US/UAE. In other words, until the involvement of the US subsidiary, the software development will not be completed. 6. Existence of PE: Further, it was submitted

SRINIVASA FASHIONS PVT LTD.,CHENNAI vs. DCIT, CHENNAI

In the result, the assessee’s appeals in ITA Nos 1965, 1966 & 1967 are

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं/.I.T.A. Nos. 1965, 1966, 1967, 1968 /Mds/2016 & 2096/Mds/2017 "नधा"रण वष"/Assessment Years : 2008-09, 2008-09, 2010-11, 2011-12& 2009-10 M/S. Srinivasa Fashions Pvt. Ltd., Deputy Commissioner Of Income Tax, 1A, Regency Apartments, Vs. Corporate Circle -6(2), No. 5, 1St Lane, Aayakar Bhavan, New Block, 7Th Floor, 121 M.G. Road, Nungambakkam High Road, Chennai - 600 034. Chennai - 600 034. [Pan: Aaics 9511R]

68,22,748/-. Combined profit of two units is Rs. 2,22,65,415/- itself proves that the assessee's contention is wrong. The AO observed that consequently in DTA unit, whose income is chargeable to income tax but it does not have any deduction/exemption benefit u/s 10AA , consequently huge artificial losses are created by deliberately keeping the processing charges

SRINIVASA FASHIONS PVT LTD.,CHENNAI vs. DCIT, CHENNAI

In the result, the assessee’s appeals in ITA Nos 1965, 1966 & 1967 are

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं/.I.T.A. Nos. 1965, 1966, 1967, 1968 /Mds/2016 & 2096/Mds/2017 "नधा"रण वष"/Assessment Years : 2008-09, 2008-09, 2010-11, 2011-12& 2009-10 M/S. Srinivasa Fashions Pvt. Ltd., Deputy Commissioner Of Income Tax, 1A, Regency Apartments, Vs. Corporate Circle -6(2), No. 5, 1St Lane, Aayakar Bhavan, New Block, 7Th Floor, 121 M.G. Road, Nungambakkam High Road, Chennai - 600 034. Chennai - 600 034. [Pan: Aaics 9511R]

68,22,748/-. Combined profit of two units is Rs. 2,22,65,415/- itself proves that the assessee's contention is wrong. The AO observed that consequently in DTA unit, whose income is chargeable to income tax but it does not have any deduction/exemption benefit u/s 10AA , consequently huge artificial losses are created by deliberately keeping the processing charges

DCIT, CHENNAI vs. SRINIVASA FASHIONS LTD., CHENNAI

In the result, the assessee’s appeals in ITA Nos 1965, 1966 & 1967 are

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं/.I.T.A. Nos. 1965, 1966, 1967, 1968 /Mds/2016 & 2096/Mds/2017 "नधा"रण वष"/Assessment Years : 2008-09, 2008-09, 2010-11, 2011-12& 2009-10 M/S. Srinivasa Fashions Pvt. Ltd., Deputy Commissioner Of Income Tax, 1A, Regency Apartments, Vs. Corporate Circle -6(2), No. 5, 1St Lane, Aayakar Bhavan, New Block, 7Th Floor, 121 M.G. Road, Nungambakkam High Road, Chennai - 600 034. Chennai - 600 034. [Pan: Aaics 9511R]

68,22,748/-. Combined profit of two units is Rs. 2,22,65,415/- itself proves that the assessee's contention is wrong. The AO observed that consequently in DTA unit, whose income is chargeable to income tax but it does not have any deduction/exemption benefit u/s 10AA , consequently huge artificial losses are created by deliberately keeping the processing charges

SRINIVASA FASHIONS PVT LTD.,CHENNAI vs. DCIT, CHENNAI

In the result, the assessee’s appeals in ITA Nos 1965, 1966 & 1967 are

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं/.I.T.A. Nos. 1965, 1966, 1967, 1968 /Mds/2016 & 2096/Mds/2017 "नधा"रण वष"/Assessment Years : 2008-09, 2008-09, 2010-11, 2011-12& 2009-10 M/S. Srinivasa Fashions Pvt. Ltd., Deputy Commissioner Of Income Tax, 1A, Regency Apartments, Vs. Corporate Circle -6(2), No. 5, 1St Lane, Aayakar Bhavan, New Block, 7Th Floor, 121 M.G. Road, Nungambakkam High Road, Chennai - 600 034. Chennai - 600 034. [Pan: Aaics 9511R]

68,22,748/-. Combined profit of two units is Rs. 2,22,65,415/- itself proves that the assessee's contention is wrong. The AO observed that consequently in DTA unit, whose income is chargeable to income tax but it does not have any deduction/exemption benefit u/s 10AA , consequently huge artificial losses are created by deliberately keeping the processing charges

SRINIVASA FASHIONS PVT LTD.,CHENNAI vs. DCIT, CHENNAI

In the result, the assessee’s appeals in ITA Nos 1965, 1966 & 1967 are

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं/.I.T.A. Nos. 1965, 1966, 1967, 1968 /Mds/2016 & 2096/Mds/2017 "नधा"रण वष"/Assessment Years : 2008-09, 2008-09, 2010-11, 2011-12& 2009-10 M/S. Srinivasa Fashions Pvt. Ltd., Deputy Commissioner Of Income Tax, 1A, Regency Apartments, Vs. Corporate Circle -6(2), No. 5, 1St Lane, Aayakar Bhavan, New Block, 7Th Floor, 121 M.G. Road, Nungambakkam High Road, Chennai - 600 034. Chennai - 600 034. [Pan: Aaics 9511R]

68,22,748/-. Combined profit of two units is Rs. 2,22,65,415/- itself proves that the assessee's contention is wrong. The AO observed that consequently in DTA unit, whose income is chargeable to income tax but it does not have any deduction/exemption benefit u/s 10AA , consequently huge artificial losses are created by deliberately keeping the processing charges

SRINIVASA FASHIONS PVT. LTD.,CHENNAI vs. DCIT, CORPORATE CIRCLE-6(2), CHENNAI

In the result, the assessee’s appeals in ITA Nos 1965, 1966 & 1967 are

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं/.I.T.A. Nos. 1965, 1966, 1967, 1968 /Mds/2016 & 2096/Mds/2017 "नधा"रण वष"/Assessment Years : 2008-09, 2008-09, 2010-11, 2011-12& 2009-10 M/S. Srinivasa Fashions Pvt. Ltd., Deputy Commissioner Of Income Tax, 1A, Regency Apartments, Vs. Corporate Circle -6(2), No. 5, 1St Lane, Aayakar Bhavan, New Block, 7Th Floor, 121 M.G. Road, Nungambakkam High Road, Chennai - 600 034. Chennai - 600 034. [Pan: Aaics 9511R]

68,22,748/-. Combined profit of two units is Rs. 2,22,65,415/- itself proves that the assessee's contention is wrong. The AO observed that consequently in DTA unit, whose income is chargeable to income tax but it does not have any deduction/exemption benefit u/s 10AA , consequently huge artificial losses are created by deliberately keeping the processing charges

CASA GRAND BUILDER PRIVATE LIMITED,CHENNAI vs. DCIT, CORP CIRCLE -1(2), CHENNAI

The appeal stand partly allowed for statistical purposes

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.933/Chny/2023 (िनधा)रण वष) / Assessment Year: 2018-19) M/S Casa Grand Builder Private Ltd. Dcit बनाम/ 5Th Floor, Npl Devi, Lb Road, Corporate Circle -1(2) Vs. Thiruvanmiyur, Chennai-600 041. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaccc-2758-A (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri Reddy Prakash (Ca) (Virtual)- Ld.Ar " थ"कीओरसे/Respondent By : Shri Nilay Baran Som (Cit) -Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 25-06-2024 घोषणाकीतारीख /Date Of Pronouncement : 03-07-2024 आदेश / O R D E R Manoj Kumar Aggarwal ()

36(1)(va) of the Act. 16.The LO Assessing Officer failed to appreciate that all these payments had been made before the due date for filing of return of income under Section 139(1) and are allowable under Section 43B(b) of the Income Tax Act, 1961. 17.The LO Assessing Officer erred in disallowing donation

ARUMUGANADAR NARAYANAN,CHENNAI vs. ACIT CORP CIRCLE 1(1), CHENNAI

In the result, appeal filed by the assessee is allowed for\nstatistical purposes

68,396/-. On\nperusal of assessment order it is observed that the addition was\nmade on account of disallowing u/s. 36(1)(va) of the Act under\nthe head 'income from business or profession” amounting to\nRs.1,33,570/- and disallowing interest expenses amounting to\nRs.1,58,67,203/-. Accordingly, a sum of Rs.1,60,00,773/- was\nadded back