DAAWAT FOODS LTD.,NEW DELHI vs. ACIT, NEW DELHI

In the result, assessee’s appeal in ITA

Bench: Sh. Anil Chaturvedi & Sh. Kuldip Singh(Through Video Conferencing) & Daawat Foods Ltd., Vs. Acit, Unit No.134, 1St Floor, Central Circle – 19, Rectangle I, New Delhi Saket District Centre, Saket, New Delhi-110 017 Pan No. Aaccd 3698 N (Appellant) (Respondent) Assessee By Shri Ajay Vohra, Sr. Adv. Shri Rohit Jain, Adv. Ms. Deepashree Rao, C.A. Shri Vibhu Gupta, C.A. Revenue By Ms. Nidhi Srivastava, Cit-D.R Date Of Hearing: 17/12/2020 Date Of Pronouncement: 19/01/2021 Order Per Anil Chaturvedi, Am: Both The Appeals Filed By The Assessee Are Directed Against The Order Dated 28.03.2013 Of The Commissioner Of Income Tax (A)-Xxxiii, New Delhi Relating To Assessment Years 2007-08 & 2008-09. Ita Nos.4157 & 4158/Del/2013 Daawat Foods Ltd Vs. Acit A.Y. 2007-08 & 2008-09 2 2. The Relevant Facts As Culled From The Material On Records Are As Under:

section 142(2A) is illegal and bad in law and the report submitted by the special auditor is illegal, bad in law and without jurisdiction. 4. That the special auditor has erred on facts and in law in scrutinizing and auditing those issues which are not part of the terms of reference and has exceeded his jurisdiction in making observations

DAAWAT FOODS LTD.,NEW DELHI vs. ACIT, NEW DELHI

In the result, assessee’s appeal in ITA

Bench: Sh. Anil Chaturvedi & Sh. Kuldip Singh(Through Video Conferencing) & Daawat Foods Ltd., Vs. Acit, Unit No.134, 1St Floor, Central Circle – 19, Rectangle I, New Delhi Saket District Centre, Saket, New Delhi-110 017 Pan No. Aaccd 3698 N (Appellant) (Respondent) Assessee By Shri Ajay Vohra, Sr. Adv. Shri Rohit Jain, Adv. Ms. Deepashree Rao, C.A. Shri Vibhu Gupta, C.A. Revenue By Ms. Nidhi Srivastava, Cit-D.R Date Of Hearing: 17/12/2020 Date Of Pronouncement: 19/01/2021 Order Per Anil Chaturvedi, Am: Both The Appeals Filed By The Assessee Are Directed Against The Order Dated 28.03.2013 Of The Commissioner Of Income Tax (A)-Xxxiii, New Delhi Relating To Assessment Years 2007-08 & 2008-09. Ita Nos.4157 & 4158/Del/2013 Daawat Foods Ltd Vs. Acit A.Y. 2007-08 & 2008-09 2 2. The Relevant Facts As Culled From The Material On Records Are As Under:

section 142(2A) is illegal and bad in law and the report submitted by the special auditor is illegal, bad in law and without jurisdiction. 4. That the special auditor has erred on facts and in law in scrutinizing and auditing those issues which are not part of the terms of reference and has exceeded his jurisdiction in making observations

PARAM DAIRY LTD.,NEW DELHI vs. ACIT, CENTRAL CIRCLE- 14, NEW DELHI

In the result, for both the years, the appeal of the assessee is partly allowed

Bench: Shri Amit Shukla & Shri O.P. Kant

disallowance of expenses of Rs.4,14,120 made by the assessing officer under section 69C of the Act on the ground that the same were not accounted in books of account. 6. That the assessing officer erred on facts and in law in levying/ charging and computing interest under section 234B and 234C of the Act. 4. Ground of Appeal

PARAM DAIRY LTD.,NEW DELHI vs. ACIT, CENTRAL CIRCLE- 14, NEW DELHI

In the result, for both the years, the appeal of the assessee is partly allowed

Bench: Shri Amit Shukla & Shri O.P. Kant

disallowance of expenses of Rs.4,14,120 made by the assessing officer under section 69C of the Act on the ground that the same were not accounted in books of account. 6. That the assessing officer erred on facts and in law in levying/ charging and computing interest under section 234B and 234C of the Act. 4. Ground of Appeal

ADDL. CIT, SPECIAL RANGE- 7, NEW DELHI vs. PTC INDIA FINANCIAL SERVICES LTD, NEW DELHI

In the result, the appeals of the assessee for AY 2013-14 and 2014-15

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2013-14 & Asstt. Year 2014-15

3 in AY 2014-15 are thus decided in favour of the assessee. 15. Ground No. 6 and 7 of AY 2013-14 and Ground No. 5, 6 & 7 of AY 2014-15 relate to disallowance of Rs. 1,76,16,528/- and Rs. 2,89,99,437/- respectively claimed by the assessee under section 36 (i) (viii

M/S. PTC INDIA FINANCIAL SERVICES LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result, the appeals of the assessee for AY 2013-14 and 2014-15

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2013-14 & Asstt. Year 2014-15

3 in AY 2014-15 are thus decided in favour of the assessee. 15. Ground No. 6 and 7 of AY 2013-14 and Ground No. 5, 6 & 7 of AY 2014-15 relate to disallowance of Rs. 1,76,16,528/- and Rs. 2,89,99,437/- respectively claimed by the assessee under section 36 (i) (viii

PTC INDIA FINANCIAL SERVICES LTD.,NEW DELHI vs. DCIT, CIRCLE- 19(2), NEW DELHI

In the result, the appeals of the assessee for AY 2013-14 and 2014-15

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2013-14 & Asstt. Year 2014-15

3 in AY 2014-15 are thus decided in favour of the assessee. 15. Ground No. 6 and 7 of AY 2013-14 and Ground No. 5, 6 & 7 of AY 2014-15 relate to disallowance of Rs. 1,76,16,528/- and Rs. 2,89,99,437/- respectively claimed by the assessee under section 36 (i) (viii

ACIT, NEW DELHI vs. M/S. PTC INDIA FINANCIAL SERVICES LTD., NEW DELHI

In the result, the appeals of the assessee for AY 2013-14 and 2014-15

Bench: Shri N.K. Billaiya & Ms. Astha Chandraasstt. Year 2013-14 & Asstt. Year 2014-15

3 in AY 2014-15 are thus decided in favour of the assessee. 15. Ground No. 6 and 7 of AY 2013-14 and Ground No. 5, 6 & 7 of AY 2014-15 relate to disallowance of Rs. 1,76,16,528/- and Rs. 2,89,99,437/- respectively claimed by the assessee under section 36 (i) (viii

DCIT, NEW DELHI vs. M/S DHARAMPAL SATYAPAL LTD.,, DELHI

Bench: Shri H. S. Sidhu & Shri Prashant Maharishi

section 153 A of The Act. Dharampal Satyapal Ltd Vs, DCIT ITA No. 3738, 3739/Del/2016 (A) & ITA No. 3882 & 3883/Del/2016(R) Assessment Year: 2010-11 & 2011-12 13(i). That Ld. CIT(A) erred on facts and in law in sustaining disallowance of purchase of sandalwood oil to extent of Rs 54,94,24,290/- holding same to be bogus

BT E- SERV (INDIA) PVT. LTD.,NEW DELHI vs. ITO, NEW DELHI

In the result appeal No. 99/Del/2016 filed by the assessee for assessment year 2011 – 12 is partly allowed

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi & Bt E-Serv (India) Pvt. Ltd, Ito, 11Th Floor, Eros Corporate Tower, Ward-5(2), Vs. Nehru Place, New Delhi New Delhi Pan:Aadcb2533M (Appellant) (Respondent)

3) of the Act with respect to realization of export proceeds 19. the learned AO / DRP have erred by failing to consider the legislative intent that even provision under section 115(11 A) of the Act do not intend to put any restriction on the deduction under section 10AA of the Act where the foreign exchange is not received within

DCIT, NEW DELHI vs. M/S. MARUTI SUZUKI INDIA LTD., NEW DELHI

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

SECTION 45, READ WITH SECTION 28(i), OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS, CHARGEABLE AS - ISSUE OF TAXABILITY OF SURPLUS ON SALE OF SHARES AND SECURITIES - CAPITAL GAINS OR BUSINESS INCOME - INSTRUCTIONS IN ORDER TO REDUCE LITIGATION CIRCULAR NO.6/2016 [F.NO.225/12/2016-ITA-II], DATED 29-2-2016 1. Sub-section (14) of section 2 of the Income

MARUTI SUZUKI INDIA LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

SECTION 45, READ WITH SECTION 28(i), OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS, CHARGEABLE AS - ISSUE OF TAXABILITY OF SURPLUS ON SALE OF SHARES AND SECURITIES - CAPITAL GAINS OR BUSINESS INCOME - INSTRUCTIONS IN ORDER TO REDUCE LITIGATION CIRCULAR NO.6/2016 [F.NO.225/12/2016-ITA-II], DATED 29-2-2016 1. Sub-section (14) of section 2 of the Income

CEVA FREIGHT (INDIA) PVT. LTD.,GURGAON vs. DCIT, GURGAON

Bench: Shri N. K. Saini & Ms Suchitra Kambleceva Freight India Pvt. Ltd. Vs Dcit (Now Merged With Ceva Logistics Circle-1(1), Gurgaon India Private Limited W.E.F. April, 5Th Floor, Hsiidc Building, 1, 2016 Vide Order Dated Vanijya Nikunj, Udyog November 9, 2017 Of National Vihar, Phase-V Company Law Tribunal) Gurgaon Sewa Tower, Plot No. 19, Sectdor- 18, 2Nd Floor, Block, C, Maruti Industrial Complex, Udyog Vihar Gurgaon Aaacc2674H (Respondent) (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit Sewa Tower, Plot No. 19, Sectdor- Circle-1(1), 18, 5Th Floor, Hsiidc Building, 2Nd Floor, Block, C, Maruti Vanijya Nikunj, Udyog Industrial Complex, Udyog Vihar Vihar, Phase-V Gurgaon Aaacc2674H Gurgaon (Appellant) (Respondent) Ceva Freight India Pvt. Ltd. Vs Acit Formerly Known As Egl Eagle Circle 1(1) Global Logistic (India) Pvt. Ltd. Gurgaon 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Vs Dcit Formerly Known As Egl Eagle Circle 11(1) Global Logistic (India) Pvt. Ltd. New Delhi 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit 1St Floor, Tower C, Dlf Building Circle 1(1) No. 10, Gurgaon Dlf Phase-Ii, Dlf Cyber City, Gurgaon Aaacc2674H (Respondent) (Appellant)

disallowance can be made under residuary clause of Rule 8D; disregarding that since no expenditure has been incurred by the appellant • in relation to exempt income, therefore, provisions of section 14A read with Rule 8D cannot be invoked; without recording a finding that any specific and identifiable expenditure • has been incurred by the appellant for earning exempt income. 3

M/S. CEVA FREIGHT (INDIA) PRIVATE LIMITED,GURGAON vs. DCIT, NEW DELHI

Bench: Shri N. K. Saini & Ms Suchitra Kambleceva Freight India Pvt. Ltd. Vs Dcit (Now Merged With Ceva Logistics Circle-1(1), Gurgaon India Private Limited W.E.F. April, 5Th Floor, Hsiidc Building, 1, 2016 Vide Order Dated Vanijya Nikunj, Udyog November 9, 2017 Of National Vihar, Phase-V Company Law Tribunal) Gurgaon Sewa Tower, Plot No. 19, Sectdor- 18, 2Nd Floor, Block, C, Maruti Industrial Complex, Udyog Vihar Gurgaon Aaacc2674H (Respondent) (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit Sewa Tower, Plot No. 19, Sectdor- Circle-1(1), 18, 5Th Floor, Hsiidc Building, 2Nd Floor, Block, C, Maruti Vanijya Nikunj, Udyog Industrial Complex, Udyog Vihar Vihar, Phase-V Gurgaon Aaacc2674H Gurgaon (Appellant) (Respondent) Ceva Freight India Pvt. Ltd. Vs Acit Formerly Known As Egl Eagle Circle 1(1) Global Logistic (India) Pvt. Ltd. Gurgaon 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Vs Dcit Formerly Known As Egl Eagle Circle 11(1) Global Logistic (India) Pvt. Ltd. New Delhi 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit 1St Floor, Tower C, Dlf Building Circle 1(1) No. 10, Gurgaon Dlf Phase-Ii, Dlf Cyber City, Gurgaon Aaacc2674H (Respondent) (Appellant)

disallowance can be made under residuary clause of Rule 8D; disregarding that since no expenditure has been incurred by the appellant • in relation to exempt income, therefore, provisions of section 14A read with Rule 8D cannot be invoked; without recording a finding that any specific and identifiable expenditure • has been incurred by the appellant for earning exempt income. 3

CEVA FREIGHT INDIA PVT. LTD.,GURGAON vs. DCIT, NEW DELHI

Bench: Shri N. K. Saini & Ms Suchitra Kambleceva Freight India Pvt. Ltd. Vs Dcit (Now Merged With Ceva Logistics Circle-1(1), Gurgaon India Private Limited W.E.F. April, 5Th Floor, Hsiidc Building, 1, 2016 Vide Order Dated Vanijya Nikunj, Udyog November 9, 2017 Of National Vihar, Phase-V Company Law Tribunal) Gurgaon Sewa Tower, Plot No. 19, Sectdor- 18, 2Nd Floor, Block, C, Maruti Industrial Complex, Udyog Vihar Gurgaon Aaacc2674H (Respondent) (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit Sewa Tower, Plot No. 19, Sectdor- Circle-1(1), 18, 5Th Floor, Hsiidc Building, 2Nd Floor, Block, C, Maruti Vanijya Nikunj, Udyog Industrial Complex, Udyog Vihar Vihar, Phase-V Gurgaon Aaacc2674H Gurgaon (Appellant) (Respondent) Ceva Freight India Pvt. Ltd. Vs Acit Formerly Known As Egl Eagle Circle 1(1) Global Logistic (India) Pvt. Ltd. Gurgaon 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Vs Dcit Formerly Known As Egl Eagle Circle 11(1) Global Logistic (India) Pvt. Ltd. New Delhi 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit 1St Floor, Tower C, Dlf Building Circle 1(1) No. 10, Gurgaon Dlf Phase-Ii, Dlf Cyber City, Gurgaon Aaacc2674H (Respondent) (Appellant)

disallowance can be made under residuary clause of Rule 8D; disregarding that since no expenditure has been incurred by the appellant • in relation to exempt income, therefore, provisions of section 14A read with Rule 8D cannot be invoked; without recording a finding that any specific and identifiable expenditure • has been incurred by the appellant for earning exempt income. 3

M/S CEVA FREIGHT (INDIA) PVT. LTD.,,GURGAON vs. ACIT, GURGAON

Bench: Shri N. K. Saini & Ms Suchitra Kambleceva Freight India Pvt. Ltd. Vs Dcit (Now Merged With Ceva Logistics Circle-1(1), Gurgaon India Private Limited W.E.F. April, 5Th Floor, Hsiidc Building, 1, 2016 Vide Order Dated Vanijya Nikunj, Udyog November 9, 2017 Of National Vihar, Phase-V Company Law Tribunal) Gurgaon Sewa Tower, Plot No. 19, Sectdor- 18, 2Nd Floor, Block, C, Maruti Industrial Complex, Udyog Vihar Gurgaon Aaacc2674H (Respondent) (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit Sewa Tower, Plot No. 19, Sectdor- Circle-1(1), 18, 5Th Floor, Hsiidc Building, 2Nd Floor, Block, C, Maruti Vanijya Nikunj, Udyog Industrial Complex, Udyog Vihar Vihar, Phase-V Gurgaon Aaacc2674H Gurgaon (Appellant) (Respondent) Ceva Freight India Pvt. Ltd. Vs Acit Formerly Known As Egl Eagle Circle 1(1) Global Logistic (India) Pvt. Ltd. Gurgaon 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Vs Dcit Formerly Known As Egl Eagle Circle 11(1) Global Logistic (India) Pvt. Ltd. New Delhi 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit 1St Floor, Tower C, Dlf Building Circle 1(1) No. 10, Gurgaon Dlf Phase-Ii, Dlf Cyber City, Gurgaon Aaacc2674H (Respondent) (Appellant)

disallowance can be made under residuary clause of Rule 8D; disregarding that since no expenditure has been incurred by the appellant • in relation to exempt income, therefore, provisions of section 14A read with Rule 8D cannot be invoked; without recording a finding that any specific and identifiable expenditure • has been incurred by the appellant for earning exempt income. 3

CEVA FREIGHT (INDIA) PVT. LTD.,GURGAON vs. DCIT, GURGAON

Bench: Shri N. K. Saini & Ms Suchitra Kambleceva Freight India Pvt. Ltd. Vs Dcit (Now Merged With Ceva Logistics Circle-1(1), Gurgaon India Private Limited W.E.F. April, 5Th Floor, Hsiidc Building, 1, 2016 Vide Order Dated Vanijya Nikunj, Udyog November 9, 2017 Of National Vihar, Phase-V Company Law Tribunal) Gurgaon Sewa Tower, Plot No. 19, Sectdor- 18, 2Nd Floor, Block, C, Maruti Industrial Complex, Udyog Vihar Gurgaon Aaacc2674H (Respondent) (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit Sewa Tower, Plot No. 19, Sectdor- Circle-1(1), 18, 5Th Floor, Hsiidc Building, 2Nd Floor, Block, C, Maruti Vanijya Nikunj, Udyog Industrial Complex, Udyog Vihar Vihar, Phase-V Gurgaon Aaacc2674H Gurgaon (Appellant) (Respondent) Ceva Freight India Pvt. Ltd. Vs Acit Formerly Known As Egl Eagle Circle 1(1) Global Logistic (India) Pvt. Ltd. Gurgaon 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Vs Dcit Formerly Known As Egl Eagle Circle 11(1) Global Logistic (India) Pvt. Ltd. New Delhi 1St Floor, Tower C, Dlf Building No. 10 Dlf Phase-Ii, Dlf Cyber (Respondent) City, Gurgaon Aaacc2674H (Appellant) Ceva Freight India Pvt. Ltd. Vs Dcit 1St Floor, Tower C, Dlf Building Circle 1(1) No. 10, Gurgaon Dlf Phase-Ii, Dlf Cyber City, Gurgaon Aaacc2674H (Respondent) (Appellant)

disallowance can be made under residuary clause of Rule 8D; disregarding that since no expenditure has been incurred by the appellant • in relation to exempt income, therefore, provisions of section 14A read with Rule 8D cannot be invoked; without recording a finding that any specific and identifiable expenditure • has been incurred by the appellant for earning exempt income. 3

ACIT, NEW DELHI vs. M/S. SOUL SPACE PROJECTS LTD., NEW DELHI

In the result, the appeals of the revenue are dismissed and the Cross Objections of the assessee are allowed

Bench: Ms. Sushma Chowladr. B. R. R. Kumarita No. 193/Del/2015 : Asstt. Year : 2007-08 Ita No. 1849/Del/2015 : Asstt. Year : 2008-09 Acit, Vs Soul Space Projects Ltd., Central Circle-15, E-23/B-1, Extn. Mcie, Mathura New Delhi-110055 Road, New Delhi-110044 (Appellant) (Respondent) Pan No. Aajcs7736F Co No. 271/Del/2015 : Asstt. Year : 2007-08 Co No. 284/Del/2015 : Asstt. Year : 2008-09 Soul Space Projects Ltd., Vs Acit, E-23/B-1, Extn. Mcie, Mathura Central Circle-15, Road, New Delhi-110044 New Delhi-110055 (Appellant) (Respondent) Pan No. Aajcs7736F

Disallowance under section 14A/ r.8D That the CIT(A) erred on the facts and in law in upholding addition of Rs.2,93,635/-under provision of section 14A/r.8D of the Act. Re: Interest under section 234A/B of the Act 8. That the assessing officer erred on facts and in law in charging/ computing interest under sections 234A & 234B