ASST. COMMISSIONER OF INCOME TAX, CC-2, SURAT vs. AALIDHAARA TEXTOOL ENGINEERS PVT. LTD, SURAT

In the result, the grounds of appeal raised by Revenue are partly allowed

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 14A r.w. pre-amended Rule 8D of the I.T. Rules. (3) On the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in restricting the disallowance

DY. COMMISSIONER OF INCOME TAX, CENTRAL CIR.-3, SURAT vs. SH. HARESHBHAI MOHANBHAI SAKARIYA, SURAT

In the result, Revenue’s appeal is dismissed

Bench: Shri Pawan Singh & Dr. Arjun Lal Sainiit(Ss)A No.01/Srt/2021 (Ay 2010-11) It(Ss)A No.09/Srt/2020 (Ay 2014-15) (Hearing In Physical Court) Deputy Commissioner Of Shri Dineshchandra D Income-Tax, Central Circle- Koradia, 3Room No.507, 5Th Floor, 9/10, Dayanand Society, Aayakar Bhawan, Majura B/H.Navyug College, Gate, Surat-395001 Rander Road, Surat Pan No: Acupk 3696 A Assistant Commissioner Of Vs Income-Tax, Central Circle-3, Room No.507, 5Th Floor, Aayakar Bhawan, Majura Gate, Surat-395001 Appellant / Revenue Respondent /Assessee

disallowance under section 14A, therefore, with the consent of parties, all the appeals were clubbed, heard and decided by a consolidated order to avoid the conflicting decisions. For appreciation of facts, the facts in assessment year 2010-11 in IT(SS)A No.01/SRT/2021 was treated as “lead” case. The Revenue has raised the following grounds of appeal

ENVIRO CONTROL PRIVATE LIMITED,SURAT vs. PRINCIPAL COMMISSIONER OF INCOME- 1, SURAT

In the result, the appeal filed by the assessee is dismissed

Bench: Shri Pawan Singh, Jm &Dr. A.L.Saini, Am आयकर अपीलसं./Ita No.113/Srt/2022 (िनधा"रणवष" / Assessment Year: (2017-18) (Virtual Court Hearing) Enviro Control Pvt. Ltd., Principal Commissioner Of Income- Tax-I, Surat Aayakar Bhawan, Majura Nr. Titan Showroom Ghod Dod Road, Vs. Gate, Opp. New Civil Hospital, Surat- Surat-395001 395001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 8700 C (Appellant ) (Respondent)

section 14A(2) and 14A(3) of the Act to ascertain the correctness of the claim of the assessee that no expenditure was incurred in relation to income which does not form part of the total income under this Act. Therefore, ld PCIT held that assessing officer has not inquired the issue of disallowance

KIRTIKUMAR NAGINDAS SHAH,SURAT vs. INCOME TAX OFFICER, WARD 2(3)(6), SURAT

In the result, ground No.2 raised by the assessee is allowed

Bench: Shri Dr. A. L. Sainiआयकर अपील सं./Ita No.535/Srt/2023 Assessment Year: (2014-15) (Physical Hearing) Kiritkumar Nagindas Shah, Vs. The Ito, A-1103, Regent Residency, Near Ward – 2(3)(6), Saurabh Society, Pal, Surat Surat – 395009, Gujarat "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Anjps9031P (Appellant) (Respondent)

3. Dividend income 23 However, you have not furnished any separate account for expenses incurred for earring of exempt income. Hence, section 14 of the I.T. Act attracts in your case. Therefore, you are asked to furnish explanation as to why expenditure incurred of Rs.7,56,965/- for earning exempt income should not be disallowed u/s 14A

S J P CONSTRUCTIONS PRIVATE LIMITED,SURAT vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(2), SURAT

In the result, ground No. 1 to 3 of the appeal are allowed for statistical purpose

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.430/Srt/2023 (Ay 2015-16) (Hearing In Physical Court) S J P Constructions Pvt. Ltd. Deputy Commissioner Of E-3300, Radhakrishna Textile Income Tax, Circle-2(1)(2) Vs Market, Ring Road, Surat- Surat, Aaykar Bhavan, 395002 Income Tax Colony, Pan No. Aajcs 4313 C Athwa, Surat-395001 अपीलाथ"/Appellant ""थ" /Respondent

disallowed depreciation as well as interest cost of Rs.2.38 crores. 3. The Assessing Officer further noted that assessee has made investment in share and mutual fund of Rs.1.61 crores and that provision of Section 14A

M/S SUMILON INDUSTRIES PVT. LTD.,SURAT vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX - 1, SURAT

In the result, appeal of the assessee is allowed

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita No.87/Srt/2022 ("नधा"रणवष" / Assessment Year: (2017-18) (Physical Court Hearing) M/S Sumilon Industries Pvt. Principal Commissioner Of Ltd. 6-121-A, Vairagini Wadi, Income-Tax-1, Aaykar Bhavan, Vs. Delhi Gate, Surat-395003 Majura Gate, Surat-395001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aadcs3567 L (Appellant) (Respondent) िनधा"रती की ओर से /Assessee By : Shri Mukund Bakshi, C.A राज"व क" ओर से /Respondent By: Shri Ashok B. Koli, Cit-D.R

14A,read with Rule 8D. 2. The Kolkata Tribunal Bench in the case of Eveready Industries India Ltd. vs. PCIT [2020] 14 taxmann.com 610 (Kolkata-Trib.) has held that – Assessee filed its return of income which was processed under Section 143(3).Subsequently, Pr. Commissioner initiated revision under section 263 on ground that disallowance

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE -1(1)(1), SURAT vs. ENVIRO CONTROL PVT. LTD., SURAT

In the result, the appeal is partly allowed

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.274 & 307/Srt/2022 ("नधा"रण वष" /Assessment Years: (2013-14 & 2017-18) (Virtual Court Hearing) Assistant Commissioner Of Enviro Control Pvt. Ltd., Income-Tax, Circle-1(1)(1), Vs. Enviro House, Opp. Bank Of Surat, Room No.108, 1St Floor, Maharshtra, Ghod Dod Road, Surat- Aayakar Bhawan, Majura 395007 Gate, Surat "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 8700 C (Assessee) (Respondent)

disallowance of Rs.12,91,383/- in accordance with the provision of sub-section (3) of Section 14A of the Act, 1961 r.w.s.8D

ASSISTANT COMMISSIONER OF INCOME TAX , CIRCLE - 1(1)(1), SURAT vs. ENVIRO CONTROL PVT. LTD., , SURAT

In the result, the appeal is partly allowed

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.274 & 307/Srt/2022 ("नधा"रण वष" /Assessment Years: (2013-14 & 2017-18) (Virtual Court Hearing) Assistant Commissioner Of Enviro Control Pvt. Ltd., Income-Tax, Circle-1(1)(1), Vs. Enviro House, Opp. Bank Of Surat, Room No.108, 1St Floor, Maharshtra, Ghod Dod Road, Surat- Aayakar Bhawan, Majura 395007 Gate, Surat "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 8700 C (Assessee) (Respondent)

disallowance of Rs.12,91,383/- in accordance with the provision of sub-section (3) of Section 14A of the Act, 1961 r.w.s.8D

THE ACIT, CIRCLE-2,, BHARUCH vs. SHRI AMRUTLAL BABALDAS PATEL,, ANKLESHWAR

In the result, ground No. 2 of appeal raised by the revenue is dismissed

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Hearing In Virtual Court) The Assistant Commissioner Of Shri Amrutlal Babaldas Patel, Income Tax, Circle-2, Vs I) A/96, Jalkamal Apartment, Bharuch. Near Manav Mandir, Gidc, Ankleshwar, Gujarat – 392002. Ii) 32, Surdhara Bunglow, Near Sai Hospital, Thaltej, Ahmedabad. Pan: Aebpp 2999 E Appellant/ Revenue Respondent/ Assessee Assessee By Shri Jimit Shah – Ca Revenue By Shri Sita Ram Meena – Sr.Dr 22/02/2022 Date Of Hearing 12/05/2022 Date Of Pronouncement Order Under Section 254(1) Of Income Tax Act Per Pawan Singh: 1. This Appeal By The Revenue Is Directed Against Order Of Ld. Commissioner Of Income Tax (Appeals)-3, Vadodara Dated 29.04.2016 For The A.Y. 2012-13. The Revenue Raised The Following Grounds Of Appeal: “1. On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(Appeals) Erred In Deleting The Disallowance Of Development Expenses Of Rs.1,79,19,550/- Without Appreciating That The Purported Expenditure Was On Account Of Contractual Payment To Four Related Parties. 1.1 The Ld. Cit(A) Erred In Not Appreciating That The Payment Of The Labour Expenses To The Contractors Were Held Up For Three Years Of Sale Of Land & Payment Was Made In The Calendar Year 2015 Only After The A.O. Sought Proof Of Payment. 1.2 The Ld. Cit(A) Erred In Not Appreciating The Fact That Contractors Of The Assessee Have Also Held Up Payment To Their Creditors For A Long Span Of Three Years, Which Is Not Acceptable On Any Surmise. Shri Amrutlal Babaldas Patel

14A of the Act without appreciating that the disallowance was on the basis of working submitted by the assessee in the assessment proceedings. 3. The appellant craves to add, amend or alter the above grounds as may be deemed necessary. Relief claimed in appeal. The order of the CIT(A) on the above issue be set aside and that

GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD,SURAT vs. PR. CIT-3, VADODARA

In the result, appeal filed by the assessee is allowed

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.178/Srt/2020 Assessment Year: (2014-15) (Virtual Court Hearing) Gujarat Narmada Valley Fertilizers Vs. The Pcit-3 & Chemicals Ltd., Surat. Narmada House, Narmadanagar, Bharuch – 392015. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaacg8372Q (Appellant) (Respondent) Assessee By Shri Yogesh Shah, Ar Respondent By Shri Ashok B. Koli, Cit-Dr Date Of Hearing 03/01/2023 Date Of Pronouncement 22/02/2023

section 143(3) of the Income Tax Act (Act) was erroneous and prejudicial to the interest of the revenue and thereby restoring the issue of disallowance u/s 14A

ALIDHARA TEXSPIN ENGINEERS,DADRA UT OF D & NH vs. THE ACIT., VAPI CIRCLE, VAPI

In the result, assessee`s appeal is partly allowed in above terms

Bench: Shri Pawan Singh, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.446/Srt/2018 (िनधा"रणवष" / Assessment Year: (2014-15) (Virtual Court Hearing) Alidhara Texspin Engineers Assistant Commissioner Of Income Plot No.2, Block No.122,Vaghdhara Tax, Vapi Circle, Vapi Vs. Road, Dadra "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaifa 2434 N (Appellant ) (Respondent)

section 14A. This judgment says about small investments. In the assessee`s case the investment is big enough. The Hon`ble Gujarat high Court delivered this judgment based on combined concept of interest and administrative expenses. We note that disallowance of interest expenses fall under 2nd limb of Rule 8D of the Rules and administrative expenses fall under 3rd limb

DCIT, CIRCLE-1(1)(2), SURAT vs. J K PAPER LTD, SURAT

In the result, all these three appeals of the Revenue are dismissed

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

3) of the Act on 28.12.2016. The Assessing Officer (AO) while passing the assessment was order made a number of additions of the disallowances as mentioned on page no. 48 and 49 of the assessment order. The Assessing Officer also computed book profit of the assessee under Section 115JB of the Act and made ITA 156/SRT/2020 DCIT

DCIT, CIRCLE-1(1)(1), SURAT, SURAT vs. M/S. J K PAPER LIMITED, SURAT

In the result, all these three appeals of the Revenue are dismissed

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

3) of the Act on 28.12.2016. The Assessing Officer (AO) while passing the assessment was order made a number of additions of the disallowances as mentioned on page no. 48 and 49 of the assessment order. The Assessing Officer also computed book profit of the assessee under Section 115JB of the Act and made ITA 156/SRT/2020 DCIT

DCIT, CIRCLE-1(1)(2), SURAT vs. J K PAPER LTD, SURAT

In the result, all these three appeals of the Revenue are dismissed

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

3) of the Act on 28.12.2016. The Assessing Officer (AO) while passing the assessment was order made a number of additions of the disallowances as mentioned on page no. 48 and 49 of the assessment order. The Assessing Officer also computed book profit of the assessee under Section 115JB of the Act and made ITA 156/SRT/2020 DCIT

SACH ELECTRO MECH PVT. LTD.,,SURAT vs. THE INCOME TAX OFFICER, WARD-2(1)(2),, SURAT

In the result ground No. 4 of the appeal is allowed

Bench: Shri Pawan Singh, Hon'Ble & Dr Arjun Lal Saini, Hon'Ble(Virtual Court - Virtual Hearing) आ.अ.सं./I.T.A No.262/Ahd/2017 "नधा"रण वष"/Assessment Year: 2013-14 Sach Electro Mech Pvt. Ltd., V The Income Tax Officer, C/2, Maheshwari Apartment, S Ward-2(1)(2), Surat. Timaliyawad, Nanpura, . Surat – 395 001. [Pan: Aaics 8963 M] अपीलाथ" / Appellant ""यथ"/Respondent "नधा"रतीक"ओरसे /Assessee By Shri Manish J.Shah – Ar राज"वक"ओरसे /Revenue By Mrs. Anupam Singla – Sr.Dr

3,11,536/-, disallowed Rs. 90,637/- being the payment of interest to the Kotak Mahindra Prime Ltd., disallowed Rs.1,27,628/- the interest paid on late payment of TDS under section 37 and disallowance of Rs.61,883/- under section 14A

INCOME TAX OFFICER WARD - 1(1)(1), SURAT vs. V R SURAT PVT. LTD. FORMERLY KNOWN AS M/S DHANLAXMI INFRASTRUCTURE PVT. LTD., SURAT

In the result, cross objection filed by the assessee (in CO

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.329/Srt/2022 Assessment Year: (2015-16) (Physical Hearing) Income Tax Officer, Ward- Vs. V R Surat Pvt. Ltd. 1(1)(1), Surat, Room No.111, 1St (Formerly Known As M/S. Floor, Aayakar Bhawan, Majura Dhanlaxmi Infrastructure Pvt. Gate, Surat-395001 Ltd.,).F. No.29, Virtuous Retail, Surat Dumas, Nr. Dumas Resort, Magdalla, Surat– 395007 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaccd5578R (Assessee) (Respondent) ""या"ेप. सं./Co No.16/Srt/2022 [Arising Out Of Ita No.329/Srt/2022] Assessment Year: (2015-16)

disallowance made by the assessee under section 14A of the Act amounting to Rs. 33,26,922 in the return of income. In doing so, Ld. assessing officer/Ld. CIT(A) erred in not considering that: a) The assessee has sufficient interest free funds amounting to Rs.1,51,39,39,468 as compared to the investment in mutual funds (yielding exempt

SMT NITUBEN PRADEEP DHINGRA,SURAT vs. PR. CIT-1, SURAT, SURAT

In the result, appeal of the assessee is dismissed

3) of the Act was finalized on 23.11.2016 at assessed income of Rs.2,92,880/- by way of making additions of Rs.2,92,880/- on account of disallowance of expenditure under section 14A

JUPAX DISTRIBUTORS PVT. LTD.,KOLKATA vs. ITO WARD 12(2), KOLKATA

In the result, ground of appeal raised by the assessee assessment order allowed for statistical purposes

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Physical Hearing) Jupax Distributors Pvt. Ltd., A.C.I.T., Circle-4,Surat. 58A, Raja Basant Roy Road, (Old A.O.: Ito, Ward 12(2), Vs. Kolkata-700029. Kolkata (Wb) Pan No. Aaacj 6952 F Appellant/ Assessee Respondent/ Revenue

disallowance under Section 14A is made by the assessee. The assessment order was passed on 02/03/2015 under Section 144/143(3