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2015 (7) TMI 49 - ITAT CHENNAI

2015 (7) TMI 49 - ITAT CHENNAI - TMI - Disallowance u/s. 14A r.w. Rule 8D - Held that:- Though the expenditure incurred by the assessee got the benefit to the assessee for more than one year that expenditure itself cannot be called/treated as capital expenditure on the simple reason that it does not bring into existence any new asset in the field of capital or in other words no new asset was developed by incurring that expenditure and even the accounting treatment given by the assessee cannot be .....

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nnot be said that resulted in enduring benefit.

As the expenditure has not resulted in capital asset, so has to be recorded as expenditure in capital field. It should be noted that the assessee had to incur this kind of expenditure year after year so as to be in business subsequently even the advantage secured from earlier expenditure would get dissipated. Further, we place reliance on the judgment of Supreme Court in the case of Alembic Chemical Works vs. CIT (1989 (3) TMI 5 - SUPRE .....

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revenue expenditure only. - Decided in favour of assessee.

Addition relating to expenditure incurred for exempt income while computing the book profit u/s.115JB - Held that:- Disallowance made u/s.14A r.w. Rule 8D cannot be added while computing book profit u/s.115JB of the Act that the disallowance is only disallowance for the purpose of computing taxable income of the assessee in the normal course. There is no provision in the Act to add these kind of disallowance while computing b .....

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T MEMBER These two appeals by assessee are directed against different orders of Commissioner of Income Tax (Appeals)-15, Chennai for the assessment years 2010-2011 and 2011-2012. Since certain issues in these two appeals are common in nature, these appeals are combined, heard together, and disposed of by this common order for the sake of convenience. 2. The first common grounds is with regard to confirming the addition by the Commissioner of Income Tax (Appeals) which was made by the Assessing O .....

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ing to the Assessing Officer, the expenditure relating to exempt income has to be considered for disallowance in view of provision 14A r.w. Rule 8D of the Act. Accordingly, the Assessing Officer computed disallowance u/s14A as per method prescribed in Rule 8D which is as under:- According to clause (i) of Rule 8D No direct expenditure According to clause (ii) of Rule 8D 8,63,34,000 X 670,98,30,500 937,21,17,974 Rs.6,18,09561/- According to clause (i) of Rule 8D 0.5% of 670,98,30,500 Rs.3,35,49,1 .....

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of C 23,82,25,782 constituted 27.75% (23,82,25,000x100 /85,81,74,000) of the total receipts of the assessee. Hence, disallowance according to the provisions of section 14A, is at 20.56% of the total expenditure as against proportionate expenditure of 27.75% in relation to total receipts to be considered in the normal course. 3.2 According to Assessing Officer, there is an excess claim for deduction of expenditure of ₹ 9,53,58,713 and the same needs to be disallowed. It was noted by the AO .....

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nce under sec. 14A is required to be computed with reference to the mandate of section 14A read with rule 8D. Further, he relied on the order of the Tribunal, Delhi, 'F' Bench, in the case of Renaissance Asset Management Co. Pvt.Ltd Vs. Assistant Commissioner of Income Tax, in ITA No.181/Del/2012, was held that any expenditure relatable to investment activity has to be construed as expenses incurred for earning dividend income and the same cannot be allowed as per section 14A, supports t .....

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vert the findings of the Assessing Officer with sufficient evidence giving the reasons for not making disallowance. The ld. Authorised Representative for assessee could not dispute the fact of incurring expenditure towards establishment and administration, which was also consciously involved in making investments. The assessee was earning income from both exempted category of income and non exempted category of income. The exempted category of income consists of 27.75% of the total receipts of t .....

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C35,30,95,000/- and depreciation was C62,33,000/-. No books of accounts were separately maintained for earning dividend income and other incomes which are chargeable to tax. Large part of the expenses incurred were common. The entire top management of the company was fully involved in making strategic decisions and improving the profitability of the company. According to Commissioner of Income Tax (Appeals), therefore, it cannot be said that only few employees were involved in earning the exemp .....

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consists of dividend income as well as other incomes which are chargeable to tax. The quantum of the expenditure on the basis of the proportionate exempted income at the rate of 27% also works out to more than C12.52 crores which is more than the amount disallowed by the Assessing Officer. According to CIT(A), the assessee could not furnish with an evidence like cash flow to prove its claim that no part- of the interest borrowed fund was utilized for investing in subsidiaries which are source o .....

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(appeal) No.681 of 2013 dated 02.12.2013 in the case of Bench Minerals Co. Pvt. Ltd. held at para 11 as under:- "11 - We do not agree with the said submission. The mere fact of availability of 46 crores and odd by itself cannot be taken as furnishing of good explanation as regards the investments. Even with the reserve in surplus figure quoted in balance sheet, we feel that the assessee has the responsibility of explaining the interest expenditure of 4,09,99,104/- 4.1 The Commissioner of In .....

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s also not relevant for making computation of expense under the provisions of sec. 14A of the IT Act. In the instant case, the Assessing Officer was not satisfied with the claim of the assessee that no expenditure was incurred for earning exempt income. Regarding legal position, the CIT(A) relied on the order of the Tribunal, Chennai Bench in the case of Siva Industries & Holding, Ltd. vs. ACIT reported in 54 SOT 49 Chennai(2012), held that even in a year, where no exempt income was earned o .....

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und to determine the expenditure which had been incurred in relation to income which did not form part of the total income. It is further held by the High Court of Bombay that the AO had to enforce the provisions of sub section(1) of Sec.14A even prior to A.Y. 2008-09. This same issue also came up before the Tribunal, Chennai Bench in the case of M/s. Lakshmi Ring Travellers Vs. ACIT, Company Circle I (1), Coimbatore [ITA No.2083(Mds)/ dt. 02.11.2012] for the A.Y. 2008-09 and Hon'ble ITAT at .....

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ich has to be disallowed by force of the statute. In a distant manner, literally speaking, it may even be considered for the purpose of convenience as a deeming provision. When such deeming provision is made on the basis of statutory presumption, the requirement of factual evidence is replaced by statutory presumption and the Assessing Officer has to follow the consequence stated in the statute. It means that even in a case where no expenditure 'is stated to have been incurred, the Assessing .....

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tion 14A(2), read with rule BD cannot be invoked unless the Assessing Officer is satisfied about incorrectness of the disallowance so offered, but when assessee does not offer any disallowance under section 14 A on his own, the provisions of section 14A(2) read with rule 8D can be invoked without there being any need to express satisfaction about incorrectness of such a claim. The facts of the present case are stronger and loaded in favour of revenue. The Hon'ble ITAT,: Mumbai Bench (Special .....

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d, reported in 41 DTR 233, wherein Supreme Court explained the reason for the insertion of Section 14A as follows: The insertion of Section 14A with retrospective effect is the serious attempt on the part of the Parliament not to allow deduction in respect of any expenditure incurred by the assessee in relation to income, which does not form part of the total income under the Act against the taxable income (see Circular No.14 of 2001 dated 22.11.2001). In other words, Section 14A clarifies that .....

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pt income against taxable income and at the same time avail the tax incentive by way of exemption of exempt income without making any apportionment of expenses incurred in relation to exempt income. The basic reason for insertion of Section 14A is that certain incomes are not includible while computing total income as these are exempt under certain provisions of the Act. In the past, there have been cases in which deduction has been sought in respect of such incomes which in effect would mean th .....

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r of Income Tax (Appeals) observed that it was evident from the decision of the Supreme Court of India cited (supra) that only net income is taxable and consequently, the disallowance of expenses incurred u/s 14A with respect to Rule 8D is required to be done with respect to dividend income received or receivable in all the cases irrespective of the nature of business carried on by the assessee. 4.4. The Commissioner of Income Tax (Appeals) observed that no evidence was also furnished before him .....

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ions of sec.14A would not be applicable in the case of the assessee carrying the business of, investments is not legally tenable. The ratio of the decision rendered by Tribunal (Special Bench) in the case of ITO v. Daga Management (P) Ltd. [117 ITO 169] (Mumbai) further held that the provisions of section 14A would be applicable with respect to dividend income earned by the assessee engaged in business of dealing in shares and securities, on shares held as stock-in-trade when earning of the such .....

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he assessee's own case has held that provisions of the section 14A are not attracted. According to Commissioner of Income Tax (Appeals) the stand taken by the assessee on this issue is not factually correct. In fact, the Assessing Officer during the assessment year 2005-06 has computed 2% as the expenditure incurred for earning exempt income and disallowed the same u/s.14A of the I.T. Act. On appeal, the Tribunal in Appeal in ITA No.638/Mds/2012 dated 04.02.2013 in the assessee's own cas .....

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uld be required to decide about the investments, whether to continue or liquidate etc. Investment is a very important part of the assets of the assessee company. Therefore, even though there is no direct mechanical expenditure in realizing the dividend income, definitely some management expenditure has to be attributed towards earning of tax-free dividend income. . 2.9 But in the present case, the investments were so 'old and those investments have been held by the assessee company in a cons .....

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e expenses, pertaining to dividend income and investments in the past year. For the reasons stated in our order for A. Y. 2005-06 in ITA No. 638/Mds/2012, we uphold the disallowance and it is confirmed 4.6 According to Commissioner of Income Tax (Appeals) from the above legal proposition laid by the Tribunal in the assessee s own case in the earlier years, it is clear that Tribunal had in principle upheld the disallowance of expenditure u/s.14A of the I.T. Act. Regarding the applicability of the .....

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required to be done. However, from the A.Y. 2008-09 and onwards, the computation of disallowance under Rule 8D is mandatory as the said Rule 8D was notified in the month of March 2008. This view was taken by Bombay High Court in the case of of M/s Godrej & Boyce. Mfg. Co. Ltd. vs CIT reported in 328 ITR 81. The purpose of investment is not relevant for determination of the quantum of disallowance u/s.14A of the I.T. Act. According to the CIT(A), the provisions of Section 14A are applicable .....

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ated before CIT(A) that if this is taken into account the amount of disallowance works out to C.517,80,237/- as against the amount computed by the AO at C.618,09,561/-. The claim of the assessee is not accepted by Commissioner of Income Tax (Appeals) as the Rule 8D(ii) does not prescribe for exclusion of such expenditure. The Rule 8D(ii) prescribes the quantum of the interest expenditure to be disallowed i.e. amount of expenditure by way of interest other than the amount of interest included in .....

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purpose of computation of quantum of disallowance under Rule 8D, is also rejected by CIT(A) on the reason that the provisions of section 14A are applicable even in case no dividend income was earned in respect of the particular investment which give rise to dividend income. 4.8 According to Commissioner of Income Tax (Appeals) the quantum of the disallowance u/s. 14A worked out by the Assessing Officer is correct. Therefore, placing reliance on the order of Special Bench of Tribunal, Delhi, in .....

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Share and Stock Private Limited, reported in 41 DTR 233, Madras High Court in the cases of M/s. Simpson & Co. Ltd., (supra) M/s. Beach Minerals Company Ltd. cited (supra), he confirmed the order of the Assessing Officer in making the disallowance of C9,53,58,713/- u/s. 14A of the IT Act. Against this, the assessee is in appeal before us. 5. We have heard both the parties. The ld. Authorised Representative for assessee submitted that a similar issue was considered by this Tribunal in the case .....

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shares of Shriram Investments Limited and Shriram Transport Finance Company Limited. Whether the dividends arising out of those shares will be exempted from taxation or not, is entirely a different question. The first thing to be examined is the purpose of investments made by the assessee in shares on the testing ground of commercial expediency . In the present case, the assessee engaged in the business of investing in shares, has made investments in shares of group companies viz., Shriram Inve .....

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her companies are acting as catalysts to boost the performance of those operating companies. 2.5. Viewed in the above perspective, we cannot say that the assessee company has made investments in shares of Shriram Investments Limited and Shriram Transport Finance Company Limited just for the simple purpose of earning tax-free dividend income. As rightly pointed by the assessee, when those investments in shares are liquidated by the assessee company, it is accountable for capital gains taxation. T .....

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terest. This disallowance is accordingly deleted. 2.7. The second issue raised in the appeal is regarding disallowance of 22,98,746/- being 2% of the dividend income earned by the assessee. The assessing authority has disallowed an amount of 22,98,746/- as expenditure attributable to dividend income earned by the assessee. It is the case of the assessee that the disallowance made by the assessing authority works out to 2 lakhs per dividend warrant received by the assessee company. It is also the .....

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concerned about the expenditure by way of remuneration paid to top management and executives. The top management and executives of the assessee company would be required to decide about the investments, whether to continue or liquidate etc. Investment is a very important part of the assets of the assessee company. Therefore, even though there is no direct mechanical expenditure in realizing the dividend income, definitely some management expenditure has to be attributed towards earning of tax-f .....

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there is no question of disallowance u/s. 14A of the Act. In the present case, the assessee made investment in Shriram Retail Holdings Pvt. Ltd alongwith another group company Shriram Enterprise Holdings Pvt. Ltd having controlling interest in Shriram City Union Finance Ltd., a public limited company, whose equity shares are listed in stock exchanges. Similarly Shriram Credit Company Ltd., has controlling interest in M/s. Shriram Insight Share Brokers Ltd. The investments are made to acquire co .....

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quarely applicable to the facts of case wherein the Tribunal observed that when the assessee made an investment in companies on the ground of commercial expediency which are assessee s sister/group companies with the a view to strengthen the capital base and that investment in that company cannot be construed as made for the purpose of earning dividend u/s.14A r.w. Rule 8D. Further, in the case of M/s. J.M. Financial Limited for the assessment year 2009-2010 in ITA No.4521/Mum/2012 vide order da .....

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book filed on behalf of the assessee. We have also considered the various decisions cited before us. In the instant case, the only dispute is regarding determination of disallowance of expenditure for earning tax free dividend income of ₹ 18,17,68,458/- the assessee disallowed on its own ₹ 16.50 lakhs u/s 14A. Despite being asked by the AO to furnish the disallowance under rule 8D, the assessee did not furnish the details. The provisions of rule 8D inserted by the IT (Fifth Amendmen .....

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hold good especially in absence of non-furnishing of details for the purposes of calculation of disallowance at ₹ 16.50 lakhs by the assessee on its own. In this view of the matter and in absence of any distinguishable feature brought to our notice by the learned Counsel for the assessee against the order of the CIT(A), we do not find any infirmity in the same. Accordingly the same is upheld and the ground raised by the assessee is dismissed. 8. As it is clear from the finding of Tribunal .....

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o pointed out that these investments are long term investment and no decision is required in making the investment or disinvestment on regular basis because these investments are strategic in nature in the subsidiary companies on long term basis and, therefore, no direct or indirect expenditure is incurred. We find that the department has not disputed this fact that out of the total investment about 98% of the investment are in subsidiary companies of the assessee and, therefore, the purpose of .....

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o. Ltd. (supra) Hon ble Jurisdictional High Court while dealing with the issue of disallowance u/s 14A and application of Rule 8D has recorded the principles as laid down by the Hon ble Supreme Court in the case of Walfort Share and Stock Brokers P. Ltd. [2010] (326 ITR 1,) in para 31 as under:- (a) The mandate of section 14A is to prevent claims for deduction of expenditure in relation to income which does not form part of the total income. (b) Section 14A(1) is enacted to ensure that only expe .....

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e relationship of the expenditure with income which does not form part of the total income - a disallowance has to be effected. All expenditure under the provisions of the Act has to be disallowed under section 14A Income which does not form part of the total income is broadly adverted to as exempt income as an abbreviated appellation. 9. After considering these principles as emerged from the decision of Hon ble Supreme Court in the case of Walfort Share and Stock Brokers P. Ltd. (supra), Hon bl .....

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Officer, having regard to the accounts of the assessee, is not satisfied with the correctness of the claim of the assessee in respect of such expenditure in relation to income which does not form part of the total income under this Act. (3) The provisions of sub-section (2) shall also apply in relation to a case where an assessee claims that no expenditure has been incurred by him in relation to income which does not form part of the total income under this Act : Provided that nothing contained .....

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he amount of expenditure incurred by an assessee in relation to such income which does not form part of the total income under the Act in accordance with such method as may be prescribed. The method, having regard to the meaning of the expression "prescribed" in section 2(33), must be prescribed by rules made under the Act. What merits emphasis is that the jurisdiction of the Assessing Officer to determine the expenditure incurred in relation to such income which does not form part of .....

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method prescribed by the rules straightaway without considering whether the claim made by the assessee in respect of the expenditure incurred in relation to income which does not form part of the total income is correct. The Assessing Officer must, in the first instance, determine whether the claim of the assessee in that regard is correct and the determination must be made having regard to the accounts of the assessee. The satisfaction of the Assessing Officer must-be arrived at on an objectiv .....

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for taking recourse to the method prescribed by the rules. For, it is only in the event of the Assessing Officer not being so satisfied that recourse to the prescribed method is mandated by law. Sub-section (3) of section 14A provides for the application of sub-section (2) also to a situation where the assessee claims that no expenditure has been incurred by him in relation to income which does not form part of the total income under the Act. Under the proviso, it has been stipulated that nothin .....

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m made by the assessee is correct. 11. The assessee has relied upon various decisions of this Tribunal wherein an identical issue has been considered. In the case of Garware Wall Ropes Limited Vs. Addl. CIT (supra), the Tribunal while deciding an identical issue has held in para 2.4 as under:- We have considered the rival submission and carefully perused the relevant records. So far as the issue regarding disallowance u/s 14A in the case where no dividend has been received, the same is covered a .....

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nce in the contention of the assessee on this point because the investment has been made by the assessee in the group concern and not in the shares of any unrelated party. Therefore, the primary object of investment is holding controlling stake in the group concern and not earning any income out of investment. Further the investment were made long back and not in the year under consideration. Therefore, in view of the fact that the investment are in the group concern we do not find any reason to .....

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has been incurred in relation to the exempt income then principle of apportionment embedded in section 14A has no application. The object of section 14A is not allowing to reduce tax payable on the non exempt income by deducting the expenditure incurred to earn the exempt income. In the case in hand it is not the case of the revenue that the assessee has incurred any direct expenditure or any interest expenditure for earning the exempt income or keeping the investment in question. If there is e .....

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m part of the total income. In the case in hand the assessee has claimed that no expenditure has been incurred for earning the exempt income, therefore, it was incumbent on the AO to find out as to whether the assessee has incurred any expenditure in relation to income which does not form part of the total income and if so to quantify the expenditure of disallowance. The AO has not brought on record any fact or material to show that any expenditure has been incurred on the activity which has res .....

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i Bench of this Tribunal in the case of M/s Oriental Structural Engineers (P) Ltd (supra) which has been confirmed by the Hon ble Delhi High Court vide decision dated 15.01.2013 in para 6.3 as under:- '6.3 We have carefully considered the submissions and perused the records. We find that Ld. Commissioner of Income Tax (Appeals) has given a finding that only interest of ₹ 2,96,731/- was paid on funds utilized for making investments on which exempted income was receivable. Further, Ld. C .....

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loss account for the year, the assessee has shown the turnover from execution of these contracts and therefore no expense and interest attributable to the investments made by the appellant in the PSVs can be disallowed u/s 14A LW. Rule 8D because it cannot be termed as expense/ interest incurred for earning exempted income. Under the circumstances, Ld. Commissioner of Income Tax (Appeals) is correct in holding that disallowance of a further sum ₹ 40,556/- calculated@2%ofthedividend earned .....

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in the absence of any finding that any expenditure has been incurred for earning the exempt income, the disallowance made by the AO is not justified, accordingly the same is deleted. 7. In the case of Interglobe Enterprises Ltd for the assessment year 2008-09 & 2009-10 in ITA No.1362 & 1032/Del/2013, the Tribunal vide order dated 04.04.2014 held as under:- 7. We have heard the rival submissions of both the parties and have gone through the material available on record. First, we take up .....

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e 204A. As regards the first category of shares in the form of investment into subsidiary companies we find that investment into this category of shares had increased from 78.17 lakhs to 101.74 crores which is due to increase in investment in preference shares and other equity shares. During this period, the interest bearing funds had decreased from 1.49 crores to 87,30 lakhs as is apparent from paper book page 203 and further most of the interest bearing loans are for vehicle loans as mentioned .....

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nts and that too into its subsidiaries which is not for the purpose of earning exempt income and which are for strategic purposes only. 8. In view of the above facts, we hold that no disallowance of interest is required to be made under rule 8D(i) & 8D (ii) as no direct or indirect interest expenditure has incurred for making investments. 9. As regards disallowance under Rule 8D(iii) we find that assessee had invested in four debt oriented schemes of DSP Merile Lynch, reliance Liquid Plus, R .....

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ppearing on behalf of the assessees that a narrow meaning ought to be ascribed to the expression "in relation to" appearing in section 14A of the said act. The context does not suggest that a narrow meaning ought to be given to the said expression. It is pertinent to note that the provision was inserted by virtue of the Finance Act, 2001 with retrospective effect from 01/04/1962. In other words, it was the intention of Parliament that it should appear in the statute book, from its ince .....

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ng on 01/04/2001. Furthermore, as observed by the Supreme Court in Walfort (supra), the basic principle of taxation is to tax the net income, i.e., gross income minus the expenditure and on the same analogy the exemption is also in respect of net income. In other words, where the gross income would not form part of total income, it's associated or related expenditure would also not be permitted to be debited against other taxable income. 25. We are of the view that the expression "in re .....

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ainly not the purport of the said provision. The expression in relation to does not have any embedded object. It simply means in connection with or pertaining to . If the expenditure in question has a relation or connection with or pertains to exempt income, it cannot be allowed as a deduction even if it otherwise qualifies under the other provisions of the said Act. In Walfort (supra), the Supreme Court made it very clear that the permissible deductions enumerated in sections 15 to 59 are now t .....

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case of Godrej & Boyce Manufacturing Co. Ltd. observed as under:- In order to determine the quantum of the disallowance there must be a proximate relationship between the expenditure and the income which does not form part of total income. Once such a proximate relationship exists the disallowance has to be affected., All expenditure incurred in the earning of income which does not form part of total income has to be disallowance subject to compliance with the test adopted by Supreme Court .....

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of earning exempt income. The assessee had made significant investments in the shares of subsidiary companies which are definitely not for the purpose of earning exempt income. The Hon'ble Tribunal in I.T.A. No.3349/Del/2011 in the case of Promain Ltd., after relying upon a Kolkatta judgment of Tribunal in I.T.A. No.1331 has held that strategic investment has to be excluded for the purpose of arriving at disallowance under Rule 8D(iii). The Tribunal had relied upon the findings of Kolkatta T .....

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g in taking into consideration the investment of 103 crores made during the year which has not earned any dividend or exempt income. It is only the average of the value of the investment from which the income has been earned which is not falling within the part of the total income that is to be considered. Thus,. It is not the total investment at all beginning of the year and at the end of the year, which is to be considered but it is the average of the value of investments which has given rise .....

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n Rule 8D(2)Iii). This has to be calculated on the same lines as mentioned earlier in respect of Numerator B in the Rule 8D(2)(ii). Thus, not all investments become the subject matter of consideration when computing disallowance u/s 14A read with Rule 8D. The disallowance u/s 14A read with Rule 8D is to be in relation to the income which does not form part of the total income and this can be done only by taking into consideration the investment which has given rise to this income which does not .....

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is warranted. 8. In the case of M/s. Pioneer Radio Training Services Pvt. Ltd for the assessment year 2009-2010 in ITA No. 4448/Del/2013 and C.O.No.11/Del/2014, the Tribunal vide order dated 19.01.2015 observed as under:- 9. We have heard both the counsel and perused the records. We have also gone through the orders of the lower authorities, Synopsis, Paper Book filed by the assessee and the case laws relied upon by the assessee. We find that Ld. CIT(A) has adjudicated the issue as under:- 3. Gr .....

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red as remuneration to the directors or as meeting fee paid to the directors. As per the P&L A/c, the expenditure incurred is basically under four heads of expenses only. The preliminary expense written off was already added back by the appellant in the computation statement and the other head was depreciation. The major expenses incurred are under two heads namely personal expenses and administrative expenses. As per the appellant's AR, the entire personal expense of ₹ 51,12,123/- .....

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e expenses 553923 ROC filing fee 7500 Total expenses 5086380 3.1. As per the appellant's AR, the above. expenses are directly attributable to the appellant's income earned from training as expenses like consultancy charges, entertain/business promotion, traveling/conveyance etc. have nothing to do with the investments made by the company. As per the balance sheet, there are no fresh investments during the relevant assessment year and as per the appellant's AR, the source of these inv .....

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e made by the AO under Rule 8O(2)(iii). Thus, grounds Nos. 1 & 2 are partly allowed as the disallowance of ₹ 50,000/- is sustained. 9.1 In view of the above, we find that Ld. CIT(A) was right to some extent in deleting the disallowance of ₹ 17,27,733/-, but on the other hand we find no basis on which he has sustain the adhoc disallowance of ₹ 50,000/-. In this regard, we find considerable cogency and force in the submissions of the assessee s counsel as discussed above that .....

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hence, there was absolutely no basis for considering a part of such expenditure towards earning of exempt income. In this connection, reliance is placed on Gujarat High Court judgment in the case of CIT vs. Suzion Energy Ltd. 354 ITR 630, in which the Court confirmed the deleting of disallowance u/s 14A in respect of interest expenses incurred for investments in subsidiaries and administrative expense such as staff salary of corporate office, audit fees, building rent and communication expenses .....

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tments Ltd., Mauritius, was formed as a holding company for making downstream investments in cement manufacturing ventures in India. In he return of income filed for the Assessment Year 2007-08, therespondentassessee declared loss of ₹ 8.56 Crores approximately. The respondent-assessee had declared revenue receipts of ₹ 18,02,274/- which included interest of ₹ 726/- from Fixed Deposit Receipts and profit on sale of fixed assets of ₹ 16,52,225/-. As against this, the respo .....

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ncial expenses. 4. In the two assessment orders, the Assessing Officer held that the respondent-assessee had not commenced business activities as they had not undertaken any manufacturing activity or made downstream investments. The respondent-assessee, after receiving approval of Foreign Investment Promotion Board (FIPB) dated 20.12.2000 acquired shares capital of Ambuja Cement India Ltd. This, the Assessing Officer felt, was not sufficient to indicate or hold that the respondent assessee had s .....

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after due approval given by the Government of India, Ministry of Commerce and Industry vide letter dated 18.12.2002 and 20.12.2012. In fact, the respondent-assessee was not to undertake any manufacturing activity themselves. He referred to the FIPB approval vide letter dated 30.03.2005 granted by Government of India, Ministry of Finance permitting them to make investment in Ambuja Cement Ltd. by acquiring majority stake from the earlier shareholders. Thereupon, the respondent-assessee had purcha .....

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sions, I hold that the appellant is engaged in the business of holding of investment is entitled to claim expenditure provided there is a direct connection between expenditure incurred and business of the assessee company. In the instant case. the expenditure incurred is on salaries of employees of the assessee company and other operating expenses of the company. The appellant has also admitted that the said expenditure have been incurred in order to protect their investment as well as explorati .....

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g company for downstream investments and as it was an accepted fact that they had incurred expenses to protect their investments and explore new avenues of investments, the provisions of Section 14A were applicable. The exact reasoning given by the CIT(A) in this regard in respect of the Assessment Year 2007-08 is as under:- 5.8....Thus, as admitted by the appellant; since business of the appellant exclusively is to act as a holding company for downstream investment in order (sic) companies and .....

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the appellant Revenue was asked to elucidate and has stated that the stand of the assessee contained a contradiction to the extent that on the issue of setting up of business, it was stated that the assessee had incurred expenditure on acquiring the shares, therefore, the assessee could not now take a different stand than the one taken in the first issue . (The aforesaid submission has been recorded verbatim). 9. The said statement has left us equally confused and perplexed. Is it the Revenue[1 .....

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ed , no disallowance under Section 14A was warranted. The CIT(A) relied on the decision of Special Bench of the Tribunal (Delhi) in the case of Cheminvest Ltd. Vs. ITO., [2009] 317 ITR (A.T.) 86. Reference was made to Maxopp Investment Ltd. Vs. CIT, [2012] 347 ITR 272 to observe that Rule 8D of the Income Tax Rules, 1962 was not applicable in the assessment year 2007-08. Judgment of the Bombay High Court in Godrej and Boyce Manufacturing Co. Ltd.Vs. DCIT, [2010] 328 ITR 81 was also quoted. As pe .....

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ficer would have to determine the amount of expenditure incurred in relation to the income which did not form part of the total income and the said basis had to be reasonable and based on the acceptable method of apportionment. Expounding the expression in relation to appearing in Section 14A as interpreted in Maxopp Investment Ltd. (supra), the CIT(A) held that the said expression could not be given a narrow meaning. The expression in relation to would include in connection with or pertaining t .....

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utilized any borrowed funds for making such investment and hence, no expenses on account of interest had been debited and claimed. It has been also contended that in absence of any clear finding or nexus between expenses incurred and exempt income or without bringing on record, specific material, no adhoc disallowance under section 14A of the Act is warranted. This contention raised by the appellant is unfound for the reason that they are based on contradiction. When it comes to the claim of ex .....

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the appellant, I am satisfied that the expenditure has been incurred by the appellant company in relation to investments which gives rise to income which does not form part of total income. 5.14 Thus from the above discussions, I am of the considered view that once the business of the appellant is of holding investment then it has to be held that in view of specific provisions contained in Section 14A and despite the fact that there is no exempt income that expenditure incurred was for holding a .....

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rred by the appellant is dismissed . 11. The CIT(A) did not refer to the factual matrix in his order for the assessment year 2008-09 but applied his earlier order dated 02.08.2012 for the Assessment Year 2007-08. We may note that for the Assessment Year 2008-09, Rule 8D as per the decision in the case of Maxopp Investment Ltd. (supra) is applicable. The said Rule was not invoked. The reasoning given by the CIT(A) reads thus: "4....While deciding the appeal for A.Y. 2007-08, vide my order da .....

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er dated 01.08.2012 vide which I have adjudicated the appellant's appeal for assessment year 2007-08, I hold that in the year under consideration also that no disallowance can be made on account of noncommencement of business. However the addition of ₹ 7,02,54,564/- is to be made on account of disallowance u/s 14A because the appellant has admitted time and again that their main business activity is to act as a holding company for downstream investment in other companies which are enga .....

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specifically recorded that the business had been set up. We note that the Revenue did not prefer any appeal or file cross-objection against the finding on the question whether the business had been set up. The Tribunal specifically noticed that the CIT(A) did not make disallowance on the ground that the respondent-assessee had invested in the shares for earning of the dividends but, on the ground that the respondentassessee had acquired controlling interest in the respective companies and this w .....

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Standing Counsel for the Revenue, to state in his own words, their stand before us. During the course of hearing, the submission raised was that the shares would have yielded dividend, which would be exempt income and therefore, the CIT(A) had invoked Section 14A to disallow the entire expenditure. The aforesaid submission does not find any specific and clear narration in the reasons or the grounds given by the CIT(A) to make the said addition. Possibly, the CIT(A), though it is not argued befor .....

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evenue. No contrary decision of a High Court has been shown to us. The Punjab and Haryana High Court in Commissioner of Income Tax, Faridabad Vs. M/s. Lakhani Marketing Incl., ITA No. 970/2008, decided on 02.04.2014, made reference to two earlier decisions of the same Court in CIT Vs. Hero Cycles Limited, [2010] 323 ITR 518 and CIT Vs. Winsome Textile Industries Limited, [2009] 319 ITR 204 to hold that Section 14A cannot be invoked when no exempt income was earned. The second decision is of the .....

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respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. Hence, what Section 14A provides is that if there is any income which does not form part of the income under the Act, the expenditure which is incurred for earning the income is not an allowable deduction. For the year in question, the finding of fact is that the assessee had not earned any tax free income. Hence, in the absence of any tax free income, the correspond .....

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ot be taxable, may depend upon the nature of transaction entered into in the subsequent assessment year. For example, long term capital gain on sale of shares is presently not taxable where security transaction tax has been paid, but a private sale of shares in an off market transaction attracts capital gains tax. It is an undisputed position that respondent assessee is an investment company and had invested by purchasing a substantial number of shares and thereby securing right to management. P .....

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ducting business. The CIT(A) has positively held that the business was set up and had commenced. The said finding is accepted. The respondent-assessee, therefore, had to incur expenditure for the business in the form of investment in shares of cement companies and to further expand and consolidate their business. Expenditure had to be also incurred to protect the investment made. The genuineness of the said expenditure and the fact that it was incurred for business activities was not doubted by .....

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the assessee and against the Revenue. Respectfully following the above precedent, we dismiss the Appeal of the Revenue and allow the Cross Objection filed by the Assessee. 9. Further, in the case of Piem Hotels Limited for the assessment years 2006-07, 2007- 2008 & 2008-09 in ITA Nos. 240, 241 & 850/Mum/2012, the Tribunal vide order dated 20.03.2015 observed as under:- 5.We have heard the rival submission and perused the material before us. We find that while deciding the appeal for the .....

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made investment are in the same business or in the business related with the hotel industries. It is a fact the AO has not pinpointed as to what was the expenditure that was incurred by the assessee for earning tax free income. Incurring of expenditure by an assessee, is the precondition for making disallowance u/s.14A of the Act. The logic behind introducing the section was that the assessee should not claim or get two deductions-.i.e. offering no tax exempt income on one hand and claiming expe .....

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and does not indicate the incurring of expenditure. The word may leave the door open. In the case of J.M. Finance (supra),to which one of us was the party, it has been held that if no expenditure was incurred for earning tax free income no disallowance should be made. It is said that fact of each case are different so, without highlighting the facts of that case no addition should be made on the basis of general presumption. The FAA in the present case, had held that the every assessee would ke .....

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he facts of earlier two AY.s. were different from the facts of the year consideration. In the case of Aroni Commerci - als Ltd.(362ITR403)the Hon ble Bombay High Court has held as under: Though the principle of res judicata is not applicable to tax matters as each year is separate and distinct ,nevertheless where facts are identical from year to year, there has to be uniformity and in treatment. Hon ble jurisdictional High Court in the case of Gopal Purohit (336ITR287)has held that that there sh .....

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FAA. Effective ground of appeal raised by the assessee for the year under consideration, is allowed in its favour. ITA/850/Mum/2012-AY.2008-09. 6.The facts of the case under consideration are similar to the facts of earlier year-the only difference is of disallowance made. The AO had made disallowance of ₹ 6.19 Lakhs for the year under appeal as against the disallowance of ₹ 6.55 lakhs made for the earlier year. Following our order for the earlier year, we decide the effective ground .....

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e expenses. Applying the provisions of Rule 8D of the Income-tax Rules, 1962 the AO made a disallowance of ₹ 7.16 Lakhs. During the appellate proceedings, the FAA after considering the submission of the assessee upheld the order of the AO. We find that the assessee itself had made disallowance of interest expenditure and part of administrative expenses for the year under consideration. As the facts and circumstances of the matter are almost similar to the facts of earlier two assessment ye .....

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olling internal in these companies and strengthen the capital base and liquidity base of these companies. Thus in the group companies, the assessee company have controlling interest in Shriram City Union Finance Ltd, a public limited company whose equity shares are listed in stock exchange. Shriram Credit Company Ltd has controlling interest in M/s.Shriram Insight Share Brokers Ltd. These facts were not contradicted by the Department and finally these facts will definitely enhance the profitabil .....

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cannot rule out the incurring of management expenses by the assessee to earn exempt income and considering this aspect, we are inclined to direct the Assessing Officer to disallow 15 lakhs for each assessment year. In the result, this ground of the assessee is partly allowed in both appeals. 11. The next ground in ITA No.512/Mds/2015 is with regard to confirming the addition by Commissioner of Income Tax (Appeals) made by the Assessing Officer under the head providing access to branch network o .....

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ovide access to their branch network and agency force. It was the plea of the assessee before the Assessing Officer that these payments by themselves do not entitle assessee or its nominees to get any service free of cost. The Chit companies are not obliged to provide any service free of cost to assessee or its nominees. It has to pay for services if they avail of any services. The payments made by assessee was only for ensuring that the chit companies shall provide services and the details for .....

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keep its branch network in act and ready for use, whenever requested for by assessee or its nominees. 12.1 Further, it was submitted by the assessee before AO that the assessee holds 74% of shares Shriram Life Insurance Company (SLIC) and Shriram General Insurance Company (SGIC) and the three chit fund companies to whom amounts were paid, has vast network of branches, agency force and information, which are beneficial for SLIC and SGIC, and on account of these payments, the three chit fund comp .....

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angalore and Shriram Chits Private Limited, Hyderabad are engaged in the business of Chit funds and has a vast net work of branches and agency force. 12.3 It was submission of the assessee before the AO that the above amount was paid to the 3 Chit Companies viz Shriram Chits Tamilnadu Private Limited, Shriram Chits (Karnataka) Private Limited, Bangalore and Shriram Chits Private Limited, Hyderabad to keep the branch network of the three chit companies intact and ready to use whenever requested f .....

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see s business. According to assessee in the earlier year, a similar claim made has been allowed by the Assessing Officer only after consideration of all these facts and circumstances. The three chit companies have accounted for the amount paid by the assessee company as revenue receipt only in their books of accounts and offered for taxation. 12.5 In view of the above, the assessee took a plea before the AO that the above expenditure incurred by the assessee is not Capital Expenditure. By this .....

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and treated it as capital expenditure and disallowed the same. 12.7 Against this, the assessee carried the appeal before the Commissioner of Income Tax (Appeals). 13. The ld. Commissioner of Income Tax (Appeals) observed that the assessee company entered into an agreements with Shriram Chits Private Ltd, Hyderabad, Shriram Chits (Karnataka) Private Limited, Bangalore and Shriram Chits Tamil Nadu Private Limited, Chennai on 01.12.2008 for doing the Life insurance business in India on the represe .....

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as paid for the right of access to entire branch network of the chit fund, companies for a period of 10 years. The chit fund companies have a wide network in the state of Tamilnadu, Karnataka and Andhra Pradesh as stated by the assessee, The nature of assets such as obtaining of right to access the branch network of chit fund companies is an intangible asset. The right of access to the entire network branch and agency force both present and future owned by chit fund companies was made available .....

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The network was already owned by chit fund companies. The assessee company acquired the right to access the network of the subsidiary companies for a period of 10 years by way of agreements executed on 01.12.2008. The Sunlan Life Insurance Ltd. and Sunlan Ltd. have recognized that the assessee company possessed the established brand but the assessee company did not have branch network to distribute its various financial products. Therefore, the assessee company acquired the right of access to t .....

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r the expenditure incurred for acquiring intangible asset was a capital or a revenue expenditure. Therefore, Commissioner of Income Tax (Appeals) of the considered view that the nature of the claim of expenditure incurred by the assessee is not a revenue expenditure but a capital expenditure for acquiring an intangible asset like business or commercial right to access the network of its subsidiaries and associates. According to the Commissioner of Income Tax (Appeals) this intangible right was a .....

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et of facts and the issue was not under consideration of sec.32(1)(ii) and Explanation 3 of the IT Act. The issue under consideration is whether right of access is a intangible asset and whether such right was acquired by the assessee for use of 10 years for a specified consideration in view of the specific provision in the law u/s 32(1)(ii) and Explanation 3 of the IT Act. In view of the specific facts the case, the CIT(A) observed that the nature of expenditure of C.58 crores incurred by the a .....

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iram Chits (Karnataka) Private Limited, Bangalore and Shriram Chits Tamil Nadu Private Limited Chennai on 01.12.2008 for doing the life insurance business in India on the representation of the assessee company. The terms of the agreements entered by the assessee with three companies were identical. By virtue of entering of three agreements the assessee company was required to pay a total consideration of C58 crores and payment was made in two instalments i.e C33 crores during the A.Y. 2009-2010 .....

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assessee company i.e. SCL for a period of 10 years and consideration was paid towards acquiring right to access to the network. This particular right was acquired by the assessee company vide agreements dated 01.12.2008. The benefit for the use of the right extends over a period of 10 years. The issue here is not about creation of network. The network was already owned by chit fund companies. The assessee company acquired the right to access the network of the subsidiary companies for a period .....

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right of access to network of the chit fund companies for a period of 10 years was granted to the assessee for a specified consideration. The consideration was required to be paid in 2 instalments in the financial year 2008-09 and also financial year 2009-10. The manner of payment is not relevant for deciding whether the expenditure incurred for acquiring intangible asset was a capital or a revenue expenditure. Therefore, Commissioner of Income Tax (Appeals) of the considered view that the natur .....

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sioner of Income Tax (Appeals) that the expenditure incurred towards right of access to data as capital expenditure on the reason that consideration was paid for the purpose of acquiring of right of access to entire branch network of the chit fund companies for the period of ten years. In our opinion, the payment in a lump sum which is for a period of ten years does not necessarily make the payment a capital one. It may still possess Revenue character in the same way as a series of payments. If .....

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ure of a revenue character. Further, income tax law does not allow all the deduction as expenses, which a prudent trader would make in computing its profits. The money may expend on grounds of commercial expediency but not of necessity. The test of necessity is whether the intention was to earn trading receipts or to avoid future recurring payments of a revenue character. Expenditure in this sense is equal to disbursement which, to use a homely phrase, means something which comes out of the trad .....

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er. Thus in our opinion payment in lump sum cannot be a reason to treat as capital expenditure and disallowed the same. If the expenditure is incurred for the purpose of business, is made possible as obligation and there is possibility that such made necessary in view that expenditure cannot be held as enduring benefit. 16. We have to see the nature of liability of net value of the payment and whether the expenditure is capital or revenue which is wholly and exclusively used for the purpose of b .....

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d vs. CIT 86 ITR 11(SC). In our opinion, the businessman is only the best judge to determine the business expediency and therefore when he claims that he has incurred certain expenditure for the business expediency, his version is ordinarily be accepted. Further, it does not mean that the Assessing Officer cannot be entitled to enquire or investigate as to whether the said expenditure was actually incurred by the businessman. If it is incurred wholly and exclusively for business consideration, a .....

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disclosed by the assessee and claimed it as revenue expenditure. In the instant case, insofar as payment for getting domestic customer database is concerned, it was clear that, assessee had only got right to use that database; the company which has provided such database was not precluded from using such database. Hence, the expenditure incurred was for the use of database and not for acquisitions of such database. 17.2 In the case of Wipro GE Medical Systems Ltd. vs. Deputy Commissioner of Inco .....

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te package covering even the employees who were manning the medical diagnostic equipment division and approximately 2/3rd of the total strength of that division aggregating to 150 in number were taken over by the assessee and to the extent remaining 69 employees the assessee and GE together contributed C45 lakhs as subsidy for the employees who were to be allowed to voluntarily retire from service. By terminating the employees of the erstwhile company and paying compensation thereof, the assesse .....

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cess to information base and for transition of customer order filing this payment again, is for business consideration and it cannot be accepted that the amount was paid for obtaining information useful for a long period and that the same could be treated as plant. There is no question of acquisition of any asset when the assessee made the payments and acquired the information about the customer base. That will help the assessee to carry on its business very efficiently and in a more profitable .....

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Basically, the expenditure would be capital in nature if it is made with a view to bring into a profit making asset or business advantage which resulted in bringing enduring benefit. The purpose of incurring the expenditure is to be seen if the expenditure is incurred with a view to bring into existence an asset or advantage for enduring benefit of the business it would, unless the circumstances show otherwise, be in the nature of a capital expenditure. The quantum of the expenditure cannot be r .....

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ion or for acquiring or bringing into existence an asset or advantage of an enduring benefit to the business i.e. being carried on, or for existence of the business i.e. going on, or for a substantial replacement of an existing business asset it would be capital expenditure. ii) If on the other hand, the expenditure, although for the purpose of acquiring an asset or advantage is for running of the business or for working out that asset with a view to produce profit, it would be revenue expenditu .....

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ited period and what is acquired is not an asset or advantage of an enduring nature and at the end of the agreed period that advantage or asset reverts back to the giver of that special knowledge or owner or patent or trade mark it would be expenditure of revenue nature. v) If it is intrinsically a capital asset, it is immaterial whether the price for it is paid once and for all or periodical or whether it is paid out of capital or income or linked up with the net sales. The out going in such a .....

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ch the payment is made or the sources of such payment. viii) If the expenditure is recurring and incurred during the course of business or manufacturing it would be revenue expenditure. ix) An asset or advantage of an enduring nature does not mean that it may last for ever. If the capital asset, in its nature, a short lived one, the expenditure incurred over it does not, for that reason, cease to be a capital expenditure. x) It is not the law that if an enduring advantage is obtained the expendi .....

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eveloped by incurring that expenditure and even the accounting treatment given by the assessee cannot be conclusive to treat expenditure as capital. In this case, expenditure for the purposes of access to data relating to business of the assessee so as to increase the Business of the assessee. This expenditure stands incurred for the purpose of running the business. It is not per se capital in nature. By incurring this expenditure, it cannot be said that any capital asset stands acquired by the .....

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ee has treated it as Revenue expenditure only. As such, there is no force in the argument of the ld. DR that the expenditure shall be always treated as capital expenditure. As the expenditure has not resulted in capital asset, so has to be recorded as expenditure in capital field. It should be noted that the assessee had to incur this kind of expenditure year after year so as to be in business subsequently even the advantage secured from earlier expenditure would get dissipated. Further, we plac .....

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. 19. Further total payment made by assessee is C58 crores, C33 crores for assessment year 2009-10 and C25 crores for assessment year 2010-2011 and payment of C33 crores is subject matter of dispute. In the assessment year 2009-2010, the Assessing Officer allowed the claim of C33 cores as Revenue Expenditure. This was a subject matter of proceeding u/s.263 of the income by the Commissioner of Income Tax and the Commissioner of Income Tax vide order dated 18.02.2014 observed as under:- (1) The as .....

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e as revenue without verification . 3.2 The Ld. CIT further opined that :- (i) The assessee company had substantial interest in M/s. Shriram Life Insurance Co. Ltd and M/s. Shriram General Life Insurance Ltd. and the expenditure incurred towards the same is not the business expenditure of the assessee company. (ii) The amount paid to the three chit companies mentioned herein above was in lieu of the rights for obtaining services over a period of ten years. (iii) The assessee company had entered .....

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ansaction is nothing but contractual in nature. The assessee company has not deducted the tax deductible at source as per the provisions of Section 194C of the Act. As per the provisions of 40(a)(ia), if the TDS liable to be deductible is not deducted by the assessee, then the expenditure has to be disallowed and the same can be allowed as expenditure only in the year in which, the assessee deducts tax at source as per the provisions of Income Tax Act. Accordingly, the expenditure of 33 crores c .....

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ted 02.1.2015 by observing that 5.1. We have heard both the parties and carefully perused the materials available on record. From the above facts, we find that the Ld.CIT had made several observations based on the materials which have already been examined by the Ld. Assessing Officer while passing the assessment order. Having made such observations the Ld.CIT had finally concluded as follows:- (i) The nature of transactions amounts to contractual obligations (ii) The assessee company did not de .....

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essing Officer. Though he has made several observations, there were no other findings other than, non deduction of tax at source and applicability of Section 40(a)(ia) of the Act. The Ld. A.R. during the course of proceedings before the Ld.CIT had submitted the letters from the recipients of the payments from the assessee company wherein they have stated that they had declared the amount received from the assessee as their income and paid the tax duly. The amended second proviso to Section 40(a) .....

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Ld. Assessing Officer had passed the order without application of mind. He has considered all these facts and had consciously decided the matter. From the above facts, it appears that the Ld.CIT has passed the order U/s.263 based on difference of opinion and by reviewing the issue which was already decided by the Ld. Assessing Officer. Moreover, it is pertinent to mention at this juncture that the decision rendered in the case of Merilyn Shipping and Transports Vs. Additional CIT in 16 ITR (Tri .....

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ts and the discussions mentioned herein above, we are of the considered view that the Ld.CIT has erred in setting aside the order of the Ld. Assessing Officer by invoking Section 263 of the Act and directing the Ld.A.O to re-do the assessment of the assessee for the Assessment year 2009-10. Therefore, we hereby quash the order passed by the Ld.CIT U/s.263 of the Act. 6. In the result, the appeal of assessee is allowed. 19.2 Thus, it means for the assessment year 2009-2010, the same issue was con .....

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e impugned expenditure as revenue expenditure and it has to be allowed though it was not subject to TDS. 19.3 Further, it is also brought to our notice that the Commissioner of Income Tax (Appeals), while disposing the appeal for the assessment year 2010-2011, made an observation that the Assessing Officer is at liberty to take remedial measures after following the due process of law for claim of C33 crores as deduction for the assessment year 2009-2010. It is to be here noted that the Commissio .....

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01.2015, the Commissioner of Income Tax (Appeals) not justified in giving such direction. Accordingly, we expunge the above observations by placing reliance on the order of the coordinate bench in the case of Sun Metal Factory (I) (P) Ltd vs. ACIT, 124 ITD 14, wherein held that The appellant authority can give findings and directions only in respect of year/period which is before that authority and no direction or finding can be given in respect of other years. The Commissioner of Income Tax (Ap .....

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ent. Asst. CIT vs. Rajaram & Brothers (2005) 193 CTR (MP) 248; (2005) 274 ITR 122 (MP) followed; CIT & Anr. Vs. Foramer France (2003) 185 CTR (SC) 512; (2003) 264 ITR 566 (SC), CIT vs, Banwarilal & Sons (P) Ltd, ( 2002) 175 CTR (Del) 124; (2002) 257 ITR 518 (Del), ITO vs. Murlidhar Bhagwan Das (1964) 52 ITR 335 (SC), Pt. Hazari Lal vs. ITO (1960) 39 ITR 265 ( All),Raj Kishore Prasad vs. ITO (1990) 88 CTR (All) 152; (1992) 195 ITR 438 (All) and Abdul Wahid Gehlot vs. ITO (2005) 93 TTH .....

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