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1 - 9 of 9 (0.27 seconds)Commissioner Of Income Tax Alw vs M/S Vijay Solves Ltd. Alwar on 4 October, 2016
In view of the above, additions of Rs. 10,56,769/- made by the ld. AO
and sustained by the ld. CIT (A) deserves to be deleted."
4.2. On the contrary, the ld. D/R opposed the submissions.
4.3. We have heard rival contentions, perused the material on record and gone
through the orders of the authorities below. After considering the submissions of the
assessee, we find that the assessee was having sufficient own funds as reflected in
the capital account of the assessee as on 31.03.2008 so as to make investment for
purchase of shares of other companies and generate exempt income. The ld.
Counsel for the assessee placed reliance on the various pronouncements of various
Hon'ble High Courts in support of his contention. He also drew our attention to the
judgment of Hon'ble Jurisdictional High Court in the case of CIT vs. Vijay Solvex Ltd.
(2015) 59 taxmann.com 294 (Raj.HC) wherein it has been held as under :-
Cit-Iii vs Sharada Erectors Pvt. Ltd on 28 March, 2014
CIT vs. Vijay Solvex Ltd. (2015) 59 taxmann.com 294 (Raj.HC)
CIT vs. Sharada Erectors P. Ltd. (2016) 76 taxmann.com 107
(Bom.HC)
CIT vs. R.L. Kalthia Engineering & Automobiles P Ltd.
(2013) 33 taxmann.com 14 (Gujarat HC).
Section 7 in The Income Tax Act, 1961 [Entire Act]
Section 69A in The Income Tax Act, 1961 [Entire Act]
Section 132 in The Income Tax Act, 1961 [Entire Act]
Cheminvest Limited vs Commissioner Of Income Tax-Vi on 2 September, 2015
Cheminvest Ltd. vs. CIT (2015) 378 ITR 33 (Delhi HC)
Selvel Advertising P. Ltd. (2015) 37 ITR 611 (Kol.Trib.)
3.7. Section 14A disallowance can be made only if exempt
income in the form of dividend is received. In the case at hand, no
dividend income has been received by the assessee during the relevant
previous year. The said fact has also been acknowledged by the ld. CIT
(A) in her order at para 6.3(ii) page 10. Under such scenario, no
disallowance under section 14A can be made. Reliance is placed on the
following judicial pronouncements :-
Section 153A in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income Tax-Iv vs Holcim India P. Ltd. on 5 September, 2014
CIT vs. Holcim India (P) Ltd. (2014) 272 CTR 282 (Delhi)
CIT vs. Shivam Motors (P) Ltd. (2014) 272 CTR 277 (Allahabad)
CIT vs. Lakhani Marketing Inc. (2014) 272 CTR 265 ( P&H)
CIT vs. Corrtech Energy P. Ltd. (2015) 372 ITR 97 (Gujarat)
3.8. Even otherwise, as the assessee's own funds are greater than
the borrowed fund, no disallowance can be made under section
7
ITA No. 475/JP/2014
Shri Udai Kant Mishra, Jaipur.
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