Just a moment...

Top
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 Case Laws - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
  • Title Only
  • Head Notes
  • Citation
Party Name: ?
Party name / Appeal No.
Law:
---- All Laws----
  • ---- All Laws----
  • GST
  • Income Tax
  • Benami Property
  • Customs
  • Corporate Laws
  • Securities / SEBI
  • Insolvency & Bankruptcy
  • FEMA
  • Law of Competition
  • PMLA
  • Service Tax
  • Central Excise
  • CST, VAT & Sales Tax
  • Wealth tax
  • Indian Laws
Courts: ?
Select Court or Tribunal
---- All Courts ----
  • ---- All Courts ----
  • Supreme Court - All
  • Supreme Court
  • SC Orders / Highlights
  • High Court
  • Appellate Tribunal
  • Tribunal
  • Appellate authority for Advance Ruling
  • Advance Ruling Authority
  • National Financial Reporting Authority
  • Competition Commission of India
  • ANTI-PROFITEERING AUTHORITY
  • Commission
  • Central Government
  • Board
  • DISTRICT/ SESSIONS Court
  • Commissioner / Appellate Authority
  • Other
Situ: ?
State Name or City name of the Court
Landmark: ?
Where case is referred in other cases
---- All Cases ----
  • ---- All Cases ----
  • Referred in >= 3 Cases
  • Referred in >= 4 Cases
  • Referred in >= 5 Cases
  • Referred in >= 10 Cases
  • Referred in >= 15 Cases
  • Referred in >= 25 Cases
  • Referred in >= 50 Cases
  • Referred in >= 100 Cases
From Date: ?
Date of order
To Date:
TMI Citation:
Year
  • Year
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002
  • 2001
  • 2000
  • 1999
  • 1998
  • 1997
  • 1996
  • 1995
  • 1994
  • 1993
  • 1992
  • 1991
  • 1990
  • 1989
  • 1988
  • 1987
  • 1986
  • 1985
  • 1984
  • 1983
  • 1982
  • 1981
  • 1980
  • 1979
  • 1978
  • 1977
  • 1976
  • 1975
  • 1974
  • 1973
  • 1972
  • 1971
  • 1970
  • 1969
  • 1968
  • 1967
  • 1966
  • 1965
  • 1964
  • 1963
  • 1962
  • 1961
  • 1960
  • 1959
  • 1958
  • 1957
  • 1956
  • 1955
  • 1954
  • 1953
  • 1952
  • 1951
  • 1950
  • 1949
  • 1948
  • 1947
  • 1946
  • 1945
  • 1944
  • 1943
  • 1942
  • 1941
  • 1940
  • 1939
  • 1938
  • 1937
  • 1936
  • 1935
  • 1934
  • 1933
  • 1932
  • 1931
  • 1930
Volume
  • Volume
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
TMI
Example : 2024 (6) TMI 204
By Case ID:

When case Id is present, search is done only for this

Sort By: ?
Even if Sort by Date is selected, exact match will be shown on the top.
RelevanceDate
    No Records Found
    ❯❯
    MaximizeMaximizeMaximize
    0 / 200
    Expand Note
    Add to Folder

    No Folders have been created

      +

      Are you sure you want to delete "My most important" ?

      NOTE:

      Case Laws
      Showing Results for :
      Reset Filters
      Results Found:
      AI TextQuick Glance by AIHeadnote
      No Records Found

      Case Laws

      Back

      All Case Laws

      Showing Results for :
      Reset Filters
      Showing
      Records
      ExpandCollapse
        No Records Found

        Case Laws

        Back

        All Case Laws

        Showing Results for : Reset Filters
        Case ID :

        📋
        Contents
        Note

        Note

        Note

        Bookmark

        print

        Print

        Login to TaxTMI
        Verification Pending

        The Email Id has not been verified. Click on the link we have sent on

        Didn't receive the mail? Resend Mail

        Don't have an account? Register Here

        Tribunal upholds CIT(A)'s decisions, dismissing Revenue's appeal. Section 14A disallowance deleted, Section 2(22)(e) addition rejected.

        DCIT, Central Circle-29, New Delhi Versus M/s Gen X Commodities (P) Ltd.

        DCIT, Central Circle-29, New Delhi Versus M/s Gen X Commodities (P) Ltd. - TMI Issues Involved:
        1. Disallowance under Section 14A read with Rule 8D of the Income Tax Rules.
        2. Addition under Section 2(22)(e) of the Income Tax Act as deemed dividend.
        3. Recasting of ledger account and its correctness.
        4. Holding that the sale of silver recorded in the diary seized is duly accounted for in the books/cash sale.

        Issue-wise Detailed Analysis:

        1. Disallowance under Section 14A read with Rule 8D of the Income Tax Rules:
        The Assessing Officer (AO) observed that the assessee had substantial investments in shares, which could generate tax-free dividend income. Despite not earning any exempt income, the AO applied the provisions of Section 14A read with Rule 8D, disallowing Rs. 1,42,80,173/- on the grounds that expenses claimed in the Profit & Loss Account were related to such investments. The CIT(A) deleted this disallowance, stating that since no exempt income was received during the year, Section 14A was not applicable. This was supported by various judicial precedents, including the Hon'ble Supreme Court's decision in PCIT vs Oil Industries Development Board and CIT vs M/s Chettinad Logistics Pvt. Ltd., which held that in the absence of exempt income, no disallowance under Section 14A can be made. The Tribunal upheld the CIT(A)'s decision, finding no infirmity in the deletion of the disallowance.

        2. Addition under Section 2(22)(e) of the Income Tax Act as deemed dividend:
        The AO made an addition of Rs. 91,47,56,196/- under Section 2(22)(e), treating payments received from Jaypee Capital Services Pvt. Ltd. (JCPL) as deemed dividends. The CIT(A) deleted this addition, concluding that the transactions were business-related and not loans or advances. The CIT(A) noted that JCPL was a broker dealing in shares, currency, and derivatives, and the transactions with the assessee were regular business transactions. This conclusion was supported by the CBDT Circular No. 19/2017 and various judicial decisions, including CIT vs Creative Dyeing & Printing Pvt. Ltd., which clarified that advances in the nature of commercial transactions do not fall under deemed dividends. The Tribunal upheld the CIT(A)'s decision, agreeing that the transactions were in the ordinary course of business and not loans or advances.

        3. Recasting of ledger account and its correctness:
        The AO recast the ledger accounts, considering only cheque payments as loans/advances, while ignoring business transactions. The CIT(A) criticized this approach, stating that it did not reflect the correct nature of the accounts. The CIT(A) emphasized that the transactions were part of regular business activities and should not be considered loans or advances. The Tribunal agreed with the CIT(A), noting that the AO's method was incorrect and that the transactions should be viewed in their entirety.

        4. Holding that the sale of silver recorded in the diary seized is duly accounted for in the books/cash sale:
        This issue was not elaborately discussed in the judgment, but the CIT(A) held that the sale of silver recorded in the seized diary was duly accounted for in the books/cash sale. The Tribunal did not find any reason to disturb this finding.

        Conclusion:
        The Tribunal dismissed the Revenue's appeal, upholding the CIT(A)'s decisions on all issues. The disallowance under Section 14A was deleted due to the absence of exempt income, and the addition under Section 2(22)(e) was deleted as the transactions were regular business transactions. The recasting of ledger accounts by the AO was found to be incorrect, and the sale of silver was considered duly accounted for. The Tribunal's decision was pronounced in open court on 27/07/2021.

        Topics

        ActsIncome Tax
        No Records Found