Ladderup Finance Limited vs. Circle 14(1)(1), Mumbai

Parties Involved

Facts Summary

The assessee, Ladderup Finance Limited, is a company engaged in investment and finance and financial and management consultancy. It filed its return of income for the year 2015-16 declaring a total income of Rs. 73,59,060/-. The case was selected for limited scrutiny under CASS due to large short-term capital gains, receipt of large value foreign remittance, and sale of property. During the assessment, the Assessing Officer noted dividend and long-term capital gains claimed as exempt and made disallowances under section 14A and Rule 8D. The assessee challenged these disallowances and additions before the CIT(A), which were dismissed. The assessee then appealed to the Tribunal on several grounds, primarily concerning the scope of limited scrutiny and the disallowances made.…

Legal Issues

• 1. Whether the assessment order passed by the Assessing Officer is without jurisdiction, invalid, bad-in-law, and against the principles of natural justice.
• 2. Whether the CIT(A) erred in invoking section 14A read with Rule 8D and sustaining the disallowance.
• 3. Whether the CIT(A) erred in confirming the application of Rule 8D by the Assessing Officer.
• 4. Whether the CIT(A) erred in upholding the addition made by the Assessing Officer to the Book Profit computed under section 115JB.
• 5. Whether the CIT(A) erred in confirming the disallowance under section 36(1)(iii).

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Kuntal Hasmukhlal Shah Vs. ACIT-4(1)(1)

  J(SMC) BENCH MUMBAI benchAY 2017-18Allowed

• Galax Mineral Pvt. Ltd. Vs. DCIT

  Delhi Bench ‘B’ benchAY 2015-16Allowed

• Lucky Nirmaan Pvt. Ltd. vs. ITO, Ward-6(2), Kolkata

• Maithan Alloys Ltd. Vs. DCIT, Cir.1(1)

  Kolkata Bench benchAY 2011-12 & 2014-15Partly Allowed

• Dhanuka Laboratories Ltd. Vs. ACIT

• Veedol Corporation Limited Vs. DCIT, Circle 4(1)