291 ITR 214 (Gauhati), Gaurikanta Barkataky v. Commissioner of Income-tax

Dy CIT CC 4 (1), Mumbai vs. M/S Kanakia Spaces Pvt Ltd., Mumbai

The appeal of the revenue is dismissed

Bench: Shri S.Rifaur Rahman () & Shri Ravish Sood () Dy. Commissioner Of Income Tax, M/S Kanakia Spaces Pvt. Ltd. Central Circle – 4(1), Vs. 10Th Floor, 215 Atrium, Andheri Room No. 1918, 19Th Floor, Kurla Road, Andheri (E) Air India Building, Nariman Point, Mumbai – 400 059 Mumbai – 400 021 Pan No. Aaack2629J (Revenue) (Assessee) Assessee By : Shri Anuj Kisnadwala, A.R Revenue By : Shri Gurbinder Singh, D.R Date Of Hearing : 11/08/2021 Date Of Pronouncement : 24/08/2021

…rection to re-adjudicate the same after verifying the factum of availability of sufficient self-owned and interest free funds with the assessee in light of the judgment of the Hon‟ble High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Ltd. 313 ITR 340 (Bom). It was submitted by the ld. A.R that the A.O giving effect to the aforesaid directions of the Tribunal had vide his order passed u/s 143(3) r.w.s 254 of the Act, dated 05.07.2019 observed that the interest free loans and advances given by the assessee were old loans that were advanced way back in the preceding years i.e A.Y. 2005-06, A.Y.…

Addl CIT 24(3), Mumbai vs. Indervadan H Jain, Mumbai

In the result, appeal of revenue is allowed in part

…acceptable Since the borrowed money have not been used for the purpose of advancing interest free loans, no disallowance of interest can be made. I would like rely on the decision of Jurisdictional High Court in the case of Reliance Utilities Ltd. reported in 313 ITR 34 in this regard. The head note is as under:- Interest on borrowed capital--Investments by assessee--Finding that investments were from interest-free funds available with assessee-- Borrowed capital used for purposes of business-- Interest deductible-- Income-tax Act, 1961, s. 36(1 )(iii). The assessee claimed deduction of interest on borrowed capit…

Martin & Harris Laboratories Ltd., Mumbai vs. DCIT - 1(2), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri Amit Shukla & Shri Ramit Kochar

…khs given to the concerned persons should be presumed to have been given out of these funds only. In support of his contention, strong reliance was placed on Bombay High Court decision in the case of CIT vs Reliance Utilities and Power Ltd. reported in [2009] 313 ITR 34 (Bom); in the case of CIT v HDFC Bank Ltd., reported in [2014] 366 ITR 505. Thus, he argued that no disallowance should be made. 4. On the other hand, Ld. DR relied upon the order of the CIT(A) and submitted that onus is on the assessee to show that the borrowed funds were not utilized for giving advances to the concerned persons. 5. After consi…