Bright Enterprises Pvt. Ltd. v. CIT

381 ITR 107High Court2016#1784 most cited

What is Bright Enterprises Pvt. Ltd. v. CIT authority for?

No disallowance of interest expenditure can be made under Section 36(1)(iii) merely on the presumption of diversion of borrowed funds, if the assessee possesses sufficient interest-free own funds to cover interest-free advances.

64

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2026.

Also referred to as

Bright Enterprises Pvt. Ltd. v. CIT · 381 ITR 107 · Section 36(1)(iii) · interest free advances · disallowance of interest · sufficient interest-free funds · presumption of diversion · commercial expediency · business expediency · borrowed funds

Sections most often in play

Section 36(1)(iii)Section 143(3)Section 14ASection 143(2)Section 133(6)Section 142(1)Section 145(2)Section 147

Issues it is cited on

section 36(l)(iii)interest free advancesbusiness expediencysection 36(1)(iii)paper companycommercial expediencyput to usesection 36(1)section 36regular assessmentsection 14asection 28

Judgments citing Bright Enterprises Pvt. Ltd. v. CIT

NIPUN MALHOTRA,MANDI vs. ITO, WARD, MANDI

In the result, appeal of the assessee is allowed

ITA 81/CHANDI/2022[2013-14]Status: DisposedITAT Chandigarh20 Feb 2026AY 2013-14

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 81/Chd/2022 "नधा"रण वष" / Assessment Year: 2013-14 Nipun Malhotra, The Ito, 135/A, Jawahar Nagar, Vs Ward, Mandi, Himachal Pradesh. Mandi (Hp). "थायी लेखा सं./Pan No: Ablpm6589N अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Ajay Jain, Ca Revenue By : Dr. Ranjit Kaur, Addl. Cit Sr.Dr Date Of Hearing : 12.02.2026 Date Of Pronouncement : 20.02.2026 Physical Hearing O R D E R

For Appellant: Shri Ajay Jain, CAFor Respondent: Dr. Ranjit Kaur, Addl. CIT Sr.DR
Section 143(3)Section 263

…st free advances were given out of interest free funds available with the assessee. For buttressing this proposition, we take note of the following judgements : a) ACIT Vs Janak Global Resources Pvt. Ltd. 175 ITD 365 (Chd) b) Bright Enterprises (P) Ltd Vs CIT 381 ITR 107 (P&H.) c) CIT Vs Kapson Associates 381 ITR 204 (P&H.) d) CIT Vs Max India Ltd. 398 ITR 209 (Pb.) A.Y.2013-14 5 e) CIT Vs Max India Ltd (2016) 388 ITR 81 (P&H) f) Gordrej & Boyce Manufacturing Co. Ltd Vs DCIT (2017) 394 ITR 449 (SC) g) CIT Vs Reliance Ind Ltd. 410 ITR 466 (SC) h) CIT v/s Reliance Utilities & Power Ltd 313 ITR 340-344 (Bom) i) CIT…

M/S KNITWELL INDIA PVT. LTD.,CHANDIGARH vs. DCIT, C-1(1), CHANDIGARH

In the result, appeal of the assessee is partly allowed

ITA 1609/CHANDI/2018[2014-15]Status: DisposedITAT Chandigarh27 Jan 2026AY 2014-15

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 1609/Chd/2018 "नधा"रण वष" / Assessment Year. : 2014-15 M/S Knitwell India Pvt. Ltd., The Dcit, Plot No. 278, Industrial Area, Vs Circle 1(1), Phase-Ii, Chandigarh. Chandigarh. "थायी लेखा सं./Pan No: Aacck4673L अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Ms. Shruti Khandelwal, Advocate Revenue By : Shri Vivek Vardhan, Addl. Cit Sr.Dr Date Of Hearing : 24.11.2025 Date Of Pronouncement : 27.01.2026 O R D E R Physical Hearing Per Raj Pal Yadav, Vp

For Appellant: Ms. Shruti Khandelwal, AdvocateFor Respondent: Shri Vivek Vardhan, Addl. CIT Sr.DR
Section 143(2)Section 14ASection 36(1)(iii)

…Hon'ble Supreme Court in the case of Reliance Utilities & Power Ltd. reported in 313 ITR 340. Apart from the above, we are fortified with following decisions : a) ACIT Vs Janak Global Resources Pvt. Ltd. 175 ITD 365 (Chd) b) Bright Enterprises (P) Ltd Vs CIT 381 ITR 107 (P&H.) c) CIT Vs Kapson Associates 381 ITR 204 (P&H.) d) CIT Vs Max India Ltd. 398 ITR 209 (Pb.) e) CIT Vs Max India Ltd (2016) 388 ITR 81 (P&H) f) Gordrej & Boyce Manufacturing Co. Ltd Vs DCIT (2017) 394 ITR 449 (SC) g) CIT Vs Reliance Ind Ltd. 410 ITR 466 (SC) h) CIT V/s Shapoorji Pallongi & Co 423 ITR 220 (Bom) i) Decision of ITAT Chandigarh i…

ITO, WARD 6(1), LUDHIANA vs. M/S JUJHAR CONSTRUCTION & TRAVELS PVT. LTD., LUDHIANA

In the result, appeal of the Revenue is dismissed

ITA 536/CHANDI/2022[2013-14]Status: DisposedITAT Chandigarh06 Oct 2025AY 2013-14

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita No. 536/Chd/2022 "नधा"रण वष" / Assessment Year: 2013-14 The Ito, Vs M/S Jujhar Construction & Ward 6(1), Travels Pvt. Ltd.,Near Pull Jawaddi, Ludhiana. Pakhowal Road, Ludhiana. "थायी लेखा सं./Pan No: Aabcj1127H अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Sudhir Sehgal, Advocate Revenue By : Shri Manav Bansal, Cit, Dr Date Of Hearing : 02.09.2025 Date Of Pronouncement : 06.10.2025 Physical Hearing O R D E R Per Raj Pal Yadav, Vp

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Manav Bansal, CIT, DR
Section 143(2)Section 2(22)(e)

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 536/CHD/2022 "नधा"रण वष" / Assessment Year: 2013-14 The ITO, Vs M/s Jujhar Construction & Ward 6(1), Travels Pvt. Ltd.,Near Pull Jawaddi, Ludhiana. Pakhowal Road, Ludhiana. "थायी लेखा सं./PAN NO: AABCJ1127H अपीलाथ"/Appellant ""यथ"/Respondent Assessee by : Shri Sudhir Sehgal, Advocate Revenue by : Shri Manav Bansal, CIT, DR Date of Hearing : 02.09.2025 Date of Pronouncement : 06.10.2025 PHYSICA…

ASSISTANT COMMISSIONER OF INCOME TAX, AAYKAR BHAWAN, PANCHKULA vs. HARYANA WAREHOUSING CORPORATION, PANCHKULA, HARYANA

In the result, Revenue’s appeal is dismissed whereas, the appeal filed by the Assessee is allowed for statistical purposes

ITA 456/CHANDI/2023[2016-17]Status: DisposedITAT Chandigarh30 Sept 2025AY 2016-17

Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: Sh. Nalin Nohria, CA andFor Respondent: Sh. B.K. Nohria, CA
Section 143(3)Section 35A

…According to him, the interest expenditure pertained to operational godowns and the Assessing Officer wrongly presumed diversion of borrowed funds. Reliance was placed on the judgment of the Hon’ble Punjab & Haryana High Court in Bright Enterprises Pvt. Ltd. (381 ITR 107) for the proposition that where sufficient interest-free funds are available, no disallowance can be made merely on presumption. He therefore prayed for confirmation of relief already granted by the CIT(A) and deletion of the disallowance sustained on account of interest on WIP. 11. We have carefully considered the rival submissions and perused…

HARYANA STATE WAREHOUSING CORPORATION,PANCHKULA vs. ACIT, CIRCLE, PANCHKULA

In the result, Revenue’s appeal is dismissed whereas, the appeal filed by the Assessee is allowed for statistical purposes

ITA 436/CHANDI/2023[2016-17]Status: DisposedITAT Chandigarh30 Sept 2025AY 2016-17

Bench: SHRI LALIT KUMAR, NYAYIK Sadasy, SHRI MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: Sh. Nalin Nohria, CA andFor Respondent: Sh. B.K. Nohria, CA
Section 143(3)Section 35A

…According to him, the interest expenditure pertained to operational godowns and the Assessing Officer wrongly presumed diversion of borrowed funds. Reliance was placed on the judgment of the Hon’ble Punjab & Haryana High Court in Bright Enterprises Pvt. Ltd. (381 ITR 107) for the proposition that where sufficient interest-free funds are available, no disallowance can be made merely on presumption. He therefore prayed for confirmation of relief already granted by the CIT(A) and deletion of the disallowance sustained on account of interest on WIP. 11. We have carefully considered the rival submissions and perused…

DCIT, C-1(1), CHANDIGARH vs. M/S RANA POLYCOT LTD., CHANDIGARH

In the result, all the appeals are dismissed

ITA 1050/CHANDI/2018[2009-10]Status: DisposedITAT Chandigarh23 Jul 2025AY 2009-10

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 1050/Chd/2018 &

For Appellant: Shri Parikshit Aggarwal, CA and Ms. Shruti Khandelwal, AdvocateFor Respondent: Shri Sarabjeet Singh, CIT, DR
Section 36(1)(iii)

…see was having more interest free funds than the advances in each year, therefore, no disallowance ought to have been made. He relied upon following judgements: a) ACIT Vs Janak Global Resources Pvt. Ltd. 175 ITD 365 (Chd) b) Bright Enterprises (P) Ltd Vs CIT 381 ITR 107 (P&H.) c) CIT Vs Kapson Associates 381 ITR 204 (P&H.) d) CIT Vs Max India Ltd. 398 ITR 209 (Pb.) e) CIT Vs Max India Ltd (2016) 388 ITR 81 (P&H) f) Gordrej & Boyce Manufacturing Co. Ltd Vs DCIT (2017) 394 ITR 449 (SC) g) CIT Vs Reliance Ind Ltd. 410 ITR 466 (SC) h) CIT v/s Reliance Utilities & Power Ltd 313 ITR 340-344 (Bom) i) CIT V/s Shapoorji…

DCIT, C-1(1), CHANDIGARH vs. M/S RANA POLYCOT LTD., CHANDIGARH

In the result, all the appeals are dismissed

ITA 1015/CHANDI/2018[2012-13]Status: DisposedITAT Chandigarh23 Jul 2025AY 2012-13

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 1050/Chd/2018 &

For Appellant: Shri Parikshit Aggarwal, CA and Ms. Shruti Khandelwal, AdvocateFor Respondent: Shri Sarabjeet Singh, CIT, DR
Section 36(1)(iii)

…see was having more interest free funds than the advances in each year, therefore, no disallowance ought to have been made. He relied upon following judgements: a) ACIT Vs Janak Global Resources Pvt. Ltd. 175 ITD 365 (Chd) b) Bright Enterprises (P) Ltd Vs CIT 381 ITR 107 (P&H.) c) CIT Vs Kapson Associates 381 ITR 204 (P&H.) d) CIT Vs Max India Ltd. 398 ITR 209 (Pb.) e) CIT Vs Max India Ltd (2016) 388 ITR 81 (P&H) f) Gordrej & Boyce Manufacturing Co. Ltd Vs DCIT (2017) 394 ITR 449 (SC) g) CIT Vs Reliance Ind Ltd. 410 ITR 466 (SC) h) CIT v/s Reliance Utilities & Power Ltd 313 ITR 340-344 (Bom) i) CIT V/s Shapoorji…

DCIT, C-1(1), CHANDIGARH vs. M/S RANA POLYCOT LTD., CHANDIGARH

In the result, all the appeals are dismissed

ITA 1014/CHANDI/2018[2011-12]Status: DisposedITAT Chandigarh23 Jul 2025AY 2011-12

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 1050/Chd/2018 &

For Appellant: Shri Parikshit Aggarwal, CA and Ms. Shruti Khandelwal, AdvocateFor Respondent: Shri Sarabjeet Singh, CIT, DR
Section 36(1)(iii)

…see was having more interest free funds than the advances in each year, therefore, no disallowance ought to have been made. He relied upon following judgements: a) ACIT Vs Janak Global Resources Pvt. Ltd. 175 ITD 365 (Chd) b) Bright Enterprises (P) Ltd Vs CIT 381 ITR 107 (P&H.) c) CIT Vs Kapson Associates 381 ITR 204 (P&H.) d) CIT Vs Max India Ltd. 398 ITR 209 (Pb.) e) CIT Vs Max India Ltd (2016) 388 ITR 81 (P&H) f) Gordrej & Boyce Manufacturing Co. Ltd Vs DCIT (2017) 394 ITR 449 (SC) g) CIT Vs Reliance Ind Ltd. 410 ITR 466 (SC) h) CIT v/s Reliance Utilities & Power Ltd 313 ITR 340-344 (Bom) i) CIT V/s Shapoorji…

DCIT, C-1(1), CHANDIGARH vs. M/S RANA POLYCOT LTD., CHANDIGARH

In the result, all the appeals are dismissed

ITA 1013/CHANDI/2018[2010-11]Status: DisposedITAT Chandigarh23 Jul 2025AY 2010-11

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 1050/Chd/2018 &

For Appellant: Shri Parikshit Aggarwal, CA and Ms. Shruti Khandelwal, AdvocateFor Respondent: Shri Sarabjeet Singh, CIT, DR
Section 36(1)(iii)

…see was having more interest free funds than the advances in each year, therefore, no disallowance ought to have been made. He relied upon following judgements: a) ACIT Vs Janak Global Resources Pvt. Ltd. 175 ITD 365 (Chd) b) Bright Enterprises (P) Ltd Vs CIT 381 ITR 107 (P&H.) c) CIT Vs Kapson Associates 381 ITR 204 (P&H.) d) CIT Vs Max India Ltd. 398 ITR 209 (Pb.) e) CIT Vs Max India Ltd (2016) 388 ITR 81 (P&H) f) Gordrej & Boyce Manufacturing Co. Ltd Vs DCIT (2017) 394 ITR 449 (SC) g) CIT Vs Reliance Ind Ltd. 410 ITR 466 (SC) h) CIT v/s Reliance Utilities & Power Ltd 313 ITR 340-344 (Bom) i) CIT V/s Shapoorji…

M/S ORBIT RESORTS (P) LTD.,CHANDIGARH vs. DCIT, C-1(1), CHANDIGARH

In the result, both appeals are allowed

ITA 342/CHANDI/2019[2012-13]Status: DisposedITAT Chandigarh08 Apr 2025AY 2012-13

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwal

For Appellant: Shri Ashwani Kumar, CA, Shri Aditya Kumar,CA &For Respondent: Dr. Ranjit Kaur, Addl. CIT Sr.DR

…this capital work-in-progress and no interest expenditure is required to be allocated. For buttressing our above view, we rely upon the following judgements : a) ACIT Vs Janak Global Resources Pvt. Ltd. 175 ITD 365 (Chd) b) Bright Enterprises (P) Ltd Vs CIT 381 ITR 107 (P&H.) c) CIT Vs Kapson Associates 381 ITR 204 (P&H.) d) CIT Vs Max India Ltd. 398 ITR 209 (Pb.) e) CIT Vs Max India Ltd (2016) 388 ITR 81 (P&H) ITA No.341 & 342/CHD/2019 A.Y.2007-08 & 2012-13 4 f) Gordrej & Boyce Manufacturing Co. Ltd Vs DCIT (2017) 394 ITR 449 (SC) g) CIT Vs Reliance Ind Ltd. 410 ITR 466 (SC) h) CIT v/s Reliance Utilities &…

M/S ORBIT RESORTS (P) LTD.,CHANDIGARH vs. ADDL. CIT, R-1, CHANDIGARH

In the result, both appeals are allowed

ITA 341/CHANDI/2019[2007-08]Status: DisposedITAT Chandigarh08 Apr 2025AY 2007-08

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwal

For Appellant: Shri Ashwani Kumar, CA, Shri Aditya Kumar,CA &For Respondent: Dr. Ranjit Kaur, Addl. CIT Sr.DR

…this capital work-in-progress and no interest expenditure is required to be allocated. For buttressing our above view, we rely upon the following judgements : a) ACIT Vs Janak Global Resources Pvt. Ltd. 175 ITD 365 (Chd) b) Bright Enterprises (P) Ltd Vs CIT 381 ITR 107 (P&H.) c) CIT Vs Kapson Associates 381 ITR 204 (P&H.) d) CIT Vs Max India Ltd. 398 ITR 209 (Pb.) e) CIT Vs Max India Ltd (2016) 388 ITR 81 (P&H) ITA No.341 & 342/CHD/2019 A.Y.2007-08 & 2012-13 4 f) Gordrej & Boyce Manufacturing Co. Ltd Vs DCIT (2017) 394 ITR 449 (SC) g) CIT Vs Reliance Ind Ltd. 410 ITR 466 (SC) h) CIT v/s Reliance Utilities &…

NAHAR INDUSTRIAL ENTERPRISES LTD,LUDHIANA vs. DCIT, CIRCLE-1,, LUDHIANA

The appeal of the assessee is allowed

ITA 857/CHANDI/2024[2010-11]Status: DisposedITAT Chandigarh26 Mar 2025AY 2010-11

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwal

For Appellant: Shri Navdeep Sharma. AdvocateFor Respondent: Smt. Kusum Bansal, CIT DR

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 857/CHD/2024 "नधा"रण वष" / Assessment Year: 2010-11 Nahar Industrial Enterprises Ltd. The DCIT, Focal Point, Ludhiana. Vs Circle-1, Ludhiana. "थायी लेखा सं./PAN NO: AACCN3563A अपीलाथ"/Appellant ""यथ"/Respondent Assessee by : Shri Navdeep Sharma. Advocate Revenue by : Smt. Kusum Bansal, CIT DR Date of Hearing : 19.03.2025 Date of Pronouncement : 26.03.2025 VIRTUAL HEARING O R D E R P…

ITO, WARD-2(4), NEW DELHI vs. ANTHEIA CONSTRUCTIONS P.LTD, NEW DELHI

In the result, both the appeals filed by the Revenue are dismissed

ITA 4963/DEL/2017[2014-15]Status: DisposedITAT Delhi13 Sept 2024AY 2014-15

Bench: Shri Saktijit Dey, Hon’Ble & Shri S.Rifaur Rahman

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri Kanv Bali, Sr. DR
Section 133Section 142(1)Section 143(2)

…sted as a substantial of law seems to proceed on a basis that some notional interest might have been asked to be assessed. We are unable to agree." f. The Hon'ble High Court of Punjab and Haryana in the case of Bright Enterprises Pvt. Ltd. vs. CIT, Jalandhar (381 ITR 107) has held that: "17. The Assessing Officer's view that the advance was not for business purposes as the appellant had no business dealings with the sister company is erroneous. Commercial expediency in advancing loans does not arise only on account of there being transactions directly between the holding company and the subsidiary company or betw…

ITO, NEW DELHI vs. M/S ANTHEIA CONSTRUCTIONS PVT. LTD.,, NEW DELHI

In the result, both the appeals filed by the Revenue are dismissed

ITA 2373/DEL/2017[2013-14]Status: DisposedITAT Delhi13 Sept 2024AY 2013-14

Bench: Shri Saktijit Dey, Hon’Ble & Shri S.Rifaur Rahman

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri Kanv Bali, Sr. DR
Section 133Section 142(1)Section 143(2)

…sted as a substantial of law seems to proceed on a basis that some notional interest might have been asked to be assessed. We are unable to agree." f. The Hon'ble High Court of Punjab and Haryana in the case of Bright Enterprises Pvt. Ltd. vs. CIT, Jalandhar (381 ITR 107) has held that: "17. The Assessing Officer's view that the advance was not for business purposes as the appellant had no business dealings with the sister company is erroneous. Commercial expediency in advancing loans does not arise only on account of there being transactions directly between the holding company and the subsidiary company or betw…

ITO, NEW DELHI vs. M/S ANSAL HOUSING & CONSTRUCTION LTD., NEW DELHI

In the result, the cross-objection filed by the assessee is dismissed

ITA 2731/DEL/2010[2007-08]Status: DisposedITAT Delhi26 Jul 2024AY 2007-08

Bench: Shri G.S.Pannu & Shri Kul Bharat[Assessment Year : 2007-08] Dcit, Vs Ansal Housing & Construction Ltd., Central Circle-20, Ugf-15, Indraprastha Building, 21, New Delhi. Barakhamba Road, New Delhi. Pan-Aaaca0377R Appellant Respondent

Section 143(3)Section 14ASection 80Section 80I

…maceutical Works Ltd. v. CIT: 224 ITR 627 - CIT v. Reliance Utilities and Power Ltd.: 313 ITR 340 (Bom.) - CIT v. M/s Ashok Commercial Enterprises: ITA No. 2985 of 2009 (Bom) - Gurdas Garg v. CIT: ITA No.413 of 2014 (P&H) - Bright enterprises Pvt Ltd. v. CIT: 381 ITR 107 (P&H) - PCIT v. Basti Sugar Mills Co. Ltd.: ITA No. 205 OF 2018 (Del HC) - PCIT v. Reebok India Company: [2018] 259 Taxman 100 (Delhi) Applying the aforesaid principle of investment, the Courts and various benches of the Tribunal have, in the following decisions, deleted disallowance made under section 14A of the Act: - CIT v. UTI Bank Ltd: 215 T…

IND SWIFT LABORATORIES LTD.,CHANDIGARH vs. DCIT, CIRCLE 1(1), CHANDIGARH

In the result, the appeal is allowed, as indicated

ITA 350/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh04 Jun 2024AY 2017-18

Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri T.N.Singla, C.AFor Respondent: Shri Rohit Sharma, CIT-DR
Section 250Section 35Section 35(1)Section 35(1)(i)Section 35(2)

…ot be entitled to claim deduction of the interest on the borrowings to the extent those are diverted to sister concerns or other persons without interest. 35.01. In 'Bright Enterprises (P) Ltd. Versus Commissioner of Income Tax, Jalandhar (Punjab)', [2016] 381 ITR 107 (P&H), vide order dated 15.07.2015, the Honorable jurisdictional High Court held that the Assessing Officer had observed that no interest was charged by the assessee on advances made to sister concern, whereas the assessee had paid interest on the loans taken from various banks; that the AO observed that had the assessee not advanced the amount…

DCIT, CC-III, LUDHIANA vs. M/S GANESHAY OVERSEAS INDUSTRIES LTD, CHANDIGARH

In the result the appeal of the Revenue is dismissed

ITA 253/CHANDI/2023[2018-19]Status: DisposedITAT Chandigarh22 Apr 2024AY 2018-19

Bench: SHRI A.D.JAIN (Vice President), SHRI VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Smt. Amanpreet Kaur, Sr.DR
Section 14ASection 36(1)(iii)

…s, a presumption is to be drawn that investments in tax free income yielding investment has been made out of interest free funds available with the assessee. 14. The following decisions are also to the same effect : a) Bright Enterprises Pvt. Ltd. vs CIT, 381 ITR 107. b) Munjal Sales Corporation vs CIT, 298 ITR 298. c) Omax Bikes Ltd. in ITA No. 1085/CHD/2013 (ITAT Chandigarh ) d) CITvs Reliance Utilities and Power 313 ITR 340 (Bombay HC) 15. In view of the above, Ground Nos. 3 and 4 are accepted and the disallowance made is deleted. 16. Accordingly, the appeal is partly allowed as indicated. ITA 253/CHD/…

M/S GANESHAY OVERSEAS INDUSTRIES LTD.,CHANDIGARH vs. DCIT, CC-1, CHANDIGARH

In the result the appeal of the Revenue is dismissed

ITA 200/CHANDI/2023[2012-13]Status: DisposedITAT Chandigarh22 Apr 2024AY 2012-13

Bench: SHRI A.D.JAIN (Vice President), SHRI VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Smt. Amanpreet Kaur, Sr.DR
Section 14ASection 36(1)(iii)

…s, a presumption is to be drawn that investments in tax free income yielding investment has been made out of interest free funds available with the assessee. 14. The following decisions are also to the same effect : a) Bright Enterprises Pvt. Ltd. vs CIT, 381 ITR 107. b) Munjal Sales Corporation vs CIT, 298 ITR 298. c) Omax Bikes Ltd. in ITA No. 1085/CHD/2013 (ITAT Chandigarh ) d) CITvs Reliance Utilities and Power 313 ITR 340 (Bombay HC) 15. In view of the above, Ground Nos. 3 and 4 are accepted and the disallowance made is deleted. 16. Accordingly, the appeal is partly allowed as indicated. ITA 253/CHD/…

M/S GARG FURNACE LTD.,LUDHIANA vs. DCIT, CC-3, LUDHIANA

In the result, the appeal is allowed

ITA 382/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh10 Apr 2024AY 2017-18

Bench: SHRI A.D.JAIN (Vice President), SHRI VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Ashwani Kumar &For Respondent: Shri Amanpreet Kaur, Sr.DR
Section 36(1)(iii)Section 37

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ , च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A’ CHANDIGARH BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 382/CHD/2023 "नधा"रण वष" / Assessment Year. : 2017-18 M/s Garg Furnace Ltd., The DCIT, बनाम Kanganwal Road, Central Circle-3, VS VPO Juglana, Ludhiana. Chandigarh. "थायी लेखा सं./PAN /TAN No: AAACG8307R अपीलाथ"/Appellant ""यथ"/Respondent "नधा"रती क" ओर से/Assessee by : Shri Ashwani Kumar & Ms. Muskan Garg, CAs राज"व क" ओर से/ Revenue by : Shri Amanpreet Kaur, Sr.DR तार"ख/Date of Hearing :…

M/S. SUNIL & COMPANY,JODHPUR vs. ACIT, CIRCLE-1, JODHPUR

In the result, appeal of the assessee is allowed

ITA 502/JODH/2018[2004-05]Status: DisposedITAT Jodhpur03 Aug 2023AY 2004-05

Bench: Its Hearing Before Your Honour.”

Section 143(2)Section 143(3)Section 36(1)(iii)

…following submission / evidences: S. No. Particulars Pages 1 Written submissions filed before ld. CIT(A) on 23.02.2007 1-7 and 27.07.2018 2 Submissions filed before ld. AO 8-10 3 Copy of Judgment in the case of Bright Enterprises P. Ltd. 11-17 vs. CIT (2015) 381 ITR 107 (P & H) 4 Documents relating to Synco Industries Ltd. showing 18-26 proceedings before Board for Industrial and Financial Reconstruction. 5 Account statement of Synco Industries Ltd. for A.Y 2003- 27-31 04 and A.Y 2004-05 6 Order of Hon’ble ITAT in the case of appellant for A.Y 32-31 2004-05 in which the issue relating to interest was set aside.…

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