Central Circle-2(1), Bangalore v. JSR Construction P. Ltd.

M/S Stylam Industries Ltd., Chandigarh vs. DCIT, C-1(1), Chandigarh

In the result, the Department’s appeal in for assessment year

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

…ssessee, for which, the disallowance made requires to be deleted. Reliance has been placed on “Munjal Sales Corporation Vs CIT” 298 ITR 298 (S.C.), “DCIT, Central Circle-2(1), Bangalore Vs JSR Construction P. Ltd.” 71 Taxman 184, “ACIT Vs Omaxe Bikes Ltd.” 156 ITD 566 (CHD). 25. The ld. DR, on the other hand, has placed strong reliance on the impugned order, stating that the ld. CIT(A) has correctly confirmed the disallowance in these three cases, since in the first transaction, i.e., purchase of land, ITA Nos. 1033 & 960/2017 & ITA Nos. 389 & 394/CHD/2019 23 there was a capital purchase for future expan…

DCIT, C-1(1), Chandigarh vs. M/S Stylam Industries Ltd., Chandigarh

In the result, the Department’s appeal in for assessment year

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

…ssessee, for which, the disallowance made requires to be deleted. Reliance has been placed on “Munjal Sales Corporation Vs CIT” 298 ITR 298 (S.C.), “DCIT, Central Circle-2(1), Bangalore Vs JSR Construction P. Ltd.” 71 Taxman 184, “ACIT Vs Omaxe Bikes Ltd.” 156 ITD 566 (CHD). 25. The ld. DR, on the other hand, has placed strong reliance on the impugned order, stating that the ld. CIT(A) has correctly confirmed the disallowance in these three cases, since in the first transaction, i.e., purchase of land, ITA Nos. 1033 & 960/2017 & ITA Nos. 389 & 394/CHD/2019 23 there was a capital purchase for future expan…

M/S Stylam Industries Ltd., Chandigarh vs. DCIT, C-1(1), Chandigarh

In the result, the Department’s appeal in for assessment year

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

…ssessee, for which, the disallowance made requires to be deleted. Reliance has been placed on “Munjal Sales Corporation Vs CIT” 298 ITR 298 (S.C.), “DCIT, Central Circle-2(1), Bangalore Vs JSR Construction P. Ltd.” 71 Taxman 184, “ACIT Vs Omaxe Bikes Ltd.” 156 ITD 566 (CHD). 25. The ld. DR, on the other hand, has placed strong reliance on the impugned order, stating that the ld. CIT(A) has correctly confirmed the disallowance in these three cases, since in the first transaction, i.e., purchase of land, ITA Nos. 1033 & 960/2017 & ITA Nos. 389 & 394/CHD/2019 23 there was a capital purchase for future expan…

DCIT, C-1(1), Chandigarh vs. M/S Stylam Industries Ltd., Chandigarh

In the result, the Department’s appeal in for assessment year

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

…ssessee, for which, the disallowance made requires to be deleted. Reliance has been placed on “Munjal Sales Corporation Vs CIT” 298 ITR 298 (S.C.), “DCIT, Central Circle-2(1), Bangalore Vs JSR Construction P. Ltd.” 71 Taxman 184, “ACIT Vs Omaxe Bikes Ltd.” 156 ITD 566 (CHD). 25. The ld. DR, on the other hand, has placed strong reliance on the impugned order, stating that the ld. CIT(A) has correctly confirmed the disallowance in these three cases, since in the first transaction, i.e., purchase of land, ITA Nos. 1033 & 960/2017 & ITA Nos. 389 & 394/CHD/2019 23 there was a capital purchase for future expan…

Sh. Aman Seth, Ludhiana vs. ITO, W-1(1), Ludhiana

In the result, appeal filed by the assessee is allowed for statistical purposes

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

…the company had reserve/surplus to the tune of almost of Rs. 15 crores and, therefore, the assessee company could in any case, utilize those funds for giving advance to its directors. Also, it was held in following case laws: ACIT vs. Omax Bikes Ltd. (2016) 156 ITD 566 (Chd. Trib.) Interest on borrowed capital - sufficient interest free funds - presumption is advances were from interest free funds- no disallowance can be made. DCIT vs. Sindhu Realtors Pvt. Ltd. (2016) 45 ITR 448 (Delhi Trib.) Interest on borrowed capital - no disallowance in case there are sufficient shareholder's without interest burden and b…

M/S Chadha Super Cars (P) Ltd vs. Addl. CIT, Ludhiana

In the result appeal of the Assessee is allowed

…er authorities. 7. Having heard both the parties, we find that as per the ratio laid down by the Hon’ble Supreme Court in the case of Hero Cycles(P) Ltd. Vs. CIT civil appeal no. 514 of 2008 (2015) CCH0097ISCC dt. 05/11/2015, ACIT Vs. Omax Bikes Ltd., (2016) 156 ITD 566 (Chd. Trib.), DCIT Vs. Sindhu Realtors Pvt. Ltd. (2016) 45 ITR 448 (Delhi Trib) no disallowance is warranted wherein the assessee had sufficient own funds in the form of share capital, reserve and surplus, non interest bearing funds, the presumption would be that the interest free funds are utilized for non interest bearing investments or expens…