CIT v. Abhishek Industries Ltd.

286 ITR 1High Court2006#204 most cited

What is CIT v. Abhishek Industries Ltd. authority for?

For interest on borrowed capital to be deductible under Section 36(1)(iii), there must be a nexus between the use of the borrowed funds and the purpose of the business. This decision has been overruled by the Supreme Court in Munjal Sales Corporation v. CIT (2008).

359

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Abhishek Industries Ltd. · 286 ITR 1 · Section 36(1)(iii) · interest on borrowed capital · disallowance · commercial expediency · use of borrowed funds for business · nexus of funds · interest-free advances · overruled by Munjal Sales Corporation

Also reported as

156 Taxmann 25756 Taxmann.com 391

Sections most often in play

Section 143(3)Section 36(1)(iii)Section 14ASection 37(1)Section 133(6)Section 147Section 132(4)Section 69A

Issues it is cited on

interest free advancessection 36(1)(iii)put to usecommercial expediencysection 36(1)book profitssection 36disallowance u/s 14adisallowance under section 14arevenue expendituresection 14acapital expenditure

Judgments citing CIT v. Abhishek Industries Ltd.

DEPUTY COMMISSIONER OF INCOME TAX, DELHI vs. M/S VESTIGE MARKETING PRIVATE LIMITED, DELHI

ITA 7842/DEL/2025[2022-23]Status: DisposedITAT Delhi20 Mar 2026AY 2022-23

Bench: Shri Before Shri Satbeer Singh Godarabefore Shri Before Shri Satbeer Singh Godarasatbeer Singh Godara & Satbeer Singh Godara & And & Shri Naveen Chandra Shri Naveen Chandra, , , Shri Naveen Chandra Shri Naveen Chandra

For Appellant: Shri Amit Goel and Shri Pranav Yadav, Advocate
Section 132Section 143(3)Section 147Section 37Section 37(1)Section 69A

…TE TRIBUNAL INCOME TAX APPELLATE TRIBUNAL INCOME TAX APPELLATE TRIBUNAL INCOME TAX APPELLATE TRIBUNAL i) ITA No. 110 of 2004 dated 18.02.2006 (Kar) Madhuri Investments Pvt. Ltd. vs. Asst. CIT ii) ITA No. 2038/D/2009 ITO vs. M/s Emperor International Ltd. iii) 284 ITR 1 (Jodh) TM Uma Polymers P Ltd. vs. DCIT iv) ITA No. 2082/D/2011 dated 8.12.2014 ACIT v. Divine (India) Infrastructure (P) Ltd v) 121 ITD 525 (Agra) Kalyan Memorial & Charitable Trust v. ACIT vi) 47 DTR 225 (Del) ITO vs. Purvi Fabrics & Textures (P) Ltd. 4. No addition can be made on the basis of self serving report of inspector 4. No addition can b…

DEPUTY COMMISSIONER OF INCOME TAX, DELHI vs. M/S VESTIGE MARKETING PRIVATE LIMITED, DELHI

ITA 7841/DEL/2025[2021-22]Status: DisposedITAT Delhi20 Mar 2026AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

Section 132Section 133(6)Section 143(3)Section 147Section 37Section 37(1)Section 69A

…AS HIGH COURT i) 294 ITR 663 (Mad) CIT v. Gobi Textiles Ltd. INCOME TAX APPELLATE TRIBUNAL i) ii) iii) iv) v) vi) ITA No. 110 of 2004 dated 18.02.2006 (Kar) Madhuri Investments Pvt. Ltd. vs. Asst. CIT ITA No. 2038/D/2009 ITO vs. M/s Emperor International Ltd. 284 ITR 1 (Jodh) TM Uma Polymers P Ltd. vs. DCIT ITA No. 2082/D/2011 dated 8.12.2014 ACIT v. Divine (India) Infrastructure (P) Ltd 121 ITD 525 (Agra) Kalyan Memorial & Charitable Trust v. ACIT 47 DTR 225 (Del) ITO vs. Purvi Fabrics & Textures (P) Ltd. 4. No addition can be made on the basis of self serving report of inspector of investigation wing particular…

DEPUTY COMMISSIONER OF INCOME TAX, DELHI vs. M/S VESTIGE MARKETING PRIVATE LIMITED, DELHI

ITA 7840/DEL/2025[2020-21]Status: DisposedITAT Delhi20 Mar 2026AY 2020-21

Bench: Shri Before Shri Satbeer Singh Godarabefore Shri Before Shri Satbeer Singh Godarasatbeer Singh Godara & Satbeer Singh Godara & And & Shri Naveen Chandra Shri Naveen Chandra, , , Shri Naveen Chandra Shri Naveen Chandra

For Appellant: Shri Amit Goel and Shri Pranav Yadav, Advocate
Section 132Section 143(3)Section 147Section 37Section 37(1)Section 69A

…TE TRIBUNAL INCOME TAX APPELLATE TRIBUNAL INCOME TAX APPELLATE TRIBUNAL INCOME TAX APPELLATE TRIBUNAL i) ITA No. 110 of 2004 dated 18.02.2006 (Kar) Madhuri Investments Pvt. Ltd. vs. Asst. CIT ii) ITA No. 2038/D/2009 ITO vs. M/s Emperor International Ltd. iii) 284 ITR 1 (Jodh) TM Uma Polymers P Ltd. vs. DCIT iv) ITA No. 2082/D/2011 dated 8.12.2014 ACIT v. Divine (India) Infrastructure (P) Ltd v) 121 ITD 525 (Agra) Kalyan Memorial & Charitable Trust v. ACIT vi) 47 DTR 225 (Del) ITO vs. Purvi Fabrics & Textures (P) Ltd. 4. No addition can be made on the basis of self serving report of inspector 4. No addition can b…

DEPUTY COMMISSIONER OF INCOME TAX, DELHI vs. M/S VESTIGE MARKETING PRIVATE LIMITED, DELHI

ITA 7838/DEL/2025[2018-19]Status: DisposedITAT Delhi20 Mar 2026AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

For Appellant: Shri Amit Goel andFor Respondent: Ms. Monika Singh, CIT-DR
Section 132Section 133(6)Section 143(3)Section 147Section 37Section 37(1)Section 69A

…AS HIGH COURT i) 294 ITR 663 (Mad) CIT v. Gobi Textiles Ltd. INCOME TAX APPELLATE TRIBUNAL i) ii) iii) iv) v) vi) ITA No. 110 of 2004 dated 18.02.2006 (Kar) Madhuri Investments Pvt. Ltd. vs. Asst. CIT ITA No. 2038/D/2009 ITO vs. M/s Emperor International Ltd. 284 ITR 1 (Jodh) TM Uma Polymers P Ltd. vs. DCIT ITA No. 2082/D/2011 dated 8.12.2014 ACIT v. Divine (India) Infrastructure (P) Ltd 121 ITD 525 (Agra) Kalyan Memorial & Charitable Trust v. ACIT 47 DTR 225 (Del) ITO vs. Purvi Fabrics & Textures (P) Ltd. 4. No addition can be made on the basis of self serving report of inspector of investigation wing particular…

VESTIGE MARKETING PVT LTD,DELHI vs. DCIT CENTRAL CIRCLE -05 , DELHI

ITA 5521/DEL/2025[2024-25]Status: DisposedITAT Delhi20 Mar 2026AY 2024-25

Bench: Shri Before Shri Satbeer Singh Godarabefore Shri Before Shri Satbeer Singh Godarasatbeer Singh Godara & Satbeer Singh Godara & And & Shri Naveen Chandra Shri Naveen Chandra, , , Shri Naveen Chandra Shri Naveen Chandra

For Appellant: Shri Amit Goel and Shri Pranav Yadav, Advocate
Section 132Section 143(3)Section 147Section 37Section 37(1)Section 69A

…TE TRIBUNAL INCOME TAX APPELLATE TRIBUNAL INCOME TAX APPELLATE TRIBUNAL INCOME TAX APPELLATE TRIBUNAL i) ITA No. 110 of 2004 dated 18.02.2006 (Kar) Madhuri Investments Pvt. Ltd. vs. Asst. CIT ii) ITA No. 2038/D/2009 ITO vs. M/s Emperor International Ltd. iii) 284 ITR 1 (Jodh) TM Uma Polymers P Ltd. vs. DCIT iv) ITA No. 2082/D/2011 dated 8.12.2014 ACIT v. Divine (India) Infrastructure (P) Ltd v) 121 ITD 525 (Agra) Kalyan Memorial & Charitable Trust v. ACIT vi) 47 DTR 225 (Del) ITO vs. Purvi Fabrics & Textures (P) Ltd. 4. No addition can be made on the basis of self serving report of inspector 4. No addition can b…

VESTIGE MARKETING PVT LTD,DELHI vs. DCIT, CENTRAL CIRCLE-05, DELHI

ITA 5520/DEL/2025[2023-24]Status: DisposedITAT Delhi20 Mar 2026AY 2023-24

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

Section 132Section 133(6)Section 143(3)Section 147Section 37Section 37(1)Section 69A

…AS HIGH COURT i) 294 ITR 663 (Mad) CIT v. Gobi Textiles Ltd. INCOME TAX APPELLATE TRIBUNAL i) ii) iii) iv) v) vi) ITA No. 110 of 2004 dated 18.02.2006 (Kar) Madhuri Investments Pvt. Ltd. vs. Asst. CIT ITA No. 2038/D/2009 ITO vs. M/s Emperor International Ltd. 284 ITR 1 (Jodh) TM Uma Polymers P Ltd. vs. DCIT ITA No. 2082/D/2011 dated 8.12.2014 ACIT v. Divine (India) Infrastructure (P) Ltd 121 ITD 525 (Agra) Kalyan Memorial & Charitable Trust v. ACIT 47 DTR 225 (Del) ITO vs. Purvi Fabrics & Textures (P) Ltd. 4. No addition can be made on the basis of self serving report of inspector of investigation wing particular…

VESTIGE MARKETING PVT LTD,DELHI vs. DCIT, CENTRAL CIRCLE-05, DELHI

ITA 5517/DEL/2025[2020-21]Status: DisposedITAT Delhi20 Mar 2026AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

Section 132Section 133(6)Section 143(3)Section 147Section 37Section 37(1)Section 69A

…AS HIGH COURT i) 294 ITR 663 (Mad) CIT v. Gobi Textiles Ltd. INCOME TAX APPELLATE TRIBUNAL i) ii) iii) iv) v) vi) ITA No. 110 of 2004 dated 18.02.2006 (Kar) Madhuri Investments Pvt. Ltd. vs. Asst. CIT ITA No. 2038/D/2009 ITO vs. M/s Emperor International Ltd. 284 ITR 1 (Jodh) TM Uma Polymers P Ltd. vs. DCIT ITA No. 2082/D/2011 dated 8.12.2014 ACIT v. Divine (India) Infrastructure (P) Ltd 121 ITD 525 (Agra) Kalyan Memorial & Charitable Trust v. ACIT 47 DTR 225 (Del) ITO vs. Purvi Fabrics & Textures (P) Ltd. 4. No addition can be made on the basis of self serving report of inspector of investigation wing particular…

VESTIGE MARKETING PVT. LTD.,DELHI vs. DCIT, CENTRAL CIRCLE- 05, DELHI

ITA 5515/DEL/2025[2018-19]Status: DisposedITAT Delhi20 Mar 2026AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

For Appellant: Shri Amit Goel andFor Respondent: Ms. Monika Singh, CIT-DR
Section 132Section 133(6)Section 143(3)Section 147Section 37Section 37(1)Section 69A

…AS HIGH COURT i) 294 ITR 663 (Mad) CIT v. Gobi Textiles Ltd. INCOME TAX APPELLATE TRIBUNAL i) ii) iii) iv) v) vi) ITA No. 110 of 2004 dated 18.02.2006 (Kar) Madhuri Investments Pvt. Ltd. vs. Asst. CIT ITA No. 2038/D/2009 ITO vs. M/s Emperor International Ltd. 284 ITR 1 (Jodh) TM Uma Polymers P Ltd. vs. DCIT ITA No. 2082/D/2011 dated 8.12.2014 ACIT v. Divine (India) Infrastructure (P) Ltd 121 ITD 525 (Agra) Kalyan Memorial & Charitable Trust v. ACIT 47 DTR 225 (Del) ITO vs. Purvi Fabrics & Textures (P) Ltd. 4. No addition can be made on the basis of self serving report of inspector of investigation wing particular…

NUVAMA WEALTH MANAGEMENT LIMITED,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX-1(1), MUMBAI

In the result, both the appeals of the assessee are

ITA 6761/MUM/2025[2015-16]Status: DisposedITAT Mumbai27 Feb 2026AY 2015-16
Section 10(34)Section 14ASection 14A(2)

…of Punjab and Haryana High Court in case of CIT v Winsome Textile Industries Ltd. [2009] 319 ITR 204 in which also the Court had observed as under: "7. We do not find any merit in this submission. The judgement of this court in Abhishek Industries Ltd. (2006) 286 ITR 1 was on the issue of allowability of interest paid on loans given to sister concerns, without interest. It was held that deduction for interest was permissible when loan was taken for business purpose and not for diverting the same to sister concern without having nexus with the business. The observations made therein have to be read in that context…

NUVAMA WEALTH MANAGEMENT LIMITED,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX-1(1), MUMBAI

In the result, both the appeals of the assessee are

ITA 6760/MUM/2025[2014-15]Status: DisposedITAT Mumbai27 Feb 2026AY 2014-15

Bench: Shri Om Prakash Kant (Account Member) & Ms. Kavitha Rajagopal ()

For Respondent: Shri Ravikant Pathak
Section 10(34)Section 14ASection 14A(2)

…of Punjab and Haryana High Court in case of CIT v Winsome Textile Industries Ltd. [2009] 319 ITR 204 in which also the Court had observed as under: "7. We do not find any merit in this submission. The judgement of this court in Abhishek Industries Ltd. (2006) 286 ITR 1 was on the issue of allowability of interest paid on loans given to sister concerns, without interest. It was held that deduction for interest was permissible when loan was taken for business purpose and not for diverting the same to sister concern without having nexus with the business. The observations made therein have to be read in that context…

M/S VARDHMAN TEXTILES LTD. vs. C I T AND ANR.

ITA/517/2008HC Punjab & Haryana26 Feb 2026

Bench: MR. JUSTICE AMARINDER SINGH GREWAL,MR. JUSTICE JAGMOHAN BANSAL

Section 10Section 143(1)Section 260ASection 80Section 80l

…dy. The Tribunal held that sales tax subsidy was revenue receipt, thus, liable to tax. 6. Learned Sr. counsel for the appellant submits that Division Bench of this Court in “Commissioner of Income Tax-1, Ludhiana Vs. Abhishek Industries Ltd”, [2006] 286 ITR 1 (P&H) held that sales tax subsidy is revenue receipt. The said judgment was passed without considering judgment of Hon’ble Supreme Court in “Commissioner of Income Tax Madras Vs. Ponni Sugars & Chemicals Ltd”, 2008 (9) SCC 337. Supreme Court in Ponni Sugars (supra) has clearly held that time or manner of subsidy is irrelevant. One is supposed…

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

…of A.Y.2013-14 4 Rs.1,42,22,416/-. Thus, according to the assessee, it has more interest free funds than the advances given. He also pointed out that AO has followed the judgement of Hon'ble jurisdictional High Court in the case of CIT Vs Abhishek Industries 286 ITR 1 which has been overruled by the Hon'ble Supreme Court in the case of Hero Cycles Pvt. Ltd. V CIT 379 ITR 347. 4. The ld. DR, on the other hand relied upon the orders of Revenue Authorities. 5. We have duly considered the rival contentions and gone through the record carefully. It is pertinent to note that jurisprudence on this point, at present is…

INCOME TAX OFFICER, CHENNAI vs. AVIGNA PRIVATE LIMITED, CHENNAI

In the result, the appeal of the revenue is allowed for statistical purposes

ITA 2930/CHNY/2025[2023-24]Status: DisposedITAT Chennai13 Feb 2026AY 2023-24

Bench: Shri Aby T. Varkey & Ms. Padmavathy.Sआयकर अपील सं./Ita No.2930/Chny/2025 िनधा$रण वष$ /Assessment Year: 2023-24

For Appellant: Mr. M. Karunakaran, AdvocateFor Respondent: Ms. R. Anitha, Addl. CIT
Section 250Section 36(1)(iii)Section 40

…wed at high interest rates were utilized for advancing interest-free loans, thereby resulting in diversion of borrowed funds for non-business purposes, as held in Hero Cycles (P) Ltd. vs. CIT (2015) 379 ITR 347 (SC) and CIT vs. Abhishek Industries Ltd. (2006) 286 ITR 1 (P&H). 6. Whether in facts and circumstances of the case, the Ld. CIT(A) has erred in law in not appreciating that the assessee was facing a cash flow crunch and had to borrow funds to meet business requirements, indicating that the interestfree advances were not for business purposes. 7. Whether in facts and circumstances of the case, the Ld. CIT(…

DEPUTY COMMISSIONER OF INCOME TAX , CHENNAI vs. M/S. CHEMPLAST SANMAR LIMITED, CHENNAI

In the result, the appeal filed by the Revenue is partly-allowed for statistical purposes

ITA 2627/CHNY/2025[2017-18]Status: DisposedITAT Chennai06 Feb 2026AY 2017-18

Bench: Shri George George K & Shri Inturi Rama Raoआयकर अपील सं./Ita No.: 2627/Chny/2025 िनधा"रण वष"/Assessment Year: 2017-18 The Deputy Commissioner Of Chemplast Sanmar Limited, Income Tax, Vs. 9, Cathedral Road, Non-Corporate Circle 8, Chennai - 600 086. Chennai Pan: Aaacc 3000F (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Ms. Gouthami Manivasagam, Addl.Cit ""यथ" क" ओर से/Respondent By : Shri R. Vijayaraghavan, Advocate सुनवाई क" तारीख/Date Of Hearing : 03.02.2026 घोषणा क" तारीख/Date Of Pronouncement : 06.02.2026

For Appellant: Ms. Gouthami ManivasagamFor Respondent: Shri R. Vijayaraghavan, Advocate
Section 115JSection 143(3)Section 14ASection 40A(7)Section 40A(7)(b)Section 40A(9)Section 43B

…आयकर अपील"य अ"धकरण, ‘बी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI "ी जॉज" जॉज" के, उपा"य" एवं "ी इंटूर" रामा राव, लेखा सद"य के सम" BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2627/CHNY/2025 िनधा"रण वष"/Assessment Year: 2017-18 The Deputy Commissioner of Chemplast Sanmar Limited, Income Tax, Vs. 9, Cathedral Road, Non-Corporate Circle 8, Chennai - 600 086. Chennai PAN: AAACC 3000F (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Ms. Gouthami Manivasagam, Addl.CIT ""यथ" क" ओर से/Respondent by :…

BANSILAL RAMNATH AGARWAL CHARITABLE TRUST,PUNE vs. CIT (EXEMPTION), PUNE

In the result, the appeal filed by the assessee is allowed

ITA 1357/PUN/2025[2020-21]Status: DisposedITAT Pune28 Jan 2026AY 2020-21

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2020-21 Bansilal Ramnath Agarwal Charitable Trust Cit (Exemption), 251, Budhwar Peth, City Post Chowk, Vs. Pune Pune – 411002 Pan: Aaatb4383K (Appellant) (Respondent) Assessee By : Shri Kishor B Phadke Department By : Shri Amol Khairnar, Cit-Dr Date Of Hearing : 11-12-2025 Date Of Pronouncement : 28-01-2026 O R D E R Per R.K. Panda, V.P:

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri Amol Khairnar, CIT-DR
Section 11Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 2(15)Section 263

…ctions lack commercial prudence and were designed to unduly benefit the related concern at the expense of the trust's corpus. He referred to the decision of Hon’ble Punjab & Haryana High Court in the case of CIT v. Abhishek Industries Ltd. Reported in [(2006) 286 ITR 1 (P&H)] wherein the Hon’ble High Court has held that excessive 10 payments made to related parties need to be scrutinized and disallowed if found unreasonable. However, the Assessing Officer in the instant case has failed to appreciate this issue resulting in an erroneous order. 9. So far as M/s Investronaut is concerned, he noted that 100% of its…

COMMISSIONER OF INCOME TAX -II, CHANDIGARH vs. M/S SMITHKLINE BEECHAM CONSUMER HEALTH CARE LTD.(NOW GLAXO SMITHKLINE CONSUMER HEALTHCARE LTD.)

Appeal stands disposed of

ITA/269/2009HC Punjab & Haryana19 Jan 2026

Bench: MR. JUSTICE AMARINDER SINGH GREWAL,MR. JUSTICE JAGMOHAN BANSAL

Section 260ASection 80

…anagement Scheme, interest on borrowed capital so invested, cannot be reduced from the dividend income, while computing deduction us 80M of the I.T. Act, ignoring the decision of the jurisdictional High Court in the case of M/s Abhishek Industries. (2006) 286 ITR 1 (P&H)? (iii) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in upholding the order of the CIT (Appeals) in deleting the addition made on account of change in the method of valuation of closing stock in respect of excise duty? (iv) Whether on the facts and in the circumstances of the case, the Ho…

PR. COMMISSIONER OF INCOME TAX , DELHI-7 vs. M/S V C SOLUTIONS PVT. LTD.

ITA - 515 / 2025HC Delhi13 Oct 2025
Section 14A

…ITA 515/2025 Page 1 of 11 $~78 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 515/2025 PR. COMMISSIONER OF INCOME TAX , DELHI-7 .....Appellant Through: Mr. Puneet Rai, SSC with Mr. Ashvini Kumar, Mr. Rishabh Nangia and Mr. Gibran, Advs. versus M/S V C SOLUTIONS PVT. LTD. .....Respondent Through: None. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR O R D E R % 13.10.2025 CM APPL. 64263/2025 1. Exemption is allowed, subject to all just exceptions. 2. The application stands disposed of. CM APPL. 64264/2025 (Condonation of delay of 136 days in filing), CM APPL. 64265/2025 (Condonation of…

KAPIL FOODS AND STRUCTURES PRIVATE LIMITED,WARANGAL vs. DCIT., CIRCLE-3(1), HYDERABAD

In the result, the appeal of the assessee in ITA No

ITA 206/HYD/2025[2017-18]Status: DisposedITAT Hyderabad26 Sept 2025AY 2017-18

Bench: Shri Ravish Sood & Shri Madhusudan Sawdiaआ.अपी.सं /Ita Nos.205 & 206/Hyd/2025 (निर्धारण वर्ा/Assessment Year:2016-17 & 2017-18) M/S. Kapil Foods & Structures Dy. Commissioner Of Income Tax, Vs. Circle-3(1), Hyderabad. Pvt. Ltd., Warangal. Pan: Aacck2614F (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri S. Rama Rao, Advocate रधजस् व द्वधरध/Revenue By: Dr. Sachin Kumar, Sr-Dr सुिवधई की तधरीख/Date Of Hearing: 02/09/2025 घोर्णध की तधरीख/Pronouncement: 26/09/2025 आदेश/Order Per Madhusudan Sawdia, A.M.: These Two Appeals Are Filed By M/S. Kapil Foods & Structures Pvt. Ltd. (“The Assessee”), Feeling Aggrieved By The Separate Orders Passed By The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi (“Ld. Cit(A)”), Both Dated 09.12.2024 For The A.Ys. 2016-17 & 2017-18. Since The Issues Involved In Both These Appeals Are Identical & Belong To The Same Assessee, One Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.

For Appellant: Shri S. Rama Rao, AdvocateFor Respondent: Dr. Sachin Kumar, SR-DR
Section 139Section 147Section 148Section 36(1)(iii)

…e by the Ld. AO was justified. In support of his submission, the Ld. DR relied on the decision of Hon’ble Madras High Court in K. Somasundaram & Brothers v. CIT dated 03.08.1998 and Hon’ble Punjab & Haryana High Court in CIT v. Abhishek Industries Ltd. (2006) 286 ITR 1. It ITA No.205/Hyd/2025 7 was argued that the ratio of these judgments applies squarely to the case of the assessee and the appeal of the assessee deserves dismissal. 9. We have heard rival submissions and perused the material available on record. As far as the admission of additional evidence is concerned, the assessee has filed audited balance s…

KAPIL FOODS AND STRUCTURES PRIVATE LIMITED,WARANGAL vs. DCIT., CIRCLE-3(1), HYDERABAD

In the result, the appeal of the assessee in ITA No

ITA 205/HYD/2025[2016-17]Status: DisposedITAT Hyderabad26 Sept 2025AY 2016-17

Bench: Shri Ravish Sood & Shri Madhusudan Sawdiaआ.अपी.सं /Ita Nos.205 & 206/Hyd/2025 (निर्धारण वर्ा/Assessment Year:2016-17 & 2017-18) M/S. Kapil Foods & Structures Dy. Commissioner Of Income Tax, Vs. Circle-3(1), Hyderabad. Pvt. Ltd., Warangal. Pan: Aacck2614F (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri S. Rama Rao, Advocate रधजस् व द्वधरध/Revenue By: Dr. Sachin Kumar, Sr-Dr सुिवधई की तधरीख/Date Of Hearing: 02/09/2025 घोर्णध की तधरीख/Pronouncement: 26/09/2025 आदेश/Order Per Madhusudan Sawdia, A.M.: These Two Appeals Are Filed By M/S. Kapil Foods & Structures Pvt. Ltd. (“The Assessee”), Feeling Aggrieved By The Separate Orders Passed By The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi (“Ld. Cit(A)”), Both Dated 09.12.2024 For The A.Ys. 2016-17 & 2017-18. Since The Issues Involved In Both These Appeals Are Identical & Belong To The Same Assessee, One Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.

For Appellant: Shri S. Rama Rao, AdvocateFor Respondent: Dr. Sachin Kumar, SR-DR
Section 139Section 147Section 148Section 36(1)(iii)

…e by the Ld. AO was justified. In support of his submission, the Ld. DR relied on the decision of Hon’ble Madras High Court in K. Somasundaram & Brothers v. CIT dated 03.08.1998 and Hon’ble Punjab & Haryana High Court in CIT v. Abhishek Industries Ltd. (2006) 286 ITR 1. It ITA No.205/Hyd/2025 7 was argued that the ratio of these judgments applies squarely to the case of the assessee and the appeal of the assessee deserves dismissal. 9. We have heard rival submissions and perused the material available on record. As far as the admission of additional evidence is concerned, the assessee has filed audited balance s…

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, KOTA, KOTA vs. CHAMBAL FERTILIZERS AND CHEMICALS LTD., KOTA

ITA 1099/JPR/2024[2016-17]Status: DisposedITAT Jaipur27 Aug 2025AY 2016-17
For Appellant: Shri P.J. Pardiwala, AdvFor Respondent: Shri Rajesh Ojha, CIT &
Section 14ASection 36(1)Section 36(1)(iii)

…s failed to prove any commercial\nexpediency for utilizing interest-bearing borrowed funds for making investment in\nUnits of Mutual Funds) as well as in view of the decision of Hon'ble Punjab &\nHaryana High Court in the case of M/s Abhishek Industries Ltd. (286 ITR 1)\n(since the funds borrowed from various sources, internal accruals and\nassessee's own funds form part of a common kitty from where the assessee has\nutilized funds partly for business purposes and partly for non-business purposes\ni.e. for making investment in units of mutual funds without any commercial\nexpediency. However, no such disallowance…

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