CIT v. Abhishek Industries Ltd.

286 ITR 1High Court2006#212 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 366,005 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.

Sh. Ashok Mittal, New Delhi vs. Addl. CIT, New Delhi

In the result, the appeals filed by the assessee are partly allowed, the

ITA 3307/DEL/2013[2001-02]Status: DisposedITAT Delhi30 Oct 2017AY 2001-02

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2001-02 Shri Ashok Mittal, Ito, Ward- 24(3), 42, Sainik Farms, Vs. New Delhi. New Delhi. Pan : Aaspm6882C (Appellant) (Respondent) Assessment Year : 2001-02 Acit, Circle- 24(1), Shri Ashok Mittal, New Delhi. Vs. 42, Sainik Farms, New Delhi. Pan : Aaspm6882C (Appellant) (Respondent)

For Appellant: Shri Gautam Jain, AdvFor Respondent: Shri R. C. Dande, Sr.DR
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year : 2001-02 Shri Ashok Mittal, ITO, Ward- 24(3), 42, Sainik Farms, Vs. New Delhi. New Delhi. PAN : AASPM6882C (Appellant) (Respondent) Assessment Year : 2001-02 ACIT, Circle- 24(1), Shri Ashok Mittal, New Delhi. Vs. 42, Sainik Farms, New Delhi. PAN : AASPM6882C (Appellant) (Respondent) C.O. No.257/Del/2009 (In ITA No.2997/Del/2009) Assessment Year : 2001-02 Shri Ashok Mittal, ACIT, Circle- 24(1), 42, Sainik Farms, Vs. New Delhi. New Delhi. PAN : AAS…

ACIT, New Delhi vs. M/S. Ashok Mittal, New Delhi

In the result, the appeals filed by the assessee are partly allowed, the

ITA 2997/DEL/2009[2001-02]Status: DisposedITAT Delhi30 Oct 2017AY 2001-02

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2001-02 Shri Ashok Mittal, Ito, Ward- 24(3), 42, Sainik Farms, Vs. New Delhi. New Delhi. Pan : Aaspm6882C (Appellant) (Respondent) Assessment Year : 2001-02 Acit, Circle- 24(1), Shri Ashok Mittal, New Delhi. Vs. 42, Sainik Farms, New Delhi. Pan : Aaspm6882C (Appellant) (Respondent)

For Appellant: Shri Gautam Jain, AdvFor Respondent: Shri R. C. Dande, Sr.DR
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year : 2001-02 Shri Ashok Mittal, ITO, Ward- 24(3), 42, Sainik Farms, Vs. New Delhi. New Delhi. PAN : AASPM6882C (Appellant) (Respondent) Assessment Year : 2001-02 ACIT, Circle- 24(1), Shri Ashok Mittal, New Delhi. Vs. 42, Sainik Farms, New Delhi. PAN : AASPM6882C (Appellant) (Respondent) C.O. No.257/Del/2009 (In ITA No.2997/Del/2009) Assessment Year : 2001-02 Shri Ashok Mittal, ACIT, Circle- 24(1), 42, Sainik Farms, Vs. New Delhi. New Delhi. PAN : AAS…

Ashok Mittal vs. ITO, Ward-24(3)

In the result, the appeals filed by the assessee are partly allowed, the

ITA 3764/DEL/2004[2001-2002]Status: DisposedITAT Delhi30 Oct 2017AY 2001-2002

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2001-02 Shri Ashok Mittal, Ito, Ward- 24(3), 42, Sainik Farms, Vs. New Delhi. New Delhi. Pan : Aaspm6882C (Appellant) (Respondent) Assessment Year : 2001-02 Acit, Circle- 24(1), Shri Ashok Mittal, New Delhi. Vs. 42, Sainik Farms, New Delhi. Pan : Aaspm6882C (Appellant) (Respondent)

For Appellant: Shri Gautam Jain, AdvFor Respondent: Shri R. C. Dande, Sr.DR
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year : 2001-02 Shri Ashok Mittal, ITO, Ward- 24(3), 42, Sainik Farms, Vs. New Delhi. New Delhi. PAN : AASPM6882C (Appellant) (Respondent) Assessment Year : 2001-02 ACIT, Circle- 24(1), Shri Ashok Mittal, New Delhi. Vs. 42, Sainik Farms, New Delhi. PAN : AASPM6882C (Appellant) (Respondent) C.O. No.257/Del/2009 (In ITA No.2997/Del/2009) Assessment Year : 2001-02 Shri Ashok Mittal, ACIT, Circle- 24(1), 42, Sainik Farms, Vs. New Delhi. New Delhi. PAN : AAS…

Kuloday Technopack P. Ltd, Mumbai vs. ITO 8(2)(2), Mumbai

In the result, appeal of the assessee in ITA No

ITA 3300/MUM/2013[2009-10]Status: DisposedITAT Mumbai29 Sept 2017AY 2009-10

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 3300/Mum/2013 (नििाारण वर्ा / Assessment Year : 2009-10 ) आयकर अपीऱ सं./I.T.A. No. 2423/Mum/2014 (नििाारण वर्ा / Assessment Year : 2010-11)

For Appellant: Shri. M. SubramanianFor Respondent: Shri Rajesh Kumar Yadav,DR
Section 143(3)Section 154Section 172Section 172(1)Section 194CSection 195Section 40

…Kuloday Udyog and disallowance of interest @ 12% is not correct. I find that the position in this regard is well settled by the Hon'ble Punjab & Haryana High Court in the case of Abhishek Industries Ltd. In the case of CIT vs. Abhishek Industries Ltd. (2006) 286 ITR 1 (P&H) the Hon'ble High Court held as under:- "Besides raising substantial amount of term loan which, according to the assessee, is required to be repaid as per the fixed schedule agreed to at the time of disbursement of loan, there was substantial amount of loan in the form of working capital which was not required to be returned after any specifi…

Allen Career Institute, Jaipur vs. JCIT, Kota

In the result, the ground no

ITA 10/JPR/2013[2009-10]Status: DisposedITAT Jaipur27 Sept 2017AY 2009-10
For Appellant: Shri Mahendra Gargieya (Adv) &For Respondent: Shri R.A. Verma (Addl.CIT)
Section 143(3)Section 14ASection 234ASection 244A

…o net interest outgo calculated @ 0.25%. 11. The Assessing Officer however did not find any of the contentions of the assessee acceptable and relying on the decision of the Hon’ble Punjab and Haryana High Court in the case of CIT Vs. Abhishek Industries Ltd. 286 ITR 1, held that onus is on the assessee to prove that whatever loans were raised by the assessee, the same were used for business purposes. It was further held that the business of the assessee is running of coaching classes for students and not purchase & sale of Mutual Funds Units. It was further held that the assessee has failed to prove any business…

DCIT, Circle-12(1), Kolkata vs. M/S Dalmia Securities Pvt. Ltd., Kolkata

In the result, the appeal filed by the assessee ( in ITA no

ITA 2078/KOL/2016[2011-12]Status: DisposedITAT Kolkata31 Aug 2017AY 2011-12

Bench: Shri N. V. Vasudevan, Jm & Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1937/Kol/2016 (िनधा"रणवष" / Assessment Year: 2011-12 Dalmia Securities (P) Ltd. Vs. D.C.I.T, Cir-12, Kolkata Ideal Plaza, 4Th Floor, 11/1 Sarat Bose Aayakarbhawan, P-7, Rood, Kolkata – 700 069. Chowrighee Square, Kolkata – 700 069. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aabcd1813G (Assessee) .. (Revenue/Department) आयकरअपीलसं./Ita No.2078/Kol/2016 (िनधा"रणवष" / Assessment Year: 2011-12 D.C.I.T, Cir-12, Kolkata Vs. Dalmia Securities (P) Ltd. Aayakarbhawan, P-7, Ideal Plaza, 4Th Floor, 11/1 Chowrighee Square, Kolkata – Sarat Bose Rood, Kolkata – 700 069. 700 069. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aabcd 1813 G (Revenue/Department) .. (Assessee) िनधा"रतीकीओरसे /Assessee By : Shri Asim Choudhury, Advocate राज"कीओरसे /Revenue By :Shri Sallongyaden, Acit, Dr सुनवाईकीतारीख/ Date Of Hearing : 16/08/2017 घोषणाकीतारीख/Date Of Pronouncement: 31/08/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Two Cross-Appeals Filed By The Assessee & Revenue Pertaining To Assessment Year 2011-12, Is Directed Against The Order Passed By The Ld. Cit(A), Kolkata In Appeal No.499/Cit(A)-18/11-12/Cir- 12(1)/Kol, Dated 08.08.2016, Which Is Turn Arises Out Of An Order Passed By The Assessing Officer U/S143(3) Of The Income Tax Act, 1961,(Herein After Referred To As The ‘Act’), Dated 21.02.2014. 2. These Two Cross-Appeals Filed By The Assessee & Revenue Respectively Relate To The Same Assessee, Same Assessment Year, Identical

For Appellant: Shri Asim Choudhury, AdvocateFor Respondent: Shri SallongYaden, ACIT, DR
Section 143(3)Section 14A

…e assessee that no interest was incurred for making investment is not acceptable because assessee has still paid net interest of Rs.82,92,760/-. The ld CIT(A) noted that as held by Hon'ble Punjab and Haryana High Court in the case of Abhishek lndustries ltd., 286 ITR 1, all the funds of a Company, be it from share capital, loans, sales receipts etc. go in a common kitty. Thus it is very difficult to say which fund has been invested in shares. Was it assessee's own fund or it was out of the loans and advances taken? Besides assessee has not provided details which would conclusively establish one to one corresponde…

Dalmia Securities Private Limited, Kolkata vs. DCIT, Circle-12, Kolkata

In the result, the appeal filed by the assessee ( in ITA no

ITA 1937/KOL/2016[2011-12]Status: DisposedITAT Kolkata31 Aug 2017AY 2011-12

Bench: Shri N. V. Vasudevan, Jm & Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1937/Kol/2016 (िनधा"रणवष" / Assessment Year: 2011-12 Dalmia Securities (P) Ltd. Vs. D.C.I.T, Cir-12, Kolkata Ideal Plaza, 4Th Floor, 11/1 Sarat Bose Aayakarbhawan, P-7, Rood, Kolkata – 700 069. Chowrighee Square, Kolkata – 700 069. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aabcd1813G (Assessee) .. (Revenue/Department) आयकरअपीलसं./Ita No.2078/Kol/2016 (िनधा"रणवष" / Assessment Year: 2011-12 D.C.I.T, Cir-12, Kolkata Vs. Dalmia Securities (P) Ltd. Aayakarbhawan, P-7, Ideal Plaza, 4Th Floor, 11/1 Chowrighee Square, Kolkata – Sarat Bose Rood, Kolkata – 700 069. 700 069. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aabcd 1813 G (Revenue/Department) .. (Assessee) िनधा"रतीकीओरसे /Assessee By : Shri Asim Choudhury, Advocate राज"कीओरसे /Revenue By :Shri Sallongyaden, Acit, Dr सुनवाईकीतारीख/ Date Of Hearing : 16/08/2017 घोषणाकीतारीख/Date Of Pronouncement: 31/08/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Two Cross-Appeals Filed By The Assessee & Revenue Pertaining To Assessment Year 2011-12, Is Directed Against The Order Passed By The Ld. Cit(A), Kolkata In Appeal No.499/Cit(A)-18/11-12/Cir- 12(1)/Kol, Dated 08.08.2016, Which Is Turn Arises Out Of An Order Passed By The Assessing Officer U/S143(3) Of The Income Tax Act, 1961,(Herein After Referred To As The ‘Act’), Dated 21.02.2014. 2. These Two Cross-Appeals Filed By The Assessee & Revenue Respectively Relate To The Same Assessee, Same Assessment Year, Identical

For Appellant: Shri Asim Choudhury, AdvocateFor Respondent: Shri SallongYaden, ACIT, DR
Section 143(3)Section 14A

…e assessee that no interest was incurred for making investment is not acceptable because assessee has still paid net interest of Rs.82,92,760/-. The ld CIT(A) noted that as held by Hon'ble Punjab and Haryana High Court in the case of Abhishek lndustries ltd., 286 ITR 1, all the funds of a Company, be it from share capital, loans, sales receipts etc. go in a common kitty. Thus it is very difficult to say which fund has been invested in shares. Was it assessee's own fund or it was out of the loans and advances taken? Besides assessee has not provided details which would conclusively establish one to one corresponde…

Commissioner of Income Tax vs. M/S International Tractors Ltd

ITA/1082/2005HC Delhi20 Jul 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 147Section 260ASection 80

…(India) Ltd. v. CIT (2015) 379 ITR 222 (Del); Malabar Industrial Co. Ltd. v. CIT (2000) 243 ITR 83 (SC); CIT v. Electro House (1971) 82 ITR 824 (SC); CIT v. Infosys Technologies Limited (2012) 214 ITR 293 (Kar.); CIT v. Abhishek Industries Limited (2006) 286 ITR 1 (P&H). 26. Mr. Manchanda gave a second set of written submissions on 1st May, 2017, this time running into 9 pages. Apart from repeating many of the arguments already made earlier, he also referred to a host of decisions of ITAT directly on the point favouring the Revenue. The Court declines to name all of them since in any event such deci…

Commissioner of Income Tax Delhi IV vs. International Tractors Ltd

ITA/690/2008HC Delhi20 Jul 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 147Section 260ASection 80

…(India) Ltd. v. CIT (2015) 379 ITR 222 (Del); Malabar Industrial Co. Ltd. v. CIT (2000) 243 ITR 83 (SC); CIT v. Electro House (1971) 82 ITR 824 (SC); CIT v. Infosys Technologies Limited (2012) 214 ITR 293 (Kar.); CIT v. Abhishek Industries Limited (2006) 286 ITR 1 (P&H). 26. Mr. Manchanda gave a second set of written submissions on 1st May, 2017, this time running into 9 pages. Apart from repeating many of the arguments already made earlier, he also referred to a host of decisions of ITAT directly on the point favouring the Revenue. The Court declines to name all of them since in any event such deci…

Commissioner of Income Tax (Ltu) vs. International Tractors Limited

ITA/1189/2009HC Delhi20 Jul 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 147Section 260ASection 80

…(India) Ltd. v. CIT (2015) 379 ITR 222 (Del); Malabar Industrial Co. Ltd. v. CIT (2000) 243 ITR 83 (SC); CIT v. Electro House (1971) 82 ITR 824 (SC); CIT v. Infosys Technologies Limited (2012) 214 ITR 293 (Kar.); CIT v. Abhishek Industries Limited (2006) 286 ITR 1 (P&H). 26. Mr. Manchanda gave a second set of written submissions on 1st May, 2017, this time running into 9 pages. Apart from repeating many of the arguments already made earlier, he also referred to a host of decisions of ITAT directly on the point favouring the Revenue. The Court declines to name all of them since in any event such deci…

DCIT, Faridabad vs. M/S. Richa Holdings Ltd., Faridabad

In the result departmental appeal is dismissed

ITA 555/DEL/2014[2009-10]Status: DisposedITAT Delhi25 May 2017AY 2009-10

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi Assessment Year : 2009-10

For Appellant: Department byFor Respondent: Shri Vijay Kumar Singla, CA
Section 14ASection 8D

…vances, which can only be said personal or not wholly and exclusively for the purpose of the business of the assessee, particularly in the light of the judgment of the jurisdictional High Court in view of the decision of [CIT vs Abhisek Industries Ltd. (2006) 286 ITR 1 (P & H)” Page 1 of 7 2. Briefly the facts of the case on ground No. 1 are that the Assessing Officer on perusal of the balance sheet found that assessee had made investment in M/s. Richa industries Ltd. The Assessing Officer issued notice to the assessee as to why investment in M/s Richa Industries Ltd. should not be covered u/s 14A of the I.T.…

DCIT (Ltu), New Delhi vs. M/S. Hero Motors Ltd., New Delhi

The appeal is dismissed

ITA 4316/DEL/2014[2010-11]Status: DisposedITAT Delhi15 May 2017AY 2010-11

Bench: Shri N. K. Saini & Ms Suchitra Kamble

Section 14A

…nces without impression being given to related concerns or without any commercial reason particularly without its financial condition was bad. The Assessing Officer also relied on Hon’ble Punjab & Haryana High Court in case of CIT Vs. Abhishek Industries Ltd. 286 ITR 1 where in it was held that as per the issue of establishment of nexus of funds borrowed vis-à-vis funds diverted towards sister concern on interest free basis is concerned. In our view, the stand of the assessee that onus of nexus of fund available by the assessee with funds advance to sister concern without interest is on revenue is not correct. Th…

DCIT, CC-Xvi, Kolkata vs. South Asian Petrochem Ltd, Kolkata

In the result, appeals of Revenue stand dismissed

ITA 1222/KOL/2014[2006-2007]Status: DisposedITAT Kolkata03 May 2017AY 2006-2007

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmedassessment Year :2006-07

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “A” KOLKATA Before Shri N.V.Vasudevan, Judicial Member and Shri Waseem Ahmed, Accountant Member Assessment Year :2006-07 DCIT, Central Circle- V/s. South Asian Petrochem XVI, Aayakar Ltd. Dhunseri House, 4A, Bhawan, Poorva, 110, Woodburn Park, Kolkata- Shantipally, 4th Floor, 700 020 Kolkata-107 [PAN No.AADCS 8049 M] .. अपीलाथ" /Appellant ""यथ"/Respondent ITA No.1223-1224/Kol/2014 Assessment Year:2007-08 & 2009-10 DCIT, Central Circle- V/s. Dhunseri Petrochem & Tea XVI, Aayakar Ltd. (successor on Bhawan, Poorva, 110, amalgamation of South Shantipally, 4th F…

Virender Kumar Gupta, Gurgaon vs. ITO, Gurgaon

In the result, the appeal of the assessee is allowed

ITA 6293/DEL/2016[2013-14]Status: DisposedITAT Delhi25 Apr 2017AY 2013-14

Bench: Shri B.P. Jainassessment Years 2013-14 Vs. Income Tax Officer, Virender Kumar Gupta, Nai Anaj Mandi, Ward-4(5), Gurgaon. Farrukhnagar. Pan: Abtpg 0018L (Appellant) (Respondent) Assessee(S) By : S/Shri Gautam Jain, Adv. & P.K. Kamal, Adv. Revenue By : Ms. Bedobani Chaudhuri, D.R. सुनवाई क" तार"ख/Date Of Hearing : 20/04/2017 घोषणा क" तार"ख /Date Of Pronouncement: 25/04/2017 Order This Appeal Of The Assessee Arises From The Order Of Learned Cit(A)-I, Gurgaon, Vide Order Dated 14.10.2016 For The Assessment Year 2013-14. 2. The Assessee Has Raised The Following Grounds Of Appeal.

For Respondent: Ms. Bedobani Chaudhuri
Section 143(3)Section 36(1)(iii)Section 40A(2)(b)

…heard the rival contentions and perused the facts of the case. It was argued by the learned counsel for the assessee, Mr. Gautam Jain, Adv. that the decision of Hon’ble Punjab and Haryana High Court in the case of CIT vs. Abhishek Industries Ltd. reported in 286 ITR 1 (P &H) is no longer a good law in view of the decision of Hon’ble Supreme Court in the case of Hero Cycles Pvt. Ltd. vs. CIT reported in 379 ITR 347. The relevant decision in the case of Hero Cycles Pvt. Ltd. is reproduced hereinbelow: “A perusal of the order passed by the High Court would reveal that the High Court has not at all discussed the af…

DCIT, New Delhi vs. M/S. Mira Exim Ltd., New Delhi

In the result, the Appeal of the Revenue and the Cross Objection of the assessee are dismissed

ITA 125/DEL/2014[2009-10]Status: DisposedITAT Delhi24 Apr 2017AY 2009-10

Bench: Shri I.C. Sudhir & Shri B.P. Jainassessment Year 2009-10 Dcit, Vs. Mira Exim Ltd. Circle-6(1), Room No.413, 523-24, World Trade C.R. Building I.P. Estate, Centre, New Delhi. Barakhamba Road, New Delhi. Pan: Aaacm 2066M (Appellant) (Respondent)

For Respondent: S/Shri H.K. Chaudhary CIT-DR and Rajesh Kumar, Sr.D.R
Section 40Section 9Section 9(1)(vii)

…red in deleting the disallowance of interest payment of 1,02,22,500/-, made by the A.D. on account of interest free advance given to that the daughter of the Managing Director of assessee Company, by not considering the case of CIT v. Abhishek Industries Ltd. 286 ITR 1 in which the Hon'ble Punjab and Haryana High Court has held that the onus of establishing the nexus between the interest free funds and advances is on the assessee and receipts from all sources go in a common kitty? 6. That the order of the Ld. CIT(A) is erroneous and is not tenable on facts and in law. 7. That the grounds of appeal are without p…

DCIT, New Delhi vs. M/S. Federal Mogul Goetze India Ltd., Delhi

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

ITA 3441/DEL/2014[2004-05]Status: DisposedITAT Delhi20 Apr 2017AY 2004-05

Bench: Shri N.K. Saini & Shri Amit Shukla

For Appellant: Sh. Pradeep Dinsdia, AdvocateFor Respondent: Sh. Anil Kumar Sharma, Sr. DR
Section 143(1)Section 143(3)Section 144Section 147Section 147oSection 263Section 43Section 43BSection 44A

…l basis. The ld. Assessing Officer, held that since it was interest free loan given to the subsidiary, therefore, disallowance of interest has to be made in view of the decision of Hon’ble Punjab and Haryana High Court in the case of Abhishek Industries Ltd. (286 ITR 1) and accordingly, worked out the disallowance at Rs. 96,42,800/- which was @ 12%. 12. Before the Learned CIT (Appeals), assessee submitted that, first of all, the said loan (in the form of incurring the expenditure on behalf of its subsidiary) was given out of business expediency and commercial relation between the assessee and subsidiary; and sec…

Sh. Braham Dev Gupta, New Delhi vs. Pr. CIT, New Delhi

ITA 2102/DEL/2016[2011-12]Status: DisposedITAT Delhi13 Apr 2017AY 2011-12

Bench: Shri G.D. Agrawal & Shri Kuldip Singh

For Appellant: Shri Salil Agarwal, Adv., Sanjiv Jain CAFor Respondent: Shri A.K. Saroha, CIT DR
Section 143(2)Section 143(3)Section 263

…has failed to make any enquiry as regards to business purposes of making such loans and advances. There could have been disallowance of interest u/s 36(1)(iii) following the decision of Hon'ble Punjab and Haryana High Court in the case of Abhishek Industries 286 ITR 1. 28 Assessment year: 2011-12 6. The assessee has shown loans from various persons. The assessing officer placed on record the banks statement of a few persons from whom the assessee has received loans. The assessing officer has failed to examine the genuineness of the transactions. No enquiry has been raised as regards nature of source of credit i…

DCIT, Chennai vs. Mustang Trading & Investments Pvt. Ltd., Chennai

In the result, the appeal of the Revenue is dismissed

ITA 3309/CHNY/2016[2012-13]Status: DisposedITAT Chennai12 Apr 2017AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

For Appellant: Mr.G.Gireesh, CAFor Respondent: 22.02.2017
Section 32Section 36(1)(iii)

…ances given to subsidiaries / associate companies was made as a measure of commercial expediency as held in the case of CIT vs S.A.Builders (288 ITR 1). 3.3 Having regard to the decision of Hon’ble High Courts in the cases of CIT v. Abhishek Industries Ltd. (286 ITR 1)(P & H) and CIT v. V.I. Baby & Co. (254 ITR 248)(Ker.), the CIT(A) ought to have upheld the impugned disallowance made u/s.36(1)(iii). 4. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer restored. Delay: The revenue has fil…

A.C.I.T.. Cir.-2, Nagpur vs. M/S Sunvijay Rolling and Enginering Ltd, Nagpur

In the result, this appeal by the Revenue stands dismissed

ITA 224/NAG/2015[2012-13]Status: DisposedITAT Nagpur30 Mar 2017AY 2012-13

Bench: Shri Shamim Yahya & Shri Ram Lal Negi..

For Appellant: Shri A.R. NinaweFor Respondent: Shri K.P. Dewani

…1 ITA No. 224/Nag/2015. IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER.. I.T.A. No. 224/Nag/2015 Assessment Year : 2012-13. Asstt. Commissioner of Income-tax, M/s Sanvijay Rolling and Circld-2, Nagpur. Vs. Engineering Ltd., Nagpur. PAN AACCS0217J. Appellant. Respondent. Appellant by : Shri A.R. Ninawe. Respondent by : Shri K.P. Dewani. Date of Hearing : 30-03-2017. Date of Pronouncement : 30th March, 2017. O R D E R. PER SHAMIM YAHYA, A.M. : This appeal by the Revenue is directed against the order of learned CIT(App…

Sh. Vineet Maini, Hisar vs. ITO, Hisar

In the result, the appeal of the assessee is allowed for statistical

ITA 5240/DEL/2016[2010-11]Status: DisposedITAT Delhi28 Mar 2017AY 2010-11

Bench: Shri S.V. Mehrotraassessment Year : 2010-11 Vineet Maini, Ito, Ward- 4, Prop. M/S Martin & Brown Hisar. Vs. Pharmaceuticals, Sector – 27 -28, Hisar. Pan : Aaxpm 6619 G (Appellant) (Respondent)

For Appellant: Shri Kuldip Khera, CAFor Respondent: Ms. Bedobani Chaudhuri, Sr.DR
Section 143(3)Section 80

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER Assessment Year : 2010-11 Vineet Maini, ITO, Ward- 4, Prop. M/s Martin & Brown Hisar. Vs. Pharmaceuticals, Sector – 27 -28, Hisar. PAN : AAXPM 6619 G (Appellant) (Respondent) Appellant by : Shri Kuldip Khera, CA Respondent by : Ms. Bedobani Chaudhuri, Sr.DR Date of hearing : 03-03-2017 Date of pronouncement : 28-03-2017 O R D E R PER S.V. MEHROTRA, A.M : This is an appeal filed by the assessee against the order dated 25.07.2016 passed by the Commissioner of Income Tax (Appeals), Hisar, u/s 143(3) of…