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.

ACIT, Circle-1, Ludhiana vs. M/S Vardhman Textiles Ltd., Ludhiana

In the result, appeals of the Assessee are partly allowed whereas the Cross appeals of the Revenue are dismissed

ITA 117/CHANDI/2020[2015-16]Status: DisposedITAT Chandigarh14 Oct 2024AY 2015-16

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Tejmohan Singh, Advocate and Shri Pankaj Gupta, AdvocateFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 80I

…Subsidy under the Madhya Pradesh Industrial Promotion Assistance Scheme, 2004 as capital receipt without comparing the case with the analysis of the Punjab Government scheme, has made by Hon’ble Punjab & Haryana High Court in case of “Abhishek Industries Ltd. 286 ITR 1. 21.1 This issue has been decided in favour of the assessee by the Tribunal in the assessee’s own case for A.Y 2013-14 and 2014-15, holding the subsidy to be a capital receipt. The Department again states that it is before the Hon’ble High Court. However, no stay is in operation against the Tribunal order. The fact that the year under consideration…

M/S Vardhman Textiles Limited, Ludhiana vs. ACIT, C-1, Ludhiana

In the result, appeals of the Assessee are partly allowed whereas the Cross appeals of the Revenue are dismissed

ITA 486/CHANDI/2019[2013-14]Status: DisposedITAT Chandigarh14 Oct 2024AY 2013-14

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Tejmohan Singh, Advocate and Shri Pankaj Gupta, AdvocateFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 80I

…Subsidy under the Madhya Pradesh Industrial Promotion Assistance Scheme, 2004 as capital receipt without comparing the case with the analysis of the Punjab Government scheme, has made by Hon’ble Punjab & Haryana High Court in case of “Abhishek Industries Ltd. 286 ITR 1. 21.1 This issue has been decided in favour of the assessee by the Tribunal in the assessee’s own case for A.Y 2013-14 and 2014-15, holding the subsidy to be a capital receipt. The Department again states that it is before the Hon’ble High Court. However, no stay is in operation against the Tribunal order. The fact that the year under consideration…

DCIT, C-1, Ludhiana vs. M/S Vardhman Textiles Limited, Ludhiana

In the result, appeals of the Assessee are partly allowed whereas the Cross appeals of the Revenue are dismissed

ITA 260/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh14 Oct 2024AY 2014-15

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Tejmohan Singh, Advocate and Shri Pankaj Gupta, AdvocateFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 80I

…Subsidy under the Madhya Pradesh Industrial Promotion Assistance Scheme, 2004 as capital receipt without comparing the case with the analysis of the Punjab Government scheme, has made by Hon’ble Punjab & Haryana High Court in case of “Abhishek Industries Ltd. 286 ITR 1. 21.1 This issue has been decided in favour of the assessee by the Tribunal in the assessee’s own case for A.Y 2013-14 and 2014-15, holding the subsidy to be a capital receipt. The Department again states that it is before the Hon’ble High Court. However, no stay is in operation against the Tribunal order. The fact that the year under consideration…

M/S Vardhman Textiles Limited, Ludhiana vs. DCIT, C-1, Ludhiana

In the result, appeals of the Assessee are partly allowed whereas the Cross appeals of the Revenue are dismissed

ITA 187/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh14 Oct 2024AY 2014-15

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Tejmohan Singh, Advocate and Shri Pankaj Gupta, AdvocateFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 80I

…Subsidy under the Madhya Pradesh Industrial Promotion Assistance Scheme, 2004 as capital receipt without comparing the case with the analysis of the Punjab Government scheme, has made by Hon’ble Punjab & Haryana High Court in case of “Abhishek Industries Ltd. 286 ITR 1. 21.1 This issue has been decided in favour of the assessee by the Tribunal in the assessee’s own case for A.Y 2013-14 and 2014-15, holding the subsidy to be a capital receipt. The Department again states that it is before the Hon’ble High Court. However, no stay is in operation against the Tribunal order. The fact that the year under consideration…

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

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

ITA 394/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh04 Sept 2024AY 2014-15

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

For Appellant: Shri Vineet Krishan, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr.DR
Section 14ASection 195Section 40Section 40ASection 5(2)Section 6Section 9(1)

…92,24,578/- ITA Nos. 1033 & 960/2017 & ITA Nos. 389 & 394/CHD/2019 20 22.1 The AO disallowed interest on these advances, @ 12%. The AO placed reliance on the decision of the Hon'ble Punjab & Haryana High Court in the case of “M/s Abhishek Industries Ltd.” 286 ITR 1 (P&H). The AO observed that the interest paid by the assessee corresponding to the interest free advances, was to be allowed on a proportionate basis, the advances having not been made for business purposes. 23. The ld. CIT(A), confirmed the disallowance of interest on Rs.73,42,000/- advanced against land, Rs.2,92,578/- advanced to HSIDC, Panch…

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

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

ITA 389/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh04 Sept 2024AY 2014-15

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

For Appellant: Shri Vineet Krishan, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr.DR
Section 14ASection 195Section 40Section 40ASection 5(2)Section 6Section 9(1)

…92,24,578/- ITA Nos. 1033 & 960/2017 & ITA Nos. 389 & 394/CHD/2019 20 22.1 The AO disallowed interest on these advances, @ 12%. The AO placed reliance on the decision of the Hon'ble Punjab & Haryana High Court in the case of “M/s Abhishek Industries Ltd.” 286 ITR 1 (P&H). The AO observed that the interest paid by the assessee corresponding to the interest free advances, was to be allowed on a proportionate basis, the advances having not been made for business purposes. 23. The ld. CIT(A), confirmed the disallowance of interest on Rs.73,42,000/- advanced against land, Rs.2,92,578/- advanced to HSIDC, Panch…

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

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

ITA 960/CHANDI/2017[2013-14]Status: DisposedITAT Chandigarh04 Sept 2024AY 2013-14

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

For Appellant: Shri Vineet Krishan, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr.DR
Section 14ASection 195Section 40Section 40ASection 5(2)Section 6Section 9(1)

…92,24,578/- ITA Nos. 1033 & 960/2017 & ITA Nos. 389 & 394/CHD/2019 20 22.1 The AO disallowed interest on these advances, @ 12%. The AO placed reliance on the decision of the Hon'ble Punjab & Haryana High Court in the case of “M/s Abhishek Industries Ltd.” 286 ITR 1 (P&H). The AO observed that the interest paid by the assessee corresponding to the interest free advances, was to be allowed on a proportionate basis, the advances having not been made for business purposes. 23. The ld. CIT(A), confirmed the disallowance of interest on Rs.73,42,000/- advanced against land, Rs.2,92,578/- advanced to HSIDC, Panch…

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

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

ITA 1033/CHANDI/2017[2013-14]Status: DisposedITAT Chandigarh04 Sept 2024AY 2013-14

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

For Appellant: Shri Vineet Krishan, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr.DR
Section 14ASection 195Section 40Section 40ASection 5(2)Section 6Section 9(1)

…92,24,578/- ITA Nos. 1033 & 960/2017 & ITA Nos. 389 & 394/CHD/2019 20 22.1 The AO disallowed interest on these advances, @ 12%. The AO placed reliance on the decision of the Hon'ble Punjab & Haryana High Court in the case of “M/s Abhishek Industries Ltd.” 286 ITR 1 (P&H). The AO observed that the interest paid by the assessee corresponding to the interest free advances, was to be allowed on a proportionate basis, the advances having not been made for business purposes. 23. The ld. CIT(A), confirmed the disallowance of interest on Rs.73,42,000/- advanced against land, Rs.2,92,578/- advanced to HSIDC, Panch…

Pragati Power Corporation Ltd, New Delhi vs. ACIT, Circle 20(1), New Delhi

In the result, the appeal filed by the assessee is partly allowed as indicated above

ITA 1617/DEL/2023[2018-19]Status: DisposedITAT Delhi14 Aug 2024AY 2018-19

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI SUDHIR PAREEK (Judicial Member)

Section 115JSection 145(2)Section 32Section 36Section 36(1)(iii)Section 37Section 43ASection 46ASection 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’: NEW DELHI BEFORE, SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER Pragati Power Asst. CIT Corporation Ltd. Circle-20(1) Himadri Rajghat Power Vs. New Delhi House, Office Complex Rajghat New Delhi-110002 PAN:AACCP 8035F (Appellant) (Respondent) Assessee by Shri Ajay Vohra, Sr. Adv., Shri S. Krishnan, Adv. & Shri Shaurya Jain, CA Respondent by Ms. Nimisha Singh, CIT-DR Date of Hearing 20/05/2024 Date of Pronouncement 14/08/2024 O R D E R PER S.RIFAUR RAHMAN, AM: 1. This appeal has been filed by the Assessee against the o…

DCIT, Central Circle-1(2), Mumbai vs. Evita Construction Pvt. Limited, Mumbai

In the result, the appeal filed by the Revenue is dismissed

ITA 3914/MUM/2023[2015-16]Status: DisposedITAT Mumbai12 Aug 2024AY 2015-16

Bench: Shri B R Baskaran, Am & Ms. Kavitha Rajagopal, Jm Dcit, Central Circle-1(2) Evita Construction Pvt. Limited 906, Pratishtha Bhavan, 514, Dalal Tower 211, Vs. Old Cgo Building, M K Road, Fpj Marg, Nariman Point, Mumbai-400 020 Mumbai-400 021 Pan/Gir No. Aabce 7779 C (Assessee) : (Respondent) : Shri Pradip Kapasi Assessee By Respondent By : Shri P. D. Chougule : 16.05.2024 Date Of Hearing Date Of Pronouncement : 12.08.2024

For Respondent: Shri P. D. Chougule
Section 143(2)Section 143(3)Section 250Section 36(1)(va)

…rowed funds, there is no justification in holding that it had advanced interest free advances to its subsidiaries. The ld. A.O. relied on the decision of Hon'ble Punjab & Haryana High Court in the case of CIT vs. Abhishek Industries Ltd. 205 CTR P H 304, 2006 286 ITR 1 P H), wherein it was held that on identical facts, the Hon'ble High Court had disallowed the interest. The ld. A.O. disallowed the netting off thereby reducing the inventory in WIP from Rs.7,32,70,123/- to Rs.704,74,60,471/- and made an addition on the impugned interest income. The ld. CIT(A), on the other hand, held that the fixed deposits credi…

Income Tax Officer-12(2)(1), Mumbai vs. Elder Prroject Limited, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 677/MUM/2024[2013-14]Status: DisposedITAT Mumbai29 Jul 2024AY 2013-14

Bench: Shri Pavan Kumar Gadale & Smt Renu Jauhriito(It)-12(2)(1), Vs. Elder Project Ltd 301-302, Kunthu Room No. 145, 1St Floor, Commercial Centre, Aayakar Bhawan, 3Rd Floor, Plot No. 174, Churchgate, Near Ayyappa Temple, Mumbai – 400020. Bangur N, Goregaon (W), Mumbai-400090. Pan/Gir No. Aaace7387B (अपीलाथ"/Appellant) (""यथ"/Respondent)

Section 43B

…f 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…

Sundaram Fasteners Limited, Chennai vs. DCIT Corporate Circle 6(2), Chennai

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

ITA 3236/CHNY/2017[2013-14]Status: DisposedITAT Chennai26 Jul 2024AY 2013-14

Bench: Shri Aby T. Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita No.3236/Chny/2017 िनधा"रण वष"/Assessment Year: 2013-14 V. M/S.Sundram Fasteners Ltd., The Dcit, 98-A, 7Th Floor, Corporate Circle-6(2), Dr.Radhakrishnan Salai, Chennai. Mylapore, Chennai-600 004. [Pan: Aaacs 8779 D] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Vikaram VijayaraghavanFor Respondent: Shri A. Sasikumar, CIT

…आयकर अपीलीय अिधकरण, ’डी’ "यायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI "ी एबी टी. वक", "ाियक सद" एवं एवं एवं एवं "ी अिमताभ शु"ा, लेखा सद" के सम" BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3236/Chny/2017 िनधा"रण वष"/Assessment Year: 2013-14 v. M/s.Sundram Fasteners Ltd., The DCIT, 98-A, 7th Floor, Corporate Circle-6(2), Dr.Radhakrishnan Salai, Chennai. Mylapore, Chennai-600 004. [PAN: AAACS 8779 D] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant by : Shri Vikaram Vijayaraghavan, Advocate ""यथ" क" ओर से /R…

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

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

ITA 1318/CHANDI/2017[2013-14]Status: DisposedITAT Chandigarh21 Jun 2024AY 2013-14

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

For Appellant: Shri Parikshit Aggarwal, C.AFor Respondent: Smt. Amanpreet Kaur, Sr. DR
Section 129Section 142(1)Section 143(1)Section 143(2)Section 250Section 253Section 36Section 44A

…ight have reduced his liability to pay interest on loans to the extent of interest chargeable on interest free advance given. Keeping in view the judgment of Hon'ble Punjab and Haryana High Court in the case of CIT v/s Abhishek Inds. Ltd, Ludhiana reported at 286 ITR 1 (P&H), the proportionate amount of interest be disallowed from the interest claimed in the profit and loss account being interest chargeable on the interest free loan advanced by the assessee to above concern. 3.4 Further, the Hon'ble High Court of Punjab and Haryana's judgment in the case CIT Vs Kudu Industries, (2015)62 taxman.com 191 held that…

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)

…s; that the Tribunal was already seized of the issue of business expediency and in deciding the matter against the assessee, it had followed the decision of the ITA 350/CHD/2023 A.Y. 2017-18 9 jurisdictional High Court in the case of 'Abhishek Industries', 286 ITR 1 (P&H). It was observed that the assessee had submitted a chart in the appellate proceedings, to show that all the advances had been made to sister concerns out of the own funds of the assessee. It was observed that however, nothing could be discerned from the chart regarding the financial position of the assessee at the time when funds were adva…

The Shahabad Coop. Sugar Mills, Shahabad vs. ACIT, Circle, Kurukshetra

ITA 1492/CHANDI/2018[2012-13]Status: DisposedITAT Chandigarh28 May 2024AY 2012-13

Bench: Us In Terms Of Section 253 Of The Income Tax Act, 1961. 2. The Assessee Being Aggrieved By The Order Of Ld. Cit(A) Dt. 11/03/2018 Which Is Hereinafter Referred To As The Impugned Order, Before This Tribunal In Form No. 36 Has Interalia Raised The Following Grounds Of Appeal:

For Appellant: Shri Varun Gupta, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr. DR
Section 14Section 14ASection 253

…of the relevant accounting year. Thus it is impossible to ascertain whether the rupees that were invested in shares were out of the sale receipts or out of the borrowed funds. This view finds support in the decision in CIT vs. Abhishek Industries Ltd. [2006] 286 ITR 1 [P & H]. wherein the jurisdictional High Court holds that "Entire money in a business entity comes in a common kitty. The monies received as share capital, as term loan, as working capital loan, as sale proceeds etc. do not have any different colour. Whatever are the receipts in the business that have the colour of business receipts and have no sep…

DCIT, New Delhi vs. M/S Heritage Hospital Ltd., New Delhi

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

ITA 5629/DEL/2016[2012-13]Status: DisposedITAT Delhi28 May 2024AY 2012-13

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

For Appellant: Shri Anand Kumar Pandey, AdvFor Respondent: Shri Sandeep Kumar Mishra, Sr. DR
Section 40A(3)

…brought under the mischief of proviso of section 36(1)(iii). The AO has nowhere in his order established the fact that the assessee has diverted its interest bearing fund to its sister concern and hence his reliance on the cases of Abhisekh Industries Ltd 286 ITR 1(P&H) and H R Sugar Factory Pvt Ltd 187 ITR 363 (All)and other similar cases, do not come to his aid. We therefore are of the considered opinion that the CIT(A) decision to delete the addition needs no interference. The ground no 9 of the Revenue is accordingly dismissed. 63. In the result, the appeal of the Revenue in ITA No. 5629/DEL/2016 is di…

The Dy.Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad vs. M/S. Cadila Pharmaceuticals Ltd., Ahmedabad

In the result, appeals of the Revenue are dismissed and that of the assessee are allowed for statistical purposes

ITA 76/AHD/2020[2009-10]Status: DisposedITAT Ahmedabad17 Apr 2024AY 2009-10

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Bandish Soparkar, and Shri Parin Shah, Ars
Section 250(6)Section 40Section 9(1)(vii)

…the assessee for making aforesaid advances and accordingly noting that the assessee had incurred huge interest expenditure on loans taken, and following decisions of the Hon’ble Punjab Haryana High Court’s decision in the case of Abhishek Industries Vs. CIT, 286 ITR 1 (P&H), he disallowed interest in relation to this advance calculated at the ITA No.73 & 76/Ahd/2020, and ITA No.51 & 52/Ahd/2020 DCIT Vs. Cadila Pharmaceuticals Ltd. 32 rate of 9.5% on the same amounting to Rs.1,34,22,838/-. The ld.CIT(A) noted that identical disallowance of interest made on advances made to CHPL had been deleted by the ITAT in the…

The Dy.Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad vs. M/S. Cadila Pharmaceuticals Ltd., Ahmedabad

In the result, appeals of the Revenue are dismissed and that of the assessee are allowed for statistical purposes

ITA 73/AHD/2020[2008-09]Status: DisposedITAT Ahmedabad17 Apr 2024AY 2008-09

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Bandish Soparkar, and Shri Parin Shah, Ars
Section 250(6)Section 40Section 9(1)(vii)

…the assessee for making aforesaid advances and accordingly noting that the assessee had incurred huge interest expenditure on loans taken, and following decisions of the Hon’ble Punjab Haryana High Court’s decision in the case of Abhishek Industries Vs. CIT, 286 ITR 1 (P&H), he disallowed interest in relation to this advance calculated at the ITA No.73 & 76/Ahd/2020, and ITA No.51 & 52/Ahd/2020 DCIT Vs. Cadila Pharmaceuticals Ltd. 32 rate of 9.5% on the same amounting to Rs.1,34,22,838/-. The ld.CIT(A) noted that identical disallowance of interest made on advances made to CHPL had been deleted by the ITAT in the…

Cadila Pharmaceuticals Ltd., Ahmedabad vs. The Asst. Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad

In the result, appeals of the Revenue are dismissed and that of the assessee are allowed for statistical purposes

ITA 52/AHD/2020[2009-10]Status: DisposedITAT Ahmedabad17 Apr 2024AY 2009-10

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Bandish Soparkar, and Shri Parin Shah, Ars
Section 250(6)Section 40Section 9(1)(vii)

…the assessee for making aforesaid advances and accordingly noting that the assessee had incurred huge interest expenditure on loans taken, and following decisions of the Hon’ble Punjab Haryana High Court’s decision in the case of Abhishek Industries Vs. CIT, 286 ITR 1 (P&H), he disallowed interest in relation to this advance calculated at the ITA No.73 & 76/Ahd/2020, and ITA No.51 & 52/Ahd/2020 DCIT Vs. Cadila Pharmaceuticals Ltd. 32 rate of 9.5% on the same amounting to Rs.1,34,22,838/-. The ld.CIT(A) noted that identical disallowance of interest made on advances made to CHPL had been deleted by the ITAT in the…

Cadila Pharmaceuticals Ltd., Ahmedabad vs. The Asst. Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad

In the result, appeals of the Revenue are dismissed and that of the assessee are allowed for statistical purposes

ITA 51/AHD/2020[2008-09]Status: DisposedITAT Ahmedabad17 Apr 2024AY 2008-09

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Bandish Soparkar, and Shri Parin Shah, Ars
Section 250(6)Section 40Section 9(1)(vii)

…the assessee for making aforesaid advances and accordingly noting that the assessee had incurred huge interest expenditure on loans taken, and following decisions of the Hon’ble Punjab Haryana High Court’s decision in the case of Abhishek Industries Vs. CIT, 286 ITR 1 (P&H), he disallowed interest in relation to this advance calculated at the ITA No.73 & 76/Ahd/2020, and ITA No.51 & 52/Ahd/2020 DCIT Vs. Cadila Pharmaceuticals Ltd. 32 rate of 9.5% on the same amounting to Rs.1,34,22,838/-. The ld.CIT(A) noted that identical disallowance of interest made on advances made to CHPL had been deleted by the ITAT in the…