CIT v. HDFC Bank Ltd.

366 ITR 505High Court2014#34 most cited

What is CIT v. HDFC Bank Ltd. authority for?

When an assessee possesses interest-free funds sufficient to cover investments yielding tax-free income, it is presumed that such investments were made from these interest-free funds, precluding disallowance of interest expenditure under Section 14A.

1,261

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v HDFC Bank Ltd · 366 ITR 505 · Section 14A disallowance · interest expenditure · exempt income · interest-free funds · own funds · presumption · sufficiency of funds · dividend income · Rule 8D

Also reported as

49 Taxmann.com 335226 Taxmann 132107 DTR 140

Sections most often in play

Section 14ASection 143(3)Section 115JBSection 37(1)Section 36(1)(iii)Section 8DSection 10(34)Section 148

Issues it is cited on

disallowance of interest expendituredisallowance under section 14adisallowance u/s 14asection 14abook profitsrevenue expendituresection 115jsection 115jbsection 32capital expendituresection 37(1)section 36

Judgments citing CIT v. HDFC Bank Ltd.

D. Sathyamoorthi, Chennai vs. DCIT, Corporate Circle - 6 (1), Chennai

The appeal stand allowed

ITA 1749/CHNY/2019[2014-15]Status: DisposedITAT Chennai05 Sept 2023AY 2014-15

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.1749/Chny/2019 (िनधा"रण वष" / Assessment Year: 2014-15) Shri D. Sathyamoorthi Dcit बनाम New No.11, Old No.5, Corporate Circle-6(1), Bishop Wallers Avenue(West), Chennai. / Vs. Mylapore, Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aasps-3613-H (अपीलाथ"/Appellant) : (!"थ" / Respondent) अपीलाथ" की ओरसे/ Appellant By : Shri I.Dinesh (Advocate)-Ld.Ar !"थ" की ओरसे/Respondent By : Shri Ar.V. Sreenivasan (Addl.Cit)-Ld. Sr. Dr सुनवाई की तारीख/Date Of Hearing : 05-09-2023 घोषणा की तारीख /Date Of Pronouncement : 05-09-2023 आदेश / O R D E R

For Appellant: Shri I.Dinesh (Advocate)-Ld.ARFor Respondent: Shri AR.V. Sreenivasan (Addl.CIT)-Ld
Section 143(3)Section 14A

…आयकर अपीलीय अिधकरण “बी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी वी. दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.1749/Chny/2019 (िनधा"रण वष" / Assessment Year: 2014-15) Shri D. Sathyamoorthi DCIT बनाम New No.11, Old No.5, Corporate Circle-6(1), Bishop Wallers Avenue(West), Chennai. / Vs. Mylapore, Chennai-600 004. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AASPS-3613-H (अपीलाथ"/Appellant) : (!"थ" / Respondent) अपीलाथ" की ओरसे/ Appellant by : Shri I.Dinesh (…

Mondelez India Foods P.Ltd, Mumbai vs. Asst CIT RG 5(1)(2), Mumbai

ITA 1518/MUM/2017[2012-13]Status: DisposedITAT Mumbai31 Aug 2023AY 2012-13

Bench: Vikas Awasthy () & Ms. Padmavathy S. ()

Section 143(3)Section 144C(13)Section 14ASection 234ASection 234C

…6 ITA 1518/Mum/2017 Mondelez International presumption that the investments were out of surplus funds stood in assessee‟s favor by the judgments of Hon‟ble Bombay High Court rendered in in HDFC Bank Ltd. V/s CIT (2016 95 CCH 61) & CIT V/s HDFC Bank Ltd. (2014 366 ITR 505). 5.3 We have considered the same. Upon perusal of financial statements, we find that own funds in the shape of share capital & free reserves at yearend stood at Rs.46266.97 Lacs as against investment of Rs.31228.98 Lacs. Nothing has been brought on record by Ld. AO to establish the nexus of investments with borrowed funds. In fact, opening inves…

Mondelez India Foods P. Ltd, Mumbai vs. DCIT RG 5(1)(2), Mumbai

ITA 1240/MUM/2016[2011-12]Status: DisposedITAT Mumbai31 Aug 2023AY 2011-12

Bench: Vikas Awasthy () & Ms. Padmavathy S. ()

Section 143(3)Section 144C(13)Section 14ASection 234ASection 234C

…6 ITA 1518/Mum/2017 Mondelez International presumption that the investments were out of surplus funds stood in assessee‟s favor by the judgments of Hon‟ble Bombay High Court rendered in in HDFC Bank Ltd. V/s CIT (2016 95 CCH 61) & CIT V/s HDFC Bank Ltd. (2014 366 ITR 505). 5.3 We have considered the same. Upon perusal of financial statements, we find that own funds in the shape of share capital & free reserves at yearend stood at Rs.46266.97 Lacs as against investment of Rs.31228.98 Lacs. Nothing has been brought on record by Ld. AO to establish the nexus of investments with borrowed funds. In fact, opening inves…

Ashok Kumar Chitlangia, New Delhi vs. ITO Ward-28(1), New Delhi

In the result, the appeal of the assessee for AY 2011-12 is

ITA 3928/DEL/2019[2011-12]Status: DisposedITAT Delhi30 Aug 2023AY 2011-12

Bench: SHRI M. BALAGANESH (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

Section 133(6)Section 143(3)

…d is placed on the decision of Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities & Power Ltd. reported in 313 ITR Page 12 of 13 ITA Nos.3927 & 3928/Del/2019 Ashok Kumar Chitlangia vs. ACIT 340 (Bom) and CIT vs. HDFC Bank Ltd. reported in 366 ITR 505. Accordingly, the ground No.4 raised by the assessee is allowed. 18. The ground Nos.5 & 6 raised by the assessee are general in nature and does not require any specific adjudication. 19. In the result, the appeal of the assessee for AY 2011-12 is partly allowed. 20. To sum up both the appeals are partly allowed. Order pronounced in the open…

Ashok Kumar Chitlangia, New Delhi vs. ACIT Circle-28(1), New Delhi

In the result, the appeal of the assessee for AY 2011-12 is

ITA 3927/DEL/2019[2010-11]Status: DisposedITAT Delhi30 Aug 2023AY 2010-11

Bench: SHRI M. BALAGANESH (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

Section 133(6)Section 143(3)

…d is placed on the decision of Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities & Power Ltd. reported in 313 ITR Page 12 of 13 ITA Nos.3927 & 3928/Del/2019 Ashok Kumar Chitlangia vs. ACIT 340 (Bom) and CIT vs. HDFC Bank Ltd. reported in 366 ITR 505. Accordingly, the ground No.4 raised by the assessee is allowed. 18. The ground Nos.5 & 6 raised by the assessee are general in nature and does not require any specific adjudication. 19. In the result, the appeal of the assessee for AY 2011-12 is partly allowed. 20. To sum up both the appeals are partly allowed. Order pronounced in the open…

Iot Infrastrcture & Energy Services Ltd, Mumbai vs. Addl CIT 10(3), Mumbai

In the result, both the appeals of the assessee are partly allowed

ITA 3687/MUM/2016[2010-11]Status: DisposedITAT Mumbai28 Aug 2023AY 2010-11

Bench: Shri B.R. Baskaran (Am) & Shri Narender Kumar Choudhry (Jm)

Section 14ASection 234A

…e observations made by him in paragraph 5.7 above. If the own funds available with the assessee is more than the investment, no disallowance out of interest expenditure is called for as held by Hon'ble Bombay High Court in the case of HDFC Bank Ltd. Vs. DCIT (366 ITR 505). Accordingly we direct the Assessing Officer to delete the disallowance made out of interest expenditure. 7.2 with regard to the disallowance out of administrative expenses made under rule 8D(2)(iii) of the I.T. Rules, it is the submission of learned AR that the Assessing Officer has considered the value of foreign investments and also investme…

Girnar Software Private Limited, 6Th Floor, Jaipur Textile Market, B-2, Near Model Town, Malviya Nagar, Jaipur vs. PCIT – 2, Jaipur, New Central Revenue Building

In the result, the appeal of the assessee is allowed

ITA 330/JPR/2023[2018-19]Status: DisposedITAT Jaipur28 Aug 2023AY 2018-19

Bench: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri PC Parwal, CAFor Respondent: Shri Arvind Kumar (CIT)
Section 142(1)Section 143(2)Section 14ASection 263

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Jh lanhi xkslkbZ] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;arHkkbZ] ys[kk lnL; ds le{k BEFORE: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 330/JP/2023 fu/kZkj.k o"kZ@Assessment Year : 2018-19. cuke Girnar Software Pvt. Ltd., The PCIT-2, 6th Floor, Jaipur Textile Market, Vs. Jaipur. B-2, Near Model Town, Malviya Nagar, Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No. AACCG 7277 J vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Sh…

Puspak Steel Industries Private Limited, Pune vs. Assistant Commissioner of Income Tax, Circle-10, Pune

In the result, the appeal filed by the assessee stands partly allowed

ITA 852/PUN/2023[2014-15]Status: DisposedITAT Pune22 Aug 2023AY 2014-15
For Appellant: Shri Sarvesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.852/PUN/2023 िनधा"रण वष" / Assessment Year : 2014-15 Puspak Steel Industries Vs. ACIT, Circle-10, Pune. Private Limited, Gat No.119, Alandi Markal Road, Village- Dhanore, Pune- 412105. PAN : AABCP0081C Appellant Respondent Assessee by : Shri Sarvesh Khandelwal Revenue by : Shri M. G. Jasnani Date of hearing : 10.08.2023 Date of pronouncement : 22.08.2023 आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directe…

The Dy CIT RG 3(1), Mumbai vs. M/S. Bajaj International P. Ltd, Mumbai

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

ITA 8952/MUM/2004[1998-1999]Status: DisposedITAT Mumbai22 Aug 2023AY 1998-1999

Bench: Shri B.R. Baskaran (Am) & Shri Rahul Chaudhary (Jm)

Section 40Section 80I

…y, he held no disallowance out of interest expenses is called for. 24.1 We heard the parties and perused the record. We notice that the view taken by Ld CIT(A) gets support from the decision rendered by Hon’ble Bombay High Court in the case of HDFC Bank Ltd (366 ITR 505)(Bom). The jurisdictional Bombay High Court has held in the above said case that the interest disallowance u/r 8D(2)(ii) of I T Rules is not called for when the own funds available with the assessee is in excess of the value of investments. In our view, the ratio of the said decision shall apply to the facts of the present issue. Accordingly, we…

ACIT Cir-1, Dhanbad vs. M/S Bharat Cooking Coal Ltd, Dhanbad

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

ITA 304/RAN/2017[14-15]Status: DisposedITAT Ranchi18 Aug 2023

Bench: Sri Rajesh Kumar & Sonjoy Sarma

Section 143(3)

…n that sufficient fund was available with the assessee and thus, no disallowance is called for under Rule 8D(2) of the Rules. Ld. CIT(A) relied on various decisions to reach the said conclusion namely, in the cases of CIT Vs. HDFC Bank Ltd. reported in [2014] 366 ITR 505 (Bombay), CIT Vs. Hero Cycles Ltd. reported in [2010] 323 ITR 518 (Punjab & Haryana), CIT Vs. Walfort Share & Stock Brokers (P.) Ltd. reported in [2010] 326 ITR 1 (SC) and CIT Vs. Reliance Utilities & Power Ltd. reported in [2009] 313 ITR 340 (Bombay). Considering these facts and the ratio laid down Page 7 of 9 I.T.A. Nos.: 303 & 304/RAN/2017 C…

ACIT Cir-1, Dhanbad vs. M/S Bharat Cooking Coal Ltd, Dhanbad

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

ITA 303/RAN/2017[13=14]Status: PendingITAT Ranchi18 Aug 2023

Bench: Sri Rajesh Kumar & Sonjoy Sarma

Section 143(3)

…n that sufficient fund was available with the assessee and thus, no disallowance is called for under Rule 8D(2) of the Rules. Ld. CIT(A) relied on various decisions to reach the said conclusion namely, in the cases of CIT Vs. HDFC Bank Ltd. reported in [2014] 366 ITR 505 (Bombay), CIT Vs. Hero Cycles Ltd. reported in [2010] 323 ITR 518 (Punjab & Haryana), CIT Vs. Walfort Share & Stock Brokers (P.) Ltd. reported in [2010] 326 ITR 1 (SC) and CIT Vs. Reliance Utilities & Power Ltd. reported in [2009] 313 ITR 340 (Bombay). Considering these facts and the ratio laid down Page 7 of 9 I.T.A. Nos.: 303 & 304/RAN/2017 C…

Joint Commissioner of Income-Tax(OSD), Cricle -1, Kolhapur vs. Rbl Bank Ltd., Kolhapur

In the result, the appeal of Revenue is dismissed

ITA 510/PUN/2023[2018-19]Status: DisposedITAT Pune03 Aug 2023AY 2018-19

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi

For Appellant: S/Shri Ravi Sawana & Dinesh KukrejaFor Respondent: Shri Ajay Kumar Kesari
Section 143(3)Section 201Section 251

…आयकर अपीलीय अधिकरण “बी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.499/PUN/2023 धििाारण वर्ा / Assessment Year : 2017-18 RBL Bank Limited, 179-E, Shree Shahu Market Yard, Kolhapur – 416005 PAN : AABCT3335M ......अपीलार्थी / Appellant बिाम / V/s. DCIT, Circle – 1, Kolhapur ……प्रत्यर्थी / Respondent आयकर अपील सं. / ITA Nos.509 & 510/PUN/2023 धििाारण वर्ा / Assessment Years : 2017-18 & 2018-19 Jt. Commissioner of Income Tax (OSD), Circle – 1, Kolhapur ......अपीलार्थी / A…

Joint Commissioner of Income-Tax(OSD), Cricle -1, Kolhapur vs. Rbl Bank Ltd., Kolhapur

In the result, the appeal of Revenue is dismissed

ITA 509/PUN/2023[2017-18]Status: DisposedITAT Pune03 Aug 2023AY 2017-18

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi

For Appellant: S/Shri Ravi Sawana & Dinesh KukrejaFor Respondent: Shri Ajay Kumar Kesari
Section 143(3)Section 201Section 251

…आयकर अपीलीय अधिकरण “बी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.499/PUN/2023 धििाारण वर्ा / Assessment Year : 2017-18 RBL Bank Limited, 179-E, Shree Shahu Market Yard, Kolhapur – 416005 PAN : AABCT3335M ......अपीलार्थी / Appellant बिाम / V/s. DCIT, Circle – 1, Kolhapur ……प्रत्यर्थी / Respondent आयकर अपील सं. / ITA Nos.509 & 510/PUN/2023 धििाारण वर्ा / Assessment Years : 2017-18 & 2018-19 Jt. Commissioner of Income Tax (OSD), Circle – 1, Kolhapur ......अपीलार्थी / A…

Rbl Bank, Kolhapur vs. Deputy Commissioner of Income Tax, Circle-1, Kolhapur

In the result, the appeal of Revenue is dismissed

ITA 499/PUN/2023[2017-18]Status: DisposedITAT Pune03 Aug 2023AY 2017-18

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi

For Appellant: S/Shri Ravi Sawana & Dinesh KukrejaFor Respondent: Shri Ajay Kumar Kesari
Section 143(3)Section 201Section 251

…आयकर अपीलीय अधिकरण “बी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.499/PUN/2023 धििाारण वर्ा / Assessment Year : 2017-18 RBL Bank Limited, 179-E, Shree Shahu Market Yard, Kolhapur – 416005 PAN : AABCT3335M ......अपीलार्थी / Appellant बिाम / V/s. DCIT, Circle – 1, Kolhapur ……प्रत्यर्थी / Respondent आयकर अपील सं. / ITA Nos.509 & 510/PUN/2023 धििाारण वर्ा / Assessment Years : 2017-18 & 2018-19 Jt. Commissioner of Income Tax (OSD), Circle – 1, Kolhapur ......अपीलार्थी / A…

The Ferozpur Cantt Primary Co-Op Agri Dev. Bank Limited, Ferozpur vs. Deputy Commissioner of Income Tax, Range (III), Ferozpur

In the result, appeal of the assessee ITA No

ITA 524/ASR/2018[2015-16]Status: DisposedITAT Amritsar26 Jul 2023AY 2015-16

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 14ASection 250

…further placed that the same issue was adjudicated by the ld. CIT(A) for A.Y. 2017-18 and accepted the assessee’s plea and allowed the appeal. The ld. AR further relied on the order of Hon’ble High Court of Bombay in the case ofCIT-2, MumbaivsHDFC Bank Ltd. 366 ITR 505 (Bom).The relevant paragraph is reproduce as below:- “5. We find that the facts of the present case are squarely covered by the judgment in the case of Reliance Utilities & Power Ltd. (supra). The finding of fact given by the ITAT in the present case is that the Assessee's own funds and other non-interest-bearing funds were more than the investm…

Addl CIT RG 3(1), Mumbai vs. Icici Bank Ltd (in Respect of M.S, Icici Ltd Merged With M.S, Icici Bank Ltd), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 8435/MUM/2010[2003-04]Status: DisposedITAT Mumbai21 Jul 2023AY 2003-04

Bench: Shri Vikas Awasthy& Shri Amarjit Singhआअसं.8435 /मुं/2010("न.व. 2003-04) The Dy.Commissioner Of Income-Tax ,Cir. 3(1), Room No.607, 6Th Floor, Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ...... अपीलाथ"/Appellant बनाम Vs. Icici Bank Limited, Icici Bank Towers, Bandra-Kurla-Complex, Bandra(East), Mumbai 400 051. Pan: Aaaci-1195-H .....""तवाद"/Respondent

For Appellant: Ms. Aarti Visanji, AdvocateFor Respondent: Shri P.C. Chhotaray, Spl. Counsel
Section 10Section 10(15)Section 23Section 36Section 36(1)(vii)Section 80M

…2 ITR 640, has held that doctrine of apportionment would apply in respect of interest expenditure. He submitted that the law laid down by Hon'ble Bombay High Court in the case CIT vs. Reliance Utilities & Power Ltd., 313 ITR 340(Bom) and CIT vs.HDFC Bank Ltd. 366 ITR 505 (Bom) is not a good law. He vehemently argued that the interest expenditure should be apportioned and disallowance should be made to the extent of apportionment of borrowed funds are utilized for earning exempt income. He further contended that for the purpose of ascertaining the fund position available for investment, the date of investment has…

Icici Bank Ltd, Mumbai vs. Addl CIT RG 3(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 8420/MUM/2010[2003-04]Status: DisposedITAT Mumbai21 Jul 2023AY 2003-04

Bench: Shri Vikas Awasthy& Shri Amarjit Singhआअसं.8435 /मुं/2010("न.व. 2003-04) The Dy.Commissioner Of Income-Tax ,Cir. 3(1), Room No.607, 6Th Floor, Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ...... अपीलाथ"/Appellant बनाम Vs. Icici Bank Limited, Icici Bank Towers, Bandra-Kurla-Complex, Bandra(East), Mumbai 400 051. Pan: Aaaci-1195-H .....""तवाद"/Respondent

For Appellant: Ms. Aarti Visanji, AdvocateFor Respondent: Shri P.C. Chhotaray, Spl. Counsel
Section 10Section 10(15)Section 23Section 36Section 36(1)(vii)Section 80M

…2 ITR 640, has held that doctrine of apportionment would apply in respect of interest expenditure. He submitted that the law laid down by Hon'ble Bombay High Court in the case CIT vs. Reliance Utilities & Power Ltd., 313 ITR 340(Bom) and CIT vs.HDFC Bank Ltd. 366 ITR 505 (Bom) is not a good law. He vehemently argued that the interest expenditure should be apportioned and disallowance should be made to the extent of apportionment of borrowed funds are utilized for earning exempt income. He further contended that for the purpose of ascertaining the fund position available for investment, the date of investment has…

Cyquator Media Services Private Limited, Mumbai vs. Dy.Commissioner of Income Tax Central Circle-6(2)(1), Mumbai

In the result, the appeal by the assessee is allowed

ITA 1209/MUM/2023[2014-2015]Status: DisposedITAT Mumbai19 Jul 2023AY 2014-2015

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Jay Bhansali a/wFor Respondent: Shri Ashok Kumar Ambartha
Section 10(34)Section 115JSection 142(1)Section 143(2)Section 143(3)Section 14ASection 250

…stment of Rs.17647.77 lacs. Therefore, it is sufficiently evident that the assessee's own funds are more than investments, including the investments for earning exempt income. We find that the Hon'ble Jurisdictional High Court in CIT vs HDFC Bank Ltd., [2014] 366 ITR 505 (Bom.) held that where assessee's own funds and other non-interest bearing funds were more than the investment in tax-free securities, no disallowance under section 14A of the Act can be made. We further find that the Hon'ble Supreme Court in South Indian Bank Ltd. vs CIT, [2021] 438 ITR 001 (SC) held that disallowance under section 14A of the Ac…

Uma Rajendra Agarwal, Mumbai vs. Assistant Commissioner of Income Tax Circle-25(1), Mumbai

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

ITA 1008/MUM/2023[2013-2014]Status: DisposedITAT Mumbai19 Jul 2023AY 2013-2014

Bench: Shri B.R. Baskaran (Am) & Shri Narender Kumar Choudhry (Jm)

Section 14A

…D(2)(ii) of the Rules. Since own funds exceeds the value of investments, there is no requirement of making any disallowance out of interest expenses as per the decision rendered by Hon'ble Jurisdictional High Court of Bombay in the case of HDFC Bank vs. DCIT (366 ITR 505). Accordingly we set aside the order passed by the learned CIT(A) on this issue and direct the Assessing Officer to disallow disallowance made under rule 8D(2)(ii) out of interest expenses. 9. The Next issue relates to the disallowance of expenses under rule 8D(2)(iii). The Assessing Officer had disallowed 0.5% of average value of investment. Th…

Wheels India Limited, Chennai vs. ACIT Ltu 1 Chennai, Chennai

ITA 2772/CHNY/2019[2016-17]Status: DisposedITAT Chennai14 Jul 2023AY 2016-17

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.2701/Chny/2019 (िनधा*रण वष* / Assessment Year: 2015-16) & आयकरअपील सं./ Ita No.2702/Chny/2019 (िनधा*रण वष* / Assessment Year: 2016-17) Acit M/S. Wheels India Pvt. Ltd. बनाम Large Taxpayer Unit-2 21, Pattulos Road, / Vs. Chennai-600 034. Chennai-600 002. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacw-0315-K (अपीलाथ"/Appellant) : (" थ" / Respondent) & आयकरअपील सं./ Ita No.2771/Chny/2019 (िनधा*रण वष* / Assessment Year: 2015-16) & आयकरअपील सं./ Ita No.2772/Chny/2019 (िनधा*रण वष* / Assessment Year: 2016-17) M/S.Wheels India Pvt.Ltd. Acit बनाम 21, Pattulos Road, Large Taxpayer Unit-2 / Vs. Chennai-600 002. Chennai-600 034. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacw-0315-K (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Assessee By : Shri R.Vijayaraghavan (Advocate)-Ld.Ar " थ"कीओरसे/Revenue By : Shri S.Senthil Kumaran (Cit)- Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 11-07-2023 घोषणाकीतारीख /Date Of Pronouncement : 14-07-2023 आदेश / O R D E R

For Appellant: Shri R.Vijayaraghavan (Advocate)-Ld.ARFor Respondent: Shri S.Senthil Kumaran (CIT)- Ld. DR
Section 143(3)Section 14ASection 35Section 36(1)Section 36(1)(iii)

…r making the investments. 4.3 The Appellant relies on the decisions of the Hon’ble Madras High Court In CIT Vs. Hotel Savera 239 ITR 195 and Gujarat High Court in CIT Vs Gujarat State Fertilizers a Chemicals Ltd 85 CCH 273 Guj HC and HDFC Bank Ltd reported in 366 ITR 505 (Bom) where it was held that no ad-hoc disallowance of expenditure u/s 14A was warranted where the assessee had sufficient funds available with it, which was more than the amount it invested for earning dividend income. The same are adjudicated as under. 3. Disallowance of interest on acquisition of fixed assets u/s.36(1)(iii) The assessee capit…