CIT v. Hotel Savera

239 ITR 795High Court1999#898 most cited

What is CIT v. Hotel Savera authority for?

When an assessee has sufficient interest-free own funds available to make interest-free advances or investments, it is presumed that such advances or investments are made from these interest-free funds, thereby preventing the disallowance of interest expenditure under Section 36(1)(iii).

119

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2013 to 2025.

Also referred to as

CIT v. Hotel Savera · Hotel Savera · Section 36(1)(iii) · disallowance of interest expenditure · interest-free advances · own funds · mixed fund theory · commercial expediency · presumption of funds utilization · sufficiency of interest-free funds

Also reported as

102 Taxmann 247

Sections most often in play

Section 36(1)(iii)Section 143(3)Section 143(1)Section 147Section 148Section 127Section 132Section 132A

Issues it is cited on

section 36(1)(ii)section 36(1)(iii)interest free advancessection 28(iv)weighted deductioncommercial expediencysection 35(2ab)business connectiondisallowance of interest expenditureicdssection 9(1)(vii)section 36(1)

Judgments citing CIT v. Hotel Savera

M/S. THIRUVALLUVAR TEXTILES PVT. LTD.,RASIPURAM vs. ACIT, CENTRAL CIRCLE-1(1), CHENNAI

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

ITA 1737/CHNY/2025[2017-18]Status: DisposedITAT Chennai04 Nov 2025AY 2017-18

Bench: Shri George George K & Shri S.R.Raghunatha

For Appellant: Shri. Y.Sridhar, FCAFor Respondent: Shri. Shiva Srinivas, CIT
Section 11

…lized for making interest-free advance or investment in its subsidiary M/s.TNMPL . For such a preposition, we rely on the following Hon’ble High Courts decisions: • CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) • CIT v. Hotel Savera (1999) 239 ITR 795 (Mad) • CIT v. TIN. Box Co. (2003) 260 ITR 637 (Del) 11. The ratio laid by the Hon’ble High Courts (supra) been concurred by the Hon’ble Apex Court in CIT (LTU) v. Reliance Industries Ltd., reported in 410 ITR 466 (SC) wherein it was held by their Lordships ‘ …… when interest-free funds was available with assessee is sufficient to meet investmen…

M/S. THIRUVALLUVAR TEXTILES PVT. LTD.,RASIPURAM vs. ACIT, CENTRAL CIRCLE-1(1), CHENNAI

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

ITA 1736/CHNY/2025[2016-17]Status: DisposedITAT Chennai04 Nov 2025AY 2016-17

Bench: Shri George George K & Shri S.R.Raghunatha

For Appellant: Shri. Y.Sridhar, FCAFor Respondent: Shri. Shiva Srinivas, CIT
Section 11

…lized for making interest-free advance or investment in its subsidiary M/s.TNMPL . For such a preposition, we rely on the following Hon’ble High Courts decisions: • CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) • CIT v. Hotel Savera (1999) 239 ITR 795 (Mad) • CIT v. TIN. Box Co. (2003) 260 ITR 637 (Del) 11. The ratio laid by the Hon’ble High Courts (supra) been concurred by the Hon’ble Apex Court in CIT (LTU) v. Reliance Industries Ltd., reported in 410 ITR 466 (SC) wherein it was held by their Lordships ‘ …… when interest-free funds was available with assessee is sufficient to meet investmen…

M/S.THIRUVALLUVAR TEXTILES PVT. LTD.,RASIPURAM vs. ACIT, CENTRAL CIRCLE-1(1), CHENNAI

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

ITA 1735/CHNY/2025[2014-15]Status: DisposedITAT Chennai04 Nov 2025AY 2014-15

Bench: Shri George George K & Shri S.R.Raghunatha

For Appellant: Shri. Y.Sridhar, FCAFor Respondent: Shri. Shiva Srinivas, CIT
Section 11

…lized for making interest-free advance or investment in its subsidiary M/s.TNMPL . For such a preposition, we rely on the following Hon’ble High Courts decisions: • CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) • CIT v. Hotel Savera (1999) 239 ITR 795 (Mad) • CIT v. TIN. Box Co. (2003) 260 ITR 637 (Del) 11. The ratio laid by the Hon’ble High Courts (supra) been concurred by the Hon’ble Apex Court in CIT (LTU) v. Reliance Industries Ltd., reported in 410 ITR 466 (SC) wherein it was held by their Lordships ‘ …… when interest-free funds was available with assessee is sufficient to meet investmen…

M/S. THIRUVALLUVAR TEXTILES PVT. LTD.,RASIPURAM vs. ACIT, CENTRAL CIRCLE-1(1), CHENNAI

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

ITA 1734/CHNY/2025[2013-14]Status: DisposedITAT Chennai04 Nov 2025AY 2013-14

Bench: Shri George George K & Shri S.R.Raghunatha

For Appellant: Shri. Y.Sridhar, FCAFor Respondent: Shri. Shiva Srinivas, CIT
Section 11

…lized for making interest-free advance or investment in its subsidiary M/s.TNMPL . For such a preposition, we rely on the following Hon’ble High Courts decisions: • CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) • CIT v. Hotel Savera (1999) 239 ITR 795 (Mad) • CIT v. TIN. Box Co. (2003) 260 ITR 637 (Del) 11. The ratio laid by the Hon’ble High Courts (supra) been concurred by the Hon’ble Apex Court in CIT (LTU) v. Reliance Industries Ltd., reported in 410 ITR 466 (SC) wherein it was held by their Lordships ‘ …… when interest-free funds was available with assessee is sufficient to meet investmen…

JCIT(OSD) CENTRAL CIRCLE 1, JHANDEWALAN vs. SAHARA INDIA REAL ESTATE CORPORATION LTD., LUCKNOW

ITA 1085/DEL/2024[2017-18]Status: DisposedITAT Delhi07 Oct 2025AY 2017-18

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahman

For Appellant: Sh. Ajay Vohra, Sr. Adv. &For Respondent: Sh. Mahesh Kumar, CIT-DR
Section 143(3)

…R 415 (Alld) 2. Highway Construction Pvt. Ltd. vs. CIT 111 CTR 143 (Guwahati). 3. CIT vs. Motor Credit Co. Pvt. Ltd, 127 ITR 572 (Mad.). 4. CIT vs. Devi Films (P) Ltd. 143 ITR 386 (Mad.) 5. S.A. Builders Ltd. vs. CIT(A) 288 ITR 1 (SC). 6. CIT vs. Hotel Savera 239 ITR 795 For the proposition that if no interest has been charged in the preceding year, the same cannot be considered during the year and the inquiries has to be limited to the increase in current year only. For the above proposition, the appellant would like to place reliance on the following cases:- 1. CIT vs. Sridev Enterprises 59 Taxman 439 (Karnatak…

M/S. THIRUVALLUVAR TEXTILES (P) LTD.,RASIPURAM vs. ACIT, CIRCLE-1(1), CHENNAI

In the result, appeals filed by the assessee are allowed

ITA 857/CHNY/2025[2011-12]Status: DisposedITAT Chennai04 Jul 2025AY 2011-12

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.Y. Sridhar, FCAFor Respondent: Ms. Gauthami Manivasagam
Section 143(1)Section 143(3)Section 264

…lized for making interest-free advance or investment in its subsidiary M/s.TNMPL . For such a preposition, we rely on the following Hon’ble High Courts decisions: • CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) • CIT v. Hotel Savera (1999) 239 ITR 795 (Mad) • CIT v. TIN. Box Co. (2003) 260 ITR 637 (Del) 11. The ratio laid by the Hon’ble High Courts (supra) been concurred by the Hon’ble Apex Court in CIT (LTU) v. Reliance Industries Ltd., reported in 410 ITR 466 (SC) wherein it was held by their Lordships ‘ …… when interest-free funds was available with assessee is sufficient to meet ITA No…

M/S. THRUVALLUVAR TEXTILES (P) LTD.,RASIPURAM vs. ACIT, CIRCLE-1(1), CHENNAI

In the result, appeals filed by the assessee are allowed

ITA 856/CHNY/2025[2010-11]Status: DisposedITAT Chennai04 Jul 2025AY 2010-11

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.Y. Sridhar, FCAFor Respondent: Ms. Gauthami Manivasagam
Section 143(1)Section 143(3)Section 264

…lized for making interest-free advance or investment in its subsidiary M/s.TNMPL . For such a preposition, we rely on the following Hon’ble High Courts decisions: • CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) • CIT v. Hotel Savera (1999) 239 ITR 795 (Mad) • CIT v. TIN. Box Co. (2003) 260 ITR 637 (Del) 11. The ratio laid by the Hon’ble High Courts (supra) been concurred by the Hon’ble Apex Court in CIT (LTU) v. Reliance Industries Ltd., reported in 410 ITR 466 (SC) wherein it was held by their Lordships ‘ …… when interest-free funds was available with assessee is sufficient to meet ITA No…

M/S. THIRUVALLUVAR TEXTILES (P) LTD.,RASIPURAM vs. ACIT, CIRCLE-1(1), SALEM

In the result, appeals filed by the assessee are allowed

ITA 855/CHNY/2025[2009-10]Status: DisposedITAT Chennai04 Jul 2025AY 2009-10

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.Y. Sridhar, FCAFor Respondent: Ms. Gauthami Manivasagam
Section 143(1)Section 143(3)Section 264

…lized for making interest-free advance or investment in its subsidiary M/s.TNMPL . For such a preposition, we rely on the following Hon’ble High Courts decisions: • CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) • CIT v. Hotel Savera (1999) 239 ITR 795 (Mad) • CIT v. TIN. Box Co. (2003) 260 ITR 637 (Del) 11. The ratio laid by the Hon’ble High Courts (supra) been concurred by the Hon’ble Apex Court in CIT (LTU) v. Reliance Industries Ltd., reported in 410 ITR 466 (SC) wherein it was held by their Lordships ‘ …… when interest-free funds was available with assessee is sufficient to meet ITA No…

M/S. THIRUVALLUVAR TEXTILES (P) LTD.,RASIPURAM vs. ACIT, CIRCLE-1(1),, SALEM

In the result, appeals filed by the assessee are allowed

ITA 854/CHNY/2025[2008-09]Status: DisposedITAT Chennai04 Jul 2025AY 2008-09

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.Y. Sridhar, FCAFor Respondent: Ms. Gauthami Manivasagam
Section 143(1)Section 143(3)Section 264

…lized for making interest-free advance or investment in its subsidiary M/s.TNMPL . For such a preposition, we rely on the following Hon’ble High Courts decisions: • CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) • CIT v. Hotel Savera (1999) 239 ITR 795 (Mad) • CIT v. TIN. Box Co. (2003) 260 ITR 637 (Del) 11. The ratio laid by the Hon’ble High Courts (supra) been concurred by the Hon’ble Apex Court in CIT (LTU) v. Reliance Industries Ltd., reported in 410 ITR 466 (SC) wherein it was held by their Lordships ‘ …… when interest-free funds was available with assessee is sufficient to meet ITA No…

MAA MAHAMAYA INDUSTRIES LIMITED,CHHATTISGARH vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, VISAKHAPATNAM

In the result, appeal of the assessee is allowed

ITA 144/VIZ/2025[2012-13]Status: DisposedITAT Visakhapatnam13 May 2025AY 2012-13

Bench: Shri V. Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Shri MV Prasad, CAFor Respondent: Dr Satyasai Rath, CIT(DR)
Section 127Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 153ASection 245C(1)Section 245D

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “DIVN” BENCH, VISAKHAPATNAM श्री िी. दुर्ाा राि, न्याधयक सदस्य एिं श्री एस बालाकृष्णन, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./ I.T(SS)A. No.5, 6, 7, 8 & 9/Viz/2025 (धनिाारण िर्ा/ Assessment Years. 2008-09 to 2012-13) DCIT, Vs. Maa Mahamaya Industries Limited, Central Circle-1, Chattisgarh. Visakhapatnam. PAN: AADCM5858Q (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपीलसं./ I.T.A. Nos. 140, 141, 142, 143 & 144/Viz/…

MAA MAHAMAYA INDUSTRIES LIMITED,CHHATTISGARH vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, VISAKHAPATNAM

In the result, appeal of the assessee is allowed

ITA 143/VIZ/2025[2011-12]Status: DisposedITAT Visakhapatnam13 May 2025AY 2011-12

Bench: Shri V. Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Shri MV Prasad, CAFor Respondent: Dr Satyasai Rath, CIT(DR)
Section 127Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 153ASection 245C(1)Section 245D

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “DIVN” BENCH, VISAKHAPATNAM श्री िी. दुर्ाा राि, न्याधयक सदस्य एिं श्री एस बालाकृष्णन, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./ I.T(SS)A. No.5, 6, 7, 8 & 9/Viz/2025 (धनिाारण िर्ा/ Assessment Years. 2008-09 to 2012-13) DCIT, Vs. Maa Mahamaya Industries Limited, Central Circle-1, Chattisgarh. Visakhapatnam. PAN: AADCM5858Q (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपीलसं./ I.T.A. Nos. 140, 141, 142, 143 & 144/Viz/…

MAA MAHAMAYA INDUSTRIES LIMITED,CHHATTISGARH vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, VISAKHAPATNAM

In the result, appeal of the assessee is allowed

ITA 142/VIZ/2025[2010-11]Status: DisposedITAT Visakhapatnam13 May 2025AY 2010-11

Bench: Shri V. Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Shri MV Prasad, CAFor Respondent: Dr Satyasai Rath, CIT(DR)
Section 127Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 153ASection 245C(1)Section 245D

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “DIVN” BENCH, VISAKHAPATNAM श्री िी. दुर्ाा राि, न्याधयक सदस्य एिं श्री एस बालाकृष्णन, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./ I.T(SS)A. No.5, 6, 7, 8 & 9/Viz/2025 (धनिाारण िर्ा/ Assessment Years. 2008-09 to 2012-13) DCIT, Vs. Maa Mahamaya Industries Limited, Central Circle-1, Chattisgarh. Visakhapatnam. PAN: AADCM5858Q (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपीलसं./ I.T.A. Nos. 140, 141, 142, 143 & 144/Viz/…

MAA MAHAMAYA INDUSTRIES LIMITED,CHHATTISGARH vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, VISAKHAPATNAM

In the result, appeal of the assessee is allowed

ITA 141/VIZ/2025[2009-10]Status: DisposedITAT Visakhapatnam13 May 2025AY 2009-10

Bench: Shri V. Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Shri MV Prasad, CAFor Respondent: Dr Satyasai Rath, CIT(DR)
Section 127Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 153ASection 245C(1)Section 245D

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “DIVN” BENCH, VISAKHAPATNAM श्री िी. दुर्ाा राि, न्याधयक सदस्य एिं श्री एस बालाकृष्णन, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./ I.T(SS)A. No.5, 6, 7, 8 & 9/Viz/2025 (धनिाारण िर्ा/ Assessment Years. 2008-09 to 2012-13) DCIT, Vs. Maa Mahamaya Industries Limited, Central Circle-1, Chattisgarh. Visakhapatnam. PAN: AADCM5858Q (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपीलसं./ I.T.A. Nos. 140, 141, 142, 143 & 144/Viz/…

MAA MAHAMAYA INDUSTRIES LIMITED,CHHATTISGARH vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, VISAKHAPATNAM

In the result, appeal of the assessee is allowed

ITA 140/VIZ/2025[2008-09]Status: DisposedITAT Visakhapatnam13 May 2025AY 2008-09

Bench: Shri V. Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Shri MV Prasad, CAFor Respondent: Dr Satyasai Rath, CIT(DR)
Section 127Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 153ASection 245C(1)Section 245D

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “DIVN” BENCH, VISAKHAPATNAM श्री िी. दुर्ाा राि, न्याधयक सदस्य एिं श्री एस बालाकृष्णन, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./ I.T(SS)A. No.5, 6, 7, 8 & 9/Viz/2025 (धनिाारण िर्ा/ Assessment Years. 2008-09 to 2012-13) DCIT, Vs. Maa Mahamaya Industries Limited, Central Circle-1, Chattisgarh. Visakhapatnam. PAN: AADCM5858Q (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपीलसं./ I.T.A. Nos. 140, 141, 142, 143 & 144/Viz/…

DCIT CIRCLE- 1, LTU, NEW DELHI vs. MAWANA SUGAR LTD., NEW DELHI

Appeal is partly allowed as above and the appeal of the Revenue is dismissed as above

ITA 5984/DEL/2019[2016-17]Status: DisposedITAT Delhi30 Apr 2025AY 2016-17

Bench: Shri Challa Nagendra Prasad & Shri Avdhesh Kumar Mishra

Section 115JSection 14ASection 36(1)(iii)

…es, etc. no disallowance out of interest could be made. He placed reliance on following cases: (i) Woolcombers of India Ltd. 134 ITR 219 227 (Cal) M/s. Mawana Sugar Ltd. (ii) Alkali and Chemical Corporation of India Ltd. 161 ITR 820 (Cal) (iii) Hotel Savera 239 ITR 795 799-800 (Mad) (iv) Radico Khaitan Ltd. 274 ITR 354 (All) (v) Britannia Industries Ltd. 280 ITR 525 (Cal) (vi) Reliance Utilities and Power Ltd. 313 ITR 340 (Bom) (vii) East India Pharmaceutical Works Ltd. 224 ITR 627 (SC) (viii) Munjal Sales Corporation 298 ITR 298 (SC) (ix) South Indian Bank Ltd. 438 ITR 1 (SC) 5.3 The Ld. AR contended that the…

SARBINDER SINGH BINDRA,NEW DELHI vs. ACIT CIRCLE-47(1), NEW DELHI

In the result, the appeal of the Assessee is partly allowed

ITA 7591/DEL/2019[2016-17]Status: DisposedITAT Delhi19 Feb 2025AY 2016-17

Bench: Shri Vikas Awasthy & Shri Manish Agarwalsarbinder Singh Bindra Asst. Cit, 362, 2Nd Floor, Circle-47(1), Naya Katra, Chandni Vs. Delhi. Chowk, Delhi-110006. Pan-Aaepb2783P (Appellant) (Respondent)

Section 154

…vestment made, no disallowance of interest could be made, the same are as under: (i) Woolcombers of India Ltd. v. CIT (1982) 134 ITR 219 @ 227 (Cal). (ii) Alkali and Chemical Corporation of India Ltd. v. CIT 161 ITR 820 (Cal). (iii) CIT v. Hotel Savera (1999) 239 ITR 795 @799-800 (Mad) (iv) CIT v. Radico Khaitan Ltd. (2005) 274 ITR 354 @ 365-366 (All) (v) CIT v. Britannia Industries Ltd. (2006) 280 ITR 525 @ 532-534 (Cal) In CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340, Hon’ble Bombay High Court has held that where the investments were out of mixed funds and interest free funds were sufficient to…

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

…Supreme Court in the case of CIT V/s Reliance Industries Ltd. (307 CTR 121), it could be presumed that the investments were made from interest free funds available with the assessee. The ratio of decision of Hon’ble Madras High Court in CIT V/s Hotel Savera (239 ITR 795) as well the decision of Hon’ble Bombay High Court in CIT V/s Reliance Utilities (313 ITR 340) was applicable to the case of the assessee. The availability of cash surplus as tabulated by the assessee in its reply to Ld. CIT(A) was as under: - M/s.Sundram Fasteners Ltd. :: 27 :: (Rs. In Lacs) Particulars FY 2007-08 FY 2006-07 FY 2005-06 Net Wor…

EXPRESS PUBLICATIONS (MADURAI)PRIVATE LTD.,CHENNAI vs. DCIT,COMPANY CIRCLE-II(1), CHENNAI

In the result, the appeal stands partly allowed

ITA 805/CHNY/2023[2014-15]Status: DisposedITAT Chennai07 May 2024AY 2014-15

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita No.805/Chny/2023 (िनधा"रणवष" / Assessment Year: 2014-15) Express Publications (Madurai) P. Ltd, Vs. Dcit No.29, Express Garden, Company Circle Ii (1) Second Main Road Industrial Estate, Now Corporate Circle 2 (1) Ambattur, Chennai 600 058. Chennai 600 034. [Pan: Aaaci 0842D] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Ms. Abirami Narendranath, Advocate ""यथ" क" ओर से /Respondent By : Shri Saujanya Ranjan, Irs, Jcit. सुनवाई क" तार"ख/Date Of Hearing : 22.04.2024 घोषणा क" तार"ख /Date Of Pronouncement : 07.05.2024 आदेश / O R D E R Manu Kumar Giri ()

For Appellant: Ms. Abirami Narendranath, AdvocateFor Respondent: Shri Saujanya Ranjan, IRS, JCIT
Section 143(3)Section 14ASection 36(1)(iii)Section 40Section 40a

…he decision of Hon’ble Supreme Court in the case of M/s S.A. Builders Limited vs. CIT (2007) 288 ITR 1 (SC); the decision CIT (LTU) vs. Reliance Industries Ltd (2019) 410 ITR 466 (SC); & the decision of Hon’ble Madras High Court in CIT vs. Hotel Savera (1999) 239 ITR 795 (Mad). The assessee emphasize that in a case where the assessee has common funds then in such a case, in the absence of any material to indicate that the assessee has advanced monies out of funds borrowed for business purposes, the presumption would be that the moneys advanced came only out of its own funds. However, Ld. CIT(A) chose to confirm t…

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)

…crores, and therefore, following the ratio laid down by various Hon’ble High Courts including the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities, 313 ITR 340, Ashok Commercial Enterprises, ITA(L) No.2985 of 2009, Hotel Savera, 239 ITR 795, he deleted the disallowance of interest made by the AO in entirety. 64. The ld.DR was unable to controvert any of the factual finding of the ld.CIT(A). 65. In view of the above, we see no reason to interfere in the order of the ld.CIT(A) deleting the disallowance of interest under section 36(1)(iii) of the Act amounting to Rs.1,34,22,838/-. G…

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)

…crores, and therefore, following the ratio laid down by various Hon’ble High Courts including the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities, 313 ITR 340, Ashok Commercial Enterprises, ITA(L) No.2985 of 2009, Hotel Savera, 239 ITR 795, he deleted the disallowance of interest made by the AO in entirety. 64. The ld.DR was unable to controvert any of the factual finding of the ld.CIT(A). 65. In view of the above, we see no reason to interfere in the order of the ld.CIT(A) deleting the disallowance of interest under section 36(1)(iii) of the Act amounting to Rs.1,34,22,838/-. G…

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