How many judgments cite CIT v. Microlabs Ltd.?

175 judgments on BharatTax cite CIT v. Microlabs Ltd. (383 ITR 490), spanning 2016 to 2026.

Which sections of the Income Tax Act does CIT v. Microlabs Ltd. come up under?

It is most often cited in judgments turning on Section 14A, Section 143(3), Section 35(2AB), Section 115JB, Section 144C(3), Section 37(1).

CIT v. Microlabs Ltd.

383 ITR 490High Court2016#553 most cited

What is CIT v. Microlabs Ltd. authority for?

If an assessee possesses interest-free funds exceeding investments in tax-free securities, it is presumed that investments are made from these own funds, precluding disallowance of interest expenditure under Section 14A read with Rule 8D(2)(ii). Additionally, weighted deduction under Section 35(2AB) is computed on the gross expenditure incurred, not net expenditure after reducing income earned.

175

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Microlabs Ltd. · Section 14A · Rule 8D(2)(ii) · disallowance of interest expenditure · interest-free funds · investments in tax-free securities · own funds presumption · Section 35(2AB) · weighted deduction R&D · gross expenditure deduction

Also reported as

79 Taxmann.com 365

Sections most often in play

Section 14A Section 143(3)Section 35(2AB)Section 115JB Section 144C(3)Section 37(1)Section 8D Section 10(34)

Read the full judgment

Issues it is cited on

section 8d(2)(ii)section 14(2)r&d expenditure section 92(1)disallowance of interest expenditure section 14a(1)section 92b(1)section 115jb(2)corporate guarantee weighted deduction section 35(2ab)legal expenses

Judgments citing CIT v. Microlabs Ltd.

Kohinoor Developments Corporation, Pune vs. Income-Tax Officer, Ward - 3(2), Pune

In the result, the appeal is partly allowed

ITA 2137/PUN/2017[2010-11]Status: DisposedITAT Pune11 Dec 2018AY 2010-11

Bench: Shri R.S. Syal

Section 14A

…relied on the judgment of the Hon'ble Supreme Court in the case of East India Pharmaceuticals Works Ltd. vs. CIT 224 ITR 627 (SC). The Hon'ble Karnataka High Court has applied such a proposition in the context of section 14A by holding in CIT vs. Micro Labs 383 ITR 490 (Kar), that where investments are made from common pool, and non-interest bearing funds are more than the investments in tax free securities, then, no disallowance of interest expenditure u/s 14A can be made. As capital of the firm is much more than the amount of Investments, respectfully following the precedents, I order to delete the disallo…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 467/DEL/2014[2009-10]Status: DisposedITAT Delhi17 Oct 2018AY 2009-10

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 467/Del/2014 (A.Y 2009-10)

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…ITR 529 (Bom) • • CIT v. K. Raheja Corporation Pvt. Ltd: ITA No. 1260 of 2009 (Bom.) • Bright enterprises Pvt Ltd. v. CIT: 381 ITR 107 (P&H) • CIT v. Max India Ltd: 388 ITR 81 (P&H) 60 • Gurdas Garg v. CIT: ITA No.413 of 2014 (P&H) • CIT v. Microlabs Ltd. : 383 ITR 490 (Kar.) • PCIT v. Sintex Industries Ltd. : TA No.268 of 2017/82 taxmann.com 171 (Guj.) Lubi Submersibles Ltd.: ITA No.868 of 2010 (Guj.) • • CIT v. Gujarat Power Corporation Ltd.: 352 ITR 583 (Guj) Gujarat State Fertilizers and Chemicals Ltd: Tax Appeal No. 82 of 2013 (Guj HC) • CIT v. Torrent Power Ltd.: 363 ITR 474 (Guj) • CIT vs. Suzlon Energy…

Dy.CIT, Circle-3(3), Hyderabad vs. M/S Visaka Industries Limited, Secunderabad

In the result, appeal of the assessee is dismissed

ITA 860/HYD/2014[2006-07]Status: DisposedITAT Hyderabad27 Jul 2018AY 2006-07

Bench: Smt P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2006-07 Dy. Commissioner Of Income- Vs. M/S Visaka Industries Ltd., Tax, Circle – 3(3), Hyderabad. Secunderabad. Pan – Aaacv 7263 K (Appellant) (Respondent) Assessment Year: 2006-07 M/S Visaka Industries Ltd., Vs. Dy. Commissioner Of Income- Secunderabad. Tax, Circle – 3(3), Hyderabad. Pan – Aaacv 7263 K (Appellant) (Respondent)

For Appellant: Shri M.V, AnilkumarFor Respondent: Shri M. Naveen

Section 143(3)Section 147Section 148Section 80GSection 80ISection 80l

…section 80IA(5). 7. Aggrieved by the order of CIT(A), the revenue is in appeal before us. 8. Before us, ld. DR besides relying on the order of AO, placed reliance on the decision of Hon’ble Karnataka High Court in the case of Microlabs Ltd. Vs. ACIT, [2015] 56 Taxmann.com 160 (Kar.) 9. Ld. AR, on the other hand, submitted that the issue in dispute is squarely covered by the decision of the coordinate bench of this Tribunal in asssesee’s own case for AY 2005-06 in ITA No. 736/Hyd/2011 order dated 28/02/2018. He, therefore, submitted that the decision of the coordinate bench in AY 2005-06 may be followed. 10. C…

M/S Visaka Industries Limited, Secunderabad vs. DCIT, Circle-3(3), Hyderabad

In the result, appeal of the assessee is dismissed

ITA 811/HYD/2014[2006-07]Status: DisposedITAT Hyderabad27 Jul 2018AY 2006-07

For Appellant: Shri M.V, AnilkumarFor Respondent: Shri M. Naveen

Section 143(3)Section 147Section 148Section 80GSection 80ISection 80l

The Commissioner of Income Tax vs. M/S. Chaitanya Properties Pvt Ltd

ITA/569/2015HC Karnataka15 Jun 2018

Bench: S.SUJATHA,VINEET KOTHARI

Section 14ASection 260

…1/14 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 15TH DAY OF JUNE 2018 PRESENT THE HON’BLE DR.JUSTICE VINEET KOTHARI AND THE HON’BLE MRS.JUSTICE S.SUJATHA I.T.A. No.569/2015 & I.T.A.No.229/2016 BETWEEN : 1. THE COMMISSIONER OF INCOME-TAX CIT [A], C.R. BUILDING QUEENS ROAD, BANGALORE. 2. THE JOINT COMMISSIONER OF INCOME-TAX [OSD] CIRCLE- 11[2] RASHTROTHANA BHAVAN NRUPATHUNGA ROAD BANGALORE-560001. ...APPELLANTS (BY SRI K.V.ARAVIND, ADV.) AND : M/S. CHAITANYA PROPERTIES PVT. LTD., No.17, SANKEY ROAD, BANGALORE PAN: AAACC 5900A.…

The Pr.Commissioner of Income Tax CIT(A) vs. M/S. Advaith Motors Pvt Ltd

ITA/342/2016HC Karnataka12 Jun 2018

Bench: S.SUJATHA,VINEET KOTHARI

Section 14ASection 260Section 260A

…d income in the form of ‘Dividend’ as computed in accordance with Rule-8D of the Rules. 5. The relevant portions of the following two judgments are quoted below for ready reference:- (i) Commissioner of Income Tax & Anr. Vs. Microlabs Ltd., [2016] 383 ITR 490 (Karn). “39. Aggrieved by the order of CIT(A), the assessee has raised ground No.2. 40. We have heard the rival submissions. A copy of the availability of funds and investments made was filed before us which is at pages 38 to 42 of the assessee’s paperbook and the same is enclosed as ANNEXURE-III to this order. It is clear fr…

Deputy Commissioner of Income-Tax vs. K.J. Infrastructure Projects India Pvt. Ltd., Pune

In the result, appeal of the Revenue is dismissed

ITA 605/PUN/2016[2011-12]Status: DisposedITAT Pune23 Mar 2018AY 2011-12

Bench: Shri Anil Chaturvedi, Am & Shri Vikas Awasthy, Jm

For Appellant: N O N EFor Respondent: Dr. Vivek Aggarwal

Section 80ISection 80l

…आयकर अऩीऱीय अधधकरण “बी” न्यायऩीठ ऩुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE श्री अननऱ चतुर्वेदी, ऱेखा सदस्य, एर्वं श्री वर्वकास अर्वस्थी, न्यानयक सदस्य के समक्ष । BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM आयकर अऩीऱ सं. / ITA No.605/PUN/2016 ननधाारण र्वर्ा / Assessment Year : 2011-12 Dy. Commissioner of Income Tax, Central Circle – 1(2), Pune .......अऩीऱाथी / Appellant बनाम / V/s. K.J. Infrastructure Projects India Pvt. Ltd., Purandar Complex, Industrial Estate, Mukund Nagar, Pune – 411037 PAN : AADCK3385J ……प्रत्यथी / Respondent Assessee by : N O N E Revenue by : Dr. Vi…

DCIT, Madurai vs. M/S. Rajapalayam Mills Ltd., Rajapalayam

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

ITA 3165/CHNY/2016[2012-13]Status: DisposedITAT Chennai25 Jan 2018AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita No.3165/Mds/2016 "नधा"रण वष" / Assessment Year : 2012-13 The Deputy Commissioner Of M/S Rajapalayam Mills Ltd., Income Tax, V. Rajapalayam Mills Premises, Corporate Circle – 2, Pac Ramasamy Raja Salai, Madurai. Rajapalayam. Pan : Aaacr 8897 F (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri N. Madhavan, Addl.CITFor Respondent: Shri V. Jagadisan, CA

Section 14A

…namely, M/s Rajapalayam Spinning Mills Limited out of the profit generated during the year under consideration. Therefore, according to the Ld. representative, the CIT(Appeals) by placing reliance on the judgement of Karnataka High Court in CIT v. Micro Labs (383 ITR 490) found that the interest free funds were available more than the investment, therefore, there cannot be any disallowance under Section 14A of the Act. The CIT(Appeals) has also placed reliance on the judgement of Bombay High Court in CIT v. Reliance Utilities and Power Limited (313 ITR 340). 4. We have considered the rival submissions on either…

M/S.Devon Plantations & Industries Limited, Bangalore vs. Deputy Commissioner of Income-Tax, Bangalore

In the result, all the four appeals of the assessee are partly allowed

ITA 1940/BANG/2016[2007-2008]Status: DisposedITAT Bangalore17 Nov 2017AY 2007-2008

Bench: Shri. Inturi Rama Rao

For Appellant: Shri. H. N. Khincha, CAFor Respondent: Shri. M. K. Biju, JCIT

Section 14A

…ITA.1940 to 1943/Bang/2016 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'C', BENGALURU BEFORE SHRI. INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI. LALIT KUMAR, JUDICIAL, JUDICIAL MEMBER I.T.A Nos.1940 to 1943/Bang/2016 (Assessment Years : 2007-08 to 2010-11) M/s. Devon Plantations & Industries Ltd, No.29, Empire Infantry, Infantry Road, Shivaji Nagar, Bengaluru 560 001 .. Appellant PAN : AAACD7869H v. Deputy Commissioner of Income-tax, Circle -11(1), Bengaluru .. Respondent Assessee by : Shri. H. N. Khincha, CA Revenue by : Shri. M. K. Biju, JCIT Heard on : 01.11.2017 Pronounced on : 17.11.…

Asst. Commissioner of Income-Tax, Bangalore vs. M/S.Kausthubha Project Private Limited, Bangalore

In the result, appeal of the Revenue is dismissed

ITA 1310/BANG/2016[2012-2013]Status: DisposedITAT Bangalore17 Nov 2017AY 2012-2013

Bench: Shri. Inturi Rama Rao

For Appellant: NoneFor Respondent: Shri. M. K. Biju, JCIT

Section 14A

…ITA.1310/Bang/2016 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'C', BENGALURU BEFORE SHRI. INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI. LALIT KUMAR, JUDICIAL MEMBER I.T.A No.1310/Bang/2016 (Assessment Year : 2012-13) Asst. Commissioner of Income-tax, Circle – 4(1)(1), Bengaluru .. Appellant v. M/s. Kausthubha Project P. Ltd, No.4065, 18th Main, 30th cross, BSK II stage, Bengaluru 560 070 .. Respondent PAN : AACCK4123B Assessee by : None Revenue by : Shri. M. K. Biju, JCIT Heard on : 09.11.2017 Pronounced on : 17.11.2017 O R D E R PER LALIT KUMAR, JUDICIAL MEMBER : The present appeal…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is allowed in part for statistical purposes

ITA 6021/DEL/2012[2008-09]Status: DisposedITAT Delhi09 Nov 2017AY 2008-09

Bench: Shri N.K. Saini & Shri K.N. Charry

Section 143(3)Section 144CSection 144C(5)Section 14ASection 35DSection 43BSection 92C

…v. DCIT: 383 ITR 529 (Bom), CIT v. K. Raheja Corporation Pvt. Ltd: ITA No.1260 of 2009 (Bom.), Bright enterprises Pvt Ltd. v. CIT: 381 ITR 107 (P&H), CIT v. Max India Ltd: 388 ITR 81 (P&H), Gurdas Garg v. CIT: ITA No.413 of 2014 (P&H), CIT v. Microlabs Ltd. : 383 ITR 490 (Kar.), Lubi Submersibles Ltd.: ITA No.868 of 2010 (Guj.), CIT v. Gujarat Power Corporation Ltd.: 352 ITR 583 (Guj), Gujarat State Fertilizers and Chemicals Ltd: Tax Appeal No. 82 of 2013 (Guj HC), CIT v. Torrent Power Ltd.: 363 ITR 474 (Guj), CIT vs. Suzlon Energy Ltd.: 215 Taxman 272 (Guj), M/s Gogrej Agrovet Ltd. v. ACIT: ITA No. 1629/Mum/09 (…

DCIT, Bangalore vs. M/S Bosch Limited, Bangalore

In the result, the assessee's appeals are partly allowed and revenue’s appeal for the A

ITA 750/BANG/2014[2007-08]Status: DisposedITAT Bangalore06 Nov 2017AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri K.P. Kumar, Senior AdvocateFor Respondent: Shri R.N. Parbat, CIT-III (D.R)

Section 23

…to be reduced from the gross expenditure for the purpose of deduction under Section 35(2AB) of the Act. He has further contended that the Tribunal in the said order has followed the decision of Hon'ble jurisdictional High Court in the case of CIT Vs. Microlab 383 ITR 490 wherein the Hon'ble High Court has held under Section 35(2AB) of the Act. The Learned Senior Counsel for the Assessee has further referred to the details of the income and computation of income and submitted that the assessee has offered the receipts of Rs.21,19,59,000 to tax as part of the total income under the head ‘Miscellaneous Income’ and t…

Vaishnavi Infrastructure Pvt. Ltd., Bangalore vs. DCIT, Bangalore

In the result, ITA Nos.1007/Bang/2016 and 1030/Bang/2016 are allowed, and ITA

ITA 1028/BANG/2016[2009-10]Status: DisposedITAT Bangalore28 Apr 2017AY 2009-10

Bench: Shri Sunil Kumar Yadav & Shri S. Jayaraman

For Appellant: Shri H.N. Khincha, CAFor Respondent: Shri Sanjay Kumar, CIT-III(DR)(ITAT-3)

Section 14A

…ting its personal funds. Therefore, no disallowance u/s. 14A can be made by blindly applying Rule 8D of the I.T. Rules. The ld. counsel for the assessee further placed reliance upon the judgment of Hon’ble Karnataka High Court in the case of CIT v. Microlabs, 383 ITR 490 (Kar) and the judgment of Hon’ble Apex Court in the case of Munjal Sales Corporation v. CIT, 298 ITR 298 (SC) in support of his contention that if the investments were made out of mixed funds and own funds and own funds are sufficient to cover the tax free investments, then presumption will be only that the investments were made out of own funds…

Vaishnavi Infrastructure Pvt. Ltd., Bangalore vs. DCIT, Bangalore

In the result, ITA Nos.1007/Bang/2016 and 1030/Bang/2016 are allowed, and ITA

ITA 1007/BANG/2016[2008-09]Status: DisposedITAT Bangalore28 Apr 2017AY 2008-09

Bench: Shri Sunil Kumar Yadav & Shri S. Jayaraman

For Appellant: Shri H.N. Khincha, CAFor Respondent: Shri Sanjay Kumar, CIT-III(DR)(ITAT-3)

Section 14A

M/S Indian Farmers Fertiliser Cooperative Ltd., New Delhi vs. Pr CIT, New Delhi

In the result, the Appeal filed by the Assessee stands allowed

ITA 2487/DEL/2016[2010-11]Status: DisposedITAT Delhi19 Sept 2016AY 2010-11

Bench: Shri H.S. Sidhu & Shri J.S. Reddy

For Appellant: Sh. Vijay Ranjan, Adv. Sh. Vartik RFor Respondent: Sh. A.K. Saroha, CIT(DR)

Section 263Section 36(1)(iii)

…of the Act, it was consciously applied by this Court while interpreting Section 14A of the Act in HDFC Bank Ltd. (supra). ..” The above ratio has also been recently followed by the Karnataka High Court in the case of CIT Vs. Microlabs Ltd. reported at [2016] 383 ITR 490 (Karn). The consistent view held in the above cases is that if the investments made by the assessee are adequately covered by own funds the presumption would be that no borrowed funds have been diverted for making these investments and further that the onus is on the Revenue to establish nexus between the borrowed funds and the investments made…