CIT v. Nectar Life Science Ltd.

335 ITR 144High Court2011#7860 most cited

What is CIT v. Nectar Life Science Ltd. authority for?

Interest paid on loans is an allowable deduction against interest income earned from fixed deposits when the borrowed funds were used to generate that income.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2012 to 2022.

Also referred to as

CIT v. Nectar Life Science Ltd. · Section 57(iii) · interest deduction · interest income · fixed deposits · borrowed funds · wholly and exclusively for earning income · netting of interest

Also reported as

203 Taxmann 318
Read the full judgment

Judgments citing CIT v. Nectar Life Science Ltd.

Narayan Industires, New Delhi vs. ACIT, Circle- 60(1), New Delhi

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

ITA 6153/DEL/2017[2014-15]Status: DisposedITAT Delhi30 Jun 2022AY 2014-15

Bench: Sh. Aakash Deep Jaindr. B. R. R. Kumar

For Appellant: Sh. Rohit Jain, Adv. &For Respondent: Sh. N. K. Bansal, Sr. DR
Section 253

… ACG Associated Capsules (P.) Ltd. vs. CIT 343 ITR 89 (SC)  Shri Ram Honda Power Equipments 289 ITR 475 (Del.)(approved by SC in [2012] 18 taxmann.com 137 (SC))  CIT vs. Nectar Life Science Ltd. 203 Taxman 318 (Del.)  CIT vs. Taj International Jewellers 335 ITR 144 (Del.)  CIT vs. UK Bose 212 Taxman 399 (Del.)  CIT vs. Paliwal Industries 222 Taxman 61 (P&H)  CIT vs. Infosys Technologies Ltd 352 ITR 74 (Kam)  CIT vs. Gokkuldas Exports 333 ITR 214 (Kar.) 35. After going through the entire issue, we hold that interest earned out of the fixed deposit made from the surplus funds being not connected to the m…

Vijaya Bank Employees Housing Co-Operative Society Ltd., Bangalore vs. ACIT, Bangalore

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

ITA 603/BANG/2014[2010-11]Status: DisposedITAT Bangalore15 Jul 2021AY 2010-11

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.V.Chandrashekhar, AdvocateFor Respondent: Shri Priyadarshi Mishtra, Addl.CIT-DR
Section 143(2)Section 251Section 251(2)

…) had held that when interest income and interest expenditure are inextricably linked and there was commonality in nature and purpose, the expenditure is allowable as deduction u/s 57(iii) of the I.T.Act. In the case of Taj International Jewellers reported in 335 ITR 144, the Hon’ble Delhi High Court had held that when there is no dispute that money obtained on loan was converted and made into fixed deposit receipts, the interest on loan was an allowable deduction against the interest income earned from fixed deposit. 12.9 The Assessing Officer has taken a view that there is no obligation on the assessee-society…

M/S Vijaya Bank Employees Housing Co-Operative Society Ltd, Bangalore vs. Income Tax Officer Ward-4(3)(3), Bangalore

In the result, the appeals filed by the assessee are partly allowed, as indicated above

ITA 772/BANG/2018[2014-15]Status: DisposedITAT Bangalore01 Apr 2021AY 2014-15

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Chandrashekar, AdvocateFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143(3)Section 148

…) had held that when interest income and interest expenditure are inextricably linked and there was commonality in nature and purpose, the expenditure is allowable as deduction u/s 57(iii) of the I.T.Act. In the case of Taj International Jewellers reported in 335 ITR 144, the Hon’ble Delhi High Court had held that when there is no dispute that money obtained on loan was converted and made into fixed deposit receipts, the interest on loan was an allowable deduction against the interest income earned from fixed deposit. 12.9 The Assessing Officer has taken a view that there is no obligation on the assessee-society…

M/S Vijaya Bank Employees Housing Co-Operative Society Ltd, Bangalore vs. Assistat Commissioner of Income Tax Circle-4(3)(1), Bangalore

In the result, the appeals filed by the assessee are partly allowed, as indicated above

ITA 771/BANG/2018[2013-14]Status: DisposedITAT Bangalore01 Apr 2021AY 2013-14

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Chandrashekar, AdvocateFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143(3)Section 148

…) had held that when interest income and interest expenditure are inextricably linked and there was commonality in nature and purpose, the expenditure is allowable as deduction u/s 57(iii) of the I.T.Act. In the case of Taj International Jewellers reported in 335 ITR 144, the Hon’ble Delhi High Court had held that when there is no dispute that money obtained on loan was converted and made into fixed deposit receipts, the interest on loan was an allowable deduction against the interest income earned from fixed deposit. 12.9 The Assessing Officer has taken a view that there is no obligation on the assessee-society…

M/S Vijaya Bank Employees Housing Co-Operative Society Ltd, Bangalore vs. Assistat Commissioner of Income Tax Circle-4(2)(1), Bangalore

In the result, the appeals filed by the assessee are partly allowed, as indicated above

ITA 770/BANG/2018[2012-13]Status: DisposedITAT Bangalore01 Apr 2021AY 2012-13

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Chandrashekar, AdvocateFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143(3)Section 148

…) had held that when interest income and interest expenditure are inextricably linked and there was commonality in nature and purpose, the expenditure is allowable as deduction u/s 57(iii) of the I.T.Act. In the case of Taj International Jewellers reported in 335 ITR 144, the Hon’ble Delhi High Court had held that when there is no dispute that money obtained on loan was converted and made into fixed deposit receipts, the interest on loan was an allowable deduction against the interest income earned from fixed deposit. 12.9 The Assessing Officer has taken a view that there is no obligation on the assessee-society…

M/S Vijaya Bank Employees Housing Tax Co-Operative Society Ltd, Bangalore vs. Assistant Commissioner of Income Tax Circle-10(1), Bangalore

In the result, the appeals filed by the assessee are partly allowed, as indicated above

ITA 769/BANG/2018[2011-12]Status: DisposedITAT Bangalore01 Apr 2021AY 2011-12

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Chandrashekar, AdvocateFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143(3)Section 148

…) had held that when interest income and interest expenditure are inextricably linked and there was commonality in nature and purpose, the expenditure is allowable as deduction u/s 57(iii) of the I.T.Act. In the case of Taj International Jewellers reported in 335 ITR 144, the Hon’ble Delhi High Court had held that when there is no dispute that money obtained on loan was converted and made into fixed deposit receipts, the interest on loan was an allowable deduction against the interest income earned from fixed deposit. 12.9 The Assessing Officer has taken a view that there is no obligation on the assessee-society…

M/S Vijaya Bank Employees Housing Co-Operative Society Ltd, Bangalore vs. Assistant Commissioner of Income Tax Circle-10(1), Bangalore

In the result, the appeals filed by the assessee are partly allowed, as indicated above

ITA 768/BANG/2018[2009-10]Status: DisposedITAT Bangalore01 Apr 2021AY 2009-10

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Chandrashekar, AdvocateFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143(3)Section 148

…) had held that when interest income and interest expenditure are inextricably linked and there was commonality in nature and purpose, the expenditure is allowable as deduction u/s 57(iii) of the I.T.Act. In the case of Taj International Jewellers reported in 335 ITR 144, the Hon’ble Delhi High Court had held that when there is no dispute that money obtained on loan was converted and made into fixed deposit receipts, the interest on loan was an allowable deduction against the interest income earned from fixed deposit. 12.9 The Assessing Officer has taken a view that there is no obligation on the assessee-society…

M/S Viijaya Bank Employees Housing Co-Operative Society Ltd, Bangalore vs. Assistant Commissioner of Income Tax Circle-10(1), Bangalore

In the result, the appeals filed by the assessee are partly allowed, as indicated above

ITA 767/BANG/2018[2008-09]Status: DisposedITAT Bangalore01 Apr 2021AY 2008-09

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Chandrashekar, AdvocateFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143(3)Section 148

…) had held that when interest income and interest expenditure are inextricably linked and there was commonality in nature and purpose, the expenditure is allowable as deduction u/s 57(iii) of the I.T.Act. In the case of Taj International Jewellers reported in 335 ITR 144, the Hon’ble Delhi High Court had held that when there is no dispute that money obtained on loan was converted and made into fixed deposit receipts, the interest on loan was an allowable deduction against the interest income earned from fixed deposit. 12.9 The Assessing Officer has taken a view that there is no obligation on the assessee-society…

M/S Vijaya Bank Employees Housing Co-Operative Society Ltd, Bangalore vs. Assistant Commissioner of Income Tax Circle-10(1), Bangalore

In the result, the appeals filed by the assessee are partly allowed, as indicated above

ITA 766/BANG/2018[2007-08]Status: DisposedITAT Bangalore01 Apr 2021AY 2007-08

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Chandrashekar, AdvocateFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143(3)Section 148

…) had held that when interest income and interest expenditure are inextricably linked and there was commonality in nature and purpose, the expenditure is allowable as deduction u/s 57(iii) of the I.T.Act. In the case of Taj International Jewellers reported in 335 ITR 144, the Hon’ble Delhi High Court had held that when there is no dispute that money obtained on loan was converted and made into fixed deposit receipts, the interest on loan was an allowable deduction against the interest income earned from fixed deposit. 12.9 The Assessing Officer has taken a view that there is no obligation on the assessee-society…

Plaza Partners, New Delhi vs. ACIT, Circle- 52(1), New Delhi

The appeal of the assessee is allowed

ITA 6728/DEL/2017[2011-12]Status: DisposedITAT Delhi02 Mar 2021AY 2011-12

Bench: Sh. Amit Shukladr. B. R. R. Kumar(Through Video Conferencing) Ita No. 6728/Del/2017 : Asstt. Year : 2011-12 Plaza Partners, Vs Acit, 301-303, Mercantile House, 15, Circle-52(1), K.G. Marg, New Delhi-110001 New Delhi (Appellant) (Respondent) Pan No. Aaffp2318B Assessee By : None Revenue By : Sh. Apoorva Bhardwaj, Sr. Dr Date Of Hearing: 04.02.2021 Date Of Pronouncement: 02.03.2021

For Appellant: NoneFor Respondent: Sh. Apoorva Bhardwaj, Sr. DR
Section 10(34)Section 250(6)Section 271(1)(c)Section 274Section 57

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI Before Sh. Amit Shukla, Judicial Member Dr. B. R. R. Kumar, Accountant Member (Through Video Conferencing) ITA No. 6728/Del/2017 : Asstt. Year : 2011-12 Plaza Partners, Vs ACIT, 301-303, Mercantile House, 15, Circle-52(1), K.G. Marg, New Delhi-110001 New Delhi (APPELLANT) (RESPONDENT) PAN No. AAFFP2318B Assessee by : None Revenue by : Sh. Apoorva Bhardwaj, Sr. DR Date of Hearing: 04.02.2021 Date of Pronouncement: 02.03.2021 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of the…

ACIT (Ltu), New Delhi vs. M/S Havells India Ltd., New Delhi

In the result, appeal of the assessee is partly allowed

ITA 466/DEL/2011[2007-08]Status: DisposedITAT Delhi25 Aug 2020AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishihavells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Circle-12(1), Civil Lines, New Delhi Cr Building Ip Estate, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Havells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Ltu, Nbcc Plaza, Civil Lines, New Delhi Pusp Vihar, Sector-4, Saket, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Acit (Ltu), Vs. Havells India Ltd, Nbcc Plaza, Pusp Vihar, Sector- 1/7 Ram Kishore Road, 4, Saket, New Delhi Civil Lines, New Delhi Pan: Aaach0351E (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Saras Kumar, Sr. DR
Section 143(3)Section 144ASection 14ASection 80H

…er multiplied reliance on following decisions i. CIT vs. Paliwal Industries : 42 Taxmann.com 412 (P&H) ii. Shri Ram Honda Power Equipments: 289 ITR 475 (Del.) iii. CIT vs Nectar Life Science Ltd.: 203 Taxman 318 (Del.) iv. CIT v. Taj International Jewellers: 335 ITR 144 (Del.) v. CIT v UK Bose: 212 Taxman 399 (Del.) vi. CIT v. Infosys Technologies Ltd: 352 ITR 74 (Karn) vii. CIT v. Gokkuldas Exports: 333 ITR 214 (Kar.) viii. Paramount Trading Corporation: 98 ITD 77 (Del.) (TM) He therefore submitted that CIT(A) erred in affirming the action of assessing officer in not reducing interest received against interes…

M/S Havells India Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 6073/DEL/2010[2007-08]Status: DisposedITAT Delhi25 Aug 2020AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishihavells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Circle-12(1), Civil Lines, New Delhi Cr Building Ip Estate, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Havells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Ltu, Nbcc Plaza, Civil Lines, New Delhi Pusp Vihar, Sector-4, Saket, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Acit (Ltu), Vs. Havells India Ltd, Nbcc Plaza, Pusp Vihar, Sector- 1/7 Ram Kishore Road, 4, Saket, New Delhi Civil Lines, New Delhi Pan: Aaach0351E (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Saras Kumar, Sr. DR
Section 143(3)Section 144ASection 14ASection 80H

…er multiplied reliance on following decisions i. CIT vs. Paliwal Industries : 42 Taxmann.com 412 (P&H) ii. Shri Ram Honda Power Equipments: 289 ITR 475 (Del.) iii. CIT vs Nectar Life Science Ltd.: 203 Taxman 318 (Del.) iv. CIT v. Taj International Jewellers: 335 ITR 144 (Del.) v. CIT v UK Bose: 212 Taxman 399 (Del.) vi. CIT v. Infosys Technologies Ltd: 352 ITR 74 (Karn) vii. CIT v. Gokkuldas Exports: 333 ITR 214 (Kar.) viii. Paramount Trading Corporation: 98 ITD 77 (Del.) (TM) He therefore submitted that CIT(A) erred in affirming the action of assessing officer in not reducing interest received against interes…

M/S Havells India Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 6072/DEL/2010[2004-05]Status: DisposedITAT Delhi25 Aug 2020AY 2004-05

Bench: Shri Amit Shukla & Shri Prashant Maharishihavells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Circle-12(1), Civil Lines, New Delhi Cr Building Ip Estate, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Havells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Ltu, Nbcc Plaza, Civil Lines, New Delhi Pusp Vihar, Sector-4, Saket, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Acit (Ltu), Vs. Havells India Ltd, Nbcc Plaza, Pusp Vihar, Sector- 1/7 Ram Kishore Road, 4, Saket, New Delhi Civil Lines, New Delhi Pan: Aaach0351E (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Saras Kumar, Sr. DR
Section 143(3)Section 144ASection 14ASection 80H

…er multiplied reliance on following decisions i. CIT vs. Paliwal Industries : 42 Taxmann.com 412 (P&H) ii. Shri Ram Honda Power Equipments: 289 ITR 475 (Del.) iii. CIT vs Nectar Life Science Ltd.: 203 Taxman 318 (Del.) iv. CIT v. Taj International Jewellers: 335 ITR 144 (Del.) v. CIT v UK Bose: 212 Taxman 399 (Del.) vi. CIT v. Infosys Technologies Ltd: 352 ITR 74 (Karn) vii. CIT v. Gokkuldas Exports: 333 ITR 214 (Kar.) viii. Paramount Trading Corporation: 98 ITD 77 (Del.) (TM) He therefore submitted that CIT(A) erred in affirming the action of assessing officer in not reducing interest received against interes…

CIT vs. Taj International Jewellers

Appeal is dismissed

ITA - 113 / 2012HC Delhi21 Feb 2012

Bench: The Tribunal. A 2012:Dhc:1173-Db

Section 57

…on the loan from the interest received on deposits. On appeal, the assessee succeeded before the tribunal. A 2012:DHC:1173-DB ITA 113/2012 Page 3 of 3 Division Bench of this Court vide decision dated 13.12.2010, reported in (2011) 335 ITR 144 has dismissed the appeal of the Revenue and held that the interest paid should be allowed under Section 57(iii) of the Act as the amount was borrowed from the bank taking advantage of the Exim Policy as well as lower LIBOR rate of interest. The interest paid was expenditure laid out and expended wholly and exclusively for the purpose of ma…

CIT v. Nectar Life Science Ltd. (335 ITR 144) — Cited in 14 Judgments | BharatTax