CIT v. Popular Vehicles and Services Ltd.

325 ITR 523High Court2010#17739 most cited

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2018 to 2025.

Sections most often in play

Section 10(2A)Section 143(3)Section 28(v)Section 37(1)

Judgments citing CIT v. Popular Vehicles and Services Ltd.

ROY CHERIAN KAILATH,PATHANAPURAM vs. ITO, WARD-4, KOLLAM

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

ITA 397/COCH/2024[2016-2017]Status: DisposedITAT Cochin11 Feb 2025AY 2016-2017

Bench: Shri Inturi Rama Rao

For Appellant: --- None---For Respondent: Smt.Leena Lal, Senior AR

Section 10Section 143(3)Section 28Section 37(1)

…from tax by virtue of the provisions of sec.10(2A) of the Act the interest paid on drawings cannot be allowed as deduction, placing reliance on the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Popular Vehicles & Services Ltd. (2010) 325 ITR 523. Accordingly the AO made addition by disallowing the set off of Rs.18,25,467. 4. Being aggrieved with the order of the AO, an appeal was filed before the CIT(A) and contended that the claim for allowance of expenditure should have been allowed as drawings from KEI utilized for the purpose of capital contribution to the firm KF and placed 3 ITA N…

KHAMBATTA FAMILY TRUST,AHMEDABAD vs. THE DY. CIT, CIRCLE-5(2),, AHMEDABAD

In the result, appeal of the assessee is allowed

ITA 2071/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad03 Jul 2019AY 2013-14

Bench: Shri Rajpal Yadav & Shri Pradipkumar Kediaआयकर अपील सं./ Ita No.2071/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2013-14

For Appellant: Shri P.F. Jain, ARFor Respondent: Shri S.K. Dev, Sr.DR

Section 10(34)Section 143(2)Section 14A

…-आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ - अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD – BENCH ‘A’ BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIPKUMAR KEDIA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.2071/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2013-14 Khambatta Family Trust Vs. DCIT, Cir.5(2) Pioma Industries Ahmedabad. B/h. Ellisbridge Gymkhana Ellisbridge Ahmedabad 380 006. PAN : AAAAK 0428 P (Applicant) (Respondent) Assessee by : Shri P.F. Jain, AR Revenue by : Shri S.K. Dev, Sr.DR सुनवाई क" तार"ख/Date of Hearing : 01/07/2019 घोषणा क" तार"ख /Date of Pronouncement: 03/07/2019 आदेश/O R D E…

RASNA PVT. LTD.,,AHMEDABAD vs. THE DY. CIT.,CIRCLE-3(1)(2),, AHMEDABAD

In the result, appeal ITA 2334/Ahd/2015 filed by assessee is partly allowed

ITA 2334/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad30 Jan 2019AY 2010-11

For Appellant: Shri P.F. Jain, A.RFor Respondent: Shri Lalit P. Jain, Sr. D.R

Section 143(3)Section 36Section 41(1)

…any dividend in the year under consideration, the disallowance u/s14A on the expenditure incurred for earning income was disallowable, notwithstanding the fact that no such income was earned. Honable Kerala HC in case of Popular Vehicles & Services Ltd [(2010)325 ITR 523 (Ker)] has held The assessee borrowed funds from banks, which were diverted to partnership firms, in which it was a partner. HC noted that the assessee did not receive any interest from those firms. The only benefit derived was share of profit, which was exempt u/s 10(2A). HC sustained the disallowance of interest by invoking provisions of Sec.14…

SYMPHONY LTD.,,AHMEDABAD vs. THE DY.CIT, CIRCLE-8,, AHMEDABAD

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

ITA 2133/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad16 Jan 2019AY 2010-11

For Appellant: Shri Bharat Shah, A.RFor Respondent: Shri Mudit Nagpal, Sr. D.R

Section 14Section 143(2)Section 143(3)Section 14ASection 14A(2)Section 14A(3)

…dividend in the year under consideration, the disallowance u/s. 14A on the expenditure incurred for earning income was disallowable, notwithstanding the fact that no such income was earned. Hon’ble Kerala HC in case of Popular Vehicles & Services Ltd. [(2010) 325 ITR 523 (Kel)] has held. The assessee borrowed funds from banks, which were diverted to partnership firms, in which it was a partner HC noted that the assessee did not receive any interest from those firms. The only benefit derived was share of profit which was exempt u/s. 10(2A). HC sustained the disallowance of interest by invoking provisions of Sec. 1…

TIL HEALTHCARE PVT LTD.,CHENNAI vs. ACIT CORPORE WARD 3(1), CHENNAI

In the result, the appeal of the assessee is allowed

ITA 2416/CHNY/2017[2012-13]Status: DisposedITAT Chennai17 Apr 2018AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri A.Mohan Alankamonyआयकर अपील सं./I.T.A.No.2416/Chny/2017 ("नधा"रण वष" / Assessment Year: 2012-13) Vs The Acit, M/S. Til Healthcare Pvt. Ltd., Corporate Ward – 3(1), Jhaver Centre, Raja Annamalai Building, Chennai. No.72, Marshalls Road, Egmore, Chennai – 600 008. Pan: Aabct0985H (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri T. Banusekar, Ca अपीलाथ" क" ओर से/ Appellant By : Shri Ar.V. Sreenivasan, Jcit ""यथ" क" ओर से/Respondent By : 08.02.2018 सुनवाई क" तार"ख/Date Of Hearing : 17.04.2018 घोषणा क" तार"ख /Date Of Pronouncement

For Appellant: Shri AR.V. Sreenivasan, JCITFor Respondent: 08.02.2018

Section 10Section 143(2)Section 143(3)Section 14ASection 250(6)Section 36(1)(iii)

…24 ITR 396, the decision of the Hon’ble Jurisdictional Madras High Court in the case K. Somasundaram & Bros. vs. CIT reported in 238 ITR 939, the decision of the Hon’ble High Court of Kerala in the case CIT vs. Popular Vehicles and Services Ltd., reported in 325 ITR 523 and the decision of the Hon’ble Jurisdictional Madras High Court in the case CIT vs. P. Ganu Rao & Sons reported in 185 ITR 324 confirmed the order of the Ld.AO by holding that the appellant had diverted interest bearing borrowed loans to three parties without charging interest which amounts to diversion of business fund for non-business purpos…