CIT v. Raghuvir Synthetics Ltd.

354 ITR 222High Court2013#2482 most cited

What is CIT v. Raghuvir Synthetics Ltd. authority for?

Interest disallowance under section 36(1)(iii) is not valid if the assessee has sufficient interest-free funds and no direct nexus is established between borrowed funds and construction work-in-progress (CWIP).

47

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2012 to 2025.

Also referred to as

CIT v. Raghuvir Synthetics Ltd. · section 36(1)(iii) · interest free advances · construction work in progress · borrowed funds · interest disallowance · nexus · sufficient interest free funds · Gujarat HC

Sections most often in play

Section 36(1)(iii)Section 10AASection 115JBSection 142(1)Section 143(2)Section 143(3)Section 144CSection 14A

Issues it is cited on

r&d expenditureweighted deductionsection 35(2ab)interest free advancessection 92bsection 36(1)(iii)section 92ca(3)section 35section 80itransfer pricing adjustmentdisallowance under section 14asection 92ca

Judgments citing CIT v. Raghuvir Synthetics Ltd.

THE ACIT, CIRCLE-2(1)(1), AHMEDABAD vs. M/S. INTAS PHARMACEUTICALS LTD., AHMEDABAD

Accordingly, this ground raised by the Revenue is dismissed

ITA 281/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad21 May 2025AY 2015-16

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2015-16 Acit, Cir.2(1)(1) M/S.Intas Pharmaceuticals Ltd Vejalpur Vs Corporate House Ahmedabad. S.G. Highway Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L Asstt.Year : 2015-16 M/S.Intas Pharmaceuticals Ltd Acit, Cir.2(1)(1) Corporate House Vs Vejalpur S.G. Highway Ahmedabad. Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, Sr.Advocae & Shri Parin Shah, Ar : Shri Ragnesh Das, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 28/04/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144CSection 14ASection 35Section 36(1)(iii)Section 37Section 92C

…ith the business. The assessee placed reliance on several judicial precedents including: • CIT v. Reliance Utilities & Power Ltd. [(2009) 313 ITR 340 (Bom.)] • CIT v. Torrent Leasing & Finance Pvt. Ltd. [Gujarat HC] • CIT v. Raghubeer Synthetics Ltd. [(2013) 354 ITR 222 (Guj.)] • CIT v. Amod Stamping Pvt. Ltd. [(2014) 45 taxmann.com 427 (Guj.)] 81. The CIT(A), after considering the submissions and following consistent orders in assessee’s own case for earlier years (A.Ys. 2011–12 to 2014–15), deleted the disallowance. The CIT(A) recorded that the assessee had interest-free funds far exceeding the CWIP, had earn…

INTAS PHARMACEUTICALS LTD.,AHMEDABAD vs. THE DCIT, CIRCLE-2(1)(1), AHMEDABAD

Accordingly, this ground raised by the Revenue is dismissed

ITA 222/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad21 May 2025AY 2015-16

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2015-16 Acit, Cir.2(1)(1) M/S.Intas Pharmaceuticals Ltd Vejalpur Vs Corporate House Ahmedabad. S.G. Highway Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L Asstt.Year : 2015-16 M/S.Intas Pharmaceuticals Ltd Acit, Cir.2(1)(1) Corporate House Vs Vejalpur S.G. Highway Ahmedabad. Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, Sr.Advocae & Shri Parin Shah, Ar : Shri Ragnesh Das, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 28/04/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144CSection 14ASection 35Section 36(1)(iii)Section 37Section 92C

…ith the business. The assessee placed reliance on several judicial precedents including: • CIT v. Reliance Utilities & Power Ltd. [(2009) 313 ITR 340 (Bom.)] • CIT v. Torrent Leasing & Finance Pvt. Ltd. [Gujarat HC] • CIT v. Raghubeer Synthetics Ltd. [(2013) 354 ITR 222 (Guj.)] • CIT v. Amod Stamping Pvt. Ltd. [(2014) 45 taxmann.com 427 (Guj.)] 81. The CIT(A), after considering the submissions and following consistent orders in assessee’s own case for earlier years (A.Ys. 2011–12 to 2014–15), deleted the disallowance. The CIT(A) recorded that the assessee had interest-free funds far exceeding the CWIP, had earn…

GALAXY INTERNATIONAL OVERSEAS,DHUVA, WANKANER vs. INCOME TAX OFFICER, WARD-1, MORBI

ITA 54/RJT/2024[2014-15]Status: DisposedITAT Rajkot07 Mar 2025AY 2014-15

Bench: Dr. Arjun Lal Saini, Am. & Dinesh Mohan Sinha, Jm आयकरअपीलसं./Ita No. 54/Rjt/2024 "नधा"रणवष" / Assessment Year: (2014-15) (Hybrid Hearing) Galaxy International Overseas Income Tax Officer, Vs. C/O. Sarda & Sarda, Cas, Ward – 1, 1St Floor, “Sakar”, Shakti Chambers, Nh27, Anand Dr. Radhakrishnan Road, Nagar, Opp. Rajkumar College, Morbi - 363642 Rajkot – 360001. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacfg6749C (Appellant) (Respondent) Appellant By : Shri Vimal Desai, Ld. Ar Respondent By : Shri Sanjay Punglia, Ld. Cit(Dr) Date Of Hearing : 17/12/2024 Date Of Pronouncement : 07/03/2025

For Appellant: Shri Vimal Desai, Ld. ARFor Respondent: Shri Sanjay Punglia, Ld. CIT(DR)
Section 143(1)Section 143(3)Section 263Section 36(1)(iii)Section 44A

…IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, AM. & DINESH MOHAN SINHA, JM आयकरअपीलसं./ITA No. 54/RJT/2024 "नधा"रणवष" / Assessment Year: (2014-15) (Hybrid Hearing) Galaxy International Overseas Income Tax Officer, Vs. C/o. Sarda & Sarda, CAs, Ward – 1, 1st Floor, “Sakar”, Shakti Chambers, NH27, Anand Dr. Radhakrishnan Road, Nagar, Opp. Rajkumar College, Morbi - 363642 Rajkot – 360001. "थायीलेखासं./जीआइआरसं./PAN/GIR No.: AACFG6749C (Appellant) (Respondent) Appellant by : Shri Vimal Desai, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT(DR) Date of Hearing : 17/12/2024…

M/S. CADILA PHARMACEUTICALS LTD. ,AHMEDABAD vs. THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2),, AHMEDABAD

In the result, appeal of the Revenue is partly allowed for statistical purpose and the appeal of the assessee is partly allowed

ITA 383/AHD/2020[2012-13]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2012-13

Bench: Ms. Suchitra Kamble & Shri Makarand Vasant Mahadeokarassessment Year: 2012-13

Section 115JSection 144Section 2Section 35Section 36(1)(iii)Section 36(1)(vii)Section 37Section 43BSection 80I

…r took note of the fact that assessee's interest expenditure in relevant previous year reads a figure of Rs.40,10,60,348/-. We notice in this factual backdrop that a co-ordinate bench has followed various judicial precedents CIT vs. Raghuvir Synthetics (2013) 354 ITR 222 (Guj), CIT vs. Dalmia Cements Pvt. Ltd. (2002) 254 ITR 377 (Delhi), S A Builders Ltd. vs. CIT (2007) 288 ITR 1(SC) to delete identical disallowance(s) in assessment years 2006-07 & 2007-08. Hon'ble jurisdictional high court has upheld the same in Tax Appeal no. 39/2015 decided on 23.01.2015. The Revenue fails to dispute all the above facts as wel…

THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2),, AHMEDABAD vs. M/S. CADILA PHARMACEUTICALS LTD. , AHMEDABAD

In the result, appeal of the Revenue is partly allowed for statistical purpose and the appeal of the assessee is partly allowed

ITA 345/AHD/2020[2012-13]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2012-13

Bench: Ms. Suchitra Kamble & Shri Makarand Vasant Mahadeokarassessment Year: 2012-13

Section 115JSection 144Section 2Section 35Section 36(1)(iii)Section 36(1)(vii)Section 37Section 43BSection 80I

…r took note of the fact that assessee's interest expenditure in relevant previous year reads a figure of Rs.40,10,60,348/-. We notice in this factual backdrop that a co-ordinate bench has followed various judicial precedents CIT vs. Raghuvir Synthetics (2013) 354 ITR 222 (Guj), CIT vs. Dalmia Cements Pvt. Ltd. (2002) 254 ITR 377 (Delhi), S A Builders Ltd. vs. CIT (2007) 288 ITR 1(SC) to delete identical disallowance(s) in assessment years 2006-07 & 2007-08. Hon'ble jurisdictional high court has upheld the same in Tax Appeal no. 39/2015 decided on 23.01.2015. The Revenue fails to dispute all the above facts as wel…

M/S. DECCAN CHARTERS PVT LTD., ,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(2), BENGALURU

In the result ground 4 of the revenue is dismissed

ITA 1349/BANG/2024[2018-19]Status: DisposedITAT Bangalore21 Oct 2024AY 2018-19

Bench: Shri George George K. (Vice President), Ms. Padmavathy S. (Accountant Member)

For Appellant: Shri V. Srinivasan, AdvocateFor Respondent: Ms. Neha Sahay, JCIT-DR
Section 36Section 36(1)(iii)

…83 and further the Tribunal has also found that the stand of the assessee is supported by the decision of MUMBAI HIGH COURT in the case of RELIANCE UTILITIES AND POWER LTD., (313 ITRR 340) as well as Gujarat High Court in the case of RI GHUVIR SYNTHETICS LTD (354 ITR 222). 7. In our view, when both the issues are covered by the decisions of two High Courts, we do not find that any substantial question of law would arise for consideration, hence the appeal is dismissed.” 4. Since the facts in assessee's case as enumerated herein above are similar, in our considered view the ratio laid down in the above decision is…

ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-2(1)(1), VADODARA, VADODARA vs. ORIENTAL ENTERPRISES PRIVATE LIMITED, PCC NOTIFIED AREA

ITA 807/AHD/2023[2018-19]Status: DisposedITAT Ahmedabad27 Aug 2024AY 2018-19

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

For Appellant: Shri Vartik Chokshi, ARFor Respondent: Shri Ashok Natha Bhalekar, Sr.DR
Section 143(3)Section 36(1)(va)Section 37

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद "यायपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण अहमदाबाद "यायपीठ अहमदाबाद "यायपीठ“ए“, अहमदाबाद। अहमदाबाद "यायपीठ अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD सु"ी सु"च"ा का"बले,"या"यक सद"य एवं "ीमकरंद वसंत महादेवकर, लेखा सद"य के सम"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER Sl. आयकरअपील सं/ "नधा"रण वष"/ Appeal(s) by : No(s) ITA No(s) Assess- अपीलाथ" /""यथ" / ment Appellant बनाम/vs.Respondent Year(s) 1. 661/Ahd/2023 2016-17 Oriental Enterprise The ACIT Pvt.Ltd. Circle…

ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 2(1)(1), VADODARA, VADODARA vs. ORIENTAL ENTERPRISES PRIVATE LIMITED,, PCC NOTIFIED AREA

ITA 732/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad27 Aug 2024AY 2016-17

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

For Appellant: Shri Vartik Chokshi, ARFor Respondent: Shri Ashok Natha Bhalekar, Sr.DR
Section 143(3)Section 36(1)(va)Section 37

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद "यायपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण अहमदाबाद "यायपीठ अहमदाबाद "यायपीठ“ए“, अहमदाबाद। अहमदाबाद "यायपीठ अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD सु"ी सु"च"ा का"बले,"या"यक सद"य एवं "ीमकरंद वसंत महादेवकर, लेखा सद"य के सम"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER Sl. आयकरअपील सं/ "नधा"रण वष"/ Appeal(s) by : No(s) ITA No(s) Assess- अपीलाथ" /""यथ" / ment Appellant बनाम/vs.Respondent Year(s) 1. 661/Ahd/2023 2016-17 Oriental Enterprise The ACIT Pvt.Ltd. Circle…

ORIENTAL ENTERPRISE PRIVATE LIMITED,VADODARA vs. THE ACIT, CIRCLE-2(1)(2), VADODARA

ITA 661/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad27 Aug 2024AY 2016-17

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

For Appellant: Shri Vartik Chokshi, ARFor Respondent: Shri Ashok Natha Bhalekar, Sr.DR
Section 143(3)Section 36(1)(va)Section 37

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद "यायपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण अहमदाबाद "यायपीठ अहमदाबाद "यायपीठ“ए“, अहमदाबाद। अहमदाबाद "यायपीठ अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD सु"ी सु"च"ा का"बले,"या"यक सद"य एवं "ीमकरंद वसंत महादेवकर, लेखा सद"य के सम"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER Sl. आयकरअपील सं/ "नधा"रण वष"/ Appeal(s) by : No(s) ITA No(s) Assess- अपीलाथ" /""यथ" / ment Appellant बनाम/vs.Respondent Year(s) 1. 661/Ahd/2023 2016-17 Oriental Enterprise The ACIT Pvt.Ltd. Circle…

TAKSHASHILA REALTIES PRIVATE LIMITED (EARSTWHILE YOUNGSTAR INFRACON PVT. LTD.),AHMEDABAD vs. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(2) NOW CIRCLE 4(1)(1), AHMEDABAD

In the result the appeal filed by the assessee in ITA No

ITA 601/AHD/2023[2010-11]Status: DisposedITAT Ahmedabad29 May 2024AY 2010-11

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)

Section 115JSection 143(3)Section 148Section 80Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Asst Year 2010-11 Takshashila Realties Pvt. Ltd. The ACIT, (Erstwhile Youngstar Circle-4(1)(2), Infracon Pvt. Ltd.), Vs Now Circle-4(1)(2) FP No.58/3 Takshshila House, Ahmedabad. Krishnabaug Cross Roads, Maninagar, Ahmedabad-380008. PAN: AAACY3604R (Appellant) (Respondent) And Asst Year 2010-11 The DCIT, Takshashila Realties Pvt. Ltd. Circle-4(1)(1), (Erstwhile Youngstar Ahmedabad. Vs Infracon Pvt. Ltd.), FP No.58/3 Takshshila House, Krishnabaug Cross Roads, M…

DCIT, CIRCLE 4(1)(1), AHMEDABAD , AHMEDABAD vs. TAKSHASHILA REALITIES PVT. LTD. (ERSTWHILE YOUNGSTAR INFRACON PRIVATE LIMITED), AHMEDABAD

In the result the appeal filed by the assessee in ITA No

ITA 597/AHD/2023[2010-11]Status: DisposedITAT Ahmedabad29 May 2024AY 2010-11

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)

Section 115JSection 143(3)Section 148Section 80Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Asst Year 2010-11 Takshashila Realties Pvt. Ltd. The ACIT, (Erstwhile Youngstar Circle-4(1)(2), Infracon Pvt. Ltd.), Vs Now Circle-4(1)(2) FP No.58/3 Takshshila House, Ahmedabad. Krishnabaug Cross Roads, Maninagar, Ahmedabad-380008. PAN: AAACY3604R (Appellant) (Respondent) And Asst Year 2010-11 The DCIT, Takshashila Realties Pvt. Ltd. Circle-4(1)(1), (Erstwhile Youngstar Ahmedabad. Vs Infracon Pvt. Ltd.), FP No.58/3 Takshshila House, Krishnabaug Cross Roads, M…

THE ACIT, PATAN CIRCLE,, PATAN vs. M/S. RAJENA AGRO PRODUCTS PVT. LTD.,, AHMEDABAD

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

ITA 674/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad05 Aug 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 584/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2015-2016 M/S. Rajena Agro Products Pvt. Ltd. D.C.I.T., C/O. Rangwala & Co., Vs. Patan Circle, 305, Sakar-1, Patan. Opp. Nehru Bridge, Navrangpura, Ahmedabad.

For Appellant: Shri S.K. Sadhwani, A.RFor Respondent: Shri R.R. Makwana, Sr.D.R
Section 40

…of huge surplus funds is not disputed by the revenue which earned it the interest on bonds and dividend income. [Para 7] “ 23.1 We also refer the judgment of Hon’ble jurisdictional high court of Gujarat in case of CIT vs. Raghuvir Synthetics Ltd. reported in 354 ITR 222 where it was held that when huge interest free fund available and there is no evidence that the borrowed money utilized for making interest free advances. In such facts and circumstances disallowances of interest expenses is unjustifiable. For the ready reference, the headnotes of the judgment of Hon’ble Gujarat High Court (Supra) is extracted he…

RAJENA AGRO PRODUCTS PVT. LTD.,,PATAN vs. THE DY.CIT, PATAN CIRCLE,, PATAN

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

ITA 584/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad05 Aug 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 584/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2015-2016 M/S. Rajena Agro Products Pvt. Ltd. D.C.I.T., C/O. Rangwala & Co., Vs. Patan Circle, 305, Sakar-1, Patan. Opp. Nehru Bridge, Navrangpura, Ahmedabad.

For Appellant: Shri S.K. Sadhwani, A.RFor Respondent: Shri R.R. Makwana, Sr.D.R
Section 40

…of huge surplus funds is not disputed by the revenue which earned it the interest on bonds and dividend income. [Para 7] “ 23.1 We also refer the judgment of Hon’ble jurisdictional high court of Gujarat in case of CIT vs. Raghuvir Synthetics Ltd. reported in 354 ITR 222 where it was held that when huge interest free fund available and there is no evidence that the borrowed money utilized for making interest free advances. In such facts and circumstances disallowances of interest expenses is unjustifiable. For the ready reference, the headnotes of the judgment of Hon’ble Gujarat High Court (Supra) is extracted he…

THE DCIT, CIRCLE-3(1)(1),, AHMEDABAD vs. M/S. PRIYAL INTERNATIONAL PVT. LTD.,, AHMEDABAD

In the result, appeal of the Revenue is dismissed

ITA 91/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad20 Apr 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita.No.91/Ahd/2019 "नधा"रण वष"/Asstt. Year: 2015-16 Dcit, Cir.3(1)(1) M/S. Priyal Internaional P. Ltd. Ahmedabad. 297/300, Phase-Ii, Gidc Vs. Vatva, Ahmedabad. Pan : Aaecp 4640 A (Applicant) (Responent) Assessee By : Shri M.K. Patel, Advocate Revenue By : Shri S.S. Shukla, Sr. Dr सुनवाई क" तार"ख/Date Of Hearing : 04/03/2022 घोषणा क" तार"ख /Date Of Pronouncement: 20/04/2022 आदेश/O R D E R

For Appellant: Shri M.K. Patel, AdvocateFor Respondent: Shri S.S. Shukla, Sr. DR
Section 115JSection 142(1)Section 143(1)Section 143(2)Section 143(3)Section 14ASection 36(1)(iii)

…al High Court in the case of Gujarat State Fertilisers and Chemicals Ltd, reported in ITA.No.91/Ahd/2019 4 358 ITR 323, CIT vs. Gujarat Narmada Valley Fertilisers Corporation Ltd, reported in 221 taxmann for 79 and CIT vs. Raghubir Synthetics Ltd, reported in 354 ITR 222. Furthermore it was observed that the assessee’s case is squarely covered in assessee’s own case for Assessment Years 2011-12, 2012-13, 2013-14 and 2014-15 wherein on the same facts the disallowance made by the learned AO has been deleted and on that basis relying upon the same the learned CIT(A) deleted the addition made against the assessee. 8…

THE JT. CIT, RANGE-9,, AHMEDABAD vs. M/S. UNIQUE METROPOILS,, AHMEDABAD

In the result, Ground Nos

ITA 3140/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad16 Mar 2022AY 2011-12
For Appellant: Shri Bandish Soparkar, A.RFor Respondent: Shri C.S. Sharma, Sr. D.R
Section 36(1)(iii)Section 68

…nt out that a total of Rs. 3.92 crores were given as interest free advances whereas the assessee has at its disposal Rs. 8.51 crores as interest free funds. The assessee placed reliance on the decision of Gujarat High Court in the case of Raghuveer Synthetics 354 ITR 222 which is to the effect that when huge funds were available I.T.A Nos. 3140/Ahd/2015 & 3093/Ahd/2015 A.Y. 2011-12 Page No. 24 DCIT vs. Unique Metropolis without any interest liability with the assessee and there was no evidence to hold that borrowed money was utilized for the purpose of advance to sister concern, no disallowance of interest were…

M/S. UNIQUE METROPOLIS,,AHMEDABAD vs. JT.COMMISSIONER OF INCOME TAX,RANGE-9,, AHMEDABAD

In the result, Ground Nos

ITA 3093/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad16 Mar 2022AY 2011-12
For Appellant: Shri Bandish Soparkar, A.RFor Respondent: Shri C.S. Sharma, Sr. D.R
Section 36(1)(iii)Section 68

…nt out that a total of Rs. 3.92 crores were given as interest free advances whereas the assessee has at its disposal Rs. 8.51 crores as interest free funds. The assessee placed reliance on the decision of Gujarat High Court in the case of Raghuveer Synthetics 354 ITR 222 which is to the effect that when huge funds were available I.T.A Nos. 3140/Ahd/2015 & 3093/Ahd/2015 A.Y. 2011-12 Page No. 24 DCIT vs. Unique Metropolis without any interest liability with the assessee and there was no evidence to hold that borrowed money was utilized for the purpose of advance to sister concern, no disallowance of interest were…

THE PR.COMMISSIONER OF INCOME TAX, CIT(A) vs. M/S KBD SUGARS AND DISTILLERIES LTD

The appeal stands dismissed

ITA/553/2016HC Karnataka14 Dec 2021

Bench: S.SUJATHA,S VISHWAJITH SHETTY

Section 14ASection 260Section 36(1)(iii)Section 37

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF DECEMBER, 2021 PRESENT THE HON’BLE MRS. JUSTICE S.SUJATHA AND THE HON’BLE MR. JUSTICE S.VISHWAJITH SHETTY I.T.A.No.553/2016 C/W I.T.A.No.557/2016 BETWEEN: 1. The Pr. Commissioner of Income-Tax, CIT(A) 5th floor, BMTC Building, 80 feet road, Kormangala, Bangalore-560095. 2. The Asst. Commissioner of Income-Tax, Circle-11(5), Present address Circle-4(1)(1), 2nd floor, BMTC Building, 80 feet road, Kormangala, Bangalore-560095. … APPELLANTS (COMMON) (By Sri K.V.Aravind, Adv.) AN…

THE PR.COMMISSIONER OF INCOME TAX CIT (A) vs. M/S KBD SUGARS & DISTILLERIES LTD

The appeal stands dismissed

ITA/557/2016HC Karnataka14 Dec 2021

Bench: S.SUJATHA,S VISHWAJITH SHETTY

Section 14ASection 260Section 36(1)(iii)Section 37

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF DECEMBER, 2021 PRESENT THE HON’BLE MRS. JUSTICE S.SUJATHA AND THE HON’BLE MR. JUSTICE S.VISHWAJITH SHETTY I.T.A.No.553/2016 C/W I.T.A.No.557/2016 BETWEEN: 1. The Pr. Commissioner of Income-Tax, CIT(A) 5th floor, BMTC Building, 80 feet road, Kormangala, Bangalore-560095. 2. The Asst. Commissioner of Income-Tax, Circle-11(5), Present address Circle-4(1)(1), 2nd floor, BMTC Building, 80 feet road, Kormangala, Bangalore-560095. … APPELLANTS (COMMON) (By Sri K.V.Aravind, Adv.) AN…

THE COMMISSIONER OF INCOME TAX vs. M/S KBD SUGARS & DISTILLERIES LTD

The appeal stands dismissed

ITA/170/2014HC Karnataka14 Dec 2021

Bench: S.SUJATHA,S VISHWAJITH SHETTY

Section 260

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF DECEMBER, 2021 PRESENT THE HON’BLE MRS. JUSTICE S.SUJATHA AND THE HON’BLE MR. JUSTICE S.VISHWAJITH SHETTY I.T.A.No.170/2014 BETWEEN: 1. The Commissioner of Income-Tax, C.R.Building, Queens Road, Bangalore. 2. The Asst. Commissioner of Income-Tax, Circle-11(5), Rashtrothana Bhavan, Nrupathunga Road, Bangalore. … APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s. KBD Sugars & Distilleries Ltd., (Formerly Karnataka Breweries & Distilleries Pvt. Ltd.), No.17, Sankey Road, Bangalore.…

SHRI KAMLESH J. JHAVERI,AHMEDABAD vs. THE INCOME TAX OFFICER,WARD 10(1), AHMEDABAD

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

ITA 1254/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad06 Aug 2021AY 2011-12

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No.1254/Ahd/2016 नि◌धा"रण वष"/Asstt. Year: 2011-2012 Shri Kamlesh J. Jhaveri, Income Tax Officer, B/201, Siddh Silla Apartment, Vs. Ward-10(1), B/H. Ekta Tower, Ahmedabad. Barage Road, Vasna, Ahmedabad-380007. Pan: Aetpj5973L

For Appellant: Shri Asseem Thakkar, A.RFor Respondent: Shri S.S. Shukla, Sr.D.R
Section 145(3)

…ainly contended that the total interest free advance available to the appellant is much more and the AO has completely overlooked this fact while making disallowance of interest. The appellant has relied upon decisions in the case of Reghuveer Synthetics Ltd. 354 ITR 222 (Guj.) and Reliance Utilities & Power Ltd. 330 ITR 340 (Bombay). 5.5. In the judgment of Reliance Utilities & Power Ltd., it is held that if there is interest free funds available to an assessee sufficient to meet its investments and at the same time the assessee had raised a loan, it can be presumed that the investments were from the interest fr…

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CIT v. Raghuvir Synthetics Ltd. (354 ITR 222) — Cited in 47 Judgments | BharatTax