How many judgments cite CIT v. Raghuvir Synthetics Ltd.?

47 judgments on BharatTax cite CIT v. Raghuvir Synthetics Ltd. (354 ITR 222), spanning 2012 to 2025.

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

It is most often cited in judgments turning on Section 36(1)(iii), Section 10AA, Section 115JB, Section 142(1), Section 143(2), Section 143(3).

CIT v. Raghuvir Synthetics Ltd.

354 ITR 222High Court2013#2479 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).

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 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 10AA Section 115JB Section 142(1)Section 143(2)Section 143(3)Section 144C Section 14A

Issues it is cited on

r&d expenditure weighted deduction section 35(2ab)interest free advances section 92b section 36(1)(iii)section 92ca(3)section 35 section 80i transfer pricing adjustment disallowance under section 14a section 92ca

Judgments citing CIT v. Raghuvir Synthetics Ltd.

M/S. D.Khushalbhai Jewellers, Surat vs. Asstt. Commissioner of Income Tax, Surat

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

ITA 822/AHD/2015[2010-11]Status: DisposedITAT Surat13 May 2021AY 2010-11

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita No.822/Ahd/2015 ("नधा"रणवष" / Assessment Years: (2010-11) (Virtual Court Hearing) M/S. D. Khushalbhai Jewellers, Vs. The Acit, Circle-3, 1, Khandwala Estate, Parle Point, Surat. Surat. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabfd7547G (Assessee) (Respondent)

For Appellant: Shri Mehul Patel, ARFor Respondent: Ms Usha Shrote, Sr. DR

Section 143(3)Section 40

…interest free advances amounting to Rs.3.42 cores. In order to fortify ourselves, we make reference to the decision of Hon’ble Bombay high Court in the case of CIT Vs. Reliance utilities and Power Ltd., 313 ITR 340 (Bom) and CIT Vs. Reghuvir Synthetics ltd., 354 ITR 222 (Guj). Therefore, we allow this ground of appeal and delete addition of Rs.24,48,592/-.” 10. We note that Coordinate Bench in the case of Nik-San Engineering Co. Ltd(supra) has relied on the judgment of the Hon`ble Bombay High Court in the case of Reliance utilities and Power Ltd., 313 ITR 340 (Bom), and deleted the addition. The assessee`s fact…

M/S. Safina Hotels Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 6(1)(1), Bangalore

In the result, the appeal of the assessee is allowed

ITA 2512/BANG/2019[2016-17]Status: DisposedITAT Bangalore09 Nov 2020AY 2016-17

Bench: Shri N.V. Vasudevan & Shri Chandra Poojarim/S. Safina Hotels Pvt. Ltd., 84/85, Safina Plaza, Infantry Road, Bangalore-560 001 ….Appellant Pan Aaccs 5146G Vs. Dy. Commissioner Of Income Tax, Circle 6(1)(1), Bangalore. ……Respondent. Assessee By: Shri Tata Krishna, Advocate. Revenue By: Shri Kannan Narayanan, Jcit(D.R)

For Appellant: Shri Tata Krishna, AdvocateFor Respondent: Shri Kannan Narayanan, JCIT(D.R)

Section 143(2)Section 143(3)Section 32Section 37

…s India Ltd. [1991] 188 ITR 44 (SC) vi. Vipin Kumar Khanna v. CIT [2001] 251 ITR 7822 (Delhi) vii. CIT vs. Dalmia Cement P. Ltd., (2002) 254 ITR 377(Del) viii. PCIT v. Reebok India Company [2018] 409 ITR 587 (Delhi) ix. CIT v. Raghuvir Synthetics Ltd [2013] 354 ITR 222 (Gujarat) x. Q PCIT v. Chain House International (P.) Ltd. [2018] 98 taxmann.com 47 (Madhya Pradesh) xi. John Laing International Ltd. v. DCIT [2013] 145 ITD 145 (Delhi Trib.) xii. Km. Preeti Singh v. ITO [2019] 176 ITD 137 (Delhi - Trib.) 5. According to the ld. AR, the assessee is entitled depreciation since the assessee fulfilled the conditi…

DCIT, Cir-3(1)(1), Ahmedabad vs. M/S Core Health Care Ltd., Ahmedabad

In the result, appeal filed by the Revenue is dismissed

ITA 1968/AHD/2017[2004-05]Status: DisposedITAT Ahmedabad08 Jan 2020AY 2004-05

Bench: Shri Mahavir Prasad & Shri Amarjit Singh)

For Appellant: Shri O.P. Vaishnav, CIT/DRFor Respondent: Shri S. N. Soparkar, AR

Section 36(1)(iii)

…her for commercial expediency to its sister concern or the assessee was having surplus interest free funds available with it. He has relied upon a decision of this Court in the case of Commissioner of Income Tax vs. Raghuvir Synthetics Ltd. reported in [2013] 354 ITR 222 (Guj). 6. Having heard Mr. Mehta, learned advocate appearing on behalf of the Department and Mr.Soparkar, learned Senior Advocate appearing on behalf of the assessee and the question posed for consideration by us we are of the opinion that the Tribunal has not committed any error in deleting the addition made on account of disallowance of interes…

Nik-San Engineering Co. Ltd., Mumbai vs. The Dy. CIT, Circle - 2(1)(1), Baroda

In the result, appeal of the assessee in ITA No

ITA 2787/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad20 Nov 2019AY 2014-15

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed1. आयकर अपील सं./Ita No.2786/Ahd/2017 2. आयकर अपील सं./Ita No.2787/Ahd/2017 ("नधा"रण वष"/Assessment Years : 2013-14 & 2014-15 Res Pe Ctiv Ely) 1-2. Nik-San Engineering 1-2. The Dcit बनाम/ Co.Ltd. Cicle-2(1)(1) Vs. 201, 204, Vikas Chambers Aayakar Bhavan Jn. Of Link & Marve Road Baroda Malad West, Mumbai "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcn 8963 D .. (अपीलाथ"/Appellant) (""यथ" / Respondent) अपीलाथ" ओर से/ Appellant By : Written Submission ""यथ" क" ओर से/Respondent By: Shri L.P. Jain, Sr.Dr

For Appellant: Written submissionFor Respondent: Shri L.P. Jain, Sr.DR

Section 139(1)

…interest free advances amounting to Rs.3.42 cores. In order to fortify ourselves, we make reference to the decision of Hon'ble Bombay high Court in the case of CIT Vs. Reliance utilities and Power Ltd., 313 ITR 340 (Bom) and CIT Vs. Reghuvir Synthetics ltd., 354 ITR 222 (Guj). Therefore, we allow this ground of appeal and delete addition of Rs.24,48,592/-. 5. In ground no.2, the assessee has challenged confirmation of addition of Rs.74,177/-, but the Id.counsel for the assessee did not press this ground of appeal, hence, it is rejected. 6. In the result, the appeal of the assessee is partly allowed.” 8. Thus, i…

Shri Hiren Balkrishana Oza, Ahmedabad vs. The Income Tax Officer, Ward-1(3)(2), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 603/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad01 Oct 2019AY 2012-13

Bench: Shri Kul Bharat & Shri Waseem Ahmedआयकर अपील सं./Ita No. 603/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 Shri Hiren Balkrishana Oza, I.T.O, K/302 Dec Castel, Vs. Ward-1(3)(2) B/H Hotel Topaz, Ahmedabad. Govindwadi, Isanpur, Ahmedabad-380063. Pan: Aanpo8935B

Section 250

…ingly there cannot be any disallowance on account of diversion of interest-bearing fund for non-commercial purposes. In this regard we find support and guidance from the judgment of Hon’ble Gujarat High Court in the case of Raghuvir synthetics Ltd reported in 354 ITR 222 wherein it was held as under: Asstt. Year 2012-13 11 9. We may refer to the judgment of the apex court at this stage given in case of S. A. Builders Ltd. v. CIT [2007] 288 ITR 1/158 Taxman 74 (SC) where the question was whether interest on funds borrowed by the assessee to give an interest-free loan to sister concern should be allowed as deducti…

Shri Dinesh Mills Ltd., Baroda vs. The ACIT, Circle -2(1)(1), Baroda

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

ITA 781/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad25 Sept 2019AY 2012-13

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri Bandish Soparkar, ARFor Respondent: Shri N.R. Soni, CIT-DR &

Section 10Section 11Section 115JSection 12Section 14ASection 154ASection 194HSection 40(1)(ia)

…owed. He relied on the following decisions of this Court: 1) Commissioner of Income tax-II v. Hitachi Home and Life Solutions (I) Ltd. reported in (2014) 41 taxmann.com 540 (Gujrat). 2) Commissioner of Income tax v. Rgghuvir Synthetics Ltd. reported in (2013) 354 ITR 222 (Guj). ITA No.781/Ahd/2016 & 3 others Shree Dinesh Mills Ltd. vs. DCIT/ACIT (cross-appeals) Asst.Years – 2012-13 & 2013-14 8. On the other hand learned counsel Shri Parikh supported the view of the Tribunal contending that the assessee failed to demonstrate that interest free funds were available for diversion to sister concern. The principle…

Shri Vimal Ramniklal Ambani, Ahmedabad vs. The ITO, Ward-4(1)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 2500/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad18 Jul 2019AY 2013-14

For Appellant: Shri S.N. Soparkar, A.RFor Respondent: Smt. Somogyan Pal, Sr.DR

Section 10(34)Section 14ASection 36(1)(iii)

…the own fund of the assessee exceeds the amount of the loans and advances diverted for nonbusiness purposes. In this regard we find support and guidance from the judgment of Hon’ble Gujarat High Court in the case of CIT versus rugby synthetics Ltd reported in 36 Taxmann.com 275 wherein it was held as under: “It found that the interest-free funds available with the assessee was far greater than the loan advanced to the sister concerns and as a corollary to that, it concluded that the borrowed money was not utilized for the purpose of advance to the sister concerns, as had been noted by the Assessing Officer.” Page…

Shri Vimal Ramniklal Ambani, Ahmedabad vs. The ITO, Ward-4(1)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 2499/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad18 Jul 2019AY 2012-13

For Appellant: Shri S.N. Soparkar, A.RFor Respondent: Smt. Somogyan Pal, Sr.DR

Section 10(34)Section 14ASection 36(1)(iii)

M/S Deepak Cales Inda Limited, Bangalore vs. Addl.C.I.T., Bangalore

In the result, the assessee’s appeals for Assessment Years 2011-12 and 2012-13 are partly allowed

ITA 1286/BANG/2016[2012-13]Status: DisposedITAT Bangalore04 Jun 2019AY 2012-13

Bench: Shri N. V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri. Suresh Muthukrishnan, CAFor Respondent: Dr. P. V. Pradeep Kumar, Addl. CIT

Section 143(3)Section 14ASection 234Section 36Section 41

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER ITA Nos. and APPELLANT RESPONDENT Assessment Year 1285 /Bang/2016 M/s. Deepak Cables India Ltd., The Additional Commissioner 2011-12 #07, N S Iyengar Street, of Income-Tax, Seshadripuram, Range – 11, Bangalore – 560 020. Bangalore. PAN : AACCD 6466 C 1286/Bang/2016 The Deputy Commissioner of 2012-13 -do- Income-Tax, Circle – 1(1)(1), Bangalore. Assessee by : Shri. Suresh Muthukrishnan, CA Revenue by : Dr. P. V. Pradeep Kumar, Addl. CIT Date of hearing : 21.03.2019 Date o…

M/S Deepak Cales Inda Limited, Bangalore vs. Addl.C.I.T., Bangalore

In the result, the assessee’s appeals for Assessment Years 2011-12 and 2012-13 are partly allowed

ITA 1285/BANG/2016[2011-12]Status: DisposedITAT Bangalore04 Jun 2019AY 2011-12

Bench: Shri N. V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri. Suresh Muthukrishnan, CAFor Respondent: Dr. P. V. Pradeep Kumar, Addl. CIT

Section 143(3)Section 14ASection 234Section 36Section 41

The DCIT., Circle-1(1)(1), Ahmedabad vs. Amjay Medi-Max India Pvt.Ltd., Ahmedabad

In the result, revenue’s appeal is dismissed

ITA 2695/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad30 Apr 2019AY 2014-15

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

For Appellant: Shri Mudit Nagpal, Sr. D.RFor Respondent: Shri A. L. Thakkar, A.R

Section 143(1)Section 143(2)Section 143(3)Section 14ASection 36(1)(iii)

…taken care of in its proper prospective DCIT vs. Amjay Medi-Max (India) Pvt. Ltd. Asst.Year – 2011-12 of the Learned CIT(A) on the basis of the judgment passed by the Jurisdictional High Court in the case of CIT-vs-Raghuvir Synthetics Ltd. reported in (2013) 354 ITR 222 (Guj.) deleted such addition made by the Learned AO. It was further observed that the ratio laid down by the Hon’ble Gujarat High Court in the case of Gujarat Narmada Valley Fertilizers Co. Ltd. that if the company is having own funds far excess than advance to the sister concern and without establishing the nexus by the Assessing Officer the dis…

Shri Kamlesh Gangaram Mali, Ahmedabad vs. The Dy.CIT, Circle-9, Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 3617/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad02 Apr 2019AY 2011-12

Bench: Shri Rajpal Yadavआयकर अपील सं./ Ita No.3617/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-12 M/S.Kamlesh Gangaram Mali Vs. The Dcit A-48, Vadilal Park Cir.9, Ahmedabad. Lbs Marg, Bapunagar Ahmedabad 382 350 Pan : Adepm 0249 E

For Appellant: Shri S.N. Divetia, ARFor Respondent: Ms.Somoyjan Pal, Sr.DR

Section 143(2)Section 68

…id not bring any relief to the assessee. ITA No.3617 /Ahd/2015 4 8. Before me, the assessee has demonstrated that he has interest free funds in the capital account to the tune of Rs.39,08,727/-. Hon’ble Gujarat High Court in the case of Raghuvir Synthetics, 354 ITR 222 has held that where the assessee has more interest free funds, then it could be presumed that the advances are given out of such interest free funds. Therefore, it can be construed that these interest free funds were given by the assessee from his interest free capital account. No disallowance on account of interest expenditure can be made. This…

M/S. Gaurav Hotels Pvt. Ltd., Baroda vs. The Income Tax Officer, Ward-1(1)(3), Baroda

In the result, appeal of the assessee in ITA

ITA 1041/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad27 Mar 2019AY 2012-13

Bench: Shri Rajpal Yadav, Judicial Memebr & Shri Pradip Kumar Kedia

For Respondent: Shri Rajesh Kumar, Sr. D.R

Section 143(3)Section 36(1)(iii)

…s of advancing interest free loans. The act of advancing interest free loan therefore has no relation to the business activities of the assessee. Accordingly, we thus find that the decision of the Hon’ble Gujarat High Court in CIT vs. Raghuvir Synthetics Ltd. 354 ITR 222 (Guj.) as relied upon is of no assistance to the assessee. 4. Thus, we do not see any infirmity in the order of the CIT(A). Accordingly, we decline to interfere. 5. In the result, appeal of the assessee in ITA No. 1041/Ahd/2017 concerning assessment year 2012-13 is dismissed. ITA No. 2069/Ahd/2017-AY 2013-14 (Assessee’s appeal) 6. The issue i…

The DCIT, Circle-3(1)(1), Ahmedabad vs. M/S. Priyal International Pvt. Ltd., Ahmedabad

In the result, the appeal of the revenue is dismissed

ITA 2683/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad14 Mar 2019AY 2013-14

For Appellant: Shri Mehul K. Patel, A.RFor Respondent: Shri Mudit Nagpal, Sr. D.R

Section 143(2)Section 14ASection 36(1)(iii)

…served by the AO himself. The appellant also relied on the following judgment by the Hon’ble Gujarat High Court namely (a) CIT vs GSFC Ltd. 358 ITR 0323(Guj) (b) CIT vs Gujarat Narmada Valley Fertilizers Col. Ltd. 221 Taxman 479 (c) CIT vs Raghuvir Synthetics 354 ITR 222. (d) CIT vs Reliance Utilities & Power Ltd. 313 ITR 340 9.1 The fundamental principle highlighted in these judgments, as pointed out by appellant, is that if there are funds available, both interest free and overdraft or loans, then the presumption would arise that the investments would be out of interest free funds available with the appellant,…

Asstt.Commissioner of Income Tax, Circle-3(1)(1), Ahmedabad vs. M/S. Priyal International P.Ltd., Ahmedabad

In the result Ground No. 4 of the Revenues appeal is dismissed

ITA 3115/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad15 Feb 2019AY 2011-12

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasadआयकर अपील सं./I.T.A. No. 3115/Ahd/2015 ("नधा"रण वष" / Assessment Year: 2011-12)

For Appellant: Lalit P. Jain, Sr. DR

Section 10ASection 14A

…served by the AO himself. The appellant also relied on the following judgment by the Hon’ble Gujarat High Court namely (a) CIT vs GSFC Ltd. 358 ITR 0323(Guj) (b) CIT vs Gujarat Narmada Valley Fertilizers Col. Ltd. 221 Taxman 479 (c) CIT vs Raghuvir Synthetics 354 ITR 222. (d) CIT vs Reliance Utilities & Power Ltd. 313 ITR 340 ITA No.3115/Ahd/2015 [Add. CIT vs. Priyal International Pvt. Ltd.] A.Y. 2011-12 - 12 - 9.1 The fundamental principle highlighted in these judgments, as pointed out by appellant, is that if there are funds available, both interest free and overdraft or loans, then the presumption would arise…

Raymon Patel Gelatine Pvt.Ltd., Baroda vs. The ACIT., Circle-4, Baroda

In the result, the appeal is partly allowed in the terms indicated above

ITA 806/AHD/2012[2004-05]Status: DisposedITAT Ahmedabad29 Jan 2019AY 2004-05

Section 143(3)Section 36(1)(iii)

…clearly re-establish that, that the investments in CWIP are far in excess of the interest free funds available to the assessee. In such circumstances, in the light of Hon’ble jurisdictional High Court’s judgment in the case of CIT Vs Raghuvir Synthetics Ltd (354 ITR 222) and Hon’ble Bombay High Court’s judgment in the case of CIT Vs Reliance Utilities & Power Ltd (313 ITR 340), the presumption has to be that the investments are made out of interest free funds. That is the approach consistently taken by various coordinate ITA Nos 278/Ahd/2009 and 806/Ahd/2012 Assessment year: 2004-05 Page 4 of 7 benches of this…

M/S. Liberty Marketers, Ernakulam vs. The ACIT, Cochin

In the result, the appeals of the assessee are dismissed

ITA 86/COCH/2016[2011-12]Status: DisposedITAT Cochin30 Mar 2018AY 2011-12

Bench: S/Shri Chandra Poojari , Am & George George K., Jm

Section 36(1)(iii)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI , AM & GEORGE GEORGE K., JM I.T.A. Nos.409/Coch/2014 and 85 & 86/Coch/2016 Assessment Years : 2009-10, 2010-11 & 2011-12 M/s. Liberty Marketers, Vs. The Assistant Commissioner of 44/356,Liberty Towers, Income-tax, Circle-2(2), Kochi. Manapatti Parambu Road, Kaloor, Ernakulam, Kochi-682 017. [PAN:AABFL 6579Q] (Assessee-Appellant) (Revenue-Respondent) Assessee by Shri Anil D. Nair, Adv. Revenue by Shri A. Dhanaraj, Sr. DR Date of hearing 02/04/2018 Date of pronouncement 03/04/2018 O R D E R Per Bench: These…

M/S. Liberty Marketers, Ernakulam vs. The ACIT, Cochin

In the result, the appeals of the assessee are dismissed

ITA 85/COCH/2016[2010-11]Status: DisposedITAT Cochin30 Mar 2018AY 2010-11

Bench: S/Shri Chandra Poojari , Am & George George K., Jm

Section 36(1)(iii)

M/S.Liberty Marketers, Ernakulam vs. The ACIT, Cochin

In the result, the appeals of the assessee are dismissed

ITA 409/COCH/2014[2009-10]Status: DisposedITAT Cochin30 Mar 2018AY 2009-10

Bench: S/Shri Chandra Poojari , Am & George George K., Jm

Section 36(1)(iii)

DCIT, Cir-2(2), Kolkata vs. M/S Prs Metaliks Ltd., Kolkata

In the result, the appeal of the Revenue ITA No

ITA 450/KOL/2016[2012-2013]Status: DisposedITAT Kolkata10 Jan 2018AY 2012-2013

Bench: : Shri S.S.Viswanethra Ravi & Shri Dr. Arjun Lal Sainia.Y 2012-13

For Appellant: Shri David Z.Chawngthu, Addl.CIT, ld. Sr.DRFor Respondent: Shri Dilip Loyalka, FCA, ld.AR

Section 143(2)Section 143(3)Section 32Section 32(1)Section 43B

…rest free loan given, no disallowance of interest can be made. For this proposition, the assessee relied on following case laws:- CIT Vs. Kajal Export (2014) 362 ITR 328 (Guj.) CIT Vs. Vijaywada Bottling Co. Ltd 356 ITR 625(AP) CIT Vs. Raghuvir Synthetics Ltd 354 ITR 222(Guj) CIT Vs. Reliance Utilities & Power Ltd 313 ITR 340(Bom) CIT Vs. Prem Heavy Engnrs Works P.Ltd 285 ITR 554(All) D & H Secheron Electrodies P.Ltd 142 ITR 528(MP) CIT Vs. Gopikrishna Murlidhar 47 ITR 469 (AP) Regal Theatre Vs. CIT 225 ITR 205(Del) 247 ITR 510(Gau) 16. After considering the above the CIT-A held that the ratio of the cited case…