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).

47

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 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.

Deepak Cables (India) Ltd., Bangalore vs. Addl..C.I.T., Bangalore

In the result, the assessee’s appeal is partly allowed and the

ITA 493/BANG/2014[2010-11]Status: DisposedITAT Bangalore05 May 2017AY 2010-11

Bench: Shri. Vijay Pal Rao

For Appellant: Shri. Suresh Muthukrishnan, CAFor Respondent: Shri. Sanjay Kumar, CIT-III
Section 143(3)Section 14A

…ITA.493& 669/Bang/2014 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'C', BENGALURU BEFORE SHRI. VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI. S. JAYARAMAN, ACCOUNTANT MEMBER I.T.A No.493/Bang/2014 (Assessment Year : 2010-11) Deepak Cable (India) Ltd, No.7, N8, Iyengar Street, Seshadripuram, Bengaluru 560 020 .. Appellant PAN : AAACD6466C v. Additional Commissioner of Income Tax, Range-11, Bengaluru .. Respondent I.T.A No.669/Bang/2014 (Assessment Year : 2010-11) Additional Commissioner of Income Tax, Range-11, Bengaluru .. Appellant v Deepak Cable (India) Ltd, No.7, N8, Iyengar Street, Seshadr…

Gopalan Enterprises (P) Ltd vs. Addl C.I.T

In the result, the appeal of the revenue is partly allowed for statistical

ITA 158/BANG/2014[2010-11]Status: DisposedITAT Bangalore05 May 2017AY 2010-11

Bench: Shri A. K. Garodia & Shri Vijay Pal Rao

For Appellant: Shri K. R. Pradeep, C. AFor Respondent: Smt. Neera Malhotra, CIT DR
Section 14ASection 23

…judgment of rendered in the case of CIT vs. Raghuvir Synthetics Ltd. in Appeal No. 829 of 2007. Although this is stated to be a judgment of Hon’ble Delhi High Court but we find that this is also a Judgment of Hon’ble Gujarat High Court and it is reported in 354 ITR 222 and the assessment year in that case was 2001 – 02. Therefore, for the same reasons, the reliance of the tribunal on this judgment is also without noticing this vital difference and therefore, this tribunal order does not lay down a binding precedence for this reason also. The third judgment followed by the tribunal in this case is the judgment…

The Commissioner of Income Tax vs. M/S Brindavan Beverages Pvt Ltd

In the result ground 4 of the revenue is dismissed

ITA/67/2015HC Karnataka26 Oct 2016

Bench: ARAVIND KUMAR,JAYANT PATEL

Section 14ASection 14aSection 260

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF OCTOBER 2016 PRESENT THE HON’BLE MR.JUSTICE JAYANT PATEL AND THE HON’BLE MR.JUSTICE ARAVIND KUMAR ITA NO.67 OF 2015 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, C.R. BUILDING, QUEENS ROAD, BANGALORE. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1(2), C.R. BUILDING, QUEENS ROAD, BANGALORE. … APPELLANTS (BY SRI K.V.ARAVIND, ADV.) AND: M/S BRINDAVAN BEVERAGES PVT LTD NO.10, 11TH MAIN, VASANTHNAGAR, 2 BANGALORE-560 052. PAN: AAACB…

ITO 32(1)(5), Mumbai vs. Empire Developers, Mumbai

Appeal is allowed

ITA 2321/MUM/2015[2008-09]Status: DisposedITAT Mumbai01 Sept 2016AY 2008-09

Bench: Shri Joginder Singh, Assessment Year: 2008-09

Section 36(1)(iii)

…iverted interest bearing funds for purpose of investment in shares and loans to sister concern, since sufficient interest free funds were available with assessee, disallowance of interest expenditure was not permissible. CIT v. Raghuvir Synthetics Ltd. (2013) 354 ITR 222 (Guj)(HC) The transfer of the borrowed funds to a sister concern from the point of view of commercial 6 M/s Empire Developers expediency and not from the point of view whether the amount was advanced for earning profits. And considering the material on record and substantial interest-free funds and business expediency, no disallowance of inter…

M/S Kbd Sugars & Distilleries Ltd, Bangalore vs. Asst. Commissioner of Income-Tax, Bangalore

In the result, the appeal of assessee is partly allowed and the revenue’s appeal is dismissed

ITA 1062/BANG/2014[2011-12]Status: DisposedITAT Bangalore29 Apr 2016AY 2011-12

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri V. Chandrashekar, AdvocateFor Respondent: Shri Sanjay Kumar,CIT-III (D.R)
Section 14A

…esent assessee as the issue under consideration is identical to that of the matter dealt by the Hon’ble Court. (ii) The Hon’ble High Court of Gujarat had an occasion to deal with a similar issue in the case of CIT V. Raghuvir Synthetics Ltd reported in (2013) 354 ITR 222 (Guj). The issue before the Hon’ble Court, in brief, was that the AO noticed that the assessee had incurred heavy interest expenses of Rs.59.83 lakhs and, on the other hand, it had given interest free loans to the parties to the extent of Rs.19.45 crores. On examining the details furnished, the AO disallowed the interest to the extent of Rs.18.66…

M/S Kbd Sugars & Distilleries Ltd vs. ACIT

In the result, the appeals of the assessee for the Assessment Years 2008-

ITA 933/BANG/2013[2008-09]Status: DisposedITAT Bangalore05 Feb 2016AY 2008-09
For Appellant: Shri V. Chandrashekar, AdvocateFor Respondent: Mrs. Neera Malhotra,CIT (D.R)
Section 143(3)Section 14ASection 36(1)(iii)

…esent assessee as the issue under consideration is identical to that of the matter dealt by the Hon’ble Court. (ii) The Hon’ble High Court of Gujarat had an occasion to deal with a similar issue in the case of CIT V. Raghuvir Synthetics Ltd reported in (2013) 354 ITR 222 (Guj). The issue before the Hon’ble Court, in brief, was that the AO noticed that the assessee had incurred heavy interest expenses of Rs.59.83 lakhs and, on the other hand, it had given interest free loans to the parties to the extent of Rs.19.45 crores. On examining the details furnished, the AO disallowed the interest to the extent of Rs.18.66…

The Commissioner of Income Tax-III vs. M/S Sarada Projects Pvt. Ltd

ITTA/621/2006HC Telangana02 Feb 2012