What is CIT v. Reliance Industries Ltd. authority for?

When mixed funds are available, interest-free advances are presumed to be made from the assessee's own interest-free funds, preventing disallowance of interest expenditure under section 36(1)(iii). This principle also applies to section 14A disallowance, where interest expenditure is not disallowed if surplus funds are available and no direct nexus is established with borrowed funds for investments earning exempt income.

How many judgments cite CIT v. Reliance Industries Ltd.?

501 judgments on BharatTax cite CIT v. Reliance Industries Ltd. (410 ITR 466), spanning 2016 to 2026.

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

It is most often cited in judgments turning on Section 36(1)(iii), Section 14A, Section 143(3), Section 1961, Section 40(a)(ia), Section 1962.

CIT v. Reliance Industries Ltd. (410 ITR 466)

M/S. United Phosphorus Ltd., Mumbai vs. DCIT Cent. Cir. - 38, Mumbai

In the result, appeal of the revenue is partly allowed

ITA 4695/MUM/2005[1999-2000]Status: DisposedITAT Mumbai20 Sept 2023AY 1999-2000

Bench: Shri Amit Shukla & Shri Gagan Goyalm/S. United Phosphorus Limited, Mumbai (Now Known As Uniphos Enterprises Ltd.) Uniphos House, 11-C.D. Marg Opp. Madhu Park Khar (W), Mumbai – 400 052 Pan: Aaacu3440P ...... Appellant Vs. Acit Cc -2 Dy. Commissioner Of Income Tax Central Circle-38 Mumbai ..... Respondent Acit Cc -2 Dy. Commissioner Of Income Tax Central Circle-38 Mumbai ...... Appellant Vs. M/S. United Phosphorus Limited, Mumbai (Now Known As Uniphos Enterprises Ltd.) Uniphos House, 11-C.D. Marg Opp. Madhu Park Khar (W) Mumbai – 400 052 Pan: Aaacu3440P ...... Respondent (Now Known As Uniphos Enterprises Ltd.)

For Appellant: Ms. Vasanti B Patel / Shri KiritFor Respondent: Shri Rajneesh Yadav

Section 143(3)Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K”, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI GAGAN GOYAL, ACCOUNTANT MEMBER M/s. United Phosphorus Limited, Mumbai (Now known as Uniphos Enterprises Ltd.) Uniphos House, 11-C.D. Marg Opp. Madhu Park Khar (W), Mumbai – 400 052 PAN: AAACU3440P ...... Appellant Vs. ACIT CC -2 Dy. Commissioner of Income Tax Central Circle-38 Mumbai ..... Respondent ACIT CC -2 Dy. Commissioner of Income Tax Central Circle-38 Mumbai ...... Appellant Vs. M/s. United Phosphorus Limited, Mumbai (Now known as Uniphos Enterprises Ltd.) Uniphos House, 11-C.D. Marg Opp. Mad…

Aarti Sponge and Power Ltd., Raipur vs. Assistant Commissioner of Income Tax, -1(1), Raipur

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

ITA 70/RPR/2023[2013-14]Status: DisposedITAT Raipur20 Sept 2023AY 2013-14

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं./Ita No.70/Rpr/2023 िनधा"रण वष" /Assessment Year: 2013-14 V. Aarti Sponge & Power Ltd. Acit -1 (1) Aarti House, Ashoka Ratna Shankar Raipur Nagar, Raipur, Chhattisgarh – 492 001

For Respondent: Sr. D.R

Section 143(3)Section 14ASection 250

…and therefore, it has to be presumed that the investment came out of interest free funds. Therefore, the AO could not have made the disallowance. We place reliance on following decisions:- :: 9 ::  CIT (Large Taxpayer Unit) vs Reliance Industries Ltd. (2019) 410 ITR 466 (SC)  CIT vs Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom.) 1.6 No expenditure incurred by appellant The appellant did not incur any expenditure in relation to investments yielding exempt income. Therefore, the burden was on the AO to prove otherwise as held in the following cases: -  Godrej Consumer Products Ltd. vs Addl. CIT (2014)…

Sh. Mahendra Singh, Flat No.303, Ashapura Tower, Paota, Jodhpur vs. ACIT, Circle-3, Jodhpur

In the result, the appeal of the assessee is allowed

ITA 20/JODH/2023[2017-18]Status: DisposedITAT Jodhpur18 Sept 2023AY 2017-18

Bench: Dr. S. Seethalakshmi & Shri Rathod Kamlesh Jayantbhaishri Mahendra Singh Vs Theacit Flat No. 303, Ashapura Tower Circle-3 Paota, Jodhpur Jodhpur (Appellant) (Respondent) Pan No. Csdps 5573B

Section 2Section 36(1)(iii)Section 37(1)

…ance out of interest expenditure can be made as the presumption is that interest free advance is given out of interest free funds available with the assessee. For this purpose reliance is placed on the following cases:- CIT Vs. Reliance Industries Ltd. (2019) 175 DTR 1 (SC) Tribunal having found that the interest free funds available to the assessee were sufficient to meet its investment, it could be presumed that funds were given to subsidiaries out of interest free funds and therefore, interest referable to funds given to subsidiaries is allowable as deduction under sec. 36(1)(iii). CIT Vs. Ram Kishan Verma (20…

DCIT Cir 5(3)(2), Mumbai vs. The Great Eastern Shipping Co. Ltd, Mumbai

In the result, appeal of the assessee (ITA number 1597/M/2018) is allowed for statistical purposes

ITA 2077/MUM/2018[2014-15]Status: DisposedITAT Mumbai13 Sept 2023AY 2014-15

Bench: Shri Prashant Maharishi, Am & Shri Narender Kumar Choudhary , Jm & & The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 Nd Floor, Vs. Room No.525B, 5 Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of Income- The Great Eastern Shipping Co. Tax, Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 Nd Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

For Appellant: Shri Jeet Kamdar , Shri Falee HFor Respondent: Shri

Section 115Section 14Section 143Section 144C

…ome and such investments are out of the own funds pg. 12 and internal accruals generated by the Company itself. In this regard, reliance is placed on the following decisions: a) South Indian Bank Ltd. - 130 taxmann.com 178 (SC) b) Reliance Industries Ltd. - 410 ITR 466 (SC) c) Reliance Utilities and Power Ltd. - 313 ITR 340 (Bom.) d) HDFC Bank Ltd. - 366 ITR 505 (Bom.) This issue is covered in favour of the Appellant by the Hon‟ble Income Tax Appellate Tribunal, Mumbai, in the Appellant‟s own case for the Assessment Year 2008-09 (Page 8, Para 10.3 & 10.4). Disallowance under Rule 8D(2)(iii) of the Rules viii) A…

The Great Eastern Shipping Co. Ltd, Mumbai vs. Asst CIT Cir 5(3)(2), Mumbai

In the result, appeal of the assessee (ITA number 1597/M/2018) is allowed for statistical purposes

ITA 1597/MUM/2018[2014-15]Status: DisposedITAT Mumbai13 Sept 2023AY 2014-15

Bench: Shri Prashant Maharishi, Am & Shri Narfendrakumar Choudhary , Jm & & The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 N D Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of Income- The Great Eastern Shipping Co. Tax, Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 N D Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

For Appellant: Shri Jeet Kamdar , Shri Falee HFor Respondent: Shri

Section 115Section 14Section 143Section 144C

…ome and such investments are out of the own funds pg. 12 and internal accruals generated by the Company itself. In this regard, reliance is placed on the following decisions: a) South Indian Bank Ltd. - 130 taxmann.com 178 (SC) b) Reliance Industries Ltd. - 410 ITR 466 (SC) c) Reliance Utilities and Power Ltd. - 313 ITR 340 (Bom.) d) HDFC Bank Ltd. - 366 ITR 505 (Bom.) This issue is covered in favour of the Appellant by the Hon‟ble Income Tax Appellate Tribunal, Mumbai, in the Appellant‟s own case for the Assessment Year 2008-09 (Page 8, Para 10.3 & 10.4). Disallowance under Rule 8D(2)(iii) of the Rules viii) A…

The Great Eastern Shipping Co. Ltd, Mumbai vs. Asst CIT Cir 5(3)(2), Mumbai

In the result, appeal of the assessee (ITA number 1597/M/2018) is allowed for statistical purposes

ITA 374/MUM/2017[2012-13]Status: DisposedITAT Mumbai13 Sept 2023AY 2012-13

Bench: Shri Prashant Maharishi, Am & Shri Narfendrakumar Choudhary , Jm & & The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 N D Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of Income- The Great Eastern Shipping Co. Tax, Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 N D Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

For Appellant: Shri Jeet Kamdar , Shri Falee HFor Respondent: Shri

Section 115Section 14Section 143Section 144C

…ome and such investments are out of the own funds pg. 12 and internal accruals generated by the Company itself. In this regard, reliance is placed on the following decisions: a) South Indian Bank Ltd. - 130 taxmann.com 178 (SC) b) Reliance Industries Ltd. - 410 ITR 466 (SC) c) Reliance Utilities and Power Ltd. - 313 ITR 340 (Bom.) d) HDFC Bank Ltd. - 366 ITR 505 (Bom.) This issue is covered in favour of the Appellant by the Hon‟ble Income Tax Appellate Tribunal, Mumbai, in the Appellant‟s own case for the Assessment Year 2008-09 (Page 8, Para 10.3 & 10.4). Disallowance under Rule 8D(2)(iii) of the Rules viii) A…

The Great Eastern Shipping Co. Ltd, Mumbai vs. DCIT Cir 5(3)(2), Mumbai

In the result, appeal of the assessee (ITA number 1597/M/2018) is allowed for statistical purposes

ITA 1216/MUM/2015[2010-11]Status: DisposedITAT Mumbai13 Sept 2023AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Narfendrakumar Choudhary , Jm & & The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 N D Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of Income- The Great Eastern Shipping Co. Tax, Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 N D Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

For Appellant: Shri Jeet Kamdar , Shri Falee HFor Respondent: Shri

Section 115Section 14Section 143Section 144C

…ome and such investments are out of the own funds pg. 12 and internal accruals generated by the Company itself. In this regard, reliance is placed on the following decisions: a) South Indian Bank Ltd. - 130 taxmann.com 178 (SC) b) Reliance Industries Ltd. - 410 ITR 466 (SC) c) Reliance Utilities and Power Ltd. - 313 ITR 340 (Bom.) d) HDFC Bank Ltd. - 366 ITR 505 (Bom.) This issue is covered in favour of the Appellant by the Hon‟ble Income Tax Appellate Tribunal, Mumbai, in the Appellant‟s own case for the Assessment Year 2008-09 (Page 8, Para 10.3 & 10.4). Disallowance under Rule 8D(2)(iii) of the Rules viii) A…

Apm Industries Ltd, Bhiwadi, Alwar vs. Deputy Commissioner of Income Tax, Central Circle - 1, Alwar

In the result, appeal of the assessee is allowed

ITA 203/JPR/2023[2018-19]Status: DisposedITAT Jaipur12 Sept 2023AY 2018-19

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. No. 203/JP/2023 fu/kZkj.k o"kZ@Assessment Years : 2018-19 APM Industries Ltd. SP-147, Industrial Area Bhiwadi, Alwar cuke Vs. Deputy Commissioner of Income Tax Central Circle-01, Alwar LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AACCA 5114 G vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Sh. S. L. Poddar jktLo dh vksj ls@ Revenue by : Smt. Monisha Choudhary (JCIT) a l

For Appellant: Sh. S. L. PoddarFor Respondent: Smt. Monisha Choudhary (JCIT) a

Section 142(1)Section 143(2)Section 143(3)Section 194ASection 263Section 40Section 40A(7)

…above and after considering the decision in the case of South India Bank Ltd v/s Commissioner of Income Tax [2021] 438 ITR 1 (SC) and Hon’ble Supreme Court in the case of Commissioner of Income Tax (Large Tax Payer Unit) Vs. Reliance Industries Ltd, (2019) 410 ITR 466 SC where a Division Bench expressly held that where there is finding of fact that interest free funds available to assessee were sufficient to meet its investment it will be presumed that investments were made from such interest free funds. 7.6 The ld. PCIT based on the figure disclosed in the ITR and with that of the figure mentioned in the st…

The ACIT Central, Bhopal vs. M/S. Bansal Construction Workswork, Bhopal

Appeal is dismissed

ITA 182/IND/2022[2010-11]Status: DisposedITAT Indore11 Sept 2023AY 2010-11

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year: 2010-11 Acit/Dcit, M/S.Bansal Construction Central-1, Works, बनाम/ Bhopal E-5, Tawa Complex, 3Rd Floor, Bittan Market, Vs. Bhopal (Revenue / Appellant) (Assessee / Respondent) Pan: Aaafb8527B

Section 143(3)Section 147Section 148Section 153A

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER Assessment Year: 2010-11 ACIT/DCIT, M/s.Bansal Construction Central-1, Works, बनाम/ Bhopal E-5, Tawa Complex, 3rd Floor, Bittan Market, Vs. Bhopal (Revenue / Appellant) (Assessee / Respondent) PAN: AAAFB8527B C.O.NO.02/Ind/2023 (Arising out of I.T.A.No. 182/Ind/2022) Assessment Year: 2010-11 M/s. Bansal Construction ACIT/DCIT, Works, Central-1, बनाम/ E-5, Tawa Complex, Bhopal 3rd Floor, Bittan Market, Vs. Bhopal (Assessee / Cross-Obj…

Sundaram Fasteners Limited, Chennai vs. DCIT, Chennai

In the result, the appeal filed by the assessee in IT(TP)A No

ITA 796/CHNY/2017[2012-13]Status: DisposedITAT Chennai31 Aug 2023AY 2012-13

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwal

For Appellant: Shri R. Vijayaraghavan, Advocate &For Respondent: Smt. Jothi Lakshmi Nayak, CIT

Section 10(34)Section 143(3)Section 147Section 14A

…अपीलीय अिधकरण, ‘डी’ "यायपीठ,चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ी महावीर "सह, उपा"य" एवं "ी मनोज कुमार अ"वाल, लेखा सद"य के सम" BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ IT(TP) No.33/CHNY/2018 & ITA No.: 796/CHNY/2017 िनधा"रण वष" /Assessment Years: 2009-10 & 2012-13 Sundaram Fasteners Limited, The DCIT, 98-A, 7th Floor, v. Corporate Circle – 6(2), Dr. Radhakrishnan Salai, Chennai. Mylapore, Chennai – 600 004. PAN: AAACS 8779D (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Shri R. Vijayaraghavan, Advo…

M/S. Manipal Education and Medical Group India Pvt. Ltd., Bangalore vs. Deputy Commissioner of Income-Tax, Circle-4(1)(2), Bangalore

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

ITA 105/BANG/2023[2015-16]Status: DisposedITAT Bangalore29 Aug 2023AY 2015-16

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year : 2015-16

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. Satyasai Rath, CIT(DR), Bengaluru

Section 10(34)Section 144ASection 14ASection 36(1)Section 36(1)(iii)Section 92

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K., VICE PRESIDENT AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Assessment year : 2015-16 M/s. Manipal Education and Vs. The Deputy Commissioner Medical Group India Pvt. Ltd., of Income Tax, 24/1, 15th Floor, JW Marriot, Circle 4(1)(2), Bangalore – 560 001. Bangalore. PAN : AADCM 8103A APPELLANT RESPONDENT Appellant by : Shri S.K. Tulsiyan, Advocate Ms. Bhoomija Verma, Advocate Respondent by : Dr. Satyasai Rath, CIT(DR), Bengaluru. Date of hearing : 16.08.2023 Date of Pronouncement : 29.08.2023 O R D E R Per Laxmi Prasad Sah…

Career Point Limited, Kota, Rajasthan vs. Principal Commissioner of Income Tax, Udaipur, Rajasthan

In the result, the appeal of the assessee is allowed

ITA 242/JPR/2023[2018-19]Status: DisposedITAT Jaipur22 Aug 2023AY 2018-19

Bench: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Vijay Goyal, CA &For Respondent: Shri Ajey Malik (CIT)

Section 143(2)Section 143(3)Section 14ASection 263

…o assessee were sufficient to meet its investment it will be presumed that investments were made from such interest free funds….”” (ii) Hon’ble Supreme Court in the case of Commissioner of Income Tax (Large Tax Payer Unit) Vs. Reliance Industries Ltd, (2019) 410 ITR 466 SC where a Division Bench of this Court expressly held that where there is finding of fact that interest free funds available to assessee were sufficient to meet its investment it will be presumed that investments were made from such interest free funds. (iii) Hon’ble ITAT Jaipur in the case of DCIT Circle-2, Jaipur vs. M/s. AU Financiers India…