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 466Supreme Court of India2019#137 most cited

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.

501

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Reliance Industries Ltd. · 410 ITR 466 · section 36(1)(iii) · section 14A · interest free advances · disallowance of interest expenditure · mixed funds presumption · interest free funds · commercial expediency · disallowance for exempt income

Also reported as

102 Taxmann.com 52307 CTR 121261 Taxmann 165175 DTR 1

Sections most often in play

Section 36(1)(iii)Section 14A Section 143(3)Section 1961 Section 40(a)(ia)Section 1962 Section 143(2)Section 8D

Issues it is cited on

interest free advances section 36(1)(iii)disallowance of interest expenditure weighted deduction section 35(2ab)commercial expediency section 14a(2)disallowance under section 14a disallowance u/s 14a business expediency put to use section 36(1)

Judgments citing CIT v. Reliance Industries Ltd.

The South Indian Bank Ltd vs. The Commissioner of Income Tax

C.A. No.-009606-009606 - 2011Supreme Court09 Sept 2021

Bench: HON'BLE MR. JUSTICE HRISHIKESH ROY

Section 14Section 14A

…, there is a presumption that investment which has been made in tax free securities, has come out of interest free funds available with assessee. In such situation Section 14A of the Act would not be applicable. Similar views have been expressed 3 (2019) 410 ITR 466 SC/ (2019) 20 SCC 478. 4 (2016) 383 ITR 529 (Bom) / 2016 SCC Online Bom 1109 Page 11 of 22 by other High Courts in CIT Vs. Suzlon Energy Ltd.5, CIT Vs. Microlabs Ltd.6 and CIT Vs. Max India Ltd.7 Mr. S Ganesh the learned Senior Counsel while citing these cases from the High Courts have further pointed out that those judgments have attained f…

Pr Commissioner of Income Tax vs. M/S United Spirits Ltd

ITA/548/2015HC Karnataka02 Sept 2021

Bench: S.SUJATHA,RAVI V HOSMANI

Section 143Section 260Section 260A

…IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF SEPTEMBER, 2021 PRESENT THE HON’BLE MRS.JUSTICE S.SUJATHA AND THE HON’BLE MR. JUSTICE RAVI V. HOSMANI I.T.A.No.548/2015 c/w I.T.A.No.37/2010 IN I.T.A.No.548/2015: BETWEEN : 1 . PR. COMMISSIONER OF INCOME TAX C.R.BUILDINGS, QUEENS ROAD BANGALORE - 560001 2 . DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(3) BANGALORE ...APPELLANTS (BY SRI E.I.SANMATHI, ADV.) AND : M/s UNITED SPIRITS LTD., 6TH FLOOR, U.B.TOWERS UB CITY, 24, VITTAL MALLYA ROAD BANGALORE - 560 001 PAN…

DCIT Circle- 3 (3)(1), Mumbai vs. M/S Reliance Industrial Investment & Holdings Ltd, Mumbai

The appeal stand dismissed

ITA 37/MUM/2020[2013-14]Status: DisposedITAT Mumbai01 Sept 2021AY 2013-14

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील िं./ I.T.A. No. 37/Mum/2020 (धििाारण वर्ा / Assessment Year: 2013-14) Dcit Circle – 3(3)(1), M/S Reliance Industrial R. No. 609, 6Th Floor बिाम/ Investment & Holdings Ltd. 9Th Floor, Maker Chambers Iv, 222 Aaykar Bhavan, M. K. Road Vs. Mumbai-400 020 Nariman Point, Mumbai-400 021 स्थायीलेखा िं./ जीआइआर िं./ Pan/Gir No. Aaacr-5053-R (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Revenue By : Shri Vinay Sinha, Ld. Cit-Dr Assessee By : Shri Nimesh Bora, Ld. Ar ुनवाई की तारीख/ : 10/08/2021 Date Of Hearing घोषणा की तारीख / : 01/09/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Revenue For Assessment Year (Ay) 2013-14 Arises Out Of The Order Of Learned Commissioner Of Income-Tax (Appeals)-8, Mumbai [Cit(A)], Dated 24/10/2019 In The Matter Of Assessment Framed By Ld. Ao U/S 143(3) Of The Act On 29/12/2016. The Ground Raised By The Revenue Read As Under: - 1. Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld.Cit(A) Was Justified In Holding That Amount Has Been Given On Commercial Expediency Without Appreciating That The Assessee Has Not Given Any Credible

For Appellant: Shri Nimesh Bora, Ld. ARFor Respondent: Shri Vinay Sinha, Ld. CIT-DR

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

…hich were also used to make advances and therefore, disallowance u/s 36(1)(iii) was to be computed by taking average rate of borrowings. For the said poposition, reliance was placed on the decision of Hon’ble Supreme Court in CIT V/s Reliance Industries Ltd. (410 ITR 466) and CIT V/s Reliance Utilities & Power Ltd. (313 ITR 340) wherein it was held that in case interest free funds were available the assessee, it could be presumed that the investments were made from interest free funds. 7.3 The Ld. CIT(A), after going through assessee’s submissions, concurred that the loans were given out of commercial expediency…

Suresh Bhagwandas Ahuja, Sangli vs. Assistant Commissioner of Income-Tax, Circle - 2, Sangli

In the result, the appeal filed by the assessee stands allowed

ITA 364/PUN/2018[2013-14]Status: DisposedITAT Pune17 Aug 2021AY 2013-14

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita No.364/Pun/2018 िनधा"रण वष" / Assessment Year : 2013-14 Suresh Bhagwandas Ahuja, M/S. Vijay Textiles, Gurmukh Niwas, Dr. Gorde Path, Near Dr. Gaikwad Hospital, Miraj, Dist. – Sangli. .......अपीलाथ" / Appellant Pan : Aazpa0325R बनाम / V/S. Acit, Circle-2, ……""यथ" / Respondent Sangli. Assessee By : Shri M. K. Kulkarni. Revenue By : Shri S. P. Walimbe सुनवाई क" तारीख / Date Of Hearing : 17.08.2021 घोषणा क" तारीख / Date Of Pronouncement : 17.08.2021 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals)- 1, Kolhapur (‘Cit(A)’ For Short) Dated 04.12.2017 For The Assessment Year 2013-14. 2. Briefly, The Facts Of The Case Are As Under :- The Appellant Is An Individual Running A Wholesale Business In Sarees In The Name Of His Proprietary Concern, M/S. Vijay Textiles. The Assessee Filed E-Return For The Assessment Year 2013-14 On 19.09.2013 Declaring Total Income Of Rs.69,58,120/-. Against The Said Return Of Income, The Assessment Was Completed By The Assistant Commissioner Of Income Tax, Circle-2, Sangli (‘The Assessing Officer’) Vide Order Dated 22.03.2016 Passed U/S 143(3) Of The 2 Income Tax Act, 1961 (‘The Act’) At A Total Income Of Rs.77,78,610/- After Making The Following Additions :- (I) Addition U/S 37(1) Of The I.T. Act Rs.5,39,080/- (Ii) Addition U/S 50C Of The I.T. Act Rs.45,000/- (Iii) Addition On Account Of Agril. Expenses Rs.79,335/- (Iv) Addition On Account Of Depreciation Rs.66,583/- (V) Disallowance U/S 37(1) Of The I.T. Act 90,492/-

For Appellant: Shri M. K. KulkarniFor Respondent: Shri S. P. Walimbe

Section 143(3)Section 37(1)Section 50C

…आयकर अपीलीय अिधकरण “ए” "यायपीठ पुणे म" । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE (Through Virtual Court) BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM आयकर अपील सं. / ITA No.364/PUN/2018 िनधा"रण वष" / Assessment Year : 2013-14 Suresh Bhagwandas Ahuja, M/s. Vijay Textiles, Gurmukh Niwas, Dr. Gorde Path, Near Dr. Gaikwad Hospital, Miraj, Dist. – Sangli. .......अपीलाथ" / Appellant PAN : AAZPA0325R बनाम / V/s. ACIT, Circle-2, ……""यथ" / Respondent Sangli. Assessee by : Shri M. K. Kulkarni. Revenue by : Shri S. P. Walimbe सुनवाई क" तारीख / Date of Hearing : 17.08.2021 घोषणा क" तारीख…

M/S. Rns Infrastructure Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Central Circle- 2(3), Bengaluru

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

ITA 470/BANG/2020[2015-16]Status: DisposedITAT Bangalore16 Aug 2021AY 2015-16

Bench: Shri Chandra Poojari, Am & Smt.Beena Pillai, Jm

For Appellant: Sri.Shreesh Kumar Hegde, CAFor Respondent: Sri.Kannan Narayanan, JCIT-DR

Section 14ASection 194ASection 234Section 40

…, 6 ITA No.470/Bang/2020. M/s.RNS Infrastructure Limited. namely, Naveen Hotels and such claim of interest cannot be disallowed. The learned AR also relied on the judgment of the Hon’ble Supreme Court in the case of CIT v. Reliance Industries Limited [(2019) 410 ITR 466 (SC)]. 15. The learned DR relied on the orders of the lower authorities. 16. We have heard both parties and perused the material on record. In our considered view, the assessee has to prove that the it is having own funds to divert to its sister concern. The judgment of the Hon’ble Apex Court relied on by the assessee in the case of CIT v. Reli…

Manali Petrochemicals Ltd., Chennai vs. DCIT Ltu-1, Chennai

In the result, appeal filed by the assessee is treated as

ITA 2824/CHNY/2019[2015-16]Status: DisposedITAT Chennai28 Jul 2021AY 2015-16

Bench: Shri V.Durga Rao & Shri G.Manjunathaआयकर अपील सं./I.T.A.No.2824/Chny/2019 ("नधा"रणवष" / Assessment Year: 2015-16) M/S. Manali Petro Chemicals Ltd. Vs The Deputy Commissioner Of Spic House, 88 Mount Road, Income Tax, Guindy, Chennai -600 032. Large Tax Payer Unit-1 Chennai. Pan: Aaacm 3404D (अपीलाथ"/Appellant) (""यथ"/Respondent)

Section 115JSection 143(3)Section 14A

…rrowed funds, then presumption is drawn in favour of the assessee that investments made in shares and securities is out of own funds. This principle is supported by the decision of the Hon'ble Supreme Court in the case of CIT Vs. Reliance Industries Ltd., 307 CTR 121 (SC) . The Hon’ble Bombay High (313 ITR 340) has taken a similar view. In this case, it was claim of assessee that it has sufficient own funds, which is in excess of investments made in shares and securities, which yield exempt income. If the assessee is able to establish availability of sufficient own funds in excess of investments, then ques…

Kumar Agro Products Pvt.Ltd, Pune vs. Income-Tax Officer, Ward - 14(4), Pune

In the result, the appeal filed by the assessee is allowed

ITA 556/PUN/2018[2014-15]Status: DisposedITAT Pune12 Jul 2021AY 2014-15

Bench: Shri Inturi Rama Rao, Am & Shri S. S. Viswanethra Ravi, Jm िनधा"रण वष" / Assessment Year : िनधा"रण वष" िनधा"रण वष" िनधा"रण वष"

For Appellant: Shri Rajan Vora / Shri Rajendra AgiwalFor Respondent: Shri Mahadevan A.M. Krishnan

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

…so relied on the following decisions : 1) ACIT Vs. M/s. Indo Industrial Engineers – ITAT, Delhi. 2) JCIT Vs. M/s. Mbharat Fritz Werner Ltd, ITAT, Bangalore. 3) PCIT Vs. Shapoorji Pallonji and Co., Ltd 423 ITR 220 (Bom) 4) CIT(LTU) Vs. Reliance Industries Ltd 410 ITR 466 (SC). 5) CIT Vs. HDFC Bank Ltd. 366 ITR 505 (Bom) 6) Munjal Sales Corporation Vs. CIT - 298 ITR 298 (SC). 6. The next limb of Ld.A.R.’s argument is that the disallowance, if any, should be restricted to the extent of only incremental advances made during the previous year relevant to the assessment year under consideration. In this connection,…

DCIT, CC- 8(1), Mumbai vs. Nirshilp Securities Pvt. Ltd., Mumbai

In the result, the appeal of the revenue in ITA No

ITA 6321/MUM/2019[2014-15]Status: DisposedITAT Mumbai21 Jun 2021AY 2014-15

Section 115JSection 143(3)Section 14A

…ssee. Hence by applying the ratio laid down by the Hon‟ble Jurisdictional High Court in the case of HDFC Bank Ltd reported in 366 ITR 505 and of the Hon‟ble Supreme Court in the case of M/s. Nirhsilp Commodities Pvt. Ltd., Reliance Industries Ltd reported in 410 ITR 466, we hold that no disallowance of interest need to be made under Rule 8D(2)(ii) of the Rules. 2.3. With regard to disallowance under Rule 8D(2)(iii) of the Rules, the ld AR argued that the disallowance already made by the assessee was much more than disallowance warranted under third limb of Rule 8D(2) of the Rules. We are inclined to agree with…

DCIT, C-5, Ludhiana vs. M/S Hero Cycles Ltd., Ludhiana

In the result, appeal of the Department is dismissed and the Cross

ITA 1493/CHANDI/2017[2011-12]Status: DisposedITAT Chandigarh15 Jun 2021AY 2011-12

For Appellant: Shri Subhash Aggarwal, AdvocateFor Respondent: Smt. C. Chandrakanta, CIT

Section 10(38)Section 143(1)Section 14ASection 36(1)(iii)

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “ए” , च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI , R.L. NEGI, JM आयकर अपील सं./ ITA NO. 1493/Chd/2017 "नधा"रण वष" / Assessment Year : 2011-12 Dy. CIT M/s Hero Cycles Ltd. बनाम Circle-5, Ludhiana G.T. Road, Hero Nagar Ludhiana "थायी लेखा सं./PAN NO: AAACH4073P अपीलाथ"/Appellant ""यथ"/Respondent CROSS OBJECTION NO. 4/CHD/2018 (आयकर अपील सं./ ITA NO. 1493/Chd/2017) "नधा"रण वष" / Assessment Year : 2011-12 M/s Hero Cycles Ltd. Dy. CIT बनाम G.T.…

Richa Holdings Limited, Faridabad vs. ITO Ward- 2(2), Faridabad

In the result, the appeal of the assessee is allowed

ITA 1541/DEL/2020[2016-17]Status: DisposedITAT Delhi08 Jun 2021AY 2016-17

Bench: Shri Kul Bharatassessment Year : 2016-17 M/S. Richa Holdings Ltd., Vs Ito, Plot No.29, Dlf Industrial Ward-2(2), Area, Phase-Ii, Faridabad. Faridabad. Pan-Aabcc7401M Appellant Respondent Appellant By Sh. I.P.Bansal, Adv. & Sh. Vivek Bansal, Adv. Respondent By Sh. Farhat Khan, Sr.Dr Date Of Hearing 01.04.2021 Date Of Pronouncement 08.06.2021

Section 143(3)Section 14ASection 36

…erest free funds available with the assessee were sufficient to cover the interest free advances made by the assessee and thus, the disallowance was not called for as per law laid down by Hon'ble Supreme Court in the case of CIT vs. Reliance Industries [2019] 410 ITR 466(SC) and other decisions relied upon before the Ld. CIT(A) which have been arbitrarily ignored by Ld. CIT(A) on the ground that they are not applicable to the facts of the present case. c. as the disallowance also could not be made by referring to section 14A of the Act, which is applicable only if any tax-free income has been earned by the asse…

Nahar Spinning Mills Ltd., Ludhiana vs. ACIT, C-7, Ludhiana

In the result, the appeal filed by the assessee for the assessment year 2014-

ITA 1160/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh06 May 2021AY 2014-15

Bench: Shri N.K. Saini & Shri R.L. Negiआयकर अपील सं./Ita Nos. 1160/Chd/2019 "नधा"रण वष" / Assessment Year : 2014-15

For Appellant: Shri Navdeep Sharma, Advocate

Section 10(34)Section 143(3)Section 14ASection 36(1)(iii)

…s available with it to make investment, the presumption will be that investment made by the assessee is out of own funds. The issue is also squarely covered by the recent decision of the Hon'ble Supreme Court in ‘CIT (LTU) Vs. Reliance Industries Ltd.’ [2019] 410 ITR 466 (SC). We, therefore, do not find any infirmity in the order of the Ld. CIT(A) on this issue. In view of the above, no disallowance of interest expenditure is attracted in this case. 6. So far as the administrative expenses are concerned, the assessee has given a scientific formula for calculating the disallowance out of administrative expenses.…

M/S Baul Msk Infrastructure Private Ltd, Mumbai vs. ACIT - 15(1)(2), Mumbai

Accordingly, the aforesaid issue is restored to the file of the A.O in terms of our aforesaid directions. The Ground of appeal No. 2 is allowed for statistical purpose

ITA 3244/MUM/2019[2012-13]Status: DisposedITAT Mumbai22 Apr 2021AY 2012-13

Bench: Shri Pramod Kumar () & Shri Ravish Sood () M/S Bul Msk Infrastructure Pvt. Acit -15(1)(2), Ltd., 1008, 10Th Floor –V, Vs. Room No. 403, 4Th Floor Time Square, Plot No. 3, Aayakar Bhavan, M.K. Road, Sector 14, Belapur Cbd, Mumbai 400 020 Navi Mumbai- 400614 Pan No. Aaccb9447M (Assessee) (Revenue) Assessee By : Shri Devendra Jain, A.R Revenue By : Shri Tharian Oommen, Sr. D.R Date Of Hearing : 23/03/2021 Date Of Pronouncement : 22/04/2021

For Appellant: Shri Devendra Jain, A.RFor Respondent: Shri Tharian Oommen, Sr. D.R

Section 143(1)Section 143(2)Section 143(3)Section 32Section 36(1)(iii)

…ITA No. 3244/Mum/2019 A.Y. 2012-13 1 M/s Bul MSK Infrastructure Pvt. Ltd. Vs. ACIT-15(1)(2) IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B” MUMBAI BEFORE SHRI PRAMOD KUMAR (VICE PRESIDENT) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) M/s Bul MSK Infrastructure Pvt. ACIT -15(1)(2), Ltd., 1008, 10th Floor –V, Vs. Room No. 403, 4th Floor Time Square, Plot No. 3, Aayakar Bhavan, M.K. Road, Sector 14, Belapur CBD, Mumbai 400 020 Navi Mumbai- 400614 PAN No. AACCB9447M (Assessee) (Revenue) Assessee by : Shri Devendra Jain, A.R Revenue by : Shri Tharian Oommen, Sr. D.R Date of Hearing : 23/03/2021 Date of pronounce…

Bspn Industries Private Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-1(2), Hyderabad

Appeal is allowed

ITA 2008/HYD/2018[2013-14]Status: DisposedITAT Hyderabad19 Apr 2021AY 2013-14

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri K.C. Devdas, ARFor Respondent: Sh. Rohit Muzumdar, CIT-D.R

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

…38,05,522/- as against the net interest free advances of Rs.6,31,05,522/- which leads us to a presumption that the necessary inference in such a factual backdrop is that all advances made that are interest free funds only. Case law CIT vs. Reliance Industries 410 ITR 466 (SC) ad CIT vs. Reliance Utilities & Power 313 ITR 340 (Bom.) hold that when interest free funds exceed the interest free advances, it cannot be held that interest bearing funds have been diverted for non-business purposes. We thus reverse the impugned disallowance on merits as well. The assessee succeeds in this sole substantive grievance. This…

Hero Motocrop Ltd., New Delhi vs. ACIT, Circle- 11(1), New Delhi

The appeal of the assessee is partly allowed

ITA 9187/DEL/2019[2015-16]Status: DisposedITAT Delhi13 Apr 2021AY 2015-16

Bench: Shri Sudhanshu Srivastava & Shri O.P. Kantassessment Year: 2015-16

Section 115JSection 143(3)Section 144CSection 145ASection 80ISection 92C

…resumed that only interest free funds have been utilized for making investments during the year. Reference, in this regard, was made to the following decisions: - East India Pharmaceutical Works Ltd. v. CIT: 224 ITR 627 (SC) - CIT v. Reliance Industries Ltd.: 410 ITR 466 (SC) - CIT v. UTI Bank Ltd.: 215 Taxman 8 - The Supreme Court dismissed the revenue’s SLP in Civil Appeal No. 468/2014 - Woolcombers of India Ltd. v. CIT: 134 ITR 219 (Cal.) - PCIT v. Basti Sugar Mills Co. Ltd.: ITA No. 205 of 2018 (Del HC) - PCIT v. Reebok India Company: [2018] 259 Taxman 100 (Delhi) - Indian Explosives Ltd. V. CIT: 147 ITR 392…

Rtc Restaurants (India) Ltd., New Delhi vs. DCIT Circle-15(1), New Delhi

The appeals of the assessee are allowed

ITA 4616/DEL/2019[2014-15]Status: DisposedITAT Delhi06 Apr 2021AY 2014-15

Bench: Sh. Anil Chaturvedi & Sh. Kuldip Singh(Through Video Conferencing)

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

…nvestments. In this case this presumption was established considering the finding of fact both by the Commissioner (Appeals) and the Tribunal. The interest was deductible. 6.1. The Hon’ble Supreme Court in the case of CIT vs Reliance Industries Limited (2019) 410 ITR 446 (SC) has held as under : “Business expenditure – Interest on borrowed capital – Finding of Tribunal that interest-free funds available with assessee sufficient to meet investment – Presumption that investments in subsidiaries were out of interest-free funds – Interest referable to funds invested in subsidiaries allowable – Income Tax Act, 1961, s…

Rtc Restaurants (India) Ltd., New Delhi vs. DCIT Circle-15(1), New Delhi

The appeals of the assessee are allowed

ITA 4615/DEL/2019[2013-14]Status: DisposedITAT Delhi06 Apr 2021AY 2013-14

Bench: Sh. Anil Chaturvedi & Sh. Kuldip Singh(Through Video Conferencing)

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

Modison Metals Ltd, Mumbai vs. DCIT, Circle - 3(2)(1), Mumbai

In the result, the appeal filed by the assessee is hereby allowed

ITA 3666/MUM/2019[2015-16]Status: DisposedITAT Mumbai01 Apr 2021AY 2015-16

For Appellant: Shri Satish ModyFor Respondent: Shri Bharat Andhale

Section 115JSection 143(2)Section 36(1)(iii)

…s clear from the facts given hereinabove. Therefore both the authorities below have grossly erred while deciding the issue. The case of assessee is squarely covered by the decision of Hon’ble Supreme Court in the case of CIT vs Reliance Industries Ltd. (2019) 410 ITR 466 (SC) wherein the Hon’ble Supreme Court has confirmed the order of Hon'ble Bombay High Court upholding the order of Tribunal wherein it has been held that where interest-free funds available with assessee were sufficient to meet the investments, it 3 A.Y. 2015-16 could be presumed that the investment was made from interest-free funds available wit…

ACIT-Circle-2(1), Chandigarh vs. M/S Fastway Transmissions Pvt.Ltd., Chandigarh

In the result, appeals filed by the Revenue and Cross objections filed by

ITA 316/CHANDI/2020[2017-18]Status: DisposedITAT Chandigarh25 Mar 2021AY 2017-18

Bench: Shri N.K. Saini & Shri R.L Negiआयकर अपील सं./Ita Nos. 315 & 316/Chd/2020 िनधा"रण वष" / Assessment Years : 2016-17 & 2017-18 The Acit, M/S Fastway Transmissions Pvt. Ltd., बनाम Circle-2(1), Plot No.17, Industrial Area-1, Chandigarh Chandigarh

For Appellant: Shri Ashwani Kumar, CA &For Respondent: Smt. C.Chandrakanta, CIT

Section 143(3)Section 14A

…he latest decision of the 12 ITA No. 315 & 316-c-2020 for AY 2016-17 & 2017-18 & C.O. Nos 1 & 2-C-2021 AY 2016-17 & 2017-18 – M/s Fastway Transmissions Pvt. Ltd, Chandigarh Hon'ble Supreme Court in the case of ‘CIT (LTU) Vs. Reliance Industries Ltd.’ [2019] 410 ITR 466 (SC). Thus, as per the settled law no disallowance u/s 36(1)(iii) of the Act is warranted on this issue. This ground is accordingly allowed in favour of the assessee.” 14. During the year relevant to the assessment year under consideration, the assessee has shown capital work in progress amounting to Rs. 2,32,75,003 but had not capitalized the i…

ACIT, Circle-2(1), Chandigarh vs. M/S Fastway Transmissions Pvt.Ltd., Chandigarh

In the result, appeals filed by the Revenue and Cross objections filed by

ITA 315/CHANDI/2020[2016-17]Status: DisposedITAT Chandigarh25 Mar 2021AY 2016-17

For Appellant: Shri Ashwani Kumar, CA &For Respondent: Smt. C.Chandrakanta, CIT

Section 143(3)Section 14A

Kalyani Steels Ltd, Pune vs. Deputy Commissioner of Income-Tax, Circle - 14, Pune

In the result, the appeal is partly allowed

ITA 265/PUN/2018[2014-15]Status: DisposedITAT Pune15 Mar 2021AY 2014-15

Bench: Shri R.S. Syal & Shri S.S.Viswanethra Raviआयकर अपील सं. / Ita No.265/Pun/2018 िनधा"रण वष" / Assessment Year 2014-15 Kalyani Steels Ltd., Vs. Dcit, Circle-14, Mundhwa, Pune – 411 036 Pune Pan : Aaack7315D Appellant Respondent

Section 14A

…oan advanced to the sister concern, disallowance of part of interest out of total interest paid by the assessee to the bank was not justified. More recently, the 5 Kalyani Steels Limited Hon’ble Supreme Court in CIT(LTU) VS. Reliance Industries Ltd. (2019) 410 ITR 466 (SC) has reiterated the same view. 8. When we examine the amount of Investments at Rs.39.94 crore as against the availability of Share Capital and Reserves at Rs.397.86 crore, it becomes evident that the amount of such Investments is much less than the amount of shareholders fund. We, therefore, order to delete the disallowance of interest am…