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 366,470 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 14ASection 143(3)Section 1961Section 40(a)(ia)Section 1962Section 143(2)Section 8D

Issues it is cited on

interest free advancessection 36(1)(iii)disallowance of interest expenditureweighted deductionsection 35(2ab)commercial expediencysection 14a(2)disallowance under section 14adisallowance u/s 14abusiness expediencyput to usesection 36(1)

Judgments citing CIT v. Reliance Industries Ltd.

Pr. Commissioner of Income Tax vs. M/S Amalgamated Bean Coffee Trading Co Ltd

In the result, the orders dated 21

ITA/388/2018HC Karnataka12 Mar 2021

Bench: ALOK ARADHE,ASHOK S.KINAGI

Section 260Section 260A

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF MARCH 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE ASHOK S. KINAGI I.T.A. NO.315 OF 2018 C/W I.T.A. NO.388 OF 2018 I.T.A. NO.313 OF 2018 I.T.A. NO.315 OF 2018 BETWEEN: COFFEEDAY GLOBAL LTD. (FORMERLY KNOWN AS AMALGAMATED BEAN COFFEE TRADING CO LTD) NO.23/2, VITTAL MALLYA ROAD BENGALURU - 560001 REP. HEREIN BY ITS COMPANY SECRETARY MR. SADANAND POOJARY. ... APPELLANT (BY SRI. SURYANARAYANA T, ADV.,) AND: 1. ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE-11 BANGALORE, BMTC BUILDING…

Coffeeday Global Ltd vs. Additional Commissioner of Income Tax

In the result, the orders dated 21

ITA/315/2018HC Karnataka12 Mar 2021

Bench: ALOK ARADHE,ASHOK S.KINAGI

Section 260Section 260A

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF MARCH 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE ASHOK S. KINAGI I.T.A. NO.315 OF 2018 C/W I.T.A. NO.388 OF 2018 I.T.A. NO.313 OF 2018 I.T.A. NO.315 OF 2018 BETWEEN: COFFEEDAY GLOBAL LTD. (FORMERLY KNOWN AS AMALGAMATED BEAN COFFEE TRADING CO LTD) NO.23/2, VITTAL MALLYA ROAD BENGALURU - 560001 REP. HEREIN BY ITS COMPANY SECRETARY MR. SADANAND POOJARY. ... APPELLANT (BY SRI. SURYANARAYANA T, ADV.,) AND: 1. ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE-11 BANGALORE, BMTC BUILDING…

Coffeeday Global Ltd vs. Additional Commissioner of Income Tax

In the result, the orders dated 21

ITA/313/2018HC Karnataka12 Mar 2021

Bench: ALOK ARADHE,ASHOK S.KINAGI

Section 260Section 260A

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF MARCH 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE ASHOK S. KINAGI I.T.A. NO.315 OF 2018 C/W I.T.A. NO.388 OF 2018 I.T.A. NO.313 OF 2018 I.T.A. NO.315 OF 2018 BETWEEN: COFFEEDAY GLOBAL LTD. (FORMERLY KNOWN AS AMALGAMATED BEAN COFFEE TRADING CO LTD) NO.23/2, VITTAL MALLYA ROAD BENGALURU - 560001 REP. HEREIN BY ITS COMPANY SECRETARY MR. SADANAND POOJARY. ... APPELLANT (BY SRI. SURYANARAYANA T, ADV.,) AND: 1. ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE-11 BANGALORE, BMTC BUILDING…

Suresh Chunnilal Sharma, Parbhani vs. Income-Tax Officer, Ward - Parbhani, Parbhani

In the result, the appeal is partly allowed for statistical

ITA 1883/PUN/2018[2013-14]Status: DisposedITAT Pune16 Feb 2021AY 2013-14

Bench: Shri R.S. Syalआयकर अपील सं. / Ita No.1883/Pun/2018 िनधा"रण वष" / Assessment Year : 2013-14

Section 40A(3)

…est free funds available with the assessee could not be deemed to have been utilised for making investments in sources yielding exempt income. In this regard, it is noticed that the Hon’ble Supreme Court in CIT (LTU) Vs. Reliance Industries Limited (2019) 410 ITR 466 (SC) has approved the view that where interest free funds available with the assessee were sufficient to meet its investment and at the same time loan was raised, it can be presumed that the investments were made from interest free funds and hence, no disallowance of interest should be made to 15 Suresh Chunnilal Sharma that extent. In view o…

Lily Jewellery P.Ltd, Mumbai vs. ITO 10(2)(2), Mumbai

The appeal of the assessee is allowed in terms of our aforesaid observations

ITA 1687/MUM/2017[2012-13]Status: DisposedITAT Mumbai15 Feb 2021AY 2012-13

Bench: Shri S.Rifaur Rahman () & Shri Ravish Sood () Lily Jewellery Pvt. Ltd., The Income Tax Unit No. 503, Block No. Ii, Vs. Officer – 10(2)(2) Seepz-Sez, Seepz++, Room No. 350, 3Rd Floor, Andheri (East), Aayakar Bhavan, M.K. Road, Mumbai – 400 096 Mumbai Pan No. Aaacl9600J (Revenue) (Assessee) Assessee By : Shri Aamod Prabhudesai & : Ms. Shubhangi Prabhudesai, A.Rs Revenue By : Shri Sushil Kumar Mishra, D.R Date Of Hearing : 09/02/2021 Date Of Pronouncement : 15/02/2021

For Appellant: Shri Aamod Prabhudesai &For Respondent: Shri Sushil Kumar Mishra, D.R
Section 10ASection 143(1)Section 143(3)Section 2(24)(x)Section 36

…Lily Jewellery Pvt. Ltd. Vs. The Income Tax Officer 10(2)(2 1 ITA No. 1687/Mum/2017 A.Y. 2012-13 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K” MUMBAI BEFORE SHRI S.RIFAUR RAHMAN (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) Lily Jewellery Pvt. Ltd., The Income Tax Unit No. 503, Block No. II, Vs. Officer – 10(2)(2) Seepz-Sez, Seepz++, Room No. 350, 3rd Floor, Andheri (East), Aayakar Bhavan, M.K. Road, Mumbai – 400 096 Mumbai PAN No. AAACL9600J (Revenue) (Assessee) Assessee by : Shri Aamod Prabhudesai & : Ms. Shubhangi Prabhudesai, A.Rs Revenue by : Shri Sushil Kumar Mishra, D.R Date of Hea…

Agility Logistics P.Ltd, Mumbai vs. DCIT Range-9(1)(1), Mumbai

The appeal of the assessee is partly allowed in terms of our aforesaid observations

ITA 7199/MUM/2017[2013-14]Status: DisposedITAT Mumbai11 Feb 2021AY 2013-14

Bench: Shri S. Rifaur Rahman & Shri Ravish Soodagility Logistics Private Limited Deputy Commissioner Of Polaris, A-501/502, 5Th Floor, Income Tax Circle 9(1)(1), Off Marol Maroshi Road, Marol, Mumbai, Room No. 210/260A, Vs. Andheri (East), 2Nd Floor, Aayakar Bhavan, M.K. Road, Mumbai 400 059 Mumbai – 400 020 Pan – Aaacl3717A (Appellant) (Respondent) Agility Logistics Private Limited Asstt. Commissioner Of Polaris, A-501/502, 5Th Floor, Income Tax, Range 9(1)(1), Off Marol Maroshi Road, Marol, Room No. 203, 2Nd Floor, Vs. Andheri (East), Mumbai 400 067 Aayakar Bhavan,M.K. Road, Mumbai - 400020

For Appellant: S/sshri Dhanesh Bafna, Ketan Ved, Nishant Shah &For Respondent: S/shri Sunil Deshpande & Sushil Kr. Mishra, D.Rs
Section 143(3)Section 271(1)(c)Section 92C(2)

…P a g e | 1 ITA No.7199/Mum/2017 & ITA No. 6679/Mum/2018 AYs. 2013-14 and 2014-15 Agility Logistics Private Limited Vs. DCIT, Circle 9(1)(1) Mumbai THE INCOME TAX APPELLATE TRIBUNAL “K” Bench, Mumbai Before Shri S. Rifaur Rahman, Accountant Member and Shri Ravish Sood, Judicial Member Agility Logistics Private Limited Deputy Commissioner of Polaris, A-501/502, 5th Floor, Income Tax Circle 9(1)(1), Off Marol Maroshi Road, Marol, Mumbai, Room No. 210/260A, Vs. Andheri (East), 2nd Floor, Aayakar Bhavan, M.K. Road, Mumbai 400 059 Mumbai – 400 020 PAN – AAACL3717A (Appellant) (Respondent) Agility Logistics Private…

ACIT, Central Circle, Bikaner vs. Smt. Alpana Gupta, Sriganganagar

In the result, this appeal of the Revenue is dismissed

ITA 45/JODH/2020[2017-18]Status: DisposedITAT Jodhpur01 Feb 2021AY 2017-18

Bench: Shri Sandeep Gosain & Shri Manoj Kumar Aggarwala.C.I.T. Vs. Smt. Alpana Gupta, 4-A-15, Central Circle, Jawahar Nagar, Bikaner. Sriganganagar. Pan No. Aiepg 8893 R

Section 40

…ving both interest bearing funds and interest free funds, then it has to be presumed that interest free loans were given out of interest free funds. For this purpose, reliance is placed on the following decisions: - (i) CIT Vs. Reliance Industries Ltd. (2019) 175 DTR 1 (SC) (ii) CIT Vs. Ram Kishan Verma (2016) 132 DTR 107 (Raj.) (HC) (iii) CIT Vs. Vijay Solvex Ltd. (2015) 113 DTR 382 (Raj.) (HC) 8. We have heard the ld. Counsels of both the parties and have perused the material placed on record. We have also deliberated upon the decisions cited in the orders passed by the authorities below as well as cited befor…

M/S. Laxmi India Finleasecap Pvt. Ltd., Kolkata vs. Principal CIT - 1, Kolkata

In the result, the appeal of the assessee stands allowed

ITA 940/KOL/2018[2013-14]Status: DisposedITAT Kolkata22 Jan 2021AY 2013-14

Bench: Shri J.Sudhakar Reddy & Shri Sanjay Gargassessment Year: 2013-14

Section 14ASection 263Section 36(1)(iii)

…) would be warranted. Ld. counsel for the assessee in this respect has also placed reliance on various case laws. We find that the issue in this respect has been settled by the Hon'ble Supreme Court in the case of CIT (LTU) vs. Reliance Industries Ltd. (2019) 410 ITR 466 (SC) holding that if the assessee is possessed of sufficient own funds/interest free funds to meet the investments made, then under the circumstances, the presumption would be that such investments have been made by the assessee out of own/interest free funds available with the assessee. Moreover, in this case the Assessing Officer has already ca…

DCIT-Circle, Parwanoo vs. M/S Shivom Cotspin Ltd., Sirmour

In the result, this appeal of the Revenue stands partly allowed

ITA 47/CHANDI/2020[2013-14]Status: DisposedITAT Chandigarh28 Dec 2020AY 2013-14

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकरअपीलसं./Ita No.560/Chd/2019 "नधा"रणवष" / Assessment Year :2015-16 Shivam Cotspin Limited, The Dcit, Circle, बनाम Village Kheri, Parwanoo Kala Amb, Trilokpur Road, Sirmour Himachal Pradesh "थायीलेखासं./Pan No: Aajs9111L अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Rohit Goel, CAFor Respondent: Dr. Daya Inder Singh Sidhu, Addl. CIT
Section 250(6)Section 80I

…re, it was to be presumed that the own funds wereused for making the impugned advance of Rs. 78,56,792/-. In this regard the Ld. counsel for the assessee relied upon the decision of the Hon'ble Apex Court in the case of CIT vs Reliance Industries Ltd (2019) 410 ITR 466(SC). 39. The Ld. DR, on the other hand, has relied on the order of the CIT(A). 40. Having heard both the parties, we find merit in the contention of the Ld. Counsel for the assessee. Undoubtedly,the advances made were miniscule as compared to the own funds available with the assessee and, therefore, it could be safely presumed that the same ha…

DCIT-Circle, Parwanoo vs. M/S Shivom Cotspin Ltd., Sirmour

In the result, this appeal of the Revenue stands partly allowed

ITA 46/CHANDI/2020[2012-13]Status: DisposedITAT Chandigarh28 Dec 2020AY 2012-13

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकरअपीलसं./Ita No.560/Chd/2019 "नधा"रणवष" / Assessment Year :2015-16 Shivam Cotspin Limited, The Dcit, Circle, बनाम Village Kheri, Parwanoo Kala Amb, Trilokpur Road, Sirmour Himachal Pradesh "थायीलेखासं./Pan No: Aajs9111L अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Rohit Goel, CAFor Respondent: Dr. Daya Inder Singh Sidhu, Addl. CIT
Section 250(6)Section 80I

…re, it was to be presumed that the own funds wereused for making the impugned advance of Rs. 78,56,792/-. In this regard the Ld. counsel for the assessee relied upon the decision of the Hon'ble Apex Court in the case of CIT vs Reliance Industries Ltd (2019) 410 ITR 466(SC). 39. The Ld. DR, on the other hand, has relied on the order of the CIT(A). 40. Having heard both the parties, we find merit in the contention of the Ld. Counsel for the assessee. Undoubtedly,the advances made were miniscule as compared to the own funds available with the assessee and, therefore, it could be safely presumed that the same ha…

ACIT, Circle, Parwanoo vs. Shivom Cotspin Limited, Sirmour

In the result, this appeal of the Revenue stands partly allowed

ITA 957/CHANDI/2019[2015-16]Status: DisposedITAT Chandigarh28 Dec 2020AY 2015-16

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकरअपीलसं./Ita No.560/Chd/2019 "नधा"रणवष" / Assessment Year :2015-16 Shivam Cotspin Limited, The Dcit, Circle, बनाम Village Kheri, Parwanoo Kala Amb, Trilokpur Road, Sirmour Himachal Pradesh "थायीलेखासं./Pan No: Aajs9111L अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Rohit Goel, CAFor Respondent: Dr. Daya Inder Singh Sidhu, Addl. CIT
Section 250(6)Section 80I

…re, it was to be presumed that the own funds wereused for making the impugned advance of Rs. 78,56,792/-. In this regard the Ld. counsel for the assessee relied upon the decision of the Hon'ble Apex Court in the case of CIT vs Reliance Industries Ltd (2019) 410 ITR 466(SC). 39. The Ld. DR, on the other hand, has relied on the order of the CIT(A). 40. Having heard both the parties, we find merit in the contention of the Ld. Counsel for the assessee. Undoubtedly,the advances made were miniscule as compared to the own funds available with the assessee and, therefore, it could be safely presumed that the same ha…

Shivom Cotspin Limited, Kala Amb vs. DCIT, Circle, Parwanoo

In the result, this appeal of the Revenue stands partly allowed

ITA 560/CHANDI/2019[2015-16]Status: DisposedITAT Chandigarh28 Dec 2020AY 2015-16

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकरअपीलसं./Ita No.560/Chd/2019 "नधा"रणवष" / Assessment Year :2015-16 Shivam Cotspin Limited, The Dcit, Circle, बनाम Village Kheri, Parwanoo Kala Amb, Trilokpur Road, Sirmour Himachal Pradesh "थायीलेखासं./Pan No: Aajs9111L अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Rohit Goel, CAFor Respondent: Dr. Daya Inder Singh Sidhu, Addl. CIT
Section 250(6)Section 80I

…re, it was to be presumed that the own funds wereused for making the impugned advance of Rs. 78,56,792/-. In this regard the Ld. counsel for the assessee relied upon the decision of the Hon'ble Apex Court in the case of CIT vs Reliance Industries Ltd (2019) 410 ITR 466(SC). 39. The Ld. DR, on the other hand, has relied on the order of the CIT(A). 40. Having heard both the parties, we find merit in the contention of the Ld. Counsel for the assessee. Undoubtedly,the advances made were miniscule as compared to the own funds available with the assessee and, therefore, it could be safely presumed that the same ha…

M/S International Customer Related Management Services Pvt. Ltd., Mohali vs. DCIT, C-6(1), Mohali

In the result, the appeal of the assessee stands allowed for statistical purposes

ITA 884/CHANDI/2018[2009-10]Status: DisposedITAT Chandigarh09 Dec 2020AY 2009-10

Bench: Shri Sanjay Gargआयकर अपील सं./ Ita No. 884/Chd/2018 "नधा"रण वष" / Assessment Year : 2009-10 M/S International Customer Related The Dcit, बनाम Management Service Pvt. Ltd., Circle 6 (1), Phase 3A, Mohali Mohali "थायी लेखा सं./Pan No: Aabci2162B अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Smt. Meenakshi Vohra, Addl. CIT
Section 36(1)(iii)Section 46A

…he case of ‘Hero Cycles (P) Ltd Vs. CIT’ 379 ITR 347 (SC) and also by the decision of the Hon'ble Supreme Court in the case of ‘CIT (LTU) Vs. ITA No. 884Chd-2018 M/s International Customer Related Services Pvt Ltd, Mohali 3 Reliance Industries Ltd.’ [2019] 410 ITR 466 (SC). 6. I have considered the rival contentions of the Ld. Representatives of the parties and find that the issue is squarely covered by the various decisions of the High Courts as well as of the apex court of the country holding that if the assessee is possessed of sufficient own interest free funds to meet the investments / interest free a…

Abs Entertainment Private Ltd, Mumbai vs. DCIT, Ward 9(1)(1), Mumbai

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

ITA 3467/MUM/2019[2011-12]Status: DisposedITAT Mumbai11 Nov 2020AY 2011-12

Bench: Shri Amarjit Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं/ I.T.A. No. 3467/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2011-12) बिधम/ Abs Entertainment Pvt. Ltd. Dcit, Ward 9(1) Hariom Chambers, 7Th Floor, 203, Aaykar Bhavan, 2Nd Vs. B-16, Veera Industrial Floor, Maharshi Karve Road, Estate, Off Link Road, New Marine Lines, Mumbai- Andheri (W), Mumbai- 400020. 400053. & आयकर अपील सं/ I.T.A. No. 3468/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2014-15) बिधम/ Abs Entertainment Pvt. Ltd. Ito, Ward 9(1) Hariom Chambers, 7Th Floor, Aaykar Bhavan, 2Nd Floor, Vs. B-16, Veera Industrial Room No. 203, Maharshi Estate, Off Link Road, Karve Road, New Marine Andheri (W), Mumbai- Lines, Mumbai-400020. 400053. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aahca1347E (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Jayesh Desi (Ar) Revenue By: Shri Michael Jerald (Dr) सुनवाई की तारीख / Date Of Hearing: 13/10/2020 घोषणा की तारीख /Date Of Pronouncement: 11/11/2020 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Above Mentioned Appeals Against The Different Order Passed By The Commissioner Of Income Tax (Appeals)- 16, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The

For Appellant: Shri Jayesh Desi (AR)For Respondent: Shri Michael Jerald (DR)
Section 143(1)Section 143(2)Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं/ I.T.A. No. 3467/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2011-12) बिधम/ ABS Entertainment Pvt. Ltd. DCIT, Ward 9(1) Hariom Chambers, 7th Floor, 203, Aaykar Bhavan, 2nd Vs. B-16, Veera Industrial Floor, Maharshi Karve Road, Estate, Off Link Road, New Marine Lines, Mumbai- Andheri (W), Mumbai- 400020. 400053. & आयकर अपील सं/ I.T.A. No. 3468/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2014-15) बिधम/ ABS Entertainment Pvt. Ltd. ITO, Ward 9(1) Hariom Chambers, 7th Floor, Aaykar Bhavan,…

M/S. Opg Securities Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result ground No. 2 of the appeal is allowed

ITA 6013/DEL/2016[2011-12]Status: DisposedITAT Delhi23 Oct 2020AY 2011-12

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi(Through Video Conferencing) M/S. Opg Securities Pvt. Ltd, Vs. Dcit, Opg House, 4/10, Asaf Ali Road, New Circle-13(1), Delhi Cr Building, Ip Estate, Pan: Aaaco1081C New Delhi (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Ms. Rakhi Vimal, Sr. DR
Section 10(34)Section 143(3)Section 14ASection 36(1)(iii)

…hat assessee has sufficient interest free funds available to advance the above loan to its sister concern free of interest. The issue is squarely covered in favour of the assessee by the decision of the Hon’ble Supreme Court in CIT Vs. Reliance Industries Ltd 410 ITR 466 wherein, it has been held that when the interest free funds available to the assessee were sufficient to make its investment which could be presumed that such interest free loans are made from interest free funds available with the assessee. In view of this, we direct the ld AO to delete the disallowance of interest expenditure of Rs. 2677324/-.…

Shri Sanjay Kumar Sharma, Ludhiana vs. DCIT, C-6, Ludhiana

The appeal of the assessee is hereby allowed

ITA 1249/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh21 Oct 2020AY 2014-15

Bench: Shri Sanjay Garg & Ms. Annapurna Gupta

For Appellant: Shri Ashwani Kumar ,CAFor Respondent: Shri Amaresh Singh, CIT
Section 143(3)Section 36

…he Hon'ble Supreme Court in the case of ‘Hero Cycles (P) Ltd Vs. CIT’ 379 ITR 347 (SC) and also on the decision of the Hon'ble Supreme Court in the case of ‘CIT (LTU) Vs. 6 ITA No. 1249-Chd/2019- Sanjay Kumar Sharma, Ludhiana Reliance Industries Ltd.’ [2019] 410 ITR 466 (SC). Thus, as per the settled law no disallowance u/s 36(i)(iii) of the Act is warranted on this issue. The disallowance made by the AO on this issue is ordered to be deleted. The issue is accordingly allowed in favour of the assessee. In view of this, we do not find any merit in the order of the CIT(A) and the same is hereby set aside. The app…

Mufg Bank Ltd, New Delhi vs. ACIT (International Taxation) Circle-2(2)(1), New Delhi

In the result appeal of the assessee is partly allowed

ITA 7895/DEL/2019[2015-16]Status: DisposedITAT Delhi16 Oct 2020AY 2015-16

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing) Mufg Bank Ltd, Vs. Acit (International Taxation), 5Th Floor, Worldmark 2, Asset 8, Circle-2(2)(1), Aerocity, Nh-8, New Delhi New Delhi Pan: Aabct3880D (Appellant) (Respondent)

For Appellant: Shri Nishant Thakkar, AdvFor Respondent: Shr Surender Pal, CIT DR
Section 143(3)Section 14ASection 244ASection 37(1)Section 44C

…se (Para 30 Page 103 of Compilation) b. ACIT vs. Delhi International (89 taxmann.com 326) (Del. Trib.) (Para 47 Page 431 of Compilation) c. Hero Cycles (P.) Ltd. vs. CIT (379 ITR 347) (SC) (Para 16 Page 440 of Compilation) d. Reliance Industries Ltd. vs. CIT (410 ITR 466) (SC) (Para 7 Page 442 of Compilation) e. CIT vs. HDFC (366 ITR 505) (Bom.) (Para 4 Page 445 of Compilation) f. CIT vs. Ashok Apparel (106 taxmann.com 63) (Bom.) (Para 7 Page 450 of Compilation) g. PCIT vs Shreno Ltd. – 409 ITR 401 (Guj) (Para 16 & 17) (Pages 458 & 459 of Compilation) 18. The learned departmental representative vehemently suppor…

I.T.O., Ward-3(1), Kolkata vs. M/S Brahmdeo Sinha & Co. Hardcoke (P) Ltd., Kolkata

In the result, the appeal of revenue is dismissed

ITA 1481/KOL/2019[2013-14]Status: DisposedITAT Kolkata14 Oct 2020AY 2013-14

Bench: Shri P.M. Jagtap(Kz) &Shri A. T. Varkey, Jm] Assessment Year: 2013-14 Income Tax Officer, Ward-3(1), Vs. M/S. Brahmdeo Sinha & Co. (Hard Kolkata Coke) Pvt. Ltd. (Pan: Aaccb6632J) Appellant Respondent Date Of Hearing (Virtual) 05.10.2020 Date Of Pronouncement 14.10.2020 For The Appellant Shri Jayantakhanra, Jcit, Cit, Dr For The Respondent Shri Subash Agarwal, Advocate

…- (closing)]. Thus, the presumption is that the funds deployed by the assessee company to its sister concern was from own funds. For this, proposition we rely on the decision of Hon’ble Supreme Court in the case of Reliance Utilities & Powers Ltd. Reported in 410 ITR 466 (SC). And we note that the assessee has given the advance to M/s BRPL due to commercial expediency. On this issue let us look at the decision of Hon’ble Delhi High Court in CIT vs. Bharati Tele Venture (2011) 381 ITR 502 (Del) wherein their Lordship’s relying on the decision of the Hon’ble Supreme Court in Sasoon J David vs. CIT 118 ITR 261 (SC)…

M/S. Dharampal Satyapal Ltd., Delhi vs. ACIT, New Delhi

ITA 1380/DEL/2017[2012-13]Status: DisposedITAT Delhi07 Oct 2020AY 2012-13

Bench: Shri Amit Shukla & Sh. Prashant Maharishi(Through Video Conferencing) Assessment Year: 2012-13 M/S. Dharampal Satyapal Ltd. Acit, 1711, S. P. Mukherjee Marg, Vs Central Circle – 29, Delhi-110006 New Delhi Pan No. Aaacd0132H (Appellant) (Respondent) Appellant By Sh. R. S. Singhavi, Ca Sh. Satyajeet Goel, Ca Respondent By Sh. Sanjay I. Bara, Cit Dr Date Of Hearing: 28/08/2020 Date Of Pronouncement: 07/10/2020 Order

Section 115JSection 143Section 144CSection 14ASection 14A(2)Section 36Section 43(5)(d)Section 80I

…herefore submitted that position has to be examined in totality and it is not open to consider entries in bank account in a distorted and isolated manner. He further relied up on several judicial precedents as under : i. CIT v. Reliance Industries Ltd. [2019] 410 ITR 466 (SC) ii. CIT Vs. Bharti Televenture Ltd. 51 DTR 98 (Del.) iii. CIT Vs. Tin Box Co. 260 ITR 637 (Del.) iv. CIT v. Reliance Utilities & Power Ltd. [2009] 313 ITR 340 (Bom) 23. He submitted that in light of factual and legal position clarified above, there is no case of any disallowance of interest u/s 36(1)(iii) of Income Tax The Act, 1961. 24. Lea…

Poona Constructtion Machinery & Products Pvt.Ltd, Pune vs. Deputy Commissioner of Income Tax, Pune

In the result, the appeal is partly allowed

ITA 493/PUN/2017[2012-13]Status: DisposedITAT Pune06 Oct 2020AY 2012-13

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhuryिनधा"रण वष" / Assessment Year : 2012-13

Section 36(1)(iii)

…xceeded the interest free loan 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 Hon’ble Supreme Court in CIT(LTU) VS. Reliance Industries Ltd. (2019) 410 ITR 466 (SC) has reiterated the same view. 7. As the assessee’s capital along with Reserves and Surplus stood at Rs.5.71 crore as against interest free loans amounting to Rs.8.07 crore, we hold that no disallowance of interest could have been made to the extent of availability of interest free funds. We, therefore, accept the availability of interest…