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.

Pawan Deep Singh, Sirsa vs. ITO, W-2, Sirsa

In the result, the appeal of the assessee is treated as partly

ITA 371/CHANDI/2019[2012-13]Status: DisposedITAT Chandigarh05 Nov 2019AY 2012-13

Bench: Shri Sanjay Garg

For Appellant: Shri M.R. Sharma, ARFor Respondent: Sh. Manjit Singh, CIT DR
Section 147Section 148Section 154Section 36Section 36(1)(iii)Section 43B

…dvances for the purchase of property. The issue, however, has been otherwise settled by the various decisions of the higher Courts including that of the recent decision of Hon'ble Supreme Court in the case of ‘CIT (LTU) Vs. Reliance Industries Ltd.’ [2010] 410 ITR 466 (SC), wherein, the Hon'ble Supreme Court has again confirmed the proposition of law that if the own funds / interest free funds are available with the assessee to meet the investment, presumption will be that the assessee had used its own / interest free funds for the said investment. In view of this, since the assessee has established that…

M/S. Design Forum International, New Delhi vs. ACIT, New Delhi

Appeal of the assessee is partly allowed

ITA 3317/DEL/2017[2013-14]Status: DisposedITAT Delhi30 Oct 2019AY 2013-14

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi[Assessment Year: 2013-14]

Section 142(1)Section 143(2)

…has its own funds to the tune of Rs. 56,73,773. Thus, no disallowance can be made to the extent of such amount advanced (Interest of Rs. 6,80,853) in view of the recent judgement of the Hon’ble Supreme Court in case of CIT vs. Reliance Industries Ltd. (2019) 410 ITR 466 (SC) wherein it has been held that where the interest free funds are available with the assessee, it could be presumed that the investments were first made from the interest free funds available with the assessee. The Ld. AR relied upon the following decisions: 1. Punjab Stainless Steel Inds. Vs. ACIT (2019) (6) TMI 427 – Tri. Del. 2. CIT vs. HDF…

Prasanna Purple Mobility Solutions Pvt.Ltd, Pune vs. Deputy Commissioner of Income-Tax, Circle - 4, Pune

In the result, the appeal of Revenue is dismissed

ITA 62/PUN/2018[2013-14]Status: DisposedITAT Pune16 Oct 2019AY 2013-14

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: Shri Nikhil MuthaFor Respondent: Shri Vodal Raj Singh
Section 143(3)Section 36(1)(iii)Section 37(1)

…d that against the order of Reliance Industries Ltd., (supra), Revenue had filed SLP before the Hon’ble Apex Court and the Hon’ble Apex Court has upheld the order of Hon’ble High Court. He placed on record the copy of the order which was reported in (2019) 410 ITR 466 (SC) at Pages 114 to 116 of the Paper Book. He thus supported the order of Ld.CIT(A). 12. We have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to proportionate disallowance u/s 36(1)(iii) of the Act. It is Revenue’s case that assessee has diverted borrowed funds to its sister c…

Assistant Commissioner of Income-Tax, Circle -4, Pune vs. Prasanna Purple Mobility Solutions Pvt.Ltd, Pune

In the result, the appeal of Revenue is dismissed

ITA 367/PUN/2018[2013-14]Status: DisposedITAT Pune16 Oct 2019AY 2013-14

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: Shri Nikhil MuthaFor Respondent: Shri Vodal Raj Singh
Section 143(3)Section 36(1)(iii)Section 37(1)

…d that against the order of Reliance Industries Ltd., (supra), Revenue had filed SLP before the Hon’ble Apex Court and the Hon’ble Apex Court has upheld the order of Hon’ble High Court. He placed on record the copy of the order which was reported in (2019) 410 ITR 466 (SC) at Pages 114 to 116 of the Paper Book. He thus supported the order of Ld.CIT(A). 12. We have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to proportionate disallowance u/s 36(1)(iii) of the Act. It is Revenue’s case that assessee has diverted borrowed funds to its sister c…

Anushakti Chemicals & Drugs Ltd.(Formerly Aarti Healthcare Ltd Now Merged With Aarti Industries Limited.), Mumbai vs. Assistant Commissioner of Income Tax 15(1)(2), Mumbai

The appeal stands allowed for statistical purposes

ITA 4964/MUM/2017[2012-13]Status: DisposedITAT Mumbai15 Oct 2019AY 2012-13

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.4964/Mum/2017 (िनधा"रण वष" / Assessment Year:2012-13) Anushakti Chemicals & Drugs Ltd. Acit -15(1)(1) [Formerly Aarti Healthcare Ltd. Now Merged Mumbai. बनाम/ With Aarti Industries Ltd.] Vs. 2Nd Floor, Udyog Kshetra, Mulund Goregaon Link Road, Mumbai-400 080. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaca-3517-H (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Shri Anuj Kisnadwala-Ld.Ar ""थ"कीओरसे/Respondent By : Shri S. Michael Jerald-Ld.Dr सुनवाईकीतारीख/ : 15/10/2019 Date Of Hearing घोषणाकीतारीख / : 15/10/2019 Date Of Pronouncement आदेश / O R D E R

For Appellant: Shri Anuj Kisnadwala-Ld.ARFor Respondent: Shri S. Michael Jerald-Ld.DR
Section 115JSection 14A

…order. This ground also stand allowed for statistical purposes. 7. The last ground pertains to interest disallowance u/s 36(1)(iii). For this the Ld. AR has relied upon the recent decision of Hon’ble Supreme Court rendered in CIT V/s Reliance Industries Ltd. [410 ITR 466 02/01/2019] for the submission that in case of mixed use of funds, a presumption was to be drawn that capital advances were out of free funds available with the assessee. The Ld. CIT(A) has directed Ld. AO to recompute the disallowance based on number of days for which funds were actually utilized for capital advances. However, respectfully follo…

A.C.I.T., Circle -3, Srinagar vs. M/S Khyber Industries Pvt . Ltd, Srinagar

In the result, the appeal filed by the Revenue Department stands dismissed

ITA 646/ASR/2017[2014-15]Status: DisposedITAT Amritsar09 Oct 2019AY 2014-15

Bench: Sh. B.R. Baskaran & Sh. N.K.Choudhryita No.646(Asr)/2017 Assessment Year:2014-15

For Appellant: Sh. Amar Pal Meena (Ld. DR)For Respondent: Sh. P. K. Mishra (Ld. CA)
Section 14ASection 250(6)Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. B.R. BASKARAN, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA No.646(Asr)/2017 Assessment Year:2014-15 Asst. CIT, Vs. M/s Khyber Industries Pvt. Ltd. Circle-3, Srinagar Khayam Building Nowpora Srinagar [PAN:AAACK 7457J] (Appellant) (Respondent) Appellant by : Sh. Amar Pal Meena (Ld. DR) Respondent by: Sh. P. K. Mishra (Ld. CA) Date of hearing: 29.08.2019 Date of pronouncement: 09.10.2019 ORDER PER N.K. CHOUDHRY, JM: The instant appeal has been preferred by the Revenue Department against the order dated 29.06.2017…

Aquagel Chemicals(Bhavnagar)P. Ltd., Bhavnagar vs. DCIT, Circle-1, Bhavanagar

In the result, appeal of the assessee in ITA No

ITA 424/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad01 Oct 2019AY 2014-15

Bench: Shri Kul Bharat & Shri Waseem Ahmedaquagel Chemicals Vs. Dcit, (Bhavnagar) Pvt. Ltd., Circle – 1, 251, Navagam, Kardej, Bhavnagar. Dist. Bhavnagar – 364 060. [Pan No. Aakca 9462 B] (Appellant) (Respondent) ..

For Appellant: Shri Parimal B. Parmar, A.RFor Respondent: Shri Satish Solanki, Sr. D.R
Section 143(3)Section 14ASection 234A

…horities below are not justified in making the addition as the assessee has sufficient interest free fund of its own per contra the Learned DR opposed the submission. Learned Counsel placed reliance in the following cases: " CIT vs. Reliance Industries Ltd. - 410 ITR 466 (SC); " CIT vs. Torrent Power Ltd. - 363 ITR 474 (Guj); " CIT vs. Suzlon Energy Ltd. - 354 ITR 630 (Guj); " CIT vs. Gujarat Power Corporation Ltd. - 352 ITR 583 (Guj); " CIT vs. Hitachi Home & Life Solutions (I). Ltd. - (2014) 41 taxmann.com 540 (Guj); " CIT vs. Reliance Utilities & Power Ltd. - 313 ITR 340 (Bom); " Munjal Sales Corporation vs. C…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2283/CHNY/2018[2014-15]Status: DisposedITAT Chennai25 Sept 2019AY 2014-15

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…ion should be drawn that own funds were utilized for the purpose of making investments and no disallowance of interest should be made. This proposition of law has been upheld by the Hon’ble Supreme Court in the case of CIT v. Reliance Industries Ltd. [2019] 410 ITR 466 (SC) affirm the decision of the Hon’ble High Court in the case of CIT v. Reliance Industries Ltd. [2017] 86 taxmann.com 24 (Bom.), wherein it was held as follows: 33. We do not see how when the Assessing Officer's views are that in cases of the interest free loans and interest given by the assessee to its subsidiary companies are in the above s…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2282/CHNY/2018[2013-14]Status: DisposedITAT Chennai25 Sept 2019AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…ion should be drawn that own funds were utilized for the purpose of making investments and no disallowance of interest should be made. This proposition of law has been upheld by the Hon’ble Supreme Court in the case of CIT v. Reliance Industries Ltd. [2019] 410 ITR 466 (SC) affirm the decision of the Hon’ble High Court in the case of CIT v. Reliance Industries Ltd. [2017] 86 taxmann.com 24 (Bom.), wherein it was held as follows: 33. We do not see how when the Assessing Officer's views are that in cases of the interest free loans and interest given by the assessee to its subsidiary companies are in the above s…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2281/CHNY/2018[2012-13]Status: DisposedITAT Chennai25 Sept 2019AY 2012-13

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…ion should be drawn that own funds were utilized for the purpose of making investments and no disallowance of interest should be made. This proposition of law has been upheld by the Hon’ble Supreme Court in the case of CIT v. Reliance Industries Ltd. [2019] 410 ITR 466 (SC) affirm the decision of the Hon’ble High Court in the case of CIT v. Reliance Industries Ltd. [2017] 86 taxmann.com 24 (Bom.), wherein it was held as follows: 33. We do not see how when the Assessing Officer's views are that in cases of the interest free loans and interest given by the assessee to its subsidiary companies are in the above s…

ACIT Central Circle, Salem vs. Thriveni Earthmovers Pvt. Ltd., Salem

In the result, the appeal filed by the Revenue in ITA

ITA 2280/CHNY/2018[2011-12]Status: DisposedITAT Chennai25 Sept 2019AY 2011-12

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. Nos. 2280, 2281, 2282 & 2283/Chny/2018 "नधा"रण वष" /Assessment Years :2011-12, 2012-13, 2013-14 & 2014-15 The Assistant Commissioner Vs. M/S. Thriveni Earthmovers Pvt Ltd, Of Income Tax, 22/110, Greenways Road, Central Circle, Fairlands, Salem Salem 636 016. [Pan Aabct 6759R] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. M. Srinivasa Rao, IRS, CIT
Section 143(3)Section 148

…ion should be drawn that own funds were utilized for the purpose of making investments and no disallowance of interest should be made. This proposition of law has been upheld by the Hon’ble Supreme Court in the case of CIT v. Reliance Industries Ltd. [2019] 410 ITR 466 (SC) affirm the decision of the Hon’ble High Court in the case of CIT v. Reliance Industries Ltd. [2017] 86 taxmann.com 24 (Bom.), wherein it was held as follows: 33. We do not see how when the Assessing Officer's views are that in cases of the interest free loans and interest given by the assessee to its subsidiary companies are in the above s…

Hemal Punamchand Turakhia, Ahmedabad vs. The ACIT, Central Circle 1(1), Ahmedabad

In the result, the appeal of the assessee stands allowed

ITA 2819/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad17 Sept 2019AY 2014-15

Bench: Shri O. P Meena & Ms. Madhumita Royआ.अ.सं/.I.T.A No.2819/Ahd/2017 िनधा"रण वष"/Assessment Year:2014-15 बनाम Smt. Hemal Punamchand Assistant Commissioner Of Turakhia, Vs. Income Tax, Central Circle- B-203, Pushpabhavan 1(1) Ahmedabad Apartments, Near Ruchir Aaaykar Bhavan Bungalows, Bodakdev Ahmedabad 380 009 Ahmedabad 380054 Pan: Aahpt 2969 A अपीलाथ" Appellant ""यथ"/Respondent

Section 36(1)(iii)

…Hemal P Turakhia v. ACIT-CC-1(1) Ahmedabad /I.T.A.No. 2819/AHD/2017/A.Y. 14-15 1 आयकर अपील"य अ"धकरण, अहमदाबाद “C” "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’C’’BENCH, AHMEDABAD BEFORE SHRI O. P MEENA, ACCOUNTANT MEMBER AND Ms. MADHUMITA ROY, JUDICIAL MEMBER आ.अ.सं/.I.T.A No.2819/AHD/2017 िनधा"रण वष"/Assessment Year:2014-15 बनाम Smt. Hemal Punamchand Assistant Commissioner of Turakhia, Vs. Income Tax, Central Circle- B-203, Pushpabhavan 1(1) Ahmedabad Apartments, Near Ruchir Aaaykar Bhavan Bungalows, Bodakdev Ahmedabad 380 009 Ahmedabad 380054 PAN: AAHPT 2969 A अपीलाथ" Appellant ""यथ"/Respondent Shri Parin…

Shree Rama Multi-Tech Ltd., Ahmedabad vs. The Dy.CIT., Crcle-8, Ahmedabad

In the result, appeal filed by the Assessee is allowed

ITA 216/AHD/2014[1998-99]Status: DisposedITAT Ahmedabad16 Sept 2019AY 1998-99

Bench: Shri Mahavir Prasad & Shri Amarjit Singh)

For Appellant: Shri Bandish Soparkar, ARFor Respondent: Shri O.P. Sharma, CIT/DR
Section 142(1)Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER) ITA. No: 216/AHD/2014 (Assessment Year: 1998-99) Shree Rama Multi-Tech V/S Dy.CIT, Circle-8, Ltd. 603, Shikhar Building, Ahmedabad Navrangpura, Ahmedabad-380009 (Appellant) (Respondent) PAN: AAJCS 1563N Appellant by : Shri Bandish Soparkar, AR Respondent by : Shri O.P. Sharma, CIT/DR & L.P. Jain, Sr. D.R. (आदेश)/ORDER Date of hearing : 11 -07-2019 Date of Pronouncement : 16 -09-2019 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. This appeal filed by the Assessee…

DCIT Cir 3(3)(1), Mumbai vs. Rama Phosphates Ltd, Mumbai

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

ITA 4006/MUM/2016[2010-11]Status: DisposedITAT Mumbai16 Sept 2019AY 2010-11

Bench: Shri Shamim Yahya (Am) & Shri Ravish Sood (Jm)

Section 14Section 14A

…ion has been claimed by the assessee in the past in respect of the bank loan. He further submitted that following case laws supports the proposition canvassed by him.  CIT Vs. Compaq Electric Ltd. (101 Taxmann.com 400)(SC)  CIT Vs. Reliance Industries Ltd. (102 Taxmann.com 142) (Bombay)  ITO Vs. Wasan Exports (P) Ltd. (106 Taxmnn.com 21)(Del) 4 M/s. Rama Phosphates Ltd. 13. Upon careful consideration we find that the assessing officer in this case has placed reliance upon honourable jurisdictional High Court decision in the case of solid containers Ltd. (supra). In this decision Hon'ble Jurisdictional High C…

Skm Animal Feeds and Foods (I) Pvt Ltd, Erode vs. ACIT-2, Erode

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

ITA 3174/CHNY/2018[2013-14]Status: DisposedITAT Chennai13 Sept 2019AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddyआयकर अपील सं./I.T.A. No. 3174/Chny/2018 िनधा"रण वष"/Assessment Year: 2013-14 M/S. Skm Animal Feeds & Foods The Assistant Commissioner Of (India) Private Limited, Vs. Income Tax, Chavadipalayampudur Road, Circle 2, Nanjaiuthukuli, Modakkurichi, Erode Dt. Erode. Tamil Nadu 638 104 [Pan:Aaccs9493E] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri G. Baskar, Advocate ""थ" की ओर से/Respondent By : Shri Clement Ramesh Kumar, Addl.Cit सुनवाई की तारीख/ Date Of Hearing : 15.07.2019 घोषणा की तारीख /Date Of Pronouncement : 13.09.2019 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 3, Coimbatore, Dated 01.11.2018 Relevant To The Assessment Year 2013-14. In The Grounds Of Appeal, The Assessee Has Challenged The Order Of The Ld. Cit(A) On Confirmation Of Disallowance Of Interest Expenses Of ₹.2,63,93,294/-.

For Appellant: Shri G. Baskar, AdvocateFor Respondent: Shri Clement Ramesh Kumar, Addl.CIT
Section 143(3)

…आयकर अपीलीय अिधकरण, ‘सी’ "ायपीठ, चे"ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI "ी इंट"री रामा राव, लेखा सद" एवं "ी धु"ु" आर.एल रे"ी, "ाियक सद" के सम" Before Shri Inturi Rama Rao, Accountant Member & Shri Duvvuru RL Reddy, Judicial Member आयकर अपील सं./I.T.A. No. 3174/Chny/2018 िनधा"रण वष"/Assessment Year: 2013-14 M/s. SKM Animal Feeds and Foods The Assistant Commissioner of (India) Private Limited, Vs. Income Tax, Chavadipalayampudur Road, Circle 2, Nanjaiuthukuli, Modakkurichi, Erode Dt. Erode. Tamil Nadu 638 104 [PAN:AACCS9493E] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant b…

M/S. Amba Metals, New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 5378/DEL/2016[2012-13]Status: DisposedITAT Delhi07 Aug 2019AY 2012-13

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Shri Ved Jain, CAFor Respondent: Shri Manoj Kumar Mahar, Sr.D.R
Section 143(3)Section 36(1)(iii)

…Apart from that, he also submitted that assesse has huge surplus funds at the time of giving the advance, and therefore, no disallowance can be made in this regard. In support, he relied upon the following judgments. • CIT vs. Reliance Industries Ltd. (2019) 410 ITR 466 (SC). • Punjab Stainless Steel Industries. Vs. ACIT, Circle-34(1), New Delhi. • Hero Cycles (P) Ltd. vs. Commissioner of Income Tax (Central), Ludhiana (2015) 379 ITR 347 (SC). 3 I.T.A. No.5378/DEL/2016 4. On the other hand, ld. DR has strongly relied upon the order of the Assessing Officer and ld. CIT (A). 5. After considering the rival subm…

ACIT 1(1), Mumbai vs. Forbes & Co.Ltd, Mumbai

In the result, appeal of the assessee is partly allowed and the appeal of

ITA 5536/MUM/2011[2007-08]Status: DisposedITAT Mumbai25 Jul 2019AY 2007-08

Bench: Shri G S Pannu, Vice-And Shri Pawan Singh

For Appellant: Shri Girish Dave (AR)For Respondent: Shri S C Tiwari (CIT-DR)
Section 143(3)Section 14ASection 3Section 37(1)Section 40

…ee funds available with the assessee. Therefore, no disallowance under section 36(1)(3) was warranted. The ld. AR further submits that the issue is also covered by the latest decision of Hon’ble Supreme Court in CIT vs. Reliance Industries reported in [2019] 410 ITR 466 (SC). The ld. AR of the assessee submits that the Assessing Officer relied upon the decision Phalatan Sugar Works Ltd. (208 ITR 989), which has been reversed in S.A. Builders vs. CIT [288 ITR 1 (SC)]. 25. On the other hand, the ld. DR for the revenue submits that this issue may be sent back to the Assessing Officer for examination, if the asse…

M/S Vistaar Financial Services Pvt Ltd, Bangalore vs. The Assistant Commissioner of Income Tax Circle-7(1)(2), Bangalore

In the result, the appeal of the assessee is partly allowed

ITA 684/BANG/2019[2014-15]Status: DisposedITAT Bangalore22 Jul 2019AY 2014-15

Bench: Shri B.R. Baskaran & Shri Pavan Kumar Gadale

For Appellant: Shri Tata Krishna, AdvocateFor Respondent: Shri R.N. Siddappaji, Addl. CIT
Section 143(2)Section 143(3)Section 36(1)(iii)

…ld. AR referred to the Balance Sheet as on 31.03.2014 where shareholders funds disclosed are Rs.590,195,044 and the amount advanced to the Welfare Trust is only Rs.5,08,10,000 and supported his submissions relying on the Hon'ble Supreme Court decision (2019) 401 ITR 466 10 (SC) CIT Vs. Reliance Industries Ltd. We found that the submissions of the learned Authorised Representative are realistic duly supported with the judicial decisions on the issue of interest free funds, we rely on the decision of Reliance Industries Ltd. (supra) where the Hon'ble Apex Court held as under (Head Note) : Similarly in the case o…

DCIT, C-5, Ludhiana vs. M/S Satyam Auto Components Ltd., Ludhiana

In the result, both the appeals of the Revenue are hereby

ITA 589/CHANDI/2018[2012-13]Status: DisposedITAT Chandigarh10 Jul 2019AY 2012-13

Bench: Shri N.K. Saini & Shrisanjay Gargआयकरअपीलसं./Ita No. 1500/Chd/2017 "नधा"रणवष" / Assessment Year : 2011-12 The Dcit, Circle-5, Vs. M/S Satyam Auto Components Ludhiana Pvt Ltd., G.T.Road, Hero बनाम Nagar, Ludhiana

For Appellant: Sh. Manjit Singh, CIT DRFor Respondent: Sh. Subhash Aggarwal, Advocate
Section 36

…t he assessee was possessed of sufficient own funds to meet the expenditure incurred on the fixed assets. This issue is now squarely covered by the recent decision of the Hon'ble Supreme court in the case of ‘CIT (LTU) Vs. Reliance Industries Ltd.’ [2019] 410 ITR 466 (SC), wherein, the Hon'ble Supreme Court has affirmed the proposition of law that if the own funds / interest free funds are available with the assessee to meet the investment, presumption will be that the assessee has used its own / interest free funds for the said investment. In view of this, we do not find any infirmity in the order of the…

DCIT, C-5, Ludhiana vs. M/S Satyam Auto Components Ltd., Ludhiana

In the result, both the appeals of the Revenue are hereby

ITA 1500/CHANDI/2017[2011-12]Status: DisposedITAT Chandigarh10 Jul 2019AY 2011-12

Bench: Shri N.K. Saini & Shrisanjay Gargआयकरअपीलसं./Ita No. 1500/Chd/2017 "नधा"रणवष" / Assessment Year : 2011-12 The Dcit, Circle-5, Vs. M/S Satyam Auto Components Ludhiana Pvt Ltd., G.T.Road, Hero बनाम Nagar, Ludhiana

For Appellant: Sh. Manjit Singh, CIT DRFor Respondent: Sh. Subhash Aggarwal, Advocate
Section 36

…t he assessee was possessed of sufficient own funds to meet the expenditure incurred on the fixed assets. This issue is now squarely covered by the recent decision of the Hon'ble Supreme court in the case of ‘CIT (LTU) Vs. Reliance Industries Ltd.’ [2019] 410 ITR 466 (SC), wherein, the Hon'ble Supreme Court has affirmed the proposition of law that if the own funds / interest free funds are available with the assessee to meet the investment, presumption will be that the assessee has used its own / interest free funds for the said investment. In view of this, we do not find any infirmity in the order of the…