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.

Assistant Commissioner of Income-Tax, Circle 2(1)(1), Vadodara vs. Oriental Enterprises Private Limited, Pcc Notified Area

ITA 732/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad27 Aug 2024AY 2016-17

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

For Appellant: Shri Vartik Chokshi, ARFor Respondent: Shri Ashok Natha Bhalekar, Sr.DR
Section 143(3)Section 36(1)(va)Section 37

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद "यायपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण अहमदाबाद "यायपीठ अहमदाबाद "यायपीठ“ए“, अहमदाबाद। अहमदाबाद "यायपीठ अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD सु"ी सु"च"ा का"बले,"या"यक सद"य एवं "ीमकरंद वसंत महादेवकर, लेखा सद"य के सम"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER Sl. आयकरअपील सं/ "नधा"रण वष"/ Appeal(s) by : No(s) ITA No(s) Assess- अपीलाथ" /""यथ" / ment Appellant बनाम/vs.Respondent Year(s) 1. 661/Ahd/2023 2016-17 Oriental Enterprise The ACIT Pvt.Ltd. Circle…

Oriental Enterprise Private Limited, Vadodara vs. The ACIT, Circle-2(1)(2), Vadodara

ITA 661/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad27 Aug 2024AY 2016-17

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

For Appellant: Shri Vartik Chokshi, ARFor Respondent: Shri Ashok Natha Bhalekar, Sr.DR
Section 143(3)Section 36(1)(va)Section 37

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद "यायपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण अहमदाबाद "यायपीठ अहमदाबाद "यायपीठ“ए“, अहमदाबाद। अहमदाबाद "यायपीठ अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD सु"ी सु"च"ा का"बले,"या"यक सद"य एवं "ीमकरंद वसंत महादेवकर, लेखा सद"य के सम"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER Sl. आयकरअपील सं/ "नधा"रण वष"/ Appeal(s) by : No(s) ITA No(s) Assess- अपीलाथ" /""यथ" / ment Appellant बनाम/vs.Respondent Year(s) 1. 661/Ahd/2023 2016-17 Oriental Enterprise The ACIT Pvt.Ltd. Circle…

Monica Gold Pipes Private Limited, Khasra No vs. Income Tax Officer, Ward 16(2), C R Building

In the result, appeals of the assessee are allowed

ITA 3792/DEL/2023[2014-15]Status: DisposedITAT Delhi21 Aug 2024AY 2014-15

Bench: Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A Nos.3791 & 3792/Del/2023 िनधा"रणवष"/Assessment Years: 2013-14 & 2014-15

Section 11Section 119Section 119(2)(b)Section 260A

…is no justification in making any interest disallowance u/s 9 I.T.A.Nos.3791 & 3792/Del/2023 36(1)(iii) of the Act. Ld. Counsel for the assessee placing reliance on the decision of the Hon’ble Supreme Court in the case of CIT Vs. Reliance Industries Ltd. (410 ITR 466) submits that if the assessee has sufficient interest free funds available with it for making interest free advances to subsidiaries there cannot be any interest disallowance u/s 36(1)(iii) of the Act on the ground that interest would not have been payable to banks if funds were not provided to the subsidiaries. Reliance was also placed on th…

Monica Gold Pipes Private Limited, Khasra No vs. Income Tax Officer, Ward 16(2), C R Building

In the result, appeals of the assessee are allowed

ITA 3791/DEL/2023[2013-14]Status: DisposedITAT Delhi21 Aug 2024AY 2013-14

Bench: Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A Nos.3791 & 3792/Del/2023 िनधा"रणवष"/Assessment Years: 2013-14 & 2014-15

Section 11Section 119Section 119(2)(b)Section 260A

…is no justification in making any interest disallowance u/s 9 I.T.A.Nos.3791 & 3792/Del/2023 36(1)(iii) of the Act. Ld. Counsel for the assessee placing reliance on the decision of the Hon’ble Supreme Court in the case of CIT Vs. Reliance Industries Ltd. (410 ITR 466) submits that if the assessee has sufficient interest free funds available with it for making interest free advances to subsidiaries there cannot be any interest disallowance u/s 36(1)(iii) of the Act on the ground that interest would not have been payable to banks if funds were not provided to the subsidiaries. Reliance was also placed on th…

Pragati Power Corporation Ltd, New Delhi vs. ACIT, Circle 20(1), New Delhi

In the result, the appeal filed by the assessee is partly allowed as indicated above

ITA 1617/DEL/2023[2018-19]Status: DisposedITAT Delhi14 Aug 2024AY 2018-19

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI SUDHIR PAREEK (Judicial Member)

Section 115JSection 145(2)Section 32Section 36Section 36(1)(iii)Section 37Section 43ASection 46ASection 80I

…l of funds then also it is a settled proposition of law that no disallowance u/s 36(1)(iii) of the Act can be made where interest free owned funds are sufficient to make such investment. Hon'ble Apex Court in the case of CIT vs Reliance Industries Ltd. (2019) 410 ITR 466 (SC) have held that in view of finding recorded by the Tribunal that interest free funds available to the assessee were sufficient to meet its investment. It is to be presumed that the investments were made from the interest free funds available with the assessee. Pragati Power Corporation vs. ACIT vi) Bombay High Court in the case of CIT vs Rel…

ACIT, New Delhi vs. Shri Bhawan Mohan Garg, New Delhi

In the result, the appeal of the revenue is dismissed

ITA 2624/DEL/2017[2011-12]Status: DisposedITAT Delhi13 Aug 2024AY 2011-12

Bench: Sh. S. Rifaur Rahman & Sh. Sudhir Kumarassessment Year: 2011-12 Acit Vs Bhawan Mohan Garg Circle – 32 (1) C-16, Green Park New Delhi Extension, New Delhi Pan No.Aahpg2084K (Appellant) (Respondent)

Section 143(2)Section 143(3)Section 145Section 195Section 40Section 40t

…1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI BEFORE SH. S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SH. SUDHIR KUMAR, JUDICIAL MEMBER Assessment Year: 2011-12 ACIT Vs Bhawan Mohan Garg Circle – 32 (1) C-16, Green Park New Delhi Extension, New Delhi PAN No.AAHPG2084K (APPELLANT) (RESPONDENT) Appellants by Sh. Kanv Bali, Sr. DR Respondent by Sh. VK Bindal, CA Sh.Saurabh Sharma, Advocate Ms. Rinki Sharma, ITP Date of hearing: 16/07/2024 Date of Pronouncement: 13/08/2024 ORDER PER SUDHIR KUMAR, JM: This appeal by the revenue is directed against the order of the Commissioner of Income Tax (Ap…

Intas Biopharmaceuticals Ltd., Ahmedabad vs. The Dy.Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad

In the result, appeal preferred by the assessee is allowed in part

ITA 865/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad07 Aug 2024AY 2011-12

Bench: Ms. Suchitra Kamble, Judical Member & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. No. 865/Ahd/2016 (िनधा"रण वष" िनधा"रण वष" / Assessment Year : 2011-12) िनधा"रण वष" िनधा"रण वष" Intas The Dy. Commissioner Of बनाम बनाम/ बनाम बनाम Biopharmaceuticals Ltd. Income Tax Vs. Plot 423/P/A, Sarkhej Circle-2(1)(1), Ahmedabad Bavla Highway, Moraiya, Sanand, Ahmedabad, Gujarat, 382213 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabci4722M (Appellant) .. (Respondent) Shri Bandish Soparkar & Shri Parin अपीलाथ" ओर से /Appellant By : Shah, Ars. ""यथ" क" ओर से/Respondent By : Dr. Darsi Suman Ratnam, Cit. Dr & Shri Ashish Rajesh Revar, Sr. Dr Date Of Hearing 24/07/2024 Date Of Pronouncement 07/08/2024 O R D E R Per Shri Narendra Prasad Sinha, Am: This Appeal Is Filed By The Assessee Against The Order Of The Commissioner Of Income-Tax (Appeals)-7, Ahmedabad (In Short ‘The Cit(A)’) Dated 20.01.2016 For The Assessment Year 2011-12. Ita No. 865/Ahd/2016 [Intas Biopharmaceuticals Ltd. Vs. Dcit] A.Y. 2011-12 - 2 –

For Appellant: Shah, ARsFor Respondent: Dr. Darsi Suman Ratnam, CIT. DR
Section 143(3)Section 35Section 40

…Rs.547 crores during the year under consideration which was more than the total CWIP as on 31/03/2013.” Also the judicial proposition in this regard also stands settled by the decision of the Hon’ble Apex Court in the case of CIT Vs. Reliance Industries Ltd., 410 ITR 466(SC) holding that where mixed funds are available and where sufficient interest free funds are there the presumption is that the same were used for the purpose of making interest free investments, calling for no disallowance under section 36(1)(iii) of the Act. The Ld.DR was unable to point out any subsequent decision of the Hon’ble apex court uns…

The DCIT, Central Circle-1(1), Ahmedabad vs. Shri Umang H. Thakkar, Ahmedabad

In the result, the appeal filed by the assessee bearing ITA No

ITA 2548/AHD/2008[2005-06]Status: DisposedITAT Ahmedabad30 Jul 2024AY 2005-06

Bench: Mrs. Annapurna Gupta & Shri T.R. Senthil Kumarआयकर अपील सं / Ita No. 2150/Ahd/2008 िनधा"रण वष"/Assessment Year: 2005-06 बनाम Shri Umang Hiralal Thakkar, The Dy. Commissioner Of Vs. Dharmadev House, Income-Tax, Shyamal Cross Road, Satellite, Central Circle 1(1), Ahmedabad – 380015 Ahmedabad Pan : Aavpt 8621 R आयकर अपील सं / Ita No. 2548/Ahd/2008 िनधा"रणवष"/Assessment Year: 2005-06 बनाम Shri Umang Hiralal Thakkar, The Dy. Commissioner Of Vs. 305, Sahajanand Plaza, Bhatta Income-Tax, Ch Ar Rasta, Paldi, Ahmedabad Central Circle 1(1), Pan : Aavpt 8621 R Ahmedabad अपीलाथ"/ (Appellant) अपीलाथ" "" यथ" "" यथ"/ (Respondent) अपीलाथ" अपीलाथ" "" "" यथ" यथ" िनधा"रती की ओर से / Assessee By : Shri Bandish Soparkar, Ar & Shri Parin Shah, Ar ""थ" की ओर से / Revenue By : Shri Akhilendra Pratap Yadav, Cit-Dr तारीख/Date Of Hearing : 09.05.2024 सुनवाई क" क" तारीख सुनवाई सुनवाई सुनवाई क" क" तारीख तारीख घोषणा क" क" तारीख तारीख /Date Of Pronouncement: 30.07.2024 घोषणा घोषणा घोषणा क" क" तारीख तारीख आदेश आदेश/O R D E R आदेश आदेश

For Appellant: Shri Bandish Soparkar, AR &For Respondent: Shri Akhilendra Pratap Yadav, CIT-DR
Section 132Section 143(2)Section 250(6)

…the proposition of law settled in this regard that no disallowance is called for where sufficient own interest free funds are available for making interest free advances, as laid down by the Hon’ble Apex Court in the case of CIT Vs. Reliance Industries Ltd., 410 ITR 466 (SC). 8.5 The ld. DR was unable to distinguish the decision of the ITAT in AY 2004-05 – both the facts and on law. In view of the same, we concur with the ld. Counsel for the assessee that the issue stands squarely covered by the order of the ITAT in the assessee’s own case for AY 2004-05, following which we hold that the disallowance made by th…

Shri Umang Hiralal Thakkar, Ahmedabad vs. The Dy.CIT., Cent.Circle-1(1), Ahmedabad

In the result, the appeal filed by the assessee bearing ITA No

ITA 2150/AHD/2008[2005-06]Status: DisposedITAT Ahmedabad30 Jul 2024AY 2005-06

Bench: Mrs. Annapurna Gupta & Shri T.R. Senthil Kumarआयकर अपील सं / Ita No. 2150/Ahd/2008 िनधा"रण वष"/Assessment Year: 2005-06 बनाम Shri Umang Hiralal Thakkar, The Dy. Commissioner Of Vs. Dharmadev House, Income-Tax, Shyamal Cross Road, Satellite, Central Circle 1(1), Ahmedabad – 380015 Ahmedabad Pan : Aavpt 8621 R आयकर अपील सं / Ita No. 2548/Ahd/2008 िनधा"रणवष"/Assessment Year: 2005-06 बनाम Shri Umang Hiralal Thakkar, The Dy. Commissioner Of Vs. 305, Sahajanand Plaza, Bhatta Income-Tax, Ch Ar Rasta, Paldi, Ahmedabad Central Circle 1(1), Pan : Aavpt 8621 R Ahmedabad अपीलाथ"/ (Appellant) अपीलाथ" "" यथ" "" यथ"/ (Respondent) अपीलाथ" अपीलाथ" "" "" यथ" यथ" िनधा"रती की ओर से / Assessee By : Shri Bandish Soparkar, Ar & Shri Parin Shah, Ar ""थ" की ओर से / Revenue By : Shri Akhilendra Pratap Yadav, Cit-Dr तारीख/Date Of Hearing : 09.05.2024 सुनवाई क" क" तारीख सुनवाई सुनवाई सुनवाई क" क" तारीख तारीख घोषणा क" क" तारीख तारीख /Date Of Pronouncement: 30.07.2024 घोषणा घोषणा घोषणा क" क" तारीख तारीख आदेश आदेश/O R D E R आदेश आदेश

For Appellant: Shri Bandish Soparkar, AR &For Respondent: Shri Akhilendra Pratap Yadav, CIT-DR
Section 132Section 143(2)Section 250(6)

…the proposition of law settled in this regard that no disallowance is called for where sufficient own interest free funds are available for making interest free advances, as laid down by the Hon’ble Apex Court in the case of CIT Vs. Reliance Industries Ltd., 410 ITR 466 (SC). 8.5 The ld. DR was unable to distinguish the decision of the ITAT in AY 2004-05 – both the facts and on law. In view of the same, we concur with the ld. Counsel for the assessee that the issue stands squarely covered by the order of the ITAT in the assessee’s own case for AY 2004-05, following which we hold that the disallowance made by th…

ITO, Cw-1(1), Chennai vs. Inspirisys Solutions Ltd, Kilpauk

The appeals of the Revenue stand dismissed

ITA 9/CHNY/2022[2012-13]Status: DisposedITAT Chennai26 Jul 2024AY 2012-13

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.9,10 & 11/Chny/2022 (िनधा"रणवष" / Assessment Years: 2012-13, 2014-15 & 2015-2016) & C.O.Nos.5, 6 &7/Chny/2023 (In Ita Nos.9,10 & 11/Chny/2022) The Income Tax Officer, Vs. M/S. Inspirisys Solutions Limited, Corporate Ward 1(1) First Floor, New Door Nos. 57,59,63 & 64, Chennai 600 034. Dowlath Towers, Taylors Road, Kilpauk, Chennai 600 010. [Pan: Aaaca 5622M] (अपीलाथ"/Appellant) (Respondent/ Cross Objector) Department By : Shri. Nilay Baran Som, Irs, Cit. Shri. Arv Srinivasan, Irs, Addl. Cit Assessee By : Shri. N.V. Balaji, Advocate सुनवाई क" तार"ख/Date Of Hearing : 20.06.2024 घोषणा क" तार"ख /Date Of Pronouncement : 26.07.2024

For Appellant: Shri. N.V. Balaji, AdvocateFor Respondent: Shri. Nilay Baran Som, IRS, CIT
Section 14ASection 253

…utstanding advances have come down and during AY 2015-16, no new advances were given and the existing outstanding advances have further come down. Reliance was placed on the judgement of the Hon'ble Supreme Court in the case of CIT v. Reliance Industries Ltd. 410 ITR 466. Further, reliance is placed on the judgement of the High Court of Punjab and Haryana in CIT v. Max India Ltd. 398 ITR 209 b) The interest free advances were given out of commercial expediency The assessee had given the advances to M/s. Accel IT Resources Limited and M/s. Inspirisys Solutions DMCC (formerly M/s. Accel 28 ITA Nos.9-11/Chny/2022…

ITO, Cw-1(1), Chennai vs. Inspirisys Solutions Ltd, Chennai

The appeals of the Revenue stand dismissed

ITA 11/CHNY/2022[2015-16]Status: DisposedITAT Chennai26 Jul 2024AY 2015-16

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.9,10 & 11/Chny/2022 (िनधा"रणवष" / Assessment Years: 2012-13, 2014-15 & 2015-2016) & C.O.Nos.5, 6 &7/Chny/2023 (In Ita Nos.9,10 & 11/Chny/2022) The Income Tax Officer, Vs. M/S. Inspirisys Solutions Limited, Corporate Ward 1(1) First Floor, New Door Nos. 57,59,63 & 64, Chennai 600 034. Dowlath Towers, Taylors Road, Kilpauk, Chennai 600 010. [Pan: Aaaca 5622M] (अपीलाथ"/Appellant) (Respondent/ Cross Objector) Department By : Shri. Nilay Baran Som, Irs, Cit. Shri. Arv Srinivasan, Irs, Addl. Cit Assessee By : Shri. N.V. Balaji, Advocate सुनवाई क" तार"ख/Date Of Hearing : 20.06.2024 घोषणा क" तार"ख /Date Of Pronouncement : 26.07.2024

For Appellant: Shri. N.V. Balaji, AdvocateFor Respondent: Shri. Nilay Baran Som, IRS, CIT
Section 14ASection 253

…utstanding advances have come down and during AY 2015-16, no new advances were given and the existing outstanding advances have further come down. Reliance was placed on the judgement of the Hon'ble Supreme Court in the case of CIT v. Reliance Industries Ltd. 410 ITR 466. Further, reliance is placed on the judgement of the High Court of Punjab and Haryana in CIT v. Max India Ltd. 398 ITR 209 b) The interest free advances were given out of commercial expediency The assessee had given the advances to M/s. Accel IT Resources Limited and M/s. Inspirisys Solutions DMCC (formerly M/s. Accel 28 ITA Nos.9-11/Chny/2022…

ITO, Cw-1(1), Chennai vs. Inspirisys Solutions Limited, Chennai

The appeals of the Revenue stand dismissed

ITA 10/CHNY/2022[2014-15]Status: DisposedITAT Chennai26 Jul 2024AY 2014-15

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.9,10 & 11/Chny/2022 (िनधा"रणवष" / Assessment Years: 2012-13, 2014-15 & 2015-2016) & C.O.Nos.5, 6 &7/Chny/2023 (In Ita Nos.9,10 & 11/Chny/2022) The Income Tax Officer, Vs. M/S. Inspirisys Solutions Limited, Corporate Ward 1(1) First Floor, New Door Nos. 57,59,63 & 64, Chennai 600 034. Dowlath Towers, Taylors Road, Kilpauk, Chennai 600 010. [Pan: Aaaca 5622M] (अपीलाथ"/Appellant) (Respondent/ Cross Objector) Department By : Shri. Nilay Baran Som, Irs, Cit. Shri. Arv Srinivasan, Irs, Addl. Cit Assessee By : Shri. N.V. Balaji, Advocate सुनवाई क" तार"ख/Date Of Hearing : 20.06.2024 घोषणा क" तार"ख /Date Of Pronouncement : 26.07.2024

For Appellant: Shri. N.V. Balaji, AdvocateFor Respondent: Shri. Nilay Baran Som, IRS, CIT
Section 14ASection 253

…utstanding advances have come down and during AY 2015-16, no new advances were given and the existing outstanding advances have further come down. Reliance was placed on the judgement of the Hon'ble Supreme Court in the case of CIT v. Reliance Industries Ltd. 410 ITR 466. Further, reliance is placed on the judgement of the High Court of Punjab and Haryana in CIT v. Max India Ltd. 398 ITR 209 b) The interest free advances were given out of commercial expediency The assessee had given the advances to M/s. Accel IT Resources Limited and M/s. Inspirisys Solutions DMCC (formerly M/s. Accel 28 ITA Nos.9-11/Chny/2022…

Sundaram Fasteners Limited, Chennai vs. DCIT Corporate Circle 6(2), Chennai

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

ITA 3236/CHNY/2017[2013-14]Status: DisposedITAT Chennai26 Jul 2024AY 2013-14

Bench: Shri Aby T. Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita No.3236/Chny/2017 िनधा"रण वष"/Assessment Year: 2013-14 V. M/S.Sundram Fasteners Ltd., The Dcit, 98-A, 7Th Floor, Corporate Circle-6(2), Dr.Radhakrishnan Salai, Chennai. Mylapore, Chennai-600 004. [Pan: Aaacs 8779 D] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Vikaram VijayaraghavanFor Respondent: Shri A. Sasikumar, CIT

…आयकर अपीलीय अिधकरण, ’डी’ "यायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI "ी एबी टी. वक", "ाियक सद" एवं एवं एवं एवं "ी अिमताभ शु"ा, लेखा सद" के सम" BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3236/Chny/2017 िनधा"रण वष"/Assessment Year: 2013-14 v. M/s.Sundram Fasteners Ltd., The DCIT, 98-A, 7th Floor, Corporate Circle-6(2), Dr.Radhakrishnan Salai, Chennai. Mylapore, Chennai-600 004. [PAN: AAACS 8779 D] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant by : Shri Vikaram Vijayaraghavan, Advocate ""यथ" क" ओर से /R…

ITO, New Delhi vs. M/S Ansal Housing & Construction Ltd., New Delhi

In the result, the cross-objection filed by the assessee is dismissed

ITA 2731/DEL/2010[2007-08]Status: DisposedITAT Delhi26 Jul 2024AY 2007-08

Bench: Shri G.S.Pannu & Shri Kul Bharat[Assessment Year : 2007-08] Dcit, Vs Ansal Housing & Construction Ltd., Central Circle-20, Ugf-15, Indraprastha Building, 21, New Delhi. Barakhamba Road, New Delhi. Pan-Aaaca0377R Appellant Respondent

Section 143(3)Section 14ASection 80Section 80I

…hat investment in shares/ securities capable of yielding tax exempt income had been made out of interest-free funds available with the assessee: - South Indian Bank Ltd. & Others v. CIT: Civil Appeal No. 9606 of 2011(SC) - CIT vs. Reliance Industries Limited: 410 ITR 466 (SC) - East India Pharmaceutical Works Ltd. v. CIT: 224 ITR 627 (SC) - Indian Explosives Ltd. V. CIT: 147 ITR 392 (Cal.) - Woolcombers of India Ltd. v. CIT: 134 ITR 219 (Cal.) - approved by Supreme Court in the case of East India - Pharmaceutical Works Ltd. v. CIT: 224 ITR 627 - CIT v. Reliance Utilities and Power Ltd.: 313 ITR 340 (Bom.) - CIT v…

Zodiac Ventures Ltd, Mumbai vs. Income Tax Officer Ward 1(3)(4), Mumbai

In the result, appeal filed by the assessee is allowed in the above terms

ITA 4754/MUM/2023[2016-17]Status: DisposedITAT Mumbai18 Jun 2024AY 2016-17

Bench: Ms. Padmavathy S & Shri. Raj Kumar Chauhanzodiac Ventures Ltd. Vs. Income Tax Officer Ward 404, Dev Plaza, 68, S.V. Road, 11(3)(4) Andheri West, Mumbai – Aayakar Bhawan, Maharshi 400058. Karve Road, Mumbai- Pan: Aafps7328J 400020. (Appellant) (Respondent)

Section 14ASection 250

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI BEFORE MS. PADMAVATHY S, ACCOUNTANT MEMBER AND SHRI. RAJ KUMAR CHAUHAN, JUDICIAL MEMBER Zodiac Ventures Ltd. Vs. Income Tax Officer Ward 404, Dev Plaza, 68, S.V. Road, 11(3)(4) Andheri West, Mumbai – Aayakar Bhawan, Maharshi 400058. Karve Road, Mumbai- PAN: AAFPS7328J 400020. (Appellant) (Respondent) Assessee Represented by : Shri. S. C. Tiwari Department Represented by : Shri. Mahesh Parwani Sr.AR Date of conclusion of Hearing : 03.06.2024 Date of Pronouncement : 18.06.2024 O R D E R PER RAJ KUMAR CHAUHAN (J.M.): 1. This present appeal is directed a…

Beacon Higher Education Services Pvt Ltd, New Delhi vs. DCIT Circle-4(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 1748/DEL/2019[2012-13]Status: DisposedITAT Delhi14 Jun 2024AY 2012-13

Bench: Shri Saktijit Dey, Hon’Ble & Shri M. Balaganeshm/S. Beacon Higher Education Vs. Dcit, Services Pvt. Ltd, Circle-4(2), S-40, 2Nd Floor, Vasant Square Delhi Mall, Plot No. A, Sector-B, Vasant Kunj, New Delhi (Appellant) (Respondent) Pan:Aaecb1283F

For Appellant: Shri V. K. Agarwal, ARFor Respondent: Shri Kanv Bali, Sr. DR
Section 143(3)Section 36(1)(iii)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”: NEW DELHI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER M/s. Beacon Higher Education Vs. DCIT, Services Pvt. Ltd, Circle-4(2), S-40, 2nd Floor, Vasant Square Delhi Mall, Plot No. A, Sector-B, Vasant Kunj, New Delhi (Appellant) (Respondent) PAN:AAECB1283F Assessee by : Shri V. K. Agarwal, AR Ms. Shweta Bansal, CA Revenue by: Shri Kanv Bali, Sr. DR Date of Hearing 28/03/2024 Date of pronouncement 14/06/2024 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.1748/Del/2019 for AY 2012-13, arises out of the order of…

Ind Swift Laboratories Ltd., Chandigarh vs. DCIT, Circle 1(1), Chandigarh

In the result, the appeal is allowed, as indicated

ITA 350/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh04 Jun 2024AY 2017-18

Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri T.N.Singla, C.AFor Respondent: Shri Rohit Sharma, CIT-DR
Section 250Section 35Section 35(1)Section 35(1)(i)Section 35(2)

…borrowed money to a subsidiary and the same is used by the subsidiary for some business purposes, the assessee would ordinarily be entitled to deduction of interest on its borrowed loans. 50. In ‘Commissioner of Income Tax Vs M/s Reliance Industries Ltd.’ 410 ITR 466 (S.C.), the ground of appeal raised by the Revenue before the Apex Court was : ITA 350/CHD/2023 A.Y. 2017-18 61 "Whether the high court is correct in holding that interest amount being interest referable to funds given to subsidiaries is allowable as deduction u/s 36(l)(iii), when the interest would not have been payable to banks, if funds wer…

Addl.CIT, Special Range-3, New Delhi vs. Escorts Ltd., Faridabad

In the result, Revenue’s appeal is dismissed

ITA 6191/DEL/2018[2004-05]Status: DisposedITAT Delhi31 May 2024AY 2004-05

Bench: Shri Saktijit Dey, Vice- & Shri Naveen Chandraassessment Year: 2004-05

Section 36(1)(iii)

…favour of the assessee. Further, he relied upon the following decisions: 1. S.A. Builders Ltd. v. CIT [2007] 288 ITR 1/158 Taxman 74 (SC); 2. South Indian Bank Ltd. vs. CIT (Civil Appeal No. 9606 of 2011)(SC); 3. CIT(LTU) vs. Reliance Industries Ltd. (2019) 410 ITR 466 (SC); 4. Hero Cycles (P.) Ltd. v. CIT [2015] 379 ITR 347/63 taxmann.com 308/ [2016] 236 Taxman 447 (SC); 5. Munjal Sales Corpn. v. CIT [2008] 298 ITR 298/168 Taxman 43 (SC); 6. Principal Commissioner of Income-tax v. Basti Sugar Mills Co. Ltd. [2018] 98 taxmann.com 401 (Delhi); 7. Principal Commissioner of Income-tax v. Reebok India Company [2018…

Escorts Ltd., Faridabad vs. Addl.CIT, Special Range-3, New Delhi

In the result, Revenue’s appeal is dismissed

ITA 5552/DEL/2018[2004-05]Status: DisposedITAT Delhi31 May 2024AY 2004-05

Bench: Shri Saktijit Dey, Vice- & Shri Naveen Chandraassessment Year: 2004-05

Section 36(1)(iii)

…favour of the assessee. Further, he relied upon the following decisions: 1. S.A. Builders Ltd. v. CIT [2007] 288 ITR 1/158 Taxman 74 (SC); 2. South Indian Bank Ltd. vs. CIT (Civil Appeal No. 9606 of 2011)(SC); 3. CIT(LTU) vs. Reliance Industries Ltd. (2019) 410 ITR 466 (SC); 4. Hero Cycles (P.) Ltd. v. CIT [2015] 379 ITR 347/63 taxmann.com 308/ [2016] 236 Taxman 447 (SC); 5. Munjal Sales Corpn. v. CIT [2008] 298 ITR 298/168 Taxman 43 (SC); 6. Principal Commissioner of Income-tax v. Basti Sugar Mills Co. Ltd. [2018] 98 taxmann.com 401 (Delhi); 7. Principal Commissioner of Income-tax v. Reebok India Company [2018…

Express Publications (Madurai)Private Ltd., Chennai vs. DCIT, Company Circle-II(1), Chennai

In the result, the appeal stands partly allowed

ITA 805/CHNY/2023[2014-15]Status: DisposedITAT Chennai07 May 2024AY 2014-15

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita No.805/Chny/2023 (िनधा"रणवष" / Assessment Year: 2014-15) Express Publications (Madurai) P. Ltd, Vs. Dcit No.29, Express Garden, Company Circle Ii (1) Second Main Road Industrial Estate, Now Corporate Circle 2 (1) Ambattur, Chennai 600 058. Chennai 600 034. [Pan: Aaaci 0842D] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Ms. Abirami Narendranath, Advocate ""यथ" क" ओर से /Respondent By : Shri Saujanya Ranjan, Irs, Jcit. सुनवाई क" तार"ख/Date Of Hearing : 22.04.2024 घोषणा क" तार"ख /Date Of Pronouncement : 07.05.2024 आदेश / O R D E R Manu Kumar Giri ()

For Appellant: Ms. Abirami Narendranath, AdvocateFor Respondent: Shri Saujanya Ranjan, IRS, JCIT
Section 143(3)Section 14ASection 36(1)(iii)Section 40Section 40a

…e that interest bearing funds were diverted to group companies. The assessee also relied on the decision of Hon’ble Supreme Court in the case of M/s S.A. Builders Limited vs. CIT (2007) 288 ITR 1 (SC); the decision CIT (LTU) vs. Reliance Industries Ltd (2019) 410 ITR 466 (SC); & the decision of Hon’ble Madras High Court in CIT vs. Hotel Savera (1999) 239 ITR 795 (Mad). The assessee emphasize that in a case where the assessee has common funds then in such a case, in the absence of any material to indicate that the assessee has advanced monies out of funds borrowed for business purposes, the presumption would be th…