CIT v. Reliance Utilities & Power Ltd.

313 ITR 340High Court2009#10 most cited

What is CIT v. Reliance Utilities & Power Ltd. authority for?

Where an assessee claims that investments were made out of own funds, interest disallowance under Section 14A read with Rule 8D may not apply if the assessee demonstrates the availability of sufficient interest-free funds to cover such investments.

2,118

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2013 to 2026.

Also referred to as

CIT v. Reliance Utilities and Power Ltd. · Section 14A · Rule 8D · interest free advances · disallowance of interest expenditure · own funds · interest-free funds

Also reported as

178 Taxmann 13513 DTR 237178 Taxmann.com 135284 CTR 414

Sections most often in play

Section 14ASection 36(1)(iii)Section 143(3)Section 115JBSection 8DSection 10(34)Section 143(2)Section 37(1)

Issues it is cited on

interest free advancesdisallowance of interest expendituresection 36(1)(iii)disallowance under section 14acommercial expediencydisallowance u/s 14asection 14abook profitssection 115jsection 36(1)section 36section 115jb

Judgments citing CIT v. Reliance Utilities & Power Ltd.

DCIT Cen Cir 14, Mumbai vs. Omprakash B. Goenka, Mumbai

In the result, appeals of the revenue are dismissed, whereas appeals of the assessee are allowed for statistical purposes

ITA 2027/MUM/2013[2005-06]Status: DisposedITAT Mumbai23 Dec 2015AY 2005-06

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.2027 To 2032/Mum/2013 (नििाारण वषा / Assessment Years :2005-2006 To 2010-2011) Dcit, Central Circle-14, Mumbai- Vs. Shri Omprakash B. 400020 Goenka, 101, Somerset House, Sophia College Lane, Warden Road, Mumbai-400026 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aecpg 3854 J (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita Nos.1895 & 1921/Mum/2013 (नििाारण वषा / Assessment Years :2008-2009 & 2010-2011) Shri Omprakash B. Goenka, Vs. Acit, Central Circle-14, 101, Somerset House, Mumbai-400020 Sophia College Lane, Warden Road, Mumbai- 400026 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aecpg 3854 J (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri Deepkant Prasad ननधाारयती की ओर से /Assessee By : Shri Hiro Rai सुनवाई की तायीख / Date Of Hearing : 07/10/2015 घोषणा की तायीख/Date Of Pronouncement 23/12/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Cross Appeals Filed By The Revenue & Assessee Against The Order Of Cit(A), Mumbai, For The Assessment Years 2005-06 To 2010-2011, In The Matter Of Order Passed U/S.143(3) Of The I.T.Act.

For Appellant: Shri Hiro RaiFor Respondent: Shri Deepkant Prasad
Section 132Section 139(1)Section 139(5)Section 143(3)Section 153ASection 33A

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ ‘सी’, म ुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH, JM आमकय अऩीर सं./ITA Nos.2027 to 2032/Mum/2013 (नििाारण वषा / Assessment Years :2005-2006 to 2010-2011) DCIT, Central Circle-14, Mumbai- Vs. Shri Omprakash B. 400020 Goenka, 101, Somerset House, Sophia College Lane, Warden Road, Mumbai-400026 स्थामी रेखा सं./ जीआइआय सं./ PAN/GIR No. : AECPG 3854 J (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. AND आमकय अऩीर सं./ITA Nos.1895 & 1921/Mum/2013 (नििाारण वषा / Assessment Years :2008-2009 & 2010-2011) Shri Ompraka…

Omprakash Basantlal Goenka, Mumbai vs. ACIT Cen Cir 14, Mumbai

In the result, appeals of the revenue are dismissed, whereas appeals of the assessee are allowed for statistical purposes

ITA 1921/MUM/2013[2010-11]Status: DisposedITAT Mumbai23 Dec 2015AY 2010-11

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.2027 To 2032/Mum/2013 (नििाारण वषा / Assessment Years :2005-2006 To 2010-2011) Dcit, Central Circle-14, Mumbai- Vs. Shri Omprakash B. 400020 Goenka, 101, Somerset House, Sophia College Lane, Warden Road, Mumbai-400026 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aecpg 3854 J (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita Nos.1895 & 1921/Mum/2013 (नििाारण वषा / Assessment Years :2008-2009 & 2010-2011) Shri Omprakash B. Goenka, Vs. Acit, Central Circle-14, 101, Somerset House, Mumbai-400020 Sophia College Lane, Warden Road, Mumbai- 400026 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aecpg 3854 J (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri Deepkant Prasad ननधाारयती की ओर से /Assessee By : Shri Hiro Rai सुनवाई की तायीख / Date Of Hearing : 07/10/2015 घोषणा की तायीख/Date Of Pronouncement 23/12/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Cross Appeals Filed By The Revenue & Assessee Against The Order Of Cit(A), Mumbai, For The Assessment Years 2005-06 To 2010-2011, In The Matter Of Order Passed U/S.143(3) Of The I.T.Act.

For Appellant: Shri Hiro RaiFor Respondent: Shri Deepkant Prasad
Section 132Section 139(1)Section 139(5)Section 143(3)Section 153ASection 33A

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ ‘सी’, म ुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH, JM आमकय अऩीर सं./ITA Nos.2027 to 2032/Mum/2013 (नििाारण वषा / Assessment Years :2005-2006 to 2010-2011) DCIT, Central Circle-14, Mumbai- Vs. Shri Omprakash B. 400020 Goenka, 101, Somerset House, Sophia College Lane, Warden Road, Mumbai-400026 स्थामी रेखा सं./ जीआइआय सं./ PAN/GIR No. : AECPG 3854 J (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. AND आमकय अऩीर सं./ITA Nos.1895 & 1921/Mum/2013 (नििाारण वषा / Assessment Years :2008-2009 & 2010-2011) Shri Ompraka…

Omprakash Basantlal Goenka, Mumbai vs. ACIT Cen Cir 14, Mumbai

In the result, appeals of the revenue are dismissed, whereas appeals of the assessee are allowed for statistical purposes

ITA 1895/MUM/2013[2008-09]Status: DisposedITAT Mumbai23 Dec 2015AY 2008-09

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आमकय अऩीर सं./Ita Nos.2027 To 2032/Mum/2013 (नििाारण वषा / Assessment Years :2005-2006 To 2010-2011) Dcit, Central Circle-14, Mumbai- Vs. Shri Omprakash B. 400020 Goenka, 101, Somerset House, Sophia College Lane, Warden Road, Mumbai-400026 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aecpg 3854 J (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita Nos.1895 & 1921/Mum/2013 (नििाारण वषा / Assessment Years :2008-2009 & 2010-2011) Shri Omprakash B. Goenka, Vs. Acit, Central Circle-14, 101, Somerset House, Mumbai-400020 Sophia College Lane, Warden Road, Mumbai- 400026 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aecpg 3854 J (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri Deepkant Prasad ननधाारयती की ओर से /Assessee By : Shri Hiro Rai सुनवाई की तायीख / Date Of Hearing : 07/10/2015 घोषणा की तायीख/Date Of Pronouncement 23/12/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Cross Appeals Filed By The Revenue & Assessee Against The Order Of Cit(A), Mumbai, For The Assessment Years 2005-06 To 2010-2011, In The Matter Of Order Passed U/S.143(3) Of The I.T.Act.

For Appellant: Shri Hiro RaiFor Respondent: Shri Deepkant Prasad
Section 132Section 139(1)Section 139(5)Section 143(3)Section 153ASection 33A

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ ‘सी’, म ुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH, JM आमकय अऩीर सं./ITA Nos.2027 to 2032/Mum/2013 (नििाारण वषा / Assessment Years :2005-2006 to 2010-2011) DCIT, Central Circle-14, Mumbai- Vs. Shri Omprakash B. 400020 Goenka, 101, Somerset House, Sophia College Lane, Warden Road, Mumbai-400026 स्थामी रेखा सं./ जीआइआय सं./ PAN/GIR No. : AECPG 3854 J (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. AND आमकय अऩीर सं./ITA Nos.1895 & 1921/Mum/2013 (नििाारण वषा / Assessment Years :2008-2009 & 2010-2011) Shri Ompraka…

M/S. Amit Kumar (HUF), Meerut vs. ITO, Meerut

In the result, the appeal of the assessee is allowed

ITA 5280/DEL/2014[2009-10]Status: DisposedITAT Delhi22 Dec 2015AY 2009-10

Bench: The Cit (A) Who, In Turn, Rejected The Contention Of The Assessee That It Has More Non-Interest Bearing Funds Available With It Than Interest Free Advances To The Parties. The Cit (A) Confirmed The Disallowance.

For Appellant: Shri Ravindra &For Respondent: Sh.Sheodan Singh Bhadoria, Sr.DR
Section 36(1)Section 36(1)(iii)

…firm in which the assessee is a partner. On reading of the assessment order, it is apparent that the AO has not established any nexus between the interest bearing funds and non-interest 4 ITA No.5280/Del./2014 bearing advances. Hon’ble Bombay High Court in 313 ITR 340 has held as under: “10. If there be interest-free funds available to an assessee sufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest- free funds available. In our opinion the Supreme Court in East India Pharmaceutical Works Ltd.’s case (supra) had th…

Arun Kumar Gupta (HUF), New Delhi vs. ACIT, New Delhi

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

ITA 871/DEL/2012[2008-09]Status: DisposedITAT Delhi22 Dec 2015AY 2008-09

Bench: Shri J.S. Reddy & Shri A.T. Varkey

For Appellant: Shri Rajeev Saxena, AdvocateFor Respondent: Shri K.K. Jaiswal, Senior DR
Section 142Section 143Section 37(1)

…ns the case of the department. Since the amount advanced is only Rs.3,97,078/- and when the proprietor’s capital fund is Rs.59,51,857/- applying the principles laid down by Hon’ble Bombay High Court in CIT vs. Reliance Utilities and Power Limited reported in 313 ITR 340 (Bom.), we are inclined to accept the contention of the assessee and delete the addition of Rs.47,650/- towards estimated interest on advance given. We order accordingly. 6 10. Ground Nos.3 & 4 are against the rejection of the claim of the assessee that the payment made to MCD amounting to Rs4,67,950/-, towards registration, conversion and par…

S.R. Brothers, Mumbai vs. Addl.C.I.T. 19(3), Mumbai

The appeal of the assessee is allowed for statistical purposes, whereas, the appeals of the Revenue are dismissed

ITA 7772/MUM/2012[2009-10]Status: DisposedITAT Mumbai21 Dec 2015AY 2009-10

Bench: Shri Joginder Singh & Shri Ashwani Tanejaassessment Year: 2009-10 M/S S.R. Brothers, Dy. Cit-19(3), 204-205, Balrama, Bandra Room No.305, 3Rd Floor, बनाम/ Kurla Complex, Bandra Piramal Chambers, Parel, Vs. (East), Mumbai-400012 Mumbai-400051 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaafs9880L

Section 10(35)Section 14ASection 14A(3)Section 40

…12, ITA Nos.799 & 6148/Mum/2013 the ld. Assessing Officer to examine the claim of the assessee and make reasonable disallowance, as per law and further in the light of the decisions in the case of CIT vs HDFC Bank and CIT vs Reliance Utilities and Power Ltd. 313 ITR 340 (Bom.). This ground of the assessee is allowed for statistical purposes. 3. Now, we shall take up the appeal in (ITA No.799/Mum/2013), wherein, the only ground pertains to directing the Assessing Officer to delete the addition of Rs.87,12,544/- made u/s 40(a)(i) of the Act by placing reliance upon the decision of the Tribunal in DDIT vs Siemens…

ACIT, New Delhi vs. M/S Sgs Tekniks Pvt. Ltd., New Delhi

In the result, both the appeal of the assessee and the appeal of the revenue

ITA 97/DEL/2010[2006-07]Status: DisposedITAT Delhi21 Dec 2015AY 2006-07

Bench: Shri N.K. Saini & Shri A.T. Varkey

For Appellant: Prof. S. SampathFor Respondent: Shri Sujit Kumar, Senior DR
Section 115JSection 234BSection 80GSection 80I

…far in excess to the amount invested in capital works in progress of Rs.1.86 crores and interest free advance of Rs.2.42 crores. Thus, applying the principles laid down by Hon’ble Bombay High Court in CIT vs. Reliance Utilities and Power Limited reported in 313 ITR 340 (Bom.) and Hon’ble Delhi High Court in the case of CIT vs. Bharti Televenture Ltd. - 331 ITR 502 (Delhi), it is held that there was no diversion of borrowed funds for capital work-in-progress / interest free loan. It is also not a case where either the AO or CIT (A) has identified that any specific borrowing had been utilized for making such i…

M/S. Sgs Tekniks Pvt. Ltd, New Delhi vs. DCIT, New Delhi

In the result, both the appeal of the assessee and the appeal of the revenue

ITA 4571/DEL/2009[2006-07]Status: DisposedITAT Delhi21 Dec 2015AY 2006-07

Bench: Shri N.K. Saini & Shri A.T. Varkey

For Appellant: Prof. S. SampathFor Respondent: Shri Sujit Kumar, Senior DR
Section 115JSection 234BSection 80GSection 80I

…far in excess to the amount invested in capital works in progress of Rs.1.86 crores and interest free advance of Rs.2.42 crores. Thus, applying the principles laid down by Hon’ble Bombay High Court in CIT vs. Reliance Utilities and Power Limited reported in 313 ITR 340 (Bom.) and Hon’ble Delhi High Court in the case of CIT vs. Bharti Televenture Ltd. - 331 ITR 502 (Delhi), it is held that there was no diversion of borrowed funds for capital work-in-progress / interest free loan. It is also not a case where either the AO or CIT (A) has identified that any specific borrowing had been utilized for making such i…

Unigem (India) P.Ltd, Mumbai vs. Asst CIT 5(3), Mumbai

In the result, both the appeals filed by the assessee are treated as allowed for statistical purpose

ITA 1961/MUM/2013[2009-10]Status: DisposedITAT Mumbai16 Dec 2015AY 2009-10

Bench: Shri N.K. Billaiya & Shri Pawan Singhआयकर अपील सं/ I.Ta No. 1961 & 6263/Mum/2013 ("नधा"रण वष" / Assessment Years :2009-10 & 2010-11 बनाम/ M/S. Unigem (India) Pvt. The Acit 5(3), Ltd., Aayakar Bhavan, Vs. 401/402 Prasad Mumbai-400 020 Chambers, "थायी लेखा सं./जीआइआर सं./Pan/Gir No. :Aaacu 0081C (अपीलाथ" /Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant By: Shri Apurva Shah ""यथ" क" ओर से/Respondent By: Shri Pawan Kumar Beerla सुनवाई क" तार"ख / Date Of Hearing :09.12.2015 घोषणा क" तार"ख /Date Of Pronouncement :16.12 .2015 आदेश / O R D E R Per N.K. Billaiya, Am: These Appeals By The Assessee Are Preferred Against To Separate Orders Of The Ld. Cit(A)-9, Mumbai Dated 29.1.2013 & 17.9.2013 Pertaining To Assessment Years 2009-10 & 2010-11. The Grievance In Both These Appeals Is Common & Relates To The Disallowance Made U/S. 14A R.W. Rule 8D. Since The Facts Are Common In Both These Appeals, They Were Heard Together & Disposed Of By This Common Order For The Sake Of Convenience.

For Appellant: Shri Apurva ShahFor Respondent: Shri Pawan Kumar
Section 14A

…e Ld. Counsel that the assessee was having sufficient own funds for making the investments. Strong reliance was placed on the decision 3 ITA. Nos. 1961 & 6263/M/2013 of the Hon’ble High Court of Bombay in the case of CIT Vs Reliance Utilities and Power Ltd. 313 ITR 340. The Ld. Counsel concluded by saying that there is no question of disallowing interest and in so far as administrative expenses are concerned, the assessee itself has suo moto disallowed Rs. 52,985/- being 10% of the exempt income and in addition the assessee has also disallowed Rs. 3,12,064/- out of PMS expenses. Therefore, no further disallowan…

Vinyroyal Plasicoates P.Ltd, Mumbai vs. ITO 9(3)(3), Mumbai

In the result, the appeals filed by the assessee are treated as allowed for statistical purpose

ITA 1240/MUM/2013[2008-09]Status: DisposedITAT Mumbai16 Dec 2015AY 2008-09

Bench: Shri N.K. Billaiya & Shri Pawan Singhआयकर अपील सं/ I.Ta Nos.1240 & 1243/Mum/2013 ("नधा"रण वष" / Assessment Years:2008-09 & 2009-10 बनाम/ M/S. Vinyroyal The Ito 9(3)-3, Plasticoates Pvt. Ltd., Aayakar Bhavan, Vs. Plot No. 60Cd, Mumbai-400 020 Shlok Bldg., 1St Floor, Govt. Ind. Est, Charkop, Kandivli (W), Mumbai-400 067 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacv 4165E (अपीलाथ" /Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant By: Shri Mayur A. Shah ""यथ" क" ओर से/Respondent By: Shri Pawan Kumar Beerla सुनवाई क" तार"ख / Date Of Hearing :08.12.2015 घोषणा क" तार"ख /Date Of Pronouncement : 16.12 .2015 आदेश / O R D E R Per N.K. Billaiya, Am: These Appeals By The Assessee Are Preferred Against Two Separate Orders Of The Ld. Cit(A)-20, Mumbai Dated 17.12.2012 & 27.12.2012 Pertaining To Assessment Years 2008-09 & 2009-10. Both These Appeals Have Common Grievance By The Assessee Therefore They Were Heard Together & Disposed Of By This Common Order For The Sake Of Convenience.

For Appellant: Shri Mayur A. ShahFor Respondent: Shri Pawan Kumar
Section 36(1)(iii)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ , मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER आयकर अपील सं/ I.TA Nos.1240 & 1243/Mum/2013 ("नधा"रण वष" / Assessment Years:2008-09 & 2009-10 बनाम/ M/s. Vinyroyal The ITO 9(3)-3, Plasticoates Pvt. Ltd., Aayakar Bhavan, Vs. Plot No. 60CD, Mumbai-400 020 Shlok Bldg., 1st Floor, Govt. Ind. Est, Charkop, Kandivli (W), Mumbai-400 067 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACV 4165E (अपीलाथ" /Appellant) (""यथ" / Respondent) .. अपीलाथ" ओर से/ Appellant by: Shri Mayur A. Shah ""यथ" क"…

DCIT, New Delhi vs. M/S. Sindhu Realtors Pvt. Ltd., New Delhi

In the result, the appeal of the assessee is allowed

ITA 2768/DEL/2012[2008-09]Status: DisposedITAT Delhi11 Dec 2015AY 2008-09

Bench: Shri G.D. Agrawal & Shri A.T. Varkey

For Appellant: S/Shri Salil Kapoor & Sanat Kapoor, AdvocatesFor Respondent: Shri B.R.R. Kumar, Senior DR
Section 142(1)Section 143Section 2(22)Section 2(22)(e)

…g advances / investment out of its own share holder funds without incurring any interest burden. Our attention was brought to the judgment of Hon’ble Bombay High Court in the case of CIT 24 ITA No.2706 & 2768/Del./2012 vs. Reliance Utilities & Power Ltd. – 313 ITR 340, wherein the judgment of Hon’ble Supreme Court in the case of East India Pharmaceutical Works Ltd. vs. CIT – 224 ITR 627 and Hon’ble Calcutta High Court in Woolcombers of India Ltd. vs. CIT – 134 ITR 219 (Cal.) relied on, held as under :- “10. If there be interest free funds available to an assessee sufficient to meet its investments and at the…

M/S. Sindhu Realtors Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2706/DEL/2012[2008-09]Status: DisposedITAT Delhi11 Dec 2015AY 2008-09

Bench: Shri G.D. Agrawal & Shri A.T. Varkey

For Appellant: S/Shri Salil Kapoor & Sanat Kapoor, AdvocatesFor Respondent: Shri B.R.R. Kumar, Senior DR
Section 142(1)Section 143Section 2(22)Section 2(22)(e)

…g advances / investment out of its own share holder funds without incurring any interest burden. Our attention was brought to the judgment of Hon’ble Bombay High Court in the case of CIT 24 ITA No.2706 & 2768/Del./2012 vs. Reliance Utilities & Power Ltd. – 313 ITR 340, wherein the judgment of Hon’ble Supreme Court in the case of East India Pharmaceutical Works Ltd. vs. CIT – 224 ITR 627 and Hon’ble Calcutta High Court in Woolcombers of India Ltd. vs. CIT – 134 ITR 219 (Cal.) relied on, held as under :- “10. If there be interest free funds available to an assessee sufficient to meet its investments and at the…

DCIT, Circle - 8, Kolkata vs. M/S. E.I.H. Ltd., Kolkata

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

ITA 2182/KOL/2006[2003-04]Status: DisposedITAT Kolkata09 Dec 2015AY 2003-04

Bench: : Shri M. Balaganesh

For Appellant: Shri R.N Bajoria, Sr.Advocate &For Respondent: Shri Rajat Subhra Biswas, ld.CIT/DR
Section 143(3)Section 195Section 40Section 9(1)(vii)

…ITR 1 (SC) is very much applicable as on date until the judgement in Tulip Star Hotels Ltd is pronounced by the Supreme Court. g) Munjal Sales Corporation vs CIT and Another reported in 298 ITR 298 (SC) h) CIT vs Reliance Utilities and Power Ltd reported in 313 ITR 340 (BOM) ITA Nos. 2182/Kol/06, 57, 1876 & 1846/Kol/07, 196 & 299/Kol/2010 DCIT,Cir-8, Kol Vs. M/s. E I H Ltd 24 i) Recent decision of the Hon’ble Apex Court in the case of Hero Cycles (P) Ltd vs CIT reported in (2015) 63 taxmann.com 308 (SC) dated 5.11.2015. The operative portion of the aforesaid judgements are not reproduced herein for the sake…

Mape Advisory Group P.Ltd, Mumbai vs. DCIT 3(2), Mumbai

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

ITA 73/MUM/2013[2009-10]Status: DisposedITAT Mumbai08 Dec 2015AY 2009-10
For Appellant: Shri Kanchun Kaushal &For Respondent: Shri Aarsi Prasad
Section 14ASection 32(1)

…nt made in tax free securities, our attention was also invited to the audited balance sheet. Accordingly, it was pleaded that no disallowance is warranted in view of decision of jurisdictional High Court in the cases of Reliance Utilities & Power Ltd. [(2009) 313 ITR 340 (Born.)] and CIT v. HDFC Bank Ltd, ITA 330 of2012 dated 23rd July, 2014 . 8. We have considered the rival contentions and found that as per assessee's Balance Sheet, the assessee was having sufficient capital as well as reserves for investment in tax free securities. In the interest of justice, we restore this matter back to the file of AO for de…

DCIT 10(1), Mumbai vs. Itd Cementation India Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 6476/MUM/2013[2008-09]Status: DisposedITAT Mumbai08 Dec 2015AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Sandeep Gosaini.T.A. No.6476/M/2013 (Assessment Year: 2008-2009) फनाभ/ Dcit, Circle 10(1), M/S. Itd Cementation India R.No.432, 4 Th Floor, Aayakar Ltd., Vs. 1St Floor, Dani Wooltex Bhavan, M.K. Road, Mumbai-20. Compound, 158, Vidyanagari Marg, Kalina, Santacruz (E), Mumbai – 400 098. स्थामी रेखा सं./ Pan : Aaact1426A (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) अऩीराथी की ओय से / Appellant By : Shri G.M. Doss, Cit-Dr प्रत्मथी की ओय से/ Respondent By : Shri Harsh Bhuta

For Appellant: Shri G.M. Doss, CIT-DRFor Respondent: Shri Harsh Bhuta
Section 115JSection 143(3)(ii)Section 14ASection 37

…see demonstrated the existence of adequate interest free funds of the assessee before the CIT (A) to his satisfaction. Accordingly, relying on the binding judgment of the Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd [2009] 313 ITR 340 (Bom.), CIT (A) granted relief on this part of the addition. However, CIT (A) confirmed the other addition of Rs. 1.44 lakhs. Assessee accepted the said addition of the CIT (A) as evident from the fact of absence of any appeal before the Tribunal. 10. During the proceedings before us, Ld Counsels of both the parties relied on the orders of the A…

Kiran Omprakash Goneka, Mumbai vs. ACIT Cen Cir 14, Mumbai

The appeal of the assessee is partly allowed for statistical purposes

ITA 5566/MUM/2012[2008-09]Status: DisposedITAT Mumbai07 Dec 2015AY 2008-09

Bench: Shri Shailendra Kumar Yadav & Shri Rajesh Kumar.

For Appellant: Shri Hero Rai, A.RFor Respondent: Shri Anand Mohan, CIT
Section 132Section 153ASection 2(22)(e)Section 222

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “A” BENCH, MUMBAI BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER. ITA. Nos. 5565 to 5568/Mum/2012 (Assessment Years:2005-06, 08-09, 09-10 & 2010-11) Mrs. Kiran Omprakash Goenka 317/318, Parvati Industrial Estate, Sunmill Compound, Lower Parel (W), Mumbai – 13 Appellant Vs. ACIT, Central Circle-14, Mumbai -2 Respondent PAN: ABIPG3140L अपीलाथ" क" ओर से /By Appellant :Shri Hero Rai, A.R. ""यथ" क" ओर से/By Respondent : Shri Anand Mohan, CIT D.R. सुनवाई क" तार"ख/Date of Hearing :19.11.2015 घोषणा क" तार"ख/Date of Pronounceme…

Kiran Omprakash Goneka, Mumbai vs. ACIT Cen Cir 14, Mumbai

The appeal of the assessee is partly allowed for statistical purposes

ITA 5565/MUM/2012[2005-06]Status: DisposedITAT Mumbai07 Dec 2015AY 2005-06

Bench: Shri Shailendra Kumar Yadav & Shri Rajesh Kumar.

For Appellant: Shri Hero Rai, A.RFor Respondent: Shri Anand Mohan, CIT
Section 132Section 153ASection 2(22)(e)Section 222

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “A” BENCH, MUMBAI BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER. ITA. Nos. 5565 to 5568/Mum/2012 (Assessment Years:2005-06, 08-09, 09-10 & 2010-11) Mrs. Kiran Omprakash Goenka 317/318, Parvati Industrial Estate, Sunmill Compound, Lower Parel (W), Mumbai – 13 Appellant Vs. ACIT, Central Circle-14, Mumbai -2 Respondent PAN: ABIPG3140L अपीलाथ" क" ओर से /By Appellant :Shri Hero Rai, A.R. ""यथ" क" ओर से/By Respondent : Shri Anand Mohan, CIT D.R. सुनवाई क" तार"ख/Date of Hearing :19.11.2015 घोषणा क" तार"ख/Date of Pronounceme…

Alchemie Financial Services Ltd, Mumbai vs. ACIT RG 10(3), Mumbai

Appeal is partly allowed

ITA 5570/MUM/2012[2009-10]Status: DisposedITAT Mumbai04 Dec 2015AY 2009-10

Bench: Shri Shailendra Kumar Yadav & Shri Rajesh Kumar.

For Appellant: Shri Bhavin M. DedhiaFor Respondent: Shri A. Ramachandran
Section 10Section 143(3)Section 14A

…d funds available in the form of own funds and borrowed funds which were utilized for making investments in shares as well as for other purpose. However, as held by the Hon'ble Bombay High Court in this context in the case of Reliance Utilities and Power Ltd. 313 ITR 340, if there are funds available, both interest free and interest borrowing, then a presumption would arise that investment would be out of interest free funds generated or available with the company. Relying on the said decision of Hon'ble jurisdictional High court, we hold that the assessee having sufficient own funds to make investment in shares…

Aditya Birla Nuvo Ltd ( Formerly Known As Indian Rayon and Industries Ltd), Mumbai vs. Addl CIT RG 3(2), Mumbai

ITA 3703/MUM/2011[2007-08]Status: DisposedITAT Mumbai24 Nov 2015AY 2007-08
For Appellant: Shri J.D. MistriFor Respondent: Shri E. Sankaran-CIT(DR)
Section 143(3)Section 254(1)Section 43B

…l in nature and needs no new facts to be investigated.Hence,we are admitting them.First two grounds deal with disallowance made u/s.14A. 11.1.Before us the AR relied upon the cases of HDFC Bank Ltd.(2014-TIOL-1274-HC- MUM-IT); Reliance Utilities & Power Ltd. (313 ITR 340); InterGlobe Enterprises (IA No. 1362 & 1032/Del/2013);EIH Associated Hotels (ITA No.1503/Mds/2012).The DR stated that matter could be decided on merits. 11.2.While deciding the Ground of appeal No.2 we have sent back the issue of disallowance u/s.14A of the Act to the file of the AO.Following the same,we are restoring the issue of interest expen…

Addl CIT 3(2), Mumbai vs. Aditya Birla Nuvo Ltd ( Formerly Known As Indian Rayon & Industries Ltd), Mumbai

ITA 3634/MUM/2011[2007-08]Status: DisposedITAT Mumbai24 Nov 2015AY 2007-08
For Appellant: Shri J.D. MistriFor Respondent: Shri E. Sankaran-CIT(DR)
Section 143(3)Section 254(1)Section 43B

…l in nature and needs no new facts to be investigated.Hence,we are admitting them.First two grounds deal with disallowance made u/s.14A. 11.1.Before us the AR relied upon the cases of HDFC Bank Ltd.(2014-TIOL-1274-HC- MUM-IT); Reliance Utilities & Power Ltd. (313 ITR 340); InterGlobe Enterprises (IA No. 1362 & 1032/Del/2013);EIH Associated Hotels (ITA No.1503/Mds/2012).The DR stated that matter could be decided on merits. 11.2.While deciding the Ground of appeal No.2 we have sent back the issue of disallowance u/s.14A of the Act to the file of the AO.Following the same,we are restoring the issue of interest expen…