CIT v. Reliance Utilities & Power Ltd.

M/S. United Phosphorus Ltd., Mumbai vs. DCIT Cent. Cir. - 38, Mumbai

In the result, appeal of the revenue is partly allowed

Bench: Shri Amit Shukla & Shri Gagan Goyalm/S. United Phosphorus Limited, Mumbai (Now Known As Uniphos Enterprises Ltd.) Uniphos House, 11-C.D. Marg Opp. Madhu Park Khar (W), Mumbai – 400 052 Pan: Aaacu3440P ...... Appellant Vs. Acit Cc -2 Dy. Commissioner Of Income Tax Central Circle-38 Mumbai ..... Respondent Acit Cc -2 Dy. Commissioner Of Income Tax Central Circle-38 Mumbai ...... Appellant Vs. M/S. United Phosphorus Limited, Mumbai (Now Known As Uniphos Enterprises Ltd.) Uniphos House, 11-C.D. Marg Opp. Madhu Park Khar (W) Mumbai – 400 052 Pan: Aaacu3440P ...... Respondent (Now Known As Uniphos Enterprises Ltd.)

…first question." 23. Further, reliance is placed on the below decisions: (i) South Indian Bank Ltd. (438 ITR 1) (SC) (ii) CIT vs HDFC Bank Ltd. (366 ITR 505) (Bom) (iii) HDFC Bank Ltd vs DCIT (284 CTR 414) (Bom) (iv). CIT vs. Reliance Utilities and Power Ltd (313 ITR 340) (Bom) 23. We have heard both the parties and found that the own funds Rs. 42,261.47 lakhs far exceed the investments in shares of Rs. 813.52 lakhs, no disallowance should be made in respect of interest expenditure attributable to earning dividend income. We have also relied upon the Judgment of Reliance Industries Limited (supra) wherein The Ho…

ACIT(Ltu-1), Mumbai vs. M/S. Tcs Ltd, Mumbai

Bench: Shri Vikas Awasthy () & Ms. Padmavathy S. ()

…d also submitted before the ld. AO that it has sufficient interest free funds in its kitty for making investments and accordingly, in view of the decision of the Hon‟ble Jurisdictional High Court in the case of Reliance Utilities and Power Limited reported in 313 ITR 340, no disallowance of interest need to be made for the purpose of earning exempt income. The assessee also gave an explanation with regard to the details of various interest paid by it together with the purpose of borrowing and its utilization for the purpose of business and categorically stated that the same were not related for investment activit…

Tata Consultancy Serrvices Limited, Mumbai vs. DCIT-1, Mumbai

Bench: Shri Vikas Awasthy () & Ms. Padmavathy S. ()

…d also submitted before the ld. AO that it has sufficient interest free funds in its kitty for making investments and accordingly, in view of the decision of the Hon‟ble Jurisdictional High Court in the case of Reliance Utilities and Power Limited reported in 313 ITR 340, no disallowance of interest need to be made for the purpose of earning exempt income. The assessee also gave an explanation with regard to the details of various interest paid by it together with the purpose of borrowing and its utilization for the purpose of business and categorically stated that the same were not related for investment activit…

DCIT Cir 5(3)(2), Mumbai vs. The Great Eastern Shipping Co. Ltd, Mumbai

In the result, appeal of the assessee (ITA number 1597/M/2018) is allowed for statistical purposes

Bench: Shri Prashant Maharishi, Am & Shri Narender Kumar Choudhary , Jm & & The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 Nd Floor, Vs. Room No.525B, 5 Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of Income- The Great Eastern Shipping Co. Tax, Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 Nd Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

…2 and internal accruals generated by the Company itself. In this regard, reliance is placed on the following decisions: a) South Indian Bank Ltd. - 130 taxmann.com 178 (SC) b) Reliance Industries Ltd. - 410 ITR 466 (SC) c) Reliance Utilities and Power Ltd. - 313 ITR 340 (Bom.) d) HDFC Bank Ltd. - 366 ITR 505 (Bom.) This issue is covered in favour of the Appellant by the Hon‟ble Income Tax Appellate Tribunal, Mumbai, in the Appellant‟s own case for the Assessment Year 2008-09 (Page 8, Para 10.3 & 10.4). Disallowance under Rule 8D(2)(iii) of the Rules viii) As regards indirect administrative expenditure, it is res…

The Great Eastern Shipping Co. Ltd, Mumbai vs. Asst CIT Cir 5(3)(2), Mumbai

In the result, appeal of the assessee (ITA number 1597/M/2018) is allowed for statistical purposes

Bench: Shri Prashant Maharishi, Am & Shri Narfendrakumar Choudhary , Jm & & The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 N D Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of Income- The Great Eastern Shipping Co. Tax, Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 N D Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

…2 and internal accruals generated by the Company itself. In this regard, reliance is placed on the following decisions: a) South Indian Bank Ltd. - 130 taxmann.com 178 (SC) b) Reliance Industries Ltd. - 410 ITR 466 (SC) c) Reliance Utilities and Power Ltd. - 313 ITR 340 (Bom.) d) HDFC Bank Ltd. - 366 ITR 505 (Bom.) This issue is covered in favour of the Appellant by the Hon‟ble Income Tax Appellate Tribunal, Mumbai, in the Appellant‟s own case for the Assessment Year 2008-09 (Page 8, Para 10.3 & 10.4). Disallowance under Rule 8D(2)(iii) of the Rules viii) As regards indirect administrative expenditure, it is res…

The Great Eastern Shipping Co. Ltd, Mumbai vs. Asst CIT Cir 5(3)(2), Mumbai

In the result, appeal of the assessee (ITA number 1597/M/2018) is allowed for statistical purposes

Bench: Shri Prashant Maharishi, Am & Shri Narfendrakumar Choudhary , Jm & & The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 N D Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of Income- The Great Eastern Shipping Co. Tax, Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 N D Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

…2 and internal accruals generated by the Company itself. In this regard, reliance is placed on the following decisions: a) South Indian Bank Ltd. - 130 taxmann.com 178 (SC) b) Reliance Industries Ltd. - 410 ITR 466 (SC) c) Reliance Utilities and Power Ltd. - 313 ITR 340 (Bom.) d) HDFC Bank Ltd. - 366 ITR 505 (Bom.) This issue is covered in favour of the Appellant by the Hon‟ble Income Tax Appellate Tribunal, Mumbai, in the Appellant‟s own case for the Assessment Year 2008-09 (Page 8, Para 10.3 & 10.4). Disallowance under Rule 8D(2)(iii) of the Rules viii) As regards indirect administrative expenditure, it is res…

The Great Eastern Shipping Co. Ltd, Mumbai vs. DCIT Cir 5(3)(2), Mumbai

In the result, appeal of the assessee (ITA number 1597/M/2018) is allowed for statistical purposes

Bench: Shri Prashant Maharishi, Am & Shri Narfendrakumar Choudhary , Jm & & The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 N D Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of Income- The Great Eastern Shipping Co. Tax, Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 N D Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

…2 and internal accruals generated by the Company itself. In this regard, reliance is placed on the following decisions: a) South Indian Bank Ltd. - 130 taxmann.com 178 (SC) b) Reliance Industries Ltd. - 410 ITR 466 (SC) c) Reliance Utilities and Power Ltd. - 313 ITR 340 (Bom.) d) HDFC Bank Ltd. - 366 ITR 505 (Bom.) This issue is covered in favour of the Appellant by the Hon‟ble Income Tax Appellate Tribunal, Mumbai, in the Appellant‟s own case for the Assessment Year 2008-09 (Page 8, Para 10.3 & 10.4). Disallowance under Rule 8D(2)(iii) of the Rules viii) As regards indirect administrative expenditure, it is res…

DCIT 10(2)(2), Mumbai vs. Mighty Construction P. Ltd, Mumbai

In the result, all the appeals raised by the Revenue are partly allowed

…own funds for giving such advances. Thus, where own funds are more than the amount of advances given, it can be presumed that the funds were advanced out of own funds. The appellant has relied on the decision in case of CIT v. Reliance Utilities & Power Ltd [313 ITR 340(Bom)] to support this contention. Alternatively, the appellant also submitted that the loans given to Tulip Shares & Structures Pvt. Ltd, was to the tune of Rs. 7,40,39,682/- whereas the interest paid by the appellant to various parties and considered by the Assessing Officer in his assessment order is in respect of loans aggregating to Rs. 60,27…

DCIT 10(2)(2), Mumbai vs. Mighty Construction P. Ltd, Mumbai

In the result, all the appeals raised by the Revenue are partly allowed

…own funds for giving such advances. Thus, where own funds are more than the amount of advances given, it can be presumed that the funds were advanced out of own funds. The appellant has relied on the decision in case of CIT v. Reliance Utilities & Power Ltd [313 ITR 340(Bom)] to support this contention. Alternatively, the appellant also submitted that the loans given to Tulip Shares & Structures Pvt. Ltd, was to the tune of Rs. 7,40,39,682/- whereas the interest paid by the appellant to various parties and considered by the Assessing Officer in his assessment order is in respect of loans aggregating to Rs. 60,27…

DCIT 10(2)(2), Mumbai vs. Mighty Construction P.Ltd, Mumbai

In the result, all the appeals raised by the Revenue are partly allowed

…own funds for giving such advances. Thus, where own funds are more than the amount of advances given, it can be presumed that the funds were advanced out of own funds. The appellant has relied on the decision in case of CIT v. Reliance Utilities & Power Ltd [313 ITR 340(Bom)] to support this contention. Alternatively, the appellant also submitted that the loans given to Tulip Shares & Structures Pvt. Ltd, was to the tune of Rs. 7,40,39,682/- whereas the interest paid by the appellant to various parties and considered by the Assessing Officer in his assessment order is in respect of loans aggregating to Rs. 60,27…

M/S Mafatlal Industries Limited, Mumbai vs. Dy Commissioner of Income Tax-Central Circle-8(2), Mumbai

In the result, appeal is partly allowed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…iven during the year and the said balance include opening balance also. 14 ITA 881/Mum/2023 Mafatlal Industries Limited The Ld.AR further submitted that the ratio laid down by the jurisdictional High Court in the case of CIT vs Reliance Utilities & Power Ltd 313 ITR 340 (Bom) should be applied for the disallowance made towards advances given to Silvia Apparels Limited also. The Ld.DR relied on the order of the lower authority. 10. We heard the parties and perused the material on record. The ratio laid down by the jurisdictional High Court in the case of Reliance Utilities & Power Ltd (supra) is that if there ar…