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 367,344 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.

Rosy Blue (India) Pvt. Ltd., Mumbai vs. DCIT Cent. Cir. - 46, (Now DCIT Cent. Cir. 8(3)), Mumbai

In the result, revenues appeal are dismissed and assessee/s appeal are allowed

ITA 3680/MUM/2018[2012-13]Status: DisposedITAT Mumbai12 Sept 2022AY 2012-13

Bench: Shri Amit Shukla, Hon'Ble & Shri M. Balaganesh, Hon'Ble

For Appellant: Shri Nitesh Joshi &For Respondent: Shri T. Shankar
Section 131Section 143(3)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, HON'BLE JUDICIAL MEMBER AND SHRI M. BALAGANESH, HON'BLE ACCOUNTANT MEMBER ITA.NOS.3679, 6756 & 3680/MUM/2018 (A.Ys: 2010-11 TO 2012-13) M/s. Rosy Blue (India) Pvt. Ltd. v. Dy. Commissioner of 1608/09, Prasad Chambers, Income Tax, Central Opera House, Mumbai 400 004. Circle-46, Mumbai. PAN: AACCR2413B (Appellant) (Respondent) ITA.NOS. 4094 & 4096/MUM/2018 (A.Ys: 2010-11 & 2012-13) Dy. Commissioner of Income Tax, v. M/s. Rosy Blue (India) Pvt. Ltd. Central Circle-8(3), 1608/09, Prasad Chambers, Mumbai. Opera House, Mumbai 400 004.…

Rosy Blue (India) Pvt. Ltd., Mumbai vs. DCIT Cent. Cir. - 46, (Now DCIT Cent. Cir. 8(3)), Mumbai

In the result, revenues appeal are dismissed and assessee/s appeal are allowed

ITA 3679/MUM/2018[2010-11]Status: DisposedITAT Mumbai12 Sept 2022AY 2010-11

Bench: Shri Amit Shukla, Hon'Ble & Shri M. Balaganesh, Hon'Ble

For Appellant: Shri Nitesh Joshi &For Respondent: Shri T. Shankar
Section 131Section 143(3)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, HON'BLE JUDICIAL MEMBER AND SHRI M. BALAGANESH, HON'BLE ACCOUNTANT MEMBER ITA.NOS.3679, 6756 & 3680/MUM/2018 (A.Ys: 2010-11 TO 2012-13) M/s. Rosy Blue (India) Pvt. Ltd. v. Dy. Commissioner of 1608/09, Prasad Chambers, Income Tax, Central Opera House, Mumbai 400 004. Circle-46, Mumbai. PAN: AACCR2413B (Appellant) (Respondent) ITA.NOS. 4094 & 4096/MUM/2018 (A.Ys: 2010-11 & 2012-13) Dy. Commissioner of Income Tax, v. M/s. Rosy Blue (India) Pvt. Ltd. Central Circle-8(3), 1608/09, Prasad Chambers, Mumbai. Opera House, Mumbai 400 004.…

Sureaksha DB Realty, Mumbai vs. Deputy Commissioner of Income Tax 30(3), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 482/MUM/2018[2011-12]Status: DisposedITAT Mumbai08 Sept 2022AY 2011-12

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm Suraksha Db Realty The Dy. Commissioner Of Behind Orchid Suburbia, Ground Income-Tax 30(3), Floor, Off; Link Road, Kandivali Room No.601, C-13, Vs. 6Th Floor, Bkc, (West), Mumbai-400 067 Mumbai-400 051 (Appellant) (Respondent) Pan No. Abofs0694R Assessee By : Shri Vijay Mehta, Ar Department By : Shri Op Sharma, Cit Dr

For Appellant: Shri Vijay Mehta, ARFor Respondent: Shri OP Sharma, CIT DR
Section 139(1)Section 143(3)Section 148Section 69CSection 80

…produced adequate information about receipt of goods, which remains uncontroverted. It appears that 027. Identical issue arose before the honourable Bombay High Court in case of principal Commissioner of income tax versus Shapporjii Pallonji and Co Ltd (2020) 423 ITR 220 (Bom) wherein the information was received from sales tax Department, government of Maharashtra that two parties had not actually sold any material to the assessee. In response to the very of the learned assessing officer, copies of the bills and entries made in books of accounts relating to such purchases were produced. However, the learned Sure…

ACIT, Circle-31(1), New Delhi vs. Indian Farmers Fertiliser Cooperative Ltd., New Delhi

In the result, appeal of Revenue is dismissed

ITA 7492/DEL/2018[2014-15]Status: DisposedITAT Delhi08 Sept 2022AY 2014-15

Bench: Sh. Anil Chaturvedi & Ms. Astha Chandraita Nos. 6836 & 7492/Del/2018 (Assessment Years : 2013-14 & 2014-15) Acit Vs. Indian Farmers Fertilizers Circle – 31(1) Co-Operative Ltd. (Iffco) New Delhi Iffco Sadan, C-1, District Centre, Saket Place Pan No. Aaaai 0050 M New Delhi – 110 017 (Appellant) (Respondent) Assessee By Shri Trandeep Singh, Adv. Revenue By Shri Ranu Mukharjee, Cit-D.R. Date Of Hearing: 17.08.2022 Date Of Pronouncement: 08.09.2022 Order Per Anil Chaturvedi, Am :

Section 143(3)Section 36(1)

…the capital expenditure and to make investments, no disallowance u/s 36(1)(iii) of the Act can be made. He thus deleted the addition. While deleting the addition, CIT(A) also followed the decision of Hon’ble Bombay High Court in the case of Reliance Utilities 313 ITR 340 and of Delhi High Court in the case of Eicher Goodearth in ITA No. 54/2000. Aggrieved by the order of CIT(A), Revenue is now in appeal before us. 8. Before us, Learned DR supported the order of lower authorities. 9. Learned AR on the other hand reiterated the submissions made by lower authorities and further submitted that identical issue arose…

ACIT, Circle-31(1), New Delhi vs. Indian Farmers Fertiliser Cooperative Ltd., New Delhi

In the result, appeal of Revenue is dismissed

ITA 6836/DEL/2018[2013-14]Status: DisposedITAT Delhi08 Sept 2022AY 2013-14

Bench: Sh. Anil Chaturvedi & Ms. Astha Chandraita Nos. 6836 & 7492/Del/2018 (Assessment Years : 2013-14 & 2014-15) Acit Vs. Indian Farmers Fertilizers Circle – 31(1) Co-Operative Ltd. (Iffco) New Delhi Iffco Sadan, C-1, District Centre, Saket Place Pan No. Aaaai 0050 M New Delhi – 110 017 (Appellant) (Respondent) Assessee By Shri Trandeep Singh, Adv. Revenue By Shri Ranu Mukharjee, Cit-D.R. Date Of Hearing: 17.08.2022 Date Of Pronouncement: 08.09.2022 Order Per Anil Chaturvedi, Am :

Section 143(3)Section 36(1)

…the capital expenditure and to make investments, no disallowance u/s 36(1)(iii) of the Act can be made. He thus deleted the addition. While deleting the addition, CIT(A) also followed the decision of Hon’ble Bombay High Court in the case of Reliance Utilities 313 ITR 340 and of Delhi High Court in the case of Eicher Goodearth in ITA No. 54/2000. Aggrieved by the order of CIT(A), Revenue is now in appeal before us. 8. Before us, Learned DR supported the order of lower authorities. 9. Learned AR on the other hand reiterated the submissions made by lower authorities and further submitted that identical issue arose…

M/S. Conwood Construction & Developers Pvt.Ltdconstruction, Mumbai vs. DCIT Central Cir-6, Mumbai

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

ITA 1506/MUM/2022[2003-04]Status: DisposedITAT Mumbai05 Sept 2022AY 2003-04
Section 14ASection 36(1)(iii)

…r giving interest free advances to the sister concerns. Accordingly, the learned AR submitted that no disallowance out of interest expenditure is called for as per decision rendered by Hon'ble Bombay High Court in the case of Reliance Utility and Powers Ltd. (313 ITR 340). 8. We find merit in the above said contentions of Ld A.R, as the same is in accordance with the decision rendered by Hon'ble Bombay High Court referred supra, i.e., if the amount of interest free loans given to sister concerns is less than the amount of aggregate of own funds and interest free loans taken by the assessee, then no disallowance…

Maharashtra Steels Rolling Mills P.Ltd, Mumbai vs. Assistant Commissioner of Income Tax Central Circle-35, Mumbai

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

ITA 5058/MUM/2017[2011-12]Status: DisposedITAT Mumbai05 Sept 2022AY 2011-12
For Appellant: Shri Pramod Parida/Ms. KiranFor Respondent: Smt. Mahita Nair (Sr. AR)
Section 14A

…made under Rule 8D (2)(ii) ie. with regard to the interest expenditure for earning the dividend income should not be made and for that proposition relied on the decision of the Hon’ble Bombay High Court in the case of Reliance Utility and Powers Ltd. Vs. CIT 313 ITR 340 (Bom) wherein the Hon’ble High Court has held that when the assessee is possessed of mixed funds which includes it’s own funds in sufficient quantity, a presumption that its own funds were utilized for the advances (interest-free) is to be drawn in respect of the advances given (interest free). Therefore, according to the Ld. AR, the disallowance…

Rare Enterprises, Mumbai vs. PCIT (Central), Mumbai 4, Mumbai

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

ITA 653/MUM/2022[2011-2012]Status: DisposedITAT Mumbai02 Sept 2022AY 2011-2012
For Appellant: Shri S. C. TiwariFor Respondent: Shri P. R. Mane (DR)
Section 143(3)Section 263Section 271(1)(c)Section 36(1)(iii)

…same was not accepted and the disallowance was confirmed. The assessee justified its action of giving interest free loans to three (3) entities by relying on the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Power Ltd. 313 ITR 340 4 A.Y. 2011-12 Rare Enterprises (Bom) wherein the Hon’ble High Court had laid down that when the assessee is posssed of mixed funds which includes its own funds in sufficient quantity, a presumption that its own funds were utilized for the interest free advances is to be drawn and in the present case, during the quantum assessment and appellate…

Gangadhar Narsingdas Agrawal (HUF), Margao vs. Asstt. Comm. of Income Tax Circle 1, Margao

In the result, appeal of the assessee is allowed

ITA 140/PAN/2018[2011-12]Status: DisposedITAT Panaji30 Aug 2022AY 2011-12

Bench: Shri Chandra Mohan Garg & Shri Girish Agrawalassessment Year: 2011-12 M/S. Gangadhar Narsingdas Assistant Commissioner Of Agrawal (Huf) Income-Tax, Circle-1, 1St Floor, Anand Bhavan, Vs. Margao-Goa. Old Station Rod, Margao- Goa 403601 (Pan: Aabhg4804R) (Appellant) (Respondent) Present For: Appellant By : Shri Nishant Thakkar, Advocate Respondent By : Shri Mayur Kamble, Sr. Dr Date Of Hearing : 16.06.2022 Date Of Pronouncement : 30.08.2022 O R D E R Per Girish Agrawal: This Appeal By The Assessee Is Directed Against The Order Of Ld. Cit(A), Panaji-1 Vide Ita No. 42/Mrg/2014-15 Dated 16.03.2018 For A.Y. 2011-12 Passed Against The Assessment Order U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) By Acit, Circle-1, Margao, Goa Dated 25.03.2014. 2. Shri Nishant Thakkar, Advocate Appeared On Behalf Of The Assessee & Shri Mayur Kamble, Sr. Dr Appeared On Behalf Of The Revenue.

For Appellant: Shri Nishant Thakkar, AdvocateFor Respondent: Shri Mayur Kamble, Sr. DR
Section 10(34)Section 143(3)Section 14ASection 3

…nditure incurred for earning tax free income. 5 M/s. Gangadhar Narsingdas Agrawal (HUF), A.Y: 2011-12 5.3. Ld. Counsel also referred to the decision of Hon’ble Jurisdictional High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom.) wherein it was held that if there are funds available, both interest free and overdraft and/or loans taken, a presumption would arise that investment would be out of interest free funds generated or available with company, provided such funds are sufficient to meet the said investments. 5.4. Reference was also made to another decision of…

Ananya Finance for Inclusive Growth Pvt.Ltd., Ahmedabad vs. Dy.Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad

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

ITA 959/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad25 Aug 2022AY 2011-12

Bench: Smt.Annapurna Gupta & Shri Mahavir Prasadassessment Year : 2011-12 Ananya Finance For Inclusive The Dcit, Cir.1(1)(1) Growth P Ltd. Ambawadi 401, Shaan, Op: M.J. Library Ahmedabad 380015. Ashram Road Ahmedabad 380 009. Pan : Aahca 8023 D

For Respondent: Shri Vijay Kumar Jaiswal, CIT-DR
Section 14ASection 250Section 250(6)

…: > 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. Reliance Utilities & Power Ltd. - 313 ITR 340 (Bom) > Munjal Sales Corporation vs. CIT - 298 ITR 298 (SC) 28 The ld.counsel for the assessee, accordingly contended that no disallowance is called for in the circumstances. 39. The ld.DR was unable to controvert either factual contentions of the assessee that it had sufficient interest free funds for making investment in relation to which the…

Edelweiss Financail Services Ltd, Mumbai vs. Dy CIT CC-1(1), Mumbai

In the result, appeal of the assessee for A

ITA 1328/MUM/2021[2014-15]Status: DisposedITAT Mumbai25 Aug 2022AY 2014-15
Section 10Section 115JSection 143(3)Section 14ASection 14A(2)Section 90

…icient interest free funds available with it to make advance of interest free loan to its employee welfare trust. The assessee placed reliance on the decision of the Hon’ble Jurisdictional High Court in the case of Reliance Utilities & Power Ltd., reported in 313 ITR 340 in support of its contentions. M/s. Edelweiss Financial Services Ltd., 12.2. The ld. CIT(A) observed that main objection of the ld. AO was that the money advanced to the Employees Welfare Trust by the assessee has been invested by the said trust for acquiring the shares of the assessee company itself and no welfare as such of employees has been…

Edelweiss Financial Services Ltd., Mumbai vs. Dy CIT CC-1(1), Mumbai

In the result, appeal of the assessee for A

ITA 1283/MUM/2021[2012-13]Status: DisposedITAT Mumbai25 Aug 2022AY 2012-13
Section 10Section 115JSection 143(3)Section 14ASection 14A(2)Section 90

…icient interest free funds available with it to make advance of interest free loan to its employee welfare trust. The assessee placed reliance on the decision of the Hon’ble Jurisdictional High Court in the case of Reliance Utilities & Power Ltd., reported in 313 ITR 340 in support of its contentions. M/s. Edelweiss Financial Services Ltd., 12.2. The ld. CIT(A) observed that main objection of the ld. AO was that the money advanced to the Employees Welfare Trust by the assessee has been invested by the said trust for acquiring the shares of the assessee company itself and no welfare as such of employees has been…

Edelweiss Finanacial Services Ltd., Mumbai vs. Dy CIT -CC-1(1), Mumbai

In the result, appeal of the assessee for A

ITA 1197/MUM/2021[2013-14]Status: DisposedITAT Mumbai25 Aug 2022AY 2013-14
Section 10Section 115JSection 143(3)Section 14ASection 14A(2)Section 90

…icient interest free funds available with it to make advance of interest free loan to its employee welfare trust. The assessee placed reliance on the decision of the Hon’ble Jurisdictional High Court in the case of Reliance Utilities & Power Ltd., reported in 313 ITR 340 in support of its contentions. M/s. Edelweiss Financial Services Ltd., 12.2. The ld. CIT(A) observed that main objection of the ld. AO was that the money advanced to the Employees Welfare Trust by the assessee has been invested by the said trust for acquiring the shares of the assessee company itself and no welfare as such of employees has been…

Sanjay Amlokchand Muthiyan, Principal Commissioner of Income Tax vs. Principal Commissioner of Income Tax, Nashik

In the result, the appeal is allowed

ITA 120/PUN/2021[2015-16]Status: HeardITAT Pune24 Aug 2022AY 2015-16

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपील सं. / Ita No.120/Pun/2021 "नधा"रण वष" / Assessment Year : 2015-16

Section 14ASection 263

…erest was paid. As against that, the assessee’s own capital (which is interest free, being an individual) is much more than the amount withdrawn from the partnership firm. The Hon'ble Bombay High Court in CIT vs. Reliance 5. Utilities and Power Ltd. (2009) 313 ITR 340 (Bom), has held that where an assessee possessed sufficient interest free funds of its own which were generated in the course of relevant financial year, apart from substantial shareholders’ funds, presumption gets established that the investments in sister concerns were made by the assessee out of interest free funds and, therefore, no part of…

JCIT (OSD), Circle 14, Pune vs. Kumar Builder Mumbai Realty Private Limited, Pune

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

ITA 22/PUN/2020[2014-15]Status: DisposedITAT Pune22 Aug 2022AY 2014-15

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Abhinay Kumbhar &
Section 143(3)Section 14ASection 36(1)(iii)Section 43B

…iii) is called for placing reliance on the decision of the Hon’ble Supreme Court in the case of CIT vs. Reliance Industries Ltd. 102 taxmann.com 52 (SC) and the decision of the Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd. 313 ITR 340 (Bombay). B. As regards to the disallowance u/s 14A, the ld. CIT(A) on considering the submission made before him that no disallowance u/s 14A is warranted in the absence of any exempt income, directed the Assessing Officer to delete suo moto disallowance of expenditure of Rs.14A of Rs.6,34,32,208/-. 8. Being aggrieved by the decision of the ld.…

JCIT (OSD), Circle 14, Pune vs. Kumar Urban Development Private Limited, Pune

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

ITA 21/PUN/2020[2014-15]Status: DisposedITAT Pune22 Aug 2022AY 2014-15

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Abhinay Kumbhar &
Section 143(3)Section 14ASection 36(1)(iii)Section 43B

…iii) is called for placing reliance on the decision of the Hon’ble Supreme Court in the case of CIT vs. Reliance Industries Ltd. 102 taxmann.com 52 (SC) and the decision of the Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd. 313 ITR 340 (Bombay). B. As regards to the disallowance u/s 14A, the ld. CIT(A) on considering the submission made before him that no disallowance u/s 14A is warranted in the absence of any exempt income, directed the Assessing Officer to delete suo moto disallowance of expenditure of Rs.14A of Rs.6,34,32,208/-. 8. Being aggrieved by the decision of the ld.…

JCIT (OSD), Circle 14, Pune vs. Kumar Urban Development Private Limited, Pune

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

ITA 20/PUN/2020[2013-14]Status: DisposedITAT Pune22 Aug 2022AY 2013-14

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Abhinay Kumbhar &
Section 143(3)Section 14ASection 36(1)(iii)Section 43B

…iii) is called for placing reliance on the decision of the Hon’ble Supreme Court in the case of CIT vs. Reliance Industries Ltd. 102 taxmann.com 52 (SC) and the decision of the Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd. 313 ITR 340 (Bombay). B. As regards to the disallowance u/s 14A, the ld. CIT(A) on considering the submission made before him that no disallowance u/s 14A is warranted in the absence of any exempt income, directed the Assessing Officer to delete suo moto disallowance of expenditure of Rs.14A of Rs.6,34,32,208/-. 8. Being aggrieved by the decision of the ld.…

Sameer Shantilal Muttha, Pune vs. Deputy Commissioner of Income-Tax, Circle - 3, Pune

In the result, appeal of the assessee is dismissed

ITA 1103/PUN/2019[2015-16]Status: DisposedITAT Pune17 Aug 2022AY 2015-16
For Appellant: Shri Krishna GujarthiFor Respondent: Shri Arvind Desai
Section 143(2)Section 36Section 57

…, Rs. 59,98,789/- was disallowed and added to the total income of the assessee. 3. However, the ld. CIT(A) has deleted this addition placing reliance on the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 wherein it was held that if the assessee has more interest free funds than it had advanced interest free loans to other parties, it has to be presumed that the assessee had advanced such interest free loans or advance to various parties from its own interest free funds. Therefore, the addition of Rs. 59,98,789/- was deleted by the ld. CIT(A). 4.…

India Infrastructure and Logistics India Pvt. Ltd., Mumbai vs. ACIT 6(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3134/MUM/2019[2009-10]Status: DisposedITAT Mumbai12 Aug 2022AY 2009-10

Bench: Shri Amarjit Singh & Ms. Kavitha Rajagopalindia Infrastructure & Vs. The Acit-6(1) Logistics India Pvt. Ltd. [Now Assessed With Acit-15(2)(1)] Aayakar Bhavan, M.K. Techno Campus, Road, Mumbai – 400 020 5Th Floor, Lodha Supremus Iii Building, Kanjur Marg East Mumbai – 400 042 स्थायी लेखा सं./ जीआइआर सं./ Pan/Gir No: Aabci4652G Appellant .. Respondent

For Appellant: Aarti Visanj &For Respondent: Shreekala Pardeshi
Section 143(2)Section 143(3)Section 36(1)(iii)

…ITA No.3134/Mum/2019 A.Y. 2009-10 1 India Infrastructure and Logistics India Pvt. Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & MS. KAVITHA RAJAGOPAL, JUDICIAL MEMBER India Infrastructure and Vs. The ACIT-6(1) Logistics India Pvt. Ltd. [now assessed with ACIT-15(2)(1)] Aayakar Bhavan, M.K. Techno Campus, Road, Mumbai – 400 020 5th Floor, Lodha Supremus III Building, Kanjur Marg East Mumbai – 400 042 स्थायी लेखा सं./ जीआइआर सं./ PAN/GIR No: AABCI4652G Appellant .. Respondent Appellant by : Aarti Visanj & Ajit Shah Respondent by : Shreekala Pardeshi…

Deputy Commissioner of Income Tax Circle- 4(3)(2), Mumbai vs. Skm Fabrics ( Amana ) Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 7027/MUM/2017[2012-13]Status: DisposedITAT Mumbai12 Aug 2022AY 2012-13

Bench: Shri Prashant Maharishi, Accountant, Member & Ms. Kavitha Rajagopaldcit, Circle-4(3)(2), Room No. 649, 6Th Floor, Aayakar Bhavan, M.K. Road, Mumbai-400020. ...... Appellant Vs. M/S Skm Fabrics (Amana) Ltd. 99, Niranjan, Ground Floor, Marine Lines, Mumbai-400002 Pan: Aafcs2660E ..... Respondent Appellant By : Sh. Hoshang B Irani (Dr) Respondent By : Sh. Yogesh Joijode Date Of Hearing : 24/05/2022 Date Of Pronouncement : 12/08/2022 Order Per Kavitha Rajagopal, J.M:

For Appellant: Sh. Hoshang B Irani (DR)For Respondent: Sh. Yogesh Joijode
Section 144Section 250Section 36(1)(iii)

…s and advances were given to sister concerns of the assessee for the purpose of business and relied on the decision of Jurisdictional High Court in the case of CIT Vs. Reliance Utilities and Power Ltd. 6 ITA No. 7027/Mum 2017- M/s SKM Fabrics (Amana) Ltd. [313 ITR 340]. The Ld. CIT(A) held that there was decrease in loans and advances and increase in unsecured loans during the same period, the cash credit facility availed was for export packing credit and also there was decrease in the term loan from Bank of India. The Ld. CIT(A) further stated that there was no similar disallowance in the earlier years in the…