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 367,368 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.

G-Tech Stone Ltd., Chennai vs. ACIT Corporate Circle 2(1), Chennai

The appeal stand allowed for statistical purposes

ITA 537/CHNY/2018[2011-12]Status: DisposedITAT Chennai05 Apr 2022AY 2011-12

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri S. Sridhar (Advocate) – Ld. ARFor Respondent: Shri Clement Ramesh Kumar – Ld. CIT-DR
Section 143(3)Section 147Section 153ASection 36Section 40A(3)

…आयकर अपीलीय अिधकरण ‘बी’"ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी वी. दुगा" राव, "ाियक सद" एवं माननीय "ी मनोज कुमार अ"वाल ,लेखा सद" के सम"। BEFORE HON’BLE SHRI V. DURGA RAO, JUDICIAL MEMBER AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA Nos.580 to 583/Chny/2018 (िनधा"रणवष" / Assessment Years: 2007-08 to 2010-11) ACIT M/s. G. Tech Stone Ltd बनाम/ Central Circle -2(1), No. 7, Seshadri Road, Investigation Wing, LVR Centre, Vs. Chennai – 600 034. Alwarpet, Chennai 600 001. & आयकरअपीलसं./ ITA Nos.3053/Chny/2017& 537TO 539/Chny/2018 (िनधा"रणवष" / Assessment Years: 2…

G-Tech Stone Ltd., Chennai vs. ACIT Corporate Circle 2(1), Chennai

The appeal stand allowed for statistical purposes

ITA 3053/CHNY/2017[2008-09]Status: DisposedITAT Chennai05 Apr 2022AY 2008-09

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri S. Sridhar (Advocate) – Ld. ARFor Respondent: Shri Clement Ramesh Kumar – Ld. CIT-DR
Section 143(3)Section 147Section 153ASection 36Section 40A(3)

…आयकर अपीलीय अिधकरण ‘बी’"ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय "ी वी. दुगा" राव, "ाियक सद" एवं माननीय "ी मनोज कुमार अ"वाल ,लेखा सद" के सम"। BEFORE HON’BLE SHRI V. DURGA RAO, JUDICIAL MEMBER AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA Nos.580 to 583/Chny/2018 (िनधा"रणवष" / Assessment Years: 2007-08 to 2010-11) ACIT M/s. G. Tech Stone Ltd बनाम/ Central Circle -2(1), No. 7, Seshadri Road, Investigation Wing, LVR Centre, Vs. Chennai – 600 034. Alwarpet, Chennai 600 001. & आयकरअपीलसं./ ITA Nos.3053/Chny/2017& 537TO 539/Chny/2018 (िनधा"रणवष" / Assessment Years: 2…

ACIT, Chennai vs. Sundaram Fasteners Limited, Chennai

The appeal stands dismissed

ITA 3438/CHNY/2019[2007-08]Status: DisposedITAT Chennai01 Apr 2022AY 2007-08

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Dr. S. Palani Kumar – Ld. CIT-DRFor Respondent: Shri Vikram Vijayaraghavan (Advocate) – Ld. AR
Section 36(1)(iii)

…ions including the decision of Hon’ble Supreme Court in the case of CIT V/s S.A.Builders (288 ITR 1), the decision of Hon’ble Madras High Court in CIT V/s Hotel Savera (239 ITR 795) and the decision of Hon’ble Bombay High Court in CIT V/s Reliance Utilities (313 ITR 340) in support of various arguments. 5.5 The Ld. CIT(A), after due consideration of factual matrix, noted that this issue was recurring in nature. In AYs 2003-04 and 2005-06, this issued was held by Tribunal in assessee’s favor. Similar favorable view was taken by Ld. DRP in AY 2010-11. However, in AYs 2012-13 & 2013- 14, Ld. DRP upheld the disallow…

ACIT, Chennai vs. Sundaram Fasteners Limited, Chennai

The appeal stands dismissed

ITA 3437/CHNY/2019[2006-07]Status: DisposedITAT Chennai01 Apr 2022AY 2006-07

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Dr. S. Palani Kumar – Ld. CIT-DRFor Respondent: Shri Vikram Vijayaraghavan (Advocate) – Ld. AR
Section 36(1)(iii)

…ions including the decision of Hon’ble Supreme Court in the case of CIT V/s S.A.Builders (288 ITR 1), the decision of Hon’ble Madras High Court in CIT V/s Hotel Savera (239 ITR 795) and the decision of Hon’ble Bombay High Court in CIT V/s Reliance Utilities (313 ITR 340) in support of various arguments. 5.5 The Ld. CIT(A), after due consideration of factual matrix, noted that this issue was recurring in nature. In AYs 2003-04 and 2005-06, this issued was held by Tribunal in assessee’s favor. Similar favorable view was taken by Ld. DRP in AY 2010-11. However, in AYs 2012-13 & 2013- 14, Ld. DRP upheld the disallow…

ACIT Circle 1, Trichy vs. Dalmia Bharat Ltd., Trichy

In the result, appeal of the revenue being devoid of merits is dismissed

ITA 3156/CHNY/2017[2014-15]Status: DisposedITAT Chennai31 Mar 2022AY 2014-15

Bench: S/Shri Shri Chandra Mohan Garg, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaassessment Year : 2014-15 Acit, Circle-1, Vs. M/S. M/S. Dalmia Dalmia Bharat Bharat Trichy Ltd.,Dalmiapuram, Tamilnadu - Ltd.,Dalmiapuram, Tamilnadu 621 651, Pan/Gir No.Aajcs 7366 K Aajcs 7366 K (Appellant) (Appellant .. ( Respondent Respondent) Assessee By : N O N E Revenue By : Dr S.Palanikumar, Cit (Dr Dr) Date Of Hearing : 24 /2/ 2022 2 Date Of Pronouncement : 31/3/20 /2022 O R D E R Per C.M.Garg, Jm , Jm

For Appellant: N o n eFor Respondent: Dr S.Palanikumar, CIT (DR
Section 14A

…rawn after an objective analysis and for cogent reasons that the amount of such expenditure as claimed by the assessee is not correct. On the strength of decision of Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities and Powers Limited (2009) 313 ITR 340 (Bom), it was also contended that if there are funds available both interest free and overdraft and/or loans taken, then a presumption would arise that investment would be out of the interest free fund generated or available with the company, if the interest free funds are sufficient to meet the investment. 7. In its written submission before th…

M/S. Metrochem Industriesltd., Ahmedabad vs. The ACIT., (OSD)-I, Range-4, Ahmedabad

In the result, the appeals of Revenue and appeals/cross objection of the assessee allowed/ dismissed as under:

ITA 606/AHD/2011[2006-07]Status: DisposedITAT Mumbai31 Mar 2022AY 2006-07

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 1998-1999 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income 505-506, While House, Panchwati, Vs. Tax, Circle-4, Ahmedabad-380 006. 112, 1St Floor, Avjivan Trust Bldg. Ashram Road, Ahmedabad-14. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 Metrochem Industries Ltd., The Income Tax Officer Ward 4(2), 505/506, Suryarath, Nr. Vs. Ahmedabad. Panchvati Ellisbridge, Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 The Acit, Cir-4, Ahmedabad, Metrochem Industries Ltd., Navjivan Trust Bldg. Off. Ashram Vs. 505/506, Suryarath, Nr. Panchvati Road, Ellisbridge, Ahmedabad. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent M/S Metrochem Industries Ltd., Assessment Year: 2003-04 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income Tax, 505-506, Surya Rath, Nr. Vs. Circle-4, Panchwati, Ellisbridge, Ahmedabad. Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2003-04 Dy. Commissioner Of Income Tax, M/S Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath, Nr. Navjivan Trust Bldg. Off. Ashram Panchwati, Ellisbridge, Road, Ahmedabad-380 006. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2004-05 Dy. Commissioner Of Income Tax Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath Building, B/H, Navjeevan Building Ashram Road, White House, Panchwati, Ahmedabad. Ambawati, Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Co No. 50/Ahd/2008 (Ita No. 87/Ahd/2008) Assessment Year: 2004-05 Metrochem Industries Ltd., Dy. Commissioner Of Income Tax 505-506, Surya Rath Building, Vs. Circle-4, B/H, White House, Panchwati Navjeevan Building Ashram Road, Ellisbridge, Ahmedabad. Ahmedabad-06 Pan No. Aabcm 8019 K

Section 115JSection 244ASection 245Section 80H

…s out of own funds, and in the absence of clear nexus that loans for advances were M/s Metrochem Industries Ltd., funds of the assessee. In support, the learned Counsel relied on the order of the Hon’ble Bombay High Court in the case of Reliance utilities Ltd 313 ITR 340 (Bom). 20. The Ld. DR on the other hand submitted that it is not open to draw the presumption unless the assessee provide complete details as to when those loans were advanced and whether immediate source of advances was own fund or borrowed fund. The assessee has not provided required evidences to the assessing officer for examining immediate s…

M/S. Metrochem Industriesltd., Ahmedabad vs. The ACIT., (OSD)-I, Range-4, Ahmedabad

In the result, the appeals of Revenue and appeals/cross objection of the assessee allowed/ dismissed as under:

ITA 1076/AHD/2011[2007-08]Status: DisposedITAT Mumbai31 Mar 2022AY 2007-08

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 1998-1999 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income 505-506, While House, Panchwati, Vs. Tax, Circle-4, Ahmedabad-380 006. 112, 1St Floor, Avjivan Trust Bldg. Ashram Road, Ahmedabad-14. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 Metrochem Industries Ltd., The Income Tax Officer Ward 4(2), 505/506, Suryarath, Nr. Vs. Ahmedabad. Panchvati Ellisbridge, Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 The Acit, Cir-4, Ahmedabad, Metrochem Industries Ltd., Navjivan Trust Bldg. Off. Ashram Vs. 505/506, Suryarath, Nr. Panchvati Road, Ellisbridge, Ahmedabad. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent M/S Metrochem Industries Ltd., Assessment Year: 2003-04 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income Tax, 505-506, Surya Rath, Nr. Vs. Circle-4, Panchwati, Ellisbridge, Ahmedabad. Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2003-04 Dy. Commissioner Of Income Tax, M/S Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath, Nr. Navjivan Trust Bldg. Off. Ashram Panchwati, Ellisbridge, Road, Ahmedabad-380 006. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2004-05 Dy. Commissioner Of Income Tax Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath Building, B/H, Navjeevan Building Ashram Road, White House, Panchwati, Ahmedabad. Ambawati, Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Co No. 50/Ahd/2008 (Ita No. 87/Ahd/2008) Assessment Year: 2004-05 Metrochem Industries Ltd., Dy. Commissioner Of Income Tax 505-506, Surya Rath Building, Vs. Circle-4, B/H, White House, Panchwati Navjeevan Building Ashram Road, Ellisbridge, Ahmedabad. Ahmedabad-06 Pan No. Aabcm 8019 K

Section 115JSection 244ASection 245Section 80H

…s out of own funds, and in the absence of clear nexus that loans for advances were M/s Metrochem Industries Ltd., funds of the assessee. In support, the learned Counsel relied on the order of the Hon’ble Bombay High Court in the case of Reliance utilities Ltd 313 ITR 340 (Bom). 20. The Ld. DR on the other hand submitted that it is not open to draw the presumption unless the assessee provide complete details as to when those loans were advanced and whether immediate source of advances was own fund or borrowed fund. The assessee has not provided required evidences to the assessing officer for examining immediate s…

The DCIT, Circle-4, Ahmedabad vs. Metrochem Industries Ltd., Ahmedabad

In the result, the appeals of Revenue and appeals/cross objection of the assessee allowed/ dismissed as under:

ITA 87/AHD/2008[2004-05]Status: DisposedITAT Mumbai31 Mar 2022AY 2004-05

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 1998-1999 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income 505-506, While House, Panchwati, Vs. Tax, Circle-4, Ahmedabad-380 006. 112, 1St Floor, Avjivan Trust Bldg. Ashram Road, Ahmedabad-14. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 Metrochem Industries Ltd., The Income Tax Officer Ward 4(2), 505/506, Suryarath, Nr. Vs. Ahmedabad. Panchvati Ellisbridge, Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 The Acit, Cir-4, Ahmedabad, Metrochem Industries Ltd., Navjivan Trust Bldg. Off. Ashram Vs. 505/506, Suryarath, Nr. Panchvati Road, Ellisbridge, Ahmedabad. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent M/S Metrochem Industries Ltd., Assessment Year: 2003-04 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income Tax, 505-506, Surya Rath, Nr. Vs. Circle-4, Panchwati, Ellisbridge, Ahmedabad. Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2003-04 Dy. Commissioner Of Income Tax, M/S Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath, Nr. Navjivan Trust Bldg. Off. Ashram Panchwati, Ellisbridge, Road, Ahmedabad-380 006. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2004-05 Dy. Commissioner Of Income Tax Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath Building, B/H, Navjeevan Building Ashram Road, White House, Panchwati, Ahmedabad. Ambawati, Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Co No. 50/Ahd/2008 (Ita No. 87/Ahd/2008) Assessment Year: 2004-05 Metrochem Industries Ltd., Dy. Commissioner Of Income Tax 505-506, Surya Rath Building, Vs. Circle-4, B/H, White House, Panchwati Navjeevan Building Ashram Road, Ellisbridge, Ahmedabad. Ahmedabad-06 Pan No. Aabcm 8019 K

Section 115JSection 244ASection 245Section 80H

…s out of own funds, and in the absence of clear nexus that loans for advances were M/s Metrochem Industries Ltd., funds of the assessee. In support, the learned Counsel relied on the order of the Hon’ble Bombay High Court in the case of Reliance utilities Ltd 313 ITR 340 (Bom). 20. The Ld. DR on the other hand submitted that it is not open to draw the presumption unless the assessee provide complete details as to when those loans were advanced and whether immediate source of advances was own fund or borrowed fund. The assessee has not provided required evidences to the assessing officer for examining immediate s…

M/S. Metrochem Industries Limited, Ahmedabad vs. The Dy.CIT., Circle-4, Ahmedabad

In the result, the appeals of Revenue and appeals/cross objection of the assessee allowed/ dismissed as under:

ITA 2594/AHD/2008[1998-1999]Status: DisposedITAT Mumbai31 Mar 2022AY 1998-1999

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 1998-1999 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income 505-506, While House, Panchwati, Vs. Tax, Circle-4, Ahmedabad-380 006. 112, 1St Floor, Avjivan Trust Bldg. Ashram Road, Ahmedabad-14. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 Metrochem Industries Ltd., The Income Tax Officer Ward 4(2), 505/506, Suryarath, Nr. Vs. Ahmedabad. Panchvati Ellisbridge, Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 The Acit, Cir-4, Ahmedabad, Metrochem Industries Ltd., Navjivan Trust Bldg. Off. Ashram Vs. 505/506, Suryarath, Nr. Panchvati Road, Ellisbridge, Ahmedabad. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent M/S Metrochem Industries Ltd., Assessment Year: 2003-04 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income Tax, 505-506, Surya Rath, Nr. Vs. Circle-4, Panchwati, Ellisbridge, Ahmedabad. Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2003-04 Dy. Commissioner Of Income Tax, M/S Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath, Nr. Navjivan Trust Bldg. Off. Ashram Panchwati, Ellisbridge, Road, Ahmedabad-380 006. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2004-05 Dy. Commissioner Of Income Tax Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath Building, B/H, Navjeevan Building Ashram Road, White House, Panchwati, Ahmedabad. Ambawati, Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Co No. 50/Ahd/2008 (Ita No. 87/Ahd/2008) Assessment Year: 2004-05 Metrochem Industries Ltd., Dy. Commissioner Of Income Tax 505-506, Surya Rath Building, Vs. Circle-4, B/H, White House, Panchwati Navjeevan Building Ashram Road, Ellisbridge, Ahmedabad. Ahmedabad-06 Pan No. Aabcm 8019 K

Section 115JSection 244ASection 245Section 80H

…s out of own funds, and in the absence of clear nexus that loans for advances were M/s Metrochem Industries Ltd., funds of the assessee. In support, the learned Counsel relied on the order of the Hon’ble Bombay High Court in the case of Reliance utilities Ltd 313 ITR 340 (Bom). 20. The Ld. DR on the other hand submitted that it is not open to draw the presumption unless the assessee provide complete details as to when those loans were advanced and whether immediate source of advances was own fund or borrowed fund. The assessee has not provided required evidences to the assessing officer for examining immediate s…

M/S. Metrochem Industries Limited, Ahmedabad vs. The Dy.CIT., Circle-4, Ahmedabad

In the result, the appeals of Revenue and appeals/cross objection of the assessee allowed/ dismissed as under:

ITA 2140/AHD/2008[2005-06]Status: DisposedITAT Mumbai31 Mar 2022AY 2005-06

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 1998-1999 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income 505-506, While House, Panchwati, Vs. Tax, Circle-4, Ahmedabad-380 006. 112, 1St Floor, Avjivan Trust Bldg. Ashram Road, Ahmedabad-14. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 Metrochem Industries Ltd., The Income Tax Officer Ward 4(2), 505/506, Suryarath, Nr. Vs. Ahmedabad. Panchvati Ellisbridge, Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 The Acit, Cir-4, Ahmedabad, Metrochem Industries Ltd., Navjivan Trust Bldg. Off. Ashram Vs. 505/506, Suryarath, Nr. Panchvati Road, Ellisbridge, Ahmedabad. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent M/S Metrochem Industries Ltd., Assessment Year: 2003-04 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income Tax, 505-506, Surya Rath, Nr. Vs. Circle-4, Panchwati, Ellisbridge, Ahmedabad. Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2003-04 Dy. Commissioner Of Income Tax, M/S Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath, Nr. Navjivan Trust Bldg. Off. Ashram Panchwati, Ellisbridge, Road, Ahmedabad-380 006. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2004-05 Dy. Commissioner Of Income Tax Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath Building, B/H, Navjeevan Building Ashram Road, White House, Panchwati, Ahmedabad. Ambawati, Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Co No. 50/Ahd/2008 (Ita No. 87/Ahd/2008) Assessment Year: 2004-05 Metrochem Industries Ltd., Dy. Commissioner Of Income Tax 505-506, Surya Rath Building, Vs. Circle-4, B/H, White House, Panchwati Navjeevan Building Ashram Road, Ellisbridge, Ahmedabad. Ahmedabad-06 Pan No. Aabcm 8019 K

Section 115JSection 244ASection 245Section 80H

…s out of own funds, and in the absence of clear nexus that loans for advances were M/s Metrochem Industries Ltd., funds of the assessee. In support, the learned Counsel relied on the order of the Hon’ble Bombay High Court in the case of Reliance utilities Ltd 313 ITR 340 (Bom). 20. The Ld. DR on the other hand submitted that it is not open to draw the presumption unless the assessee provide complete details as to when those loans were advanced and whether immediate source of advances was own fund or borrowed fund. The assessee has not provided required evidences to the assessing officer for examining immediate s…

The DCIT, Circle-4, Ahmedabad vs. M/S. Metrochem Industries Limited, Ahmedabad

In the result, the appeals of Revenue and appeals/cross objection of the assessee allowed/ dismissed as under:

ITA 788/AHD/2007[2003-04]Status: DisposedITAT Mumbai31 Mar 2022AY 2003-04

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 1998-1999 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income 505-506, While House, Panchwati, Vs. Tax, Circle-4, Ahmedabad-380 006. 112, 1St Floor, Avjivan Trust Bldg. Ashram Road, Ahmedabad-14. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 Metrochem Industries Ltd., The Income Tax Officer Ward 4(2), 505/506, Suryarath, Nr. Vs. Ahmedabad. Panchvati Ellisbridge, Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 The Acit, Cir-4, Ahmedabad, Metrochem Industries Ltd., Navjivan Trust Bldg. Off. Ashram Vs. 505/506, Suryarath, Nr. Panchvati Road, Ellisbridge, Ahmedabad. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent M/S Metrochem Industries Ltd., Assessment Year: 2003-04 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income Tax, 505-506, Surya Rath, Nr. Vs. Circle-4, Panchwati, Ellisbridge, Ahmedabad. Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2003-04 Dy. Commissioner Of Income Tax, M/S Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath, Nr. Navjivan Trust Bldg. Off. Ashram Panchwati, Ellisbridge, Road, Ahmedabad-380 006. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2004-05 Dy. Commissioner Of Income Tax Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath Building, B/H, Navjeevan Building Ashram Road, White House, Panchwati, Ahmedabad. Ambawati, Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Co No. 50/Ahd/2008 (Ita No. 87/Ahd/2008) Assessment Year: 2004-05 Metrochem Industries Ltd., Dy. Commissioner Of Income Tax 505-506, Surya Rath Building, Vs. Circle-4, B/H, White House, Panchwati Navjeevan Building Ashram Road, Ellisbridge, Ahmedabad. Ahmedabad-06 Pan No. Aabcm 8019 K

Section 115JSection 244ASection 245Section 80H

…s out of own funds, and in the absence of clear nexus that loans for advances were M/s Metrochem Industries Ltd., funds of the assessee. In support, the learned Counsel relied on the order of the Hon’ble Bombay High Court in the case of Reliance utilities Ltd 313 ITR 340 (Bom). 20. The Ld. DR on the other hand submitted that it is not open to draw the presumption unless the assessee provide complete details as to when those loans were advanced and whether immediate source of advances was own fund or borrowed fund. The assessee has not provided required evidences to the assessing officer for examining immediate s…

M/S. Metrochem Industries Limited, Ahmedabad vs. The Dy.CIT., Circle-4, Ahmedabad

In the result, the appeals of Revenue and appeals/cross objection of the assessee allowed/ dismissed as under:

ITA 66/AHD/2007[2003-04]Status: DisposedITAT Mumbai31 Mar 2022AY 2003-04

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 1998-1999 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income 505-506, While House, Panchwati, Vs. Tax, Circle-4, Ahmedabad-380 006. 112, 1St Floor, Avjivan Trust Bldg. Ashram Road, Ahmedabad-14. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 Metrochem Industries Ltd., The Income Tax Officer Ward 4(2), 505/506, Suryarath, Nr. Vs. Ahmedabad. Panchvati Ellisbridge, Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 The Acit, Cir-4, Ahmedabad, Metrochem Industries Ltd., Navjivan Trust Bldg. Off. Ashram Vs. 505/506, Suryarath, Nr. Panchvati Road, Ellisbridge, Ahmedabad. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent M/S Metrochem Industries Ltd., Assessment Year: 2003-04 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income Tax, 505-506, Surya Rath, Nr. Vs. Circle-4, Panchwati, Ellisbridge, Ahmedabad. Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2003-04 Dy. Commissioner Of Income Tax, M/S Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath, Nr. Navjivan Trust Bldg. Off. Ashram Panchwati, Ellisbridge, Road, Ahmedabad-380 006. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2004-05 Dy. Commissioner Of Income Tax Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath Building, B/H, Navjeevan Building Ashram Road, White House, Panchwati, Ahmedabad. Ambawati, Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Co No. 50/Ahd/2008 (Ita No. 87/Ahd/2008) Assessment Year: 2004-05 Metrochem Industries Ltd., Dy. Commissioner Of Income Tax 505-506, Surya Rath Building, Vs. Circle-4, B/H, White House, Panchwati Navjeevan Building Ashram Road, Ellisbridge, Ahmedabad. Ahmedabad-06 Pan No. Aabcm 8019 K

Section 115JSection 244ASection 245Section 80H

…s out of own funds, and in the absence of clear nexus that loans for advances were M/s Metrochem Industries Ltd., funds of the assessee. In support, the learned Counsel relied on the order of the Hon’ble Bombay High Court in the case of Reliance utilities Ltd 313 ITR 340 (Bom). 20. The Ld. DR on the other hand submitted that it is not open to draw the presumption unless the assessee provide complete details as to when those loans were advanced and whether immediate source of advances was own fund or borrowed fund. The assessee has not provided required evidences to the assessing officer for examining immediate s…

M/S. Metrochem Industries Limited, Ahmedabad vs. The Income Tax Officer, Wrd-4(2), Ahmedabad

In the result, the appeals of Revenue and appeals/cross objection of the assessee allowed/ dismissed as under:

ITA 764/AHD/2005[2001-02]Status: DisposedITAT Mumbai31 Mar 2022AY 2001-02

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 1998-1999 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income 505-506, While House, Panchwati, Vs. Tax, Circle-4, Ahmedabad-380 006. 112, 1St Floor, Avjivan Trust Bldg. Ashram Road, Ahmedabad-14. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 Metrochem Industries Ltd., The Income Tax Officer Ward 4(2), 505/506, Suryarath, Nr. Vs. Ahmedabad. Panchvati Ellisbridge, Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 The Acit, Cir-4, Ahmedabad, Metrochem Industries Ltd., Navjivan Trust Bldg. Off. Ashram Vs. 505/506, Suryarath, Nr. Panchvati Road, Ellisbridge, Ahmedabad. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent M/S Metrochem Industries Ltd., Assessment Year: 2003-04 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income Tax, 505-506, Surya Rath, Nr. Vs. Circle-4, Panchwati, Ellisbridge, Ahmedabad. Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2003-04 Dy. Commissioner Of Income Tax, M/S Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath, Nr. Navjivan Trust Bldg. Off. Ashram Panchwati, Ellisbridge, Road, Ahmedabad-380 006. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2004-05 Dy. Commissioner Of Income Tax Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath Building, B/H, Navjeevan Building Ashram Road, White House, Panchwati, Ahmedabad. Ambawati, Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Co No. 50/Ahd/2008 (Ita No. 87/Ahd/2008) Assessment Year: 2004-05 Metrochem Industries Ltd., Dy. Commissioner Of Income Tax 505-506, Surya Rath Building, Vs. Circle-4, B/H, White House, Panchwati Navjeevan Building Ashram Road, Ellisbridge, Ahmedabad. Ahmedabad-06 Pan No. Aabcm 8019 K

Section 115JSection 244ASection 245Section 80H

…s out of own funds, and in the absence of clear nexus that loans for advances were M/s Metrochem Industries Ltd., funds of the assessee. In support, the learned Counsel relied on the order of the Hon’ble Bombay High Court in the case of Reliance utilities Ltd 313 ITR 340 (Bom). 20. The Ld. DR on the other hand submitted that it is not open to draw the presumption unless the assessee provide complete details as to when those loans were advanced and whether immediate source of advances was own fund or borrowed fund. The assessee has not provided required evidences to the assessing officer for examining immediate s…

The ACIT, Circle-4, Ahmedabad vs. M/S. Metrochem Industries Limited, Ahmedabad

In the result, the appeals of Revenue and appeals/cross objection of the assessee allowed/ dismissed as under:

ITA 1190/AHD/2005[2001-02]Status: DisposedITAT Mumbai31 Mar 2022AY 2001-02

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 1998-1999 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income 505-506, While House, Panchwati, Vs. Tax, Circle-4, Ahmedabad-380 006. 112, 1St Floor, Avjivan Trust Bldg. Ashram Road, Ahmedabad-14. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 Metrochem Industries Ltd., The Income Tax Officer Ward 4(2), 505/506, Suryarath, Nr. Vs. Ahmedabad. Panchvati Ellisbridge, Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2001-02 The Acit, Cir-4, Ahmedabad, Metrochem Industries Ltd., Navjivan Trust Bldg. Off. Ashram Vs. 505/506, Suryarath, Nr. Panchvati Road, Ellisbridge, Ahmedabad. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent M/S Metrochem Industries Ltd., Assessment Year: 2003-04 M/S Metrochem Industries Ltd., Dy. Commissioner Of Income Tax, 505-506, Surya Rath, Nr. Vs. Circle-4, Panchwati, Ellisbridge, Ahmedabad. Ahmedabad-380 006. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2003-04 Dy. Commissioner Of Income Tax, M/S Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath, Nr. Navjivan Trust Bldg. Off. Ashram Panchwati, Ellisbridge, Road, Ahmedabad-380 006. Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Assessment Year: 2004-05 Dy. Commissioner Of Income Tax Metrochem Industries Ltd., Circle-4, Vs. 505-506, Surya Rath Building, B/H, Navjeevan Building Ashram Road, White House, Panchwati, Ahmedabad. Ambawati, Ahmedabad. Pan No. Aabcm 8019 K Appellant Respondent Co No. 50/Ahd/2008 (Ita No. 87/Ahd/2008) Assessment Year: 2004-05 Metrochem Industries Ltd., Dy. Commissioner Of Income Tax 505-506, Surya Rath Building, Vs. Circle-4, B/H, White House, Panchwati Navjeevan Building Ashram Road, Ellisbridge, Ahmedabad. Ahmedabad-06 Pan No. Aabcm 8019 K

Section 115JSection 244ASection 245Section 80H

…s out of own funds, and in the absence of clear nexus that loans for advances were M/s Metrochem Industries Ltd., funds of the assessee. In support, the learned Counsel relied on the order of the Hon’ble Bombay High Court in the case of Reliance utilities Ltd 313 ITR 340 (Bom). 20. The Ld. DR on the other hand submitted that it is not open to draw the presumption unless the assessee provide complete details as to when those loans were advanced and whether immediate source of advances was own fund or borrowed fund. The assessee has not provided required evidences to the assessing officer for examining immediate s…

Aarvee Denims & Exports Ltd., Ahmedabad vs. The Dy. Commissioner of Income Tax, Ahmedabad

In the result, appeal of the assessee is partly allowed, while that of the Revenue is dismissed

ITA 993/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad30 Mar 2022AY 2012-13

Bench: S/Shri Pramod M. Jagtap & T.R. Senthil Kumarassessment Year :2012-13 Aarvee Denims & Exports Dcit, Cir.1(1)(1) 191, Shahwadi, Vs Ahmedabad. Nr.Old Octroi Naka Narol-Sarkhej Highway Ahmedabad 382 405. Pan : Aabca 6019 P Assessment Year : 2012-13 Dcit, Cir.1(1)(1) Aarvee Denims & Exports Ahmedabad. Vs Ahmedabad 382 405. Pan : Aabca 6019 P अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Assessee By : Shri D.K. Parikh, Ar Revenue By : Shri V.K. Singh, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 24/02/2022 घोषणा क" तार"ख /Date Of Pronouncement: 30/03/2022 आदेश/O R D E R Per T.R. Senthil Kumar: These Cross Appeals Filed By The Assessee & The Revenue Are Against Order Dated 30.3.2016 Passed By Ld.Commissioner Of Income-Tax (Appeals)-1, Ahmedabad [For Short “Ld.Cit(A)] In Appeal No.Cit(A)-1/Dcit, Cir.1(1)(1)/738/2014-15 Relating To The Assessment Year 2012-13. We Dispose Of Both The Appeals By This Common Order.

For Appellant: Shri D.K. Parikh, ARFor Respondent: Shri V.K. Singh, Sr.DR
Section 143(1)Section 143(2)

…ation of the facts on record which the ld.CIT(A) has rightly reversed by allowing the claim of the assessee. To support its case, the ld.counsel for the assessee has also relied upon the various case laws including decisions in the case of Reliance Utilities, 313 ITR 340 (Bom); ITA No.993 and 1553/Ahd/2016 Gujarat High Court decision in the case of Torrent Leasing, and some of the decisions of ITAT, Ahmedabad Bench. 33. We have considered submissions of the both the parties; perused the impugned orders authorities below. The ld.AO has made the impugned disallowance of interest on the presumption that the asses…

The Dy. Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad vs. M/S. Aarvee Denims & Exports Ltd., Ahmedabad

In the result, appeal of the assessee is partly allowed, while that of the Revenue is dismissed

ITA 1553/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad30 Mar 2022AY 2012-13

Bench: S/Shri Pramod M. Jagtap & T.R. Senthil Kumarassessment Year :2012-13 Aarvee Denims & Exports Dcit, Cir.1(1)(1) 191, Shahwadi, Vs Ahmedabad. Nr.Old Octroi Naka Narol-Sarkhej Highway Ahmedabad 382 405. Pan : Aabca 6019 P Assessment Year : 2012-13 Dcit, Cir.1(1)(1) Aarvee Denims & Exports Ahmedabad. Vs Ahmedabad 382 405. Pan : Aabca 6019 P अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Assessee By : Shri D.K. Parikh, Ar Revenue By : Shri V.K. Singh, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 24/02/2022 घोषणा क" तार"ख /Date Of Pronouncement: 30/03/2022 आदेश/O R D E R Per T.R. Senthil Kumar: These Cross Appeals Filed By The Assessee & The Revenue Are Against Order Dated 30.3.2016 Passed By Ld.Commissioner Of Income-Tax (Appeals)-1, Ahmedabad [For Short “Ld.Cit(A)] In Appeal No.Cit(A)-1/Dcit, Cir.1(1)(1)/738/2014-15 Relating To The Assessment Year 2012-13. We Dispose Of Both The Appeals By This Common Order.

For Appellant: Shri D.K. Parikh, ARFor Respondent: Shri V.K. Singh, Sr.DR
Section 143(1)Section 143(2)

…ation of the facts on record which the ld.CIT(A) has rightly reversed by allowing the claim of the assessee. To support its case, the ld.counsel for the assessee has also relied upon the various case laws including decisions in the case of Reliance Utilities, 313 ITR 340 (Bom); ITA No.993 and 1553/Ahd/2016 Gujarat High Court decision in the case of Torrent Leasing, and some of the decisions of ITAT, Ahmedabad Bench. 33. We have considered submissions of the both the parties; perused the impugned orders authorities below. The ld.AO has made the impugned disallowance of interest on the presumption that the asses…

Aarti Industrial Ltd., Mumbai vs. DCIT - 15(1)(1), Mumbai

In the result, appeal filed by the assesse is allowed for statistical purpose and appeal filed by the revenue is partly allowed for statistical purpose

ITA 3695/MUM/2018[2014-15]Status: DisposedITAT Mumbai30 Mar 2022AY 2014-15

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Bledcit – 15(1)(1) V. M/S. Arti Industries Ltd., Room No. 470, 4Th Floor 71, Udyog Kshetra, 2Nd Floor Aayakar Bhavan, M.K. Road Mulund-Goregoaon Link Road Mumbai - 400020 Mulund(W), Mumbai -400080 Pan: Aabca2787L Appellant Respondent & C.O. No. 145/Mum/2019 [Arising Out Of Ita.No. 3583/Mum/2018 (A.Y. 2014-15)] M/S. Arti Industries Ltd., V. Dcit – 15(1)(1) 71, Udyog Kshetra, 2Nd Floor Room No. 470, 4Th Floor Mulund-Goregoaon Link Road Aayakar Bhavan, M.K. Road Mulund(W), Mumbai -400080 Mumbai - 400020 Pan: Aabca2787L Appellant Respondent Assessee By : Shri Vijay Mehta Revenue By : Ms. Shailaja Rai & Shri Mehul Jain

For Appellant: Shri Vijay MehtaFor Respondent: Ms. Shailaja Rai &
Section 115JSection 143(3)Section 14ASection 40Section 80

…o incomplete.” 5. “On the facts and in the circumstances of the case and in law, the Ld-CIT(A) erred in deleting the addition made u/s 14A of the Act r.w.r. 8D of the I T Rules by merely relying on the decisions in the case of Reliance Utilities Ltd. vs. CIT [313 ITR 340 (Bom)], ignoring the facts stated in the assessment order.” 6. “On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in allowing the depreciation in respect of unrealized Foreign Exchange Loss of earlier years, ignoring that as the forex loss was unrealized the upward adjustment made by the assessee company to the blo…

Jt.CIT.(OSD), Circle-1(1)(1), Ahmedabad vs. Axis Bank Limited, Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 956/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad29 Mar 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No. 852/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2015-2016 Axis Bank Limited, J.C.I.T., “Trishul”, 3Rd Floor, Vs. Circle-1(1)(1), Opp. Samtheshwar Mahadev, Ahmedabad. Near Law Garden, Ellisbridge, Ahmedabad-380006. Pan: Aaacu2414K

For Appellant: Shri S.N. Soparkar Sr. Advocate with Shri Parin Shah, A.RFor Respondent: Shri Vijaykumar Jaiswal, CIT.D.R
Section 133Section 14ASection 43D

…this, we find that the tax free investment at Rs. 651 crores. Thus, it can be safely concluded that the assessee was having sufficient own funds to make the tax free investment, ^jfhe Hon'ble High Court of Bombay in the case of Reliance Utilities and wer Ltd. 313 ITR 340 has held that if there are mixed funds then the power presumption would be that the investments have been made out of interest free funds. This ratio of the Hon'ble High Court of Bombay was subsequently followed in the case of HDFC Ltd. 266 ITR 505. As mentioned elsewhere, the assessee was having sufficient own funds to meet out the tax free inve…

Axis Bank Limited, Ahmedabad vs. Jt.CIT., Circle-1(1)(1), Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 852/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad29 Mar 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No. 852/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2015-2016 Axis Bank Limited, J.C.I.T., “Trishul”, 3Rd Floor, Vs. Circle-1(1)(1), Opp. Samtheshwar Mahadev, Ahmedabad. Near Law Garden, Ellisbridge, Ahmedabad-380006. Pan: Aaacu2414K

For Appellant: Shri S.N. Soparkar Sr. Advocate with Shri Parin Shah, A.RFor Respondent: Shri Vijaykumar Jaiswal, CIT.D.R
Section 133Section 14ASection 43D

…this, we find that the tax free investment at Rs. 651 crores. Thus, it can be safely concluded that the assessee was having sufficient own funds to make the tax free investment, ^jfhe Hon'ble High Court of Bombay in the case of Reliance Utilities and wer Ltd. 313 ITR 340 has held that if there are mixed funds then the power presumption would be that the investments have been made out of interest free funds. This ratio of the Hon'ble High Court of Bombay was subsequently followed in the case of HDFC Ltd. 266 ITR 505. As mentioned elsewhere, the assessee was having sufficient own funds to meet out the tax free inve…

Diamines & Chemicals Ltd., Vadodara vs. DCIT Circle-1(1)(1), Vadodara

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

ITA 2275/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad25 Mar 2022AY 2014-15

Bench: Shri P.M. Jagtap, Vice- & Shri T.R. Senthil Kumar

For Appellant: Shri Vimal Desai, ARFor Respondent: Shri V.K. Singh, Sr DR
Section 143(2)Section 36(1)(iii)

…he ratio laid down in the following cases support the cases of revenue:- a) CIT vs Harrisons Malayalam Ltd. (2012) 25 taxmann.com 546 (Ker): After referring to the decision of the Hon'ble Bombay High Court in the case of Reliance Utilities & Power Ltd. (2009) 313 ITR 340/178 taxrnann.com 135 (Born), it has been held that when there is nexus between interest bearing loans & interest free advances to subsidiaries, even if, own funds are available in common pool, disallowance of interest relating to interest free advances u/s 36(1)(iii) has to be made. b) Punjab Stainless Steel Industries v. CIT (2010) 324 ITR 396…