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.

J.K.Fenner (India) Limited, Chennai vs. JCIT, Madurai

Appeal stand dismissed whereas the assessee’s appeal stands partly allowed for statistical purposes

ITA 1060/CHNY/2016[2009-10]Status: DisposedITAT Chennai21 Jan 2022AY 2009-10

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

For Appellant: Shri R. Vijayaraghavan (Advocate) – Ld. ARFor Respondent: Shri M. Murali, Ld. CIT-DR
Section 14ASection 32(2)

…s, it would have to be presumed that investments made by the assessee would be out of interest-free funds available with the assessee and no disallowance was warranted u/s 14A-CIT v. HDFC Bank Ltd. [2014] 366 ITR 505 (Bom), CIT V. Reliance Utilities and Power 313 ITR 340 (Bom) and CIT v. Hotel Savera 239 ITR 735 (Mad). 2.9 The Commissioner of Income Tax (Appeals) ought to have appreciated that the investment in M/s Modern Cotton Yarn Sinners Ltd. and M/s Southern Spinners and processors Ltd represent strategic investments. Further, no dividend was received from these investments, making it clear that these invest…

J.K.Fenner (India) Limited, Chennai vs. JCIT, Madurai

Appeal stand dismissed whereas the assessee’s appeal stands partly allowed for statistical purposes

ITA 1059/CHNY/2016[2008-09]Status: DisposedITAT Chennai21 Jan 2022AY 2008-09

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

For Appellant: Shri R. Vijayaraghavan (Advocate) – Ld. ARFor Respondent: Shri M. Murali, Ld. CIT-DR
Section 14ASection 32(2)

…s, it would have to be presumed that investments made by the assessee would be out of interest-free funds available with the assessee and no disallowance was warranted u/s 14A-CIT v. HDFC Bank Ltd. [2014] 366 ITR 505 (Bom), CIT V. Reliance Utilities and Power 313 ITR 340 (Bom) and CIT v. Hotel Savera 239 ITR 735 (Mad). 2.9 The Commissioner of Income Tax (Appeals) ought to have appreciated that the investment in M/s Modern Cotton Yarn Sinners Ltd. and M/s Southern Spinners and processors Ltd represent strategic investments. Further, no dividend was received from these investments, making it clear that these invest…

Mr. Subhash Goel, Pune vs. Deputy Commissioner of Income-Tax, Circle - 7, Pune

In the result, the appeal of the assessee in ITA No

ITA 565/PUN/2018[2014-15]Status: DisposedITAT Pune20 Jan 2022AY 2014-15

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl.

For Appellant: Shri Krishna GujarathiFor Respondent: Shri M. G. Jasnani
Section 14A

…ts in the AOP forms part of the total income. It was also contended that the assessee has enough capital and interest free funds to invest in partnership firms. The assessee had relied on the following judgments :- (i) CIT vs. Reliance Utilities & Power Ltd., 313 ITR 340 (Bom.-HC). (ii) CIT vs. HDFC Bank Ltd., 366 ITR 505 (Bom.- HC). 7. This submission of the assessee did not find favour with the Assessing Officer. He opined that the provisions of section 14A were applicable in all cases where the assessee has earned exempt income and it did not exclude any such case of exempt income from the ambit of disallowanc…

Rajendra Sitaram Goel, Pune vs. Deputy Commissioner of Income-Tax, Circle - 7, Pune

In the result, the appeal of the assessee in ITA No

ITA 535/PUN/2018[2014-15]Status: DisposedITAT Pune20 Jan 2022AY 2014-15

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl.

For Appellant: Shri Krishna GujarathiFor Respondent: Shri M. G. Jasnani
Section 14A

…ts in the AOP forms part of the total income. It was also contended that the assessee has enough capital and interest free funds to invest in partnership firms. The assessee had relied on the following judgments :- (i) CIT vs. Reliance Utilities & Power Ltd., 313 ITR 340 (Bom.-HC). (ii) CIT vs. HDFC Bank Ltd., 366 ITR 505 (Bom.- HC). 7. This submission of the assessee did not find favour with the Assessing Officer. He opined that the provisions of section 14A were applicable in all cases where the assessee has earned exempt income and it did not exclude any such case of exempt income from the ambit of disallowanc…

Mr. Annuj Goel, (Legal Heir of Late Umesh Goel), Pune vs. Deputy Commissioner of Income-Tax, Circle - 7, Pune

In the result, the appeal of the assessee in ITA No

ITA 564/PUN/2018[2014-15]Status: DisposedITAT Pune20 Jan 2022AY 2014-15

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl.

For Appellant: Shri Krishna GujarathiFor Respondent: Shri M. G. Jasnani
Section 14A

…ts in the AOP forms part of the total income. It was also contended that the assessee has enough capital and interest free funds to invest in partnership firms. The assessee had relied on the following judgments :- (i) CIT vs. Reliance Utilities & Power Ltd., 313 ITR 340 (Bom.-HC). (ii) CIT vs. HDFC Bank Ltd., 366 ITR 505 (Bom.- HC). 7. This submission of the assessee did not find favour with the Assessing Officer. He opined that the provisions of section 14A were applicable in all cases where the assessee has earned exempt income and it did not exclude any such case of exempt income from the ambit of disallowanc…

Annuj Goel, Pune vs. Deputy Commissioner of Income-Tax, Circle - 7, Pune

In the result, the appeal of the assessee in ITA No

ITA 403/PUN/2018[2014-15]Status: DisposedITAT Pune20 Jan 2022AY 2014-15

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl.

For Appellant: Shri Krishna GujarathiFor Respondent: Shri M. G. Jasnani
Section 14A

…ts in the AOP forms part of the total income. It was also contended that the assessee has enough capital and interest free funds to invest in partnership firms. The assessee had relied on the following judgments :- (i) CIT vs. Reliance Utilities & Power Ltd., 313 ITR 340 (Bom.-HC). (ii) CIT vs. HDFC Bank Ltd., 366 ITR 505 (Bom.- HC). 7. This submission of the assessee did not find favour with the Assessing Officer. He opined that the provisions of section 14A were applicable in all cases where the assessee has earned exempt income and it did not exclude any such case of exempt income from the ambit of disallowanc…

Deccan Mechanical & Chemical Industires Pvt.Ltd, Pune vs. Deputy Commissioner of Income-Tax, Circle - 8, Pune

In the result, the appeal is allowed

ITA 1663/PUN/2018[2015-16]Status: HeardITAT Pune18 Jan 2022AY 2015-16

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi"नधा"रण वष" / Assessment Year : 2015-16 Deccan Mechanical & Chemical Vs. Dcit, Industries Pvt. Ltd., Circle-8, Khandelwal Jain & Associates, Pune Alankar Cinema Building, Ist Floor, Above United Bank, Pune 411 001 Pan : Aaacd7365G Appellant Respondent

Section 14A

…nts made by the assessee yielding exempt income amounted to Rs.98.45 lakh. It is also equally admitted that the shareholders’ fund of the assessee stood at Rs.58.16 crore. 5. The Hon'ble Bombay High Court in CIT vs. Reliance 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 par…

Ub Ajanta Breweries Pvt.Ltd, Aurangabad vs. Assistant Commissioner of Income-Tax, Circle - 2, Aurangabad

In the result, the appeal is allowed

ITA 2952/PUN/2017[2011-12]Status: DisposedITAT Pune18 Jan 2022AY 2011-12

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi"नधा"रण वष" / Assessment Year : 2011-12 Ub Ajanta Breweries Pvt. Ltd., Vs. Acit, (Since Merged With United Breweries Circle-2, Ltd.,), Aurangabad Plot No.H-9 To 11, Midc Waluj, Aurangabad Pan : Aabca6594R Appellant Respondent

Section 143(3)Section 36(1)(iii)

…8.55 crore. Thus, it is manifest that the assessee’s shareholders’ fund is much more than the amount of advance given to sister concern. 3 UB Ajanta Breweries Pvt. Ltd., 4. The Hon'ble Bombay High Court in CIT vs. Reliance 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 i…

Excel Industries Ltd., Mumbai vs. The CIT -CC-6(3), Mumbai

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

ITA 238/MUM/2021[2016-17]Status: DisposedITAT Mumbai13 Jan 2022AY 2016-17

Bench: Shri Prashant Maharishi & Shri Pavan Kumar Gadaleexcel Industries Ltd Vs. The Cit-Cc 6(3) 184-87, Excel Estate, 19Th Floor, Air India Sv Road, Jogeshwari Bldg, Nariman Point, (West)Mumbai – 400102 Mumbai – 400 021. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaace2488F Appellant .. Respondent Appellant By : Mr.Kirit Kamdar. Ar Respondent By : Mr.Ajay Kumar. Dr Date Of Hearing 13.01.2022 Date Of Pronouncement 19.01.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Assessee Has Filed The Appeal Against The Order Of The Cit(A)-54, Mumbai Passed U/S 143(3) & 250 Of The Act. The Assessee Has Raised The Following Grounds Of Appeal. 1. On The Facts & In The Circumstances Of The Case & In Law, The Cit(A) Erred In Confirming The Action Of The Ao In Disallowing A Sum Of Rs. 1,00,50,000/- Out Of Interest Paid Attributable To Loan To A Subsidiary. 2. On The Facts & In The Circumstances Of The Case & In Law, The Cit(A) Erred In Confirming The Action Of The Ao In Levying An Amount Of Rs. 5,42,910/- On Account Excel Industries Ltd, Mumbai. Of Interest U/S 115P For Dividend Distributed Under Section 115-O, For Which Dividend Distribution Tax Had Already Been Paid. 3. On The Facts & In The Circumstances Of The Case & In Law, The Cit(A) Erred In Not Adjudicating The Ground On Additions Made To Book Profits U/S 115Jb.

For Appellant: Mr.Kirit Kamdar. ARFor Respondent: Mr.Ajay Kumar. DR
Section 115Section 115JSection 115PSection 143(2)Section 143(3)Section 14ASection 36(1)(iii)

…on of disallowance of interest charged by the A.O does not hold good and the submissions of the Ld.AR are supported with the Audited financial statements. We find that the Hon’ble High Court of Mumbai in the case of CIT Vs M/s Reliance Utilities and Power Ltd 313 ITR 340 (Mumbai) has held that “If the interest free funds available to the assessee sufficient to meet its investments and at the same time the assessee has raised a loan which can be presumed that investments were from the interest free funds”. We considering the factual aspects, financial statements, the assessee’s own case and the ratio of the decisi…

Hdfc Bank Ltd (Successor to Businss of Centurion Bank of Punjab Ltd), Mumbai vs. DCIT 2(3), Mumbai

In the result, appeal is partly allowed

ITA 374/MUM/2012[2008-09]Status: DisposedITAT Mumbai13 Jan 2022AY 2008-09

Bench: Shri G.S.Pannu (Hon’Ble) & Shri Saktijit Dey (Hon’Ble)

Section 14A

…free fund available is more than the investment made, the Hon’ble High Court, while deciding the writ application filed by the assessee against the order of the Tribunal, relied upon its own 7 decision in case of CIT vs Reliance Utilities & Power Ltd (2009) 313 ITR 340 (Bom) and CIT vs HDFC Bank Ltd (2014) 366 ITR 505 (Bom) to observe that where the assessee has a common pool of funds, it has to be presumed that the investment made is out of the interest free funds available with the assessee. He submitted, while drawing such presumption, availability of interest free funds as on the date of balance-sheet has t…

Sri Kishan Gopal Mohta, Kolkata vs. A.C.I.T., Circle-35, Kolkata

In the result, the appeal of the assessee is allowed

ITA 147/KOL/2020[2013-14]Status: HeardITAT Kolkata05 Jan 2022AY 2013-14

Bench: Shri A. T. Varkey, Jm & Shri Rajesh Kumar, Am]

Section 14A

…investment fund which yielded exempt income, no disallowance of interest invoking Rule 8D(2)(ii) of the Rules was warranted. For that we rely on the ratio of the decision of the Hon’ble Bombay High court in the case of Reliance Utilities & Powers Ltd. Vs. CIT 313 ITR 340 wherein the Hon’ble Bombay High court held that when the assessee is possessed of mixed funds which includes its own funds in sufficient quantity, the presumption is that its own funds were utilised for the advances is to be drawn. The aforesaid view of the Hon’ble Bombay High Court has been approved by the Hon’ble Supreme Court in the case of So…

First Overseas Capital Ltd, Mumbai vs. Deputy Commissioner of Income Tax(1)(2), Mumbai

In the result, the appeal of the assessee is dismissed

ITA 5242/MUM/2019[2015-16]Status: DisposedITAT Mumbai27 Dec 2021AY 2015-16

Bench: Shri Om Prakash Kant & Shri Kuldip Singhassessment Year: 2015-16 First Overseas Capital Limited, Dcit-1(1)(2), Ground Floor, Bhupen Room No. 533/579, 5Th Floor, Chambers, Dalal Street, Fort, Aayakar Bhavan, M.K. Road, Mumbai - 400001 Vs. Mumbai - 400020 Pan: Aaacl4337A (Appellant) (Respondent) Assessee By : Shri K Gopal (Ar) Revenue By : Shri Pinishetty Satya Prasanth (Dr) Date Of Hearing : 27/12/2021 Date Of Pronouncement: 29/12/2021

For Appellant: Shri K Gopal (AR)For Respondent: Shri Pinishetty Satya Prasanth (DR)
Section 143(3)

…rities are not justified in disallowing interest out of the interest expenditure claimed by the assessee. The Ld. Counsel of the assessee relied on the order of the Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd. reported in 313 ITR 340. 5. On the other hand, the Ld. Departmental Representative relied on the order of the lower authorities and submitted that as on the date of advancing loan, there were no sufficient funds available with assessee and loans have 3 Assessment Year: 2015-16 been advanced out of borrowed funds, thus, the Ld. CIT(A) is justified in upholding the disa…

M/S Jai Shardha Rice Mills, Jalandhar vs. Income Tax Officer, Nakodar

ITA 502/ASR/2017[2013-14]Status: DisposedITAT Amritsar24 Dec 2021AY 2013-14

Bench: Sh. Ravish Sood & Dr. M. L. Meena

For Appellant: Shri Ashray Sarna, CAFor Respondent: Smt Ratinder Kaur, DR
Section 143(1)Section 143(2)Section 143(3)Section 36

…essee to M/s. Khaira Trading company was called for. Our aforesaid view is supported by the judgments of the Hon’ble High Court of Bombay in the case of HDFC Bank Ltd vs. ACIT, 368 ITR 505 (Bom) and that in the case of Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom). In its aforesaid orders, the Hon’ble High Court had held that where interest free funds are available with the assessee, then, a presumption would arise that the investments made were from its interest free funds. In the backdrop of the facts involved in the case before us r.w the aforesaid settled position of law, we are of the considered…

M/S Jai Sharda Rice Mills, Jalandhar vs. Income Tax Officer, Nakodar

ITA 501/ASR/2017[2012-13]Status: DisposedITAT Amritsar24 Dec 2021AY 2012-13

Bench: Sh. Ravish Sood & Dr. M. L. Meena

For Appellant: Shri Ashray Sarna, CAFor Respondent: Smt Ratinder Kaur, DR
Section 143(1)Section 143(2)Section 143(3)Section 36

…essee to M/s. Khaira Trading company was called for. Our aforesaid view is supported by the judgments of the Hon’ble High Court of Bombay in the case of HDFC Bank Ltd vs. ACIT, 368 ITR 505 (Bom) and that in the case of Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom). In its aforesaid orders, the Hon’ble High Court had held that where interest free funds are available with the assessee, then, a presumption would arise that the investments made were from its interest free funds. In the backdrop of the facts involved in the case before us r.w the aforesaid settled position of law, we are of the considered…

Pragati Glass Pvt. Ltd., Bharuch vs. Assistant Commissioner of Income Tax, Circle, Bharuch

In the result, appeal of the assessee is allowed to the extent indicated above

ITA 261/SRT/2018[2012-13]Status: DisposedITAT Surat24 Dec 2021AY 2012-13

Bench: Shripawan Singh, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.261/Srt/2018 (िनधा"रणवष" / Assessment Year: (2012-13) (Virtual Court Hearing) Pragati Glass Pvt. Ltd., Assistant Commissioner Of Income V Kharach, Kosamba (R.S), Tax, Circle-1, Vadadora. S. Dist. Bharuch-394120 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabcp7377H (Assessee) (Respondent)

For Appellant: Shri Surendra Modiani, C.AFor Respondent: ShriDependra Kumar– Sr.DR
Section 143(3)

…This view gets support from the ratio laid down in the following cases: i) 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 (Bom), 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(l)(iii) has to be made. ii) Punjab Stainless Steel Industries v. CIT (2010) 324 ITR 396 (Del.) In this case, a…

K R Pradeep, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result, the appeal filed by the assessee for assessment year 2014-15 is allowed

ITA 416/BANG/2021[2017-18]Status: DisposedITAT Bangalore22 Dec 2021AY 2017-18

Bench: Shri George George K. & Shri B.R. Baskaran

For Appellant: Mrs. Girija G.P., AdvocateFor Respondent: Shri Pradeep Kumar, DR
Section 132Section 143(3)Section 14ASection 153A

…is clear from the said statement that the availability of profit, share capital and reserves & surplus was much more than investments made by the assessee which could yield tax free income. 41. The Hon'ble Bombay High Court in Reliance Utilities & Power Ltd. 313 ITR 340 (Bom) has held that where the interest free funds far exceed the value of investments, it should be considered that investments have been made out of interest free funds and no disallowance u/s. 14A towards any interest expenditure can be made. This view was again confirmed by the Hon'ble Bombay High Court in CIT v. HDFC Bank Ltd., ITA No.330 of…

K R Pradeep, Bangalore vs. Deputy Commissioner of Income Tax, Central Cirlce-1(3), Bangalore

In the result, the appeal filed by the assessee for assessment year 2014-15 is allowed

ITA 415/BANG/2021[2016-17]Status: DisposedITAT Bangalore22 Dec 2021AY 2016-17

Bench: Shri George George K. & Shri B.R. Baskaran

For Appellant: Mrs. Girija G.P., AdvocateFor Respondent: Shri Pradeep Kumar, DR
Section 132Section 143(3)Section 14ASection 153A

…is clear from the said statement that the availability of profit, share capital and reserves & surplus was much more than investments made by the assessee which could yield tax free income. 41. The Hon'ble Bombay High Court in Reliance Utilities & Power Ltd. 313 ITR 340 (Bom) has held that where the interest free funds far exceed the value of investments, it should be considered that investments have been made out of interest free funds and no disallowance u/s. 14A towards any interest expenditure can be made. This view was again confirmed by the Hon'ble Bombay High Court in CIT v. HDFC Bank Ltd., ITA No.330 of…

K R Pradeep, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result, the appeal filed by the assessee for assessment year 2014-15 is allowed

ITA 414/BANG/2021[2015-16]Status: DisposedITAT Bangalore22 Dec 2021AY 2015-16

Bench: Shri George George K. & Shri B.R. Baskaran

For Appellant: Mrs. Girija G.P., AdvocateFor Respondent: Shri Pradeep Kumar, DR
Section 132Section 143(3)Section 14ASection 153A

…is clear from the said statement that the availability of profit, share capital and reserves & surplus was much more than investments made by the assessee which could yield tax free income. 41. The Hon'ble Bombay High Court in Reliance Utilities & Power Ltd. 313 ITR 340 (Bom) has held that where the interest free funds far exceed the value of investments, it should be considered that investments have been made out of interest free funds and no disallowance u/s. 14A towards any interest expenditure can be made. This view was again confirmed by the Hon'ble Bombay High Court in CIT v. HDFC Bank Ltd., ITA No.330 of…

K R Pradeep, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result, the appeal filed by the assessee for assessment year 2014-15 is allowed

ITA 413/BANG/2021[2014-15]Status: DisposedITAT Bangalore22 Dec 2021AY 2014-15

Bench: Shri George George K. & Shri B.R. Baskaran

For Appellant: Mrs. Girija G.P., AdvocateFor Respondent: Shri Pradeep Kumar, DR
Section 132Section 143(3)Section 14ASection 153A

…is clear from the said statement that the availability of profit, share capital and reserves & surplus was much more than investments made by the assessee which could yield tax free income. 41. The Hon'ble Bombay High Court in Reliance Utilities & Power Ltd. 313 ITR 340 (Bom) has held that where the interest free funds far exceed the value of investments, it should be considered that investments have been made out of interest free funds and no disallowance u/s. 14A towards any interest expenditure can be made. This view was again confirmed by the Hon'ble Bombay High Court in CIT v. HDFC Bank Ltd., ITA No.330 of…

Samidha Foods Pvt Ltd., Raigarh vs. Asst. CIT 8 (1)(2), Mumbai

In the result, appeal of the assessee stands allowed

ITA 6497/MUM/2019[2013-14]Status: DisposedITAT Mumbai20 Dec 2021AY 2013-14

Bench: Shri Shamim Yahyai.T.A. No.6497/Mum/2019 (Assessment Year 2013-14) Vs. Acit-8(1)(2) Samidha Foods Midc, A-9/2 6Th Floor, Aaykar Bhawan Taloja Industrial Estate M.K.Road Raigarh-410 208 Mumbai-400 020 Pan : Aaecs7746Q (Appellant) (Respondent)

Section 36Section 36(1)Section 36(1)(iii)

…, interest expenditure for which is not allowable, the appellant can not take the plea of availability of these funds for making interest-free advances. Therefore, the decision of the jurisdictional High Court in the cases of Reliance Utilities and Power Ltd.(313 ITR 340) and HDFC Bank Ltd. in appeal no. 330 of 2012 vide order dated 23.07.2014 is not applicable to the facts of the case of the appellant. As regards, submission of the appellant regarding applicability of the ratio of decision of honourable Supreme Court in the case of SA Builders (supra), the appellant has not demonstrated any, commercial expedienc…