CIT v. Reliance Utilities & Power Ltd.

DCIT-14(3)(1), Mumbai vs. M/S Titan Laboratories Pvt Ltd., Mumbai

In the result, appeals of the assessee are partly allowed as indicated above and appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…he financial statements that the appellant has sufficient own funds (share capital and reserve and surplus) to make the investments on equities. Therefore, in view of 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, there is no case for disallowance of any interest under rule 8D(2)(ii). The disallowance calculated under rule 8D(2)(ii) is deleted. Similarly, disallowance under section 14A of the IT Act can not exceed the exempt income earned by the appellant. In view of the decision of…

Titian Laboratories P.Ltd, Mumbai vs. DCIT Cir 10(2), Mumbai

In the result, appeals of the assessee are partly allowed as indicated above and appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…he financial statements that the appellant has sufficient own funds (share capital and reserve and surplus) to make the investments on equities. Therefore, in view of 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, there is no case for disallowance of any interest under rule 8D(2)(ii). The disallowance calculated under rule 8D(2)(ii) is deleted. Similarly, disallowance under section 14A of the IT Act can not exceed the exempt income earned by the appellant. In view of the decision of…

Titian Laboratories P.Ltd, Mumbai vs. DCIT Cir 10(2), Mumbai

In the result, appeals of the assessee are partly allowed as indicated above and appeal of the Revenue is dismissed

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…he financial statements that the appellant has sufficient own funds (share capital and reserve and surplus) to make the investments on equities. Therefore, in view of 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, there is no case for disallowance of any interest under rule 8D(2)(ii). The disallowance calculated under rule 8D(2)(ii) is deleted. Similarly, disallowance under section 14A of the IT Act can not exceed the exempt income earned by the appellant. In view of the decision of…

Asst CIT 14(2)(1), Mumbai vs. Itd Cementation India Ltd, Mumbai

The appeal stand dismissed

Bench: Hon’Ble Shri Pavan Kumar Gadale, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.5313/Mum/2015 (धििाारण वर्ा / Assessment Year: 2011-12) Acit – 14(2)(1) M/S Itd Cementation India Ltd. Room No. 474, 4Th Floor बिाम/ National Plastic Building, A-Subhash Road, Aaykar Bhavan, M. K. Road, Paranjape B Scheme, Vile Parle(E), Vs. Mumbai-400 020 Mumbai-400 057 स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aaact-1426-A (अपीलाथी/Appellant) : (प्रत्यथी / Respondent) अपीलाथीकीओरसे/ Appellant By : Shri Sunil Kumar Mishra-Ld. Sr.Dr प्रत्यथीकीओरसे/Respondent By : Shri Vijay Mehta-Ld. Ar सुनवाईकीतारीख/ : 06/09/2021 Date Of Hearing घोषणाकीतारीख / : 06/09/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (): -

…pening as well as closing interest free funds in the shape of capital and free reserves were more than investments made in the joint ventures. Therefore, in terms of the decision of Hon’ble Bombay High Court in CIT V/s Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom), it was to be presumed that the investments were made out of interest free funds available with the assessee. Therefore, interest disallowance was to be deleted. Aggrieved, the revenue is in further appeal before us. 4.3 We find that the aforesaid position that interest free funds as available with the assessee were more than the investment…

DCIT Circle- 3 (3)(1), Mumbai vs. M/S Reliance Industrial Investment & Holdings Ltd, Mumbai

The appeal stand dismissed

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील िं./ I.T.A. No. 37/Mum/2020 (धििाारण वर्ा / Assessment Year: 2013-14) Dcit Circle – 3(3)(1), M/S Reliance Industrial R. No. 609, 6Th Floor बिाम/ Investment & Holdings Ltd. 9Th Floor, Maker Chambers Iv, 222 Aaykar Bhavan, M. K. Road Vs. Mumbai-400 020 Nariman Point, Mumbai-400 021 स्थायीलेखा िं./ जीआइआर िं./ Pan/Gir No. Aaacr-5053-R (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Revenue By : Shri Vinay Sinha, Ld. Cit-Dr Assessee By : Shri Nimesh Bora, Ld. Ar ुनवाई की तारीख/ : 10/08/2021 Date Of Hearing घोषणा की तारीख / : 01/09/2021 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Revenue For Assessment Year (Ay) 2013-14 Arises Out Of The Order Of Learned Commissioner Of Income-Tax (Appeals)-8, Mumbai [Cit(A)], Dated 24/10/2019 In The Matter Of Assessment Framed By Ld. Ao U/S 143(3) Of The Act On 29/12/2016. The Ground Raised By The Revenue Read As Under: - 1. Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld.Cit(A) Was Justified In Holding That Amount Has Been Given On Commercial Expediency Without Appreciating That The Assessee Has Not Given Any Credible

…owance u/s 36(1)(iii) was to be computed by taking average rate of borrowings. For the said poposition, reliance was placed on the decision of Hon’ble Supreme Court in CIT V/s Reliance Industries Ltd. (410 ITR 466) and CIT V/s Reliance Utilities & Power Ltd. (313 ITR 340) wherein it was held that in case interest free funds were available the assessee, it could be presumed that the investments were made from interest free funds. 7.3 The Ld. CIT(A), after going through assessee’s submissions, concurred that the loans were given out of commercial expediency and out of business exigency, namely to develop a Special…

Sicom Ltd., Mumbai vs. Dy CIT Circle- 3 (3)(1), Mumbai

Bench: Shri S.Rifaur Rahman () & Shri Ravish Sood () M/S Sicom Ltd. Dy. Commissioner Of Income Solitaire Corporate Park, Vs. Tax, Circle 3(3)(1), Building No.4, Chakala, 6Th Floor, Room No. 609, Andheri (East), Aayakar Bhavan, M.K. Road, Mumbai – 400 093 Mumbai – 400 020 Pan No. Aaacs5524J (Assessee) (Revenue) Assessee By : Shri Rajan Vora, A.R Revenue By : Shri Ajay Pratap Singh, D.R Date Of Hearing : 25/08/2021 Date Of Pronouncement : 27/08/2021

…he interest-free funds available with it. It was submitted by the ld. A.R that the aforesaid issue was squarely covered in favour of the assessee by the order of the Hon‟ble High Court of Bombay in the case of CIT Vs. Reliance Utilities and Powers Ltd. (2009) 313 ITR 340 (Bom). 5. Per contra, the ld. Departmental Representative (for short „D.R‟) relied on the orders of the lower authorities. 6. We have heard the ld. Authorized Representative for both the parties, perused the orders of the lower authorities and the material available on record, as well as considered the judicial pronouncements that have been press…

Dy CIT CC 4 (1), Mumbai vs. M/S Kanakia Spaces Pvt Ltd., Mumbai

The appeal of the revenue is dismissed

Bench: Shri S.Rifaur Rahman () & Shri Ravish Sood () Dy. Commissioner Of Income Tax, M/S Kanakia Spaces Pvt. Ltd. Central Circle – 4(1), Vs. 10Th Floor, 215 Atrium, Andheri Room No. 1918, 19Th Floor, Kurla Road, Andheri (E) Air India Building, Nariman Point, Mumbai – 400 059 Mumbai – 400 021 Pan No. Aaack2629J (Revenue) (Assessee) Assessee By : Shri Anuj Kisnadwala, A.R Revenue By : Shri Gurbinder Singh, D.R Date Of Hearing : 11/08/2021 Date Of Pronouncement : 24/08/2021

…rection to re-adjudicate the same after verifying the factum of availability of sufficient self-owned and interest free funds with the assessee in light of the judgment of the Hon‟ble High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Ltd. 313 ITR 340 (Bom). It was submitted by the ld. A.R that the A.O giving effect to the aforesaid directions of the Tribunal had vide his order passed u/s 143(3) r.w.s 254 of the Act, dated 05.07.2019 observed that the interest free loans and advances given by the assessee were old loans that were advanced way back in the preceding years i.e A.Y. 2005-06, A.Y.…

ACIT Circle- 16 (1), Mumbai vs. M/S Tata Sky Ltd., Mumbai

In the result, revenue’s appeals are dismissed and assessee’s appeals are allowed for statistical purpose

Bench: Shri Shamim Yahya (Am) & Shri Pavan Kumar Gadale (Jm)

…decision as held in K. Somasundaram and Brothers vs. CIT 238 ITR 939 (MAD) is more relevant in the instant case? 2.5 Without prejudice to the contentions above, it is submitted that even if the decision of Bombay High Court in Reliance Utilities and Power Ltd 313 ITR 340 is 3 Tata Sky Limited found applicable, the Ld. CIT(A) ought to have recommended disallowance on a proportionate basis and ought not to have allowed the entire expenditure? 2.6 Whether on the facts and in the circumstances of the case and in law, the decision relied upon by the Ld. CIT(A) to delete the disallowances made by the AO is distinguish…

Tata Sky Limited, Mumbai vs. Asst CIT Range 16 (1), Mumbai

In the result, revenue’s appeals are dismissed and assessee’s appeals are allowed for statistical purpose

Bench: Shri Shamim Yahya (Am) & Shri Pavan Kumar Gadale (Jm)

…decision as held in K. Somasundaram and Brothers vs. CIT 238 ITR 939 (MAD) is more relevant in the instant case? 2.5 Without prejudice to the contentions above, it is submitted that even if the decision of Bombay High Court in Reliance Utilities and Power Ltd 313 ITR 340 is 3 Tata Sky Limited found applicable, the Ld. CIT(A) ought to have recommended disallowance on a proportionate basis and ought not to have allowed the entire expenditure? 2.6 Whether on the facts and in the circumstances of the case and in law, the decision relied upon by the Ld. CIT(A) to delete the disallowances made by the AO is distinguish…