How many judgments cite CIT v. Reliance Utilities & Power Ltd.?

2,118 judgments on BharatTax cite CIT v. Reliance Utilities & Power Ltd. (313 ITR 340), spanning 2013 to 2026.

Which sections of the Income Tax Act does CIT v. Reliance Utilities & Power Ltd. come up under?

It is most often cited in judgments turning on Section 14A, Section 36(1)(iii), Section 143(3), Section 115JB, Section 8D, Section 10(34).

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 367,514 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 14A Section 36(1)(iii)Section 143(3)Section 115JB Section 8D Section 10(34)Section 143(2)Section 37(1)

Issues it is cited on

interest free advances disallowance of interest expenditure section 36(1)(iii)disallowance under section 14a commercial expediency disallowance u/s 14a section 14a book profits section 115j section 36(1)section 36 section 115jb

Judgments citing CIT v. Reliance Utilities & Power Ltd.

Assistant Commissioner of Income Tax, Central Circle-2(2), Bangalore vs. M/S Century Real Estate Holdings Pvt Ltd, Bangalore

In the result, the appeal filed by the revenue is partly allowed and the cross objection of the assessee is dismissed

ITA 1583/BANG/2017[2009-10]Status: DisposedITAT Bangalore28 Jun 2021AY 2009-10

Bench: Shri George George K. & Shri B.R. Baskaranassessmentyear:2009-10

For Appellant: Ms. Neera Malhotra, D.RFor Respondent: Shri Ramakrishnan, A.R

Section 14A

…much more than investments made by the assessee which could yield tax free income. ITA No.1583/Bang/2017 & CO 32/Bang/2019 M/s. Century Real Estate Holdings Pvt. Ltd., Bangalore Page 4 of 6 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…

Jsw Cement Ltd, Mumbai vs. DCIT 5 (2)(1), Mumbai

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

ITA 296/MUM/2019[2015-16]Status: DisposedITAT Mumbai25 Jun 2021AY 2015-16

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Jsw Cement Ltd., V. Dcit – 5(2)(1) Room No. 571, 5Th Floor 5Th Floor, Jsw Centre Aayakar Bhavan, M.K. Road Bandra Kurla Complex, Bandra(E) Mumbai – 400020 Mumbai - 400051 Pan: Aabcj6731B (Appellant) (Respondent) Assessee By : Shri Gaurav Kabra Department By : Shri Sanjeev Kashyap & Shri Vijay Kumar Menon

For Appellant: Shri Gaurav KabraFor Respondent: Shri Sanjeev Kashyap and Shri Vijay Kumar Menon

Section 14A

….2019, wherein the Tribunal deleted the disallowance made Under Rule 8D(2)(ii) of I.T. Rules following the decisions of the Hon'ble Jurisdictional High Court in the case of CIT v. HDFC Bank Ltd., [366 ITR 505] and CIT v. Reliance Utilities & Power Pvt. Ltd., [313 ITR 340] held that no disallowance under Rule 8D(2)(ii) of I.T.Rules is warranted when the assessee has its own interest free funds more than the investments. The Tribunal also directed the Assessing Officer to verify this fact and if the reserves and surplus interest free funds of the assessee were more than the investments, then there shall not be any…

M/S Xindia Steels Ltd, Koppal vs. The Assistant Commissioner of Income Tax Circle-7(1)(2), Bangalore

In the result, the appeal filed by the assessee is partly allowed

ITA 1605/BANG/2018[2013-14]Status: DisposedITAT Bangalore23 Jun 2021AY 2013-14

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year: 2013-14

For Appellant: Smt. Sheethal Borkar, A.RFor Respondent: Ms. Neera Malhotra, D.R

…t the beginning and end of the year worth Rs.367.92 crores and Rs.416.53 crores respectively. The interest free advances given by the assessee is Rs.87.30 crores as on 31.3.2013. It has been held by Hon'ble Bombay High Court in Reliance Utilities & Power Ltd. 313 ITR 340 (Bom) 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. Accordingly, the interest disallowance is not called for in the present case. 8. Even though the A.O. has observed that the Ld. A.R. has accepted for the addition of interest expenditur…

DCIT, C-5, Ludhiana vs. M/S Hero Cycles Ltd., Ludhiana

In the result, appeal of the Department is dismissed and the Cross

ITA 1493/CHANDI/2017[2011-12]Status: DisposedITAT Chandigarh15 Jun 2021AY 2011-12

For Appellant: Shri Subhash Aggarwal, AdvocateFor Respondent: Smt. C. Chandrakanta, CIT

Section 10(38)Section 143(1)Section 14ASection 36(1)(iii)

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “ए” , च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI , R.L. NEGI, JM आयकर अपील सं./ ITA NO. 1493/Chd/2017 "नधा"रण वष" / Assessment Year : 2011-12 Dy. CIT M/s Hero Cycles Ltd. बनाम Circle-5, Ludhiana G.T. Road, Hero Nagar Ludhiana "थायी लेखा सं./PAN NO: AAACH4073P अपीलाथ"/Appellant ""यथ"/Respondent CROSS OBJECTION NO. 4/CHD/2018 (आयकर अपील सं./ ITA NO. 1493/Chd/2017) "नधा"रण वष" / Assessment Year : 2011-12 M/s Hero Cycles Ltd. Dy. CIT बनाम G.T.…

DCIT Corporate Circle 6(2), Chennai vs. Sundaram Clayton Ltd., Chennai

In the result, appeals filed by Revenue and the assessee

ITA 1376/CHNY/2018[2013-14]Status: DisposedITAT Chennai14 Jun 2021AY 2013-14

Bench: Shri V.Durga Rao & Shri G.Manjunatha

For Respondent: Mr. Vikram Vijayaraghavan

Section 14ASection 251(1)(a)Section 260ASection 32(1)(iia)Section 35

…rds interest expenditure, when assessee has sufficient own funds, which is over and above the amount of investments in exempt bearing investments. We further noted that the Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities &Power Ltd. ( 33 ITR 340) has held that when mixed funds are used for making investments in exempt bearing investments, then it would have to be presumed that investments made in exempt bearing investments are out interest free funds available with the assessee. In this case, the assessee has filed necessary details to prove that it has own funds in excess of investment…

Sundaram Clayton Limited, Chennai vs. DCIT Corporate Circle 6(2), Chennai

In the result, appeals filed by Revenue and the assessee

ITA 1356/CHNY/2018[2014-15]Status: DisposedITAT Chennai14 Jun 2021AY 2014-15

Bench: Shri V.Durga Rao & Shri G.Manjunatha

For Respondent: Mr. Vikram Vijayaraghavan

Section 14ASection 251(1)(a)Section 260ASection 32(1)(iia)Section 35

Sundaram Clayton Limited, Chennai vs. DCIT Corporate Circle 6(2), Chennai

In the result, appeals filed by Revenue and the assessee

ITA 1355/CHNY/2018[2013-14]Status: DisposedITAT Chennai14 Jun 2021AY 2013-14

Bench: Shri V.Durga Rao & Shri G.Manjunatha

For Respondent: Mr. Vikram Vijayaraghavan

Section 14ASection 251(1)(a)Section 260ASection 32(1)(iia)Section 35

DCIT Corporate Circle 6(2), Chennai vs. Sundaram Clayton Ltd., Chennai

In the result, appeals filed by Revenue and the assessee

ITA 1254/CHNY/2018[2014-15]Status: DisposedITAT Chennai14 Jun 2021AY 2014-15

Bench: Shri V.Durga Rao & Shri G.Manjunatha

For Respondent: Mr. Vikram Vijayaraghavan

Section 14ASection 251(1)(a)Section 260ASection 32(1)(iia)Section 35

DCIT Circle-6 (3)(2), Mumbai vs. M/S Kohinoor Planet Construction Pvt Ltd., Mumbai

In the result, appeal of the Revenue is dismissed

ITA 7004/MUM/2019[2012-13]Status: DisposedITAT Mumbai11 Jun 2021AY 2012-13

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

For Appellant: NoneFor Respondent: Shri Gurbinder Singh

Section 115JSection 143(2)Section 143(3)Section 14A

…hich were far in excess of the investments that are capable of yielding exempt income. Thus, the Ld.CIT(A) following the decisions of the Hon'ble Bombay High Court in the case of CIT v. HDFC Bank Ltd [366 ITR 505] and CIT v. Reliance Utilities and Power Ltd. [313 ITR 340] deleted the disallowance. Following the ratio of the decisions of the Hon'ble Bombay High Court that a presumption arises that when assessee is having own funds much more than the investments that are capable of yielding exempt income were made out of the own funds of the assessee and no interest bearing borrowed funds were utilized for the said…

Richa Holdings Limited, Faridabad vs. ITO Ward- 2(2), Faridabad

In the result, the appeal of the assessee is allowed

ITA 1541/DEL/2020[2016-17]Status: DisposedITAT Delhi08 Jun 2021AY 2016-17

Bench: Shri Kul Bharatassessment Year : 2016-17 M/S. Richa Holdings Ltd., Vs Ito, Plot No.29, Dlf Industrial Ward-2(2), Area, Phase-Ii, Faridabad. Faridabad. Pan-Aabcc7401M Appellant Respondent Appellant By Sh. I.P.Bansal, Adv. & Sh. Vivek Bansal, Adv. Respondent By Sh. Farhat Khan, Sr.Dr Date Of Hearing 01.04.2021 Date Of Pronouncement 08.06.2021

Section 143(3)Section 14ASection 36

…ny and placed reliance on the judgement of Hon’ble Supreme Court in the case of CIT vs Reliance Industries Ltd. [2019] 3 | P a g e 410 ITR 466 (SC) and also on the judgement of Hon’ble Bombay High Court in the case of CIT vs Reliance Utilities and Power Ltd. 313 ITR 340 (Bombay) to buttress the contention that when the interest free funds were available with the assessee, therefore, in the light of the above judgements, disallowance was not called for. 6. Ld. Sr. DR vehemently opposed these submissions and supported the orders of the authorities below. He contended that the Assessing Officer has categorically s…

DCIT 12 (2)(2), Mumbai vs. M/S India Infoline Finance Limited, Mumbai

In the result, all the four appeals filed by the revenue are dismissed

ITA 3055/MUM/2019[2010-11]Status: DisposedITAT Mumbai07 Jun 2021AY 2010-11

Bench: Shri M Balaganesh & Shri Pavan Kumar Gadale

For Appellant: Ms. Shreekala Pardeshi, DRFor Respondent: None

Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 14A

…ine Investment Services Limited, Mumbai ITA no3055/ 3056/3057/3058/M/2019. investments are much less than the available surplus balances. The CIT(A) has relied on the Hon’ble Jurisdictional High Court decision in the case of Reliance Utilities and Power ltd. (313 ITR 340) and HDFC Bank Ltd (383 ITR 529) and Honble Tribunal decisions. Further, the revenue has filed the SLP before the Honble Supreme Court in the case of Reliance utilities and Power Ltd. And it was dismissed. We find that the assessee has sufficient funds for making investments and the A.O has not doubted the availability of the funds but made disal…

M/S. D.Khushalbhai Jewellers, Surat vs. Asstt. Commissioner of Income Tax, Surat

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

ITA 822/AHD/2015[2010-11]Status: DisposedITAT Surat13 May 2021AY 2010-11

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita No.822/Ahd/2015 ("नधा"रणवष" / Assessment Years: (2010-11) (Virtual Court Hearing) M/S. D. Khushalbhai Jewellers, Vs. The Acit, Circle-3, 1, Khandwala Estate, Parle Point, Surat. Surat. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabfd7547G (Assessee) (Respondent)

For Appellant: Shri Mehul Patel, ARFor Respondent: Ms Usha Shrote, Sr. DR

Section 143(3)Section 40

…end. These interest free funds could easily take care of interest free advances amounting to Rs.3.42 cores. In order to fortify ourselves, we make reference to the decision of Hon’ble Bombay high Court in the case of CIT Vs. Reliance utilities and Power Ltd., 313 ITR 340 (Bom) and CIT Vs. Reghuvir Synthetics ltd., 354 ITR 222 (Guj). Therefore, we allow this ground of appeal and delete addition of Rs.24,48,592/-.” 10. We note that Coordinate Bench in the case of Nik-San Engineering Co. Ltd(supra) has relied on the judgment of the Hon`ble Bombay High Court in the case of Reliance utilities and Power Ltd., 313 ITR…

Assistant Commissioner of Income-Tax, Circle - 6, Pune vs. Sulzer India Pvt.Ltd, Pune

In the result, CO No.04/PUN/2021 filed by the assessee is allowed

ITA 246/PUN/2018[2013-14]Status: DisposedITAT Pune07 May 2021AY 2013-14

Bench: Shri R.S.Syal & Shri S.S. Viswanethra Raviआयकर अपील सं. / Ita No. 246/Pun/2018 धनधाारण वषा / Assessment Year : 2013-14 The Assistant Commissioner Of Income Tax, Circl-6, Pune .......अपीलाथी / Appellant बनाम / V/S. Sulzer India Pvt. Ltd. Gat No.304, At Post-Kondhapuri, Off Pune Nagar Road, Taluka- Shirur, Pune-412 209 Pan : Aaacs7876D ……प्रत्यथी / Respondent

For Appellant: Shri Ronak DoshiFor Respondent: Shri Mahadevan A M Krishnan

Section 37

…he contentions made before the Assessing Officer that no disallowance is warranted in the absence of exempt income. The assessee also relied on the decision of the Hon‟ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Power Limited reported in 313 ITR 340. The Ld. CIT(A) did not consider the submissions of the assessee and confirmed the order of the Assessing Officer. 16. Admittedly the fact remains undisputed that there was no exempt income earned by the assessee. It is a settled principle that no disallowance could be made u/s.14A of the Act when there is no exempt income. The Hon‟ble High Cour…

M/S Sinnar Thermal Power Ltd(Formerly Rattanindia Nasik Power Ltd), Delhi vs. Dy CIT CC 6 (4), Mumbai

ITA 252/MUM/2020[2016-17]Status: DisposedITAT Mumbai05 May 2021AY 2016-17

Section 143(3)

…ase, there could be no disallowance of interest under second limb of Rule 8D(2) of the Rules. Reliance in this regard has been rightly placed on the decisions of Hon‟ble Jurisdictional High Court in the case of Reliance Utilities and Power Limited reported in 313 ITR 340 (Bom) ; HDFC Bank Ltd reported in 366 ITR 505 (Bom) and 383 ITR 529 (Bom). With regard to Asst Year 2017-18 is concerned, we find that the ld AO had resorted to compute the disallowance u/s 14A of the Act read with Rule 8D(2) of the Rules by not applying the revised computation mechanism provided in the said rule with effect from 2.6.2016. 8.7. R…

M/S Baul Msk Infrastructure Private Ltd, Mumbai vs. ACIT - 15(1)(2), Mumbai

Accordingly, the aforesaid issue is restored to the file of the A.O in terms of our aforesaid directions. The Ground of appeal No. 2 is allowed for statistical purpose

ITA 3244/MUM/2019[2012-13]Status: DisposedITAT Mumbai22 Apr 2021AY 2012-13

Bench: Shri Pramod Kumar () & Shri Ravish Sood () M/S Bul Msk Infrastructure Pvt. Acit -15(1)(2), Ltd., 1008, 10Th Floor –V, Vs. Room No. 403, 4Th Floor Time Square, Plot No. 3, Aayakar Bhavan, M.K. Road, Sector 14, Belapur Cbd, Mumbai 400 020 Navi Mumbai- 400614 Pan No. Aaccb9447M (Assessee) (Revenue) Assessee By : Shri Devendra Jain, A.R Revenue By : Shri Tharian Oommen, Sr. D.R Date Of Hearing : 23/03/2021 Date Of Pronouncement : 22/04/2021

For Appellant: Shri Devendra Jain, A.RFor Respondent: Shri Tharian Oommen, Sr. D.R

Section 143(1)Section 143(2)Section 143(3)Section 32Section 36(1)(iii)

…ITA No. 3244/Mum/2019 A.Y. 2012-13 1 M/s Bul MSK Infrastructure Pvt. Ltd. Vs. ACIT-15(1)(2) IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B” MUMBAI BEFORE SHRI PRAMOD KUMAR (VICE PRESIDENT) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) M/s Bul MSK Infrastructure Pvt. ACIT -15(1)(2), Ltd., 1008, 10th Floor –V, Vs. Room No. 403, 4th Floor Time Square, Plot No. 3, Aayakar Bhavan, M.K. Road, Sector 14, Belapur CBD, Mumbai 400 020 Navi Mumbai- 400614 PAN No. AACCB9447M (Assessee) (Revenue) Assessee by : Shri Devendra Jain, A.R Revenue by : Shri Tharian Oommen, Sr. D.R Date of Hearing : 23/03/2021 Date of pronounce…

Bharat Financial Inclusion Limited, Hyderabad vs. Dy.Commissioner of Income Tax, Circle-1(2), Hyderabad

In the result, appeal of the revenue in ITA No

ITA 907/HYD/2019[2014-15]Status: DisposedITAT Hyderabad20 Apr 2021AY 2014-15

Bench: Shri Satbeer Singh Godara & Laxmi Prasad Sahuassessment Year: 2014-15 Bharat Financial Inclusion Vs. Dy. Commissioner Of Ltd., Hyderabad. Income-Tax, Circle – 1(2), Hyderabad. Pan-Aaics2940J (Appellant) (Respondent) Assessment Year: 2012-13 Dy. Commissioner Of Vs. Bharat Financial Inclusion Income-Tax, Ltd., Hyderabad. Circle – 1(2), Hyderabad Pan-Aaics2940J (Appellant) (Respondent) Assessee By: Shri K.C. Devdas Revenue By: Shri Sunil Kumar Pandey Date Of Hearing: 22/02/2021 Date Of Pronouncement: 20/04/2021

For Appellant: Shri K.C. DevdasFor Respondent: Shri Sunil Kumar Pandey

Section 143(3)Section 43B

…t the loan to trust has been made from such internal accruals and not from :- 8 -: ITA Nos. 907/Hyd/2019 & 252/H/18 Bharat Financial Inclusion Ltd., Hyd. borrowings. In this connection, the assessee relied on the CIT Vs. Reliance Utilities and Power Ltd., [313 ITR 340] (Bombay HC) wherein the High Court held that if there are interest free funds available which is sufficient to meet the investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest free funds available. The AR of the assessee submitted that no fresh loans were taken during the imp…

Dy. Commissioner of Income Tax, Circle-1(2), Hyderabad vs. Bharat Financial Inclusion Limited(Formerly Sks Microfinance Limited), Hyderabad

In the result, appeal of the revenue in ITA No

ITA 252/HYD/2018[2012-13]Status: DisposedITAT Hyderabad20 Apr 2021AY 2012-13

For Appellant: Shri K.C. DevdasFor Respondent: Shri Sunil Kumar Pandey

Section 143(3)Section 43B

Bspn Industries Private Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-1(2), Hyderabad

Appeal is allowed

ITA 2008/HYD/2018[2013-14]Status: DisposedITAT Hyderabad19 Apr 2021AY 2013-14

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri K.C. Devdas, ARFor Respondent: Sh. Rohit Muzumdar, CIT-D.R

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

…f Rs.6,31,05,522/- which leads us to a presumption that the necessary inference in such a factual backdrop is that all advances made that are interest free funds only. Case law CIT vs. Reliance Industries 410 ITR 466 (SC) ad CIT vs. Reliance Utilities & Power 313 ITR 340 (Bom.) hold that when interest free funds exceed the interest free advances, it cannot be held that interest bearing funds have been diverted for non-business purposes. We thus reverse the impugned disallowance on merits as well. The assessee succeeds in this sole substantive grievance. This assessee’s appeal is allowed. Order pronounced in Open…

M/S Ginni Goldlimited, New Delhi vs. ACIT, New Delhi

In the result, the appeal filed by the assessee is partly allowed

ITA 673/DEL/2015[2009-10]Status: DisposedITAT Delhi15 Apr 2021AY 2009-10

Bench: Shri R.K. Panda & Ms. Suchitra Kambleassessment Year : 2009-10

For Appellant: Sh. Hiren Mehta, CAFor Respondent: Sh. Jagdish Singh, Sr. DR

Section 36(1)(iii)Section 37(1)

…cer on the ground that the assessee is not into business of lending of money. It is the submission of the learned counsel for the assessee that in view of the decision of Hon’ble Bombay High Court in the case of Reliance Utilities and Power Ltd. reported in (313 ITR 340)(Bom.) wherein, it has been held that where an assessee has own funds as well as borrowed funds, a presumption can be made that the advances for non business purpose have been made out of own funds and that the borrowed funds have not been used for the business purpose. According to the learned counsel for the assessee, since, own capital and…

Hero Motocrop Ltd., New Delhi vs. ACIT, Circle- 11(1), New Delhi

The appeal of the assessee is partly allowed

ITA 9187/DEL/2019[2015-16]Status: DisposedITAT Delhi13 Apr 2021AY 2015-16

Bench: Shri Sudhanshu Srivastava & Shri O.P. Kantassessment Year: 2015-16

Section 115JSection 143(3)Section 144CSection 145ASection 80ISection 92C

…xman 370 (Cal) - CIT v. Caroline Investment Ltd.: 87 Taxman 238 (Cal) - CIT v. Kanoria Investment (P) Ltd.: 232 ITR 7 (Cal) - CIT vs. Hotel Savera: 239 ITR 795 (Mad) - Smt. Chanchal Katyal v. CIT: 298 ITR 182 (All.) - CIT v. Reliance Utilities and Power Ltd.: 313 ITR 340 (Bom) - CIT v. HDFC Bank Ltd.: 284 CTR 414 (Bom.) - Hero Honda Finlease Ltd vs. ACIT: ITA No. 3726 & 6102/Del/2012 (Del) Hero Motocorp Ltd. vs. ACIT 40.0.4 Reliance was also placed on the following cases, wherein, the Courts have repeatedly held that interest expenditure cannot be disallowed under section 14A of the Act, where the assessee had s…