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 367,518 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.

ACIT, Circle - 13(2), Kolkata vs. M/S. Padma Logistics & Khanij Private Limited, Kolkata

In the result, the revenue’s appeal is partly allowed for statistical purposes

ITA 606/KOL/2018[2010-11]Status: DisposedITAT Kolkata22 May 2020AY 2010-11

Bench: "ी जे. सुधाकर रे"डी, लेखा सद"य एवं/And "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri J. Sudhakar Reddy, Am & Shri A. T. Varkey, Jm]

Section 142(1)Section 143(2)Section 14ASection 2

…sufficient to invest in non-business activities, a presumption drawn is that the said investment is made out of own funds. For this proposition of law, we rely on the judgment of Hon’ble Bombay High court in the case of CIT Vs. Reliance Utilities & Power Ltd. 313 ITR 340 and hold that no disallowance under rule 8D(2)(ii) is warranted. However, we are of the opinion that disallowance under Rule 8D(2)(iii) needs to be recomputed accordingly as per the law laid in REI Agro Ltd. Vs. DCIT (2013) 36 CCH0360 (Kol. Trib.) wherein it was held that – “Thus, not all investments become the subject matter of consideration wh…

The DCIT, Cochin vs. M/S.Aspinwall & Co. Ltd, Cochin

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

ITA 133/COCH/2017[2012-13]Status: DisposedITAT Cochin19 May 2020AY 2012-13

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

Section 14A

…the records that there were sufficient own funds available with the appellant for making the said investments. In this regard, reliance is placed on the decision of the High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Limited reported in 313 ITR 340. 3. The facts of the case are that the assessee earned exempt income of Rs.6,59,278/- and against total investment of Rs.4,17,46,194/- in the mutual funds of the sister concerns, the interest bearing funds were to the tune of Rs.22,17,68,481/-. Since assessee had huge interest bearing funds and investments were made in the mutual funds of sister…

M/S Aspinwall & Co., Ltd, Cochin vs. The ACIT, Cochin

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

ITA 128/COCH/2017[2012-13]Status: DisposedITAT Cochin19 May 2020AY 2012-13

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

Section 14A

…the records that there were sufficient own funds available with the appellant for making the said investments. In this regard, reliance is placed on the decision of the High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Limited reported in 313 ITR 340. 3. The facts of the case are that the assessee earned exempt income of Rs.6,59,278/- and against total investment of Rs.4,17,46,194/- in the mutual funds of the sister concerns, the interest bearing funds were to the tune of Rs.22,17,68,481/-. Since assessee had huge interest bearing funds and investments were made in the mutual funds of sister…

Aspinwall & Company Ltd, Cochin vs. The ACIT, Cochin

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

ITA 61/COCH/2015[2006-07]Status: DisposedITAT Cochin19 May 2020AY 2006-07

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

Section 14A

…the records that there were sufficient own funds available with the appellant for making the said investments. In this regard, reliance is placed on the decision of the High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Limited reported in 313 ITR 340. 3. The facts of the case are that the assessee earned exempt income of Rs.6,59,278/- and against total investment of Rs.4,17,46,194/- in the mutual funds of the sister concerns, the interest bearing funds were to the tune of Rs.22,17,68,481/-. Since assessee had huge interest bearing funds and investments were made in the mutual funds of sister…

Aspinwall & Company Ltd, Cochin vs. The ACIT, Cochin

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

ITA 60/COCH/2015[2006-07]Status: DisposedITAT Cochin19 May 2020AY 2006-07

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

Section 14A

…the records that there were sufficient own funds available with the appellant for making the said investments. In this regard, reliance is placed on the decision of the High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Limited reported in 313 ITR 340. 3. The facts of the case are that the assessee earned exempt income of Rs.6,59,278/- and against total investment of Rs.4,17,46,194/- in the mutual funds of the sister concerns, the interest bearing funds were to the tune of Rs.22,17,68,481/-. Since assessee had huge interest bearing funds and investments were made in the mutual funds of sister…

Punjab National Bank, New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the revenue is dismissed and the appeal of the assessee is allowed

ITA 3041/DEL/2017[2013-14]Status: DisposedITAT Delhi13 May 2020AY 2013-14

Bench: Sh. Bhavnesh Sainidr. B. R. R. Kumarita No. 2954/Del/2012 : Asstt. Year : 2013-14 Dcit, Vs M/S Punjab National Bank, Circle-20(1), Ho: Finance Division, 5, Sansad New Delhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp0165G

For Appellant: Sh. S. Krishnan, AdvFor Respondent: Smt. Sushma Singh, CIT DR
Section 142(1)

…investments made in assets earning tax free income, the presumption is that the investments have come out of interest free funds only. Similar view was also taken by the Hon'ble High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Ltd (2009) 313 ITR 340. 4.11 Without prejudice to above, it is further submitted that even if rule 8D is made applicable to the Bank, then no disallowance in relation to income arising from the value of the investment which yield both taxable and tax free income can be made since in the formula given in rule 8D is only the average value of investment, income from which…

DCIT, New Delhi vs. M/S. Punjab National Bank, New Delhi

In the result, the appeal of the revenue is dismissed and the appeal of the assessee is allowed

ITA 2954/DEL/2017[2013-14]Status: DisposedITAT Delhi13 May 2020AY 2013-14

Bench: Sh. Bhavnesh Sainidr. B. R. R. Kumarita No. 2954/Del/2012 : Asstt. Year : 2013-14 Dcit, Vs M/S Punjab National Bank, Circle-20(1), Ho: Finance Division, 5, Sansad New Delhi Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaacp0165G

For Appellant: Sh. S. Krishnan, AdvFor Respondent: Smt. Sushma Singh, CIT DR
Section 142(1)

…investments made in assets earning tax free income, the presumption is that the investments have come out of interest free funds only. Similar view was also taken by the Hon'ble High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Ltd (2009) 313 ITR 340. 4.11 Without prejudice to above, it is further submitted that even if rule 8D is made applicable to the Bank, then no disallowance in relation to income arising from the value of the investment which yield both taxable and tax free income can be made since in the formula given in rule 8D is only the average value of investment, income from which…

Wns Global Services P.Ltd, Mumbai vs. DCIT Cir 14(3)(1), Mumbai

In the result, the appeals are partly allowed

ITA 2257/MUM/2017[2012-13]Status: DisposedITAT Mumbai19 Mar 2020AY 2012-13

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiita No.2257/Mum/2017 Assessment Year : 2012 -13 Ita No.1955/Mum/2016 Assessment Year : 2011 -12

For Appellant: Shri Porus Kaka & Shri Manish KanthFor Respondent: Shri Kumar Sanjay & Smt. Kavita Kaushik
Section 10ASection 143(3)Section 144C(5)Section 263Section 32(1)Section 92C

…n accounts, wherein the own funds were Rs 532.52 crores vis-à-vis total investments were Rs 134.22 crores as on 31.03.2012. He submitted that no disallowance is called for by relying on a series of decisions viz. CIT vs. Reliance Utilities & Power Ltd. [2009] 313 ITR 340 (Bom); Ultratech Cement Ltd. vs. ACIT [2017] 186 TTJ 547; Daga Global Chemicals Pvt. Ltd. vs. ACIT [2017] 46 ITR 70 (Mum) and Gujarat Fluorochemicals Ltd. vs. DCIT [2018] 97 taxmann.com 10 (Ahmedabad). Without prejudice to the above 40 WNS Global Services Private Limited submissions, the learned AR further submitted that the disallowance u/s. 1…

Wns Global Services P. Ltd, Mumbai vs. DCIT Cir 14(3)(1), Mumbai

In the result, the appeals are partly allowed

ITA 1955/MUM/2016[2011-12]Status: DisposedITAT Mumbai19 Mar 2020AY 2011-12

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiita No.2257/Mum/2017 Assessment Year : 2012 -13 Ita No.1955/Mum/2016 Assessment Year : 2011 -12

For Appellant: Shri Porus Kaka & Shri Manish KanthFor Respondent: Shri Kumar Sanjay & Smt. Kavita Kaushik
Section 10ASection 143(3)Section 144C(5)Section 263Section 32(1)Section 92C

…n accounts, wherein the own funds were Rs 532.52 crores vis-à-vis total investments were Rs 134.22 crores as on 31.03.2012. He submitted that no disallowance is called for by relying on a series of decisions viz. CIT vs. Reliance Utilities & Power Ltd. [2009] 313 ITR 340 (Bom); Ultratech Cement Ltd. vs. ACIT [2017] 186 TTJ 547; Daga Global Chemicals Pvt. Ltd. vs. ACIT [2017] 46 ITR 70 (Mum) and Gujarat Fluorochemicals Ltd. vs. DCIT [2018] 97 taxmann.com 10 (Ahmedabad). Without prejudice to the above 40 WNS Global Services Private Limited submissions, the learned AR further submitted that the disallowance u/s. 1…

Godavari Corporation P.Ltd, Mumbai vs. DCIT 1(1), Mumbai

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

ITA 3210/MUM/2013[2008-09]Status: DisposedITAT Mumbai16 Mar 2020AY 2008-09

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2008-09. Godavati Corporation P.Ltd., Vs. D.C.I.T.-1(1), Mumbai Industry House, 159, 5Th Floor, Aayakar Bhavan Churchgate Reclamation, M.K.Road, Mumbai-400020 Mumbai-400 020. Pan Aaacg1850D. Appellant. Respondent.

For Appellant: Ms. Arati Vissanji, ARFor Respondent: Shri V.Vinod Kumar, DR
Section 115JSection 143(3)Section 14A

…d not on net interest. (b) In the above view, question no.(i) as proposed does not give rise to any substantial question of law. Thus not entertained.” 8.1 In HDFC Bank Ltd. (supra), the decision in the case of CIT vs. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) was followed, wherein it was held that where both interest free funds and interest bearing funds are available and the interest free funds are more than the investments made, the presumption is that the investment in the tax-free securities would have been made out of the interest-free funds available with the assessee. Though the decision…

Pinakin Laxmichand Shah, Mumbai vs. ACIT - 19 (2), Mumbai

In the result, assessee’s appeals are partly allowed for statistical purposes

ITA 6112/MUM/2018[2013-14]Status: DisposedITAT Mumbai13 Mar 2020AY 2013-14

Bench: Shri Saktijit Dey & Shri S. Rifaur Rahman

For Appellant: Shri S.C. Tiwari a/wFor Respondent: Shri Kumar Padmapani Bora
Section 36Section 57

…that the interest expenditure should be allowed under section 36 of the Act cannot be accepted. In that context, he also rejected assessee’s reliance upon the decision of the Hon'ble Jurisdictional High Court in CIT v/s Reliance Utility and Power Ltd., [2009] 313 ITR 340 (Bom.). Accordingly, he upheld the disallowance made by the Assessing Officer on the reasoning that the loss claimed under the head “Income From Other Sources” is nothing but pre–meditated loss claimed by the assessee to reduce his tax burden. 4 Shri Pinakin Laxmichand Shah 5. The learned Authorised Representative submitted, the entire borrowed…

Sadhana Sahakari Bank Ltd, Pune vs. Assistant Commissioner of Income Tax, Pune

In the result, all the three appeals of assessee are partly allowed

ITA 1206/PUN/2017[2013-14]Status: DisposedITAT Pune11 Mar 2020AY 2013-14

Bench: Shri D. Karunakara Rao & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita Nos.1204 To 1206/Pun/2017 नििाारण वषा / Assessment Years : 2011-12 To 2013-14 Sadhana Sahakari Bank Ltd., Shivam Complex, Pune-Solapur Road, Hadapsar, Pune – 411028 Pan: Aabas2204G .......अऩीऱाथी / Appellant बिाम / V/S. The Asst. Commissioner Of Income Tax, Circle – 14, Pune ……प्रत्यथी / Respondent Assessee By : Shri Kishor Phadke Revenue By : Shri S.P. Walimbe

For Appellant: Shri Kishor PhadkeFor Respondent: Shri S.P. Walimbe
Section 14ASection 36(1)Section 36(1)(viia)Section 37(1)

…is no diversion of interest free funds towards total investments in shares. 16. We heard both the parties. On the basic facts narrated above and relying on the binding judgment of Hon‟ble Bombay High Court in CIT Vs. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom), we are of the opinion that ld. Counsel demonstrated the disallowance made by the Assessing Officer is uncalled for under Rule 8D(2)(ii) of the Rules. Accordingly, we direct the Assessing Officer to allow the same. Thus, ground 4 raised by assessee is partly allowed. ITA No.1205/PUN/2017, A.Y. 2012-13 17. The issue raised in grounds 1 and…

Sadhana Sahakari Bank Ltd, Pune vs. Assistant Commissioner of Income Tax, Pune

In the result, all the three appeals of assessee are partly allowed

ITA 1205/PUN/2017[2012-13]Status: DisposedITAT Pune11 Mar 2020AY 2012-13

Bench: Shri D. Karunakara Rao & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita Nos.1204 To 1206/Pun/2017 नििाारण वषा / Assessment Years : 2011-12 To 2013-14 Sadhana Sahakari Bank Ltd., Shivam Complex, Pune-Solapur Road, Hadapsar, Pune – 411028 Pan: Aabas2204G .......अऩीऱाथी / Appellant बिाम / V/S. The Asst. Commissioner Of Income Tax, Circle – 14, Pune ……प्रत्यथी / Respondent Assessee By : Shri Kishor Phadke Revenue By : Shri S.P. Walimbe

For Appellant: Shri Kishor PhadkeFor Respondent: Shri S.P. Walimbe
Section 14ASection 36(1)Section 36(1)(viia)Section 37(1)

…is no diversion of interest free funds towards total investments in shares. 16. We heard both the parties. On the basic facts narrated above and relying on the binding judgment of Hon‟ble Bombay High Court in CIT Vs. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom), we are of the opinion that ld. Counsel demonstrated the disallowance made by the Assessing Officer is uncalled for under Rule 8D(2)(ii) of the Rules. Accordingly, we direct the Assessing Officer to allow the same. Thus, ground 4 raised by assessee is partly allowed. ITA No.1205/PUN/2017, A.Y. 2012-13 17. The issue raised in grounds 1 and…

Sadhana Sahakari Bank Ltd, Pune vs. Assistant Commissioner of Income Tax, Pune

In the result, all the three appeals of assessee are partly allowed

ITA 1204/PUN/2017[2011-12]Status: DisposedITAT Pune11 Mar 2020AY 2011-12

Bench: Shri D. Karunakara Rao & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita Nos.1204 To 1206/Pun/2017 नििाारण वषा / Assessment Years : 2011-12 To 2013-14 Sadhana Sahakari Bank Ltd., Shivam Complex, Pune-Solapur Road, Hadapsar, Pune – 411028 Pan: Aabas2204G .......अऩीऱाथी / Appellant बिाम / V/S. The Asst. Commissioner Of Income Tax, Circle – 14, Pune ……प्रत्यथी / Respondent Assessee By : Shri Kishor Phadke Revenue By : Shri S.P. Walimbe

For Appellant: Shri Kishor PhadkeFor Respondent: Shri S.P. Walimbe
Section 14ASection 36(1)Section 36(1)(viia)Section 37(1)

…is no diversion of interest free funds towards total investments in shares. 16. We heard both the parties. On the basic facts narrated above and relying on the binding judgment of Hon‟ble Bombay High Court in CIT Vs. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom), we are of the opinion that ld. Counsel demonstrated the disallowance made by the Assessing Officer is uncalled for under Rule 8D(2)(ii) of the Rules. Accordingly, we direct the Assessing Officer to allow the same. Thus, ground 4 raised by assessee is partly allowed. ITA No.1205/PUN/2017, A.Y. 2012-13 17. The issue raised in grounds 1 and…

The DCIT, Circle-1(1)(1), Ahmedabad vs. Arvind Smartspaces Ltd., Ahmedabad

In the result, the appeal filed by the Revenue and CO filed by the assessee is dismissed

ITA 1507/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad09 Mar 2020AY 2014-15

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No.1507/Ahd/2018 With C.O. 79/Ahd/2019 "नधा"रण वष"/Asstt. Year: 2014-2015 D.C.I.T, Arvind Smartspaces Ltd., Circle-1(1)(1), Vs. 24, Government Sevant’S Society, Ahmedabad. Nr. Municpal Market, Off. C.G. Road, Navrangpura, Ahmedabad-380009. Pan: Aahca5001H

For Appellant: Shri Vartik Chokshi, A.R
Section 14ASection 199Section 36(1)(iii)

…e of the view that no disallowance of interest expenses on account of diversion of the fund is warranted. In this regard, we find support and guidance from the judgement of Hon’ble Bombay High Court in the case of Reliance Utilities and Power Ltd. reported in 313 ITR 340 wherein it was held as under:- “The principle therefore would be that if there are funds available both interest-free and overdraft and/or loans taken, then a presumption would arise that investments would be out of the interest-free fund generated or available with the company, if the interest-free funds were sufficient to meet the investments.…

Kollur Sreenivasan Kamalakannan, Dindigul vs. ITO Corporate Ward 4(4), Chennai

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

ITA 84/CHNY/2019[2014-15]Status: DisposedITAT Chennai09 Mar 2020AY 2014-15

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A. No.84/Chny/2019 िनधा"रण वष"/Assessment Year:2014-15 Shri Kollur Sreenivasan Kamalakannan, The Income Tax Officer, Vs. No. 1, Anna Pillai Street, Corporate Ward 4 (4), George Town, Chennai 600 001. Chennai. [Pan: Aacpk5960F] (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri N. Arjunraj, C.A. & Shri S. Sridhar, Advocate ""थ" की ओर से/Respondent By : Shri A. Sundararajan, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 27.02.2020 घोषणा की तारीख /Date Of Pronouncement : 09.03.2020 आदेश /O R D E R Per Duvvurul Rl Reddy:

For Appellant: Shri N. Arjunraj, C.A. &For Respondent: Shri A. Sundararajan, Addl. CIT
Section 143(3)Section 14A

…nd was incurred in connection with the operating revenue which had been offered to tax, no disallowance is required to be made under section 14A of the Act [CIT v. Bharti Televenture Ltd. (2011) 331 ITR 502 (Del), CIT v. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom), PCIT v. Sintex Industries Ltd. (2018) 403 ITR 418 (Guj), etc.]. Thus, we set aside the order of the ld. CIT(A) and remit the matter back to the file of the Assessing Officer to verify as to whether the assessee was having sufficient own funds on the date of investments and if so, no disallowance under Rule 8D(2)(ii) is warranted on the ent…

Smt. Aabhadevi Agrawal, Burhanpur vs. ACIT Khandwa, Khandwa

Appeal are allowed

ITA 752/IND/2019[2009-10]Status: DisposedITAT Indore06 Mar 2020AY 2009-10

Bench: Shri Kul Bharatassessment Year: 2009-10

Section 143(3)

…cheron Electrodes Limited 142 ITR 529 (MP) 04. Regal Theatre V/s CIT 225 ITR 205 ( Delhi) 05. Sarvodaya Kela Group V/s ITO 25 ITC 409 (Indore Bench) 1.7.2] That Hon'ble Bombay High Court in the case of CIT vs Reliance Utilities & Power Limited as reported in 313 ITR 340 has discussed the similar issue in detail and held that:- 10. If there be interest-free funds available to an assessee sufficient to meet its 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. In our opinion the Supreme Court in East India Pharmaceut…

The Dy. CIT, Circle-1(2), Ahmedabad vs. M/S. Artex Apparels, Ahmedabad

Accordingly, the said ground of appeal is also allowed

ITA 1450/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad05 Mar 2020AY 2012-13

Bench: Shri Rajpal Yadav & Shri T. S. Kapoorआयकर अपील सं./I.T.A. No. 1450/Ahd/2017 With Cross Objection No.24/Ahd/2019 ("नधा"रण वष" / Assessment Years : 2012-13)

For Appellant: Shri Parimal S. Parmar, A.RFor Respondent: Shri T. Shankar, Sr.D.R
Section 10ASection 234ASection 271(1)(c)Section 36(1)(va)Section 40A(2)(b)

…CIT vs. Reliance Industries Ltd. - 410 ITR 466 (SC); > CIT vs. Torrent Power Ltd. - 363 ITR 474 (Guj.); > CIT vs. Suzlon Energy Ltd. - 354 ITR 630 (Guj); > CIT vs. Gujarat Power Corporation Ltd. - 352 ITR 583 (Guj); > CIT vs. Reliance Utilities & Power Ltd. - 313 ITR 340 (Bom); ITA No. 1450/Ahd/17 with CO No.24/Ahd/19 [M/s. Artex Apparels] A.Y. 2012-13 - 7 - > Munjal Sales Corporation vs. CIT - 298 ITR 298 (SC); > CIT vs. Hitachi Home & Life Solutions (I). Ltd. - (2014) 41 taxmann.com 540 (Guj); 17. As regards disallowance of bad debts, it was submitted that AO failed to appreciate that invoice to the said part…

The ACIT, (OSD)Circle-8, Ahmedabad vs. Torrent Power Ltd., Ahmedabad

In the result, the appeal of the Revenue and the Cross-objection of the assessee, both are dismissed

ITA 1668/AHD/2012[2006-07]Status: DisposedITAT Ahmedabad05 Mar 2020AY 2006-07

Bench: Shri Sandeep Gosain & Shri Amarjit Singh

For Appellant: Shri Vartik ChowkshiFor Respondent: Shri Samir Tekriwal, CIT-DR
Section 115JSection 14Section 143(3)Section 14A

…Thus, the appellant is having enough interest free funds and, therefore,, also the disallowance out of interest expenditure could not be made having regard to the ratio of decision of Bombay High Court in the case of CIT Vs. Reliance Utilities and Power Ltd. [313 ITR 340]. Said decision is also followed by ITA No.1668/Ahd/2012(By Revenue) & CO No.178/Ahd/2012 (By Assessee) ACIT (OSD) vs. M/s.Torrent Power Ltd. Asst.Year – 2006-07 ITAT, Ahmedabad in the case of AC!T Vs. Hipolin Limited. For this reason also, the disallowance of Rs.2,56,00,942/- out of interest expenditure made by the A. O. as per section 14A was n…

ITO - 6(3)(4), Mumbai vs. Kohinoor Planet Constructions Pvt. Ltd., Mumbai

In the result, the appeal is dismissed

ITA 5719/MUM/2018[2014-15]Status: DisposedITAT Mumbai02 Mar 2020AY 2014-15
Section 143(3)Section 14ASection 36(1)(iii)

…rs by various Hon’ble High Courts, including Hon’ble Delhi High Court in the case of Joint Investments Pvt Ltd vs CIT [(2015) 372 ITR 694 (Del)]. Similarly, as held by Hon’ble Bombay High Court in the case of CIT Vs Reliance Utilities & Power Limited [ (2009) 313 ITR 340 (Bom)], if there are funds available both, interest-free and overdraft and/or loans are taken, then a presumption would arise that investments would be out of the interest-free fund generated or available with the company, if the interest-free funds are sufficient to meet the investments. On both the counts, therefore, the conclusions arrived at…