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.

Rushil Industries Ltd., Bhavnagar vs. The ACIT, Circle-1, Bhavnagar

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

ITA 3285/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad05 Mar 2019AY 2010-11

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 3285/Ahd/2014 "नधा"रण वष"/Asstt. Year: 2010-2011 M/S Rushil Industries Ltd., The A.C.I.T, D-202, Sarthik Complex, Vs. Circle-1, Bhavnagar. Atabhai Chowk, Bhavnagar.

Section 40Section 40A(2)(b)

…resumption can be drawn that the assessee has not diverted any borrowed fund for non- commercial activity. In this regard, we find support and guidance from the judgment 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.…

The DCIT, Circle-1(1)(1), Ahmedabad vs. M/S. Amjay Medimza (India) Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 289/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad04 Mar 2019AY 2012-13

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 289/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 The D.C.I.T, M/S Amjay Medimax(India) Pvt. Circle-1(1)(1), Vs. Ltd. Ahmedabad 4Th Floor, Max House, Opp. Karnavati Hospital, Ellisbridge, Ahmedabad-380 006 Pan : Aabca8241R

For Appellant: Shri Aseem Thakkar, A.RFor Respondent: Shri Rajesh Meena, Sr. DR
Section 14ASection 36(1)Section 36(1)(iii)Section 41(1)

…not arise. Accordingly, there cannot be any disallowance on account of interest expenses as made by the AO. In holding so, we find support and guidance from the judgment 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.…

Kiran Agritech Pvt.Ltd, Aurangabad vs. Assistant Commissioner of Income-Tax, Circle - 1, Aurangabad

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

ITA 1109/PUN/2018[2014-15]Status: DisposedITAT Pune01 Mar 2019AY 2014-15
For Appellant: Shri M. K. KulkarniFor Respondent: Shri M. K. Verma
Section 36(1)(iii)

…total unsecured loans of Rs.2.86 crores. Consequent to ignoring of this fact, the CIT(A) gave a wrong finding thereby held the inapplicability of the binding judgement of the Jurisdictional High Court in the case of CIT vs. Reliance Utilities and Power Ltd., 313 ITR 340. For this purpose, ld. Counsel submitted that the matter may be remanded to the file of the CIT(A) for fresh adjudication. 6. On considering the above submission of the ld. Counsel for the assessee and after hearing the ld. DR for the Revenue, I am of the opinion, for this limited purpose, the matter should be remanded to the file of the CIT(A) f…

Gold Finch Jewellery Ltd., Ahmedabad vs. The DCIT, Circle-2(1)(1), Ahmedabad

In the result the appeal of the assessee is allowed

ITA 1075/AHD/2016[2009-10]Status: DisposedITAT Ahmedabad01 Mar 2019AY 2009-10

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita Nos.1075-1076/Ahd/2016 "नधा"रण वष"/Asstt. Years: 2009-2010 & 2012-2013 D.C.I.T. Gold Finch Jewellery Ltd., Circle-2(1)(1), G-5,Pariseema Complex, Vs. Ahmedabad-380015 Nr. Swagat Cross Roads, C.G. Road, Ahmedabad-380006. Pan: Aaacg6992L

For Respondent: Shri VinodTanwani, Sr.DR
Section 143(3)

…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.…

The Dy. CIT, Circle-1(1)(1), Ahmedabad vs. M/S. Ahmedabad Strips Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 3454/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad28 Feb 2019AY 2012-13

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No.3454/Ahd/2016 "नधा"रण वष"/Asstt. Year: 2012-2013 D.C.I.T, Ahmedabad Strips Pvt. Ltd., Circle-1(1)(1), 604, Sarap Complex, 6Th Floor, Vs. Ahmedabad Navjivan Press Road, B/H. Gujarat Vidhyapith, Off Ashram Road, Ahmedabad-380014. Pan: Aabca8222A

For Appellant: Shri Bhavesh Shah, A.R
Section 36(1)(iii)Section 40A(2)(b)

…resumption can be drawn that the assessee has not used any borrowed fund in such capital work-in-progress. In this regard, we find support and guidance from the judgment 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 Asstt. Year 2012-…

DCIT, Central Circle - 4(4), Kolkata vs. M/S. Electrosteel Castings Limited., Kolkata

ITA 192/KOL/2018[2013-14]Status: DisposedITAT Kolkata28 Feb 2019AY 2013-14

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…ee has filed the necessary charts in this regard showing own funds and investments. The learned counsel for the assessee has placed strong reliance on the decision of the Hon'ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom) wherein proposition similar to the one canvassed by the assessee was accepted. 145. We are of the view the submission made with regard to availability of own funds in the light of overall funds position without insisting on direct nexus between investments and own funds would be the right approach as held by the Hon'ble Bombay High Court in…

DCIT, Central Circle - 4(4), Kolkata vs. M/S. Electrosteel Castings Limited., Kolkata

ITA 191/KOL/2018[2012-13]Status: DisposedITAT Kolkata28 Feb 2019AY 2012-13

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…ee has filed the necessary charts in this regard showing own funds and investments. The learned counsel for the assessee has placed strong reliance on the decision of the Hon'ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom) wherein proposition similar to the one canvassed by the assessee was accepted. 145. We are of the view the submission made with regard to availability of own funds in the light of overall funds position without insisting on direct nexus between investments and own funds would be the right approach as held by the Hon'ble Bombay High Court in…

M/S. Electrosteel Casting Limited., Kolkata vs. DCIT, Cental Circle - 4(4), Kolkata

ITA 139/KOL/2018[2013-14]Status: DisposedITAT Kolkata28 Feb 2019AY 2013-14

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…ee has filed the necessary charts in this regard showing own funds and investments. The learned counsel for the assessee has placed strong reliance on the decision of the Hon'ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom) wherein proposition similar to the one canvassed by the assessee was accepted. 145. We are of the view the submission made with regard to availability of own funds in the light of overall funds position without insisting on direct nexus between investments and own funds would be the right approach as held by the Hon'ble Bombay High Court in…

M/S. Electrosteel Casting Limited., Kolkata vs. DCIT, Cental Circle - 4(4), Kolkata

ITA 138/KOL/2018[2012-13]Status: DisposedITAT Kolkata28 Feb 2019AY 2012-13

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…ee has filed the necessary charts in this regard showing own funds and investments. The learned counsel for the assessee has placed strong reliance on the decision of the Hon'ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom) wherein proposition similar to the one canvassed by the assessee was accepted. 145. We are of the view the submission made with regard to availability of own funds in the light of overall funds position without insisting on direct nexus between investments and own funds would be the right approach as held by the Hon'ble Bombay High Court in…

ACIT, Khandwa vs. M/S C.P. Industrial Products Pvt. Ltd., Burhanpur

In the result the appeal of the revenue is dismissed

ITA 603/IND/2018[2010-11]Status: DisposedITAT Indore27 Feb 2019AY 2010-11

Bench: Hon'Ble V. Durga Rao & Hon'Ble Manish Boradassessment Year 2010-11 Assistant Commissioner Of M/S. C.P. Industrial Income Tax, Vs. Products Pvt. Ltd, Khandwa Burhanpur (M.P) (Appellant) (Respondent ) Pan No.Aaccc1362 Revenue By Shri K.G. Goyal. Sr. D.R. Assessee By S/Shri S.N. Agrawal & Pankaj Mogra, Ca’S Date Of Hearing 25.02.2019 Date Of Pronouncement 27.02.2019 O R D E R

Section 143(3)Section 147Section 148Section 14A

…and reserve and surplus were sufficient to cover up the investments fetching tax free interest income. Case of assessee is also covered in its favour by the judgment of Hon’ble Bombay High Court in the case of CIT V/s Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom). 9. We therefore in the given facts and circumstances of the case and also respectfully following the above judgments, find no inconsistency in the finding of Ld. CIT(A) deleting the disallowance u/s 14A of the Act at Rs.20,74,272/-. Appeal of the revenue stands dismissed. 10. In the result the appeal of the revenue is dismissed. The ord…

Cil Nova Petrochemicals Ltd., Ahmedabad vs. The Deputy Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 983/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad26 Feb 2019AY 2013-14

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad

For Respondent: Shri L. P. Jain, Sr.D.R
Section 36(1)(iii)

…med as carried from these surplus funds. No notional interest ought to be calculated for capitalization. In order to fortify ourselves, we would like to refer to the decision of Hon'ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Power Ltd., 313 ITR 340 (Bom). In view of the above, this ground of appeal is allowed.” 9. The facts and the circumstances being similar without any material change, we do not see any reason to depart from the view ITA No. 983/Ahd/17 [CIL Nova Petrochemicals Ltd. vs. DCIT] A.Y. 2013-14 - 4 - already taken in this regard. In parity with the findings of the co- ordinat…

M/S. Bajaj Foods Ltd., Ahmedabad vs. The Income Tax Officer, Ward-1(2), Ahmedabad

In the result, the ground of appeal no

ITA 2276/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad21 Feb 2019AY 2010-11
For Appellant: Shri Tushar Hemani, A.RFor Respondent: Shri Lalit P. Jain, Sr. D.R
Section 143(2)Section 143(3)Section 36

…63 ITR 474 (Guj); > CIT vs. Suzkm Energy Ltd. - 354 ITR 630 (Guj); > CIT vs. Gujarat Power Corporation Ltd. - 352 ITR 583 (Guj); > CIT vs. Hitachi Home & Life Solutions (I). Ltd. - (2014) 41 taxmann.com 540 (Guj); > CIT vs. Reliance Utilities & Power I ,<d. - 313 ITR 340 (Bom); > Munjal Sales Corporation vs. CIT - 298 ITR 298 (SC); In light of the above, impugned disallowance deserves to be deleted.” On the other hand ld. departmental representative has placed reliance on the decision of ld. CIT(A). I.T.A No. 2276/Ahd/2015 A.Y. 2010-11 Page No 4 M/s. Bajaj Foods Ltd. vs. ITO 5. We have heard both the sides and…

Suresh Kumar Garg, New Delhi vs. ITO, Ward- 47(1), New Delhi

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

ITA 845/DEL/2018[2014-15]Status: DisposedITAT Delhi20 Feb 2019AY 2014-15

Bench: Shri R.K. Pandaassessment Year: 2014-15 Suresh Kumar Garg, Vs. Ito, 2629A, Naya Bazar, Ward-47(1), New Delhi. New Delhi. Pan: Aafpg4752Q (Appellant) (Respondent) Assessee By : Shri K. Sampath & Shri V. Raj Kumar, Advocates Revenue By : Shri S.L. Anuragi, Sr. Dr Date Of Hearing : 18.02.2019 Date Of Pronouncement : 20.02.2019

For Appellant: Shri K. Sampath &For Respondent: Shri S.L. Anuragi, Sr. DR

…d that there is no bar against advancing of loan interest free or at a low rate of interest which may be very many considerations. Thus, this issue is settled by the decision of the Bombay High Court in the case of “Reliance Utilities & Power Ltd. reported in 313 ITR 340 (Bombay) where in it was held that where an assessee has his own funds as well as borrowed funds, a presumption can be made that the advance for nonbusiness have been made out of own funds and that the borrowed funds have not been issued for this purposes.” Merely for the reasons that interest was not charged on the lending, the interest paid for…

M/S. Madhu Silica Pvt. Ltd., Bhavnagar vs. The ACIT., Circle-1, Bhavnagar

In the result, the appeal of the assessee is partly allowed

ITA 450/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad18 Feb 2019AY 2012-13
For Appellant: Shri Tushar Hemani, A.RFor Respondent: Shri Mudit Nagpal, Sr. D.R
Section 10(34)Section 143(3)Section 14A

…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. Hitachi Home & Life Solutions (I). Ltd. - (2014) 41 taxmann.com 540 (Guj) > CIT vs. Reliance Utilities & Power Ltd. - 313 ITR 340 (Bom) > Munjal Sales Corporation vs. < IT - 298 ITR 298 (SC). We observe that it has been demonstrated from the above material on record that the assessee was having sufficient interest free fund in the form of share capital and free reserves as against the investment made from wich exempt income was earned. After considering the decision of Hon’…

The Dy. CIT, Circle-3, Ahmedabad vs. M/S. Goldmine Stocks Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue is partly allowed for statistical purpose

ITA 610/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad18 Feb 2019AY 2010-11

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No.610/Ahd/2014 "नधा"रण वष"/Asstt. Year: 2010-2011 D.C.I.T, M/S Goldmine Stocks Pvt. Ltd., Circle-3, Room No.109, 4, Niranjan Nirakar Society, Vs. ‘B’ Wing, 1St Floor, Shreyas Railways Crossing, Pratyakshyakar Bhawan, Paldi, Panjrapole, Ambawadi, Ahmedabad-380005. Ahmedabad Pan: Aaacg5445N

For Appellant: Shri S.N. Soparkar, A.RFor Respondent: Shri S.K. Dev, Sr. D.R
Section 14ASection 28Section 28(1)Section 36(1)(vii)Section 36(2)

…stment. Therefore the question of making the disallowance on account of interest expenses is not warranted. In this regard we find support and guidance from the judgment 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.…

Asstt.Commissioner of Income Tax, Circle-3(1)(1), Ahmedabad vs. M/S. Priyal International P.Ltd., Ahmedabad

In the result Ground No. 4 of the Revenues appeal is dismissed

ITA 3115/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad15 Feb 2019AY 2011-12

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasadआयकर अपील सं./I.T.A. No. 3115/Ahd/2015 ("नधा"रण वष" / Assessment Year: 2011-12)

For Appellant: Lalit P. Jain, Sr. DR
Section 10ASection 14A

…he following judgment by the Hon’ble Gujarat High Court namely (a) CIT vs GSFC Ltd. 358 ITR 0323(Guj) (b) CIT vs Gujarat Narmada Valley Fertilizers Col. Ltd. 221 Taxman 479 (c) CIT vs Raghuvir Synthetics 354 ITR 222. (d) CIT vs Reliance Utilities & Power Ltd. 313 ITR 340 ITA No.3115/Ahd/2015 [Add. CIT vs. Priyal International Pvt. Ltd.] A.Y. 2011-12 - 12 - 9.1 The fundamental principle highlighted in these judgments, as pointed out by appellant, is that if there are funds available, both interest free and overdraft or loans, then the presumption would arise that the investments would be out of interest free fund…

Vedanta Ltd (Successor to Cairn India Ltd), Gurgaon vs. ACIT, Circle-26(1), New Delhi

ITA 6937/DEL/2017[2013-14]Status: DisposedITAT Delhi12 Feb 2019AY 2013-14

Bench: Hon’Ble, Shri N.K. Saini & Shri Kuldip Singh

For Appellant: Shri Ajay Vohra, Senior AdvocateFor Respondent: Shri Sandeep Mishra, Senior DR
Section 115JSection 143Section 144CSection 14ASection 14A(2)Section 32(1)Section 32(1)(iia)Section 928(1)

…surplus funds and such funds are utilised as interest free advances even for a non-business purpose, there cannot be any disallowance of interest paid on interest bearing loans. 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 stands established that the investments in sister concerns were made by the assessee out of interest free funds and, therefore, no part of…

DCIT, New Delhi vs. M/S. Unitech Ltd., New Delhi

In the result this issue is allowed in favour of the assessee

ITA 311/DEL/2016[2011-12]Status: DisposedITAT Delhi12 Feb 2019AY 2011-12

Bench: Shri Amit Shukla & Shri L.P. Sahu

For Appellant: Shri Shailesh Gupta, AdvocateFor Respondent: Shri H.K. Choudhary CIT-D.R
Section 144CSection 36(1)(iii)

…exus proved by the AO that only borrowed funds were advanced, then presumption can be drawn that such advances have been given out of interest free funds. This view is now well supported by various judgments, like; CIT vs. Reliance Utilities Ltd. reported in 313 ITR 340 (Bom); and CIT vs. Max India Ltd., reported in 398 ITR 209 (P&H). Accordingly, such a disallowance is deleted on this ground also. 32. The next issue relates to addition of Rs. 3,92,03,610/- on account of treatment of rental income from properties as business income by the AO. The assessee company has shown rental income of Rs. 13,06,78,701/- un…

M/S. Unitech Limited, New Delhi vs. DCIT, New Delhi

In the result this issue is allowed in favour of the assessee

ITA 6585/DEL/2015[2011-12]Status: DisposedITAT Delhi12 Feb 2019AY 2011-12

Bench: Shri Amit Shukla & Shri L.P. Sahu

For Appellant: Shri Shailesh Gupta, AdvocateFor Respondent: Shri H.K. Choudhary CIT-D.R
Section 144CSection 36(1)(iii)

…exus proved by the AO that only borrowed funds were advanced, then presumption can be drawn that such advances have been given out of interest free funds. This view is now well supported by various judgments, like; CIT vs. Reliance Utilities Ltd. reported in 313 ITR 340 (Bom); and CIT vs. Max India Ltd., reported in 398 ITR 209 (P&H). Accordingly, such a disallowance is deleted on this ground also. 32. The next issue relates to addition of Rs. 3,92,03,610/- on account of treatment of rental income from properties as business income by the AO. The assessee company has shown rental income of Rs. 13,06,78,701/- un…

Cooper Corporation Pvt. Ltd., Satara vs. Deputy Commissioner of Income-Tax

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

ITA 112/PUN/2015[2009-10]Status: DisposedITAT Pune08 Feb 2019AY 2009-10
For Appellant: Shri Krishna GujarathiFor Respondent: Shri S.B. Prasad, CIT
Section 143(3)Section 14ASection 32(1)Section 35

…आयकर अपीलीय अिधकरण, पुणे "यायपीठ पुणे म" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE "ी डी. क"णाकरा राव , लेखा सद"य एवं "ी िवकास अव"थी, "याियक सद"य के सम" BEFORE SHRI D.KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM आयकर अपील सं. / ITA No.112/PUN/2015 िनधा"रण वष" / Assessment Year : 2009-10 Cooper Corporation Pvt. Ltd., L-3, Additional MIDC, Satara अपीलाथ"/Appellant PAN: AAACC9687J …. Vs. Dy. CIT, …. ""यथ" / Respondent Satara Circle, Satara आयकर अपील सं. / ITA No.104/PUN/2015 िनधा"रण वष" / Assessment Year : 2009-10 Dy. CIT, अपीलाथ"/Appellant Satara Circle, Satara …. Vs. Cooper Corporation Pvt. Ltd.,…