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 367,518 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 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.

Hem Kiran Diesels, Kolhapur vs. Assistant Commissioner of Income-Tax, Central Circle -Kolhapur, Kolhapur

In the result, all the appeals are allowed to this extent

ITA 1087/PUN/2018[2006-07]Status: DisposedITAT Pune03 Jan 2019AY 2006-07

Bench: Shri R.S. Syal & Shri Vikas Awasthy

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

…urplus 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 par…

Restaurant Shreyas, Pune vs. Income-Tax Officer, Ward - 3(5), Pune

In the result, the appeal of the assessee is allowed

ITA 206/PUN/2018[2012-13]Status: DisposedITAT Pune03 Jan 2019AY 2012-13

Bench: Shri Anil Chaturvedi, Am

For Appellant: Shri Abhay A. AvchatFor Respondent: Shri Rajesh Gawali

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

…vailability of interest free funds are more than the amount advanced, no disallowance of interest is called for and for this proposition, he relied on the decision of Hon’ble Bombay High Court in the case of Reliance Utilities & Power Ltd reported in [2009] 313 ITR 340 (Bom). He therefore submitted that the addition be deleted. Ld.D.R. on the other hand, supported the 4 order of AO and Ld.CIT(A) and further submitted that assessee has not demonstrated the commercial expediency for giving the advances and in such a situation, AO was fully justified in disallowing the expenses. 6. I have heard the rival submiss…

Hem Kiran Diesels, Kolhapur vs. Assistant Commissioner of Income-Tax, Central Circle -Kolhapur, Kolhapur

In the result, all the appeals are allowed to this extent

ITA 1086/PUN/2018[2005-06]Status: DisposedITAT Pune03 Jan 2019AY 2005-06

Bench: Shri R.S. Syal & Shri Vikas Awasthy

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

Cosmos Industries Ltd., Ghaziabad vs. DCIT, New Delhi

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

ITA 3730/DEL/2015[2010-11]Status: DisposedITAT Delhi31 Dec 2018AY 2010-11

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2010-11 Cosmos Industries Ltd., Vs. Dcit, C/O Garg R. Kumar & Associates, Cas, Circle-3(1), 7, Advocate Chambers, New Delhi. Raj Nagar District Centre, Above Dominos Pizza, Ghaziabad. Pan: Aaacc6682R (Appellant) (Respondent) Assessee By : Shri Akhilesh Kumar, Advocate Revenue By : Shri Anil Katoch, Sr.Dr Date Of Hearing : 17.12.2018 Date Of Pronouncement : 31.12.2018 Order Per R.K. Panda, Am: This Appeal By The Assessee Is Directed Against The Order Dated 18Th March, 2015 Of The Cit(A)-14, New Delhi, Relating To Assessment Year 2010-11. 2. The Facts Of The Case, In Brief, Are That The Assessee Is A Company & Is Engaged In The Business Of Manufacturing & Trading Of Sugar. It Filed Its Return Of Income On 31St March, 2011 Declaring Total Income Of Rs.3,36,93,430/- & Income U/S 115Jb At Rs.4,01,70,500/-. This Case Was Selected For Scrutiny By Issue Of Statutory Notices. During The Course Of Assessment Proceedings, The Assessing

For Appellant: Shri Akhilesh Kumar, AdvocateFor Respondent: Shri Anil Katoch, Sr.DR

Section 115JSection 2(14)Section 37

…ppellant were sufficient to cover the interest free advances made by it of Rs.10.29 crores to its sister company. We are entirely in agreement with the judgment of the Bombay High Court in Commissioner of Income Tax vs. Reliance Utilities & Power Ltd., (2009) 313 ITR 340, para-10, that if there are interest free funds available a presumption would arise that investment would be out of the interest free funds generated or available with the company if the interest free funds were sufficient to meet the investment. 17. The Assessing Officer's view that the advance was not for business purposes as the appellant had…

Rajbir Singh Walia, Chandigarh vs. DCIT, C-I(I), Chandigarh

In the result, ITA 59/CHD/2015 is partly allowed and ITA

ITA 413/CHANDI/2018[2011-12]Status: DisposedITAT Chandigarh26 Dec 2018AY 2011-12

For Appellant: Shri S.K.BhasinFor Respondent: Shri Manjit Singh, Sr.DR

Section 14ASection 250Section 271Section 36(1)

…t, "No disallowance u/s 14A can be made in respect of interest paid on borrowing if the assessee has sufficient own interest free funds". Reliance was also placed on the decision of the Hon'ble Bombay High Court in the case of Reliance Utilities & Power Ltd. 313 ITR 340 and the Hon'ble Gujrat High Court in the case of CIT Vs Suzlon Energy Ltd. Tax Appeal No. 223 of 2013 . The Id. counsel for the assessee further contended that out of the total investments made in shares of Rs. 24.56 lacs, only investments of Rs. 4.24 lacs were capable of earning dividend, while the rest were non- dividend paying companies wher…

Rajbir Singh Walia, Chandigarh vs. DCIT, Chandigarh

In the result, ITA 59/CHD/2015 is partly allowed and ITA

ITA 59/CHANDI/2015[2011-12]Status: DisposedITAT Chandigarh26 Dec 2018AY 2011-12

For Appellant: Shri S.K.BhasinFor Respondent: Shri Manjit Singh, Sr.DR

Section 14ASection 250Section 271Section 36(1)

DCIT, New Delhi vs. M/S. Powerlink Transmission Ltd., New Delhi

In the result, both the appeals filed by the Revenue for A

ITA 3870/DEL/2014[2010-11]Status: DisposedITAT Delhi21 Dec 2018AY 2010-11

Bench: Shri Amit Shukla & Shri Anadee Nath Misshra

For Appellant: Sh. Manoneet Dalal, Adv. &For Respondent: Sh. Surender Pal, Sr. DR

Section 143(3)Section 147Section 148Section 36

…the facts and circumstances of the assessee, in any case, there is presumption that investments were made out of interest free funds generated or available with the company including the share capital and reserves. • Reliance Utility and power Limited [2009] 313 ITR 340/178 Taxman 135 (Bom.) • Woolcoombers of India Limited [1982] 134 ITR 219 (Cal.) Page 13 of 18 ITA Nos.-3869 & 3870/Del/2014 and C/O No. 128/Del/2017. M/s Powerlink Transmission Ltd., New Delhi. • East India Pharmaceuticals [1997] 224 ITR 627 (SC) • DD Industrial Ltd. [2015] 57 taxmann.com 310 (Delhi) • Tin Box Co. 135 taxman 145 (Delhi) (2…

DCIT, New Delhi vs. M/S. Powerlink Transmission Ltd., New Delhi

In the result, both the appeals filed by the Revenue for A

ITA 3869/DEL/2014[2007-08]Status: DisposedITAT Delhi21 Dec 2018AY 2007-08

Bench: Shri Amit Shukla & Shri Anadee Nath Misshra

For Appellant: Sh. Manoneet Dalal, Adv. &For Respondent: Sh. Surender Pal, Sr. DR

Section 143(3)Section 147Section 148Section 36

Deputy Commissioner of Income-Tax vs. Jain Irrigation System Ltd., Jalgaon

In the result, appeal of the Revenue is dismissed

ITA 1183/PUN/2016[2005-06]Status: DisposedITAT Pune20 Dec 2018AY 2005-06

Bench: Shri R.S. Syal, Vp & Shri Partha Sarathi Chaudhury, Jm

For Appellant: Shri Prashant MaheshwariFor Respondent: Shri Sudhendu Das

Section 143(3)Section 148Section 36(1)(iii)

…than the interest free amount advanced for hiring the immovable property of Rs.10.55 crores. In view of the above facts disallowance of interest is not justified as laid down by Hon'ble Bombay High Court, in the case of CIT Vs. Reliance Utilities & Power Ltd. 313 ITR 340 (Born) and Pune ITAT, in the case of Dr. D.Y. Patil Pratisthan Vs. DCIT (2013) 154 IT] 320 (Pune). 2) The A.O. had made this disallowance without pointing out any direct nexus between borrowed funds and amount of interest free deposits. 3) The interest free deposits were given for hiring the immovable properties for the purpose of business in the…

Udaipuria Commercial Pvt. Ltd., Kolkata vs. ITO, Ward - 6(4), Kolkata

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

ITA 1610/KOL/2018[2013-14]Status: DisposedITAT Kolkata19 Dec 2018AY 2013-14

Bench: "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri A. T. Varkey, Jm] I.T.A. No. 1610/Kol/2018 Assessment Year: 2013-14

Section 14A

…on of mixed funds which includes its own fund with sufficient quantity a presumption that its own fund were utilized for the investment is to be drawn. For that, we rely on the decision of the Hon’ble Bombay High Court in Reliance Utility & Power Ltd. Vs. CIT 313 ITR 340 (Bom.) and, therefore, no disallowance under Rule 8D(2)(ii) was warranted and, therefore, disallowance computed applying Rule 8D(2)(ii) is deleted. 5. Coming to the disallowance made by the AO under Rule 8D(2)(iii) of the Rules, this Tribunal has consistently held by applying the ratio of the decision of REI Agro Ltd. 144 ITD 141 in which the Tri…

Cambridge Financial Services Pvt. Ltd., Kolkata vs. ITO, Ward - 6(1), Kolkata

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

ITA 1607/KOL/2018[2013-14]Status: DisposedITAT Kolkata19 Dec 2018AY 2013-14

Bench: "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri A. T. Varkey, Jm] I.T.A. No. 1607/Kol/2018 Assessment Year: 2013-14

Section 14A

Prabhatam Advertising Pvt. Ltd., Delhi vs. DCIT, New Delhi

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

ITA 5798/DEL/2014[2009-10]Status: DisposedITAT Delhi19 Dec 2018AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Gautam Jain, Piyush KamalFor Respondent: Shri Surender Pal, Sr.D.R

Section 143(3)Section 14ASection 40a

…n presumption is always there that these funds must have given out of surplus funds This proposition has been upheld by catena of judgment like, CIT vs. Bharti Televentures Ltd., reported in 13 14 331 ITR 502 (Del); CIT vs. Reliance Utilities and Power Ltd., 313 ITR 340 (Bom); CIT vs. HB Stock Holdings Ltd, 184 Taxman 352 (Del). Apart from that learned counsel has brought on record that identical claim has been accepted by the Department right from Assessment Year 2010-11 to 2014-15 and no disallowance was ever made. In view of the aforesaid facts, we do not find any reason to sustain such a disallowance of noti…

M/S. Saisidha Sugar Equipment & Engineering Co. P. Ltd., Pune vs. Deputy Commissioner of Income-Tax

In the result, the appeal of the assessee is allowed

ITA 1725/PUN/2016[2010-11]Status: HeardITAT Pune12 Dec 2018AY 2010-11

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am आयकरअपीलसं. / Ita No.1725/Pun/2016 "नधा"रणवष"/ Assessment Year : 2010-11 M/S Saisidha Sugar Equipment & Engineering Co. P. Ltd., Off. 24, 2Nd Floor, Highway Towers, Chinchwad, Pune. अपीलाथ"/Appellant Pan : Aaccs3391K …. Vs. Dcit, Circle- 10, …. ""यथ"/ Respondent Pune. अपीलाथ"क"ओरसे/ Appellant By : None ""यथ"क"ओरसे/ Respondent By : Shri Amit Dua, Jcit सुनवाईक"तार"ख/ घोषणाक"तार"ख/ Date Of Hearing : 26.11.2018 Date Of Pronouncement: 12.12.2018

For Appellant: NoneFor Respondent: Shri Amit Dua, JCIT

Section 143(3)Section 288ASection 36(1)(iii)Section 40A(3)

…f the adequate interest-free funds and giving of interest free loan of Rs.61.32 lakhs to the sister concerns are undisputed. The principle of ‘presumption’ laid down by the Jurisdictional High Court in the case of CIT vs. Reliance Utilities and Power Ltd., 313 ITR 340 and judgment in the case of CIT vs. HDFC Bank Ltd. (ITA No.330 of 2012 dated 23.07.2014) is guiding principle. The nexus and principle of commercial expediency are subject to principle of presumption laid down by the above binding judgments on this issue. The said principle is extracted hereunder :- CIT vs. Reliance Utilities and Power Ltd., 3…

Kohinoor Developments Corporation, Pune vs. Income-Tax Officer, Ward - 3(2), Pune

In the result, the appeal is partly allowed

ITA 2137/PUN/2017[2010-11]Status: DisposedITAT Pune11 Dec 2018AY 2010-11

Bench: Shri R.S. Syal

Section 14A

…s apparent that the capital of the firm, which is not liable for any interest payment, is far in excess of the amount of investments in securities yielding exempt income. The Hon'ble Bombay High Court in the case of CIT vs. Reliance Utilities & Power Ltd. 313 ITR 340, has held that where an assessee possesses sufficient interest free funds of its own which were generated 3 Kohinoor Developments Corporation in the course of relevant financial years, apart from substantial shareholders’ funds, presumption stands established that the investment in sister concerns were made out of interest free funds and, th…

DCIT, Circle-6(1), Kolkata vs. M/S Integrated Coal Mining Ltd., Kolkata

In the result, the appeal filed by the Revenue is dismissed

ITA 1031/KOL/2017[2012-13]Status: DisposedITAT Kolkata07 Dec 2018AY 2012-13

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Dcit, Circle 6(1), Kolkata Vs. M/S. Integrated Coal Mining Ltd. P-7, Chowringhee Square, 6, Church Lane, Kolkata – 700 069. Kolkata – 700 001. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaci 5584 L (अपीलाथ" /Appellant) (""यथ" / Respondent) ..

For Appellant: Shri D. Mukherjee & A. Goenka, Ld. ARFor Respondent: Shri R. Chowdhury, Addl. CIT

Section 115JSection 14ASection 43Section 43B

…rom the point of view of businessman and not from the view point of the revenue. It is well settled that businessman knows his interest best. We place reliance on the decision of Hon’ble Bombay High Court in the case of CIT vs Reliance Utilities & Power Ltd. (313 ITR 340) (Bom) in support of our view that if the own funds are available and if the same are more than the investments made by the assessee, then it has to be presumed that the investments were made out of own funds borrowed funds. Hence we hold that no disallowance u/s 14A of the Act could be made in these circumstances. 2.6.2. We also find that the in…

Maheshraj Chemicals Pvt.Ltd., Ahmedabad vs. The Dy.CIT., Circle-4, Ahmedabad

In the result the appeal of the assessee is partly allowed

ITA 791/AHD/2012[1999-00]Status: DisposedITAT Ahmedabad06 Dec 2018AY 1999-00

Bench: Shri Waseem Ahmed & Madhumita Royआयकर अपील सं./Ita No.791/Ahd/2012 िनधा"रण वष"/Asstt. Year: 1999-2000 Dcit, Mahesraj Chemicals Pvt. Ltd. Circle-4, Vs. 141, Phase Ii, Gidc, Vatva, Ahmedabad Ahmedabad-382330 Pan:Aabcm0424C

For Appellant: Smt Urvashi Shodhan, ARFor Respondent: Shri Vinod Talwani, Sr.DR

Section 234BSection 271Section 28Section 36Section 80H

…estion of making any disallowance of interest on account of diversion of the fund as discussed above. 24.1 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.…

The Dy. CIT, Circle-4(1)(1), Ahmedabad vs. Sundyota Numandis Pharmaceuticals Pvt. Ltd., Ahmedabad

In the result, appeal filed by the Revenue is dismissed and Cross Objection filed by the Assessee are allowed

ITA 2194/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad30 Nov 2018AY 2011-12

Bench: Shri Pramod Kumar & Shri Mahavir Prasad)

For Appellant: Shri S. K. Dev, Sr. D.RFor Respondent: Shri T.P. Hemani & P.B. Parmar,AR

Section 36Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH (BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. No: 2194/AHD/2015 & C.O. No. 172/AHD/15 (Assessment Year: 2011-12) Dy. Commissioner of V/S Sundyota Numandis Income Tax, Circle-4(1)(1), Pharmaceuticals Pvt. Ltd. Ahmedabad Dyota Numandis House, 705-708, Safal Profitair, Tower-A, 100Ft. Ring Road, Prahladnagar, Ahmedabad-380015 Sundyota Numandis Pharmaceuticals Pvt. Ltd. V/S Dy. Commissioner of Dyota Numandis House, Income Tax, Circle-4(1)(1), 705-708, Safal Profitair, Ahmedabad Tower-A, 100Ft. Ring Road, Prahladna…

Century Enka Limited, Pune vs. DCIT, Circle-6(1), Kolkata

Appeal is partly allowed in above terms

ITA 432/KOL/2017[2013-14]Status: DisposedITAT Kolkata30 Nov 2018AY 2013-14

Bench: Shri S.S.Godara & Shri, M. Balaganeshassessment Year :2013-14

Section 115JSection 143(3)Section 14A

…12 decided on 18.05.2016 holds that the relevant presumption in such an instance is that of utilization of non- interest bearing fund is taxpayer’s investment only as per hon'ble Bombay high court’s landmark decision in CIT vs. Reliance Utilities & Power Ltd. 313 ITR 340 (Bom). We therefore adopt judicial consistency to delete the impugned disallowance of ₹6,31,301/-. The assessee succeeds in its first substantive ground. 3. Next comes assessee’s second substantive ground that the above sec. 14A disallowance ought not to have been included in MAT computation under sec.115JB of the Act. The same is rendered infru…

Multicon Developers Pvt. Ltd., Pune vs. Assistant Commissioner of Income-Tax

In the result, the appeal is partly allowed

ITA 2154/PUN/2016[2010-11]Status: DisposedITAT Pune29 Nov 2018AY 2010-11

Bench: Shri R.S. Syal & Shri Vikas Awasthy

Section 133A

…urplus 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 8 Multicon Developers Pvt. Ltd., 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…

M/S. Eureka Forbes Ltd., Kolkata vs. Addl.CIT, Circle - 10, Kolkata

In the result, the appeals filed by the Revenue for the A

ITA 2171/KOL/2017[2011-12]Status: DisposedITAT Kolkata28 Nov 2018AY 2011-12

Bench: Shri S. S. Godara, J.M. & Dr.A.L.Saini, A.M.)

For Appellant: Shri Abhijit Biswas, Advocate, ld.ARFor Respondent: Shri Saurabh Kumar, Addl. CIT, ld.Sr.DR

Section 143(3)Section 144CSection 14A

…t would be presumed that the investment made by the assesse would be out of interest free funds available with the assesse. For that we rely on the judgment of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Power Ltd, reported in (2009) 313 ITR 340 (Bom), wherein it was held that if there are funds available both, interest free and overdraft and/or loans are taken, then a presumption would arise that investment would be out of interest- free fund generated or available with the company, if the interest-free funds are sufficient to meet the investments. Similar stand was taken by the Hon’ble…