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 367,368 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.

DCIT Cir 3(3)(1), Mumbai vs. Sicom Investment & Finance Ltd, Mumbai

In the result, the appeal Revenue is dismissed and CO of the Assessee is allowed for statistical purposes

ITA 3679/MUM/2016[2012-13]Status: DisposedITAT Mumbai31 May 2018AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am

For Appellant: MP Lohia & Nikhil TiwariFor Respondent: V Vidhyadhar, DR
Section 10(38)Section 143(3)Section 144Section 14ASection 8D

…vestments of the appellant were much lower than interest-free funds available with the assessee in terms of shareholder funds. Citing the decisions of Hon'ble Bombay High Court in CIT v. HOFC Ltd. ITA No. 330 of 2012 and CIT v Reliance Utilities and Power Ltd 313 ITR 340, he observed 'it would have to be presumed that the investment made by the assessee would be out of the interest-free funds available with the assessee." Accordingly, he deleted the addition of Rs. 124.17,8501- made by the assessing officer under Rule 80(2)(ii). However, 6 CO. 317/Mum/2017 he upheld disallowance at the rate of 0,5% of average v…

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

In the result, the appeal of the Revenue and the cross objection of the

ITA 5115/DEL/2015[2006-07]Status: DisposedITAT Delhi31 May 2018AY 2006-07

Bench: Shri R.S. Syal & Smt. Beena A. Pillaiassessment Year : 2006-07 Dcit, Vs. Vipul Ltd., 9-A, 3Rd Floor, Vasant Square Mall, Circle-26(2), Cr Building, Sector-B, Pocket-5, New Delhi. Vasant Kunj, New Delhi. Pan: Aaaca5396C

For Appellant: Shri Rajesh Arora, CAFor Respondent: Shri S.L. Anuragi, Sr. DR
Section 143(3)Section 147Section 148Section 36(1)(iii)

…lus 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…

Deputy Commissioner of Income-Tax vs. Ajanta Infrastructure Pvt. Ltd., Aurangabad

In the result, the appeal of Revenue is dismissed

ITA 955/PUN/2016[2012-13]Status: DisposedITAT Pune30 May 2018AY 2012-13

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: Smt. Deepa KhareFor Respondent: Shri Aseem Sharma
Section 36(1)(iii)

…of Rs.47,12,82,078/-. The Commissioner of Income Tax (Appeals) after examining the facts and taking into consideration the law laid down by the Hon’ble Bombay High Court in the case of Commissioner of Income Tax Vs. Reliance Utilities & Power Ltd. reported as 313 ITR 340 4 ITA No. 955/PUN/2016, A.Y. 2012-13 and various other decisions on this issue directed the Assessing Officer to delete the addition made u/s. 36(1)(iii) of the Act. 4.1 In respect of ground No. 2 of the appeal, the ld. AR submitted that the Assessing Officer has erred in making addition of Rs.36,14,141/- on account of interest income. The ld.…

The Dy. Commissioner of Income Tax, Sabarkantha Circle, Himatnagar vs. The Sabarkantha District Central Co.-Op. Milk Producers Union Ltd., Himatnagar

In the result, appeal of the Revenue is dismissed

ITA 1905/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad25 May 2018AY 2012-13

Bench: Shri Pramod Kumar & Shri Rajpal Yadavआयकर अपील सं./ Ita No.1905/Ahd/2016 "नधा"रण वष"/Asstt. Year: 2012-13 Dcit, Sabarkantha Circle Vs. Sabarkantha District Co-Op. Himatnagar. Milk Producers Union Ltd. Sabar Dairy, Sub Post Boriya Himatnagar 383 006. Pan : Aaaas 5265 L

For Appellant: Shri Y.H. Shah, ARFor Respondent: Shri Saurabh Singh, Sr.DR
Section 14ASection 80PSection 80P(2)(d)

…-आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ - अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD – BENCH ‘A’ BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI RAJPAL YADAV, JUDICIAL MEMBER आयकर अपील सं./ ITA No.1905/Ahd/2016 "नधा"रण वष"/Asstt. Year: 2012-13 DCIT, Sabarkantha Circle Vs. Sabarkantha District Co-op. Himatnagar. Milk Producers Union Ltd. Sabar Dairy, Sub Post Boriya Himatnagar 383 006. PAN : AAAAS 5265 L अपीलाथ"/ (Appellant) "त् यथ"/ (Respondent) Revenue by : Shri Saurabh Singh, Sr.DR Assessee by : Shri Y.H. Shah, AR सुनवाई क" तार"ख/Date of Hearing : 15/03/2018 घोषणा क" तार"ख /Date of Pronou…

Shubh Shanti Services Limited, Kolkata vs. J.C.I.T (OSD), Cir - 5, Kolkata

ITA 650/KOL/2013[2009-10]Status: DisposedITAT Kolkata25 May 2018AY 2009-10

Bench: Shri S.S.Godara & Shri, M. Balaganeshassessment Year :2009-10 Shubh Shanti Services V/S. Jcit,(Osd), Circle-5, Ltd. 31, Netaji Subash Aayakar Bhavan, P-7, Road, 2Nd Floor, Kolkata- Chowringhee Square, 700 001 Kolkata-69 [Pan No.Aagcs 9381 R] .. अपीलाथ" /Appellant ""यथ"/Respondent Assessment Year :2009-10 Dcit, Circle-5, V/S. M/S Shubh Shanti P-7, Chowringhee Services Ltd., 31, Netaji Square, Kolkata-69 Subhas Road, Kolkata-01 .. अपीलाथ" /Appellant ""यथ"/Respondent

Section 143(3)Section 14A

…paper book read with clause-9 in notes of accounts at page 11). We therefore presume that the assessee has advanced its non interest bearing funds only to the above parties as per hon'ble Bombay high court’s decision in CIT vs. Reliance Utility and Power Ltd 313 ITR 340 (Bom) as well as hon'ble apex court’s judgment in Munjal Sales Corporation vs. CIT (2008) 298 ITR 298 (SC). The assessee’s instant second substantive grievance is accepted. We notice that it has also filed its additional technical ground(s) in petition dated 01.06.2016. The same are rendered academic as we have accepted its main substantive groun…

D.C.I.T Cir - 5, Kolkata vs. M/S Shubh Shanti Services Ltd, Kolkata

ITA 2074/KOL/2013[2009-10]Status: DisposedITAT Kolkata25 May 2018AY 2009-10

Bench: Shri S.S.Godara & Shri, M. Balaganeshassessment Year :2009-10 Shubh Shanti Services V/S. Jcit,(Osd), Circle-5, Ltd. 31, Netaji Subash Aayakar Bhavan, P-7, Road, 2Nd Floor, Kolkata- Chowringhee Square, 700 001 Kolkata-69 [Pan No.Aagcs 9381 R] .. अपीलाथ" /Appellant ""यथ"/Respondent Assessment Year :2009-10 Dcit, Circle-5, V/S. M/S Shubh Shanti P-7, Chowringhee Services Ltd., 31, Netaji Square, Kolkata-69 Subhas Road, Kolkata-01 .. अपीलाथ" /Appellant ""यथ"/Respondent

Section 143(3)Section 14A

…paper book read with clause-9 in notes of accounts at page 11). We therefore presume that the assessee has advanced its non interest bearing funds only to the above parties as per hon'ble Bombay high court’s decision in CIT vs. Reliance Utility and Power Ltd 313 ITR 340 (Bom) as well as hon'ble apex court’s judgment in Munjal Sales Corporation vs. CIT (2008) 298 ITR 298 (SC). The assessee’s instant second substantive grievance is accepted. We notice that it has also filed its additional technical ground(s) in petition dated 01.06.2016. The same are rendered academic as we have accepted its main substantive groun…

DCIT, New Delhi vs. Sh. Sumeet Bawa, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 728/DEL/2014[2009-10]Status: DisposedITAT Delhi24 May 2018AY 2009-10

Bench: Shri H.S. Sidhu & Shri N.K. Billaiya[Assessment Year: 2009-10] The D.C.I.T Vs. Shri Sumeet Bawa Circle – 3(1) 494, Vill. Sultanpur New Delhi Sultanpur, Ghitorni Delhi Pan : Aaepb 2767 P [Appellant] [Respondent]

For Appellant: Shri R.S. Singhvi, AdvFor Respondent: Shri Kaushalendra Tiwari, CIT- DR

…couples with the fact that the assessee was having sufficient interest free funds available with it, we do not find any merit in the disallowance. We draw support from the judgment of the Hon'ble Bombay High Court in the case of Reliance Utility and Power Ltd 313 ITR 340 followed in the case of CIT Vs. HDFC Bank Ltd 366 ITR 505. Considering the facts in totality, we do not find any cause of interference with the findings of the ld. CIT(A). 13. In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 24.05.2018. [H.S. SIDHU] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT…

Umesh Chandrashekhar Kabbur, Satara vs. Income Tax Officer, Satara

In the result, appeal of assessee is allowed

ITA 668/PUN/2017[2013-14]Status: DisposedITAT Pune23 May 2018AY 2013-14

Bench: Ms. Sushma Chowla, Jm आयकर अपीऱ सं. / Ita No.668/Pun/2017 यििाारण वषा / Assessment Year : 2013-14

For Appellant: Smt. Deepa KhareFor Respondent: Shri Ajay Modi
Section 143(3)Section 36(1)(iii)

…Officer was upheld. 6. The ld. AR for the assessee before the Tribunal pointed out that the issue stands covered by the ratio laid down by the Hon’ble Bombay High Court in the case of Commissioner of Income Tax Vs. Reliance Utilities & Power Ltd. reported in 313 ITR 340 (Bombay) where the own funds were more than the interest free funds made by the assessee. 7. The learned Departmental Representative for the Revenue on the other hand placed reliance on the order of Commissioner of Income Tax (Appeals). ITA No.668/PUN/2017, 4 A.Y. 2013-14 8. The issue arising in the present appeal is against the disallowance m…

Ganesh Bhaskarrao Manedeshmukh, Pune vs. Income-Tax Officer

In the result, the appeal of assessee is partly allowed in the terms aforesaid

ITA 928/PUN/2016[2010-11]Status: DisposedITAT Pune23 May 2018AY 2010-11

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri Pawan V. AutiFor Respondent: Shri Achal Sharma
Section 143(2)Section 14A

…आयकर अऩीऱीय अधधकरण “ए” न्यायऩीठ ऩुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE श्री डी. करुणाकरा राव, ऱेखा सदस्य, एवं श्री ववकास अवस्थी, न्याययक सदस्य के समक्ष । BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM आयकर अऩीऱ सं. / ITA No.928/PUN/2016 यनधाारण वषा / Assessment Year : 2010-11 Shri Ganesh Bhaskarrao Manedeshmukh, 826/B, Jayjaywanti Apartment, BMCC Road, Shivaji Nagar, Pune – 411004 PAN : ALAMP3417A .......अऩीऱाथी / Appellant बनाम / V/s. The Income Tax Officer, Ward – 3(4), Pune ……प्रत्यथी / Respondent Assessee by : Shri Pawan V. Auti Revenue by : Shri Achal Sharma सुनव…

Dishman Pharmaceuticals & Chemicals Limited, Ahmedabad vs. The ACIT, (OSD), Range-1, Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

ITA 3086/AHD/2013[2006-07]Status: DisposedITAT Ahmedabad23 May 2018AY 2006-07

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

For Respondent: Shri R.P. Maurya, Sr.DR
Section 143(2)Section 143(3)Section 92BSection 92C

…as relied upon the judgment of the Hon’ble Gujarat High Court in the case of CIT Vs. Torrent Power Ltd., 363 ITR 474 (Guj), CIT Vs. Suzlon Energy Ltd., 354 ITR 630 (Guj) and judgment of Bombay High Court in the case of CIT Vs. Reliance Utilities & Power ltd., 313 ITR 340. On the other hand, the ld.DR relied upon the order of the Revenue authorities below. 64. As far reliance of the assessee on the judgment of the Hon’ble Gujarat High Court and Hon’ble Bombay High Court are concerned, proposition laid down in these judgments are not in dispute. The proposition in the decisions is if an assessee has interest free…

The ACIT, (OSD)Range-1, Ahmedabad vs. M/S. Dishman Pharmaceuticals & Chemicals Ltd., Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

ITA 2957/AHD/2013[2006-07]Status: DisposedITAT Ahmedabad23 May 2018AY 2006-07

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

For Respondent: Shri R.P. Maurya, Sr.DR
Section 143(2)Section 143(3)Section 92BSection 92C

…as relied upon the judgment of the Hon’ble Gujarat High Court in the case of CIT Vs. Torrent Power Ltd., 363 ITR 474 (Guj), CIT Vs. Suzlon Energy Ltd., 354 ITR 630 (Guj) and judgment of Bombay High Court in the case of CIT Vs. Reliance Utilities & Power ltd., 313 ITR 340. On the other hand, the ld.DR relied upon the order of the Revenue authorities below. 64. As far reliance of the assessee on the judgment of the Hon’ble Gujarat High Court and Hon’ble Bombay High Court are concerned, proposition laid down in these judgments are not in dispute. The proposition in the decisions is if an assessee has interest free…

The DCIT(OSD)Range-1, Ahmedabad vs. Dishman Pharmaceuticals & Chemicals Ltd., Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

ITA 817/AHD/2011[2006-07]Status: DisposedITAT Ahmedabad23 May 2018AY 2006-07

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

For Respondent: Shri R.P. Maurya, Sr.DR
Section 143(2)Section 143(3)Section 92BSection 92C

…as relied upon the judgment of the Hon’ble Gujarat High Court in the case of CIT Vs. Torrent Power Ltd., 363 ITR 474 (Guj), CIT Vs. Suzlon Energy Ltd., 354 ITR 630 (Guj) and judgment of Bombay High Court in the case of CIT Vs. Reliance Utilities & Power ltd., 313 ITR 340. On the other hand, the ld.DR relied upon the order of the Revenue authorities below. 64. As far reliance of the assessee on the judgment of the Hon’ble Gujarat High Court and Hon’ble Bombay High Court are concerned, proposition laid down in these judgments are not in dispute. The proposition in the decisions is if an assessee has interest free…

Dishman Pharmaceuticals & Chemicals Ltd., Ahmedabad vs. The ACIT., (OSD)Range-1, Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

ITA 773/AHD/2011[2006-07]Status: DisposedITAT Ahmedabad23 May 2018AY 2006-07

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

For Respondent: Shri R.P. Maurya, Sr.DR
Section 143(2)Section 143(3)Section 92BSection 92C

…as relied upon the judgment of the Hon’ble Gujarat High Court in the case of CIT Vs. Torrent Power Ltd., 363 ITR 474 (Guj), CIT Vs. Suzlon Energy Ltd., 354 ITR 630 (Guj) and judgment of Bombay High Court in the case of CIT Vs. Reliance Utilities & Power ltd., 313 ITR 340. On the other hand, the ld.DR relied upon the order of the Revenue authorities below. 64. As far reliance of the assessee on the judgment of the Hon’ble Gujarat High Court and Hon’ble Bombay High Court are concerned, proposition laid down in these judgments are not in dispute. The proposition in the decisions is if an assessee has interest free…

The DCIT(OSD)Range-1, Ahmedabad vs. Dishman Pharmaceuticals & Chemicals Ltd., Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

ITA 692/AHD/2011[2005-06]Status: DisposedITAT Ahmedabad23 May 2018AY 2005-06

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

For Respondent: Shri R.P. Maurya, Sr.DR
Section 143(2)Section 143(3)Section 92BSection 92C

…as relied upon the judgment of the Hon’ble Gujarat High Court in the case of CIT Vs. Torrent Power Ltd., 363 ITR 474 (Guj), CIT Vs. Suzlon Energy Ltd., 354 ITR 630 (Guj) and judgment of Bombay High Court in the case of CIT Vs. Reliance Utilities & Power ltd., 313 ITR 340. On the other hand, the ld.DR relied upon the order of the Revenue authorities below. 64. As far reliance of the assessee on the judgment of the Hon’ble Gujarat High Court and Hon’ble Bombay High Court are concerned, proposition laid down in these judgments are not in dispute. The proposition in the decisions is if an assessee has interest free…

JCIT, (OSD), Cir-4(1), Kolkata vs. M/S Jay Shree Tea & Industries Ltd., Kolkata

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

ITA 737/KOL/2016[2012-2013]Status: DisposedITAT Kolkata23 May 2018AY 2012-2013

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita Nos.736 & 737/Kol/2016 ("नधा"रणवष" / Assessment Years: 2009-10 & 2012-13) Jcit (Osd), Cir-4(1), Kolkata Vs. M/S. Jay Shree Tea & Industries Ltd. P-7, Chowringhee Square, 10, Camac Street, Industry House, 15Th Floor, Kolkata – Kolkata – 700 069. 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aaacj 7788 D (Appellant) .. (Respondent)

For Appellant: Shri G. Mallikarjuna, CIT-DRFor Respondent: Shri B. K. Chaturvedi, AR
Section 143Section 143(3)Section 147Section 148Section 14A

…the investments and when that point is not in dispute, no disallowance could be made u/s 14A of the Act read with Rule 8D(2)(ii) of the Rules. Reliance in this regard is placed on the following decisions:- CIT-vs.- Reliance Utilities & Power ltd. reported in 313 ITR 340 (Bom.) Interest on borrowed capital- investments by assessee- finding that investments were from interest free funds available with assessee-borrowed capital for the purposes of business-interest deductible under Income Tax Act u/s 36(1)(iii). G.D. MetsteelPvt. Ltd. -vs.- ACIT reported in 142 TTJ 641 (Mumbai Tribunal) Held that the investments ar…

JCIT, (OSD), Cir-4(1), Kolkata vs. M/S Jay Shree Tea & Industries Ltd., Kolkata

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

ITA 736/KOL/2016[2009-2010]Status: DisposedITAT Kolkata23 May 2018AY 2009-2010

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita Nos.736 & 737/Kol/2016 ("नधा"रणवष" / Assessment Years: 2009-10 & 2012-13) Jcit (Osd), Cir-4(1), Kolkata Vs. M/S. Jay Shree Tea & Industries Ltd. P-7, Chowringhee Square, 10, Camac Street, Industry House, 15Th Floor, Kolkata – Kolkata – 700 069. 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aaacj 7788 D (Appellant) .. (Respondent)

For Appellant: Shri G. Mallikarjuna, CIT-DRFor Respondent: Shri B. K. Chaturvedi, AR
Section 143Section 143(3)Section 147Section 148Section 14A

…the investments and when that point is not in dispute, no disallowance could be made u/s 14A of the Act read with Rule 8D(2)(ii) of the Rules. Reliance in this regard is placed on the following decisions:- CIT-vs.- Reliance Utilities & Power ltd. reported in 313 ITR 340 (Bom.) Interest on borrowed capital- investments by assessee- finding that investments were from interest free funds available with assessee-borrowed capital for the purposes of business-interest deductible under Income Tax Act u/s 36(1)(iii). G.D. MetsteelPvt. Ltd. -vs.- ACIT reported in 142 TTJ 641 (Mumbai Tribunal) Held that the investments ar…

Asstt.Commissioner of Income Tax, Ludhiana vs. M/S Mrs.Bectors Food Specilties Ltd, Ludhiana

ITA 559/CHANDI/2017[2013-14]Status: DisposedITAT Chandigarh21 May 2018AY 2013-14

Bench: Smt. Diva Singh & Dr. B.R.R. Kumar

For Appellant: Sh. Subhash AggarwalFor Respondent: Smt. Chandrakanta
Section 14ASection 36Section 80I

…08/2014 for A.Y. 2008-09 In this case the Hon'ble High Court upheld the disallowance of interest expenditure computed as per rule 8D(2)(ii) for mixed funds. The Hon'ble High Court distinguished the decision of Bombay High Court in case of Reliance utilities (313 ITR 340) and Punjab & Haryana High Court in case of Hero Cycles (323 ITR 528) for the proposition that when interest free funds are available with the assessee then it will be presumed that such funds have been invested in various investment. The relevant extract of the judgement is as under: "Learned counsel for the appellant refers to Bombay High Court…

Asstt.Commissioner of Income Tax, Ludhiana vs. M/S Mrs.Bectors Food Specilties Ltd, Ludhiana

ITA 558/CHANDI/2017[2012-13]Status: DisposedITAT Chandigarh21 May 2018AY 2012-13

Bench: Smt. Diva Singh & Dr. B.R.R. Kumar

For Appellant: Sh. Subhash AggarwalFor Respondent: Smt. Chandrakanta
Section 14ASection 36Section 80I

…08/2014 for A.Y. 2008-09 In this case the Hon'ble High Court upheld the disallowance of interest expenditure computed as per rule 8D(2)(ii) for mixed funds. The Hon'ble High Court distinguished the decision of Bombay High Court in case of Reliance utilities (313 ITR 340) and Punjab & Haryana High Court in case of Hero Cycles (323 ITR 528) for the proposition that when interest free funds are available with the assessee then it will be presumed that such funds have been invested in various investment. The relevant extract of the judgement is as under: "Learned counsel for the appellant refers to Bombay High Court…

Asstt.Commissioner of Income Tax, Ludhiana vs. M/S Mrs.Bectors Food Specilties Ltd, Ludhiana

ITA 557/CHANDI/2017[2011-12]Status: DisposedITAT Chandigarh21 May 2018AY 2011-12

Bench: Smt. Diva Singh & Dr. B.R.R. Kumar

For Appellant: Sh. Subhash AggarwalFor Respondent: Smt. Chandrakanta
Section 14ASection 36Section 80I

…08/2014 for A.Y. 2008-09 In this case the Hon'ble High Court upheld the disallowance of interest expenditure computed as per rule 8D(2)(ii) for mixed funds. The Hon'ble High Court distinguished the decision of Bombay High Court in case of Reliance utilities (313 ITR 340) and Punjab & Haryana High Court in case of Hero Cycles (323 ITR 528) for the proposition that when interest free funds are available with the assessee then it will be presumed that such funds have been invested in various investment. The relevant extract of the judgement is as under: "Learned counsel for the appellant refers to Bombay High Court…

Asstt.Commissioner of Income Tax, Ludhiana vs. M/S Mrs.Bectors Food Specilties Ltd, Ludhiana

ITA 556/CHANDI/2017[2010-11]Status: DisposedITAT Chandigarh21 May 2018AY 2010-11

Bench: Smt. Diva Singh & Dr. B.R.R. Kumar

For Appellant: Sh. Subhash AggarwalFor Respondent: Smt. Chandrakanta
Section 14ASection 36Section 80I

…08/2014 for A.Y. 2008-09 In this case the Hon'ble High Court upheld the disallowance of interest expenditure computed as per rule 8D(2)(ii) for mixed funds. The Hon'ble High Court distinguished the decision of Bombay High Court in case of Reliance utilities (313 ITR 340) and Punjab & Haryana High Court in case of Hero Cycles (323 ITR 528) for the proposition that when interest free funds are available with the assessee then it will be presumed that such funds have been invested in various investment. The relevant extract of the judgement is as under: "Learned counsel for the appellant refers to Bombay High Court…