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 367,302 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 2(2)(2), Mumbai vs. Milton Plastics Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 376/MUM/2017[2012-13]Status: DisposedITAT Mumbai29 Sept 2017AY 2012-13

Bench: Shri G.S. Pannu & Shri Pawan Singh: A.Y : 2012-13

For Appellant: Shri V. JustinFor Respondent: None
Section 143(3)Section 14A

…ielded the exempt income and, therefore, there is a presumption that such investments are out of interest-free funds. The aforesaid proposition is fully supported by the judgment of the Hon'ble Bombay High Court in the case of Reliance Utilities & Power Ltd., 313 ITR 340 (Bom) and the same has also been found to be applicable in the context of Sec. 14A of the Act by the Hon'ble Bombay High Court in the case of HDFC Bank Ltd. in Writ Petition no. 1753 of 2016 dated 25.02.2016. 9. The argument of the Revenue that the decision relied upon by the CIT(A) in the case of HDFC Bank Ltd. reported in 366 ITR 505 (Bom) is n…

Kuloday Technopack P. Ltd, Mumbai vs. ITO 8(2)(2), Mumbai

In the result, appeal of the assessee in ITA No

ITA 3300/MUM/2013[2009-10]Status: DisposedITAT Mumbai29 Sept 2017AY 2009-10

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 3300/Mum/2013 (नििाारण वर्ा / Assessment Year : 2009-10 ) आयकर अपीऱ सं./I.T.A. No. 2423/Mum/2014 (नििाारण वर्ा / Assessment Year : 2010-11)

For Appellant: Shri. M. SubramanianFor Respondent: Shri Rajesh Kumar Yadav,DR
Section 143(3)Section 154Section 172Section 172(1)Section 194CSection 195Section 40

…only Rs. 4,48,729/-, whereas the increase in the bank charges is approximately of Rs. 17 lakhs. The appellant has relied on the following case laws. i. Ahuja Platinium Properties Pvt. Ltd. Vs. CIT (ITA T Mumbai) ii. CIT vs. Reliance Utilities and Power Ltd., 313 ITR 340 (Bom) iii. DCIT vs. Core Health Care Ltd. 289 ITR 194 (SC) 4.4 In the above cases, it is pertinent to note the decision given by the Hon'ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd., wherein the Hon'ble High Court has held that, "if there are interest free funds available an assessee is sufficient to meet its inv…

Allen Career Institute, Jaipur vs. JCIT, Kota

In the result, the ground no

ITA 10/JPR/2013[2009-10]Status: DisposedITAT Jaipur27 Sept 2017AY 2009-10
For Appellant: Shri Mahendra Gargieya (Adv) &For Respondent: Shri R.A. Verma (Addl.CIT)
Section 143(3)Section 14ASection 234ASection 244A

…r post tax returns than Bank FDRs due to indexation benefit where mutual funds units are held for a period of greater than one year. 14. The assessee further relied on the decision of Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd. 313 ITR 340 and the decision of Hon’ble Delhi High Court in the case of CIT V. Bharti Televenture Ltd. 51 DTR 98. The assessee has relied upon the decision of Coordinate Bench in case of ACIT vs. Sh. Ram Kishan Verma Prop. M/s Resonance, Kota stating that the facts of the said case are exactly identical to the facts of the assessee. 15. The ld. CIT(A) howev…

Asst CIT Cen Cir 2(4), Mumbai vs. Twinkle Enviro Tech P.Ltd, Mumbai

In the result, the appeal is allowed for statistical purposes

ITA 5052/MUM/2015[2011-12]Status: DisposedITAT Mumbai27 Sept 2017AY 2011-12

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2011-12 Acit-2(4) Twinkle Enviro Tech P. Room No. 802, 8Th Ltd. 317/318 Parvatiindl. Vs. Floor, Old Cgo Estate, Sunmill Building, Annex Compound, Lower M.K. Road Parel(W) Mumbai-400020. Mumbai-400013 Pan No. Aaact4038N (Appellant) (Respondent) Revenue By : Shri Ram Tiwari, Dr Assessee By : None Date Of Hearing : 12/07/2017 Date Of Pronouncement: 27/09/2017

For Appellant: NoneFor Respondent: Shri Ram Tiwari, DR
Section 10(34)Section 143(3)Section 14A

…bject/purpose of levy of tax on income. 6.2 In HDFC Bank Ltd. vs. DCIT [2016] 67 taxmann.com 42 (Bom), the Hon'ble Bombay High Court referring to the decision in CIT vs. HDFC Bank Ltd. [2014] 366 ITR 505 (Bom) and CIT v. Reliance Utilities & Power Ltd. [2009] 313 ITR 340 (Bom) held as under : “15. It is clear that for the first time in the case of HDFC Bank Ltd. (supra) that this Court took a view that the presumption which has been laid down in Reliance Utilities & Power Ltd. (supra) with regard to investment in tax free securities coming out of assessee's own funds in case the same are in excess of the investme…

Briggs Trading Co. P.Ltd, Mumbai vs. ACIT Cir 6(1), Mumbai

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

ITA 3961/MUM/2011[2007-08]Status: DisposedITAT Mumbai27 Sept 2017AY 2007-08

Bench: Shri B. R. Baskaran, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 1911/Mum/2008 (निर्धारणवर्ा / Assessment Year: 2004-05)

Section 14A

…ed upon the judgment in the case of CIT Vrs. HDFC Bank Ltd 366 ITR 19 I.T.A. No. 1911 & 2596/Mum/2008, 3744 & 3416/Mum/2009, 3960 & 4747/Mum/2011 & 3961/Mum/2011 Briggs Trading Company Pvt. Ltd. 505 (Bombay) and CIT Vrs. Reliance Utilities & Power Ltd [2009] 313 ITR 340 (Bombay). 26. On the other hand Ld. DR relied upon the order passed by revenue authorities. 27. We have heard the counsels for both the parties and we have also perused the material placed on record as well as the orders passed by the revenue authorities. After considering the facts of the present case, we found that the AO as well as Ld. CIT(A)…

Nova Properties Pvt. Ltd., Ahmedabad vs. The ACIT, Circle-5, Ahmedabad

In the result, the appeals are allowed

ITA 3455/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad22 Sept 2017AY 2011-12
Section 14ASection 234B

…earing funds separately and therefore it is not possible for the assessee to pin point as to which of the funds have been used for making the investments. We find that Hon’ble Bombay High Court In the case of Reliance Utilities & Power Ltd. reported at (2009) 313 ITR 340 (Bom.) has held that if there are funds available, both interest-free and overdraft and / or loan taken, then a presumption would arise that investments would be out of interest-free funds generated or available with the company, if the interest-free funds were sufficient to meet the investments. Before us, ld.Sr.DR has not placed any contrary bi…

DCIT (Ltu)1, Mumbai vs. Sterlite Technologies Ltd

ITA 1044/MUM/2015[2011-12]Status: DisposedITAT Mumbai22 Sept 2017AY 2011-12

Bench: Shri Shamim Yahya, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 1044/Mum/2015, (निर्धारणवर्ा / Assessment Year: 2009-10)

For Appellant: Sh. V. JustinFor Respondent: Sh. B. V. Jhaveri
Section 115JSection 14A

…bearing funds were more than the investment in the tax free securities. Consequently, the !TAT rightly held that there was no basis for deeming that the assessee had used borrowed funds for Investment in tax free securities. (Reliance Utilities and Power Ltd 313 ITR 340 (Born), East India Pharmaceutical Works 224 ITR 627 (SC) & Woolcombers 134 ITR 219 (Cal) followed)." 7.9 The appellant has also referred and relied upon the appellant's decision in its own case for AY 2007-08, 08-09 & 09-10. The copy of the appellate order for AY 2009-10 dated 2.12.2013 is filed wherein Ground No.7 and 8, the issue of disallowanc…

Asst CIT Cir 6(2)(2), Mumbai vs. Exim Trade Links (India) P.Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 1672/MUM/2017[2009-10]Status: DisposedITAT Mumbai20 Sept 2017AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm Asst. Cit Cir 6 (2)(2) Vs. M/S. Exim Trade Links R.No.563, Aayakar Bhavan (India) P. Ltd., M.K. Road, Churchgate 31/33, Nishanpada, Dongri Mumbai – 400 020 Mumbai – 400 009 Pan/Gir No. Aaace8448B Appellant) .. Respondent)

Section 143(3)Section 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL “J”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN, JM Asst. CIT CIR 6 (2)(2) Vs. M/s. Exim Trade Links R.No.563, Aayakar Bhavan (India) P. Ltd., M.K. Road, Churchgate 31/33, Nishanpada, Dongri Mumbai – 400 020 Mumbai – 400 009 PAN/GIR No. AAACE8448B Appellant) .. Respondent) Revenue by Ms. Arju Garodia Assessee by Shri Sanjay C. Shah Date of Hearing 24/08/2017 Date of Pronouncement 20/09/2017 आदेश / O R D E R PER R.C.SHARMA (A.M): This is an appeal filed by the revenue against the order of CIT(A)- 12, Mumbai dated 01/12/2016 for A.Y. 2009-10 in the matte…

D.C.I.T Cir - 10, Kolkata vs. M/S Vesuvius India Ltd., Kolkata

In the result, the appeal of the revenue is dismissed and that of appeal of the assessee is treated as partly allowed for statistical purposes

ITA 2127/KOL/2013[2006-07]Status: DisposedITAT Kolkata15 Sept 2017AY 2006-07

…n the given 12 I.T.A. Nos. 2127 & 2024 887/Kol/2013 M/s Vesuvius India Ltd circumstances can be made. The learned AR in support of his claim has relied on the judgment of Bombay High Court in the case of CIT vs Reliance Utilities and Power Ltd. reported in 313 ITR 340. 5. The assessee alternatively and without prejudice to the above further submitted that if at all the interest expenses need to be capitalised then the depreciation on the same should be allowed. However, the Ld. CIT (A) after hearing the contentions of the assessee has confirmed the order of AO by observing as under: “Appeal on ground no 4 and…

Vesuvius India Limited, Kolkata vs. D.C.I.T Cir - 10, Kolkata

In the result, the appeal of the revenue is dismissed and that of appeal of the assessee is treated as partly allowed for statistical purposes

ITA 2024/KOL/2013[2006-07]Status: DisposedITAT Kolkata15 Sept 2017AY 2006-07

…n the given 12 I.T.A. Nos. 2127 & 2024 887/Kol/2013 M/s Vesuvius India Ltd circumstances can be made. The learned AR in support of his claim has relied on the judgment of Bombay High Court in the case of CIT vs Reliance Utilities and Power Ltd. reported in 313 ITR 340. 5. The assessee alternatively and without prejudice to the above further submitted that if at all the interest expenses need to be capitalised then the depreciation on the same should be allowed. However, the Ld. CIT (A) after hearing the contentions of the assessee has confirmed the order of AO by observing as under: “Appeal on ground no 4 and…

ACIT- 3(1)(1), Mumbai vs. Dsp Blackarock Investment Managers Pvt. Ltd., Mumbai

In the result, appeal of the Revenue is partly allowed for statistical purposes, as above

ITA 2995/MUM/2016[2010-11]Status: DisposedITAT Mumbai15 Sept 2017AY 2010-11

Bench: Shri G.S. Pannu & Shri Ravish Sood: A.Y : 2010-11

For Appellant: Shri V. JustinFor Respondent: Shri Nitesh Joshi
Section 10(35)Section 14Section 143(3)Section 14ASection 14A(2)

…the borrowed funds being loan outstanding towards purchase of vehicles, no interest can be said to be attributable to the impugned investments following the ratio of the judgment of the Hon'ble Bombay High Court in the case of Reliance Utilities & Power Ltd., 313 ITR 340 (Bom). Though the aforesaid assertions of the assessee were very much before the CIT(A), so however, we find that the CIT(A) has adjudicated the issue by merely referring to the earlier decision of the Tribunal in the case of the assessee for Assessment Year 2008-09 (supra). Ostensibly, and as fairly conceded by the learned representative at the…

DCIT 4(1), Mumbai vs. Icici Securities P. Ltd, Mumbai

In the result, the appeal of the assessee for the AY 2008-09 is partly allowed

ITA 2346/MUM/2012[2008-09]Status: DisposedITAT Mumbai15 Sept 2017AY 2008-09

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2007-08 Icici Securities Ltd. Acit-4(1) Icici Centre, H.T. Parekh Vs. Mumbai. Marg, Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2007-08 Dcit-4(1) Icici Securities Ltd. 6Th Floor Aayakar Bhavan, Vs. Icici Centre, H.T. M.K. Road Parekh Marg, Mumba-400020. Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2008-09 Icici Securities Ltd. Acit-4(1) Icici Centre, H.T. Parekh Vs. 6Th Floor Aayakar Marg, Churchgate, Bhavan, M.K. Road Mumbai-400020. Mumba-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2008-09 Dcit-4(1) Icici Securities Ltd. Mumbai. Vs. Icici Centre, H.T. Parekh Marg, Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessee By : Mr. Yogesh A. Thar, Ar Revenue By: Mr. B.C.S. Naik, Dr Date Of Hearing : 20/06/2017 Date Of Pronouncement: 15/09/2017

For Appellant: Mr. Yogesh A. Thar, ARFor Respondent: Mr. B.C.S. Naik, DR

…Ld. CIT(A). 13.1 Before us, the Ld. counsel of the assessee submits that the net worth of the assessee is much more than investments made in the shares and units and hence, applying the ratio of decision of the Hon’ble Bombay High Court in Reliance utilities (313 ITR 340), it is presumed that investment made in these equity shares and units are made out of own funds and not out of borrowed funds. Hence, no disallowance should be made on account of interest expense u/s 14A of the Act. 13.2 On the other hand, the Ld. DR supports the order passed by the Ld. CIT(A). 13.3 We have heard the rival submissions and peruse…

Icici Securities Ltd (Earlier Known As Icici Brokerage Services Ltd), Mumbai vs. Addl CIT Cir 4(1), Mumbai

In the result, the appeal of the assessee for the AY 2008-09 is partly allowed

ITA 1906/MUM/2012[2008-09]Status: DisposedITAT Mumbai15 Sept 2017AY 2008-09

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2007-08 Icici Securities Ltd. Acit-4(1) Icici Centre, H.T. Parekh Vs. Mumbai. Marg, Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2007-08 Dcit-4(1) Icici Securities Ltd. 6Th Floor Aayakar Bhavan, Vs. Icici Centre, H.T. M.K. Road Parekh Marg, Mumba-400020. Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2008-09 Icici Securities Ltd. Acit-4(1) Icici Centre, H.T. Parekh Vs. 6Th Floor Aayakar Marg, Churchgate, Bhavan, M.K. Road Mumbai-400020. Mumba-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2008-09 Dcit-4(1) Icici Securities Ltd. Mumbai. Vs. Icici Centre, H.T. Parekh Marg, Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessee By : Mr. Yogesh A. Thar, Ar Revenue By: Mr. B.C.S. Naik, Dr Date Of Hearing : 20/06/2017 Date Of Pronouncement: 15/09/2017

For Appellant: Mr. Yogesh A. Thar, ARFor Respondent: Mr. B.C.S. Naik, DR

…Ld. CIT(A). 13.1 Before us, the Ld. counsel of the assessee submits that the net worth of the assessee is much more than investments made in the shares and units and hence, applying the ratio of decision of the Hon’ble Bombay High Court in Reliance utilities (313 ITR 340), it is presumed that investment made in these equity shares and units are made out of own funds and not out of borrowed funds. Hence, no disallowance should be made on account of interest expense u/s 14A of the Act. 13.2 On the other hand, the Ld. DR supports the order passed by the Ld. CIT(A). 13.3 We have heard the rival submissions and peruse…

D.C.I.T.4(1), Mumbai vs. Icici Securities Ltd., Mumbai

In the result, the appeal of the assessee for the AY 2008-09 is partly allowed

ITA 2702/MUM/2011[2007-08]Status: DisposedITAT Mumbai15 Sept 2017AY 2007-08

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2007-08 Icici Securities Ltd. Acit-4(1) Icici Centre, H.T. Parekh Vs. Mumbai. Marg, Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2007-08 Dcit-4(1) Icici Securities Ltd. 6Th Floor Aayakar Bhavan, Vs. Icici Centre, H.T. M.K. Road Parekh Marg, Mumba-400020. Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2008-09 Icici Securities Ltd. Acit-4(1) Icici Centre, H.T. Parekh Vs. 6Th Floor Aayakar Marg, Churchgate, Bhavan, M.K. Road Mumbai-400020. Mumba-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2008-09 Dcit-4(1) Icici Securities Ltd. Mumbai. Vs. Icici Centre, H.T. Parekh Marg, Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessee By : Mr. Yogesh A. Thar, Ar Revenue By: Mr. B.C.S. Naik, Dr Date Of Hearing : 20/06/2017 Date Of Pronouncement: 15/09/2017

For Appellant: Mr. Yogesh A. Thar, ARFor Respondent: Mr. B.C.S. Naik, DR

…Ld. CIT(A). 13.1 Before us, the Ld. counsel of the assessee submits that the net worth of the assessee is much more than investments made in the shares and units and hence, applying the ratio of decision of the Hon’ble Bombay High Court in Reliance utilities (313 ITR 340), it is presumed that investment made in these equity shares and units are made out of own funds and not out of borrowed funds. Hence, no disallowance should be made on account of interest expense u/s 14A of the Act. 13.2 On the other hand, the Ld. DR supports the order passed by the Ld. CIT(A). 13.3 We have heard the rival submissions and peruse…

Icici Securities Ltd ( Earlier Known As Brokerage Services Ltd), Mumbai vs. Addl CIT Cir 4(1), Mumbai

In the result, the appeal of the assessee for the AY 2008-09 is partly allowed

ITA 2437/MUM/2011[2007-08]Status: DisposedITAT Mumbai15 Sept 2017AY 2007-08

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2007-08 Icici Securities Ltd. Acit-4(1) Icici Centre, H.T. Parekh Vs. Mumbai. Marg, Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2007-08 Dcit-4(1) Icici Securities Ltd. 6Th Floor Aayakar Bhavan, Vs. Icici Centre, H.T. M.K. Road Parekh Marg, Mumba-400020. Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2008-09 Icici Securities Ltd. Acit-4(1) Icici Centre, H.T. Parekh Vs. 6Th Floor Aayakar Marg, Churchgate, Bhavan, M.K. Road Mumbai-400020. Mumba-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessment Year: 2008-09 Dcit-4(1) Icici Securities Ltd. Mumbai. Vs. Icici Centre, H.T. Parekh Marg, Churchgate, Mumbai-400020. Pan No. Aaaci0996E (Appellant) (Respondent) Assessee By : Mr. Yogesh A. Thar, Ar Revenue By: Mr. B.C.S. Naik, Dr Date Of Hearing : 20/06/2017 Date Of Pronouncement: 15/09/2017

For Appellant: Mr. Yogesh A. Thar, ARFor Respondent: Mr. B.C.S. Naik, DR

…Ld. CIT(A). 13.1 Before us, the Ld. counsel of the assessee submits that the net worth of the assessee is much more than investments made in the shares and units and hence, applying the ratio of decision of the Hon’ble Bombay High Court in Reliance utilities (313 ITR 340), it is presumed that investment made in these equity shares and units are made out of own funds and not out of borrowed funds. Hence, no disallowance should be made on account of interest expense u/s 14A of the Act. 13.2 On the other hand, the Ld. DR supports the order passed by the Ld. CIT(A). 13.3 We have heard the rival submissions and peruse…

ITO, New Delhi vs. M/S Everplus Securities & Finance Ltd., New Delhi

In the result, appeal of the Revenue stands dismissed

ITA 6656/DEL/2015[2011-12]Status: DisposedITAT Delhi14 Sept 2017AY 2011-12

Bench: Shri. G. D. Agrawal & Shri Amit Shukla

For Respondent: Shri K. Sampath, Advocate
Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”, NEW DELHI BEFORE SHRI. G. D. AGRAWAL, PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER I.T.A. No.6656/DEL/2015 Assessment Year:2011-12 ITO v. M/s Everplus Securities & Ward 8(4) Finance Ltd. New Delhi 28, Najafgarh road New Delhi TAN/PAN:AAACE2672H (Applicant) (Respondent) Applicant by: Shri S.S. Rana, CIT (DR) Respondent by: Shri K. Sampath, Advocate Date of hearing: 24 08 2017 Date of pronouncement: 14 09 2017 O R D E R PER AMIT SHUKLA, J.M.: The aforesaid appeal has been filed by the Revenue against the impugned order dated 24/9/2015, passed by the ld. CIT (…

Hemmo Pharmaceutical P.Ltd, Mumbai vs. DCIT 4(2), Mumbai

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

ITA 5292/MUM/2015[2011-12]Status: DisposedITAT Mumbai13 Sept 2017AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunathan, Hon'Blem/S. Hemmo Pharmaceuticals Pvt Ltd V. Dcit- 4(2) 113-115-Turf Estate, Aaykar Bhawan Shakti Mills Lane Mumbai Off. D.E. Mosses Road Mahalaxmi Mumbai 400011

For Appellant: Shri Jayesh D Dadia, CAFor Respondent: Shri Omi Nineghen
Section 14A

…se there should not be any disallowance u/s 14A of the Act. The Learned Counsel for the assessee submits that the Coordinate Bench also directed to consider the binding judgment of the Hon'ble Bombay High Court in the case of Reliance Utilities and Power Ltd [313 ITR 340]. Learned Counsel for the assessee further submits that the Coordinate Bench also directed the Assessing Officer to consider only those investments which yielded dividend income for the purpose of computing disallowance u/s 14A of the Act read with Rule 8D. The Learned Counsel for the assessee submits that a similar direction may be given for the…

DCIT 10(3), Mumbai vs. Bombay Oxygen Corporation Ltd, Mumbai

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

ITA 767/MUM/2014[2008-09]Status: DisposedITAT Mumbai13 Sept 2017AY 2008-09

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

For Appellant: Shri Manish V. Shah, C.AFor Respondent: Shri Vidusha Kalra
Section 10Section 14A

…xamined the bank account of the assessee and found that the funds were invested from out of the sale proceeds of land and there is one to one correlation. Following the decision of the Hon'ble Bombay High Court in the case of Reliance Utilities and Power Ltd [313 ITR 340] Ld.CIT(A) deleted the disallowance. However, he sustained the disallowance in respect of the administrative expenses of ₹.35,56,410/- being 0.5% of the average investments. 5. Ld. DR placing reliance on the order of the Assessing Officer submits that Ld.CIT(A) is not justified in deleting the interest disallowance. 6. We have heard the rival s…

DCIT Cir 3(3), Mumbai vs. Kail Ltd, Mumbai

In the result, appeals of the Revenue are partly allowed for statistical purposes

ITA 5716/MUM/2013[2010-11]Status: DisposedITAT Mumbai13 Sept 2017AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunathan, Hon'Ble

For Appellant: Shri Bhupendra KarkhanisFor Respondent: Shri M.C. Omi Ningeshen
Section 14A

…he own funds of the assessee in the form of share capital, reserves and surplus are more than the investments in all these years and also in view of the decision of the Hon'ble Jurisdictional High Court in the case of CIT v. Reliance Utilities and Power Ltd. [313 ITR 340], wherein it was held that if there are sufficient interest free funds available to assessee to meet its investments and at the same time the assessee also raised a loan it can be presumed that investments were from interest free funds available, the Ld.CIT(A) deleted the M/s. Kail Ltd. disallowance made in respect of the interest disallowance ma…

DCIT Cir 3(3), Mumbai vs. Kali Ltd, Mumbai

In the result, appeals of the Revenue are partly allowed for statistical purposes

ITA 1855/MUM/2013[2009-10]Status: DisposedITAT Mumbai13 Sept 2017AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunathan, Hon'Ble

For Appellant: Shri Bhupendra KarkhanisFor Respondent: Shri M.C. Omi Ningeshen
Section 14A

…he own funds of the assessee in the form of share capital, reserves and surplus are more than the investments in all these years and also in view of the decision of the Hon'ble Jurisdictional High Court in the case of CIT v. Reliance Utilities and Power Ltd. [313 ITR 340], wherein it was held that if there are sufficient interest free funds available to assessee to meet its investments and at the same time the assessee also raised a loan it can be presumed that investments were from interest free funds available, the Ld.CIT(A) deleted the M/s. Kail Ltd. disallowance made in respect of the interest disallowance ma…