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 367,154 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.

Sapphire Foods India Limited, Mumbai vs. DCIT, Circle 3(3)(1), Mumbai

In the result the appeal filed by the assessee stands dismissed

ITA 3579/MUM/2024[AY 2022-23]Status: DisposedITAT Mumbai13 Jan 2025

Bench: Smt. Beena Pillai, Jm

Section 143(2)Section 14ASection 250

…had sufficient own funds that is more than the borrowed funds, and therefore it cannot presumed that, the assessee made any investments from the borrowed funds: • decision of Hon’ble Bombay High Court in case of Reliance Utilities and Power Ltd., reported in 313 ITR 340. • The assessee also took cue from the decision of Hon’ble Supreme Court in case of East India Pharmaceutical Works Ltd reported in 224 ITR 667 and decision of Hon’ble Calcutta High Court in case of Woolcombers of India Ltd reported in 134 ITR 219. • Decision of Hon’ble Delhi High Court in case of the Tin Box Co. reported in 260 ITR 637 • decisio…

Manju Dudala, Hyderabad vs. Income Tax Officer, Ward-11(3), Hyderabad

In the result, appeal ITA

ITA 665/HYD/2024[2017-18]Status: DisposedITAT Hyderabad08 Jan 2025AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: Shri V. Siva Kumar, AdvocateFor Respondent: Shri B. Bala Krishna, CIT-DR

…y the assessee, has made an addition of Rs.3,08,907/-. 32. On appeal, the learned CIT(A) deleted the addition made by the Assessing Officer by following the decision of Hon’ble High Court of Bombay in the case of CIT vs., Reliance Utilities and Power Limited 313 ITR 340 (Bom.) by holding that the appellant has sufficient funds in it’s accounts to explain investments made in shares and mutual funds which earned exempt income. Therefore, there is no reason to sustain the disallowance made by the Assessing Officer towards expense relatable to exempt income. 33. Aggrieved by the order of the learned CIT(A), the Rev…

Dy. Commissioner of Income Tax Circle-7 Pune, Pune vs. John Deere India Private Limited, Pune

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

ITA 1910/PUN/2024[2015-16]Status: DisposedITAT Pune30 Dec 2024AY 2015-16

Bench: SHRI R. K. PANDA (Vice President), SHRI VINAY BHAMORE (Judicial Member)

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Ramnath P. Murkune

Section 143(2)Section 14A

…ant company was having sufficient interest free own funds out of which the alleged investments were made. In this regard, reliance is placed in the judgement of the Hon’ble High Court of Bombay in the case of CIT Vs. Reliance Utilities & Power Ltd reported in 313 ITR 340(Bom) wherein, it has been held 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 Appellant has made investments…

The Dy CIT CC-38, Mumbai vs. M/S. United Phosphourous Ltd., Mumbai

ITA 4099/MUM/2004[2000-2001]Status: DisposedITAT Mumbai24 Dec 2024AY 2000-2001

Bench: Shri Amit Shukla & Smt.Renu Jauhri, Accountan Member

For Appellant: Ms. Vasanti Patel, Adv &For Respondent: Shri Heera Ram Choudhary, Sr. DR

Section 143(3)

…was made in the past, in the year in which investment was made. Following decisions were cited in support of this contention. 1. CIT Vs. HDFC Bank Ltd 366 ITR 505 (Bom) 2. HDFC Bank Ltd Vs. DCIT 284 CTR 414 (Bom) 3. CIT Vs. Reliance Utilities and Power Ltd. (313 ITR 340) 4. ITA No. 4695/Mum/2005, A.Y 1999-20. 7.3 Alternatively it was submitted by the Ld. AR that in respect of assessment years prior to A.Y 2008-09, Rule 8D was not applicable. The AO was required to apply reasonable method in quantifying expenditure attributable to earning exempt income. In support of this contention, the Ld. AR placed reliance o…

Kiri Industries Limited, Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, appeal of the assessee is partly allowed

ITA 1513/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad19 Dec 2024AY 2018-19

Bench: Dr.Brr Kumarshri Tr Senthil Kumar

For Appellant: Shri Tushar Hemani, Sr. Advocate with Shri Parimalsinh B Parmar, ARFor Respondent: Shri Rignesh Das, Sr. DR

Section 14ASection 234ASection 270ASection 36(1)(iii)Section 36(1)(va)Section 40

…hat the interest on borrowings in connection with the expansion of the existing business of the company can be claimed as deduction under section 36(1)(iii) of the Act. We place our reliance on the following decisions: - CIT vs Reliance Utilities & Power Ltd. 313 ITR 340 - GNFC vs DCIT 73 TTJ 787 - Vardhman Polytex Ltd. vs. CIT (2012) 25 taxamnn.com 281(SC) - HDFC Bank Ltd. [2014 (8) TMI 119-Bombay HC - UTI Bank Ltd. [2013 (8) TMI 238 - Gujarat HC - Heaven Associates C/o. Akshat Heaven vs ITO -2019 (6) TMI 539 ITAT Ahmedabad. - DCIT VS Vodafone Shared Services Ltd. 2019 (7) TMI 427-ITAT Ahmedabad 12. From the de…

ACIT 1(1), Mumbai vs. Bennett Coleman & Co. Ltd, Mumbai

In the result, the appeal filed by the assessee stands partly allowed for statistical purposes and the appeal filed by the revenue stands dismissed

ITA 6538/MUM/2012[2009-10]Status: DisposedITAT Mumbai17 Dec 2024AY 2009-10

Bench: Smt. Beena Pillai & Smt Renu Jauhriassessment Year: 2009-10

For Appellant: RespondentFor Respondent: Shri Kailash C. Kanojiya, CIT DR

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

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SMT RENU JAUHRI, ACCOUNTANT MEMBER Assessment Year: 2009-10 M/s. Bennett, Coleman Addl. Commissioner of & Co. Ltd. Income Tax Range- The Times of India 1(1) Building, Office of the Addl. CIT Dr. D. N. Road, Vs. Range- 1(1), Fort, Mumbai- 400001. Room No. 538, PAN: AAACB4373Q Aayakar Bhavan, M. K. Marg, Mumbai- 400020. Appellant : Respondent Assessment Year: 2009-10 Addl. Commissioner of M/s. Bennett, Coleman Income Tax Range- 1(1) & Co. Ltd. Office of the Addl. CIT The Times of India Range- 1(1), Building, Vs. Ro…

Sbpl Infrastructure Limited, Hyderabad vs. DCIT., Circle-3(1), Hyderabad

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

ITA 685/HYD/2024[2014-15]Status: DisposedITAT Hyderabad16 Dec 2024AY 2014-15

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita No.685/Hyd/2024 (निर्धारण वर्ा/Assessment Year: 2014-15) Sbpl Infrastructure Vs. Deputy Commissioner Limited Of Income Tax Hyderabad Circle-3(1) [Pan : Aaccs9014M] Hyderabad (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri Sashank Dundu, Ar रधजस् व द्वधरध/Revenue By: Shri M.Vijay Kumar,Cit-Dr सुिवधई की तधरीख/Date Of Hearing: 04/12/2024 घोर्णध की तधरीख/Date Of 16/12/2024 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: This Appeal Filed By The Assessee Is Directed Against The Order Passed By The Learned Commissioner Of Income Tax (Appeals) [Learned Cit(A)], National Faceless Appeal Centre (Nfac), Delhi Dated 13.02.2024 & Pertains To A.Y.2014-15. 2. This Appeal Filed By The Assessee Is Time Barred By 94 Days. The Assessee Filed A Petition For Condonation Of Delay & Submitted That Shri Manoj Sharma, Chief Financial Officer Of The Appellant Company, Who Was Entrusted With The Job Of Looking

For Appellant: Shri Sashank Dundu, ARFor Respondent: Shri M.Vijay Kumar,CIT-DR

Section 14A

…funds, then, the presumption goes in favour of the assessee, that investments made in shares and securities is out of own funds and this legal principle is supported by the decision of Hon'ble Bombay High Court in the case of Reliance Utilities and Power Ltd. 313 ITR 340. But, the fact remains that the assessee was not able to file relevant evidences including cash flow statement to prove the availability of own funds to explain the sources for investment in shares and securities. Therefore, we are of the considered view, to verify the facts with regard to the claim of the assessee and the source for investment i…

Dacss Granites Pvt Ltd., Bengaluru vs. Income Tax Officer, Ward-2(1)(3), Bengaluru

In the result, appeal of the assessee is allowed

ITA 1876/BANG/2024[2017-18]Status: DisposedITAT Bangalore11 Dec 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri Prakash Chand Yadavassessment Year: 2017-18

For Appellant: Sri Balram R. Rao, A.RFor Respondent: Sri Subramanian S., D.R

Section 143(3)Section 14ASection 2(24)(X)Section 270ASection 36(1)(iii)Section 40

…see was having reserves of Rs.17.89 Crores on the date, when the assessee had advanced the sum to its sister concern for the purpose of business. Ld. Counsel for the assessee relied upon the judgement in the case of Reliance Utilities & Power Ltd. reported in 313 ITR 340 for the proposition that when surplus funds are there with the assessee, then no disallowance can be made on proportionate basis u/s 36(1)(iii) of the Act. So far as the disallowance made by the ld. AO u/s 40(a)(i) of the Act is concerned, ld. Counsel for the assessee contended that the assessee has initially deducted TDS @ 30%. However, realizin…

Arkis Enterprises Pvt Ltd, Mumbai vs. Income Tax Officer Ward 5(2)(3), Mumbai

In the result appeal filed by the assessee stands partly allowed

ITA 5113/MUM/2024[2012-13]Status: DisposedITAT Mumbai11 Dec 2024AY 2012-13

Bench: SMT BEENA PILLAI (Judicial Member)

For Appellant: RespondentFor Respondent: Ms. Pradnya Gholap (Sr. DR)

Section 115JSection 14Section 142Section 143Section 14ASection 250Section 250(6)Section 41(1)

…From the above, it is clear that assessee do not have sufficient funds for making investments during the year under consideration. The principal thus stated by Hon’ble jurisdictional High Court in case of CIT vs Reliance Utilities and Power Ltd., reported in 313 ITR 340 will not come to any assistance. Thus proportionate disallowance is to be made in respect of interest expenditure, in the hands of assessee. However, the Ld.AO is directed to first reduce the interest income earned by the assessee that is offer to tax before computing proportionate disallowance which will be in the ratio exempt income earned to t…

DCIT(CC)-8(3), Mumbai vs. 63 Moons Technologies Limited, Mumbai

Accordingly, claim of deduction was not allowed

ITA 3178/MUM/2024[2007-08]Status: DisposedITAT Mumbai11 Dec 2024AY 2007-08

Bench: Shri Saktijit Dey, Hon’Ble & Shri Amarjit Singh, Hon’Bleita No. 3175/Mum/2024 (A.Y. 2008-09) Dcit (Cc)-8(3), Mumbai 63 Moons Technologies Limited Cts No. 256-257, F.T. Tower, Vs Suren Road, Chakala, Andheri, Mumbai-400093. Pan: Aaacf 5737 C (Appellant) (Respondent)

For Appellant: Shri Sukhsagar SyalFor Respondent: Smt. Sanyogita Nagpal, CIT/DR

Section 132Section 14ASection 153ASection 40

…ereas the total noninterest bearing own funds were of Rs 19866.03 lacs. Thus, sufficient own funds were available to make such investments. In the facts of the case, the decision of Hon'ble Bombay High Court in case of CIT v/s Reliance Utility and Power Ltd. (313 ITR 340) and decision of Hon'ble Bombay High Court in case of HDFC Bank Ltd. (366 ITR 505) are applicable. In view of the above the addition made by the A.O of Rs. 88,51,124/- is deleted. Accordingly, the grounds are allowed.” 8. During the course of appellate proceedings before us, the ld. Counsel also submitted that assessing officer has not recorded…

DCIT (CC)-8(3), Mumbai vs. 63 Moons Technologies Ltd Q, Mumbai

Accordingly, claim of deduction was not allowed

ITA 3175/MUM/2024[2008-09]Status: DisposedITAT Mumbai11 Dec 2024AY 2008-09

For Appellant: Shri Sukhsagar SyalFor Respondent: Smt. Sanyogita Nagpal, CIT/DR

Section 132Section 14ASection 153ASection 40

Harsh Nareshbhai Patel, Ahmedabad vs. The Income Tax Officer, Ward-3(3)(2), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 332/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad04 Dec 2024AY 2017-18

Bench: Dr. Brr Kumar & Ms Suchitra Kambleआयकर अपील सं./Ita No. 332/Ahd/2024 िनधा"रण वष"/Asstt. Year: 2017-2018 Harsh Nareshbhai Patel, The Income Tax Officer, C/O. Ms Chhajed & Co. Ca, बनामVs Ward 3(3)(2), . “Kamal Shanti”, Ahmedabad. Near Sardar Patel Statue, Ahmedabad-380014. Pan: Bocpp1618C

For Appellant: Ms Preyashi Tated, ARFor Respondent: Shri C Dharani Nath, Sr. DR

Section 143(2)Section 57

…आयकर अपीलीय अिधकरण, अहमदाबाद "यायपीठ , अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ SMC ” BENCH, AHMEDABAD ] BEFORE DR. BRR KUMAR, VICE PRESIDENT And MS SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं./ITA No. 332/AHD/2024 िनधा"रण वष"/Asstt. Year: 2017-2018 Harsh Nareshbhai Patel, The Income Tax Officer, C/O. MS Chhajed & Co. CA, बनामVs Ward 3(3)(2), . “Kamal Shanti”, Ahmedabad. Near Sardar Patel Statue, Ahmedabad-380014. PAN: BOCPP1618C (अपीलाथ" /Appellant ( ""यथ" /Respondent) Assessee by : Ms Preyashi Tated, AR Revenue by : Shri C Dharani Nath, Sr. DR सुनवाई क" तारीख/Date of Hearing : 19/11/2024 घोषणा क"…

Income Tax Officer, Ward-9(1), Kolkata vs. Kali Fabrics Private Limited, Kolkata

In the result, appeal of the revenue is dismissed

ITA 291/KOL/2024[2018]Status: DisposedITAT Kolkata27 Nov 2024

Bench: Shri Rajesh Kumar, Am & Shri Sonjoy Sarma, Jm]

Section 143(2)Section 143(3)Section 36Section 36(1)(iii)

…essee and consequently no disallowance could be made with respect to interest paid which are relatable to interest free loans. The case of the assessee is squarely covered by the decision of Hon’ble Bombay High Court in CIT Vs. Reliance Utilities & Power Ltd. 313 ITR 340 and CIT Vs. HDFC Bank Ltd. 366 ITR 505. Considering these facts, we find no infirmity in the order of the Ld. CIT(A) and accordingly, the same is affirmed by dismissing the appeal of the revenue. 5. In the result, appeal of the revenue is dismissed. Order is pronounced in the open court on 27th November, 2024 (Sonjoy Sarma) Accountant Member Da…

The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad vs. Suzlon Energy Ltd., Ahmedabad

In the result the Ground Nos

ITA 303/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2017-18

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

…the law on the issue after noticing the availability of own funds as per Balance Sheet of the Assessee and after digesting all decisions on the subject. The Hon'ble Court noticed the decision of the Hon'ble Bombay High Court in Reliance Utilities & Power Ltd 313 ITR 340 (Bom) (confirmed by the Hon'ble Supreme Court in SLP No. 37/2019 order dated 2.1.2019) wherein it was held that where the interest free funds far exceed the value of investments, it should be considered that investments have been made out of interest free funds and no disallowance u/s. 14A towards any interest expenditure can be made. The Hon'ble…

The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad vs. Suzlon Energy Ltd., Ahmedabad

In the result the Ground Nos

ITA 302/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2016-17

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

Suzlon Energy Ltd., Ahmedabad vs. The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad

In the result the Ground Nos

ITA 199/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2017-18

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

Suzlon Energy Ltd., Ahmedabad vs. The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad

In the result the Ground Nos

ITA 198/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2016-17

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

M/S. Presario Properties Private Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle 3(2)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 4011/MUM/2024[2013-14]Status: DisposedITAT Mumbai07 Nov 2024AY 2013-14

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGARWAL (Accountant Member)

Section 271(1)(c)

…been disallowed, it does not lead to an inference that assessee has furnished any inaccurate particulars of income. Thus, following the principle laid down by the Hon'ble Jurisdictional High Court in the case of Reliance Utilities and Power Ltd., reported in 313 ITR 340, no penalty can be levied by the ld. AO merely assessee has made a claim of depreciation on fixed asset, which has been disallowed merely on the ground that there was no business income in this year. Accordingly penalty is deleted. Since, we have deleted the penalty on merits, we are not going into the issue of quashing the penalty notice on the…

Ananthapuri Hospitals Pvt Ltd, Thiruvananthapuiram vs. ACIT, Circle-1, Thiruvananthapuram

ITA 867/COCH/2023[2012-13]Status: DisposedITAT Cochin06 Nov 2024AY 2012-13

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Sri.Anil D.Nair, AdvocateFor Respondent: Smt.V.Swarnalatha, Sr.DR

Section 143(3)Section 36(1)(iii)Section 8

…sec.36(1)(ii) interest disallowance comes into play when it is found that an assessee has diverted his business funds carrying interest liability for non-business purposes. We further deem it appropriate to quote CIT v. Reliance Utility and Power Ltd., [2009] 313 ITR 340 (Bom.) that even in such instances, a presumption arises that in case when interest free funds are available, the same only have been diverted for non-business purposes. When we invited the Revenue’s attention to the relevant facts herein, learned DR vehement argues that the assessee had in fact transferred the corresponding fixed asset in favour…

Suresh Karsan Satra, Mumbai vs. Income Tax Officer, Ward 41(3)(4), Mumbai

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

ITA 100/MUM/2024[2016-17]Status: DisposedITAT Mumbai06 Nov 2024AY 2016-17

Bench: Shri B.R. Baskaran & Shri Raj Kumar Chauhanassessment Year : 2016-17 Suresh Karsan Satra, Income Tax Officer, 604, Shashi Apartment, Ward-41(3)(4), Off Aarey Road, Vs. Kautilya Bhavan, Goregaon East, Bandra Kurla Complex, Mumbai Bandra (E), Pan : Aagps5694A Mumbai (Appellant) (Respondent)

For Appellant: Shri Rakesh JoshiFor Respondent: Ms. Smitha V. Nair, Addl.CIT

…iew of the binding decision rendered by the Hon’ble Bombay High Court in the case of Shapoorji Pallonji & Co Ltd (supra), wherein it was held as under:- 3 “7. We have peruse the decision of this Court in Reliance Utilities and Power Ltd (2009)(178 Taxman 135/313 ITR 340) wherein it has been held that if there are funds available with the assessee, both interest free and overdraft and/or loans taken then a presumption would arise that investments would be out of the interest free funds generated or available with the assessee if the interest free funds were sufficient to meet the investments….. 8. We also note th…