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.

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 340)

Sarwankumar Devidutt Saraf, Mumbai vs. ACIT 14(3)

Appeal is dismissed

ITA 5248/MUM/2014[2011-12]Status: DisposedITAT Mumbai28 Oct 2016AY 2011-12

Bench: Shri G.S.Pannu, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.5248/M/14 (िनधा"रण वष" / Assessment Year: 2011-12) बनाम/ Shri Sarwankumar Devidutt Asst. Commissioner Of Saraf Income Tax – 14(3) Vs. Prop. Of M/S. Saraf Sales Mumbai Corporation, 50, Chhotalal Bhavan, 418, Kalbadevi Road, Mumbai - 400002 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aalps7121H (अपीलाथ" /Appellant) (""थ" / Respondent) .. Assessee By: Shri Krish Desai & Ms. Maina Sancheti Department By: Shri Deepak Ripote सुनवाई की तारीख / Date Of Hearing: 20.07.2016 घोषणा की तारीख /Date Of Pronouncement: 28.10.2016 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 05.06.2014 Passed By The Commissioner Of Income Tax (Appeals) 25

For Appellant: Shri Krish Desai and Ms. Maina SanchetiFor Respondent: Shri Deepak Ripote

Section 142(1)Section 143(1)Section 143(2)Section 14ASection 24

…ITAT Mumbai hence disallowance u/s 14A to the tune of Rs 26,26,247 is ordered to be set aside. The assessee has also placed reliance upon the law settled in the judgment of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities and Power Limited, 313 ITR 340 (Bom) and on the other hand the learned representative of the department has refuted the said contentions. 4. In view of the argument advanced by the learned representative of the parties and perusing the record, it came into the notice that the assessee was having his own funds to the tune of Rs.100,229,715/- whereas he purchased the shares to t…

M/S. Hooghly Mills Projects Ltd., Kolkata vs. DCIT, Central Circle - VII, Kolkata

In the result, assessee’s appeal stands allowed partly for statistical purpose

ITA 549/KOL/2011[2006-07]Status: DisposedITAT Kolkata26 Oct 2016AY 2006-07

Bench: Shri Waseem Ahmed & Shri K.Narsimha Charyassessment Years:2006-07

Section 115JSection 143(3)Section 2(22)(e)Section 263Section 43B

…honed out—Therefore, assessee is entitled to deduction under s. 36(1)(iii) in respect of interest on borrowed funds” Similarly the Hon’ble High Court of Bombay has decided the issue in favour of assessee in the case of CIT Vs. Reliance Utilities & Power Ltd. 313 ITR 340. The relevant extract of the judgment is reproduced below. ITA No.549/Kol/2011 A.Y.2006-07 M/s Hooghly Mills Projects Ltd. vs. DCIT, CC-VII, Kol. Page 13 “Business expenditure—Interest on borrowed capital—Investment of interest- bearing funds in sister concerns—Contention of the Revenue that the shareholders fund to the tune of over Rs. 172 cror…

S. Mansukhlal & Co., Mumbai vs. DCIT 14(2), Mumbai

In the result, the appeal filed by the assessee in ITA No

ITA 4793/MUM/2014[2010-11]Status: DisposedITAT Mumbai24 Oct 2016AY 2010-11

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 4793/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) M/S. S. Mansukhlal & Co., The Deputy Commissioner बनाम/ Srbc & Associates Llp, Of Income Tax –14(2), V. Chartered Accountants, Earnest House, Iii Floor, 12 Th Floor, The Ruby, Nariman Point, 29, Senapati Bapat Marg, Mumbai – 400 021. Dadar (West), Mumbai – 400 028. "थायी लेखा सं./Pan : Aahfs9459A .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Shri Sanjeev Kashyap (D.R.)

Section 143(3)Section 14A

…as are reflected in audited financial statements which are placed in paper book. The ld. Counsel relied on the decision of Hon’ble Bombay High Court in the case of CIT v. HDFC Bank Ltd., (2014)366 ITR 505 (Bom) , CIT v. Reliance Utilities & Power ltd., (2009) 313 ITR 340 (Bom) and decision of Hon’ble Bombay High Court in writ petition in HDFC Bank Limited v. DCIT (2016) 67 taxmann.com 42(Bom. HC). The ld. Counsel also relied on the decision of the Tribunal in the case of M/s Silvassa Estates Pvt. Ltd. v. ITO in ITA No. 7383/Mum/2012 vide orders dated 14th June, 2016 and decision of the Tribunal in the case of Tic…

ITO 3(3)(1), Mumbai vs. Remi Fianance & Investment P.Ltd, Mumbai

In the result the appeal is hereby allowed

ITA 7461/MUM/2014[2011-12]Status: DisposedITAT Mumbai21 Oct 2016AY 2011-12

Bench: Shri Sanjay Garg & Shri Ashwani Tanejaassessment Year: 2011-12 I.T.O. 3(3)-1, M/S. Remi Finance & Room No.602, Investment Pvt. Ltd., 6Th Floor, Plot No.11, Vs. Aayakar Bhavan, Cama Industrial Estate, M.K. Road, Goregaon (East),, Mumbai - 400020 Mumbai – 400 063 Pan: Aaacr 0400Q (Appellant) (Respondent) Present For: Assessee By : None Revenue By : Shri B.S. Bist, D.R. Date Of Hearing : 17.10.2016 Date Of Pronouncement : 21.10.2016 O R D E R

For Appellant: NoneFor Respondent: Shri B.S. Bist, D.R

Section 14A

…8,44,260/- were received. In the case of CIT v. HDFC Ltd.(ITA No. 330 of 2012) Order dated 23/07/2014, the Hon'ble Bombay High Court held that in view of the factual position as per the judgement in the case of CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom), 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. The issue before the Hon'ble High Court was disallowance u/s. 14A. The fact before the Hon'ble High Court was that the assessee's capital, profit, reserves, surplus and current account deposits were hig…

Bloom Packaging P Ltd, Mumbai vs. Asst CIT Cen Cir 39, Mumbai

In the result, appeal of the assessee is allowed

ITA 4663/MUM/2015[2010-11]Status: DisposedITAT Mumbai19 Oct 2016AY 2010-11

Bench: Shri D. Karunakara Rao & Shri Amit Shukla

For Appellant: Shri Precy PardiwalaFor Respondent: Smt. Vinita Menon, DR

Section 115Section 115JSection 14A

…ara 5.43.2 of the CIT (A)‟s order, we find, the CIT (A) has not honoured the legal proposition relating to the transaction relating to presumption said by the jurisdictional High Court vide its judgment in the case of CIT vs. Reliance Utilities and Power Ltd (313 ITR 340) (Bom.). Considering the same, we are of the opinion that the same requires reconsideration. In case, if interest free funds are found available, the presumption of use of interest free funds for investment in the dividend yielding shares is required to be honoured. We order AO accordingly. As such, no case is made out by the Ld Counsel for the a…

Redington (India) Ltd., Chennai vs. DCIT, Chennai

In the result, the appeal of the Revenue is dismissed

ITA 1155/CHNY/2016[2011-12]Status: DisposedITAT Chennai18 Oct 2016AY 2011-12

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Sh. R. Vijayaraghavan, AdvocateFor Respondent: Sh. Jayaram Raipura, CIT

Section 143(2)Section 143(3)Section 14A

…ce sheet and these investments are made out of such accumulated profits and also submitted that interest-free funds were available and relied on the judgments of Bombay High Court in CIT v. HDFC Bank Ltd. (366 ITR 505) and CIT v. Reliance Utilities & Power (313 ITR 340). With these submissions, the Ld. AR prayed that the disallowance made under Section 14A of the Act read with Rule 8D of the Income-tax Rules, 1962 be deleted. 9. Contra, the Ld. Departmental Representative relied on the orders of the lower authorities. 10. We heard the rival submissions, perused the material available on record and judicial…

DCIT, Chennai vs. Redington (India) Ltd., Chennai

In the result, the appeal of the Revenue is dismissed

ITA 1145/CHNY/2016[2011-12]Status: DisposedITAT Chennai18 Oct 2016AY 2011-12

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Sh. R. Vijayaraghavan, AdvocateFor Respondent: Sh. Jayaram Raipura, CIT

Section 143(2)Section 143(3)Section 14A

…ce sheet and these investments are made out of such accumulated profits and also submitted that interest-free funds were available and relied on the judgments of Bombay High Court in CIT v. HDFC Bank Ltd. (366 ITR 505) and CIT v. Reliance Utilities & Power (313 ITR 340). With these submissions, the Ld. AR prayed that the disallowance made under Section 14A of the Act read with Rule 8D of the Income-tax Rules, 1962 be deleted. 9. Contra, the Ld. Departmental Representative relied on the orders of the lower authorities. 10. We heard the rival submissions, perused the material available on record and judicial…

M/S. Alkesh Tacker (HUF), New Delhi vs. ACIT, New Delhi

In the result, the Appeal filed by the Assessee stands partly allowed

ITA 6040/DEL/2015[2009']Status: DisposedITAT Delhi18 Oct 2016

Bench: Shri H.S. Sidhu

For Appellant: Sh. Rajesh Malhotra, FCAFor Respondent: Sh. Umesh Chander Dubey, Sr. DR

Section 143(1)Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC-2”, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER I.T.A. No. 6040/DEL/2015 A.Y. 2009-10 M/S ALKESH TACKER (HUF) ACIT, CIRCLE 52(1), 6, TILAK MARG, B-26, VS. NEW DELHI SAGAR APARTMENTS, NEW DELHI – 110 001 (PAN: AAGHA8675K) (APPELLANT) (RESPONDENT) Assessee by : Sh. Rajesh Malhotra, FCA Department by : Sh. Umesh Chander Dubey, Sr. DR ORDER PER H.S. SIDHU, JM Assessee has filed the Appeal against the Order dated 16.9.2015 passed by the Ld. Commissioner of Income Tax (Appeals)—18, New Delhi pertaining to assessment year 2009-10 2. The grounds raised…

Radicura Pharmaceuticals Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal is partly allowed

ITA 5980/DEL/2014[2011-12]Status: DisposedITAT Delhi14 Oct 2016AY 2011-12

Bench: Shri R.S. Syalassessment Year : 2011-12

For Appellant: Shri Sanjay Jain, CAFor Respondent: Shri N.K. Bansal, Sr. DR

Section 14A

…und to the tune of Rs.5,76,20,504/- as at the end of the year. This shows that the amount invested in shares and securities is far less than the amount of shareholders’ funds. The Hon’ble Bombay High Court in CIT vs. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) has held that if there are interest free funds available with the assessee sufficient to meet investments and, at the same time, some interest bearing loan is taken, it should be presumed that the investments were made from interest free funds and, consequently, no disallowance of interest should be made. This decision was rendered by th…

Asst CIT Cen Cir 46, Mumbai vs. Jsw Energy Ltd, Mumbai

In the result, both the appeals of the Revenue and the assessee are allowed in part in terms indicated hereinabove

ITA 981/MUM/2014[2007-08]Status: DisposedITAT Mumbai07 Oct 2016AY 2007-08

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. No. 462/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Jsw Energy Limited Acit, Central Circle-46, बिाम/ Jsw Centre, Bandra Kurla Complex, Aayakar Bhavan, M. K. Road, Vs. Bandra (E), Mumabi-400 051 Mumbai स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Assessee) : (Revenue) आमकय अऩीर सं./I.T.A. No. 981/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Acit, Central Circle-46, Jsw Energy Limited बिाम/ Aayakar Bhavan, M. K. Road, Jsw Centre, Bandra Kurla Mumbai Complex, Vs. Bandra (E), Mumabi-400 051 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Revenue) : (Assessee) Assessee By : Shri Rakesh Joshi Revenue By : Shri K. Ravi Kiran सुनवाई की तायीख / : 12.7.2016 Date Of Hearing घोषणा की तायीख / : 07.10.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.: These Are The Cross Appeals Filed By The Assessee & The Revenue Against The Order By The Ld. Cit(A) For The Assessment Year (A.Y.) 2007-08. 2

For Appellant: Shri Rakesh JoshiFor Respondent: Shri K. Ravi Kiran

Section 115JSection 14ASection 80Section 80HSection 80I

…e disallowance of interest. We further direct the A.O. to verify the interest free funds available with the assessee for making investment. As per the verdict of Hon'ble jurisdictional High Court in the case of CIT vs. Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom), CIT vs. HDFC Bank 366 ITR 505 (Bom) and decision of Mumbai Tribunal in the case of ACIT Vs Prakash I Shah (ITA No. 6349/Mum/2011), no disallowance of interest is warranted when assessee is having sufficient own funds for making investment. The A.O. is directed to verify the availability of interest free funds with the assessee for investme…

Jsw Energy Ltd, Mumbai vs. Asst CIT Cir 11(5), Bangalore

In the result, both the appeals of the Revenue and the assessee are allowed in part in terms indicated hereinabove

ITA 462/MUM/2014[2007-08]Status: DisposedITAT Mumbai07 Oct 2016AY 2007-08

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. No. 462/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Jsw Energy Limited Acit, Central Circle-46, बिाम/ Jsw Centre, Bandra Kurla Complex, Aayakar Bhavan, M. K. Road, Vs. Bandra (E), Mumabi-400 051 Mumbai स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Assessee) : (Revenue) आमकय अऩीर सं./I.T.A. No. 981/Mum/2014 (नििाारण वषा / Assessment Year: 2007-08) Acit, Central Circle-46, Jsw Energy Limited बिाम/ Aayakar Bhavan, M. K. Road, Jsw Centre, Bandra Kurla Mumbai Complex, Vs. Bandra (E), Mumabi-400 051 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aaacj 8109 N (Revenue) : (Assessee) Assessee By : Shri Rakesh Joshi Revenue By : Shri K. Ravi Kiran सुनवाई की तायीख / : 12.7.2016 Date Of Hearing घोषणा की तायीख / : 07.10.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.: These Are The Cross Appeals Filed By The Assessee & The Revenue Against The Order By The Ld. Cit(A) For The Assessment Year (A.Y.) 2007-08. 2

For Appellant: Shri Rakesh JoshiFor Respondent: Shri K. Ravi Kiran

Section 115JSection 14ASection 80Section 80HSection 80I

…e disallowance of interest. We further direct the A.O. to verify the interest free funds available with the assessee for making investment. As per the verdict of Hon'ble jurisdictional High Court in the case of CIT vs. Reliance Utilities and Power Ltd. [2009] 313 ITR 340 (Bom), CIT vs. HDFC Bank 366 ITR 505 (Bom) and decision of Mumbai Tribunal in the case of ACIT Vs Prakash I Shah (ITA No. 6349/Mum/2011), no disallowance of interest is warranted when assessee is having sufficient own funds for making investment. The A.O. is directed to verify the availability of interest free funds with the assessee for investme…