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 367,181 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.

ITO, Ward - 1(3), Kolkata vs. M/S. Atn International Limited, Kolkata

In the result, the appeal of the revenue in ITA No

ITA 1531/KOL/2011[2004-05]Status: DisposedITAT Kolkata05 Oct 2016AY 2004-05

Bench: Shri M. Balaganesh, Am & Shri S.S.Viswanethra Ravi, Jm]

For Appellant: Shri Rajat Kr. Kureel, JCIT, Sr. DRFor Respondent: Shri Miraj D. Shah, AR
Section 143(3)Section 147Section 73

…annia Industries Ltd reported in (2006) 280 ITR 525 (Cal) is very well founded and is directly on the point. We also find that similar view has also been taken by the Hon’ble Bombay High Court in the case of CIT vs Reliance Utilities and Power Ltd reported in 313 ITR 340 (Bom). Respectfully following the aforesaid judicial precedents , we hold that there is no justifiable reason to interfere with the order of the ld CITA in this regard. Accordingly, ground no. 3 raised by the revenue is dismissed. 6. In the result, the appeal of the revenue in ITA No. 1531/Kol/2011 is partly allowed for statistical purposes. IT…

P.K. Shah Shares & Securities P.Ltd, Mumbai vs. ACIT 4(2) Or CIT City 4, Mumbai

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

ITA 944/MUM/2015[2011-12]Status: DisposedITAT Mumbai30 Sept 2016AY 2011-12

Bench: Shri G.S. Pannu & Shri Amarjit Singh: (A.Y : 2011-12)

For Appellant: Shri N.R. AgrawalFor Respondent: Shri A.K. Kardam
Section 143(3)Section 14A

…the amount of share capital and Reserves & Surplus available with assessee is more than the investments, which have yielded the exempt income and, therefore, following the ratio of judgment of Hon’ble Bombay High Court in the case of CIT vs. Reliance Utility, 313 ITR 340 it can be presumed that such investments are out of such non-interest bearing funds. The said proposition, in the context of application of Sec. 14A of the Act, has been approved by the Hon’ble Bombay High Court in the case of HDFC 4 M/s. Prakash K. Shah Shares & Securities Pvt. Ltd. Bank Ltd. (supra). Factually speaking, the said proposition i…

K Uttamlal (Exports) P Ltd, Mumbai vs. DCIT Cir 6(2), Mumbai

In the result, the appeal of assessee is partly allowed

ITA 1792/MUM/2015[2011-12]Status: DisposedITAT Mumbai30 Sept 2016AY 2011-12

Bench: Shri G.S. Pannu & Shri Amarjit Singh

For Appellant: Shri Sunil HiravatFor Respondent: Shri Deepak Ripote
Section 143(3)Section 14A

…ear, and further that the amount of share capital and Reserves & Surplus are more than adequate to cover the value of such investments and, therefore, following the ratio of judgment of Hon'ble Bombay High Court in the case of Reliance Utilities & Power Ltd., 313 ITR 340, the presumption is that such investments are out of interest-free funds. Reliance has also been placed on the judgment of the Hon'ble Bombay High Court in the case of HDFC Bank Ltd., 366 ITR 505 for the proposition that in the aforesaid situation disallowance u/s 14A of the Act is not merited. At the time of hearing, the learned representative a…

K Uttamlal (Exports) P Ltd, Mumbai vs. DCIT Cir 6(2), Mumbai

In the result, the appeal of assessee is partly allowed

ITA 1791/MUM/2015[2010-11]Status: DisposedITAT Mumbai30 Sept 2016AY 2010-11

Bench: Shri G.S. Pannu & Shri Amarjit Singh

For Appellant: Shri Sunil HiravatFor Respondent: Shri Deepak Ripote
Section 143(3)Section 14A

…ear, and further that the amount of share capital and Reserves & Surplus are more than adequate to cover the value of such investments and, therefore, following the ratio of judgment of Hon'ble Bombay High Court in the case of Reliance Utilities & Power Ltd., 313 ITR 340, the presumption is that such investments are out of interest-free funds. Reliance has also been placed on the judgment of the Hon'ble Bombay High Court in the case of HDFC Bank Ltd., 366 ITR 505 for the proposition that in the aforesaid situation disallowance u/s 14A of the Act is not merited. At the time of hearing, the learned representative a…

Grindewell Norton Ltd, Mumbai vs. Addl CIT 1(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 523/MUM/2014[2009-10]Status: DisposedITAT Mumbai30 Sept 2016AY 2009-10

Bench: Shri G.S. Pannu & Shri Ravish Sood: (A.Y : 2009-10)

For Appellant: Shri M.M. Golvala &For Respondent: Shri N. Padmanabham
Section 143(3)Section 14ASection 28Section 32

…rves & Surplus available with the assessee is more than enough to cover the investments which have yielded exempt income and, therefore, in terms of the ratio laid down by the Hon'ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd., 313 ITR 340 (Bom) a presumption arises that the investments have been made out of such interest-free funds. It is pointed out that the proposition laid down by the Hon'ble Bombay High Court in the case of Reliance Utility (supra) has been also applied in the context of Sec. 14A of the Act by the Hon'ble Bombay High Court in the case of HDFC bank Limited v. D…

DCIT Cen Cir 3(3), Mumbai vs. Sharekhan Financial Services P.Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 5715/MUM/2015[2011-12]Status: DisposedITAT Mumbai26 Sept 2016AY 2011-12

Bench: Shri B.R. Baskaran (Am)& Ramlal Negi (Jm)

Section 14A

…excess of the investment made by it and hence no disallowance of interest 2 M/s. Sharekhan Financial Services P. Ltd. expenditure is called for, in view of the decision of Hon'ble Bombay High Court rendered in the case of Reliance Utilities and Power Ltd. (313 ITR 340). The assessee also submitted that Hon'ble Bombay High Court has taken an identical view in the case of HDFC Bank Ltd. and the Tribunal has also decided an identical issue in favour of the assessee in the assessee’s own case for A.Y. 2007-08. Convinced with the contentions of the assessee, the learned CIT(A) deleted the interest disallowance and…

Manjula Naraynan, Chennai vs. ACIT, Chennai

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

ITA 1524/CHNY/2016[2009-10]Status: DisposedITAT Chennai23 Sept 2016AY 2009-10

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A.No.1524/Mds/2016 "नधा"रण वष"/Assessment Year:2009-10 Smt. Manjula Naraynan , The Assistant Commissioner Of New No. 12, Old No. 71, 3Rd Main Vs. Income Tax , Road, Kasturibai Nagar, Adyar, Corporate Circle 5(1), Chennai 600 020. Chennai 600 034. [Pan:Aakpn7776J] (अपीलाथ" /Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से / Appellant By : Shri B. Ramakrishnan, C.A. ""यथ" क" ओर से/Respondent By : Shri M. Palanichamy, Jcit सुनवाई क" तार"ख/ Date Of Hearing : 06.10.2017 घोषणा क" तार"ख /Date Of Pronouncement : 04.01.2018 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 3, Chennai Dated 21.03.2016 Relevant To The Assessment Year 2009-10. The Assessee Has Raised Two Grounds, Viz., Confirmation Of Disallowance Of Expenditure Under Section 14A Of The Income Tax Act, 1961 [“Act” In Short] R.W. Rule 8D Of It Rules & Confirmation Of Levy Of Interest Under Section 234B Of The Act.

For Appellant: Shri B. Ramakrishnan, C.AFor Respondent: Shri M. Palanichamy, JCIT
Section 10(34)Section 143(1)Section 143(2)Section 14ASection 234B

…the Assessing Officer determined expenditure components and disallowed ₹.6,11,423/- being expenditure for earning exempt income. While confirming the disallowance, the ld. CIT(A) has followed the decision in the case of CIT v. Reliance Utilities & Power Ltd. 313 ITR 340 (Bom.) and in the case of Godrej & Boyce Mfg. Co. Ltd. v. CIT 328 ITR 81(Bom.), wherein, in both the cases, the assessees’ have claimed interest expenditure on borrowed funds. However, in the present case, it is an admitted fact that the assessee has not admitted any expenditure towards earning of exempt income or claimed any deduction on interes…

Vinati Oprganics Ltd, Mumbai vs. Addl CIT 8(3), Mumbai

In the result, assessee’s appeal stands partly allowed for the statistical purpose and that of the revenue stands dismissed

ITA 7177/MUM/2014[2011-12]Status: DisposedITAT Mumbai22 Sept 2016AY 2011-12

Bench: Shri Rajendra & Shri Amit Shukla

Section 1Section 10BSection 143(3)Section 14ASection 1OSection 40

…which was a small amount of Rs. 316 lakhs (investment as on 31.03.2010 were Rs. Nil). In this respect, we also draw your kind attention towards the ratio of the Hon'ble Bombay High Court's decision in the case of CIT vs. Reliance Utilities & Powers Ltd (2009) 313 ITR 340/178 Taxman 135 wherein the Bombay High Court clearly held that if there were funds available, both interest free and interest bearing, then a presumption would arise that interest free funds have been generated for investments. In the case of assessee, shareholders fund as on 31.03.2010 were Rs. 9,918 lakhs 6 वन"त ओग"नी"स "ल"मटेड Vanati Oprganic…

DCIT, Circle - 8, Kolkata vs. M/S. Tata Steel Processing & Distribution Limited, Kolkata

In the result, both appeals of Revenue are dismissed and that of assessee’s appeal is partly allowed for statistical purpose and CO of assessee is dismissed as infructuous

ITA 379/KOL/2012[2008-09]Status: DisposedITAT Kolkata21 Sept 2016AY 2008-09

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Year:2006-07

Section 143(2)Section 143(3)Section 40

…stment made by the Assessee would be out of the interest-free funds available with the Assessee. The Tribunal was justified in dismissing the Appeal of the Revenue on ground. Commissioner of Income Tax v/s Reliance Utilities and Power Ltd., reported in (2009) 313 ITR 340 (Bom), applied. Where assessee's capital, profit reserves, surplus and current account deposits were higher than the investment in tax- free securities, it would have to be presumed that investment made by the Assessee would be out of the interest-free funds available with Assessee and no disallowance was warranted u/s 14A.” From the above, we f…

Tata Steel Processing and Distribution Ltd., Kolkata vs. DCIT, Circle - 8, Kolkata

In the result, both appeals of Revenue are dismissed and that of assessee’s appeal is partly allowed for statistical purpose and CO of assessee is dismissed as infructuous

ITA 303/KOL/2012[2008-09]Status: DisposedITAT Kolkata21 Sept 2016AY 2008-09

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Year:2006-07

Section 143(2)Section 143(3)Section 40

…stment made by the Assessee would be out of the interest-free funds available with the Assessee. The Tribunal was justified in dismissing the Appeal of the Revenue on ground. Commissioner of Income Tax v/s Reliance Utilities and Power Ltd., reported in (2009) 313 ITR 340 (Bom), applied. Where assessee's capital, profit reserves, surplus and current account deposits were higher than the investment in tax- free securities, it would have to be presumed that investment made by the Assessee would be out of the interest-free funds available with Assessee and no disallowance was warranted u/s 14A.” From the above, we f…

DCIT, Circle - 8, Kolkata vs. M/S. Tata Ryerson Limited, Kolkata

In the result, both appeals of Revenue are dismissed and that of assessee’s appeal is partly allowed for statistical purpose and CO of assessee is dismissed as infructuous

ITA 1124/KOL/2010[2006-07]Status: DisposedITAT Kolkata21 Sept 2016AY 2006-07

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Year:2006-07

Section 143(2)Section 143(3)Section 40

…stment made by the Assessee would be out of the interest-free funds available with the Assessee. The Tribunal was justified in dismissing the Appeal of the Revenue on ground. Commissioner of Income Tax v/s Reliance Utilities and Power Ltd., reported in (2009) 313 ITR 340 (Bom), applied. Where assessee's capital, profit reserves, surplus and current account deposits were higher than the investment in tax- free securities, it would have to be presumed that investment made by the Assessee would be out of the interest-free funds available with Assessee and no disallowance was warranted u/s 14A.” From the above, we f…

DCIT 10(1), Mumbai vs. Il & Fs Financial Services Ltd, Mumbai

The appeal of the revenue is dismissed

ITA 6498/MUM/2014[2010-11]Status: DisposedITAT Mumbai21 Sept 2016AY 2010-11

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am Dcit – 10(1), Mumbai M/S. Il & Fs Finanacial Vs. 453, Aayakar Bhavan Services Ltd., 4Th Floor, M.K. Marg The Il & Fs Financial Centre, Mumbai – 400 020. Plot No. C-22, G Block, Bandra Kurla Complex, Bandra East Mumbai – 51. Pan: Aaaci4805L Appellant .. Respondent

Section 143(3)Section 14A

…therefore, could be attributed towards the said investments and hence could not be considered to work out disallowance as per Rule 8D. In this regard , the assessee relied upon the decision of Bombay High Court in the case of Reliance Utilities and Power Ltd 313 ITR 340 (Bom), wherein the Bombay High Court held that in case of a company which has interest-free funds available, it will always be presumed that the company has invested its own fund and interest-free funds for the purpose of making investments. Accepting the contentions of the assessee and observing the fact that net worth of the company far exce…

Lakshmiwadi Mines & Minerals P. Ltd, Mumbai vs. CIT 21, Mumbai

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

ITA 3587/MUM/2014[2009-10]Status: DisposedITAT Mumbai21 Sept 2016AY 2009-10

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.3587/Mum/2014 ("नधा"रण वष" / Assessment Year : 2009-10) Lakshmiwadi Mines & Commissioner Of Income बनाम/ Minerals Private Ltd., Tax – 2, V. Yusuf Building, 3 Rd Floor, R. No. 344, Room No. 20, Aayakar Bhavan, 43-45, M.G. Road, Fort, Mumbai – 400 020. Mumbai – 400 001. "थायी लेखा सं./Pan : Aaacl 1756 F .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Shri A. Ramachandran
Section 143Section 143(3)Section 14ASection 263

…87/Mum/2014 7 assessee has diverted interest bearing funds for making investments in securities capable of yielding exempt income. Reliance was placed on the decision of Hon’ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd., (2009)313 ITR 340(Bom. HC) and HDFC bank Limited v. DCIT (2016) 383 ITR 529(Bom. HC) and submitted that in the absence of any cogent material brought on record by the Revenue that interest bearing funds were diverted in making the investment in securities capable of yielding exempt income, the presumption shall apply that the assessee has invested own funds in mak…

Forbes & Company Ltd, Mumbai vs. DCIT Cir 1(1), Mumbai

In the result, the assessee’s appeal for A

ITA 7349/MUM/2013[2002-03]Status: DisposedITAT Mumbai21 Sept 2016AY 2002-03

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainm/S. Forbes & Company Ltd. Dcit, Circle 1(1) (Formerly Forbes Gokak Ltd.) Aayakar Bhavan Ground Floor, Forbes Bldg. Vs. M.K. Road Charanjit Rai Marg Mumbai 400020 Fort, Mumbai 400001 Pan - Aaacf1765A Appellant Respondent

For Appellant: Shri Milin ThakoreFor Respondent: Shri Dipak Kumar Sinha
Section 271(1)(c)

…tion 14A of the Act. It is contended that in view of the aforesaid decision on the Coordinate 6 M/s. Forbes & Company Ltd. Bench of this Tribunal and, inter alia, the decision of the Hon'ble Bombay High Court in the case of Reliance Utilities and Power Ltd. (313 ITR 340) (Bom), the penalty levied under section 271(1)(c) on the disallowance under section 14A of the Act be deleted. 5.2 Per contra, the learned D.R. supported the orders of the authorities below on this issue. 5.3.1 We have heard the rival contentions of both the parties and perused and carefully considered the material on record; including the judic…

Kirloskar Electric Company Ltd., Bangalore vs. ACIT

In the result, the revenue’s appeal is partly allowed and the assessee's

ITA 169/BANG/2013[2009-10]Status: DisposedITAT Bangalore21 Sept 2016AY 2009-10

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

For Appellant: Shri Shyam Ramadhyani, C.AFor Respondent: Shri Sanjay Kumar, CIT-III (D.R)
Section 14A

…rest free fund generated or available with the assessee if such funds are sufficient to meet the investment. In support of his contention, he has relied upon the decision of the Hon'ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Power Ltd. 313 ITR 340 (Bom). Alternatively, the ld. AR has submitted that the disallowance if any has to be calculated only from the date of investment made and not for the whole year. He has referred to the details of the remittances of the amount to the subsidiary and submitted that only from the date of remittances up to 31.3.2009 the disallowance of interest has…

Ansh Merchandise P.Ltd, Mumbai vs. DCIT 5(2), Mumbai

ITA 411/MUM/2013[2008-09]Status: DisposedITAT Mumbai19 Sept 2016AY 2008-09

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.411/Mum/2013 ("नधा"रण वष" / Assessment Year : 2008-08) Ansh Merchandise Private Dcit – 5(2), बनाम/ Limited, 11, 2Nd Floor, Aayakar Bhavan, V. 84, Appollo House, Mumbai – 400 020. Bombay Samachar Marg, Fort, Mumbai-400 023 "थायी लेखा सं./Pan : Aabcn8176E (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri A. Ramachandran
Section 143(3)

…t disallowance of expenditure u/s 14A of the Act read with Rule 8D of Income Tax Rules, 1962 in accordance with our above directions and also keeping in view decisions of Hon’ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340(Bom HC) and in the case of HDFC Bank Ltd. v. DCIT (2014) 366 ITR 505(Bom HC) and decision of Hon'ble Bombay High Court in writ petition in HDFC Bank Limited v. DCIT(2016) 67 taxmann.com 42(Bom. HC) . We order accordingly. 17. Next Issue in this appeal is with respect to treatment by Revenue of short term capital loss incurred by the assessee on…

Ansh Merchandise P.Ltd, Mumbai vs. Addl CIT 5(2), Mumbai

ITA 398/MUM/2013[2009-10]Status: DisposedITAT Mumbai19 Sept 2016AY 2009-10

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.411/Mum/2013 ("नधा"रण वष" / Assessment Year : 2008-08) Ansh Merchandise Private Dcit – 5(2), बनाम/ Limited, 11, 2Nd Floor, Aayakar Bhavan, V. 84, Appollo House, Mumbai – 400 020. Bombay Samachar Marg, Fort, Mumbai-400 023 "थायी लेखा सं./Pan : Aabcn8176E (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri A. Ramachandran
Section 143(3)

…t disallowance of expenditure u/s 14A of the Act read with Rule 8D of Income Tax Rules, 1962 in accordance with our above directions and also keeping in view decisions of Hon’ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd. (2009) 313 ITR 340(Bom HC) and in the case of HDFC Bank Ltd. v. DCIT (2014) 366 ITR 505(Bom HC) and decision of Hon'ble Bombay High Court in writ petition in HDFC Bank Limited v. DCIT(2016) 67 taxmann.com 42(Bom. HC) . We order accordingly. 17. Next Issue in this appeal is with respect to treatment by Revenue of short term capital loss incurred by the assessee on…

M/S Indian Farmers Fertiliser Cooperative Ltd., New Delhi vs. Pr CIT, New Delhi

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

ITA 2487/DEL/2016[2010-11]Status: DisposedITAT Delhi19 Sept 2016AY 2010-11

Bench: Shri H.S. Sidhu & Shri J.S. Reddy

For Appellant: Sh. Vijay Ranjan, Adv. Sh. Vartik RFor Respondent: Sh. A.K. Saroha, CIT(DR)
Section 263Section 36(1)(iii)

…cts and circumstances of the case, the learned Tribunal has rightly deleted the disallowance on interest expenses. We are in complete agreement with the view taken by the learned Tribunal…” (emphasis supplied) (ix) CIT vs. Reliance Utilities and Power Ltd., 313 ITR 340 (Bom.) The relevant part of the Headnote of this case is reproduced below for ready reference: “Held, dismissing the appeal, that if there were 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 funds generated or available with the company, if th…

D.C.I.T Cir - 6, Kolkata vs. M/S Integrated Coal Mining Ltd, Kolkata

In the result, the appeal of the Assessee in ITA No

ITA 1758/KOL/2013[2009-10]Status: DisposedITAT Kolkata16 Sept 2016AY 2009-10

Bench: Shri P.M. Jagtap & Shri S.S.Viswanethra Ravi

Section 14ASection 43B

…IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH KOLKATA Before Shri P.M. Jagtap, Accountant Member and Shri S.S.Viswanethra Ravi, Judicial Member I.T.A. No.1758/KOL/2013 A.Y: 2009-10 D.C.I.T., Cir-6, Kolkata Vs. M/s. Integrated Coal Mining Ltd, PAN: AAACI 5584L (Appellant) (Respondent) I.T.A. No.1804/KOL/2013 A.Y: 2009-10 M/s. Integrated Coal Vs. D.C.I.T., Cir-6, Kolkata Mining Ltd (Appellant) (Respondent) Appearances by: Shri Sachidnanda Srivastava, CIT, Sr. D.R for the Revenue Shri J.P.Khaitan, Sr. Advocate, Ld.AR for the Assessee Date of concluding the hearing : 11-07- 2016 Date of pronounci…

M/S Kem Auto Components Ltd vs. DCIT, Bangalore

In the result, the appeal of the assessee is allowed

ITA 100/BANG/2014[2010-11]Status: DisposedITAT Bangalore16 Sept 2016AY 2010-11

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

For Appellant: Shri Narendra Sharma, AdvoacateFor Respondent: Shri Nambi Rajaa Pillai, JCIT (D.R)

…refore the assessee's own interest free fund is more than sufficient to advance the amount to Directors. In support of his contention, he has relied upon the judgment of Hon'ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom) as well as the decision of the co-ordinate bench of this Tribunal dt.29.4.2016 in the case of KBD Sugars & Distilleries Ltd. Vs. ACIT in ITA No.1062 & 1073/Bang/2014 and submitted that even if the assessee's own fund as well as borrowed fund are pooled together the presumption can be raised that the assessee's own fund is utilized for the p…