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.

Sanjeev S Reniwal, Mumbai vs. ACIT Cen Cir 38, Mumbai

Appeals are allowed

ITA 1486/MUM/2015[2009-10]Status: DisposedITAT Mumbai09 Aug 2016AY 2009-10

Bench: Shri Joginder Singh, Assessment Year: 2009-10 Mr. Rakesh S Reniwal, Acit, 156, Maker Chamber Vi, Central Circle-38, बनाम/ 220 Jamnalal Bajaj Marg, Aayakar Bhavan, Vs. Nariman Point, M.K. Road, Mumbai-400021 Mumbai-400020 "नधा"रती / Assessee राज"व / Revenue P.A. No.Aafpa4201N Assessment Year: 2009-10 Mr. Rajeev S Reniwal, Acit, 156, Maker Chamber Vi, Central Circle-38, बनाम/ 220 Jamnalal Bajaj Marg, Aayakar Bhavan, Vs. Nariman Point, M.K. Road, Mumbai-400021 Mumbai-400020 "नधा"रती / Assessee राज"व / Revenue P.A. No.Admpr3334D Assessment Year: 2009-10

Section 14A

…he Act only in a situation where he is not satisfied with the correctness of the accounts/claim of the assessee. My view find support from the decision in CIT Rakesh S. Reniwal & Ors. vs Hero Cycles Ltd. 323 ITR 158 (P & H), Reliance Utilities and Power Ltd. 313 ITR 340 (Bom.), DCIT vs Jindal Photo Ltd. (Del. Trib.) and Shiva Industries & Holdings Ltd. vs ACIT (2011) 59 DTR 182. The Hon'ble jurisdictional High Court in Reliance Utilities & Power Ltd. categorically held that if interest free funds are available with the assessee, which are sufficient to meet the investment and at the same time assessee raised a l…

Rajeev S Reniwal, Mumbai vs. ACIT Cen Cir 38, Mumbai

Appeals are allowed

ITA 1485/MUM/2015[2009-10]Status: DisposedITAT Mumbai09 Aug 2016AY 2009-10

Bench: Shri Joginder Singh, Assessment Year: 2009-10 Mr. Rakesh S Reniwal, Acit, 156, Maker Chamber Vi, Central Circle-38, बनाम/ 220 Jamnalal Bajaj Marg, Aayakar Bhavan, Vs. Nariman Point, M.K. Road, Mumbai-400021 Mumbai-400020 "नधा"रती / Assessee राज"व / Revenue P.A. No.Aafpa4201N Assessment Year: 2009-10 Mr. Rajeev S Reniwal, Acit, 156, Maker Chamber Vi, Central Circle-38, बनाम/ 220 Jamnalal Bajaj Marg, Aayakar Bhavan, Vs. Nariman Point, M.K. Road, Mumbai-400021 Mumbai-400020 "नधा"रती / Assessee राज"व / Revenue P.A. No.Admpr3334D Assessment Year: 2009-10

Section 14A

…he Act only in a situation where he is not satisfied with the correctness of the accounts/claim of the assessee. My view find support from the decision in CIT Rakesh S. Reniwal & Ors. vs Hero Cycles Ltd. 323 ITR 158 (P & H), Reliance Utilities and Power Ltd. 313 ITR 340 (Bom.), DCIT vs Jindal Photo Ltd. (Del. Trib.) and Shiva Industries & Holdings Ltd. vs ACIT (2011) 59 DTR 182. The Hon'ble jurisdictional High Court in Reliance Utilities & Power Ltd. categorically held that if interest free funds are available with the assessee, which are sufficient to meet the investment and at the same time assessee raised a l…

Rakesh S. Reniwal, Mumbai vs. ACIT Cen Cir 38, Mumbai

Appeals are allowed

ITA 1447/MUM/2015[2009-10]Status: DisposedITAT Mumbai09 Aug 2016AY 2009-10

Bench: Shri Joginder Singh, Assessment Year: 2009-10 Mr. Rakesh S Reniwal, Acit, 156, Maker Chamber Vi, Central Circle-38, बनाम/ 220 Jamnalal Bajaj Marg, Aayakar Bhavan, Vs. Nariman Point, M.K. Road, Mumbai-400021 Mumbai-400020 "नधा"रती / Assessee राज"व / Revenue P.A. No.Aafpa4201N Assessment Year: 2009-10 Mr. Rajeev S Reniwal, Acit, 156, Maker Chamber Vi, Central Circle-38, बनाम/ 220 Jamnalal Bajaj Marg, Aayakar Bhavan, Vs. Nariman Point, M.K. Road, Mumbai-400021 Mumbai-400020 "नधा"रती / Assessee राज"व / Revenue P.A. No.Admpr3334D Assessment Year: 2009-10

Section 14A

…he Act only in a situation where he is not satisfied with the correctness of the accounts/claim of the assessee. My view find support from the decision in CIT Rakesh S. Reniwal & Ors. vs Hero Cycles Ltd. 323 ITR 158 (P & H), Reliance Utilities and Power Ltd. 313 ITR 340 (Bom.), DCIT vs Jindal Photo Ltd. (Del. Trib.) and Shiva Industries & Holdings Ltd. vs ACIT (2011) 59 DTR 182. The Hon'ble jurisdictional High Court in Reliance Utilities & Power Ltd. categorically held that if interest free funds are available with the assessee, which are sufficient to meet the investment and at the same time assessee raised a l…

Lehrikant Sunderji Bhadra, Mumbai vs. ACIT 25(2), Mumbai

In the result the appeal of the assessee is partly allowed

ITA 7633/MUM/2014[2010-11]Status: DisposedITAT Mumbai08 Aug 2016AY 2010-11

Bench: Hon’Ble S/Shri Joginder Singh (Jm) & Rajesh Kumar,(Am) आमकय अऩीर सं./I.T.A. No7633/Mum/2014 (ननधधायण वषा / Assessment Year :2010-2011) बनाम/ Mr.Lehrikant Sunderji Bhadra, Asstt. Commissioner Of Income 201, Beach Apatment Balraj Tax-25(2), Vs. Sahani Road, Opp Novotel Mumbai. Hotel Juhu Mumbai-400049 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) ..

For Appellant: Shri None
Section 143(1)Section 143(3)Section 14A

…rule 8D 2(ii) to the tune of Rs.1,54,928/- was not correct and therefore deserved to be deleted. The facts of the case are similar to the facts and issue decided by the Hon’ble Bombay High court in the case of CIT V/s RELIANCE UTILITIES AND POWER LTD. [2009] 313 ITR 340 (Bom). However, as regard Rule 8D (2)(iii), the provision was rightly applied by the AO and upheld by the ld.CIT(A). We, therefore, considering the facts of the case hold that the order of ld.CIT(A) on the confirmation of addition u/r 8D(2)(ii) cannot be sustained and directed to be deleted. The AO is directed accordingly. 5. In the result the ap…

Wockhardt Hospitals Ltd, Mumbai vs. Addl CIT RG 10(1), Mumbai

In the result appeal filed by the assessee company in ITA no

ITA 3002/MUM/2013[2009-10]Status: DisposedITAT Mumbai08 Aug 2016AY 2009-10

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 805/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) आयकर अपील सं./I.T.A. No. 3002/Mum/2013 ("नधा"रण वष" / Assessment Year : 2009-10) M/S Wockhardt Hospitals Deputy Commissioner Of बनाम/ Ltd., Income Tax – Range 10(1), V. Wockhardt Towers, Aayakar Bhavan, Bandra-Kurla Complex, Mumbai-400 020 Bandra(E), Mumbai – 400051. "थायी लेखा सं./Pan : Aaacw3342G (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri S.K. Bepari D.R
Section 115JSection 36

…also submitted that it has deployed the said loan of Rs.5.8 crores out of its own funds. To support the contention, the assessee company relied upon the decision of the Hon’ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Limited(2009) 313 ITR 340(Bom. HC) as well as the decision of CIT v. HDFC Bank Limited in ITA no 330 of 2012 ((2014) 366 ITR 505(Bom. HC) ) and CIT v. HDFC Bank Limited(WP no. 1753 of 2016)((2016) ITA 805/M/11 & 3002/M/2013 14 67 taxmann.com 42(Bom.HC). Keeping in view of the facts and circumstances of the case, We are inclined to set aside and restore the matter to th…

Wockhardt Hospitals Ltd., Mumbai vs. DCIT 10(1), Mumbai

In the result appeal filed by the assessee company in ITA no

ITA 805/MUM/2011[2008-09]Status: DisposedITAT Mumbai08 Aug 2016AY 2008-09

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 805/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) आयकर अपील सं./I.T.A. No. 3002/Mum/2013 ("नधा"रण वष" / Assessment Year : 2009-10) M/S Wockhardt Hospitals Deputy Commissioner Of बनाम/ Ltd., Income Tax – Range 10(1), V. Wockhardt Towers, Aayakar Bhavan, Bandra-Kurla Complex, Mumbai-400 020 Bandra(E), Mumbai – 400051. "थायी लेखा सं./Pan : Aaacw3342G (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri S.K. Bepari D.R
Section 115JSection 36

…also submitted that it has deployed the said loan of Rs.5.8 crores out of its own funds. To support the contention, the assessee company relied upon the decision of the Hon’ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Limited(2009) 313 ITR 340(Bom. HC) as well as the decision of CIT v. HDFC Bank Limited in ITA no 330 of 2012 ((2014) 366 ITR 505(Bom. HC) ) and CIT v. HDFC Bank Limited(WP no. 1753 of 2016)((2016) ITA 805/M/11 & 3002/M/2013 14 67 taxmann.com 42(Bom.HC). Keeping in view of the facts and circumstances of the case, We are inclined to set aside and restore the matter to th…

Weizmann Ltd, Mumbai vs. Addl CIT RG 1(3), Mumbai

Appeal of the AO is dismissed

ITA 7102/MUM/2014[2010-11]Status: DisposedITAT Mumbai04 Aug 2016AY 2010-11

Bench: S/Shri Rajendraand,Ramlal Negiआयकर आयकर अपील अपील संसंसंसं./Ita/7102/Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Years: 2010-11 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" M/S.Weizmann Ltd. Acit, Range-1(3) Empire House, 214, D.N. Road Aayakar Bhavan Vs. A.K. Nayak Marg Mumbai. Fort,Mumbai-400 001. Pan:Aaacw 1260 H (अपीलाथ" /Appellant) (""यथ" / Respondent) आयकर आयकर आयकर अपील आयकर अपील अपील संसंसंसं./Ita/7447/Mum/2014,िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Years: 2010-11 वष" Acit, Range-1(3) Vs. M/S.Weizmann Ltd. Mumbai. Mumbai-1. (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By:Shri Vivek Perampurna-Dr Assessee By: Shri Anuj Kishnadwala-Ar सुनवाई क" तारीख / Date Of Hearing: 04.08.2016 घोषणा क" तारीख / Date Of Pronouncement: 04.08.2016 आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा लेखा सद"य लेखा लेखा सद"य सद"य राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार Per Rajendra, Am- अनुसार Challenging The Order Dt.29.08.2014 Of The Cit(A)-2,Mumbai,Assessing Officer (Ao) & The Assessee Have Filed Cross Appeals For The Year Under Consideration.Assessee-Company, Engaged In The Business Of Manufacturing & Export Of Textile & Other Goods,Filed Its Return Of Income On 14.10.2010,Declaring Total Income Of Rs.7.18 Crores.The Ao Finalised The Assessment,U/S.143(3)Of The Act,On 26.03.2013,Determining The Income Of The Assessee At Rs. 16.97 Crores.

For Appellant: Shri Anuj Kishnadwala-ARFor Respondent: Shri Vivek Perampurna-DR
Section 10(34)Section 14Section 143(3)Section 14ASection 254(1)

…आयकर अपीलीय अिधकरण, मुंबई “ जी जी जी” खंडपीठ जी Income-tax Appellate Tribunal -“G”Bench Mumbai सव"ी सव"ी सव"ी राजे"" सव"ी राजे"" राजे"",लेखा सद"य राजे"" लेखा सद"य लेखा सद"य एवं लेखा सद"य एवं एवं,रामलाल नेगी एवं रामलाल नेगी रामलाल नेगी "याियक सद"य रामलाल नेगी "याियक सद"य "याियक सद"य "याियक सद"य Before S/Shri Rajendra,Accountant Member and,Ramlal Negi Judicial Member आयकर आयकर अपील अपील संसंसंसं./ITA/7102/Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Years: 2010-11 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" M/s.Weizmann Ltd. ACIT, Range-1(3) Empire House, 214, D.N. Road Aayakar Bhavan Vs. A.K. Nayak Marg Mumbai…

Mantor Capital Ltd, Mumbai vs. Asst CIT Cen Cir 22, Mumbai

In the result, appeals of the assessee are allowed in part, in terms indicated hereinabove, whereas appeal of the Revenue is dismissed

ITA 196/MUM/2015[2011-12]Status: DisposedITAT Mumbai03 Aug 2016AY 2011-12

Bench: Shri R.C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./Ita Nos.7408/M/2014 (निर्धारण वषा / Assessment Year: 2010-11) Acit Cc 3(3) Vs. Mentor Capital Ltd. 713 Raheja Centre Free Press Mumbai – 4000020 Journal Rd. Nariman Pt. Mumbai-400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./ Ita Nos. 194 To 196/M/2015 & 7512/M/2014 (निर्धारण वषा / Assessment Year: 2008-2009 To 2011-2012) Vs. Acit, Mentor Capital Ltd. 713 Raheja Centre Free Cc -22 Press Journal Rd. Mumbai – 4000020 Nariman Pt. Mumbai- 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri N.P. Singh, Cit Dr ननधाारयती की ओर से /Assessee By : Mr. N. R. Suresh, Ar सुनवाई की तायीख / Date Of Hearing : 25/07/2016 घोषणा की तायीख/Date Of Pronouncement 03/08/2016 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Cross Appeals Filed By The Revenue Against The Order Of Cit(A)-Mumbai, For The A.Y.2010-2011 & The Appeals Filed By Assessee For Assessment Years 2008-2009 To 2011-2012, In The Matter Order Passed U/S 143(3)/143(3) R.W.S.147 Of The I.T. Act.

For Appellant: Mr. N. R. Suresh, ARFor Respondent: Shri N.P. Singh, CIT DR
Section 133Section 133ASection 143(3)Section 14ASection 3

…the Circular 14 (XL-35) and held that the AO is duty bound to point out any relief available to the assessee under the Act even though it is not claimed by the assessee. 39. The jurisdictional High Court in the case of CIT Vs. Reliance Utilities & Power Ltd., 313 ITR 340 has laid down the following principle :- “If there are funds available both, interest free and over draft and/or loans are 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 are sufficient to meet the investments.” 40. Hon’ble Bombay Hig…

Mantor Capital Ltd, Mumbai vs. Asst CIT Cen Cir 22, Mumbai

In the result, appeals of the assessee are allowed in part, in terms indicated hereinabove, whereas appeal of the Revenue is dismissed

ITA 195/MUM/2015[2009-10]Status: DisposedITAT Mumbai03 Aug 2016AY 2009-10

Bench: Shri R.C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./Ita Nos.7408/M/2014 (निर्धारण वषा / Assessment Year: 2010-11) Acit Cc 3(3) Vs. Mentor Capital Ltd. 713 Raheja Centre Free Press Mumbai – 4000020 Journal Rd. Nariman Pt. Mumbai-400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./ Ita Nos. 194 To 196/M/2015 & 7512/M/2014 (निर्धारण वषा / Assessment Year: 2008-2009 To 2011-2012) Vs. Acit, Mentor Capital Ltd. 713 Raheja Centre Free Cc -22 Press Journal Rd. Mumbai – 4000020 Nariman Pt. Mumbai- 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri N.P. Singh, Cit Dr ननधाारयती की ओर से /Assessee By : Mr. N. R. Suresh, Ar सुनवाई की तायीख / Date Of Hearing : 25/07/2016 घोषणा की तायीख/Date Of Pronouncement 03/08/2016 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Cross Appeals Filed By The Revenue Against The Order Of Cit(A)-Mumbai, For The A.Y.2010-2011 & The Appeals Filed By Assessee For Assessment Years 2008-2009 To 2011-2012, In The Matter Order Passed U/S 143(3)/143(3) R.W.S.147 Of The I.T. Act.

For Appellant: Mr. N. R. Suresh, ARFor Respondent: Shri N.P. Singh, CIT DR
Section 133Section 133ASection 143(3)Section 14ASection 3

…the Circular 14 (XL-35) and held that the AO is duty bound to point out any relief available to the assessee under the Act even though it is not claimed by the assessee. 39. The jurisdictional High Court in the case of CIT Vs. Reliance Utilities & Power Ltd., 313 ITR 340 has laid down the following principle :- “If there are funds available both, interest free and over draft and/or loans are 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 are sufficient to meet the investments.” 40. Hon’ble Bombay Hig…

Mantor Capital Ltd, Mumbai vs. Asst CIT Cen Cir 22, Mumbai

In the result, appeals of the assessee are allowed in part, in terms indicated hereinabove, whereas appeal of the Revenue is dismissed

ITA 194/MUM/2015[2008-09]Status: DisposedITAT Mumbai03 Aug 2016AY 2008-09

Bench: Shri R.C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./Ita Nos.7408/M/2014 (निर्धारण वषा / Assessment Year: 2010-11) Acit Cc 3(3) Vs. Mentor Capital Ltd. 713 Raheja Centre Free Press Mumbai – 4000020 Journal Rd. Nariman Pt. Mumbai-400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./ Ita Nos. 194 To 196/M/2015 & 7512/M/2014 (निर्धारण वषा / Assessment Year: 2008-2009 To 2011-2012) Vs. Acit, Mentor Capital Ltd. 713 Raheja Centre Free Cc -22 Press Journal Rd. Mumbai – 4000020 Nariman Pt. Mumbai- 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri N.P. Singh, Cit Dr ननधाारयती की ओर से /Assessee By : Mr. N. R. Suresh, Ar सुनवाई की तायीख / Date Of Hearing : 25/07/2016 घोषणा की तायीख/Date Of Pronouncement 03/08/2016 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Cross Appeals Filed By The Revenue Against The Order Of Cit(A)-Mumbai, For The A.Y.2010-2011 & The Appeals Filed By Assessee For Assessment Years 2008-2009 To 2011-2012, In The Matter Order Passed U/S 143(3)/143(3) R.W.S.147 Of The I.T. Act.

For Appellant: Mr. N. R. Suresh, ARFor Respondent: Shri N.P. Singh, CIT DR
Section 133Section 133ASection 143(3)Section 14ASection 3

…the Circular 14 (XL-35) and held that the AO is duty bound to point out any relief available to the assessee under the Act even though it is not claimed by the assessee. 39. The jurisdictional High Court in the case of CIT Vs. Reliance Utilities & Power Ltd., 313 ITR 340 has laid down the following principle :- “If there are funds available both, interest free and over draft and/or loans are 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 are sufficient to meet the investments.” 40. Hon’ble Bombay Hig…

Mentor Capital Ltd, Mumbai vs. DCIT Cen Cir 22, Mumbai

In the result, appeals of the assessee are allowed in part, in terms indicated hereinabove, whereas appeal of the Revenue is dismissed

ITA 7512/MUM/2014[2010-11]Status: DisposedITAT Mumbai03 Aug 2016AY 2010-11

Bench: Shri R.C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./Ita Nos.7408/M/2014 (निर्धारण वषा / Assessment Year: 2010-11) Acit Cc 3(3) Vs. Mentor Capital Ltd. 713 Raheja Centre Free Press Mumbai – 4000020 Journal Rd. Nariman Pt. Mumbai-400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./ Ita Nos. 194 To 196/M/2015 & 7512/M/2014 (निर्धारण वषा / Assessment Year: 2008-2009 To 2011-2012) Vs. Acit, Mentor Capital Ltd. 713 Raheja Centre Free Cc -22 Press Journal Rd. Mumbai – 4000020 Nariman Pt. Mumbai- 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri N.P. Singh, Cit Dr ननधाारयती की ओर से /Assessee By : Mr. N. R. Suresh, Ar सुनवाई की तायीख / Date Of Hearing : 25/07/2016 घोषणा की तायीख/Date Of Pronouncement 03/08/2016 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Cross Appeals Filed By The Revenue Against The Order Of Cit(A)-Mumbai, For The A.Y.2010-2011 & The Appeals Filed By Assessee For Assessment Years 2008-2009 To 2011-2012, In The Matter Order Passed U/S 143(3)/143(3) R.W.S.147 Of The I.T. Act.

For Appellant: Mr. N. R. Suresh, ARFor Respondent: Shri N.P. Singh, CIT DR
Section 133Section 133ASection 143(3)Section 14ASection 3

…the Circular 14 (XL-35) and held that the AO is duty bound to point out any relief available to the assessee under the Act even though it is not claimed by the assessee. 39. The jurisdictional High Court in the case of CIT Vs. Reliance Utilities & Power Ltd., 313 ITR 340 has laid down the following principle :- “If there are funds available both, interest free and over draft and/or loans are 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 are sufficient to meet the investments.” 40. Hon’ble Bombay Hig…

ACIT CC 3(3) Cen RG 3, Mumbai vs. Mentor Capital Ltd, Mumbai

In the result, appeals of the assessee are allowed in part, in terms indicated hereinabove, whereas appeal of the Revenue is dismissed

ITA 7408/MUM/2014[2010-11]Status: DisposedITAT Mumbai03 Aug 2016AY 2010-11

Bench: Shri R.C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./Ita Nos.7408/M/2014 (निर्धारण वषा / Assessment Year: 2010-11) Acit Cc 3(3) Vs. Mentor Capital Ltd. 713 Raheja Centre Free Press Mumbai – 4000020 Journal Rd. Nariman Pt. Mumbai-400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./ Ita Nos. 194 To 196/M/2015 & 7512/M/2014 (निर्धारण वषा / Assessment Year: 2008-2009 To 2011-2012) Vs. Acit, Mentor Capital Ltd. 713 Raheja Centre Free Cc -22 Press Journal Rd. Mumbai – 4000020 Nariman Pt. Mumbai- 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaccp7995G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri N.P. Singh, Cit Dr ननधाारयती की ओर से /Assessee By : Mr. N. R. Suresh, Ar सुनवाई की तायीख / Date Of Hearing : 25/07/2016 घोषणा की तायीख/Date Of Pronouncement 03/08/2016 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Cross Appeals Filed By The Revenue Against The Order Of Cit(A)-Mumbai, For The A.Y.2010-2011 & The Appeals Filed By Assessee For Assessment Years 2008-2009 To 2011-2012, In The Matter Order Passed U/S 143(3)/143(3) R.W.S.147 Of The I.T. Act.

For Appellant: Mr. N. R. Suresh, ARFor Respondent: Shri N.P. Singh, CIT DR
Section 133Section 133ASection 143(3)Section 14ASection 3

…the Circular 14 (XL-35) and held that the AO is duty bound to point out any relief available to the assessee under the Act even though it is not claimed by the assessee. 39. The jurisdictional High Court in the case of CIT Vs. Reliance Utilities & Power Ltd., 313 ITR 340 has laid down the following principle :- “If there are funds available both, interest free and over draft and/or loans are 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 are sufficient to meet the investments.” 40. Hon’ble Bombay Hig…

Sonphankhi Shares & Securities P.Ltd, Mumbai vs. ITO WD 4(2)(2), Mumbai

In the result, assessee company appeal in ITA No 7068/Mum/2012 for assessment year 2009-10 is partly allowed

ITA 7068/MUM/2012[2009-10]Status: DisposedITAT Mumbai03 Aug 2016AY 2009-10

Bench: Shri Saktijit Dey & Shri Ramit Kochar

For Respondent: Dr. Suman Ratnam Darsi
Section 143(2)Section 143(3)Section 14ASection 234ASection 271(1)(c)Section 73

…in making investments and hence interest expenditure cannot be disallowed under Rule 8D(2)(ii) of the Income Tax Rules, 1962. The assessee company relied upon the decision of Hon’ble Bombay High Court in the case of Reliance Utilities and Power Limited(2009) 313 ITR 340(Bom. HC) . The learned counsel of the assessee company drew our attention to audited financial statements of the assessee company to contend that the interest income was earned of Rs.36.51 lacs while the assessee paid interest of Rs.3.72 lacs to contend that the interest on net basis is infact earned by the assessee company and no disallowance is…

Ajcon Global Services Ltd, Mumbai vs. ITO 4(1)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 50/MUM/2013[2009-10]Status: DisposedITAT Mumbai01 Aug 2016AY 2009-10

Bench: Shri B R Baskaran & Shri Amit Shukla

Section 143(3)Section 14ASection 194JSection 40

…1 4 अ"कोन "लोबल स"व"सेस "ल"मटेड Ajcon Global Services Ltd. ITA 50/Mum/2013 He thus submitted that, no disallowance should be made in view of the decision of Hon’ble Bombay High Court in the case of CIT vs Reliance Utilities and Power Ltd., reported in [2009] 313 ITR 340; and HDFC Bank Ltd., reported in [2014] 366 ITR 505. He further pointed out that, in any case the investment has been made in the subsidiary and associate company which are in the nature of “strategic investments” hence no disallowance of indirect expenditure should be made, because they were made for the purpose of business. He further submitted…

Alok Infrastructure Ltd, Mumbai vs. Addl CIT RG 6(1), Mumbai

In the result, whereas the appeal of the assessee is allowed, that of Revenue is dismissed

ITA 818/MUM/2012[2008-09]Status: DisposedITAT Mumbai29 Jul 2016AY 2008-09

Bench: Shri G.S.Pannu & Shri Sanjay Garg.

For Appellant: S/Shri M.P.Lohia & Nikhil TiwariFor Respondent: Shri Javed Akhtar
Section 143(3)Section 14ASection 14A(1)Section 14A(2)Section 36(1)(iii)

…effect that its total shareholder funds, which were free of interest, were in excess of the impugned investments and, therefore, following the ratio of the judgment of the Hon'ble Bombay High Court in the case of CIT. Vs. Reliance Utilities And Power Limited.,313 ITR 340(Bom), it was to be presumed that such investments are out of non-interest bearing funds, and, thus no interest was disallowable. The CIT(A) accepted both the pleas set up by the assessee and has deleted the addition. 12. Before us, the Ld. Departmental Representative has primarily relied upon the order of the Assessing Officer in support of the…

Ashok Apparels P. Ltd., Mumbai vs. D.C.I.T. Cen. Cir.47, Mumbai

In the result, grounds No

ITA 7303/MUM/2012[2009-10]Status: DisposedITAT Mumbai29 Jul 2016AY 2009-10

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Respondent: Shri B Pruseth &
Section 143(3)Section 14A

…during the year. The Ld. AO, disallowed 50% of the interest expenditure claim which worked out to Rs.16,76,417/-. 4. Before the Ld. CIT(A), the assessee on its facts strongly placed reliance in the case of CIT vs. Reliance Utility and Power Ltd, reported in 313 ITR 340 and submitted that its surplus and interest free funds exceeded the investment made in shares. However, the Ld. CIT(A) disagreed with the 5 ITA No.: 3561/Mum/2012 ITA No.:3562/Mum/2012 ITA No.:3563/Mum/2012 ITA No.:7303/Mum/2012 M/s Ashok Apparels P Ltd. contention of the assessee on the ground that assessee has to demonstrate that the investment…

Ashok Apparels P.Ltd, Mumbai vs. DCIT Cen Cir 47, Mumbai

In the result, grounds No

ITA 3563/MUM/2012[2008-09]Status: DisposedITAT Mumbai29 Jul 2016AY 2008-09

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Respondent: Shri B Pruseth &
Section 143(3)Section 14A

…during the year. The Ld. AO, disallowed 50% of the interest expenditure claim which worked out to Rs.16,76,417/-. 4. Before the Ld. CIT(A), the assessee on its facts strongly placed reliance in the case of CIT vs. Reliance Utility and Power Ltd, reported in 313 ITR 340 and submitted that its surplus and interest free funds exceeded the investment made in shares. However, the Ld. CIT(A) disagreed with the 5 ITA No.: 3561/Mum/2012 ITA No.:3562/Mum/2012 ITA No.:3563/Mum/2012 ITA No.:7303/Mum/2012 M/s Ashok Apparels P Ltd. contention of the assessee on the ground that assessee has to demonstrate that the investment…

Ashok Apparels P.Ltd, Mumbai vs. DCIT Cen Cir 47, Mumbai

In the result, grounds No

ITA 3562/MUM/2012[2007-08]Status: DisposedITAT Mumbai29 Jul 2016AY 2007-08

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Respondent: Shri B Pruseth &
Section 143(3)Section 14A

…during the year. The Ld. AO, disallowed 50% of the interest expenditure claim which worked out to Rs.16,76,417/-. 4. Before the Ld. CIT(A), the assessee on its facts strongly placed reliance in the case of CIT vs. Reliance Utility and Power Ltd, reported in 313 ITR 340 and submitted that its surplus and interest free funds exceeded the investment made in shares. However, the Ld. CIT(A) disagreed with the 5 ITA No.: 3561/Mum/2012 ITA No.:3562/Mum/2012 ITA No.:3563/Mum/2012 ITA No.:7303/Mum/2012 M/s Ashok Apparels P Ltd. contention of the assessee on the ground that assessee has to demonstrate that the investment…

Ashok Apparels P.Ltd, Mumbai vs. DCIT Cen Cir 47, Mumbai

In the result, grounds No

ITA 3561/MUM/2012[2006-07]Status: DisposedITAT Mumbai29 Jul 2016AY 2006-07

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Respondent: Shri B Pruseth &
Section 143(3)Section 14A

…during the year. The Ld. AO, disallowed 50% of the interest expenditure claim which worked out to Rs.16,76,417/-. 4. Before the Ld. CIT(A), the assessee on its facts strongly placed reliance in the case of CIT vs. Reliance Utility and Power Ltd, reported in 313 ITR 340 and submitted that its surplus and interest free funds exceeded the investment made in shares. However, the Ld. CIT(A) disagreed with the 5 ITA No.: 3561/Mum/2012 ITA No.:3562/Mum/2012 ITA No.:3563/Mum/2012 ITA No.:7303/Mum/2012 M/s Ashok Apparels P Ltd. contention of the assessee on the ground that assessee has to demonstrate that the investment…

ACIT, Sonepat vs. M/S. Atlas Cycles (Haryana) Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 4049/DEL/2013[2008-09]Status: DisposedITAT Delhi29 Jul 2016AY 2008-09

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…indings of the Ld. CIT (A) before us on both the issues. 3.2.2 It is seen that this issue is squarely covered by a judgment of The Hon’ble Bombay High Court in the case of Commissioner of Income Tax v/s Reliance Utilities and Power Ltd., reported in (2009) 313 ITR 340 (Bom). The facts of that case were that the assessee viz. M/s Reliance Utilities and Power Ltd. had invested certain amounts in Reliance Gas Ltd. and Reliance Strategic Investments Ltd. It was the case of the assessee that they themselves were in the business of generation of power and they had earned regular business income there from. The in…