CIT v. Reliance Utilities & Power Ltd.

Fiduciary Euromax Global Markets Ltd, Mumbai vs. DCIT 8(1), Mumbai

In the result, this appeal of the assessee is allowed

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

…ts made by the assessee in group companies while calculating the disallowance under section 14A read with rule 8D of the Income Tax Act. 15. Further, we find that the Hon’ble Bombay High Court in the case of “CIT vs. Reliance Utilities and Power Ltd.” (2009) 313 ITR 340 (Bom) has held has held that if there are funds available, both interest free and over draft 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 investment. Similar view has been taken in the case…

Fiduciary Euromax Global Markets Ltd, Mumbai vs. DCIT 8(1), Mumbai

In the result, this appeal of the assessee is allowed

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

…ts made by the assessee in group companies while calculating the disallowance under section 14A read with rule 8D of the Income Tax Act. 15. Further, we find that the Hon’ble Bombay High Court in the case of “CIT vs. Reliance Utilities and Power Ltd.” (2009) 313 ITR 340 (Bom) has held has held that if there are funds available, both interest free and over draft 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 investment. Similar view has been taken in the case…

Bec Impex International P.Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

Accordingly the appeal filed by the assessee is hereby allowed for statistical purpose

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.2462/M/13 ("नधा"रण वष" / Assessment Year: 2009-10) M/S. Bec Impex The Dy. Commissioner Of बनाम/ International Pvt. Ltd. Income Tax Circle 3(1) Vs. C/O. Karnavat & Co. Mumbai 2A Kitab Mahal, 1St Floor, 192, Dr.D.N.Road, Mumbai - 400001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb0107C

…आयकर अपील"य अ"धकरण,“बी” "यायपीठ, मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI "ी आर. सी. शमा", लेखा सद"य, एवं "ी अमरजीत "संह, "या"यक सद"य, के सम" BEFORE SHRI R.C.SHARMA, AM AND SHRI AMARJIT SINGH, JM आयकर अपील सं/ I.T.A. No.2462/M/13 ("नधा"रण वष" / Assessment Year: 2009-10) M/s. BEC Impex The Dy. Commissioner of बनाम/ International Pvt. Ltd. Income Tax Circle 3(1) Vs. C/o. Karnavat & Co. Mumbai 2A Kitab Mahal, 1st Floor, 192, Dr.D.N.Road, Mumbai - 400001 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACB0107C (अपीलाथ" /Appellant) .. (""यथ" / Respondent) Assessee by: Shri Sunil Hirawat Department by:…

DCIT 2(1), Mumbai vs. Dighi Port Ltd, Mumbai

In the result, revenue’s appeals are partly allowed, for statistical purpose and assessee’s appeal is partly allowed for statistical purpose and the cross objection filed by the assessee is allowed

Bench: Shri Joginder Singh () & Shri Ashwani Taneja (Acountant Member)

…crores. Thus, investment in this year has decreased and no fresh investment has been made in tax free securities. Under these circumstances, we find that disallowance of interest should not have ben made in view of judgement of Reliance Utilities & Power Ltd 313 ITR 340 (Bom) and HDFC Bank Ltd (ITA No.330 o 2012). These facts have not been disputed by the ld.DR. Therefore, keeping in view the facts of this case and law clarified by the 10 ITA 286/Mum/2012 ITA 287/Mum/2012 CO 270/Mum/2012 ITA 738/Mum/2012 Hon’ble Bombay High Court, we find that disallowance of interest is not sustainable and the same is directed…

DCIT 2(1), Mumbai vs. Dighi Port Ltd, Mumbai

In the result, revenue’s appeals are partly allowed, for statistical purpose and assessee’s appeal is partly allowed for statistical purpose and the cross objection filed by the assessee is allowed

Bench: Shri Joginder Singh () & Shri Ashwani Taneja (Acountant Member)

…crores. Thus, investment in this year has decreased and no fresh investment has been made in tax free securities. Under these circumstances, we find that disallowance of interest should not have ben made in view of judgement of Reliance Utilities & Power Ltd 313 ITR 340 (Bom) and HDFC Bank Ltd (ITA No.330 o 2012). These facts have not been disputed by the ld.DR. Therefore, keeping in view the facts of this case and law clarified by the 10 ITA 286/Mum/2012 ITA 287/Mum/2012 CO 270/Mum/2012 ITA 738/Mum/2012 Hon’ble Bombay High Court, we find that disallowance of interest is not sustainable and the same is directed…

Dighi Port Ltd, Mumbai vs. ITO WD 2(1)2, Mumbai

In the result, revenue’s appeals are partly allowed, for statistical purpose and assessee’s appeal is partly allowed for statistical purpose and the cross objection filed by the assessee is allowed

Bench: Shri Joginder Singh () & Shri Ashwani Taneja (Acountant Member)

…crores. Thus, investment in this year has decreased and no fresh investment has been made in tax free securities. Under these circumstances, we find that disallowance of interest should not have ben made in view of judgement of Reliance Utilities & Power Ltd 313 ITR 340 (Bom) and HDFC Bank Ltd (ITA No.330 o 2012). These facts have not been disputed by the ld.DR. Therefore, keeping in view the facts of this case and law clarified by the 10 ITA 286/Mum/2012 ITA 287/Mum/2012 CO 270/Mum/2012 ITA 738/Mum/2012 Hon’ble Bombay High Court, we find that disallowance of interest is not sustainable and the same is directed…

Khandelwal Laboratories P.Ltd, Mumbai vs. CIT 6, Mumbai

In the result, both the assessee’s appeals are allowed in part in terms indicated herein above

…आयकर अपीऱीय अधिकरण “ए” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI R. C. SHARMA, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER आमकय अऩीर सं./I.T.A. No. 2765/Mum/2014 (नििाारण वषा / Assessment Year: 2009-10) CIT-6, 5th Floor, Aayakar Bhawan, Khandelwal Laboratories Pvt. Ltd. बिाम/ 49/78, D. Lad path, Chinchpokli, Mumbai Vs. Mumbai-400 033 स्थामी रेखा सं./जीआइआय सं ./PAN/GIR No. AAACK 4225 E (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : अऩीराथी की ओय से / Appellant by : Shri Vijay Mehta & Shri Anuj Kisnadwalla प्रत्मथी की ओय से/Respondent by : Shri Sanjay Ba…

Khandelwal Laboratories P. Ltd, Mumbai vs. CIT 6, Mumbai

In the result, both the assessee’s appeals are allowed in part in terms indicated herein above

…आयकर अपीऱीय अधिकरण “ए” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI R. C. SHARMA, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER आमकय अऩीर सं./I.T.A. No. 2765/Mum/2014 (नििाारण वषा / Assessment Year: 2009-10) CIT-6, 5th Floor, Aayakar Bhawan, Khandelwal Laboratories Pvt. Ltd. बिाम/ 49/78, D. Lad path, Chinchpokli, Mumbai Vs. Mumbai-400 033 स्थामी रेखा सं./जीआइआय सं ./PAN/GIR No. AAACK 4225 E (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : अऩीराथी की ओय से / Appellant by : Shri Vijay Mehta & Shri Anuj Kisnadwalla प्रत्मथी की ओय से/Respondent by : Shri Sanjay Ba…

ACIT Cen Cir 29, Mumbai vs. Vijaydeep Hotels P.Ltd, Mumbai

In the result, the appeals filed by the Revenue are dismissed and the appeals filed by the assessee are partly allowed

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं /I.Ta Nos. 3291,3293,3384 & 3385/Mum/11 ("नधा"रण वष" / Assessment Years: 2004-05 To 2007-08 The Acit, M/S. Vijaydeep Hotels Pvt. बनाम/ Cent. Cir-29, Ltd., Vs. Aayakar Bhavan, Hotel Bawa International, Mumbai-400 020 Nehru Road Ext, Near Domestic Airport, Vile Parle, Mumbai-400 049 आयकर अपील सं /I.Ta Nos. 3241 & 3243/Mum/11 ("नधा"रण वष" / Assessment Years: 2006-07 & 2007-08 M/S. Vijaydeep Hotels Pvt. The Acit, बनाम/ Ltd., Cent. Cir-29, Vs. Hotel Bawa International, Aayakar Bhavan, Nehru Road Ext, Mumbai-400 020 Near Domestic Airport, Vile Parle, Mumbai-400 049 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaacv 1582D आयकर अपील सं /I.Ta Nos. 951 To 953/Mum/2013 ("नधा"रण वष" / Assessment Years: 2005-06 To 2007-08 Shri Karanveer Singh G. The Acit, बनाम/ Bawa, Cent. Cir-29, Vs. 22, Sahib Guru Angad Aayakar Bhavan, Niwas, Mumbai-400 020 Vitthal Nagar Co. Op. Soc. N.S. Road No. 22, Jvpd Scheme, Juhu, Vile Parle (E), Mumbai-400 049 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aejpb 8856F

…tion is that investments/interest free advances given are out of interest free funds available with the assessee. For this proposition, he places reliance on the decision of the Jurisdictional High Court in the case of CIT Vs Reliance Utilities & Power Ltd., (313 ITR 340). The Ld. Counsel for the assessee further submits that the interest free advances made to sister concerns are for the purpose of business only and due to commercial expediency 8 Vijaydeep Hotels and therefore he submits that no disallowance is warranted u/s. 36(i)(iii) of the Act. 11. In so far as the contention that no addition is possible w…

Vijaydeep Hotels P. Ltd, Mumbai vs. DCIT Cen Cir 29, Mumbai

In the result, the appeals filed by the Revenue are dismissed and the appeals filed by the assessee are partly allowed

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं /I.Ta Nos. 3291,3293,3384 & 3385/Mum/11 ("नधा"रण वष" / Assessment Years: 2004-05 To 2007-08 The Acit, M/S. Vijaydeep Hotels Pvt. बनाम/ Cent. Cir-29, Ltd., Vs. Aayakar Bhavan, Hotel Bawa International, Mumbai-400 020 Nehru Road Ext, Near Domestic Airport, Vile Parle, Mumbai-400 049 आयकर अपील सं /I.Ta Nos. 3241 & 3243/Mum/11 ("नधा"रण वष" / Assessment Years: 2006-07 & 2007-08 M/S. Vijaydeep Hotels Pvt. The Acit, बनाम/ Ltd., Cent. Cir-29, Vs. Hotel Bawa International, Aayakar Bhavan, Nehru Road Ext, Mumbai-400 020 Near Domestic Airport, Vile Parle, Mumbai-400 049 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaacv 1582D आयकर अपील सं /I.Ta Nos. 951 To 953/Mum/2013 ("नधा"रण वष" / Assessment Years: 2005-06 To 2007-08 Shri Karanveer Singh G. The Acit, बनाम/ Bawa, Cent. Cir-29, Vs. 22, Sahib Guru Angad Aayakar Bhavan, Niwas, Mumbai-400 020 Vitthal Nagar Co. Op. Soc. N.S. Road No. 22, Jvpd Scheme, Juhu, Vile Parle (E), Mumbai-400 049 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aejpb 8856F

…tion is that investments/interest free advances given are out of interest free funds available with the assessee. For this proposition, he places reliance on the decision of the Jurisdictional High Court in the case of CIT Vs Reliance Utilities & Power Ltd., (313 ITR 340). The Ld. Counsel for the assessee further submits that the interest free advances made to sister concerns are for the purpose of business only and due to commercial expediency 8 Vijaydeep Hotels and therefore he submits that no disallowance is warranted u/s. 36(i)(iii) of the Act. 11. In so far as the contention that no addition is possible w…

Anita Dalal, Mumbai vs. Asst CIT 12(1), Mumbai

In the result, the appeal of the assessee is allowed

Bench: Sri Mahavir Singh, Jm & Sri Ramit Kochar, Am Mrs. Anita Dalal, Vs. The Asst. Commissioner Of 18B, Rajabahadur Mansion, Income Tax, 12 (1), Mumbai 8, Hamam Street, Mumbai 400 023 Pan: Aaepd 9039 Q Appellant Respondent ..

…were before the lower authorities. Hence, in this position, the learned Counsel for the assessee stated that the assessee’s case is squarely covered by the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bombay). We find from the above arguments and the facts of the case that Revenue has not disputed the availability of assessee’s own interest free funds as detailed out by the assessee before the learned CIT (A) and now before us also. Hence, this being the position, the issue in the present appeal is squarely covered by the decision of the Hon’…

Revashankar Gems Ltd, Mumbai vs. Asst CIT 5(3), Mumbai

In the result, appeal of the assessee is allowed for statistical purposes

Bench: Shri Joginder Singh & Shri Ashwani Taneja

…ose for consideration for Assessment year 2008-09, wherein, the Tribunal send these issues to the file of Ld. Assessing Officer. Reliance was placed upon the decision in CIT vs HDFC Bank Ltd. 366 ITR 505 (Bom.) and CIT vs. Reliance Utilities Power Ltd. [2009] 313 ITR 340 (Bom). Assessee also filed paper book running into 6 pages containing balance sheet as on 31/03/2010. On the other hand, the ld. DR, defended the conclusion arrived at in the impugned order by adding that the impugned years may also be sent to the file of the ld. Assessing Officer so that the same can be examined in the light of the aforesaid dec…

Darashaw & Company P.Ltd, Mumbai vs. Addl CIT RG 4(1), Mumbai

The appeal of the Revenue is dismissed

Bench: Shri Joginder Singh & Shri Ashwani Taneja

…et of the assessee as exhibited at page-1 of the paper Book supports the contention of the Counsel that assessee has sufficient own funds to cover up the investments. The Hon’ble Jurisdictional High Court in the case of CIT Vs Reliance Utilities & Power ltd., 313 ITR 340 has held that where both own funds and loan funds are available with the assessee, the presumption is that the investment is made out of own funds. Respectfully following the decision of the Hon’ble Jurisdictional High Court, in our considerate view, the disallowance as computed by the assessee under Rule 8D at Rs. 39,19,175/- should meet the end…

DCIT 4(1), Mumbai vs. Darashaw & Co. P.Ltd, Mumbai

The appeal of the Revenue is dismissed

Bench: Shri Joginder Singh & Shri Ashwani Taneja

…et of the assessee as exhibited at page-1 of the paper Book supports the contention of the Counsel that assessee has sufficient own funds to cover up the investments. The Hon’ble Jurisdictional High Court in the case of CIT Vs Reliance Utilities & Power ltd., 313 ITR 340 has held that where both own funds and loan funds are available with the assessee, the presumption is that the investment is made out of own funds. Respectfully following the decision of the Hon’ble Jurisdictional High Court, in our considerate view, the disallowance as computed by the assessee under Rule 8D at Rs. 39,19,175/- should meet the end…

Silvassa Estates P.Ltd, Mumbai vs. ITO 8(3)(2), Mumbai

In the result, the appeal filed by the assessee company in ITA N0

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7383/Mum/2012 ("नधा"रण वष" / Assessment Year : 2009-10) M/S Silvassa Estates Pvt. The Income Tax Officer, बनाम/ Ltd., Ward 8(3)(2), V. M/S Natvarlal Vepari & Co., Aaykar Bhavan, 2 Nd Floor, Oricon House, 4Th Floor, Maharshi Karve Road, 12, K. Dubash Marg, Mumbai – 400 020. Mumbai – 400 023. "थायी लेखा सं./Pan : Aaacs6303D (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

…e company had net worth of Rs. 1.9 crores as on 1st April, 2008 and the amount of investment in shares were Rs. 1.47 crores. The assessee company relied on the decision of Hon’ble Bombay High Court in the case of CIT v. Reliance Utilities & Power Ltd., (2009) 313 ITR 340(Bom. HC) whereby the Hon’ble Bombay High Court held that if there be interest free funds available to an tax-payer sufficient to meet its investments and at the same time the tax-payer raises an interest bearing loan, it can be presumed that the investments were made from the interest free funds available with the tax-payer. The assessee company…

Ashraj Foods & Beverages P.Ltd, Mumbai vs. ITO 9(1)(1), Mumbai

The appeal of the assessee is allowed

Bench: Shri Joginder Singh & Shri Ashwani Tanejaassessment Year: 2011-12 M/S Ashraj Foods & Beverages Ito-9(1)(1), Pvt. Ltd. Mumbai बनाम/ Shop No.22, Vs. Galaxy Apartments, B.J. Road, Bandra (W), Mumbai-400050 Pan. No. Aaaca5134E ("नधा"रती /Assessee) (राज"व /Revenue )

…ves as on 31/03/2011. It was pleaded that the loan amount was returned back. Reliance was placed upon the decision from Hon’ble jurisdictional High Court in CIT vs HDFC Bank Ltd. (2014) 49 taxman.com 335 (Bom.), CIT vs Reliance utilities and power Ltd. (2009) 313 ITR 340 (Bom.) and American Express International Banking Corporation vs CIT (2002) 258 ITR 601. On the other hand, the ld. DR, Smt. N.V. Nadkarni, defended the addition and the conclusion arrived at in the impugned order. 3 M/s Ashraj Foods & Beverages Pvt. Ltd. 2.1. We have considered the rival submissions and perused the material available on record…