How many judgments cite CIT v. Torrent Power Ltd.?

166 judgments on BharatTax cite CIT v. Torrent Power Ltd. (354 ITR 630), spanning 2014 to 2026.

Which sections of the Income Tax Act does CIT v. Torrent Power Ltd. come up under?

It is most often cited in judgments turning on Section 14A, Section 143(3), Section 250, Section 263, Section 115JB, Section 132(1).

CIT v. Torrent Power Ltd.

354 ITR 630High Court2013#589 most cited

What is CIT v. Torrent Power Ltd. authority for?

If an assessee possesses sufficient interest-free own funds to cover investments yielding exempt income, it is presumed that such investments are made from these own funds, precluding any disallowance of interest expenditure under Section 14A, even when borrowed funds are also available.

166

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2014 to 2026.

Also referred to as

CIT v. Torrent Power Ltd. · 354 ITR 630 · Section 14A · disallowance under Section 14A · interest expenditure · exempt income · sufficient own funds · interest-free funds · presumption of funds · nexus with borrowed funds · mixed funds · Gujarat High Court

Also reported as

44 Taxmann.com 441

Sections most often in play

Section 14A Section 143(3)Section 250 Section 263 Section 115JB Section 132(1)Section 139(1)Section 139(5)

Issues it is cited on

written down value disallowance under section 14a rule of consistency disallowance u/s 14a section 14a section 36 section 37 double taxation previous year section 80 transfer company

Judgments citing CIT v. Torrent Power Ltd.

Assistant Commissioner of Income Tax, Circle-Katni, Katni vs. M/S. Gajraj Mining Pvt. L:Td., Singrauli

In the result, the appeal of the Revenue as well as assessee is dismissed

ITA 27/JAB/2020[2017-18]Status: DisposedITAT Jabalpur30 Nov 2023AY 2017-18

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Sapan Usrethe, AdvFor Respondent: Sh. Shravan Kumar Gotru, CIT(DR)

Section 2Section 36(1)(iii)Section 43B

…ven for the purpose of business. Hence, keeping in view the judgment of Hon'ble Bombay High Court in the case of CIT vs Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom.) and Hon'ble Gujarat High Court decision in the case of CIT vs. Suzlon Energy Ltd. 354 ITR 630 (Guj.) & CIT vs. Torrent Power Ltd. (2014) 363 ITR 474 (Guj.), keeping in view we hold that no disallowance on account of interest is called for. Order of the ld. CIT(A) on this grounds is affirmed. Disallowance of Expenses: 7. The Assessing Officer during the course of assessment proceedings observed that assessee has claimed local shifting ch…

Tata Chemicals Ltd, Mumbai vs. Addl Ciat 2(3), Mumbai

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

ITA 120/MUM/2013[2008-09]Status: DisposedITAT Mumbai10 Nov 2023AY 2008-09

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 144C(5)Section 14ASection 43BSection 80

…ch has been made in tax free securities, has come out of interest free funds available with assessee. In such situation Section 14A of the Act would not be applicable. Similar views have been expressed by other High Courts in CIT Vs. Suzlon Energy Ltd. (2013) 354 ITR 630 (Guj)/ 2013 SCC Online Guj 8613, CIT Vs. Microlabs Ltd. (2016) 383 ITR 490 (Karn)/ 2016 SCC Online Kar 8490 and CIT Vs. Max India Ltd. (2016) 388 ITR 81 (P & H) / 2016 SCC Online P&H 6788 Mr. S Ganesh the learned Senior Counsel while citing these cases from the High Courts have further pointed out that those judgments have attained finality. On r…

Assistant Commissioner of Income Tax, Central Circle-1, Surat vs. J.B. and Brothers Private Limited, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 522/SRT/2023[2016-17]Status: DisposedITAT Surat26 Oct 2023AY 2016-17

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.522/Srt/2023 Assessment Year: (2016-17) (Physical Hearing) Assistant Commissioner Vs. J. B. & Brothers Pvt. Ltd., Tower Fc 3011/3012, 3Rd Floor, Bharat Of Income Tax, Central Circle-1, Surat, Room Diamond Bourse, Bkc, Bandra East, No.504, 5Th Floor, Aaykar Mumbai, Maharashtra – 400004 Bhavan, Majura Gate, Surat-395001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaccj1569J (Assessee) (Respondent) Assessee By Shri Vinod Kumar, Sr. Dr Respondent By Shri Kiran K. Shah, Ca Date Of Hearing 12/10/2023 Date Of Pronouncement 26/10/2023

Section 143(3)Section 14ASection 40A(2)(b)

…ds to the tune of 436 crores. Therefore, it has to be presumed that own funds are used for making investment yielding to exempt income. Further, above proposition he has relied on the jurisdictional High Court in the case of CIT vs. Torrent Power Ltd., [2014] 363 ITR 474 (Guj) and also CIT vs. Hitachi Home & Life Solutions (I) Ltd., [2014] 221 taxman 109 (Guj) directed the Assessing Officer to deleted the addition. We find from the order that the ld.CIT(A) that the assessee is having a owned funds to the extent of 436 crores as on 31.03.2013 investments made by the assessee to generate the exempt income only to t…

Aarti Sponge and Power Ltd., Raipur vs. Assistant Commissioner of Income Tax, -1(1), Raipur

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

ITA 70/RPR/2023[2013-14]Status: DisposedITAT Raipur20 Sept 2023AY 2013-14

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं./Ita No.70/Rpr/2023 िनधा"रण वष" /Assessment Year: 2013-14 V. Aarti Sponge & Power Ltd. Acit -1 (1) Aarti House, Ashoka Ratna Shankar Raipur Nagar, Raipur, Chhattisgarh – 492 001

For Respondent: Sr. D.R

Section 143(3)Section 14ASection 250

…ng decisions:-  CIT vs Gujrat Power Corporation Ltd. (2013) 352 ITR 583 (Guj.).  Director of 1. T. (Intl. Taxation)-II vs.BNP Paribas SA (2013) 214 Taxman 548 (Bom.).  G.D. Metsteel (P) Ltd. vs. ACIT (2011) 64 DTR 161 In CIT vs. Suzlon Energy Ltd. (2013) 354 ITR 630 (Guj), Hon'ble Gujarat High Court observed when interest free own funds of assessee was many times more than investment made and no direct nexus was shown between interest bearing borrowed funds and investment in Indian subsidiaries, no disallowance u/s. 14A can be made out of interest expenditure. 1.5 Presumption that investment came out of int…

Income Tax Officer Ward - 1(1)(1), Surat vs. V R Surat Pvt. Ltd. Formerly Known As M/S Dhanlaxmi Infrastructure Pvt. Ltd., Surat

In the result, cross objection filed by the assessee (in CO

ITA 329/SRT/2022[2015-16]Status: DisposedITAT Surat27 Jul 2023AY 2015-16

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.329/Srt/2022 Assessment Year: (2015-16) (Physical Hearing) Income Tax Officer, Ward- Vs. V R Surat Pvt. Ltd. 1(1)(1), Surat, Room No.111, 1St (Formerly Known As M/S. Floor, Aayakar Bhawan, Majura Dhanlaxmi Infrastructure Pvt. Gate, Surat-395001 Ltd.,).F. No.29, Virtuous Retail, Surat Dumas, Nr. Dumas Resort, Magdalla, Surat– 395007 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaccd5578R (Assessee) (Respondent) ""या"ेप. सं./Co No.16/Srt/2022 [Arising Out Of Ita No.329/Srt/2022] Assessment Year: (2015-16)

Section 14Section 143(3)

…ing the financial year 2011-12 (AY 2012-13) were sufficient to meet the amount of investment shown in the financial statement of the concerned year. Considering the decision of the Jurisdictional High Court in the case of CIT v/s. Torrent Power Limited (2014) 363 ITR 474 (Guj. HC), wherein when the assessee had surplus funds for making investment, provisions of section 14A of the Act cannot be invoked. Further, Bombay High Court in the case of Reliance Utilities & Power Ltd. 313 ITR 340 (Bom.), wherein it was held that if there are interest free funds available to an assessee sufficient to meet its investments an…

Dcdc Health Services Private Limited, New Delhi vs. ACIT, Circle-7(1), New Delhi

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

ITA 9525/DEL/2019[2016-17]Status: DisposedITAT Delhi10 Jul 2023AY 2016-17

Section 143(3)Section 14ASection 41

…ed in 410 ITR 466 (SC) • PCIT Vs. Sintex Industries Ltd. reported in 403 ITR 418 (Guj) Revenue's SLP was dismissed [255 Taxman171 (SC) ] • South Indian Bank Ltd Vs CIT. reported in 438 ITR 1 (SC) 130 taxmann.com 178(SC) • CIT VS Suzlon Energy Ltd. reported in 354 ITR 630 (Guj.) • CIT Vs Microlabs Ltd. reported in 383 ITR 490 (Kar) • CIT Vs Max India Ltd. reported in 388 ITR 81 (P&H)” 9. Further it is found from the record that for the Financial Year 2015-16 the total amount of interest paid/payable on cash credit facility and other was Rs. 19,81,563/- and total amount of interest income earned by the assessee…

Truworth Infotech Private Limited, Jaipur vs. Income Tax Officer, Ward-2(2), Jaipur

In the result, the appeal of the assessee is allowed

ITA 79/JPR/2023[2014-15]Status: DisposedITAT Jaipur04 Jul 2023AY 2014-15

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri S.R. Sharma, CA &For Respondent: Mrs. Monisha Choudhary, Addl. CIT-DR

Section 115JSection 143(2)Section 143(3)Section 14A

…using borrowed funds entirely for business purposes and in absence of any finding that any expenditure by way of interest was incurred in respect of investments disallowance u/s 14A of 1.T. Act.61 is not justified. In case of CIT Vs. Sazlon Energy Ltd. (2013) 354 ITR 630 (Guj). The court held that dividend income which was tax free but such dividends were earned from investments made out of interest free funds so that there could be no disallowance u/s 14A of I. T. Act, 1961. In view of these judicial pronouncements it is submitted that as the investment made by assessee company from its own interest free funds s…

D.C.I.T., CC - 4(4), Kolkata vs. Electrosteel Casting Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 485/KOL/2022[2016-2017]Status: DisposedITAT Kolkata29 Dec 2022AY 2016-2017

Bench: Shri Rajpal Yadav, Vice- & Shri Girish Agrawalassessment Years: 2016-17 Deputy Commissioner Of M/S. Electrosteel Casting Ltd. Income-Tax, Central G.K. Tower Vs. Circle-4(4), Kolkata. 19, Camac Street Kolkata -700017 (Pan: Aaace4975B) (Appellant) (Respondent)

Section 143(3)Section 14ASection 43(1)

…894.02 lakhs and exempt income yielding investment of Rs.13,650.89 lakhs; respectively. Various judicial precedents, i.e. CIT vs. Reliance Utilities and Power Ltd. [313 ITR 340 (Bom)], CIT vs. HDFC Bank Ltd. [366 ITR 505 (Bom)] and CIT vs. Torrent Power Ltd. [363 ITR 474 (Guj.)] hold that impugned proportionate interest expenses disallowance does not apply in the case of non-interest bearing funds turning out to be more than exempt investments. We decline Revenue's instant second argument as well. 7.The Revenue's third argument qua the instant issue is that the CIT(A) erred in law and on facts in holding that onl…

Wns Global Services P. Ltd., Mumbai vs. Addl/Jt/Dy/Asstt/CIT/ITO, Nationa Faceless Assessment Centre, Dilhi

In the result, appeal filed by the assessee is allowed

ITA 1259/MUM/2021[2016-17]Status: DisposedITAT Mumbai09 Dec 2022AY 2016-17

Bench: Shri Vikas Awasthy & Shri Gagan Goyalwns Global Services Pvt. Ltd., Pl 10, Gate No.4, Godrej & Boyce Complex, Pirojshanagar, Lbs Marg, Vikhroli (West), Mumbai-400079. Pan: Aaacw2598L ...... Appellant Vs.. Addl./Jt/Dy./Acit/Ito/Nfac, Room No. 455, Circle-14(3)(1), Mumbai. ..... Respondent Appellant/Assessee By : Sh. Porus Kaka, Sr. Adv. & Sh. Manish Kant Respondent/Revenue By : Sh. Jasdeep Singh, Cit-Dr

For Appellant: Sh. Porus Kaka, Sr. Adv. &For Respondent: Sh. Jasdeep Singh, CIT-DR

Section 143(3)Section 144C(13)Section 92B

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI GAGAN GOYAL, ACCOUNTANT MEMBER WNS Global Services Pvt. Ltd., PL 10, Gate No.4, Godrej & Boyce Complex, Pirojshanagar, LBS Marg, Vikhroli (West), Mumbai-400079. PAN: AAACW2598L ...... Appellant Vs.. Addl./JT/Dy./ACIT/ITO/NFAC, Room No. 455, Circle-14(3)(1), Mumbai. ..... Respondent Appellant/Assessee by : Sh. Porus Kaka, Sr. Adv. & Sh. Manish Kant Respondent/Revenue by : Sh. Jasdeep Singh, CIT-DR Date of hearing : 29/09/2022 Date of pronouncement : 09/12/2022 ORDER PER GAGAN GOYAL, A.M: This appe…

The DCIT, Circle-1(1)(2), Ahmedabad vs. M/S. Clp India Pvt. Ltd., Ahmedabad

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

ITA 290/AHD/2020[2015-16]Status: DisposedITAT Ahmedabad04 Nov 2022AY 2015-16

For Appellant: Shri Biren Shah, A.RFor Respondent: Shri James Kurian, CIT-DR

Section 115JSection 143(3)Section 14A

…ernal interest free funds for making investments during the assessment year 2015-16. Therefore the assessee was not liable to make any disallowance u/s. 14A read with Rule 8D. The assessee further submitted various case laws namely CIT vs. Torrent Power Ltd. (363 ITR 474) (Guj.); CIT vs. UTI Bank Ltd. (215 Taxmann.com 8) (Guj.) and CIT vs. Hitachi Home & Life Solutions (I) Ltd. (221 Taxmann.com 109) (Guj.). The assessee further submitted it has not earned any dividend income during the financial year and no disallowance should be made. 2.3. The assessee’s explanation was not accepted by the Assessing Officer. As…

Asit C. Mehta Investment Intermediates Limited, Mumbai vs. DCIT 4(1)(1), Mumbai

In the result, the appeal filed by the Appellant for the Assessment Year 2012-13 (ITA No

ITA 3550/MUM/2016[2012-13]Status: DisposedITAT Mumbai26 Sept 2022AY 2012-13

For Appellant: Shri Yogesh Thar/For Respondent: Shri Achal Sharma

Section 143(3)Section 14ASection 154Section 37

…2018] and the judgment of the Hon‟ble Bombay High Court in the case of Nirved Traders (P.) Ltd. v. Dy. CIT [IT Appeal No. 149 of 2017, dated 23.4.2019. 18. In view of the judgment of the Hon‟ble Gujarat High Court in the case of CIT Vs. Suzlon Energy Limited: 354 ITR 630 (Gujarat) [03-04-2013] cited by the Learned Authorised Representative for Appellant, we find merit in the contention advanced by the Learned Authorised Representative for Appellant that investment made in foreign subsidiary should be excluded while computing disallowance under Section 14A read with Rule 8D of the Rules since the dividend income o…

Khedut Cold Storage Co., Rajkot vs. The PCIT, Rajkot-1, Rajkot

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

ITA 91/RJT/2022[2017-18]Status: DisposedITAT Rajkot21 Sept 2022AY 2017-18

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyalआयकर अपील सं./Ita No. 91/Rjt/2022 िनधा"रण वष"/Asstt. Years: 2017-2018 M/S. Khedut Cold Storage Co., The Principal Commissioner Of Head Off At Officer No11, Vs. Income Tax, Jitendra Complex, Rajkot-1, Kalwa Chock, Rajkot. Junagadh-362001. Pan: Aanfk8513F

For Appellant: Shri Mehul Ranpura, A.RFor Respondent: Shri Sanjeev Jain, CIT.D.R

Section 142(1)Section 143(3)Section 263

…owance of interest expenses on account of diversion of interest-bearing fund A.Y. 2017-18 7 does not arise. In holding so we draw support and guidance from the judgment of Hon’ble jurisdictional High court in the case of CIT vs. Torrent Power Ltd reported in 363 ITR 474 where it was held as under: It was noted from records that the assessee was having share holding funds to the extent of 2607.18 crores and the investment made by it was to the extent of`Rs.195.10 crores. In other words, the assessee had sufficient funds for making the investments and it had not used the borrowed funds for such purpose. This aspec…

Ananya Finance for Inclusive Growth Pvt.Ltd., Ahmedabad vs. Dy.Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad

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

ITA 959/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad25 Aug 2022AY 2011-12

Bench: Smt.Annapurna Gupta & Shri Mahavir Prasadassessment Year : 2011-12 Ananya Finance For Inclusive The Dcit, Cir.1(1)(1) Growth P Ltd. Ambawadi 401, Shaan, Op: M.J. Library Ahmedabad 380015. Ashram Road Ahmedabad 380 009. Pan : Aahca 8023 D

For Respondent: Shri Vijay Kumar Jaiswal, CIT-DR

Section 14ASection 250Section 250(6)

…ent interest free funds, the disallowance under section 14A was unwarranted. Reliance was placed on the following case laws: > CIT vs. Reliance Industries Ltd. - 410 ITR 466 (SC) > CIT vs. Torrent Power Ltd. - 363 ITR 474 (Guj.) > CIT vs. Suzlon Energy Ltd. - 354 ITR 630 (Guj) > CIT vs. Gujarat Power Corporation Ltd. - 352 ITR 583 (Guj) > CIT vs. Reliance Utilities & Power Ltd. - 313 ITR 340 (Bom) > Munjal Sales Corporation vs. CIT - 298 ITR 298 (SC) 28 The ld.counsel for the assessee, accordingly contended that no disallowance is called for in the circumstances. 39. The ld.DR was unable to controvert either fac…

JCIT (OSD), Circle 14, Pune vs. Kumar Builder Mumbai Realty Private Limited, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 22/PUN/2020[2014-15]Status: DisposedITAT Pune22 Aug 2022AY 2014-15

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Abhinay Kumbhar &

Section 143(3)Section 14ASection 36(1)(iii)Section 43B

…rities, has come out of interest free funds available with assessee. In such situation section 14A of the Act would not be applicable. Similar views have been expressed by other High Courts in CIT v. Suzlon Energy Ltd. [2013] 33 taxmann.com 157/215 Taxman 272/354 ITR 630 (Guj.), CIT v. Microlabs Ltd. [2017] 79 taxmann.com 365/[2016] 383 ITR 490 (Kar.) and CIT v. Max India Ltd. [2016] 75 taxmann.com 268/388 ITR 81 (Punj. & Har.). Mr. S Ganesh the learned Senior Counsel while citing these cases from the High Courts have further pointed out that those judgments have attained finality. On reading of these judgments,…

JCIT (OSD), Circle 14, Pune vs. Kumar Urban Development Private Limited, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 21/PUN/2020[2014-15]Status: DisposedITAT Pune22 Aug 2022AY 2014-15

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Abhinay Kumbhar &

Section 143(3)Section 14ASection 36(1)(iii)Section 43B

JCIT (OSD), Circle 14, Pune vs. Kumar Urban Development Private Limited, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 20/PUN/2020[2013-14]Status: DisposedITAT Pune22 Aug 2022AY 2013-14

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Abhinay Kumbhar &

Section 143(3)Section 14ASection 36(1)(iii)Section 43B

The DCIT, Circle-1(1)(1), Ahmedabad vs. M/S. Adani Enterprise Ltd, Ahmedabad

In the result appeal of the Revenue is hereby partly allowed

ITA 523/AHD/2020[2016-17]Status: DisposedITAT Ahmedabad17 Aug 2022AY 2016-17

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed

For Respondent: Shri Vartik Choksi, A.R

Section 1Section 143(3)

…funds then the power of presumption would be that the investments have been made out ofinterest free funds. In holding so we draw support and guidance from the judgment of Hon’ble jurisdictional High court in the case of CIT vs. Torrent Power Ltd reported in 363 ITR 474 where it was held as under: It was noted from records that the assessee was having share holding funds to the extent of 2607.18 crores and the investment made by it was to the extent of`Rs.195.10 crores. In other words, the assessee had sufficient funds for making the investments and it had not used the borrowed funds for such purpose. This aspec…