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 367,154 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

Issues it is cited on

Judgments citing CIT v. Torrent Power Ltd.

DCIT, Central Circle - 4(4), Kolkata vs. M/S. Electrosteel Castings Limited., Kolkata

ITA 191/KOL/2018[2012-13]Status: DisposedITAT Kolkata28 Feb 2019AY 2012-13

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…vited to the following judgments:  The Bombay High Court in case of CIT Vs. Reliance Utilities and Power Ltd. [313 ITR 340]  The Bombay High Court in case of CITVs. HDFC Bank Ltd. [366 ITR 505]  The Gujarat High Court in case of CIT Vs, Torrent Power Ltd, [363 ITR 474]  ITAT (Kolkata) in case of Hindustan Motors Ltd. (order enclosed) 2.3.3 Following the aforesaid decisions the ITAT(Kolkata) in assessee's own case (for AY 2008-09, 2009-10, 2010-11) at para 143 held that " We are of the view the submission made with regard to availability of own funds in the light of overall funds position without insisting on…

M/S. Electrosteel Casting Limited., Kolkata vs. DCIT, Cental Circle - 4(4), Kolkata

ITA 139/KOL/2018[2013-14]Status: DisposedITAT Kolkata28 Feb 2019AY 2013-14

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…vited to the following judgments:  The Bombay High Court in case of CIT Vs. Reliance Utilities and Power Ltd. [313 ITR 340]  The Bombay High Court in case of CITVs. HDFC Bank Ltd. [366 ITR 505]  The Gujarat High Court in case of CIT Vs, Torrent Power Ltd, [363 ITR 474]  ITAT (Kolkata) in case of Hindustan Motors Ltd. (order enclosed) 2.3.3 Following the aforesaid decisions the ITAT(Kolkata) in assessee's own case (for AY 2008-09, 2009-10, 2010-11) at para 143 held that " We are of the view the submission made with regard to availability of own funds in the light of overall funds position without insisting on…

M/S. Electrosteel Casting Limited., Kolkata vs. DCIT, Cental Circle - 4(4), Kolkata

ITA 138/KOL/2018[2012-13]Status: DisposedITAT Kolkata28 Feb 2019AY 2012-13

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Dr. P. K. Srihari, CIT-DR & Robin Choudhury, Addl.CIT(DR)
Section 115JSection 143(3)Section 14A

…vited to the following judgments:  The Bombay High Court in case of CIT Vs. Reliance Utilities and Power Ltd. [313 ITR 340]  The Bombay High Court in case of CITVs. HDFC Bank Ltd. [366 ITR 505]  The Gujarat High Court in case of CIT Vs, Torrent Power Ltd, [363 ITR 474]  ITAT (Kolkata) in case of Hindustan Motors Ltd. (order enclosed) 2.3.3 Following the aforesaid decisions the ITAT(Kolkata) in assessee's own case (for AY 2008-09, 2009-10, 2010-11) at para 143 held that " We are of the view the submission made with regard to availability of own funds in the light of overall funds position without insisting on…

M/S.Ecoplast Ltd., Valsad vs. Dy.Cmmissioner of Income Tax, Valsad Renge, Valsad

In the result, appeal of the assessee is partly allowed

ITA 943/AHD/2016[2012-13]Status: DisposedITAT Surat05 Jul 2018AY 2012-13

Bench: Shri C.M.Garg & Shri O.P.Meenaआ.अ.सं./I.T.A No.943/Ahd/2016/Srt िनधा"रण वष"/Assessment Year : 2012-13 Ecoplast Ltd, Vs. The Deputy Commissioner Of S.No.309, National Highway Income Tax, No.8, Water Works Cross Road, Valsad Range, Abrama, Valsad – 396 001. Valsad – 396 001. [Pan: Aaace 5030 H] अपीलाथ" Appellant ""यथ"/Respondent िनधा"रती क" ओर से /Assessee By Shri Tushar P. Hemani – Adv. राज"व क" ओर से /Revenue By Shri J.K.Chandnani – Sr.Dr 12.07.2018 सुनवाई क" तारीख/ Date Of Hearing: 18.09.2018 उ"ोषणा क" तारीख/Pronouncement On आदेश /O R D E R Per O. P. Meena, Accoutant Member: 1. This Appeal Filed By The Assessee Is Directed Against The Order Of Learned Commissioner Of Income Tax (Appeals), Valsad (In Short “The Cit (A)”) Dated 01.03.2016 Pertaining To Assessment Year 2012-13, Which In Turn Has Arisen From The Order Passed By The Deputy Commissioner Of Income Tax, Valsad Circle, Valsad (In Short “The Ao”) Dated 17.02.2015 Under Section 143(3) Of Income Tax Act, 1961 (In Short ‘The Act’).

Section 143(3)Section 36(1)(ii)Section 36(1)(iii)

…Ecoplast Ltd. Vs. DCIT, Valsad Range, Valsad/I.T.A. No.943/AHD/2016/SRT/A.Y.:2012-13 Page 1 of 9 आयकर अपीलीय अिधकरण,सुरत "यायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT "ी सी.एम.गग", "याियक सद"य तथा "ी ओ.पी.मीना, लेखा सद"य के सम" BEFORE SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER आ.अ.सं./I.T.A No.943/AHD/2016/SRT िनधा"रण वष"/Assessment Year : 2012-13 Ecoplast Ltd, Vs. The Deputy Commissioner of S.No.309, National Highway Income Tax, No.8, Water Works Cross Road, Valsad Range, Abrama, Valsad – 396 001. Valsad – 396 001. [PAN: AAACE 5030 H] अपीलाथ" Appellant ""यथ"/Re…