How many judgments cite East India Pharmaceutical Works Ltd. v. CIT?

146 judgments on BharatTax cite East India Pharmaceutical Works Ltd. v. CIT (224 ITR 627), spanning 2015 to 2026.

Which sections of the Income Tax Act does East India Pharmaceutical Works Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 143(1), Section 143(3), Section 1961, Section 36(1)(iii), Section 144C(1), Section 144C(5).

East India Pharmaceutical Works Ltd. v. CIT

224 ITR 627Supreme Court of India1997#694 most cited

What is East India Pharmaceutical Works Ltd. v. CIT authority for?

Where an assessee has mixed funds (both interest-bearing and interest-free funds) and makes an interest-free advance or investment, it is presumed that the interest-free funds were utilized first if they are sufficient to cover such advances or investments. This prevents disallowance of interest on borrowed funds under Section 36(1)(iii).

146

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

East India Pharmaceutical Works Ltd v CIT · 224 ITR 627 · Section 36(1)(iii) · interest disallowance · mixed fund theory · interest free advances · borrowed funds · commercial expediency · presumption of utilization · interest on borrowed capital

Also reported as

91 Taxmann 185

Sections most often in play

Section 143(1)Section 143(3)Section 1961 Section 36(1)(iii)Section 144C(1)Section 144C(5)Section 194J Section 195

Read the full judgment

Issues it is cited on

interest free advances section 36(1)(iii)advance tax commercial expediency section 32 section 36(1)section 36 section 40(a)capital expenditure section 37(1)section 40 section 37

Judgments citing East India Pharmaceutical Works Ltd. v. CIT

DCIT (Ltu)1, Mumbai vs. Sterlite Technologies Ltd

ITA 1044/MUM/2015[2011-12]Status: DisposedITAT Mumbai22 Sept 2017AY 2011-12

Bench: Shri Shamim Yahya, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 1044/Mum/2015, (निर्धारणवर्ा / Assessment Year: 2009-10)

For Appellant: Sh. V. JustinFor Respondent: Sh. B. V. Jhaveri

Section 115JSection 14A

…tax free securities. Consequently, the !TAT rightly held that there was no basis for deeming that the assessee had used borrowed funds for Investment in tax free securities. (Reliance Utilities and Power Ltd 313 ITR 340 (Born), East India Pharmaceutical Works 224 ITR 627 (SC) & Woolcombers 134 ITR 219 (Cal) followed)." 7.9 The appellant has also referred and relied upon the appellant's decision in its own case for AY 2007-08, 08-09 & 09-10. The copy of the appellate order for AY 2009-10 dated 2.12.2013 is filed wherein Ground No.7 and 8, the issue of disallowance u/s 14A of the I.T. Act, read with Rule 8D have be…

DCIT, Circle-4, Kolkata vs. M/S. Jay Shree Tea & Industries Ltd., Kolkata

In the result, Revenue’s appeal is partly allowed

ITA 2009/KOL/2014[2010-2011]Status: DisposedITAT Kolkata02 Jun 2017AY 2010-2011

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 143(3)Section 14A

…owing decisions:- ITA No.2009-2010/Kol/2014 A.Ys. 2010-11 & 201-12 DCIT Cir-4 Kol. Vs. M/s Jay Shree Tea & Inds. Ltd. Page 5 Woolcombers of India Ltd. –vs.- CIT reported in 134 ITR 219 (Cal.) East India Pharmaceuticals Works Ltd. –vs.- CIT reported in (1997) 224 ITR 627 (SC). 6.2. We find that though the decision in the case of Reliance Utilities power Ltd. was rendered in the context of allowability of interest u/s 36(1)(iii) of the Act, the analogy drawn thereon would apply with equal force for adjudicating the issue of disallowance u/s 14A of the Act. We also find that the Hon’ble Bombay High Court in the cas…

Inducto Steel Ltd, Mumbai vs. ACIT Cen Cir 38, Mumbai

The appeal of the assessee is partly allowed

ITA 2555/MUM/2015[2006-07]Status: DisposedITAT Mumbai26 May 2017AY 2006-07

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2006-07 Inducto Steel Ltd. Acit, 156, Maker Chamber Vi, Cc-38, बनाम/ 220, Jamnalal Bajaj Marg, Aayakar Bhavan, Vs. Nariman Point, M.K. Road, Mumbai-400021 Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aaaci1045E

Section 14A

…s presumption is established considering the finding of fact both by the CIT(A) and Tribunal—Woolcombers of India Ltd. vs. CIT (1981) 23 CTR (Cal) 204 : (1982) 134 ITR 219 (Cal) and East India Pharmaceutical Works Ltd. vs. CIT (1997) 139 CTR (SC) 372 : (1997) 224 ITR 627 (SC) relied on.” 2.26. Likewise, Hon'ble jurisdictional High Court in HDFC Bank Ltd. (supra) also held as under:- “Section 14A of the Act would be inapplicable. However this was also disregarded by the impugned order on the ground that this Court did not entertain an appeal of the Revenue from the order of the Tribunal holding that Section 14A…

Hariyana Ship Breakers Ltd, Mumbai vs. ACIT CC 38, Mumbai

Appeal stands partly allowed

ITA 2556/MUM/2015[2007-08]Status: DisposedITAT Mumbai19 May 2017AY 2007-08

Bench: Shri Joginder Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No.2556/Mum/2015 (िनधा"रण वष" / Assessment Year: 2007-08) Hariyana Ship Breakers Assistant Commissioner Of Limited Income Tax बनाम/ 156, Maker Chambers Vi Central Circle 38 220, Jamanalal Bajaj Marg, Aaykar Bhawan Vs. Nariman Point M.K.Marg Mumbai – 400 021 Mumbai – 400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaach-2476-E (अपीलाथ" /Appellant) (""थ" / Respondent) :

For Appellant: Reepal G. Traishawala,Ld. ARFor Respondent: Riju Jaikaran, Ld. DR

Section 10Section 115JSection 143(3)Section 14ASection 254

…he assessee had raised a loan it can be 5 Hariyana Ship Breakers Limited Assessment Year-2007-08 presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

Jaguar International Ltd., Gurgaon vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 4371/DEL/2016[2012-13]Status: DisposedITAT Delhi27 Apr 2017AY 2012-13

Bench: Shri N. K. Saini

For Appellant: Ms. Rano Jain, Adv. &For Respondent: Sh. Rajesh Kumar, Sr. DR

Section 36(1)(iii)

…fficient to meet its investments and_ at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free' funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

DCIT, New Delhi vs. M/S. Escort Heart Institute & Research Centre Ltd., New Delhi

In the result, the appeal of the Revenue stands dismissed

ITA 6674/DEL/2013[2008-09]Status: DisposedITAT Delhi18 Apr 2017AY 2008-09

Bench: Shri R.S. Syal & Ms Suchitra Kambleassessment Year : 2008-09 Dcit, Vs. Escort Heart Institute & Research Circle-11(1), Centre Ltd., New Delhi. Okhla Road, New Delhi. Pan: Aaace8731F Assessee By : Shri R.M. Mehta, Advocate Deptt. By : Shri U.C. Dubey, Sr. Dr

For Appellant: Shri R.M. Mehta, Advocate

Section 36(1)(iii)

…nd at the same time the assessee had raised a loan, it can be presumed that the investments were from the interest free funds available”. Thereafter, the judgment of the Hon’ble Supreme Court in the case of East India Pharmaceutical Works Ltd. Vs. CIT (1997) 224 ITR 627 (SC) and also the judgment of the Hon’ble Calcutta High Court in Woolcombers of India Ltd. Vs. CIT (1981) 134 ITR 219 (Cal) were considered. It was finally concluded that : “The principle, therefore, would be that if there are funds available both interest free and overdraft and/or loans taken, then a presumption would arise that the investmen…

Shanti Lal Bhandari, Jaipur vs. ITO, Jaipur

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

ITA 73/JPR/2016[2012-13]Status: DisposedITAT Jaipur17 Apr 2017AY 2012-13

For Appellant: Shri B.P. Moondra (CA)For Respondent: Shri R.A. Verma (Addl.CIT)

Section 145(3)Section 41(1)

…sufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT [1997] 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. [1982] 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

Aditya Birla Finance Ltd, Mumbai vs. Addl CIT RG 2(1), Mumbai

Appeal of the assessee is partly allowed for statistical purposes

ITA 5732/MUM/2011[2008-09]Status: DisposedITAT Mumbai12 Apr 2017AY 2008-09

Bench: Shri Joginder Singh & Shri Rajendraassessment Year-2008-09 M/S Aditya Birla Finance Acit-2(1), Limited (One Indiabulls R. No.575, 5Th Floor, बनाम/ Center, Tower-1, 18Th Floor, Aayakar Bhavan, Vs. Jupiter Mill Compound, 841, M.K. Road, Senapati Bapat Marg, Mumbai-400020 Elphinstone Road, Mumbai-400012 Pan No.Aabcb5769M ("नधा"रती /Assessee) (राज"व /Revenue) Assessment Year-2008-09 Acit-2(1), M/S Aditya Birla Finance R. No.575, 5Th Floor, Limited (One Indiabulls बनाम/ Aayakar Bhavan, Center, Tower-1, 18Th Floor, Vs. M.K. Road, Jupiter Mill Compound, 841, Mumbai-400020 Senapati Bapat Marg, Elphinstone Road, Mumbai-400012 Pan No. Aabcb5769M (राज"व /Revenue) ("नधा"रती /Assessee) M/S Aditya Birla Finance Ltd.

Section 14ASection 260

…s presumption is established considering the finding of fact both by the CIT(A) and Tribunal—Woolcombers of India Ltd. vs. CIT (1981) 23 CTR (Cal) 204 : (1982) 134 ITR 219 (Cal) and East India Pharmaceutical Works Ltd. vs. CIT (1997) 139 CTR (SC) 372 : (1997) 224 ITR 627 (SC) relied on.” 3.24 Likewise, Hon'ble jurisdictional High Court in HDFC Bank Ltd. (supra) also held as under:- “Section 14A of the Act would be inapplicable. However this was also disregarded by the impugned order on the ground that this Court did not entertain an appeal of the Revenue from the order of the Tribunal holding that Section 14A o…

Strides Arcolab Ltd, Navi Mumbai vs. ACIT 10(3), Mumbai

ITA 8540/MUM/2010[2006-07]Status: DisposedITAT Mumbai31 Mar 2017AY 2006-07

Bench: Shri G.S. Pannu, Am & Shri Ravish Sood, Jm आयकर अपील सं./I.T.A. No. 8540/Mum/2010 (निर्धारण वर्ा / Assessment Year: 2006-07) Strides Shasun Limited The Asst. Commissioner Of [Formerly Known As Strides Income Tax Circle-10(3) Acrolab Limited], Mumbai बिधम/ 201 Devarata, Vs. Sector 17, Vashi, Navi Mumbai – 400 703. स्थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadcs8104P (Appellant) : ( Respondent)

For Appellant: Shri. Nitesh JoshiFor Respondent: Shri. N.K Chand, CIT

Section 10Section 115JSection 143(1)Section 143(2)Section 143(3)Section 143(3)(ii)Section 144C(5)Section 14ASection 57Section 92C

…P a g e | 1 IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI G.S. PANNU, AM AND SHRI RAVISH SOOD, JM आयकर अपील सं./I.T.A. No. 8540/Mum/2010 (निर्धारण वर्ा / Assessment Year: 2006-07) Strides Shasun Limited The Asst. Commissioner of [Formerly Known as Strides Income Tax Circle-10(3) Acrolab Limited], Mumbai बिधम/ 201 Devarata, Vs. Sector 17, Vashi, Navi Mumbai – 400 703. स्थायीलेखासं./जीआइआरसं./PAN/GIR No. AADCS8104P (Appellant) : ( Respondent) अपीलाथी की ओर से/ Appellant by : Shri. Nitesh Joshi प्रत्यथी की ओर से/Respondent by : Shri. N.K Chand, CIT सुनवाई की तारीख/ : 20/01/2017 Date of Heari…

Vineet Mohan Gupta, Bhubaneswar vs. DCIT, CC-Xix, Kolkata

In the result, the appeal of the assessee is dismissed

ITA 374/KOL/2014[2011-12]Status: DisposedITAT Kolkata06 Feb 2017AY 2011-12

Bench: : Shri Partha Sarathi Chaudhury & Shri Dr. Arjun Lal Saini

For Appellant: Shri Akkal Dudhuewala, ld.ARFor Respondent: Md. Ghyas Uddin, JCIT, ld.DR

Section 143(2)

…purposes, then any interest corresponding to such loans/investments is allowable as being incurred for business purposes. The ld.AR of the assessee put forth the decision of the Hon’ble Supreme Court in the case of East India Pharmaceutical Works reported in 224 ITR 627 (SC), the ratio laid down therein and held that if the assessee has sufficient interest free funds available to meet the cost of interest free advances and investments and at the same time the assessee had also raised interest bearing loans then it can be safely presumed that the advances were from the interest free funds available. In support of…

DCIT, Cir-4, Kolkata vs. M/S Jay Shree Tea & Industries Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 675/KOL/2014[2009-2010]Status: DisposedITAT Kolkata03 Feb 2017AY 2009-2010

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

Section 14A

…e out of the interest free funds available with the assessee. 6.1. Similar views were expressed in the following decisions:- Woolcombers of India Ltd. –vs.- CIT reported in 134 ITR 219 (Cal.) East India Pharmaceuticals Works Ltd. –vs.- CIT reported in (1997) 224 ITR 627 (SC). 6.2. We find that though the decision in the case of Reliance Utilities power Ltd. was rendered in the context of allowability of interest u/s 36(1)(iii) of the Act, the analogy drawn thereon would apply with equal force for adjudicating the issue of disallowance u/s 14A of the Act. We also find that the Hon’ble Bombay High Court in the ca…

D.C.I.T., Circle-4, Kolkata vs. M/S the Scottish Assam (India) Ltd., Kolkata

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

ITA 2725/KOL/2013[2009-2010]Status: DisposedITAT Kolkata25 Nov 2016AY 2009-2010

Bench: : Shri M.Balaganesh & Shri S.S. Viswanethra Ravi

Section 143(2)Section 14ASection 40

…Delhi d. Thacker and Co Ltd vs ITO referred in 290 ITR (A.T) 0154, ITAT Delhi e. CIT vs Hero Cycles 323 ITR 158 (PH) f. Reliance Utilities & Power Ltd (ITA No 1398 of 2008 order dated 09.01.2009 of Hon'ble Bombay High Court) g. East India Pharmaceutical Works 224 ITR 627. h. Assessee's own case (Reported in ITAT No.2638/Kol/2004,dt.28/07/2005 for the assessment Year 2001-02. i. REI Agro Ltd [ITA No 1331/Kol/2011 & ITA No 1423/Kol/2011 dated 19/06/2013] 4.4 The Ld AR further argued that the expenses incurred can be disallowed only to the extent the same are relatable to the earning of exempt Income. The Ld AR arg…

DCIT Cen Cir 13, Mumbai vs. Parinee Realty P. Ltd, Mumbai

In the result, both the appeals of the Revenue and Cross Objections are dismissed

ITA 6215/MUM/2014[2010-11]Status: DisposedITAT Mumbai09 Nov 2016AY 2010-11

Bench: Shri R.C.Sharma, Am & Shri Pawan Singh, Jm

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI PAWAN SINGH, JM ITA No.6214/Mum/2014 & 6215/MUM/2014 (Assessment Year :2010-11) ACIT-CC-13, Mumbai Vs. M/s. Parinee Realty Pvt. Ltd., (Formerly known as Greenbird Developers Pvt. Ltd., Plot No.38 & 39, Crescenzo, G-Block, Bandra Kurla Complex, Behind MCA, Bandra (E), Mumbai PAN/GIR No. AABCG5484E Appellant) .. Respondent) CO No.137/Mum/2015 & 138/MUM/2015 (Assessment Year :2010-11) M/s. Parinee Realty Pvt. Vs. DCIT – CC 2(3), Mumbai Ltd., (Old DCIT – CC-13), Mumbai (Formerly known as Greenbird Developers Pvt. Ltd., Plot No.…

DCIT Cen Cir 13, Mumbai vs. Parinee Realty P. Ltd, Mumbai

In the result, both the appeals of the Revenue and Cross Objections are dismissed

ITA 6214/MUM/2014[2010-11]Status: DisposedITAT Mumbai09 Nov 2016AY 2010-11

Bench: Shri R.C.Sharma, Am & Shri Pawan Singh, Jm

Section 143(3)

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR

Section 143Section 143(3)Section 144CSection 92C

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ―I-2‖: NEW DELHI BEFORE SH. I. C. SUDHIR, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Hero MotoCorp Limited, JCIT, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi PAN: AAACH0812J (Appellant) (Respondent) DCIT, M/s. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) DCIT, M/s. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Page 2 of 484 New Delhi Vs. Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) M/s. Hero Moto Corp. D…

Radicura Pharmaceuticals Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal is partly allowed

ITA 5980/DEL/2014[2011-12]Status: DisposedITAT Delhi14 Oct 2016AY 2011-12

Bench: Shri R.S. Syalassessment Year : 2011-12

For Appellant: Shri Sanjay Jain, CAFor Respondent: Shri N.K. Bansal, Sr. DR

Section 14A

…e from interest free funds and, consequently, no disallowance of interest should be made. This decision was rendered by the Hon’ble Bombay High Court after following the judgment of the Hon’ble Summit Court in East India Pharmaceutical Works vs. CIT (1997) 224 ITR 627 (SC). The 3 Hon’ble Gujarat High Court in Principal CIT vs. India Gelatine and Chemicals Ltd. (2015) 376 ITR 353 (Guj) has followed this principle in the context of section 14A by holding that no disallowance of interest u/s 14A should be made where investments made by the assessee in shares and mutual funds are out of interest free funds. As th…

Control Risks India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 979/DEL/2015[2010-11]Status: DisposedITAT Delhi27 Sept 2016AY 2010-11

Bench: Smt Diva Singh & Sh.Prashant Maharishi

Section 143(3)Section 144CSection 92C

…cases, the taxpayer had taken loan/ borrowals for payment of the taxes and the issue before the courts was whether interest paid on such loans is an allowable deduction or not. In the case of East India Pharmaceutical Works Ltd. V. CIT [1997] 91 Taxman 185 / 224 ITR 627 (SC), it was held by the Hon'ble Supreme Court that interest that is paid by the taxpayer on any sum borrowed by him for payment of income -tax is not deductible from his net income. In the case of Aruna Mills Limited vs. CIT [1957] 31 ITR 153 (Bom), the Bombay High Court observed that it was difficult to understand how, when a business man commi…

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)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI J.S. REDDY, ACCOUNTANT MEMBER I.T.A. No. 2487/Del/2016 A.Y. : 2010-11 M/s Indian Farmers Fertilizers VS. PR. CIT, DELHI-11 ROOM NO. 2402, 24TH FLOOR, Cooperative Ltd., IFFCO Sadan, C-1, District Centre, E-2, CIVIC CENTRE, Saket Place, NEW DELHI New Delhi – 110 017 (PAN: AAAAI0050M (APPELLANT) (RESPONDENT) Assessee by : Sh. Vijay Ranjan, Adv. Sh. Vartik R. Choksi, CA & Ms. IRA R. Kapoor, CA, Sh. Atul Chabbra, CA Department by : Sh. A.K. Saroha, CIT(DR) Date of Hearing : 31-08-2016 Date of Order : 19…

Jhp Securities P.Ltd, Mumbai vs. Asst CIT RG 4(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 192/MUM/2015[2010-11]Status: DisposedITAT Mumbai18 Aug 2016AY 2010-11

Bench: Sri Mahavir Singh & Sri Manoj Kumar Aggarwaljhp Securities Ltd., Dev Neo Vikram, Vs. The Asst. Commissioner Of Income “B”Wing, 2Nd Floor, Sahakar Nagar Tax, Range-4 (3), Aayakar Bhavan, 6Th Floor, M. K. Marg, Mumbai 20 Chs, Above Audi Car Showroom, New Link Road, Andheri (West), Mumbai 53 Pan:Aaacj 2847 H Appellant .. Respondent .. Appellant By Sri Dev Datta Mainkar, Ar Respondent By .. Sri Durga Dutt, Sr. Dr Date Of Hearing .. 18-08-16 Date Of Pronouncement .. 18-08-16 O R D E R Per Mahavir Singh, Jm: This Appeal By The Assessee Is Arising Out Of The Order Of The Cit (A)-8, Mumbai In Appeal No.Cit (A)-8/Cir.4/165/2013-14 Dated 17-10-2014. Assessment Was Framed By The Acit- 4(3), Mumbai For The Assessment Year 2010-11 Vide His Order U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter “The Act”) Dated 22-03-2013. 2. The First Issue In This Appeal Of The Assessee Is Against The Order Of The Cit (A) Confirming The Disallowance Of Expenses Relatable To Exempted Income By Invoking The Provisions Of Section 14A Of The Act Read With Rule 8D (2) (Ii) Of The Income Tax Rules, 1962 (Hereinafter “The Rules”) At Rs.10,49,330/-.

Section 143(3)Section 14A

…ufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest- free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…

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

…same time the assessee had Page 9 of 70 Atlas Cycles (Haryana) Sonepat raised a loan it can be presumed that the investments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft…