Estates (P.) Ltd. v. Assistant Commissioner of Income-tax, Central Circle IV, Kolkata

147 TTJ 649Income Tax Appellate Tribunal2012#10181 most cited

What is Estates (P.) Ltd. v. Assistant Commissioner of Income-tax, Central Circle IV, Kolkata authority for?

Disallowance of interest expenses on loans given to sister concerns is not permissible if the assessee has sufficient interest-free funds available to meet its investments. Such investments are presumed to be made from these available interest-free funds.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2019.

Also referred to as

Estates (P.) Ltd. v. Assistant Commissioner of Income-tax · 147 TTJ 649 · interest free loans · sister concerns · commercial expediency · S.A. Builders Ltd. · Reliance Utilities & Powers Ltd. · disallowance of interest · interest free funds available

Judgments citing Estates (P.) Ltd. v. Assistant Commissioner of Income-tax, Central Circle IV, Kolkata

ACIT, Circle - 35, Kolkata vs. M/S. Kwality Steel Processors, Kolkata

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

ITA 1411/KOL/2017[2014-15]Status: DisposedITAT Kolkata03 May 2019AY 2014-15

Bench: Sh. J.Sudhakar Reddy & Sh.S.S.Viswanethra Ravivs M/S. Kwality Steel Processors, Acit, Circle-35, 4, India Exchange Place, 2Nd Floor, Kolkata-700107. Kolkata-700001. Pan-Aaefk2197G (Appellant) (Respondent) Appellant By Sh.C.J.Singh, Jcit Sr.Dr Respondent By Sh. Miraj D.Shah, Fca Date Of Hearing 05.02.2019 Date Of Pronouncement 03.05.2019

Section 36(1)

…h the said both concerns on account of pure commercial expediency and the following the principal laid down by the Hon’ble Supreme Court in the case of S.A. Builders Ltd. [2007] 288 ITR 01 (SC) and also in the case of S.P. Jaiswal Estates Pvt.Ltd. reported in 147 TTJ 649 (Kol. Trib.) (TM) of the Kolkata Benches deleted the addition made on account of interest free loans for the reasons stated herein under:- 7. “Overall in view of the facts and circumstances, as emanating from the case, I find that the arguments and reasoning of the appellant / Ld A.R find favour with most of the Hon'ble Courts and more specifica…

M/S. Lmj Business Centre (P) Ltd., Kolkata vs. ITO, Ward - 8(3), Kolkata

In the result the appeal of the assessee is partly allowed

ITA 1619/KOL/2017[2009-10]Status: DisposedITAT Kolkata09 Feb 2018AY 2009-10

Bench: Hon’Ble Sri N.V.Vasudevan, Jm ] I.T.A Nos.1618&1619/Kol/2017 Assessment Years : 2008-09 & 2009-10

For Appellant: Shri Shital Khemka, FCA & Smt. Arti Debnath, AdvocateFor Respondent: Shri Satyajit Mondal, Addl. CIT

…at Rs.1.60 cr. and hence, following the decision of Hon'ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Powers Ltd. (2009) 313 ITR 340 (Born.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon'ble Bombay High court in the case of Reliance Utilities & Powers Ltd., supra wherein it is held as under: "If there…

M/S. Lmj Business Centre (P) Ltd., Kolkata vs. ITO, Ward - 8(3), Kolkata

In the result the appeal of the assessee is partly allowed

ITA 1618/KOL/2017[2008-09]Status: DisposedITAT Kolkata09 Feb 2018AY 2008-09

Bench: Hon’Ble Sri N.V.Vasudevan, Jm ] I.T.A Nos.1618&1619/Kol/2017 Assessment Years : 2008-09 & 2009-10

For Appellant: Shri Shital Khemka, FCA & Smt. Arti Debnath, AdvocateFor Respondent: Shri Satyajit Mondal, Addl. CIT

…at Rs.1.60 cr. and hence, following the decision of Hon'ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Powers Ltd. (2009) 313 ITR 340 (Born.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon'ble Bombay High court in the case of Reliance Utilities & Powers Ltd., supra wherein it is held as under: "If there…

M/S Vas Electronics, Kolkata vs. A.C.I.T Cir - 36, Kolkata

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

ITA 662/KOL/2013[2009-10]Status: DisposedITAT Kolkata24 Nov 2015AY 2009-10

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri S. M. Surana, AdvocateFor Respondent: Shri Rajendra Prasad, JCIT
Section 133(6)Section 143(3)Section 194CSection 40

…ee funds for the assessee in term of the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Powers Ltd. (2009) 313 ITR 340 (Bom.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon’ble Bombay High court in the case of Reliance Utilities & Powers Ltd., supra wherein it is held as under: “If there…

Lmj Overseas Ltd, Kolkata vs. ITO, Ward - 8(3), Kolkata

In the result, all the appeals of assessee are allowed as indicated above

ITA 88/KOL/2012[2006-07]Status: DisposedITAT Kolkata14 Sept 2015AY 2006-07

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

For Appellant: Smt. Arti Debnath, FCA & Shri Manish Bajoria, FCAFor Respondent: Shri Alok Kr. Nag, JCIT, Sr. DR
Section 143(3)Section 145(3)Section 147Section 263

…at Rs.1.60 cr. and hence, following the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Powers Ltd. (2009) 313 ITR 340 (Bom.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon’ble Bombay High court in the case of Reliance Utilities & Powers Ltd., supra wherein it is held as under: “If there…

Lmj Overseas Ltd, Kolkata vs. ITO, Ward - 8(3), Kolkata

In the result, all the appeals of assessee are allowed as indicated above

ITA 87/KOL/2012[2004-05]Status: DisposedITAT Kolkata14 Sept 2015AY 2004-05

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

For Appellant: Smt. Arti Debnath, FCA & Shri Manish Bajoria, FCAFor Respondent: Shri Alok Kr. Nag, JCIT, Sr. DR
Section 143(3)Section 145(3)Section 147Section 263

…at Rs.1.60 cr. and hence, following the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Powers Ltd. (2009) 313 ITR 340 (Bom.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon’ble Bombay High court in the case of Reliance Utilities & Powers Ltd., supra wherein it is held as under: “If there…

M/S Lmj Business Centre (P) Ltd., Kolkata vs. ITO, Ward-8(3), Kolkata

In the result, all the appeals of assessee are allowed as indicated above

ITA 541/KOL/2012[2006-2007]Status: DisposedITAT Kolkata14 Sept 2015AY 2006-2007

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

For Appellant: Smt. Arti Debnath, FCA & Shri Manish Bajoria, FCAFor Respondent: Shri Alok Kr. Nag, JCIT, Sr. DR
Section 143(3)Section 145(3)Section 147Section 263

…at Rs.1.60 cr. and hence, following the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Powers Ltd. (2009) 313 ITR 340 (Bom.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon’ble Bombay High court in the case of Reliance Utilities & Powers Ltd., supra wherein it is held as under: “If there…

M/S Lmj Business Centre (P) Ltd., Kolkata vs. ITO, Ward-8(3), Kolkata

In the result, all the appeals of assessee are allowed as indicated above

ITA 540/KOL/2012[2003-2004]Status: DisposedITAT Kolkata14 Sept 2015AY 2003-2004

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

For Appellant: Smt. Arti Debnath, FCA & Shri Manish Bajoria, FCAFor Respondent: Shri Alok Kr. Nag, JCIT, Sr. DR
Section 143(3)Section 145(3)Section 147Section 263

…at Rs.1.60 cr. and hence, following the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Powers Ltd. (2009) 313 ITR 340 (Bom.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon’ble Bombay High court in the case of Reliance Utilities & Powers Ltd., supra wherein it is held as under: “If there…

Lmj Business Centre Pvt. Ltd., Kolkata vs. ITO, Ward - 8(3), Kolkata

In the result, all the appeals of assessee are allowed as indicated above

ITA 1700/KOL/2011[2005-06]Status: DisposedITAT Kolkata14 Sept 2015AY 2005-06

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

For Appellant: Smt. Arti Debnath, FCA & Shri Manish Bajoria, FCAFor Respondent: Shri Alok Kr. Nag, JCIT, Sr. DR
Section 143(3)Section 145(3)Section 147Section 263

…at Rs.1.60 cr. and hence, following the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Powers Ltd. (2009) 313 ITR 340 (Bom.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon’ble Bombay High court in the case of Reliance Utilities & Powers Ltd., supra wherein it is held as under: “If there…

Lmj Business Centre Pvt. Ltd., Kolkata vs. ITO, Ward - 8(3), Kolkata

In the result, all the appeals of assessee are allowed as indicated above

ITA 1699/KOL/2011[2004-05]Status: DisposedITAT Kolkata14 Sept 2015AY 2004-05

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

For Appellant: Smt. Arti Debnath, FCA & Shri Manish Bajoria, FCAFor Respondent: Shri Alok Kr. Nag, JCIT, Sr. DR
Section 143(3)Section 145(3)Section 147Section 263

…at Rs.1.60 cr. and hence, following the decision of Hon’ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Powers Ltd. (2009) 313 ITR 340 (Bom.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon’ble Bombay High court in the case of Reliance Utilities & Powers Ltd., supra wherein it is held as under: “If there…

Estates (P.) Ltd. v. Assistant Commissioner of Income-tax, Central Circle IV, Kolkata (147 TTJ 649) — Cited in 10 Judgments | BharatTax