Hero Cycles Pvt. Ltd. v. CIT

379 ITR 347Supreme Court of India2015#208 most cited

What is Hero Cycles Pvt. Ltd. v. CIT authority for?

The Revenue cannot substitute its judgment for that of a businessman regarding the necessity or reasonableness of an expenditure. If an expense is incurred wholly and exclusively for business purposes, it is deductible, and the Revenue cannot question its commercial expediency.

361

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2011 to 2026.

Also referred to as

Hero Cycles Pvt. Ltd. v. CIT · 379 ITR 347 · 16 SCC 359 · Section 36(1)(iii) · commercial expediency · business expediency · disallowance of expenditure · interest-free advances · corporate guarantee · wholly and exclusively for business · Revenue's armchair approach · sales promotion expenditure

Also reported as

16 SCC 359

Sections most often in play

Section 143(3)Section 36(1)(iii)Section 147Section 1961Section 143(2)Section 14ASection 132Section 142(1)
Read the full judgment

Issues it is cited on

interest free advancescommercial expediencysection 36(1)(iii)corporate guaranteebusiness expediencysection 36book profitssection 36(1)arm's length pricetransfer pricing adjustmentassociated enterprisessection 92c

Judgments citing Hero Cycles Pvt. Ltd. v. CIT

M/S Iol Chemicals and Pharmaceuticals Ltd., Ludhiana vs. Addl. CIT, R-I, Ludhiana

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

ITA 1419/CHANDI/2019[2011-12]Status: DisposedITAT Chandigarh10 Jun 2021AY 2011-12
For Appellant: Shri Ashwani Kumar, CAFor Respondent: Smt. C. Chandrakanta, CIT
Section 115JSection 250(6)Section 36Section 36(1)(iii)Section 41(1)

…sufficient interest free funds available which could be said to have been used in making such advances to cover the interest free advances to M/s GDPL. Reliance was placed on the judgment of the Hon'ble Supreme Court in case of Hero Cycles Limited reported in 379 ITR 347. 8. In her rival submissions the Ld. CIT DR strongly supported the order of the authorities below and further submitted that it is not clear that as to whether the assessee was having interest free advances which were utilized to give the advances to the sister concern, therefore, this issue may be set aside to the A.O. for verification. 9. We h…

Bspn Industries Private Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-1(2), Hyderabad

Appeal is allowed

ITA 2008/HYD/2018[2013-14]Status: DisposedITAT Hyderabad19 Apr 2021AY 2013-14

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri K.C. Devdas, ARFor Respondent: Sh. Rohit Muzumdar, CIT-D.R
Section 143(3)Section 36(1)(iii)

…) 286 ITR 1 (P&H) that such advances made to sister concerns indeed deserve the impugned interest disallowance. We hold that the instant reasoning cannot be taken as a valid precedent going by the honorable Apex court’s decision in Hero Cycles (P) Ltd. (2015) 379 ITR 347 (SC) that advances given to a subsidiary having business expediency establishes nexus between the expenditure and business purpose which need not be the business of the assessee itself anymore. Their lordships have reiterated the reasoning in S.A.Builders Limited vs. CIT (2007) 288 ITR 1 (SC) in other words. And also that such an arrangement ough…

ACIT-Circle-2(1), Chandigarh vs. M/S Fastway Transmissions Pvt.Ltd., Chandigarh

In the result, appeals filed by the Revenue and Cross objections filed by

ITA 316/CHANDI/2020[2017-18]Status: DisposedITAT Chandigarh25 Mar 2021AY 2017-18

Bench: Shri N.K. Saini & Shri R.L Negiआयकर अपील सं./Ita Nos. 315 & 316/Chd/2020 िनधा"रण वष" / Assessment Years : 2016-17 & 2017-18 The Acit, M/S Fastway Transmissions Pvt. Ltd., बनाम Circle-2(1), Plot No.17, Industrial Area-1, Chandigarh Chandigarh

For Appellant: Shri Ashwani Kumar, CA &For Respondent: Smt. C.Chandrakanta, CIT
Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “B” CHANDIGARH BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI R.L NEGI, JUDICIAL MEMBER आयकर अपील सं./ITA Nos. 315 & 316/Chd/2020 िनधा"रण वष" / Assessment Years : 2016-17 & 2017-18 The ACIT, M/s Fastway Transmissions Pvt. Ltd., बनाम Circle-2(1), Plot No.17, Industrial Area-1, Chandigarh Chandigarh "थायीलेखासं./PAN NO: AABCF1854B अपीलाथ"/Appellant ""यथ"/Respondent C.O. Nos 1 & 2/Chd/2021 आयकर अपील सं./ITA Nos. 315 & 316/Chd/2020 िनधा"रण वष" / Assessment Years : 2016-17 & 2017-18 M/s Fastway Transmissions The ACIT, बनाम Pvt. Ltd., Circle-2(1), Plot No.17, In…

ACIT, Circle-2(1), Chandigarh vs. M/S Fastway Transmissions Pvt.Ltd., Chandigarh

In the result, appeals filed by the Revenue and Cross objections filed by

ITA 315/CHANDI/2020[2016-17]Status: DisposedITAT Chandigarh25 Mar 2021AY 2016-17

Bench: Shri N.K. Saini & Shri R.L Negiआयकर अपील सं./Ita Nos. 315 & 316/Chd/2020 िनधा"रण वष" / Assessment Years : 2016-17 & 2017-18 The Acit, M/S Fastway Transmissions Pvt. Ltd., बनाम Circle-2(1), Plot No.17, Industrial Area-1, Chandigarh Chandigarh

For Appellant: Shri Ashwani Kumar, CA &For Respondent: Smt. C.Chandrakanta, CIT
Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “B” CHANDIGARH BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI R.L NEGI, JUDICIAL MEMBER आयकर अपील सं./ITA Nos. 315 & 316/Chd/2020 िनधा"रण वष" / Assessment Years : 2016-17 & 2017-18 The ACIT, M/s Fastway Transmissions Pvt. Ltd., बनाम Circle-2(1), Plot No.17, Industrial Area-1, Chandigarh Chandigarh "थायीलेखासं./PAN NO: AABCF1854B अपीलाथ"/Appellant ""यथ"/Respondent C.O. Nos 1 & 2/Chd/2021 आयकर अपील सं./ITA Nos. 315 & 316/Chd/2020 िनधा"रण वष" / Assessment Years : 2016-17 & 2017-18 M/s Fastway Transmissions The ACIT, बनाम Pvt. Ltd., Circle-2(1), Plot No.17, In…

M/S Mahavir Techno Ltd., Chandigarh vs. ACIT, Cricle, Kurukshetra

In the result, appeal of the Assessee is allowed

ITA 332/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh23 Feb 2021AY 2014-15
For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Ashok Khanna, Addl. CIT
Section 143(1)Section 234BSection 36(1)(iii)

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी” , च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH (VIRTUAL COURT) "ी एन.के.सैनी, उपा"य" एवं "ी आर.एल. नेगी, "या"यक सद"य BEFORE: SHRI. N.K.SAINI, VP & SHRI , R.L. NEGI, JM आयकर अपील सं./ ITA NO. 332/Chd/2019 "नधा"रण वष" / Assessment Year : 2014-15 M/s Mahavir Techno Ltd. The ACIT, बनाम C/o Kulwant Rai Chhabra, Advocate, Circle, Kurukshetra Shop No. 1,2,3 & 4, Miri Piri Chowk Haryana Kurukshetra- Haryana "थायी लेखा सं./PAN NO: AABCM2044E अपीलाथ"/Appellant ""यथ"/Respondent "नधा"रती क" ओर से/Assessee by : Shri Sudhir Sehgal, Advocate राज"व क" ओर…

M/S. Laxmi India Finleasecap Pvt. Ltd., Kolkata vs. Principal CIT - 1, Kolkata

In the result, the appeal of the assessee stands allowed

ITA 940/KOL/2018[2013-14]Status: DisposedITAT Kolkata22 Jan 2021AY 2013-14

Bench: Shri J.Sudhakar Reddy & Shri Sanjay Gargassessment Year: 2013-14

Section 14ASection 263Section 36(1)(iii)

…res only, which were much below than the interest free / own funds available with the assessee. Ld. counsel for the assessee while placing reliance on the decision of the Hon'ble Supreme Court in the case of Hero Cycles (P) Ltd. vs. Commissioner of Income Tax 379 ITR 347 (SC) has submitted that it has been held by the hon'ble apex court of the country that where the investments have been made from the common pool of funds and in case the assessee has sufficient own / interest free funds availing with him to meet the investment made, then in that event, presumption would be that the investment has been made out of…

Shri. Chandrakant R Agrawal, Mumbai vs. Pr CIT (A)-30, Mumbai

In the result, the appeals are allowed

ITA 380/MUM/2020[2015-16]Status: DisposedITAT Mumbai22 Jan 2021AY 2015-16

Bench: Shri S. Rifaur Rahman & Shri Ravish Soodshri Chandrakant R. Agrawal Pr. Commissioner Of 61, Sadhna Daftary Road, Income-Tax (Central) -30, R. No. 541, 5Th Floor, Malad East, Vs. Mumbai – 400097 Kautilya Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai Pan – Aabpa8047N (Appellant) (Respondent)

For Appellant: Dr. K. Shivaram, Senior AdvocateFor Respondent: Ms. Shreekala Pardeshi, D.R
Section 143(1)Section 143(3)Section 263Section 56Section 57

…ITA No.380/Mum/2020 A.Y. 2015-16 1 Shri Chandrakant R. Agrawal Vs. PCIT (Central)-30 IN THE INCOME TAX APPELLATE TRIBUNAL “C” Bench, Mumbai Before Shri S. Rifaur Rahman, Accountant Member and Shri Ravish Sood, Judicial Member Shri Chandrakant R. Agrawal Pr. Commissioner of 61, Sadhna Daftary Road, Income-tax (Central) -30, R. No. 541, 5th Floor, Malad East, Vs. Mumbai – 400097 Kautilya Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai PAN – AABPA8047N (Appellant) (Respondent) Appellant by: Dr. K. Shivaram, Senior Advocate Respondent by: Ms. Shreekala Pardeshi, D.R Date of Hearing: 20.01.2021 Date of Pronounc…

ACIT, Central Circle- 19, New Delhi vs. Amq Agro India Pvt. Ltd., New Delhi

In the result, both the appeals of the assessee are partly allowed and both the appeals of the revenue are dismissed

ITA 4409/DEL/2018[2014-15]Status: DisposedITAT Delhi22 Jan 2021AY 2014-15

Bench: Sh. H. S. Sidhudr. B. R. R. Kumar(Through Video Conferencing) Ita No. 2805/Del/2018 : Asstt. Year : 2013-14 Ita No. 2806/Del/2018 : Asstt. Year : 2014-15 M/S Amq Agro India Pvt. Ltd. Vs Asstt. Commissioner Of Income C-134, Ground Floor, Defence Tax, Central Circle-19, Colony, New Delhi-110024 New Delhi (Appellant) (Respondent) Pan No. Aaeca0929M

For Appellant: Sh. Sh. Hiren Mehta, CA &For Respondent: Ms. Pramita M. Biswas, CIT DR
Section 153A

…cannot be forced earn income. 94. Having heard the arguments of both the parties, we hold that the issue of disallowance of interest has reached finality with the judgment of Hon’ble Supreme Court in the case of Hero Cycles (P.) Ltd. Vs. CIT, Ludhiana [2015] 379 ITR 347. The proposition laid down by the Hon’ble Apex Court is that where the assessee had sufficient own interest free funds along with interest bearing funds and had made or advanced sums for non business purposes without charging any interest, the presumption that would arise is that the investment had been made out of interest free funds generated o…

DCIT, Central Circle- 19, New Delhi vs. Amq Agro India Pvt. Ltd., New Delhi

In the result, both the appeals of the assessee are partly allowed and both the appeals of the revenue are dismissed

ITA 4408/DEL/2018[2013-14]Status: DisposedITAT Delhi22 Jan 2021AY 2013-14

Bench: Sh. H. S. Sidhudr. B. R. R. Kumar(Through Video Conferencing) Ita No. 2805/Del/2018 : Asstt. Year : 2013-14 Ita No. 2806/Del/2018 : Asstt. Year : 2014-15 M/S Amq Agro India Pvt. Ltd. Vs Asstt. Commissioner Of Income C-134, Ground Floor, Defence Tax, Central Circle-19, Colony, New Delhi-110024 New Delhi (Appellant) (Respondent) Pan No. Aaeca0929M

For Appellant: Sh. Sh. Hiren Mehta, CA &For Respondent: Ms. Pramita M. Biswas, CIT DR
Section 153A

…cannot be forced earn income. 94. Having heard the arguments of both the parties, we hold that the issue of disallowance of interest has reached finality with the judgment of Hon’ble Supreme Court in the case of Hero Cycles (P.) Ltd. Vs. CIT, Ludhiana [2015] 379 ITR 347. The proposition laid down by the Hon’ble Apex Court is that where the assessee had sufficient own interest free funds along with interest bearing funds and had made or advanced sums for non business purposes without charging any interest, the presumption that would arise is that the investment had been made out of interest free funds generated o…

Amq Agro India Pvt. Ltd., New Delhi vs. ACIT, Central Circle- 19, New Delhi

In the result, both the appeals of the assessee are partly allowed and both the appeals of the revenue are dismissed

ITA 2806/DEL/2018[2014-15]Status: DisposedITAT Delhi22 Jan 2021AY 2014-15

Bench: Sh. H. S. Sidhudr. B. R. R. Kumar(Through Video Conferencing) Ita No. 2805/Del/2018 : Asstt. Year : 2013-14 Ita No. 2806/Del/2018 : Asstt. Year : 2014-15 M/S Amq Agro India Pvt. Ltd. Vs Asstt. Commissioner Of Income C-134, Ground Floor, Defence Tax, Central Circle-19, Colony, New Delhi-110024 New Delhi (Appellant) (Respondent) Pan No. Aaeca0929M

For Appellant: Sh. Sh. Hiren Mehta, CA &For Respondent: Ms. Pramita M. Biswas, CIT DR
Section 153A

…cannot be forced earn income. 94. Having heard the arguments of both the parties, we hold that the issue of disallowance of interest has reached finality with the judgment of Hon’ble Supreme Court in the case of Hero Cycles (P.) Ltd. Vs. CIT, Ludhiana [2015] 379 ITR 347. The proposition laid down by the Hon’ble Apex Court is that where the assessee had sufficient own interest free funds along with interest bearing funds and had made or advanced sums for non business purposes without charging any interest, the presumption that would arise is that the investment had been made out of interest free funds generated o…

Amq Agro India Pvt. Ltd., New Delhi vs. ACIT, Central Circle- 19, New Delhi

In the result, both the appeals of the assessee are partly allowed and both the appeals of the revenue are dismissed

ITA 2805/DEL/2018[2013-14]Status: DisposedITAT Delhi22 Jan 2021AY 2013-14

Bench: Sh. H. S. Sidhudr. B. R. R. Kumar(Through Video Conferencing) Ita No. 2805/Del/2018 : Asstt. Year : 2013-14 Ita No. 2806/Del/2018 : Asstt. Year : 2014-15 M/S Amq Agro India Pvt. Ltd. Vs Asstt. Commissioner Of Income C-134, Ground Floor, Defence Tax, Central Circle-19, Colony, New Delhi-110024 New Delhi (Appellant) (Respondent) Pan No. Aaeca0929M

For Appellant: Sh. Sh. Hiren Mehta, CA &For Respondent: Ms. Pramita M. Biswas, CIT DR
Section 153A

…cannot be forced earn income. 94. Having heard the arguments of both the parties, we hold that the issue of disallowance of interest has reached finality with the judgment of Hon’ble Supreme Court in the case of Hero Cycles (P.) Ltd. Vs. CIT, Ludhiana [2015] 379 ITR 347. The proposition laid down by the Hon’ble Apex Court is that where the assessee had sufficient own interest free funds along with interest bearing funds and had made or advanced sums for non business purposes without charging any interest, the presumption that would arise is that the investment had been made out of interest free funds generated o…

Golf Technologies Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee are allowed and the appeal of the revenue is dismissed

ITA 5569/DEL/2012[2010-11]Status: DisposedITAT Delhi21 Jan 2021AY 2010-11

Bench: Sh. Amit Shukladr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5567/Del/2012 : Asstt. Year: 2008-09 Ita No. 5568/Del/2012 : Asstt. Year: 2009-10 Ita No. 5569/Del/2012 : Asstt. Year: 2010-11 Golf Technologies Pvt. Ltd. Vs Acit, Gk House-187A, Flat No. 102, Central Circle-11, Sant Nagar, East Of Kailash New Delhi New Delhi (Appellant) (Respondent) Ita No. 5540/Del/2012 : Asstt. Year : 2007-08 Acit, Vs Golf Technologies Pvt. Ltd. Central Circle-11, Gk House-187A, Flat No. 102, New Delhi Sant Nagar, East Of Kailash New Delhi (Appellant) (Respondent) Pan No. Aaccg4538J Assessee By : Sh. R. S. Ahuja, Ca Revenue By : Ms. Sunita Singh, Cit Dr Date Of Hearing: 11.11.2020 Date Of Pronouncement:21.01.2021 Order Per Dr. B. R. R. Kumar: These Three Appeals Have Been Filed By The Assessee & One Appeal Has Been Filed By The Revenue Against The Orders Of The Ld. Cit(A)-Xxxi, New Delhi Dated 28.08.2012. 2. Since, The Issues Involved In All The Appeals Of The Assessee Are Common, They Were Heard Together. Golf Technologies Pvt. Ltd. 3. In Ita No. 5567/Del/2012 For The Ay 2008-09, Following Effective Grounds Have Been Raised By The Assessee:

For Appellant: Sh. R. S. Ahuja, CAFor Respondent: Ms. Sunita Singh, CIT DR
Section 36

…isallowance of interest made u/s.36(1)(iii) of the Act, the action of the AO is correct or not. The issue of disallowance of interest has reached finality with the judgment of Hon’ble Supreme Court in the case of Hero Cycles (P.) Ltd. Vs. CIT, Ludhiana [2015] 379 ITR 347. The proposition laid down by the Hon’ble Apex Court is that where the assessee had sufficient own interest free funds along with interest bearing funds and had made or advanced sums for non business purposes without charging any interest, the presumption that would arise is that the investment had been made out of interest free funds generated o…

Golf Technologies Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee are allowed and the appeal of the revenue is dismissed

ITA 5568/DEL/2012[2009-10]Status: DisposedITAT Delhi21 Jan 2021AY 2009-10

Bench: Sh. Amit Shukladr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5567/Del/2012 : Asstt. Year: 2008-09 Ita No. 5568/Del/2012 : Asstt. Year: 2009-10 Ita No. 5569/Del/2012 : Asstt. Year: 2010-11 Golf Technologies Pvt. Ltd. Vs Acit, Gk House-187A, Flat No. 102, Central Circle-11, Sant Nagar, East Of Kailash New Delhi New Delhi (Appellant) (Respondent) Ita No. 5540/Del/2012 : Asstt. Year : 2007-08 Acit, Vs Golf Technologies Pvt. Ltd. Central Circle-11, Gk House-187A, Flat No. 102, New Delhi Sant Nagar, East Of Kailash New Delhi (Appellant) (Respondent) Pan No. Aaccg4538J Assessee By : Sh. R. S. Ahuja, Ca Revenue By : Ms. Sunita Singh, Cit Dr Date Of Hearing: 11.11.2020 Date Of Pronouncement:21.01.2021 Order Per Dr. B. R. R. Kumar: These Three Appeals Have Been Filed By The Assessee & One Appeal Has Been Filed By The Revenue Against The Orders Of The Ld. Cit(A)-Xxxi, New Delhi Dated 28.08.2012. 2. Since, The Issues Involved In All The Appeals Of The Assessee Are Common, They Were Heard Together. Golf Technologies Pvt. Ltd. 3. In Ita No. 5567/Del/2012 For The Ay 2008-09, Following Effective Grounds Have Been Raised By The Assessee:

For Appellant: Sh. R. S. Ahuja, CAFor Respondent: Ms. Sunita Singh, CIT DR
Section 36

…isallowance of interest made u/s.36(1)(iii) of the Act, the action of the AO is correct or not. The issue of disallowance of interest has reached finality with the judgment of Hon’ble Supreme Court in the case of Hero Cycles (P.) Ltd. Vs. CIT, Ludhiana [2015] 379 ITR 347. The proposition laid down by the Hon’ble Apex Court is that where the assessee had sufficient own interest free funds along with interest bearing funds and had made or advanced sums for non business purposes without charging any interest, the presumption that would arise is that the investment had been made out of interest free funds generated o…

Golf Technologies Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee are allowed and the appeal of the revenue is dismissed

ITA 5567/DEL/2012[2008-09]Status: DisposedITAT Delhi21 Jan 2021AY 2008-09

Bench: Sh. Amit Shukladr. B. R. R. Kumar(Through Video Conferencing) Ita No. 5567/Del/2012 : Asstt. Year: 2008-09 Ita No. 5568/Del/2012 : Asstt. Year: 2009-10 Ita No. 5569/Del/2012 : Asstt. Year: 2010-11 Golf Technologies Pvt. Ltd. Vs Acit, Gk House-187A, Flat No. 102, Central Circle-11, Sant Nagar, East Of Kailash New Delhi New Delhi (Appellant) (Respondent) Ita No. 5540/Del/2012 : Asstt. Year : 2007-08 Acit, Vs Golf Technologies Pvt. Ltd. Central Circle-11, Gk House-187A, Flat No. 102, New Delhi Sant Nagar, East Of Kailash New Delhi (Appellant) (Respondent) Pan No. Aaccg4538J Assessee By : Sh. R. S. Ahuja, Ca Revenue By : Ms. Sunita Singh, Cit Dr Date Of Hearing: 11.11.2020 Date Of Pronouncement:21.01.2021 Order Per Dr. B. R. R. Kumar: These Three Appeals Have Been Filed By The Assessee & One Appeal Has Been Filed By The Revenue Against The Orders Of The Ld. Cit(A)-Xxxi, New Delhi Dated 28.08.2012. 2. Since, The Issues Involved In All The Appeals Of The Assessee Are Common, They Were Heard Together. Golf Technologies Pvt. Ltd. 3. In Ita No. 5567/Del/2012 For The Ay 2008-09, Following Effective Grounds Have Been Raised By The Assessee:

For Appellant: Sh. R. S. Ahuja, CAFor Respondent: Ms. Sunita Singh, CIT DR
Section 36

…isallowance of interest made u/s.36(1)(iii) of the Act, the action of the AO is correct or not. The issue of disallowance of interest has reached finality with the judgment of Hon’ble Supreme Court in the case of Hero Cycles (P.) Ltd. Vs. CIT, Ludhiana [2015] 379 ITR 347. The proposition laid down by the Hon’ble Apex Court is that where the assessee had sufficient own interest free funds along with interest bearing funds and had made or advanced sums for non business purposes without charging any interest, the presumption that would arise is that the investment had been made out of interest free funds generated o…

DCIT Cent. Cir. -5(3) (Erstwhile DCIT Cent. Cir. -36), Mumbai vs. Sumer Builders, Mumbai

In the result, appeal of the assessee is partly allowed as indicated above and appeal of the Revenue is dismissed

ITA 5130/MUM/2016[2011-12]Status: DisposedITAT Mumbai08 Jan 2021AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Blem/S. Sumer Builders V. Dy. Commissioner Of Income-Tax Central Circle – 5(3) 201, Commerce House {Erstwhile Dcit, Central Circle – 36} 140, Nm Road, Fort Room No. 1906, 19Th Floor Mumbai – 400 023 Air India Building, Nariman Point Mumbai – 400 021 Pan: Aaafs2829R

For Appellant: Shri Nishit GandhiFor Respondent: Shri A. Mohan
Section 36(1)(iii)

…appeal and against the disallowance confirmed by him the Assessee is in appeal. 65. The Ld. Counsel for the assessee at the outset referring to Page Nos. 25, 122 to 132 of paper book and relying on the judgements in the case of Hero Cycles Pvt. Ltd. v. CIT [379 ITR 347 (SC)], CIT v. Reliance Utilities and Power Ltd. [313 ITR 340 (Bombay)] and CIT v. HDFC Bank 56 ITA NO.4915 & 5130/MUM/2016 (A.Y: 2011-12) M/s. Sumer Builders Ltd. [366 ITR 505 (Bombay)] contended that it had sufficient owned funds in order to advance the same to the sister concerns and as such no disallowance could be made u/s 36(l)(iii) of the…

Sumer Builders, Mumbai vs. DCIT Cen Cir 5(3), Mumbai

In the result, appeal of the assessee is partly allowed as indicated above and appeal of the Revenue is dismissed

ITA 4915/MUM/2016[2011-12]Status: DisposedITAT Mumbai08 Jan 2021AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Blem/S. Sumer Builders V. Dy. Commissioner Of Income-Tax Central Circle – 5(3) 201, Commerce House {Erstwhile Dcit, Central Circle – 36} 140, Nm Road, Fort Room No. 1906, 19Th Floor Mumbai – 400 023 Air India Building, Nariman Point Mumbai – 400 021 Pan: Aaafs2829R

For Appellant: Shri Nishit GandhiFor Respondent: Shri A. Mohan
Section 36(1)(iii)

…appeal and against the disallowance confirmed by him the Assessee is in appeal. 65. The Ld. Counsel for the assessee at the outset referring to Page Nos. 25, 122 to 132 of paper book and relying on the judgements in the case of Hero Cycles Pvt. Ltd. v. CIT [379 ITR 347 (SC)], CIT v. Reliance Utilities and Power Ltd. [313 ITR 340 (Bombay)] and CIT v. HDFC Bank 56 ITA NO.4915 & 5130/MUM/2016 (A.Y: 2011-12) M/s. Sumer Builders Ltd. [366 ITR 505 (Bombay)] contended that it had sufficient owned funds in order to advance the same to the sister concerns and as such no disallowance could be made u/s 36(l)(iii) of the…

M/S International Customer Related Management Services Pvt. Ltd., Mohali vs. DCIT, C-6(1), Mohali

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

ITA 884/CHANDI/2018[2009-10]Status: DisposedITAT Chandigarh09 Dec 2020AY 2009-10

Bench: Shri Sanjay Gargआयकर अपील सं./ Ita No. 884/Chd/2018 "नधा"रण वष" / Assessment Year : 2009-10 M/S International Customer Related The Dcit, बनाम Management Service Pvt. Ltd., Circle 6 (1), Phase 3A, Mohali Mohali "थायी लेखा सं./Pan No: Aabci2162B अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Smt. Meenakshi Vohra, Addl. CIT
Section 36(1)(iii)Section 46A

…advances / investment was not made for business purposes of the assessee. The Ld. Counsel for the assessee has further submitted that the issue is now squarely covered by the decision of the Hon'ble Supreme Court in the case of ‘Hero Cycles (P) Ltd Vs. CIT’ 379 ITR 347 (SC) and also by the decision of the Hon'ble Supreme Court in the case of ‘CIT (LTU) Vs. ITA No. 884Chd-2018 M/s International Customer Related Services Pvt Ltd, Mohali 3 Reliance Industries Ltd.’ [2019] 410 ITR 466 (SC). 6. I have considered the rival contentions of the Ld. Representatives of the parties and find that the issue is squarely…

Abs Entertainment Private Ltd, Mumbai vs. DCIT, Ward 9(1)(1), Mumbai

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

ITA 3467/MUM/2019[2011-12]Status: DisposedITAT Mumbai11 Nov 2020AY 2011-12

Bench: Shri Amarjit Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं/ I.T.A. No. 3467/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2011-12) बिधम/ Abs Entertainment Pvt. Ltd. Dcit, Ward 9(1) Hariom Chambers, 7Th Floor, 203, Aaykar Bhavan, 2Nd Vs. B-16, Veera Industrial Floor, Maharshi Karve Road, Estate, Off Link Road, New Marine Lines, Mumbai- Andheri (W), Mumbai- 400020. 400053. & आयकर अपील सं/ I.T.A. No. 3468/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2014-15) बिधम/ Abs Entertainment Pvt. Ltd. Ito, Ward 9(1) Hariom Chambers, 7Th Floor, Aaykar Bhavan, 2Nd Floor, Vs. B-16, Veera Industrial Room No. 203, Maharshi Estate, Off Link Road, Karve Road, New Marine Andheri (W), Mumbai- Lines, Mumbai-400020. 400053. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aahca1347E (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Jayesh Desi (Ar) Revenue By: Shri Michael Jerald (Dr) सुनवाई की तारीख / Date Of Hearing: 13/10/2020 घोषणा की तारीख /Date Of Pronouncement: 11/11/2020 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Above Mentioned Appeals Against The Different Order Passed By The Commissioner Of Income Tax (Appeals)- 16, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The

For Appellant: Shri Jayesh Desi (AR)For Respondent: Shri Michael Jerald (DR)
Section 143(1)Section 143(2)Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं/ I.T.A. No. 3467/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2011-12) बिधम/ ABS Entertainment Pvt. Ltd. DCIT, Ward 9(1) Hariom Chambers, 7th Floor, 203, Aaykar Bhavan, 2nd Vs. B-16, Veera Industrial Floor, Maharshi Karve Road, Estate, Off Link Road, New Marine Lines, Mumbai- Andheri (W), Mumbai- 400020. 400053. & आयकर अपील सं/ I.T.A. No. 3468/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2014-15) बिधम/ ABS Entertainment Pvt. Ltd. ITO, Ward 9(1) Hariom Chambers, 7th Floor, Aaykar Bhavan,…

M/S. Safina Hotels Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 6(1)(1), Bangalore

In the result, the appeal of the assessee is allowed

ITA 2512/BANG/2019[2016-17]Status: DisposedITAT Bangalore09 Nov 2020AY 2016-17

Bench: Shri N.V. Vasudevan & Shri Chandra Poojarim/S. Safina Hotels Pvt. Ltd., 84/85, Safina Plaza, Infantry Road, Bangalore-560 001 ….Appellant Pan Aaccs 5146G Vs. Dy. Commissioner Of Income Tax, Circle 6(1)(1), Bangalore. ……Respondent. Assessee By: Shri Tata Krishna, Advocate. Revenue By: Shri Kannan Narayanan, Jcit(D.R)

For Appellant: Shri Tata Krishna, AdvocateFor Respondent: Shri Kannan Narayanan, JCIT(D.R)
Section 143(2)Section 143(3)Section 32Section 37

…unds to a sister concern from the point of view of commercial 13 expediency and not from the point of view whether the amount was advanced for earning profits. 4.4.9 The ld. AR also relied on the following decisions: i. Hero Cycles (P.) Ltd. v. CIT [2015] 379 ITR 347 (SC); ii. Sasson J.David 8& Co. P.Ltd. v. CIT (1979) 118 ITR 261 (SC); iii. CIT vs. Walchand and Co. (P.) Ltd., [ 1967] 65 ITR 381(SC); iv. CIT vs. Panipat Woollen 8v General Mills Co. Ltd., [ 1976] 103 ITR 66(SC) v. CIT v. British Paints India Ltd. [1991] 188 ITR 44 (SC) vi. Vipin Kumar Khanna v. CIT [2001] 251 ITR 7822 (Delhi) vii. CIT vs. D…

Shri Sanjay Kumar Sharma, Ludhiana vs. DCIT, C-6, Ludhiana

The appeal of the assessee is hereby allowed

ITA 1249/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh21 Oct 2020AY 2014-15

Bench: Shri Sanjay Garg & Ms. Annapurna Gupta

For Appellant: Shri Ashwani Kumar ,CAFor Respondent: Shri Amaresh Singh, CIT
Section 143(3)Section 36

…on will be that interest free advances / investments have been made by the assessee out of own funds / interest free funds. Reliance in this respect can also be placed on the decision of the Hon'ble Supreme Court in the case of ‘Hero Cycles (P) Ltd Vs. CIT’ 379 ITR 347 (SC) and also on the decision of the Hon'ble Supreme Court in the case of ‘CIT (LTU) Vs. 6 ITA No. 1249-Chd/2019- Sanjay Kumar Sharma, Ludhiana Reliance Industries Ltd.’ [2019] 410 ITR 466 (SC). Thus, as per the settled law no disallowance u/s 36(i)(iii) of the Act is warranted on this issue. The disallowance made by the AO on this issue is orde…