ITO v. M. M. Textiles

122 ITD 435Income Tax Appellate Tribunal2010#22215 most cited

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2018 to 2026.

Sections most often in play

Section 115BBE Section 234B Section 234C Section 270A Section 271AAC Section 272A(1)(b)Section 40A(2)(a)Section 40A(2)(b)

Judgments citing ITO v. M. M. Textiles

Shaileshkumar Dahyabhai Patel, Vadodara, Gujarat vs. Deputy Commissioner of Income Tax Circle 2(1)(2) (Now DCIT Circle 2(1)(1), Vadodara, Gujarat

In the result, Ground Number 7 of the assessee’s appeal is allowed

ITA 2131/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad26 Feb 2026AY 2017-18

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Milin Mehta & Shri Bhavin Marfatia, ARsFor Respondent: Shri Rameshwar P Meena, Sr. DR

Section 234BSection 234CSection 270ASection 271ASection 272A(1)(b)Section 6Section 68Section 69ASection 69C

…able having regard to the circumstances and requirements of the business of the assessee. In this factual matrix of the case, as discussed above, and respectfully following: the aforesaid decision of the ITAT, Mumbai Bench in the case of M. M. Textiles (2010) 122 ITD 435 (Mum - ITAT) and of the ITAT, Bench, in the case of Subhash Chander and Co., (2009) 31 SOT 11 (ASR), we are of the considered view that the disallowance of interest payment of Rs.48,66,556/- under section 40A(2)(b) of the Act, in the case on hand, is factually unsustainable and accordingly delete the same. (5) The ITAT Ahmedabad, in ITA.No.869/Ah…

Sri. Shambulal G Chhabra vs. Addl.C.I.T

In the result, the assessee’s appeal for Assessment Year 2009-10 is allowed

ITA 1145/BANG/2013[2009-10]Status: DisposedITAT Bangalore24 May 2019AY 2009-10

Bench: Shri Jason P Boaz & Shri Pavan Kumar Gadaleassessment Year : 2009-10 Shri. Shambulal G. Chhabria, Vs. Additional Commissioner Of No.G-5, Ramanashree Chambers, Income Tax, Lady Curzon Road, Range - 8, Malleswaram, Bangalore-560 001. Bangalore. Pan : Abhps 4411 M Appellant Respondent Assessee By : Shri. V. Chandrasekhar, Advocate Revenue By : Shri. C. H. Sundar Rao, Cit Date Of Hearing : 26.03.2019 Date Of Pronouncement : 24.05.2019

For Appellant: Shri. V. Chandrasekhar, AdvocateFor Respondent: Shri. C. H. Sundar Rao, CIT

Section 143(3)Section 234BSection 40ASection 40A(2)(b)

…inding about the expenditure incurred having been excessive / unreasonable having regard to the facilities / services for which the interest payment has been made. In this regard, the ITAT, Mumbai Bench in the case of ITO Vs. M. M. Textiles reported in (2010) 122 ITD 435 (Mumbai) at para 18 thereof has held as under: “18. From the facts narrated above it is noted that the Assessing Officer did not allow deduction of interest to partners by relying on section 40A(2) as in his opinion the assessee had diverted its capital as well as interest free unsecured loans for the loans and advances of a much higher magnitu…

Asstt.Commissioner of Income-Tax -1(2), Raipur (Cg) vs. M/S Vijay Transmission Pvt.Ltd, Raipur (Cg)

In the result, appeal filed by the revenue is dismissed

ITA 208/BIL/2012[2009-10]Status: DisposedITAT Raipur11 Jan 2018AY 2009-10

Bench: S/Shri N.S Saini & Pavan Kumar Gadaleassessment Year : 2009-2010

For Appellant: Shri Praveen Khandalwal, ARFor Respondent: Mrs Shabana Parveen, DR

…operty and also mortgage collateral security apart from personal guarantee. The assessee relied on following judicial pronouncements:- 11 Assessment Year : 2009-2010 (i) Subash Chancier & Co vs. 1TO (2009) 121 TTJ (Asr) 718; (ii) ITO vs. MM Textiles (2009) 122 ITD 435 (Mum); (iii)Cosmat Max Limited vs. DCIT (2009) 124 TTJ (Del) 86; 16. The CIT(A) deleted the addition observing that the rate of interest in any loan transaction depends upon various factors and bargaining capacity of the borrower and lender. The factors may include periodicity of repayment, security offered, past track of the borrower, 'provisi…