Munjal Sales Corporation v. CIT

298 ITR 298Supreme Court of India2008#492 most cited

What is Munjal Sales Corporation v. CIT authority for?

The Supreme Court approves the mixed fund theory, holding that no interest disallowance is warranted under section 36(1)(iii) if investments or advances are made from the assessee's own non-interest bearing funds, even when mixed funds are available. This presumption applies when non-interest bearing funds are sufficient to meet the investments.

191

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2010 to 2026.

Also referred to as

Munjal Sales Corporation v CIT · 298 ITR 298 · Section 36(1)(iii) · disallowance of interest expenditure · mixed fund theory · interest free advances · non-interest bearing funds · business expediency · Section 14A disallowance · rule of consistency

Sections most often in play

Section 36(1)(iii)Section 143(3)Section 14ASection 250Section 32(1)(ii)Section 11Section 11(1)Section 11(1)(a)
Read the full judgment

Issues it is cited on

interest free advancessection 36(1)(iii)business expediencydisallowance of interest expenditurerule of consistencydisallowance u/s 14asection 36section 36(1)section 14adisallowance under section 14adouble taxationsection 37

Judgments citing Munjal Sales Corporation v. CIT

M/S. R.B. Polymers Ltd., Kolkata vs. DCIT, Circle - 4, Kolkata

Appeal is partly allowed in above terms

ITA 456/KOL/2018[2010-11]Status: DisposedITAT Kolkata12 Jun 2020AY 2010-11

Bench: Shri P.M. Jagtap, V.P & Shri S. S. Godara, Jm आयकर अपीलसं./I.T.A No.456/Kol/2018 ("नधा"रण वष" / Assessment Year: 2010-11) M/S Rb Polymers Ltd. Vs. Dcit, Circle-4, Kolkata 25, R.N. Mukherjee Road, 4Th Floor, Suite-F, Kolkata-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabcr3117R (Appellant) .. (Respondent) Appellant By : Shri Siddharth Agarwal, Advocate Respondent By : Shri Dhrubajyoti Ray, Sr. Dr सुनवाई क" तार"ख/ Date Of Hearing : 21/02/2020 घोषणा क" तार"ख/Date Of Pronouncement : 12/06/2020 आदेश / O R D E R Per Shri S. S. Godara: This Assessee’S Appeal For Assessment Year 2010-11 Arises Against The Commissioner Of Income Tax (A) - 2, Kolkata Dated 20.02.2018 Passed In Case No.1220/Cit(A)-2/14-15 Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. Heard Both The Parties. Case File Perused. 2. The Assessee’S First & Former Substantive Ground Challenges Correctness Of Both The Lower Authorities’ Action Invoking Section 14A R.W.R 8D(2)(Ii) Disallowance Of Proportionate Interest Amounting To Rs.75614/- Pertaining To Its Exempt Income. Suffice To Say, We Notice At The Outset That The Assessee’S Investments As On 31.03.2009 & 31.03.2010 Read Figures Of Rs.1,71,25,754/- & 1,93,49,912/- (Difference Of Rs.22,24,158/-) As Against Its Non-Interest Bearing Funds In The Nature Of Share Capital Along With Reserves & Surplus Of

For Appellant: Shri Siddharth Agarwal, AdvocateFor Respondent: Shri Dhrubajyoti Ray, Sr. DR
Section 143(3)Section 14ASection 28Section 36(2)(i)Section 37

…IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH KOLKATA BEFORE SHRI P.M. JAGTAP, V.P & SHRI S. S. GODARA, JM आयकर अपीलसं./I.T.A No.456/Kol/2018 ("नधा"रण वष" / Assessment Year: 2010-11) M/s RB Polymers Ltd. Vs. DCIT, Circle-4, Kolkata 25, R.N. Mukherjee Road, 4th Floor, Suite-F, Kolkata-1. "थायीलेखासं./जीआइआरसं./PAN/GIR No.: AABCR3117R (Appellant) .. (Respondent) Appellant by : Shri Siddharth Agarwal, Advocate Respondent by : Shri Dhrubajyoti Ray, Sr. DR सुनवाई क" तार"ख/ Date of Hearing : 21/02/2020 घोषणा क" तार"ख/Date of Pronouncement : 12/06/2020 आदेश / O R D E R Per Shri S. S. Godara: This assessee’s appeal fo…

The Dy. CIT, Circle-1(2), Ahmedabad vs. M/S. Artex Apparels, Ahmedabad

Accordingly, the said ground of appeal is also allowed

ITA 1450/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad05 Mar 2020AY 2012-13

Bench: Shri Rajpal Yadav & Shri T. S. Kapoorआयकर अपील सं./I.T.A. No. 1450/Ahd/2017 With Cross Objection No.24/Ahd/2019 ("नधा"रण वष" / Assessment Years : 2012-13)

For Appellant: Shri Parimal S. Parmar, A.RFor Respondent: Shri T. Shankar, Sr.D.R
Section 10ASection 234ASection 271(1)(c)Section 36(1)(va)Section 40A(2)(b)

…ITR 630 (Guj); > CIT vs. Gujarat Power Corporation Ltd. - 352 ITR 583 (Guj); > CIT vs. Reliance Utilities & Power Ltd. - 313 ITR 340 (Bom); ITA No. 1450/Ahd/17 with CO No.24/Ahd/19 [M/s. Artex Apparels] A.Y. 2012-13 - 7 - > Munjal Sales Corporation vs. CIT - 298 ITR 298 (SC); > CIT vs. Hitachi Home & Life Solutions (I). Ltd. - (2014) 41 taxmann.com 540 (Guj); 17. As regards disallowance of bad debts, it was submitted that AO failed to appreciate that invoice to the said parties were issued by non SEZ unit and our attention was invited to paper book page no.78 where the copy of invoice was placed. 18. As regard…

Synergy Diagnostics Private Limited, Mumbai vs. ACIT Circle-3, Mumbai

ITA 4841/MUM/2018[2015-16]Status: DisposedITAT Mumbai10 Feb 2020AY 2015-16

Bench: Shri S. Rifaur Rahman, Am & Shri Ravish Sood, Jm आयकरअपीलसं./ I.T.A. No. 4841/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2015-16)

For Respondent: Shri V. Vinod Kumar, DR
Section 36(1)(iii)

…ational Ltd. [2010] 328 ITR 544 by Gujarat High Court. Punjab Stainless Steel Lid. 324 ITR 396 /Delhi High Court), in this the Imn'ble High Court has given a finding which is in favour of revenue and has clearly distinguished Munjal Sales Corporation v. CIT, 298 ITR 298. In this judgment the Hon'ble ITAT has squarely followed Hon’ble Delhi High Court decision Punjab Stainless Steel Ltd. 324 ITR 396, the relevant para (11) is reproduced below for the sake of ready reference :- "We find that as per this judgment of Hon'ble Delhi High Court, where mixed fund's are used for the purpose of giving interest free advan…

Ats Infrastructure Ltd., New Delhi vs. DCIT, Central Circle, Noida

In the result, Ground Nos

ITA 5601/DEL/2018[2014-15]Status: DisposedITAT Delhi15 Jan 2020AY 2014-15

Bench: Shri Bhavnesh Saini & Shri N.K. Billaiya

For Appellant: Ms. Surbhi Goyal, C.AFor Respondent: Shri Ved Prakash Mishra, Sr. DR
Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “A”: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA.No.3080/Del./2017 ITA.No.5408 & 5601/Del./2018 Assessment Years 2012-2013, 2013-2014 & 2014-2015 The ACIT, M/s. ATS Infrastructure Ltd., 711/92, Deepali, vs., Central Circle, Nehru Place, New Delhi. PIN – 110 019. Noida. PAN AADCA0609B (Appellant) (Respondent) Shri Ved Jain, Advocate And For Assessee : Ms. Surbhi Goyal, C.A. For Revenue : Shri Ved Prakash Mishra, Sr. DR Date of Hearing : 08.01.2020 Date of Pronouncement : 15.01.2020 ORDER PER BHAVNESH SAINI, J.M.…

Ats Infrastructure Ltd., New Delhi vs. DCIT, Central Circle, Noida

In the result, Ground Nos

ITA 5408/DEL/2018[2013-14]Status: DisposedITAT Delhi15 Jan 2020AY 2013-14

Bench: Shri Bhavnesh Saini & Shri N.K. Billaiya

For Appellant: Ms. Surbhi Goyal, C.AFor Respondent: Shri Ved Prakash Mishra, Sr. DR
Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “A”: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA.No.3080/Del./2017 ITA.No.5408 & 5601/Del./2018 Assessment Years 2012-2013, 2013-2014 & 2014-2015 The ACIT, M/s. ATS Infrastructure Ltd., 711/92, Deepali, vs., Central Circle, Nehru Place, New Delhi. PIN – 110 019. Noida. PAN AADCA0609B (Appellant) (Respondent) Shri Ved Jain, Advocate And For Assessee : Ms. Surbhi Goyal, C.A. For Revenue : Shri Ved Prakash Mishra, Sr. DR Date of Hearing : 08.01.2020 Date of Pronouncement : 15.01.2020 ORDER PER BHAVNESH SAINI, J.M.…

M/S. Ats Infrastructure Ltd., New Delhi vs. ACIT, Noida

In the result, Ground Nos

ITA 3080/DEL/2017[2012-13]Status: DisposedITAT Delhi15 Jan 2020AY 2012-13

Bench: Shri Bhavnesh Saini & Shri N.K. Billaiya

For Appellant: Ms. Surbhi Goyal, C.AFor Respondent: Shri Ved Prakash Mishra, Sr. DR
Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “A”: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA.No.3080/Del./2017 ITA.No.5408 & 5601/Del./2018 Assessment Years 2012-2013, 2013-2014 & 2014-2015 The ACIT, M/s. ATS Infrastructure Ltd., 711/92, Deepali, vs., Central Circle, Nehru Place, New Delhi. PIN – 110 019. Noida. PAN AADCA0609B (Appellant) (Respondent) Shri Ved Jain, Advocate And For Assessee : Ms. Surbhi Goyal, C.A. For Revenue : Shri Ved Prakash Mishra, Sr. DR Date of Hearing : 08.01.2020 Date of Pronouncement : 15.01.2020 ORDER PER BHAVNESH SAINI, J.M.…

DCIT, Cir-3(1)(1), Ahmedabad vs. M/S Core Health Care Ltd., Ahmedabad

In the result, appeal filed by the Revenue is dismissed

ITA 1968/AHD/2017[2004-05]Status: DisposedITAT Ahmedabad08 Jan 2020AY 2004-05

Bench: Shri Mahavir Prasad & Shri Amarjit Singh)

For Appellant: Shri O.P. Vaishnav, CIT/DRFor Respondent: Shri S. N. Soparkar, AR
Section 36(1)(iii)

…ave committed an error in deleting the disallowance based on the assessment year 1996-97. He submitted that the Tribunal has erred in relying on the decision of the Apex Court in the case of Munjal Sales Corp. vs. Commissioner of Income Tax reported in [2008] 298 ITR 298 (SC) in view of the fact that the facts of the case of the assessee are not identical to the facts of the case relied upon by the Tribunal. 5. Mr. S.N. Soparkar, learned Senior Counsel appearing with Mr. B.S. Soparkar, learned advocate on behalf of the respondent – assessee has submitted that the ITA Nos. 1968 & 1969/Ahd/2017 5 . A.Ys. 2004-05 &…

ACIT, Cir-11(2), Kolkata vs. M/S Srei Infrastructure Finance Ltd., Kolkata

In the result, the appeal filed by the assessee and Revenue are allowed to the extent indicated above

ITA 2003/KOL/2016[2011-12]Status: DisposedITAT Kolkata31 Dec 2019AY 2011-12

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am Srei Infrastructure Finance Ltd. Vs. Addl. Cit, Range-9, New Delhi D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Assessee) .. (Revenue/Department) Addl. Cit, Range-9, New Delhi Vs. Srei Infrastructure Finance Ltd. D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant) Srei Infrastructure Finance Ltd. Vs. Dcit, Circle-11(2), Kolkata 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Appellant) .. (Respondent) Acit, Circle-11(2), Kolkata Vs. Srei Infrastructure Finance Ltd. 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant)

For Appellant: Shri Vijay Shah & Amit Agarwal, ARFor Respondent: Shri Radhey Shyam, CIT
Section 143(3)Section 14A

…lly generated funds and not from the interest bearing borrowed funds. In this context the AR of the assessee relied, inter-alia, on the principles laid down by the decision of Mon’ble Apex Court in the case of Munjal Sales Corporation -vs- CIT and Anr. (2008) 298 ITR 298 (SC) wherein the Hon’ble Apex Court has held that since the opening balance of own funds as on 01-04-94 was Rs.1.91 crores whereas the loan given to the sister concern was a small amount of Rs. 5 lacs, the profits earned by the assessee during the relevant year were sufficient to cover the impugned loan of Rs. 5 lacs and hence is entitled to clai…

Srei Infrastructure Finance Limited, Kolkata vs. DCIT, Circle-11(2), Kolkata

In the result, the appeal filed by the assessee and Revenue are allowed to the extent indicated above

ITA 1821/KOL/2016[2011-12]Status: DisposedITAT Kolkata31 Dec 2019AY 2011-12

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am Srei Infrastructure Finance Ltd. Vs. Addl. Cit, Range-9, New Delhi D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Assessee) .. (Revenue/Department) Addl. Cit, Range-9, New Delhi Vs. Srei Infrastructure Finance Ltd. D-2, 6Th Floor, Southern Park, Saket Place, New Delhi-110017. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant) Srei Infrastructure Finance Ltd. Vs. Dcit, Circle-11(2), Kolkata 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Appellant) .. (Respondent) Acit, Circle-11(2), Kolkata Vs. Srei Infrastructure Finance Ltd. 86C, Vishwakarma, Topsia Road(South), Kolkata-700046. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs1425L (Respondent) .. (Appellant)

For Appellant: Shri Vijay Shah & Amit Agarwal, ARFor Respondent: Shri Radhey Shyam, CIT
Section 143(3)Section 14A

…lly generated funds and not from the interest bearing borrowed funds. In this context the AR of the assessee relied, inter-alia, on the principles laid down by the decision of Mon’ble Apex Court in the case of Munjal Sales Corporation -vs- CIT and Anr. (2008) 298 ITR 298 (SC) wherein the Hon’ble Apex Court has held that since the opening balance of own funds as on 01-04-94 was Rs.1.91 crores whereas the loan given to the sister concern was a small amount of Rs. 5 lacs, the profits earned by the assessee during the relevant year were sufficient to cover the impugned loan of Rs. 5 lacs and hence is entitled to clai…

Kiri Industries Ltd., Ahmedabad vs. The ACIT., Circle-4, Ahmedabad

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

ITA 3085/AHD/2013[2009-10]Status: DisposedITAT Ahmedabad04 Dec 2019AY 2009-10
For Appellant: Shri T.P. HemaniFor Respondent: Shri Santosh Karnani, Sr. D.R
Section 143(2)Section 143(3)Section 14ASection 234BSection 271(1)

…ollowing decisions:- " CIT vs. Reliance Industries Ltd. 410 ITR 466. " CIT vs. Torrent Power Ltd. -363 ITR 474 (GUJ) " CIT vs. Suzlan Energy Ltd. -354 ITR 630 (GUJ) " CIT vs. Reliance Utilities & Power Ltd. 313 ITR 340 (Bom) " CIT vs. Munjal Sales Corporation 298 ITR 298 (SC) On the other hand, the ld. departmental representative has supported the order of ld. CIT(A). 5. Heard both the sides and perused the material on record. It is noticed that as per balance sheet of the assessee as on 31st March, 2009, the position of interest free fund and investment was as under:- Particulars Balance as at 31.03.09 Page No…

Jt. CIT (OSD), Circle- 7(2)(1), Mumbai vs. Mahindra Cie Automotive Ltd., Mumbai

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

ITA 3121/MUM/2018[2014-15]Status: DisposedITAT Mumbai21 Nov 2019AY 2014-15

Bench: Shri Rajesh Kumar & Shri Amarjit Singhआयकर अपील सं/ I.Ta No.3121/Mum/2018 (िनधा"रण िनधा"रण वष" वष" / / / / Assessment Year:2014-15 िनधा"रण िनधा"रण वष" वष"

For Appellant: Shri Rahul Raman CIT DRFor Respondent: Shri H P Mahajani
Section 14ASection 36(1)(iii)

…jurisdictional High Court in CIT Vs. Reliance utilities & Power Ltd (2009) 313 ITR 340 (Bom) and in the case of CIT Vs.HDFC Bank Ltd (IT Appeal No.330 of 2012) and also Hon'ble Supreme Court decision in the case of Munjal Sales Corporation Vs. Another (2008) 298 ITR 298(SC), ITAT Mumbai in the case of Shrenuj & Co. Ltd A.Y. 2006-07 (In ITA No.8189/Mum/2010 and A.Y. 2007-08 (in ITA No.7948/Mum/2011) and ITAT, Delhi in the case of Lakhani INida Ltd., A.Y. 2006-07 (ITA No.2057/Delhi/2011)” 5. After hearing both the parties and perusing the material available on record, we observe that the assessee has sufficient…

Aquagel Chemicals(Bhavnagar)P. Ltd., Bhavnagar vs. DCIT, Circle-1, Bhavanagar

In the result, appeal of the assessee in ITA No

ITA 424/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad01 Oct 2019AY 2014-15

Bench: Shri Kul Bharat & Shri Waseem Ahmedaquagel Chemicals Vs. Dcit, (Bhavnagar) Pvt. Ltd., Circle – 1, 251, Navagam, Kardej, Bhavnagar. Dist. Bhavnagar – 364 060. [Pan No. Aakca 9462 B] (Appellant) (Respondent) ..

For Appellant: Shri Parimal B. Parmar, A.RFor Respondent: Shri Satish Solanki, Sr. D.R
Section 143(3)Section 14ASection 234A

…R 630 (Guj); " CIT vs. Gujarat Power Corporation Ltd. - 352 ITR 583 (Guj); " CIT vs. Hitachi Home & Life Solutions (I). Ltd. - (2014) 41 taxmann.com 540 (Guj); " CIT vs. Reliance Utilities & Power Ltd. - 313 ITR 340 (Bom); " Munjal Sales Corporation vs. CIT - 298 ITR 298 (SC); In rejoinder, Learned Counsel for the assessee placed reliance working made in the chart. The assessee has stated in chart as under: Particulars Balance as at Balance as at 31.03.2014 (Rs.) 31.03.2013 (Rs.) (A) Interest free funds : Share capital 22,00,00,000 22,00,00,000 Research & Surplus 1,06,49,675 -53,090 23,06,49,675 21,99,46,910…

M/S. Axis Aerospace & Technologies P Ltd., Bangalore vs. Commissioner of Income Tax, Bangalore

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

ITA 766/BANG/2017[2009-10]Status: DisposedITAT Bangalore20 Sept 2019AY 2009-10

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadaleassessment Year : 2009-10 M/S. Axis Aerospace & The Commissioner Of Technologies Pvt. Ltd., Income Tax 54, Richmond Road, Vs. (Appeals) – 14, Bangalore – 560 025. Bangalore. Pan: Aaccb1728K Appellant Respondent

For Appellant: Smt. Sheetal Borkar, AdvocateFor Respondent: Smt. R. Premi, JCIT (DR)
Section 14A

…D(2)(ii). Therefore, we do not find any reason to interfere with the order of the Id.CIT(A). Hence, the appeal filed by the revenue is dismissed. 8. The appellant also wishes to rely on the decision of the Supreme Court in the case of Munjal Sales Corporation 298 ITR 298, the Madras High Court decision in Hotel Savera v CIT 239 ITR 796 and the Bombay High Court in the case of Reliance Utilities and Power Limited 313 ITR 340. Ground on Actual receipt of exempted income by the Appellant 9. The CIT ought to have appreciated the fact that the appellant has not received any income which is exempt from tax. This fact a…

M/S. Khyati Realities Ltd., Ahmedabad vs. ACIT, Circle-2(1)(2), Ahmedabad

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

ITA 552/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad14 Jun 2019AY 2013-14
For Appellant: Shri Tushar Hemani, A.RFor Respondent: Shri M. Anand Kumar, Sr. D.R
Section 115JSection 143(2)Section 143(3)Section 14A

…Ltd. – 354 ITR 630 (Guj) CIT vs. Gujarat Power Corporation Ltd. – 352 ITR 583 (Guj) CIT vs. Hitachi Home & Life Solutions (I). Ltd. – (2014) 41 taxmann.com 540 (Guj) CIT vs. Reliance Utilities & Power Ltd. -313 ITR 340 (Bom) Munjal Sales Corporation vs. CIT- 298 ITR 298 (SC) The ld. counsel has also placed reliance on the decision of Wadhwa Residence Pvt. Ltd. vs. ACIT (2018) 95 taxman.com 294 (Mum-Trib) wherein it is held that assessee had higher amount of interest free funds that invested, it was to be presumed that investment was made out of interest free funds available with assessee. 6. On the other hand,…

Heaven Associates, C/O.Akshat Heaven, Gandhinagar vs. ITO Ward-2, Gandhinagar

In the result, the appeal of the assessee is allowed

ITA 1588/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad27 May 2019AY 2014-15

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 1588/Ahd/2017 ("नधा"रण वष"/Assessment Year : 2014-15) Heaven Associates The Ito बनाम/ C/O.Akshat Heaven Ward-2 Vs. Opp.Sahjanand City, Kudasan Gandhinagar Gandhinagar-382 421 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagfh 8119 R .. (अपीलाथ"/Appellant) (""यथ" / Respondent) अपीलाथ" ओर से/ Appellant By : Shri Praveen Kumar, Sanu, Ar ""यथ" क" ओर से/Respondent By: Shri O.P. Pathak, Sr.Dr

For Appellant: Shri Praveen Kumar, Sanu, ARFor Respondent: Shri O.P. Pathak, Sr.DR
Section 154

…Honours’ read reference (Page No.2-4 Paper Book II). In support of above contention, the assessee further relies on following judicial pronouncements:- - Raghuvir Synthetics Ltd. vs. CIT [36 Taxmann 275 (Gujarat-HC) (2013] - Munjal Sales Corporation v. CIT [298 ITR 298/Taxmann 43(SC)(2008)] - Sunil Goel v. Asst.CIT [118 TTJ (Del) 415, 422-23] - Naresh Fabrics vs. ITO [75 TTJ (Jodh) 386, 392-92] Heaven Associates vs. ITO Asst.Year – 2014-15 Accordingly, from above various citations of the courts in favour of the assessee, it is amply clear that assessee can give loans & advances out of own funds, and there sho…

Dashmesh Steel Centre, U S Nagar vs. ITO, Ward-2(4), Bazpur

In the result, the Appeal of the Assessee is dismissed

ITA 2284/DEL/2018[2010-11]Status: DisposedITAT Delhi19 Mar 2019AY 2010-11

Bench: Sh. H.S. Sidhuassessment Year: 2010-11 Dashmesh Steel Centre, Vs. Acit, Haldwani 3Rd Floor, Main Road, Gadarpur, Aayakar Bhawan, Udham Singh Nagar, Chorgalia Byepass Road, (Pan:Aaefd5859L) Golapar, Hadlwani (Appellant) (Respondent)

For Appellant: Sh. V.K. Tulsian, CAFor Respondent: Sh. SL Anuragi, Sr. DR
Section 142(1)Section 143(2)Section 143(3)Section 147Section 148

…here the assessee has own funds as well as borrowed funds, a presumption can be made that advances given for non business purposes have been made out of own funds. A similar view has been held by the Hon’ble Supreme Court in Munjal Sales Corporation vs. CIT 298 ITR 298(SC). Therefore, considering the above decisions, the contention of the Assessee that no disallowance of interest was called for as it had non-interest bearing funds available in its capital account was not found to be justified by the Ld. CIT(A). However as pointed out by the AO, the Assessee had only funds to the extent of Rs. 1,02,54,062/-…

ACIT, Moradabad vs. M/S. Jubilant Organosyes Ltd., Uttar Pradesh

The appeal is dismissed

ITA 4975/DEL/2012[2008-09]Status: DisposedITAT Delhi12 Mar 2019AY 2008-09

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…hould be presumed to have come out of profits, where profit for year exceeds interest free advances / non-business expenses. Such is also mandate of decision of honourable Supreme Court and several honourable high courts in Munjal Sales Corpn. vs. CIT [(2008) 298 ITR 298 (SC)](Para 17) , CIT v. Reliance Utilities and Power Ltd. [(2009) 313 ITR 340 (Bom.)](Para 10), CIT v. Tin Box Co. [(2003) 260 ITR 637 (Delhi)] (Para 9) , CIT v. South India Corporation (Agencies) Ltd. [209 CTR 233 (Mad)] (Para 18), CIT v. Prem Heavy Engg. Works (P.) Ltd [285 ITR 554/ 150 Taxman 90 (All.)] (Para 5). In view of this, we do not fin…

ACIT, Moradabad vs. M/S Jubliant Organosys Ltd., Uttar Pradesh

The appeal is dismissed

ITA 2596/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…hould be presumed to have come out of profits, where profit for year exceeds interest free advances / non-business expenses. Such is also mandate of decision of honourable Supreme Court and several honourable high courts in Munjal Sales Corpn. vs. CIT [(2008) 298 ITR 298 (SC)](Para 17) , CIT v. Reliance Utilities and Power Ltd. [(2009) 313 ITR 340 (Bom.)](Para 10), CIT v. Tin Box Co. [(2003) 260 ITR 637 (Delhi)] (Para 9) , CIT v. South India Corporation (Agencies) Ltd. [209 CTR 233 (Mad)] (Para 18), CIT v. Prem Heavy Engg. Works (P.) Ltd [285 ITR 554/ 150 Taxman 90 (All.)] (Para 5). In view of this, we do not fin…

Jubilant Organosys Ltd., Noida vs. Addl. CIT, Moradabad

The appeal is dismissed

ITA 2497/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…hould be presumed to have come out of profits, where profit for year exceeds interest free advances / non-business expenses. Such is also mandate of decision of honourable Supreme Court and several honourable high courts in Munjal Sales Corpn. vs. CIT [(2008) 298 ITR 298 (SC)](Para 17) , CIT v. Reliance Utilities and Power Ltd. [(2009) 313 ITR 340 (Bom.)](Para 10), CIT v. Tin Box Co. [(2003) 260 ITR 637 (Delhi)] (Para 9) , CIT v. South India Corporation (Agencies) Ltd. [209 CTR 233 (Mad)] (Para 18), CIT v. Prem Heavy Engg. Works (P.) Ltd [285 ITR 554/ 150 Taxman 90 (All.)] (Para 5). In view of this, we do not fin…

Dlf Hotel Holdings Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 1425/DEL/2016[2011-12]Status: DisposedITAT Delhi28 Feb 2019AY 2011-12

Bench: Sh. Bhavnesh Saini & Sh. N. S. Sainiita No. 1425/Del/2016 : Asstt. Year : 2011-12 Dlf Hotel Holdings Ltd., Vs Dy. Commissioner Of Income 9Th Floor, Dlf Centre, Sansad Tax, Circle-7(1), Marg, New Delhi-110001 New Delhi-110002 (Appellant) (Respondent) Pan No. Aaccd5033D Assessee By : Sh. R. S. Singhvi, Ca & Sh. Satyajeet Goel, Ca Revenue By : Sh. Sanjay I. Bara, Cit Dr Date Of Hearing : 27.02.2019 Date Of Pronouncement : 28.02.2019 Order Per N. S. Saini:

For Appellant: Sh. R. S. Singhvi, CA &For Respondent: Sh. Sanjay I. Bara, CIT DR
Section 143(3)Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHE ‘I-1’, NEW DELHI Before Sh. Bhavnesh Saini, Judicial Member And Sh. N. S. Saini, Accountant Member ITA No. 1425/Del/2016 : Asstt. Year : 2011-12 DLF Hotel Holdings Ltd., Vs Dy. Commissioner of Income 9th Floor, DLF Centre, Sansad Tax, Circle-7(1), Marg, New Delhi-110001 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AACCD5033D Assessee by : Sh. R. S. Singhvi, CA & Sh. Satyajeet Goel, CA Revenue by : Sh. Sanjay I. Bara, CIT DR Date of Hearing : 27.02.2019 Date of Pronouncement : 28.02.2019 ORDER Per N. S. Saini, Accountant Member: This is an appeal filed…