Pr. CIT v. Reebok India Company

259 Taxmann 100High Court2018#10869 most cited

What is Pr. CIT v. Reebok India Company authority for?

Interest paid on borrowed funds advanced to a subsidiary for business purposes is deductible, provided the borrowed funds are not used for the assessee's personal benefit or non-business purposes.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2019 to 2025.

Also referred to as

Pr. CIT v. Reebok India Company · Section 36(1)(iii) · deduction of interest · borrowed funds · subsidiary · business purpose · personal benefit · commercial expediency · 409 ITR 587

Also reported as

409 ITR 587

Sections most often in play

Section 143(3)Section 1961 - Sections 14ASection 1962 - Rule 8DSection 22Section 23Section 23(1)(c)Section 23(5)Section 80-IA(5)

Issues it is cited on

section 80ia(8)section 194hsection 80icsection 194jsection 40a(2)(b)business expediencysection 2(22)section 2(22)(e)section 40a(2)section 80iacommercial expediencysection 80i

Judgments citing Pr. CIT v. Reebok India Company

Mahendra Singh Ratnawat, Jaipur vs. Deputy Commissioner of Income Tax, Central Circle-2, Jaipur

In the result, appeal of the assessee is partly allowed

ITA 223/JPR/2024[2018-19]Status: DisposedITAT Jaipur15 Sept 2025AY 2018-19
For Appellant: Shri S.R. Sharma, C.AFor Respondent: Mrs. Alka Gautam, CIT-DR
Section 115BSection 132Section 133ASection 142(1)Section 143(2)Section 250Section 37Section 44ASection 69A

…आयकर अपीलीय अधिकरण, जयपुर न्यायपीठ, जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR डा० एस. सीतालक्ष्मी, न्यायिक सदस्य एवं श्री गगन गोयल, लेखा सदस्य, के समक्ष BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI GAGAN GOYAL, AM आयकर अपील सं./ITA No. 223/JPR/2024 निर्धारण वर्ष / Assessment Year : 2018-19 Sh. Mahendra Singh Ratnawat 53 Golimar Garden, Sahkar Marg, Bais Godam, Jaipur. बनाम Dy. Commissioner of Income Vs. Tax, Central Circle-2, Jaipur. स्थायीलेखा सं. / जीआईआर सं./PAN/GIR No.: AFBPR0768Q अपीलार्थी / Appellant प्रत्यर्थी / Respondent निर्धारिती की ओरसे / Assesseeby : Shri S.R. Sharma, C.A.,…

ITO, New Delhi vs. M/S Ansal Housing & Construction Ltd., New Delhi

In the result, the cross-objection filed by the assessee is dismissed

ITA 2731/DEL/2010[2007-08]Status: DisposedITAT Delhi26 Jul 2024AY 2007-08

Bench: Shri G.S.Pannu & Shri Kul Bharat[Assessment Year : 2007-08] Dcit, Vs Ansal Housing & Construction Ltd., Central Circle-20, Ugf-15, Indraprastha Building, 21, New Delhi. Barakhamba Road, New Delhi. Pan-Aaaca0377R Appellant Respondent

Section 143(3)Section 14ASection 80Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “A” BENCH: NEW DELHI BEFORE SHRI G.S.PANNU, VICE PRESIDENT & SHRI KUL BHARAT, JUDICIAL MEMBER [Assessment Year : 2007-08] DCIT, vs Ansal Housing & Construction Ltd., Central Circle-20, UGF-15, Indraprastha Building, 21, New Delhi. Barakhamba Road, New Delhi. PAN-AAACA0377R APPELLANT RESPONDENT C.O.No.222/Del/2010 [In ITA No.2731/Del/2010] [Assessment Year : 2007-08] Ansal Housing & Construction Ltd., vs DCIT, UGF-15, Indraprastha Building, 21, Central Circle-20, Barakhamba Road, New Delhi. New Delhi. PAN-AAACA0377R APPELLANT RESPONDENT Appellant by Ms. Kirti Sankratyaya…

DCIT Circle 13(2)(2), Mumbai vs. Nandanbala Commercials Private Limited, Mumbai

In the result, the appeal filed by the revenue is dismissed and cross objection filed by the assesse is also dismissed

ITA 1134/MUM/2023[2016-17]Status: DisposedITAT Mumbai29 Jan 2024AY 2016-17

Bench: Shri Aby T Varkey & Shri Amarjit Singhdy. Commissioner Of Vs. Nandanbala Commercials Income Tax Circle 13(2)(2) Private Limited Room No. 452, 4 Th Floor, (Formerly Known As Sanjay Infraspace Limited) Aayakar Bhavan, 1401-A, Wing One Bkc, M.K. Road, Plot No. C-66, G-Block, Mumbai – 400020 Bkc, Bandra-East Mumbai -400 092 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aavcs1575L Appellant .. Respondent

For Appellant: Madhur AgarwalFor Respondent: HM Bhatt
Section 143(2)Section 36(1)(ii)

…arly supported the assessee contention that no part of borrowed funds was diverted for non business purpose. Therefore, the assessee was clearly entitled to deduction of interest paid on Term Loans to bank. d) In the case of PCIT vs Reebok India Co. (2018) in 409 ITR 587 (Del) the Hon'ble Delhi High Court held that the money borrowed to advance the same to a subsidiary for some business purpose would qualify for deduction of interest, so long as the money borrowed is not utilized by the assessee for personal benefit and not for business purpose. e) The Hon'ble Supreme Court in Madhav Prasad Jatia vs CIT (1979) in…

DCIT, C-11(1), New Delhi vs. Hero Motocorp Ltd., New Delhi

Appeal of the Revenue is dismissed

ITA 1982/DEL/2019[2014-15]Status: DisposedITAT Delhi03 Feb 2023AY 2014-15

Bench: Shri Narendra Kumar Billaiya & Shri Kul Bharat

Section 14ASection 2(22)(e)Section 40Section 40a

…1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA No. _1982/Del/2019 [Assessment Year: 2014-15 DCIT, Circle-11(1), Vs M/s Hero Motocorp ltd., New Delhi. 34, Basant Lok, Vasant Vihar, New Delhi-110057. PAN- AAACH0812J APPELLANT RESPONDENT Assessee represented by Shri Ajay Vohra, Sr. Advocate; Shri Rohit Jain, Advocate; & Ms.Manisha Sharma, Adv. Department represented by Shri K.M. Mahesh, CIT(DR) Date of hearing 22.11.2022 Date of pronouncement 03.02.2023 O R D E R PER KUL BHARAT, JM: This appeal, b…

M/S Ranwa Land Developers Pvt. Ltd., 4, D-Villa, Station Road, Jaipur vs. ITO, Ward-3(2), Jaipur

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

ITA 329/JPR/2022[2014-15]Status: DisposedITAT Jaipur21 Dec 2022AY 2014-15
For Appellant: Shri P.C. Parwal, CAFor Respondent: Smt. Monisha Choudhary, JCIT
Section 142(1)Section 143(1)Section 143(2)

…ce if the holding company advances borrowed money to a subsidiary and the same is used by the subsidiary for some business purposes, the assessee would, ordinarily be entitled to deduction of interest on its borrowed loans PCIT Vs. Reebok India Company (2018) 409 ITR 587 (Delhi) (HC) The relevant Para 7 of the order reads as under:- M/S. RANWA LAND DEVELOPERS PVT LTD. VS ITO, WARD 3(2), JAIPUR 7. The Supreme Court in S.A. Builders Ltd. vs. CIT(A) (2006) 206 CTR (SC) 631: (2007) 1 SCC 781, had interpreted s. 36(1)(iii) of the Act to observe that interest paid on capital borrowed for the purpose of business is to…

Hero Moto Corp Ltd., New Delhi vs. Neac, Delhi

ITA 706/DEL/2021[2016-17]Status: DisposedITAT Delhi26 Nov 2021AY 2016-17

Bench: Shri Kul Bharat & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Surendra Pal
Section 143(3)Section 144BSection 144CSection 144C(13)Section 145Section 1lSection 80ISection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL [DELHI BENCH “I–1”: NEW DELHI] BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER (Through Video Conferencing) ITA. No. 706/Del/2021 (Assessment Year : 2016-17) M/s. Hero Moto Corp. Ltd., National The Grand Plaza, Plot No. 2, Vs. Nelson Mandela Road, e-Assessment Centre, Vasant Kunj, Phase – II, New Delhi – 110 070. Delhi. PAN: AAACH0812J AND STAY APP. No. 127/Del/2021. [ in ITA. No. 706/Del/2021 ] (Assessment Year : 2016-17) M/s. Hero Moto Corp. Ltd., National The Grand Plaza, Plot No. 2, Nelson Mandela Road, Vs. e-Assessment Centre, Vasant…

Hero Motocrop Ltd., New Delhi vs. ACIT, Circle- 11(1), New Delhi

The appeal of the assessee is partly allowed

ITA 9187/DEL/2019[2015-16]Status: DisposedITAT Delhi13 Apr 2021AY 2015-16

Bench: Shri Sudhanshu Srivastava & Shri O.P. Kantassessment Year: 2015-16

Section 115JSection 143(3)Section 144CSection 145ASection 80ISection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘I-1’ NEW DELHI (Through Video Conferencing) BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER & SHRI O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2015-16 Hero Motocorp Ltd. Vs. ACIT 34, Community Centre, Circle-11(1) Basant Lok, Vasant Vihar, New Delhi. New Delhi. PAN - AAACH0812J Assessee by Shri Ajay Vohra, Sr. Adv. Shri Gaurav Jain, Adv. Ms. Monisha Sharma, Adv. Revenue by Shri Surenderpal, CIT DR Date of Hearing 15.01.2021 Date of Pronouncement 13.04.2021 ORDER PER SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER: This appeal is filed against the assessment orde…

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

…ills 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. Dalmia Cement P. Ltd., (2002) 254 ITR 377(Del) viii. PCIT v. Reebok India Company [2018] 409 ITR 587 (Delhi) ix. CIT v. Raghuvir Synthetics Ltd [2013] 354 ITR 222 (Gujarat) x. Q PCIT v. Chain House International (P.) Ltd. [2018] 98 taxmann.com 47 (Madhya Pradesh) xi. John Laing International Ltd. v. DCIT [2013] 145 ITD 145 (Delhi Trib.) xii. Km. Preeti Singh v. ITO [2019] 176 ITD 137 (Delhi - Trib.) 5. According to the ld. AR, the assessee is…

M/S. Dharampal Satyapal Ltd., Delhi vs. ACIT, New Delhi

ITA 1380/DEL/2017[2012-13]Status: DisposedITAT Delhi07 Oct 2020AY 2012-13

Bench: Shri Amit Shukla & Sh. Prashant Maharishi(Through Video Conferencing) Assessment Year: 2012-13 M/S. Dharampal Satyapal Ltd. Acit, 1711, S. P. Mukherjee Marg, Vs Central Circle – 29, Delhi-110006 New Delhi Pan No. Aaacd0132H (Appellant) (Respondent) Appellant By Sh. R. S. Singhavi, Ca Sh. Satyajeet Goel, Ca Respondent By Sh. Sanjay I. Bara, Cit Dr Date Of Hearing: 28/08/2020 Date Of Pronouncement: 07/10/2020 Order

Section 115JSection 143Section 144CSection 14ASection 14A(2)Section 36Section 43(5)(d)Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘I-1’, NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SH. PRASHANT MAHARISHI, ACCOUNTANT MEMBER (Through Video Conferencing) Assessment Year: 2012-13 M/s. Dharampal Satyapal Ltd. ACIT, 1711, S. P. Mukherjee Marg, Vs Central Circle – 29, Delhi-110006 New Delhi PAN No. AAACD0132H (APPELLANT) (RESPONDENT) Appellant by Sh. R. S. Singhavi, CA Sh. Satyajeet Goel, CA Respondent by Sh. Sanjay I. Bara, CIT DR Date of hearing: 28/08/2020 Date of Pronouncement: 07/10/2020 ORDER PER PRASHANT MAHARISHI, AM: 1. This appeal is filed by M/s Dharmpal Satyapal & co, (The…

DCIT, New Delhi vs. M/S Dharampal Satyapal Ltd., Delhi

ITA 3883/DEL/2016[2011-12]Status: DisposedITAT Delhi18 Apr 2019AY 2011-12

Bench: Shri H. S. Sidhu & Shri Prashant Maharishi

For Appellant: Shri R. S. Singhvi, CAFor Respondent: Shri Sanjay I Bara, CIT DR
Section 142Section 147Section 153Section 153ASection 201(1)Section 36Section 40Section 40A(3)

…Dharampal Satyapal Ltd Vs, DCIT ITA No. 3738, 3739/Del/2016 (A) & ITA No. 3882 & 3883/Del/2016(R) Assessment Year: 2010-11 & 2011-12 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ―I-1‖: NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 3738, 3739/Del/2016 (Assessment Year: 2010-11, 2011-12) Dharampal Satyapal Ltd, Vs. DCIT, 1711, S. P. Mukherjee Marg, Central Circle-29, Delhi New Delhi PAN: AAACD0132H (Appellant) (Respondent) ITA No. 3882 & 3883/Del/2016 (Assessment Year: 2010-11 & 2011-12) DCIT, Vs. Dharampal Satyapal Ltd, Central Circle-29, 1711, S. P. Mukh…

Pr. CIT v. Reebok India Company (259 Taxmann 100) — Cited in 10 Judgments | BharatTax