S.A. Builders Ltd. v. CIT

288 ITR 1Supreme Court of India2007#26 most cited

What is S.A. Builders Ltd. v. CIT authority for?

Interest paid on borrowed funds cannot be disallowed merely because the assessee made interest-free advances, provided those advances were made for business purposes and commercial expediency. The Revenue cannot dictate a businessman's commercial decisions, but the assessee bears the onus to prove the business expediency.

1,484

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2008 to 2026.

Also referred to as

S.A. Builders Ltd. v. CIT · 288 ITR 1 · Section 36(1)(iii) · commercial expediency · business expediency · interest-free advances · disallowance of interest · onus to prove business purpose · borrowed funds · Revenue interference

Also reported as

158 Taxmann 74158 Taxmann.com 74

Sections most often in play

Section 143(3)Section 36(1)(iii)Section 14ASection 1961Section 148Section 147Section 40(a)(ia)Section 142(1)
Read the full judgment

Issues it is cited on

commercial expediencyinterest free advancessection 36(1)(iii)business expediencydisallowance of interest expendituresection 36(1)section 36revenue expendituresection 37(1)section 37capital expendituresection 14a

Judgments citing S.A. Builders Ltd. v. CIT

M/S. Odisha Hydro Power Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 278/CTK/2019[2014-15]Status: DisposedITAT Cuttack22 Jun 2022AY 2014-15

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

M/S. Odisha Hydro Power Corporation Limited, Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhuban\Eswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 277/CTK/2019[2013-14]Status: DisposedITAT Cuttack22 Jun 2022AY 2013-14

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

DCIT, Corporate Circle-1(2), Bhubaneswar vs. M/S. Orissa Hydro Power Corporation Ltd., Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 32/CTK/2017[2012-13]Status: DisposedITAT Cuttack22 Jun 2022AY 2012-13

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

M/S. Odisha Hydro Power Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 13/CTK/2017[2012-13]Status: DisposedITAT Cuttack22 Jun 2022AY 2012-13

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

ACIT, Corporate Circle-1(2), Bhubaneswar vs. M/S. Orissa Hydro Power Corporation Ltd., Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 287/CTK/2016[2011-12]Status: DisposedITAT Cuttack22 Jun 2022AY 2011-12

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

M/S. Odisha Hydro Power Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 283/CTK/2016[2011-12]Status: DisposedITAT Cuttack22 Jun 2022AY 2011-12

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

M/S. Odisha Hydro Power Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 282/CTK/2016[2010-11]Status: DisposedITAT Cuttack22 Jun 2022AY 2010-11

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

M/S. Odisha Hydro Power Corporaton Ltd., Bhubaneswar vs. ACIT, Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 339/CTK/2015[2009-10]Status: DisposedITAT Cuttack22 Jun 2022AY 2009-10

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

DCIT, Bhubaneswar vs. M/S. Orissa Hydro Power Corporation Ltd., Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 332/CTK/2015[2009-10]Status: DisposedITAT Cuttack22 Jun 2022AY 2009-10

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

ACIT, Bhubaneswar vs. Orissa Hydro Power Corporation Ltd., Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 225/CTK/2015[2006-07]Status: DisposedITAT Cuttack22 Jun 2022AY 2006-07

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

DCIT, Circle-1(1), Bhubaneswar vs. M/S. Orissa Hydro Power Corporation Ltd., Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 256/CTK/2014[2008-09]Status: DisposedITAT Cuttack22 Jun 2022AY 2008-09

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

DCIT, Circle-1(1), Bhubaneswar vs. M/S. Orissa Hydro Power Corporation Ltd., Bhubaneswar

In the result, appeals of the revenue as well as the assessee are partly allowed for statistical purposes

ITA 255/CTK/2014[2007-08]Status: DisposedITAT Cuttack22 Jun 2022AY 2007-08

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpia

…IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE BEFORE S/SHRI GEORGE MATHAN, JUDICIAL JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.225/CTK/2015: .225/CTK/2015: Assessment Year : Assessment Year : 2006-07 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007 ITA No.255/CTK/2014: Assessment Year : 2007-08 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256/CTK/2014: Assessment Year : 2008 ITA No.256…

M/S. Deepali Company Privae Limited, Bangalore vs. Income Tax Officer, Ward- 2(1)(2), Bangalore

In the result, the appeal filed by assessee stands dismissed

ITA 585/BANG/2020[2016-17]Status: DisposedITAT Bangalore21 Jun 2022AY 2016-17

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2016-17 M/S. C. Krishniah Chetty & Co. Pvt. Ltd., The Income Tax (Earlier Known As :Deepali Co. Officer, Pvt. Ltd.) Ward – 2 (1)(2), 35, Commercial Street, Bangalore. Bangalore – 560 001. Vs. Pan: Aaacd5120H Appellant Respondent : Shri Narendra Sharma, Assessee By Advocate : Smt. Priyadarshini Revenue By Basaganni, Addl. Cit (Dr) Date Of Hearing : 01-06-2022 Date Of Pronouncement : 21-06-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against Order Dated 03.0.2020 Passed By Ld.Cit(A)-2, Bangalore For A.Y. 2016-17 On The Following Grounds Of Appeal: “1.1 On The Facts & Circumstances Of The Case, The Learned Commissioner Of Income Tax Erred In Not Allowing Business Loss For The Year Of Rs. 114,66.766/- On The Ground That The Business Of The Assessee Company Is Closed & There Are No Receipts From Operation Of Business.

For Respondent: Shri Narendra Sharma
Section 143(2)Section 24Section 72

…amily, that was pending before “National Company Law Appellate Tribunal”, and therefore, the assessee could not concentrate much into the business. He placed reliance on the decision of Hon’ble Supreme Court in case of S.A. Builders vs. CIT reported in (2007) 288 ITR 1. 6. The Ld.AR further submitted that, it is not for the revenue to decide as to when a businessman should continue or to close its business and a temporary lull in the business cannot be treated as closure of such business. 7. The Ld.AR vehemently submitted that, the assessee incurred expenses in terms of salary, vehicle maintenance, taxes which we…

O3 Capital Global Advisory Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-5(1)(2), Bangalore

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

ITA 931/BANG/2018[2013-14]Status: DisposedITAT Bangalore08 Jun 2022AY 2013-14

Bench: Shri Chandra Poojari & Shri George George K.Assessment Year: 2013-14

For Appellant: Shri G.S. Prashanth, A.RFor Respondent: Smt. Priyadarshini Basaganni, D.R

…ee conducts its business is its prerogative and it is not for the revenue authorities to decide what is necessary for the assessee and what is not. Reliance is placed on the decisions of the Supreme Court in the case of S A Builders Ltd. vs. CIT, reported in 288 ITR 1 and in the case of CIT vs. Edward Keventer Private Limited, reported in 115 ITR 149. Reliance is also placed on the following decisions in support of the contentions canvassed supra: • PCIT vs. V.S. Dempo Holding (P.) Ltd., 130 taxmann.com 456 (Born.) B. Nanji & Co. vs. DCIT, 124 taxmann.com 357 (Gujarat) • CIT vs. Alapatt Brothers, 73 taxmann.com…

M/S Xindia Steels Limited, Koppal vs. The Assistant Commissioner of Income Tax Circle-1, Bellary

In the result, the appeal by the assessee is allowed

ITA 361/BANG/2019[2014-15]Status: DisposedITAT Bangalore31 May 2022AY 2014-15

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy Sassessment Year : 2014-15

For Appellant: Smt. Soumya K., AdvocateFor Respondent: Shri Sankar Ganesh, Jt.CIT(DR)(ITAT), Bengaluru
Section 143

…ricultural land bearing huge interest expenses of Rs.2,37,76,873 for borrowings from banks. The interest bearing borrowed funds were diverted as interest free loans to individual persons. Considering the decision of the Hon’ble Supreme Court in S.A. Builders (288 ITR 1) wherein it was held that disallowance of interest can be made on borrowed capital when the commercial expediency of utilization of such loans was not specified and proved by the assessee, and other judicial pronouncements, the AO disallowed the proportionate interest @ 14.50% and added Rs.2,37,76,873 claimed as interest cost to the income of the a…

Deputy Commissioner of Income Tax, Circle- 7(1)(2), Bangalore vs. M/S. Valdel Projects Corporation Private Limited, Bangalore

In the result, the appeal by the revenue is dismissed

ITA 2515/BANG/2019[2015-16]Status: DisposedITAT Bangalore30 May 2022AY 2015-16

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy Sassessment Year : 2015-16

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Shri Sankar Ganesh, Jt.CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 143(3)Section 36(1)(iii)

…bmitted that the assessee not charging interest on loan given to its subsidiaries has got no relevance for allowability of interest u/s. 36(1)(iii) and in this regard relied on the decision of the Supreme Court in the case of S A builders Ltd vs CIT(A) (2007) 288 ITR 1(SC). 9. We heard the rival submissions and perused the material on record. The assessee has entered into a debenture subscription agreement dated 31st of May 2011 with L&T infrastructure finance company limited whereby the investor has agreed to provide financial assistance of Rs.50,00,00,000 to the assessee by subscription to unlisted secured red…

M/S. Chambal Fertilizers and Chemicals Limited, Kota vs. Assistant Commissioner of Income Tax, Circle-2, Kota

In the result, appeal of the revenue is dismissed

ITA 744/JPR/2018[2014-15]Status: DisposedITAT Jaipur13 May 2022AY 2014-15
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…assessee and the amount of internal accruals is far in excess of the investments in subsidiaries and, hence, there can be no disallowance of interest. 15.5. The ld. A/R further submitted that reliance placed by the AO on the decision of SA Builders [(2007) 288 ITR 1(SC)] is misplaced as that decision was a case where admittedly borrowed funds were used to make advances. However, in the present case there is no evidence adduced by the revenue to establish that borrowed funds were used by the assessee and the submissions made above clearly demonstrate that the shares were not acquired out of borrowed funds. F…

Chambal Fertilisers and Chemicals Limited, Kota vs. ACIT, Kota

In the result, appeal of the revenue is dismissed

ITA 291/JPR/2017[2013-14]Status: DisposedITAT Jaipur13 May 2022AY 2013-14
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…assessee and the amount of internal accruals is far in excess of the investments in subsidiaries and, hence, there can be no disallowance of interest. 15.5. The ld. A/R further submitted that reliance placed by the AO on the decision of SA Builders [(2007) 288 ITR 1(SC)] is misplaced as that decision was a case where admittedly borrowed funds were used to make advances. However, in the present case there is no evidence adduced by the revenue to establish that borrowed funds were used by the assessee and the submissions made above clearly demonstrate that the shares were not acquired out of borrowed funds. F…

Chambal Fertilisers and Chemicals Limited, Kota vs. DCIT, Kota

In the result, appeal of the revenue is dismissed

ITA 201/JPR/2017[2012-13]Status: DisposedITAT Jaipur13 May 2022AY 2012-13
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…assessee and the amount of internal accruals is far in excess of the investments in subsidiaries and, hence, there can be no disallowance of interest. 15.5. The ld. A/R further submitted that reliance placed by the AO on the decision of SA Builders [(2007) 288 ITR 1(SC)] is misplaced as that decision was a case where admittedly borrowed funds were used to make advances. However, in the present case there is no evidence adduced by the revenue to establish that borrowed funds were used by the assessee and the submissions made above clearly demonstrate that the shares were not acquired out of borrowed funds. F…

Kamal Translifters, Ahmedabad vs. ACIT, Circle-2(1)(2), Ahmedabad

In the result, appeal of the assessee is dismissed

ITA 88/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad13 May 2022AY 2015-16

Bench: S/Shri Pramod M. Jagtap & T.R. Senthil Kumarassessment Year :2015-16 Kamal Translifters Acit, Cir.2(1)(2) A/29, Pushp Tenament Vs Ahmedabad. B/H. Moti Hotel, Isanpur Ahmedabad. Pan : Aaeck 3005 Q अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Revenue By : Shri S.N. Divatia, Ar & Shri Samir Vora, Ar Assessee By : Shri S.S.Shukla, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 04/05/2022 घोषणा क" तार"ख /Date Of Pronouncement: 13/05/2022 आदेश/O R D E R Per T.R. Senthil Kumar: This Appeal Is Filed By The Assessee Against Order Dated 22.11.2018 Passed By The Commissioner Of Income-Tax (Appeals)-2, Ahmedabad Relating To The Asst.Year 2015-16. 2. Brief Facts Of The Case Is That The Assessee Is Closely Held Company Engaged In The Business Of Service Provider; Providing Services Of Goods Transport Agency & Business Support Services, Transportation Of Heavy Vehicle Chassis By Road. For The Asst.Year 2015-16, The Assessee Filed Its Return Of Income On 29.9.2015 Declaring Total Income Of Rs.57,87,230/-. The Case Of The Assessee Was Selected For Scrutiny Assessment. During The Course Of 2

For Appellant: Shri S.S.Shukla, Sr.DRFor Respondent: Shri S.N. Divatia, AR and Shri Samir Vora, AR
Section 36(1)Section 36(1)(Hi)Section 36(1)(iii)

…ons have taken place with M/s.Kamal Freight Pvt.Ltd. as running account, which is an associate concern of the assessee- company and having business of the similar nature. Thus, strongly relying upon Hon’ble Supreme Court decision in the case of S.A. Builders, 288 ITR 1, it is prayed that no disallowance of interest 5 could be made when interest free advance has been given out for commercial expediency. 7. Per contra, the ld.DR appearing for the Department submits that the assessee’s arguments that the payment was made for business expediency, however, the assessee has not able to demonstrate exigency for advanc…