S.P. Jaiswal Estates (P.) Ltd. v. ACIT

29 Taxmann.com 221Income Tax Appellate Tribunal2013#7582 most cited

What is S.P. Jaiswal Estates (P.) Ltd. v. ACIT authority for?

Where the Assessing Officer fails to establish a nexus between borrowed funds and advances made, a presumption arises that the advances were made out of the assessee's own interest-free funds.

15

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2025.

Also referred to as

S.P. Jaiswal Estates (P.) Ltd. v. ACIT · section 36(1)(iii) · section 143(3) · interest-free advances · borrowed funds · nexus · presumption · own funds · commercial expediency

Also reported as

140 ITD 19

Sections most often in play

Section 143(3)Section 115JBSection 142(1)Section 14ASection 2(24)(x)Section 250Section 36(1)(iii)Section 40a(ia)

Issues it is cited on

section 40a(ia)section 36(1)(iii)commercial expediencybook profitssection 115jsection 115jbsection 36(1)section 36section 115section 143(2)section 143(1)section 11

Judgments citing S.P. Jaiswal Estates (P.) Ltd. v. ACIT

Nagreeka Foils Ltd., Kolkata vs. D.C.I.T., Circle - 3, Kolkata

In the result, all the three appeals filed by the assessee for AYs

ITA 1930/KOL/2024[2011-2012]Status: DisposedITAT Kolkata22 Jul 2025AY 2011-2012

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 143(3)Section 14ASection 250Section 36

…ise that investments would be out of interest free funds generated or available with the company." Further support may be drawn from: • J.K. Industries Ltd. v. CIT [1999] 238 ITR 820 (Cal.)- Hon'ble Calcutta HC • S.P. Jaiswal Estates (P.) Ltd. vs. ACIT [2013] 140 ITD 19 (Kolkata Trib.) (TM) Therefore, in the absence of any nexus established by the AO between the borrowed funds and the advances, the presumption must operate in assessee's favour. 2. Loans Taken Were Not Used for the Advances It is respectfully submitted that the term loan of ₹2.74 crores and working capital loan of ₹7.95 crores were taken specifica…

Nagreeka Foils Ltd., Kolkata vs. D.C.I.T., Circle - 3(1), Kolkata

In the result, all the three appeals filed by the assessee for AYs

ITA 1788/KOL/2024[2010-2011]Status: DisposedITAT Kolkata22 Jul 2025AY 2010-2011

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 143(3)Section 14ASection 250Section 36

…ise that investments would be out of interest free funds generated or available with the company." Further support may be drawn from: • J.K. Industries Ltd. v. CIT [1999] 238 ITR 820 (Cal.)- Hon'ble Calcutta HC • S.P. Jaiswal Estates (P.) Ltd. vs. ACIT [2013] 140 ITD 19 (Kolkata Trib.) (TM) Therefore, in the absence of any nexus established by the AO between the borrowed funds and the advances, the presumption must operate in assessee's favour. 2. Loans Taken Were Not Used for the Advances It is respectfully submitted that the term loan of ₹2.74 crores and working capital loan of ₹7.95 crores were taken specifica…

Deputy Commissioner of Income Tax, Circle-11(1), Kolkata vs. South City Projects (Kolkata) Limited, Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1096/KOL/2023[2020-21]Status: DisposedITAT Kolkata24 Oct 2024AY 2020-21

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

Section 36(1)(iii)

…आयकर अपील"य अ"धकरण, कोलकाता पीठ “बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA "ी राजेश कुमार, लेखा सट"य एवं "ी "द"प कुमार चौबे, "या"यक सद"य के सम" [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 1096/Kol/2023 Assessment Year: 2020-21 DCIT, Circle-11(1), Kolkata Vs. South City Projects (Kolkata) Limited (PAN: AAACD 8933 A) ( अपीलाथ" ) Respondent / ""यथ" Appellant / Date of Hearing / सुनवाई 31.07.2024 क" "त"थ Date of Pronouncement/ 24.10.2024 आदेश उ"घोषणा क" "त"थ For the Appellant/ Shri Akkal Dudhwewala, A.R "नधा"रती क" ओर से Smt. Vid…

Ram Ratan Jangir, Amer vs. Income Tax Officer, Ward -7(2), Jaipur

In the result ground no. 1 raised by the

ITA 550/JPR/2024[2013-14]Status: DisposedITAT Jaipur22 Jul 2024AY 2013-14

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. Anoop Bhatiya, CAFor Respondent: Smt. Monisha Choudhary (Addl. CIT)
Section 143(3)Section 147Section 148

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”SMC” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA No. 550/JP/2024 fu/kZkj.k o"kZ@Assessment Years : 2013-14 cuke Ram Ratan Jangir Income Tax Officer, Vs. Vill and Post Rampura Dabri, Ward-7(2), Ward No. 4, Amer Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AANPJ 9614 L vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Sh. Anoop Bhatiya, CA jktLo dh vksj ls@ R…

ACIT, Circle-2(1), Visakhapatnam vs. Vizag Seaport Pvt. Ltd., Visakhapatnam

In the result, appeal of the Revenue is dismissed

ITA 383/VIZ/2017[2012-2013]Status: DisposedITAT Visakhapatnam12 Apr 2024AY 2012-2013

Bench: Shri Duvvuru Rl Reddy, Hon‟Ble & Shri S Balakrishnan, Hon‟Ble(Through Hybrid Hearing) आयकरअपीलसं./ I.T.A. No. 383/Viz/2017 (धनधाारणिर्ा/ Assessment Year : 2012-13) The Assistant Commissioner Of Vs. M/S. Vizag Seaport Pvt Ltd., Income Tax, Administrative Block, Circle-5(1), S4 Gallery, Port Area, Visakhapatnam. Visakhapatnam – 530035. (अपीलाथी/ Appellant) (प्रत्यथी/ Respondent) [Pan :Aabcv2484K] अपीलाथी की ओर से/ Assessee By : Sri Fenil A Bhatt, Ar प्रत्याथी की ओर से/ Revenue By : Dr. Satyasai Rath, Cit-Dr सुनिाई की तारीख/ Date Of Hearing : 15/02/2024 घोर्णा की तारीख/Date Of : /04/2024 Pronouncement O R D E R Pers. Balakrishnan:

For Appellant: Sri Fenil A Bhatt, ARFor Respondent: Dr. Satyasai Rath, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 194CSection 194JSection 36(1)(iii)Section 40

…0 of 2012 dated 23/07/2014. The Ld. AR also placed reliance on the following case laws: 1. CIT vs. Reliance Utilities & Power Ltd (2009) 313 ITR 340 (Bom.) 2. CIT vs. HDFC Bank Limited (2016) 383 ITR 529 (Bom.) 3. S.P. Jaiswal Estates (P.) Ltd vs. CIT (2012) 140 ITD 19 (Mumbai ITAT) Further, the Ld. AR also submitted that the capital work-in- progress in page No. 9 of the paper book stood at Rs. 2,36,04,888/- whereas own funds included the cash generated from operations stood at Rs. 83,76,74,466/- and Rs. 38,58,79,722/- respectively. Therefore he pleaded that own funds should be assumed to be used for the capit…

Geetanjali Hotels & Promoters Pvt Ltd, Jaipur vs. ACIT, Jaipur

In the result, the appeals of the assessee in ITA No

ITA 299/JPR/2017[2013-14]Status: DisposedITAT Jaipur26 Sept 2022AY 2013-14
For Appellant: Shri Mahendra Gargieya ( Adv.) &For Respondent: Ms. Runi Pal (Addl.CIT)a
Section 143(3)Section 14ASection 251(2)Section 36(1)(iii)

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR MkWa- ,l-lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. No. 298 & 299/JP/2017 fu/kZkj.k o"kZ@Assessment Years : 2012-13 & 2013-14 cuke Geetanjali Hotels & Promoters Pvt. ACIT/DCIT, Ltd., Vs. Circle-2, 41, Sanjay Marg, Hathroi Fort, Jaipur. Jaipur-302001. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAACG8756G vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Mahend…

Geetanjali Hotels & Promoters Pvt Ltd, Jaipur vs. ACIT, Jaipur

In the result, the appeals of the assessee in ITA No

ITA 298/JPR/2017[2012-13]Status: DisposedITAT Jaipur26 Sept 2022AY 2012-13
For Appellant: Shri Mahendra Gargieya ( Adv.) &For Respondent: Ms. Runi Pal (Addl.CIT)a
Section 143(3)Section 14ASection 251(2)Section 36(1)(iii)

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR MkWa- ,l-lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. No. 298 & 299/JP/2017 fu/kZkj.k o"kZ@Assessment Years : 2012-13 & 2013-14 cuke Geetanjali Hotels & Promoters Pvt. ACIT/DCIT, Ltd., Vs. Circle-2, 41, Sanjay Marg, Hathroi Fort, Jaipur. Jaipur-302001. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAACG8756G vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Mahend…

Jt. Commissioner of Income Tax(OSD), Central Cirlce-1(4), Hyderabad vs. Medha Servo Drives Private Limited, Hyderabad

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

ITA 655/HYD/2018[2014-15]Status: DisposedITAT Hyderabad24 Aug 2021AY 2014-15

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri V. Shiva KumarFor Respondent: Shri Sunil Kumar Pandey, DR
Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “A”, HYDERABAD (Through Virtual Hearing) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA Nos.654 & 655/Hyd/2018 AYs: 2013-14 and 2014-15 JCIC (OSD), VS. Medha Servo Drives Central Circle-1(4), Private Limited, Hyderabad. Hyderabad. PAN: AABCM 3917 A PAN: AABCM 3917 A (Appellant) (Respondent) Assessee by: Shri V. Shiva Kumar Revenue by: Shri Sunil Kumar Pandey, DR C.O. No. 23/Hyd/2018 (A.Y.: 2014-15) (In ITA No.655/Hyd/2018) JCIC (OSD), VS. Medha Servo Drives Central Circle-1(4), Private Limited, Hyderabad. Hyderabad. P…

Jt. Commissioner of Income Tax(OSD), Central Cirlce-1(4), Hyderabad vs. Medha Servo Drives Private Limited, Hyderabad

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

ITA 654/HYD/2018[2013-14]Status: DisposedITAT Hyderabad24 Aug 2021AY 2013-14

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri V. Shiva KumarFor Respondent: Shri Sunil Kumar Pandey, DR
Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “A”, HYDERABAD (Through Virtual Hearing) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA Nos.654 & 655/Hyd/2018 AYs: 2013-14 and 2014-15 JCIC (OSD), VS. Medha Servo Drives Central Circle-1(4), Private Limited, Hyderabad. Hyderabad. PAN: AABCM 3917 A PAN: AABCM 3917 A (Appellant) (Respondent) Assessee by: Shri V. Shiva Kumar Revenue by: Shri Sunil Kumar Pandey, DR C.O. No. 23/Hyd/2018 (A.Y.: 2014-15) (In ITA No.655/Hyd/2018) JCIC (OSD), VS. Medha Servo Drives Central Circle-1(4), Private Limited, Hyderabad. Hyderabad. P…

ACIT, Circle - 35, Kolkata vs. M/S. Kwality Steel Processors, Kolkata

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

ITA 1411/KOL/2017[2014-15]Status: DisposedITAT Kolkata03 May 2019AY 2014-15

Bench: Sh. J.Sudhakar Reddy & Sh.S.S.Viswanethra Ravivs M/S. Kwality Steel Processors, Acit, Circle-35, 4, India Exchange Place, 2Nd Floor, Kolkata-700107. Kolkata-700001. Pan-Aaefk2197G (Appellant) (Respondent) Appellant By Sh.C.J.Singh, Jcit Sr.Dr Respondent By Sh. Miraj D.Shah, Fca Date Of Hearing 05.02.2019 Date Of Pronouncement 03.05.2019

Section 36(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “A”, KOLKATA BEFORE SH. J.SUDHAKAR REDDY, ACCOUNTANT MEMBER & SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER vs M/s. Kwality Steel Processors, ACIT, Circle-35, 4, India Exchange Place, 2nd Floor, Kolkata-700107. Kolkata-700001. PAN-AAEFK2197G (Appellant) (Respondent) Appellant by Sh.C.J.Singh, JCIT Sr.DR Respondent by Sh. Miraj D.Shah, FCA Date of Hearing 05.02.2019 Date of Pronouncement 03.05.2019 ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER This appeal filed by the Revenue against the order dated 27.03.2017 passed by CIT(A)-10, Kolkata for AY 2014-15. 2. Ground…

Jaya Hospitalas, Warangal, Hyderabad vs. Addl. CIT, Warangal Range, Warangal

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

ITA 202/HYD/2016[2011-12]Status: DisposedITAT Hyderabad20 Jul 2018AY 2011-12

Bench: Shri B. Ramakotaiah & Shri Challa Nagendra Prasad

For Appellant: Shri K.A. Sai PrasadFor Respondent: Smt. N. Swapna, DR
Section 36(1)(iii)Section 37(1)Section 40

…s further submitted that assessee had adequate funds to advance and relied on the following case law:- (i) Sri Ganesh Bottles Pvt Ltd vs. DCIT (ITA Nos. 616 to 619/Hyd/2015, dated 30.08.2017) and decision in the case of S.P. Jaiswal Estates (P.) Ltd vs. ACIT (29 Taxmann.com 221). 5. Learned Departmental Representative however submitted that the assessee had advanced various funds to the HUF and the argument that assessee has own funds and has not diverted any borrowed funds was not contended either before the A.O. or before the CIT(A), hence that contention cannot be accepted. Learned Departmental Representative…

I.T.O WD - 6(2), Kolkata. vs. M/S Axix Overseas Ltd, Kolkata

In the result, Revenue’s appeal is partly allowed

ITA 532/KOL/2013[2009-10]Status: DisposedITAT Kolkata31 Oct 2017AY 2009-10

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 143(3)Section 194A

…he subsidiary for some business purposes, the assessee would, in our opinion, ordinarily be entitled to deduction of interest on its borrowed loans.” The ld. AR also relied on the order of this Tribunal in the case of S.P.Jaswal Pvt. Ltd. vs. ACIT reported in 140 ITD 19 wherein it was held as under : “What is material is that the assessee being one hundred per cent holding company of 'H' Ltd., had a deep interest in the subsidiary and that the advances given to the subsidiary company were for the purposes of business. When an assessee gives an interest free advance to a one hundred per cent owned subsidiary for i…

Axix Overseas Ltd, Kolkata vs. ITO, Ward - 7(1), Kolkata

In the result, Revenue’s appeal is partly allowed

ITA 376/KOL/2013[2009-10]Status: DisposedITAT Kolkata31 Oct 2017AY 2009-10

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 143(3)Section 194A

…he subsidiary for some business purposes, the assessee would, in our opinion, ordinarily be entitled to deduction of interest on its borrowed loans.” The ld. AR also relied on the order of this Tribunal in the case of S.P.Jaswal Pvt. Ltd. vs. ACIT reported in 140 ITD 19 wherein it was held as under : “What is material is that the assessee being one hundred per cent holding company of 'H' Ltd., had a deep interest in the subsidiary and that the advances given to the subsidiary company were for the purposes of business. When an assessee gives an interest free advance to a one hundred per cent owned subsidiary for i…

E-City Investments & Holdings Comapny P. Ltd, Mumbai vs. DCIT Cir 8(1), Mumbai

In the result appeal filed by the assessee for the Asst

ITA 1153/MUM/2015[2008-09]Status: DisposedITAT Mumbai15 Feb 2017AY 2008-09

Bench: Shri B.R.Baskaran (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2008-09

For Appellant: Shri. Jay BhansaliFor Respondent: Shri. Suman Kumar
Section 115JSection 143(1)Section 143(3)(ii)Section 271(1)(c)Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “E”, MUMBAI BEFORE SHRI B.R.BASKARAN (AM) AND SHRI RAM LAL NEGI (JM) Assessment Year: 2008-09 E-City Investments & Holdings The Dy.CIT, Circle – 8(1), Company Private Limited. Room No. 210, 2nd Floor, 844/4, Shah Industrial Estate, Aayakar Bhavan, Off. New Link Road, Vs. Mumbai-400 020. Opp. Laxmi Industrial Estate, Andheri (West), Mumbai- 400053. PAN:- AAACE8030F (Appellant) (Respondent) Appellant by : Shri. Jay Bhansali. Respondent by : Shri. Suman Kumar Date of Hearing: 10/02/2017 Date of Pronouncement: 15/02/2017 O R D E R PER RAM LAL NEGI, JM This…

E-City Investments & Holdings Co. Pvt. Ltd., Mumbai vs. D.C.I.T. RG. 8(1) (OSD), Mumbai

The appeal of the assessee is allowed

ITA 8382/MUM/2011[2008-09]Status: DisposedITAT Mumbai03 Feb 2016AY 2008-09

Bench: Shri Joginder Singh & Shri Ashwani Tanejaassessment Year: 2008-09 E-City Investments & Holdings Dcit, Company Private Limited, Range-8(1)(Osd), बनाम/ 844/4, Shah Industrial Estate, Aayakar Bhavan, Vs. Off. New Link Road, Opp. M.K. Road, Laxmi Industrial Estate, Mumbai-400020 Andheri (West), Mumbai-400053 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaace8030F "नधा"रती क" ओर से / Assessee By Shri Vijay Mehta राज"व क" ओर से / Revenue By Mr.J. Saravanan -Dr

Section 143(3)Section 36(1)(iii)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ई,मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “E”, MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी अ"नी तनेजा, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri Ashwani Taneja, Accountant Member Assessment Year: 2008-09 E-City Investments & Holdings DCIT, Company Private Limited, Range-8(1)(OSD), बनाम/ 844/4, Shah Industrial Estate, Aayakar Bhavan, Vs. Off. New Link Road, Opp. M.K. Road, Laxmi Industrial Estate, Mumbai-400020 Andheri (West), Mumbai-400053 ("नधा"रती /Assessee) (राज"व /Revenue) PAN. No.AAACE8030F "नधा"रती क" ओर से / Assessee by Shr…