What is South Indian Bank Ltd. v. CIT authority for?

The mixed fund theory is affirmed, holding that no disallowance of interest expenditure under Section 14A can be made if the assessee possesses sufficient non-interest bearing funds, such as capital and reserves, to cover investments made in tax-free securities.

How many judgments cite South Indian Bank Ltd. v. CIT?

508 judgments on BharatTax cite South Indian Bank Ltd. v. CIT (438 ITR 1), spanning 2011 to 2026.

Which sections of the Income Tax Act does South Indian Bank Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 14A, Section 143(3), Section 115JB, Section 8D, Section 153A, Section 36(1)(viia).

South Indian Bank Ltd. v. CIT (438 ITR 1)

Acc Ltd ( Formerly Known As the Associated Cement Companies Ltd), Mumbai vs. Addl CIT RG 1(1), Mumbai

ITA 5655/MUM/2011[2006-07]Status: DisposedITAT Mumbai28 Feb 2023AY 2006-07

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit -Range 1(1) (Formerly Known As The Associated Cement Mumbai Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) M/S. Acc Limited V. Asst. Cit-Ltu (Formerly Known As The Associated Mumbai Cement Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Acit – Ltu V. M/S. Acc Limited 28Th Floor, Centre-1 (Formerly Known As The Associated Cement Companies Ltd.) World Trade Centre, Cuffe Parade Cement House, 121, M.K. Road Mumbai - 400005 Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 143(3)Section 145ASection 251Section 44A

…it is stated that Assessee has own funds in form of Share Capital & reserve to the tune of ₹.2425.27 crores as against investments made in shares for ₹.476.67 crore. Reliance was mainly placed on following decisions. (i) South Indian Bank Ltd. v. CIT [(2021) 438 ITR 1 (SC)] (ii) HDFC Bank v. DCIT [(2016) 383 ITR 529 (Bombay HC)] (iii) CIT v. HDFC Bank Ltd. (366 ITR 505) (Bom.) (iv) Reliance Utilities & Power Limited (313 ITR 340) (Bom.) 103. The Ld.AR of the assessee has alternatively contended that in the case of Ambuja Cement Limited, Mumbai ITAT has considered disallowance u/s 14A @ 1% of exempt income as re…

Addl CIT RG 1(1), Mumbai vs. Acc Ltd, Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3786/MUM/2009[2005-06]Status: DisposedITAT Mumbai28 Feb 2023AY 2005-06

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit – Range-1(1) (Formerly Known As The Associated Mumbai Cement Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Dy. Cit - 1(1) V. M/S. Acc Limited Room No. 79, Aayakar Bhavan (Formerly Known As The Associated Cement Companies Ltd.) M.K. Road, Mumbai – 400020 Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 14ASection 14A(1)

…as stated that Assessee has own funds in form of Share Capital & reserve to the tune of Rs 1597.68 crores as against investments made in shares for Rs 326.69 crore. Reliance was mainly placed on following decisions. (i). South Indian Bank Ltd. v. CIT [(2021) 438 ITR 1 (SC)] (ii). HDFC Bank v. DCIT [(2016) 383 ITR 529 (Bombay HC)] (iii). CIT v. HDFC Bank Ltd. (366 ITR 505) (Bom.) (iv). Reliance Utilities & Power Limited (313 ITR 340) (Bom.) 10. The Ld. DR has relied upon finding given in assessment order and heavily relied on the decision in the case of Williamson Financial Services Limited, (ITA No 154 to 156/G…

Acc Ltd (Formerly Known As the Associated Cement Companies Ltd), Mumbai vs. Addl CIT RG 1(1), Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 3490/MUM/2009[2005-06]Status: DisposedITAT Mumbai28 Feb 2023AY 2005-06

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blem/S. Acc Limited V. Addl. Cit – Range-1(1) (Formerly Known As The Associated Mumbai Cement Companies Ltd.) Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent) Dy. Cit - 1(1) V. M/S. Acc Limited Room No. 79, Aayakar Bhavan (Formerly Known As The Associated Cement Companies Ltd.) M.K. Road, Mumbai – 400020 Cement House, 121, M.K. Road Churchgate, Mumbai-400020 Pan: Aaact1507C (Appellant) (Respondent)

Section 14ASection 14A(1)

…as stated that Assessee has own funds in form of Share Capital & reserve to the tune of Rs 1597.68 crores as against investments made in shares for Rs 326.69 crore. Reliance was mainly placed on following decisions. (i). South Indian Bank Ltd. v. CIT [(2021) 438 ITR 1 (SC)] (ii). HDFC Bank v. DCIT [(2016) 383 ITR 529 (Bombay HC)] (iii). CIT v. HDFC Bank Ltd. (366 ITR 505) (Bom.) (iv). Reliance Utilities & Power Limited (313 ITR 340) (Bom.) 10. The Ld. DR has relied upon finding given in assessment order and heavily relied on the decision in the case of Williamson Financial Services Limited, (ITA No 154 to 156/G…

Shri Sourabh Agrawal, Korba(Cg) vs. JCIT, Korba Range, Korba(Cg)

In the result, appeal of the assessee is allowed in terms of our aforesaid observations to the extent relevant

ITA 85/BIL/2015[2010-11]Status: DisposedITAT Raipur06 Feb 2023AY 2010-11

Bench: Shri Ravish Sood & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No. 85/Rpr/2015 "नधा"रण वष" / Assessment Year : 2010-11 Sourabh Agrawal Prop. M/S. B.P Agrawal, Agrasen Marg, Korba (C.G.) Pan : Afdpa6889A .......अपीलाथ" / Appellant बनाम / V/S. The Jt. Commissioner Of Income Tax, Korba Range, Korba (C.G.) ….…""यथ" / Respondent

For Appellant: Shri N.C. Gupta, Adv

Section 143(3)Section 36(1)(iii)Section 37

…fficient to meet its investment. Hence, it could be presumed that the investments were made from the interest free funds available with the assessee.” Apart from that we find, the Hon’ble Supreme Court in the case of the South Indian Bank Ltd. Vs. CIT (2021) 438 ITR 1 (SC), had observed that in a situation where the assessee has mixed fund (made up partly of interest free funds and partly of interest bearing funds) and payment is made out of that mixed fund, then, the investment must be considered to have been made out of the interest free funds. 12. We, thus, in terms of our aforesaid observations, find no mer…

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

…interest expenditure cannot be disallowed under section 14A of the Act, where the assessee had sufficient surplus funds and there was no finding by the assessing officer of any direct nexus of borrowed funds with investments: - South Indian Bank Ltd. v. CIT: 438 ITR 1 (SC) - Godrej & Boyce Manufacturing Company Ltd. VS. DCIT: 394 ITR 449(SC) - Pr. CIT vs. GMM Pfaulder Ltd.: ITA No. 506 of 2017 dated 31.07.2017 (Guj) - CIT v. Max India Ltd.: 388 ITR 81 (P&H) - CIT vs. Suzlon Energy Ltd.:[2013] 215 Taxman 272 (Gujarat) - CIT vs. M/s. Ashok Commercial Enterprises: ITA No. No.2985 of 2009 (Bom) - Lubi Submeribles Lt…

DCIT, Moradabad vs. M/S. Badaun Zila Sahkari Bank Ltd., Badaun

In the result, the appeal of the Revenue in ITA No

ITA 5272/DEL/2015[2010-11]Status: DisposedITAT Delhi30 Jan 2023AY 2010-11

Bench: Shri Chandra Mohan Garg & Shri N.K. Billaiya

For Appellant: NoneFor Respondent: Shri Kanv Bali, Sr. DR

Section 143(3)Section 36(1)(vii)Section 36(1)(viia)

…urse of assessment proceedings, the assessee claimed that deduction u/s 36(1)(viia) of the Act be allowed to it on the basis of scheme contained in the section as well as the decision of the Hon'ble Supreme Court in the case of M/s Southern Technologies Ltd 228 CTR 440 for which the assessee filed revised computation. 5. The said claim was rejected by the Assessing Officer on the ground that deduction u/s 36(1)(viia) of the Act can be claimed only upto the limit of provision made and the assessee has furnished only a revised computation of income without filing any revised return of income. 6. The assessee…

Sbi Capital Markets Ltd, Mumbai vs. Asst CIT Ltu, Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 1511/MUM/2014[2005-06]Status: DisposedITAT Mumbai13 Jan 2023AY 2005-06