South Indian Bank Ltd. v. CIT

438 ITR 1Supreme Court of India2021#132 most cited

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.

508

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2011 to 2026.

Also referred to as

South Indian Bank Ltd. v. CIT · South Indian Bank · 438 ITR 1 · Section 14A · disallowance of interest expenditure · mixed fund theory · non-interest bearing funds · tax-free investments · exempt income · Section 8D · expenditure relating to exempt income

Also reported as

130 Taxmann.com 178283 Taxmann 17810 SCC 153228 CTR 440

Sections most often in play

Section 14ASection 143(3)Section 115JBSection 8DSection 153ASection 36(1)(viia)Section 36(1)(vii)Section 36(1)(iii)
Read the full judgment

Issues it is cited on

section 10(33)section 80absection 10(15)section 80msection 54esection 14a(1)section 36(1)(viii)section 54ecsection 14a(2)section 36(1)(vii)disallowance under section 14adisallowance of interest expenditure

Judgments citing South Indian Bank Ltd. v. CIT

DCIT, Lucknow vs. M/S U.P. State Sugar Corporation Ltd., Lucknow

In the result, the appeals of the Revenue are dismissed and the appeal of the assessee is partly allowed for statistical purposes

ITA 485/LKW/2019[2013-14]Status: DisposedITAT Lucknow16 May 2025AY 2013-14

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

Section 14A

…I.T.A. No.227/Lkw/2020, 229/Lkw/20, 587/Lkw/19, 485/Lkw/19, 588/Lkw/19 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.227/Lkw/2020 Assessment Year: 2011-12 U.P. State Sugar Corporation Ltd. Vs. Dy.C.I.T., Vipul Khand, Gomti Nagar, Range-VI, Lucknow. Lucknow. PAN:AAACU3394C (Appellant) (Respondent) I.T.A. No.229/Lkw/2020 Assessment Year: 2011-12 I.T.A. No.587/Lkw/2019 Assessment Year: 2012-13 I.T.A. No.485/Lkw/2019 Assessment Year: 2013-14 I.T.A. No.588/Lkw/2019 Assessment Year: 2014-15 Dy.…

M/S. Jindal Saw Ltd., Delhi vs. DCIT, New Delhi

In the result, the appeal is dismissed

ITA 2758/DEL/2015[2007-08]Status: DisposedITAT Delhi07 May 2025AY 2007-08

Bench: Shri M. Balaganesh & Shri Yogesh Kumar U.S.

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Rajesh Kumar Dhanesta, Sr. DR
Section 143(3)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA Nos. 2758 & 2759/Del/2015 (Assessment Years: 2007-08 & 2008-09) Jindal Saw Ltd, Vs. DCIT, 28, Najafgarh Road, Circle-13(2), Delhi-110015 Delhi (Appellant) (Respondent) PAN: AABCS7280C ITA Nos. 3016 & 3017/Del/2015 (Assessment Years: 2007-08 & 2008-09) DCIT, Vs. Jindal Saw Ltd, Circle-13(2), (formerly known as M/s. Delhi Sar Pipe Ltd) 28, Najafgarh Road, Delhi-110015 (Appellant) (Respondent) PAN: AABCS7280C Assessee by : Shri Rohit Jain, Adv Shri Tavish Verma, Adv…

Chimanlal Maneklal Securities Private Limited, Mumbai vs. Income Tax Officer, Aayakar Bhawan, Mumbai

In the result, appeal of the assessee is partly allowed

ITA 127/MUM/2025[2016-17]Status: DisposedITAT Mumbai06 May 2025AY 2016-17

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Shri Om Kandalkar,ARFor Respondent: Shri Kiran Unavekar, (Sr. DR)
Section 10(34)Section 115JSection 143(3)Section 14A

…bearing funds were more than the investments in tax free securities, no disallowance of interest expenditure u/s.14A can be made. Hon'ble Supreme Court in the case of CIT vs UTI Bank Ltd. [2022] 142 taxmann.com 136 and in South Indian Bank Ltd. v. CIT [2021] 438 ITR 1,likewise held Page 8 ITA No. 127/Mum/2025 Α.Υ. 2016-2017 Chimanlal Maneklal Securities Private Limited that since interest free own funds available with assessee exceeded their investments in tax-free securities, investments would be presumed to be made out of assessee's own funds and proportionate disallowance was not warranted under section 14A o…

DCIT Circle- 1, Ltu, New Delhi vs. Mawana Sugar Ltd., New Delhi

Appeal is partly allowed as above and the appeal of the Revenue is dismissed as above

ITA 5984/DEL/2019[2016-17]Status: DisposedITAT Delhi30 Apr 2025AY 2016-17

Bench: Shri Challa Nagendra Prasad & Shri Avdhesh Kumar Mishra

Section 115JSection 14ASection 36(1)(iii)

…274 ITR 354 (All) (v) Britannia Industries Ltd. 280 ITR 525 (Cal) (vi) Reliance Utilities and Power Ltd. 313 ITR 340 (Bom) (vii) East India Pharmaceutical Works Ltd. 224 ITR 627 (SC) (viii) Munjal Sales Corporation 298 ITR 298 (SC) (ix) South Indian Bank Ltd. 438 ITR 1 (SC) 5.3 The Ld. AR contended that the Hon'ble Supreme Court in the cases of East India Pharmaceutical Works Ltd. (supra), Munjal Sales Corporation (supra) and South Indian Bank Ltd. (supra) had also approved the mixed fund theory, inasmuch as, in South Indian Bank Ltd. (supra), it had been held by the Apex Court that no disallowance of interest c…

Assistant Commissioner of Income Tax Ltu Circle 1 Chennai, Chennai vs. E I D Parry India Limited, Chennai

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes and the appeal filed by the Revenue is dismissed

ITA 3251/CHNY/2024[2012-13]Status: DisposedITAT Chennai21 Apr 2025AY 2012-13

Bench: Shri George George Kand Shri S.R. Raghunathait(Tp)A. Nos.:105, 106, 107/Chny/2024 & Ita No.3113/Chny/2024 िनधा"रण वष"/Assessment Years: 2011-12, 2012-13, 2013-14 & 2014-15 M/S. E.I.D. Parry India Ltd., The Deputy Commissioner Of No. 234, Dare House, Nsc Vs. Income Tax, Bose Road, Parrys Corner, Large Taxpayer Unit -1, Chennai 600 001. Chennai. [Pan: Aaace-0702-C] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Shri A. Sasikumar, CIT
Section 143(1)Section 143(2)Section 250Section 92BSection 92C

…estments in shares, etc. and pleaded that the disallowance under section 14A of the Act r.w Rule 8D(2)(ii) of interest expenditure should be deleted by relying upon the judgement of the Hon’ble Supreme Court in the case of South Indian Bank Ltd. v. CIT (2021) 438 ITR 1(SC). The assessee also prayed to delete the addition made under section Rule 8D(2)(iii). After considering the submissions of the assessee, the CIT(A) partly allowed the grounds raised by the assessee. 15. On being aggrieved by the impugned order, the assessee is in appeal before the Tribunal. Though the ld. Counsel for the assessee fairly concede…

M/S. Eid Parry India Ltd., Chennai vs. DCIT, Ltu-1, Chennai

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes and the appeal filed by the Revenue is dismissed

ITA 3113/CHNY/2024[2014-15]Status: DisposedITAT Chennai21 Apr 2025AY 2014-15

Bench: Shri George George Kand Shri S.R. Raghunathait(Tp)A. Nos.:105, 106, 107/Chny/2024 & Ita No.3113/Chny/2024 िनधा"रण वष"/Assessment Years: 2011-12, 2012-13, 2013-14 & 2014-15 M/S. E.I.D. Parry India Ltd., The Deputy Commissioner Of No. 234, Dare House, Nsc Vs. Income Tax, Bose Road, Parrys Corner, Large Taxpayer Unit -1, Chennai 600 001. Chennai. [Pan: Aaace-0702-C] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Shri A. Sasikumar, CIT
Section 143(1)Section 143(2)Section 250Section 92BSection 92C

…estments in shares, etc. and pleaded that the disallowance under section 14A of the Act r.w Rule 8D(2)(ii) of interest expenditure should be deleted by relying upon the judgement of the Hon’ble Supreme Court in the case of South Indian Bank Ltd. v. CIT (2021) 438 ITR 1(SC). The assessee also prayed to delete the addition made under section Rule 8D(2)(iii). After considering the submissions of the assessee, the CIT(A) partly allowed the grounds raised by the assessee. 15. On being aggrieved by the impugned order, the assessee is in appeal before the Tribunal. Though the ld. Counsel for the assessee fairly concede…

Combined Foods (P) Limited, Ernakulam vs. Income Tax Officer, Corporate Ward-1(1), Kochi

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

ITA 862/COCH/2023[2014-15]Status: DisposedITAT Cochin08 Apr 2025AY 2014-15

Bench: Shri Inturi Rama Rao

For Appellant: Sri.P.M.Veeramani, CAFor Respondent: Smt.Leena Lal, Senior AR
Section 143(3)Section 14ASection 36(1)(iii)Section 41(1)Section 43(1)

…called for. It is further argued that the amounts which are already disallowed u/s.36(1)(iii) cannot be again added u/s.14A of the Act and he also placed reliance on the judgment of the Hon’ble Supreme Court in the case of South Indian Bank Ltd. v. CIT (2021) 438 ITR 1 (SC). It is further submitted that for the purpose of calculating disallowance under clause (iii) of Rule 8D of the Income Tax Rules, the only investment which yielded exempt income alone should be considered. 5. Having heard the rival submissions, I am of the considered opinion that it is now settled position of law that when own funds of the ass…

O E N India Limited, Kochi vs. DCIT, Corporate Cir 2(1), Kochi

In the result, ground No.2 filed by the assessee stands allowed

ITA 861/COCH/2023[2018-19]Status: DisposedITAT Cochin08 Apr 2025AY 2018-19

Bench: Shri George George K, Vice- & Shri Inturi Rama Rao

For Appellant: Sri.Radhesh Bhatt, CAFor Respondent: Smt.Leena Lal, Sr.AR
Section 10Section 10(1)Section 143(3)Section 14ASection 250Section 40

…ties have not disputed the fact the own funds far exceeds the investment made which yielded the exempt income. Therefore, it is settled position of principles of law that as held by the Hon’ble Supreme Court in the case of South Indian Bank Ltd. v. CIT (2021) 438 ITR 1 (SC) wherein it is held that investments would be presumed to be made from assessee’s own funds if own funds far exceeds the investments. Thus, in view of the settled position of law, we direct the AO to delete the addition of interest of Rs.4,64,888. 11. As regards the disallowance under clause (iii) of Rule 8D(2), on perusal of the assessment ord…

O E N India Limited, Kochi vs. ITO Corporate Ward-2(2), Kochi

In the result, ground No.2 filed by the assessee stands allowed

ITA 860/COCH/2023[2016-17]Status: DisposedITAT Cochin08 Apr 2025AY 2016-17

Bench: Shri George George K, Vice- & Shri Inturi Rama Rao

For Appellant: Sri.Radhesh Bhatt, CAFor Respondent: Smt.Leena Lal, Sr.AR
Section 10Section 10(1)Section 143(3)Section 14ASection 250Section 40

…ties have not disputed the fact the own funds far exceeds the investment made which yielded the exempt income. Therefore, it is settled position of principles of law that as held by the Hon’ble Supreme Court in the case of South Indian Bank Ltd. v. CIT (2021) 438 ITR 1 (SC) wherein it is held that investments would be presumed to be made from assessee’s own funds if own funds far exceeds the investments. Thus, in view of the settled position of law, we direct the AO to delete the addition of interest of Rs.4,64,888. 11. As regards the disallowance under clause (iii) of Rule 8D(2), on perusal of the assessment ord…

O E N India Limited, Kochi vs. ACIT Corporate Circle-2(1), Kochi

In the result, ground No.2 filed by the assessee stands allowed

ITA 859/COCH/2023[2012-13]Status: DisposedITAT Cochin08 Apr 2025AY 2012-13

Bench: Shri George George K, Vice- & Shri Inturi Rama Rao

For Appellant: Sri.Radhesh Bhatt, CAFor Respondent: Smt.Leena Lal, Sr.AR
Section 10Section 10(1)Section 143(3)Section 14ASection 250Section 40

…ties have not disputed the fact the own funds far exceeds the investment made which yielded the exempt income. Therefore, it is settled position of principles of law that as held by the Hon’ble Supreme Court in the case of South Indian Bank Ltd. v. CIT (2021) 438 ITR 1 (SC) wherein it is held that investments would be presumed to be made from assessee’s own funds if own funds far exceeds the investments. Thus, in view of the settled position of law, we direct the AO to delete the addition of interest of Rs.4,64,888. 11. As regards the disallowance under clause (iii) of Rule 8D(2), on perusal of the assessment ord…

Asstt. Commissioner of Income Tax, CC-1, Lucknow, Aayakar Bhawan, Ashok Marg vs. Apco Infratech Pvt. Ltd., Vibhuti Khand Gomti Nagar Lko

In the result, appeals vide

ITA 623/LKW/2024[2018-19]Status: DisposedITAT Lucknow02 Apr 2025AY 2018-19

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 143(1)Section 143(2)Section 143(3)Section 80I

…1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JUDICIAL MEMBER I.T.A. No.17/Lkw/2024 Assessment Years:2018-19 M/s APCO Infratech Pvt. Ltd., Vs. Dy./A.C.I.T.-1, B-9, Vibhuti Khand, (Central-1), Gomti Nagar, Lucknow Lucknow. PAN:AADCA5639H (Appellant) (Respondent) I.T.A. No.356 & 357/Lkw/2020 Assessment Years:2016-17 & 17-18 M/s APCO Infratech Pvt. Ltd., Vs. A.C.I.T.-1, B-9, Vibhuti Khand, (Central-1), Gomti Nagar, Lucknow Lucknow. PAN:AADCA5639H (Appellant) (Respondent) I.T.A. No.453 & 454/Lkw/2020 Assessment Y…

M/S Apco Infratech Pvt. Ltd., Lucknow vs. D/ACIT-1, Central-1, Lucknow

In the result, appeals vide

ITA 17/LKW/2024[2018-19]Status: DisposedITAT Lucknow02 Apr 2025AY 2018-19

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 143(1)Section 143(2)Section 143(3)Section 80I

…1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JUDICIAL MEMBER I.T.A. No.17/Lkw/2024 Assessment Years:2018-19 M/s APCO Infratech Pvt. Ltd., Vs. Dy./A.C.I.T.-1, B-9, Vibhuti Khand, (Central-1), Gomti Nagar, Lucknow Lucknow. PAN:AADCA5639H (Appellant) (Respondent) I.T.A. No.356 & 357/Lkw/2020 Assessment Years:2016-17 & 17-18 M/s APCO Infratech Pvt. Ltd., Vs. A.C.I.T.-1, B-9, Vibhuti Khand, (Central-1), Gomti Nagar, Lucknow Lucknow. PAN:AADCA5639H (Appellant) (Respondent) I.T.A. No.453 & 454/Lkw/2020 Assessment Y…

M/S. Apco Infratech Pvt. Ltd., Lucknow vs. ACIT-I, Lucknow

In the result, appeals vide I

ITA 357/LKW/2020[2017-18]Status: DisposedITAT Lucknow02 Apr 2025AY 2017-18

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 143(1)Section 143(2)Section 143(3)Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH 'A', LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JUDICIAL MEMBER I.T.A. No.17/Lkw/2024 Assessment Years:2018-19 M/s APCO Infratech Pvt. Ltd., B-9, Vibhuti Khand, Gomti Nagar, Lucknow. PAN:AADCA5639H (Appellant) Vs. Dy./A.C.I.T.-1, (Central-1), Lucknow (Respondent) I.T.A. No.356 & 357/Lkw/2020 Assessment Years:2016-17 & 17-18 M/s APCO Infratech Pvt. Ltd., B-9, Vibhuti Khand, Gomti Nagar, Lucknow. PAN:AADCA5639H (Appellant) Vs. A.C.I.T.-1, (Central-1), Lucknow (Respondent) I.T.A. No.453 & 454/Lkw/2020 Assessment Ye…

M/S. Apco Infratech Pvt. Ltd., Lucknow vs. ACIT-1, Lucknow

In the result, appeals vide

ITA 356/LKW/2020[2016-17]Status: DisposedITAT Lucknow02 Apr 2025AY 2016-17

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 143(1)Section 143(2)Section 143(3)Section 80I

…1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JUDICIAL MEMBER I.T.A. No.17/Lkw/2024 Assessment Years:2018-19 M/s APCO Infratech Pvt. Ltd., Vs. Dy./A.C.I.T.-1, B-9, Vibhuti Khand, (Central-1), Gomti Nagar, Lucknow Lucknow. PAN:AADCA5639H (Appellant) (Respondent) I.T.A. No.356 & 357/Lkw/2020 Assessment Years:2016-17 & 17-18 M/s APCO Infratech Pvt. Ltd., Vs. A.C.I.T.-1, B-9, Vibhuti Khand, (Central-1), Gomti Nagar, Lucknow Lucknow. PAN:AADCA5639H (Appellant) (Respondent) I.T.A. No.453 & 454/Lkw/2020 Assessment Y…

DCIT (Ltu), New Delhi vs. M/S. Mawana Sugar Ltd., New Delhi

In the result, all the appeals filed by the Revenue for AYs 2006-07, 2012-

ITA 6081/DEL/2016[2012-13]Status: DisposedITAT Delhi26 Mar 2025AY 2012-13

Bench: Shri Satbeer Singh Godara & Shris.Rifaur Rahman

For Appellant: Shri Taran Deep Singh, AdvocateFor Respondent: Ms. Baljeet Kaur, CIT DR
Section 2Section 2(47)Section 391

…and ITA No.457& 5830/DEL/2016 ITA No.5489 to 5490/DEL/2018 ITA No.516 & 6081/DEL/2016 ITA No.5835 & 5836/DEL/2018 reserves. In this regard Ld AR relied upon decisions in case of Reliance Utilities reported in 313 ITR 340(Bom) and South India Bank reported din 438 ITR 1(SC). Ld AR thereafter submitted that the Ld CIT(A) has also not properly appreciated the facts of the case. It was submitted that as regards investments made in JEW (i.e Equity Share investment of Rs 11cr and Preference Share Investment in 7 cr) which now vest with Siel Holdings Limited as per SOA, now carry no debt attached. As regard other loans…

Siel Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the appeals filed by the Revenue for AYs 2006-07, 2012-

ITA 6301/DEL/2015[2011-12]Status: DisposedITAT Delhi26 Mar 2025AY 2011-12

Bench: Shri Satbeer Singh Godara & Shris.Rifaur Rahman

For Appellant: Shri Taran Deep Singh, AdvocateFor Respondent: Ms. Baljeet Kaur, CIT DR
Section 2Section 2(47)Section 391

…and ITA No.457& 5830/DEL/2016 ITA No.5489 to 5490/DEL/2018 ITA No.516 & 6081/DEL/2016 ITA No.5835 & 5836/DEL/2018 reserves. In this regard Ld AR relied upon decisions in case of Reliance Utilities reported in 313 ITR 340(Bom) and South India Bank reported din 438 ITR 1(SC). Ld AR thereafter submitted that the Ld CIT(A) has also not properly appreciated the facts of the case. It was submitted that as regards investments made in JEW (i.e Equity Share investment of Rs 11cr and Preference Share Investment in 7 cr) which now vest with Siel Holdings Limited as per SOA, now carry no debt attached. As regard other loans…

Siel Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the appeals filed by the Revenue for AYs 2006-07, 2012-

ITA 6300/DEL/2015[2003-04]Status: DisposedITAT Delhi26 Mar 2025AY 2003-04

Bench: Shri Satbeer Singh Godara & Shris.Rifaur Rahman

For Appellant: Shri Taran Deep Singh, AdvocateFor Respondent: Ms. Baljeet Kaur, CIT DR
Section 2Section 2(47)Section 391

…and ITA No.457& 5830/DEL/2016 ITA No.5489 to 5490/DEL/2018 ITA No.516 & 6081/DEL/2016 ITA No.5835 & 5836/DEL/2018 reserves. In this regard Ld AR relied upon decisions in case of Reliance Utilities reported in 313 ITR 340(Bom) and South India Bank reported din 438 ITR 1(SC). Ld AR thereafter submitted that the Ld CIT(A) has also not properly appreciated the facts of the case. It was submitted that as regards investments made in JEW (i.e Equity Share investment of Rs 11cr and Preference Share Investment in 7 cr) which now vest with Siel Holdings Limited as per SOA, now carry no debt attached. As regard other loans…

Condis India Healthcare Private Limited, Thiruvananthapuram vs. ACIT, Circle-1(1), Thiruvananthapuram

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

ITA 296/COCH/2024[2018-2019]Status: DisposedITAT Cochin11 Mar 2025AY 2018-2019

Bench: Shri Inturi Rama Rao & Shri Soundararajan K.Assessment Year : 2018-19

For Respondent: Shri Rajakannan
Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH : COCHIN BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER Assessment Year : 2018-19 M/s. Condis India Healthcare Pvt. Ltd., The Assistant Avittom Residency, Commissioner of Anamugam, Income Tax, Anayara Post, Circle – 1 (1), Thiruvananthapuram – Trivandrum. Vs. 695 029. PAN: AADCC2525Q APPELLANT RESPONDENT : Shri Rajakannan, Assessee by Advocate : Shri Sanjit Kumar Das, Revenue by CIT-DR : 17-12-2024 Date of Hearing : 11-03-2025 Date of Pronouncement ORDER PER SOUNDARARAJAN K., JUDICIAL MEMBER This is an appeal filed…

Chimanlal Maneklal Securities Private Limited, Mumbai vs. Income Tax Officer, Aayakar Bhawan, Mumbai

In the result, both the appeals are partly allowed

ITA 126/MUM/2025[2015-16]Status: DisposedITAT Mumbai03 Mar 2025AY 2015-16

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Shri K. Gopal & Ms Neha Paranjpe,ARsFor Respondent: Shri Mahesh Pamnani (Sr. DR)
Section 143(3)Section 14A

…bearing funds were more than the investments in tax free securities, no disallowance of interest expenditure u/s. 14A can be made. Hon'ble Supreme Court in the case of CIT vs UTI Bank Ltd. [2022] 142 taxmann.com 136 and in South Indian Bank Ltd. v. CIT [2021] 438 ITR 1,likewise held that since interest free own funds available with assessee exceeded their investments in tax-free securities, investments would be presumed to be made out of assessee's own funds and proportionate disallowance was not warranted under section 14A of the Act. In this case, since interest free own funds available with assessee exceeded t…

Chimanlal Maneklal Securities Private Limited, Mumbai vs. Income Tax Officer, Aayakar Bhawan, Mumbai

In the result, both the appeals are partly allowed

ITA 125/MUM/2025[2014-15]Status: DisposedITAT Mumbai03 Mar 2025AY 2014-15

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Shri K. Gopal & Ms Neha Paranjpe,ARsFor Respondent: Shri Mahesh Pamnani (Sr. DR)
Section 143(3)Section 14A

…bearing funds were more than the investments in tax free securities, no disallowance of interest expenditure u/s. 14A can be made. Hon'ble Supreme Court in the case of CIT vs UTI Bank Ltd. [2022] 142 taxmann.com 136 and in South Indian Bank Ltd. v. CIT [2021] 438 ITR 1,likewise held that since interest free own funds available with assessee exceeded their investments in tax-free securities, investments would be presumed to be made out of assessee's own funds and proportionate disallowance was not warranted under section 14A of the Act. In this case, since interest free own funds available with assessee exceeded t…