How many judgments cite Woolcombers of India Ltd. v. CIT?

129 judgments on BharatTax cite Woolcombers of India Ltd. v. CIT (134 ITR 219), spanning 2015 to 2025.

Which sections of the Income Tax Act does Woolcombers of India Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 14A, Section 36(1)(iii), Section 37(1), Section 143(2), Section 147, Section 148.

Woolcombers of India Ltd. v. CIT

134 ITR 219High Court1982#795 most cited

What is Woolcombers of India Ltd. v. CIT authority for?

Where an assessee's own funds or interest-free funds exceed the interest-free advances or investments made, no disallowance of interest expenditure can be made, including under Section 14A.

129

judgments rely on this decision, according to BharatTax’s citation analysis of 366,418 Indian tax judgments — from 2015 to 2025.

Also referred to as

Woolcombers of India Ltd. v. CIT · 134 ITR 219 · Section 36(1)(iii) · Section 14A · disallowance of interest · interest expenditure · own funds · interest-free funds · investments · surplus funds · presumption of own funds · East India Pharmaceutical approval

Also reported as

148 CTR 585

Sections most often in play

Section 14A Section 36(1)(iii)Section 37(1)Section 143(2)Section 147 Section 148 Section 143(3)Section 143(1)

Issues it is cited on

interest free advances section 36(1)(iii)disallowance of interest expenditure disallowance u/s 14a disallowance under section 14a section 40a section 32 section 37(1)capital expenditure section 14a revenue expenditure section 36(1)

Judgments citing Woolcombers of India Ltd. v. CIT

DCIT, Circle-4, Kolkata vs. M/S. Jay Shree Tea & Industries Ltd., Kolkata

In the result, Revenue’s appeal is partly allowed

ITA 2009/KOL/2014[2010-2011]Status: DisposedITAT Kolkata02 Jun 2017AY 2010-2011

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

Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “C” KOLKATA Before Shri N.V.Vasudevan, Judicial Member and Shri Waseem Ahmed, Accountant Member ITA No.2009-2010/Kol/2014 Assessment Years :2010-11 & 2011-12 DCIT, Circle-4 V/s. M/s Jay Shree Tea & P-7, Chowringhee Industries Ltd., 10, Camac Square, Kolkata-69 Street, Industry House, 15th Floor, Kolkata-17 [PAN No.AAACJ 7788 C] .. अपीलाथ" /Appellant ""यथ"/Respondent Shri Gouten Hangshing, CIT-DR & आवेदक क" ओर से/By Assessee Md. Ghayas Uddin, JCIT-DR Shri B.K. Chaturvedi, AR राज"व क" ओर से/By Respondent सुनवाई क" तार"ख/Date of Hearing 27-04-2017 घोषणा क" तार"ख…

Inducto Steel Ltd, Mumbai vs. ACIT Cen Cir 38, Mumbai

The appeal of the assessee is partly allowed

ITA 2555/MUM/2015[2006-07]Status: DisposedITAT Mumbai26 May 2017AY 2006-07

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2006-07 Inducto Steel Ltd. Acit, 156, Maker Chamber Vi, Cc-38, बनाम/ 220, Jamnalal Bajaj Marg, Aayakar Bhavan, Vs. Nariman Point, M.K. Road, Mumbai-400021 Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aaaci1045E

Section 14A

…t can be presumed that the investments were from the interest-free funds available. In this case this presumption is established considering the finding of fact both by the CIT(A) and Tribunal—Woolcombers of India Ltd. vs. CIT (1981) 23 CTR (Cal) 204 : (1982) 134 ITR 219 (Cal) and East India Pharmaceutical Works Ltd. vs. CIT (1997) 139 CTR (SC) 372 : (1997) 224 ITR 627 (SC) relied on.” 2.26. Likewise, Hon'ble jurisdictional High Court in HDFC Bank Ltd. (supra) also held as under:- “Section 14A of the Act would be inapplicable. However this was also disregarded by the impugned order on the ground that this Court…

Hariyana Ship Breakers Ltd, Mumbai vs. ACIT CC 38, Mumbai

Appeal stands partly allowed

ITA 2556/MUM/2015[2007-08]Status: DisposedITAT Mumbai19 May 2017AY 2007-08

Bench: Shri Joginder Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No.2556/Mum/2015 (िनधा"रण वष" / Assessment Year: 2007-08) Hariyana Ship Breakers Assistant Commissioner Of Limited Income Tax बनाम/ 156, Maker Chambers Vi Central Circle 38 220, Jamanalal Bajaj Marg, Aaykar Bhawan Vs. Nariman Point M.K.Marg Mumbai – 400 021 Mumbai – 400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaach-2476-E (अपीलाथ" /Appellant) (""थ" / Respondent) :

For Appellant: Reepal G. Traishawala,Ld. ARFor Respondent: Riju Jaikaran, Ld. DR

Section 10Section 115JSection 143(3)Section 14ASection 254

…vestments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft account for the running of the business and in these circumstances the appellant was entitled to claim the deductions…

Jaguar International Ltd., Gurgaon vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 4371/DEL/2016[2012-13]Status: DisposedITAT Delhi27 Apr 2017AY 2012-13

Bench: Shri N. K. Saini

For Appellant: Ms. Rano Jain, Adv. &For Respondent: Sh. Rajesh Kumar, Sr. DR

Section 36(1)(iii)

…estments were from the interest-free' funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft account for the running of the business and in these circumstances the appellant was entitled to claim the deductions…

DCIT, New Delhi vs. M/S. Escort Heart Institute & Research Centre Ltd., New Delhi

In the result, the appeal of the Revenue stands dismissed

ITA 6674/DEL/2013[2008-09]Status: DisposedITAT Delhi18 Apr 2017AY 2008-09

Bench: Shri R.S. Syal & Ms Suchitra Kambleassessment Year : 2008-09 Dcit, Vs. Escort Heart Institute & Research Circle-11(1), Centre Ltd., New Delhi. Okhla Road, New Delhi. Pan: Aaace8731F Assessee By : Shri R.M. Mehta, Advocate Deptt. By : Shri U.C. Dubey, Sr. Dr

For Appellant: Shri R.M. Mehta, Advocate

Section 36(1)(iii)

…funds available”. Thereafter, the judgment of the Hon’ble Supreme Court in the case of East India Pharmaceutical Works Ltd. Vs. CIT (1997) 224 ITR 627 (SC) and also the judgment of the Hon’ble Calcutta High Court in Woolcombers of India Ltd. Vs. CIT (1981) 134 ITR 219 (Cal) were considered. It was finally concluded that : “The principle, therefore, would be that if there are funds available both interest free and overdraft and/or loans taken, then a presumption would arise that the investments would be out of interest free funds generated or available with the company, if the interest free funds were suffi…

Shanti Lal Bhandari, Jaipur vs. ITO, Jaipur

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

ITA 73/JPR/2016[2012-13]Status: DisposedITAT Jaipur17 Apr 2017AY 2012-13

For Appellant: Shri B.P. Moondra (CA)For Respondent: Shri R.A. Verma (Addl.CIT)

Section 145(3)Section 41(1)

…vestments were from the interest-free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT [1997] 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. [1982] 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft account for the running of the business and in these circumstances the appellant was entitled to claim the deductions…

Addl CIT Large Tax Payer Unit, Mumbai vs. Reliance Industries Ltd, Mumbai

In the result, appeals of the Revenue are dismissed whereas appeals of the assessee are allowed in part in terms indicated hereinabove

ITA 4361/MUM/2012[2007-08]Status: DisposedITAT Mumbai12 Apr 2017AY 2007-08

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Addl. Commissioner Of Vs. M/S. Reliance Industries Ltd.,3Rd Income Tax, Large Tax Floor, Maker Payer Unit, Mumbai Chamber-Iv, 222, Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaacr5055K Appellant) .. Respondent) M/S. Reliance Industries Vs. Addl. Commissioner Of Income Ltd.,3Rd Floor, Maker Tax, Large Tax Payer Unit, Chamber-Iv, 222, Mumbai Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaacr5055K Appellant) .. Respondent) M/S. Reliance Industries Vs. Asst. Commissioner Of Income Ltd.,3Rd Floor, Maker Tax, Large Tax Payer Unit, Chamber-Iv, 222, Mumbai Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaacr5055K Appellant) .. Respondent) Asst. Commissioner Of Vs. M/S. Reliance Industries Ltd.,3Rd Income Tax, Large Tax Floor, Maker Payer Unit, Mumbai Chamber-Iv, 222, Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaacr5055K Appellant) .. Respondent) M/S. Reliance Industries Vs. Asst. Commissioner Of Income Ltd.,3Rd Floor, Maker Tax, Large Tax Payer Unit

Section 143(3)Section 14ASection 195Section 40Section 43BSection 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL “K”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAVISH SOOD, JM Addl. Commissioner of Vs. M/s. Reliance Industries Ltd.,3rd Income Tax, Large Tax Floor, Maker Payer Unit, Mumbai Chamber-IV, 222, Nariman Point, Mumbai – 400 021 PAN/GIR No. AAACR5055K Appellant) .. Respondent) M/s. Reliance Industries Vs. Addl. Commissioner of Income Ltd.,3rd Floor, Maker Tax, Large Tax Payer Unit, Chamber-IV, 222, Mumbai Nariman Point, Mumbai – 400 021 PAN/GIR No. AAACR5055K Appellant) .. Respondent) M/s. Reliance Industries Vs. Asst. Commissioner of Income Ltd.,3rd Floor, Maker Tax, Large…

Aditya Birla Finance Ltd, Mumbai vs. Addl CIT RG 2(1), Mumbai

Appeal of the assessee is partly allowed for statistical purposes

ITA 5732/MUM/2011[2008-09]Status: DisposedITAT Mumbai12 Apr 2017AY 2008-09

Bench: Shri Joginder Singh & Shri Rajendraassessment Year-2008-09 M/S Aditya Birla Finance Acit-2(1), Limited (One Indiabulls R. No.575, 5Th Floor, बनाम/ Center, Tower-1, 18Th Floor, Aayakar Bhavan, Vs. Jupiter Mill Compound, 841, M.K. Road, Senapati Bapat Marg, Mumbai-400020 Elphinstone Road, Mumbai-400012 Pan No.Aabcb5769M ("नधा"रती /Assessee) (राज"व /Revenue) Assessment Year-2008-09 Acit-2(1), M/S Aditya Birla Finance R. No.575, 5Th Floor, Limited (One Indiabulls बनाम/ Aayakar Bhavan, Center, Tower-1, 18Th Floor, Vs. M.K. Road, Jupiter Mill Compound, 841, Mumbai-400020 Senapati Bapat Marg, Elphinstone Road, Mumbai-400012 Pan No. Aabcb5769M (राज"व /Revenue) ("नधा"रती /Assessee) M/S Aditya Birla Finance Ltd.

Section 14ASection 260

…t can be presumed that the investments were from the interest-free funds available. In this case this presumption is established considering the finding of fact both by the CIT(A) and Tribunal—Woolcombers of India Ltd. vs. CIT (1981) 23 CTR (Cal) 204 : (1982) 134 ITR 219 (Cal) and East India Pharmaceutical Works Ltd. vs. CIT (1997) 139 CTR (SC) 372 : (1997) 224 ITR 627 (SC) relied on.” 3.24 Likewise, Hon'ble jurisdictional High Court in HDFC Bank Ltd. (supra) also held as under:- “Section 14A of the Act would be inapplicable. However this was also disregarded by the impugned order on the ground that this Court…

Shapoorji Pallanji and Company P.Ltd, Mumbai vs. Addl CIT RG 3(3), Mumbai

The appeal of the assessee is partly allowed

ITA 3053/MUM/2015[2011-12]Status: DisposedITAT Mumbai03 Mar 2017AY 2011-12

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2011-12 M/S Shapoorji Pallonji & Co. Dcit, Ltd. Circle-3(3), बनाम/ Shapporji Pallonji Centre, Room No.609, 6Th Floor, Vs. 41/44 Minoo Desai Marg, Aayakar Bhavan, M.K.Road, Colaba Mumbai-400020 Mumbai-400005 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aaacs6994C

Section 143(3)Section 14A

…ablished that the borrowed capital was used for the purpose of business and the interest expenditure is deductible under section 36(1)(iii) of the Act. The similar view has also been considered by the Hon’ble Calcutta High Court in Wool Combers of India Ltd., 134 ITR 219 (Cal), wherein it was held that if there were sufficient profits available to meet the advance fax liability and the profits were deposited in the overdraft account of the assessee,' in such a case it should be presumed that 55 M/s Shapoorji Pallonji & Company Pvt. Ltd. the taxes were paid out of profits of the year and not out of the overdraft…

DCIT, Cir-4, Kolkata vs. M/S Jay Shree Tea & Industries Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 675/KOL/2014[2009-2010]Status: DisposedITAT Kolkata03 Feb 2017AY 2009-2010

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 14A

…I.T.A. No. 675/KOL./2014 Assessment year: 2009-2010 Page 1 of 6 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA ‘B’ BENCH, KOLKATA Before Shri P.M. Jagtap, Accountant Member and Shri S.S. Viswanethra Ravi, Judicial Member I.T.A. No. 675/KOL/ 2014 Assessment Year: 2009-2010 Deputy Commissioner of Income Tax,....................................Appellant Circle-4, Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700 069 -Vs.- M/s. Jay Shree Tea & Industries Limited,...........................Respondent Industry House, 15th Floor, 10, Camac Street, Kolkata-700 017 [PAN: AAACJ 7788 D] Appearances by: N o…

Tata Tea Limited, Kolkata vs. DCIT, C Ircle- 4, Kolkata

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

ITA 511/KOL/2010[2004-05]Status: DisposedITAT Kolkata03 Feb 2017AY 2004-05

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: S/Shri Manish Sheth & Prasun Kr. Maity, ARsFor Respondent: N o n e

Section 143(3)

…the ld CITA in first appeal. 2.2. Before the ld CITA, the assessee reiterated the submissions made before the ld AO and apart from that, relied on the following decisions in support of its proposition :- (a) Woolcombers of India Ltd vs CIT reported in (1982) 134 ITR 219 (Cal) (b) Reckitt & Colman of India Ltd vs CIT reported in (1982) 135 ITR 698 (Cal) (c ) Indian Explosives Ltd vs CIT reported in (1983) 147 ITR 392 (Cal) Tata Tea Ltd. (New Name Tata Global Beverage Ltd.), AY 2004-05 The ld CITA relying on the earlier order of his predecessor for the Asst Year 2000-01 confirmed the disallowance of notional inter…

DCIT, Circle - 4, Kolkata vs. M/S. Tata Tea Ltd., Kolkata

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

ITA 2105/KOL/2010[2004-05]Status: DisposedITAT Kolkata03 Feb 2017AY 2004-05

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: S/Shri Manish Sheth & Prasun Kr. Maity, ARsFor Respondent: N o n e

Section 143(3)

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR

Section 143Section 143(3)Section 144CSection 92C

…ces, it is to be presumed that only interest free funds have been utilized for making investments during the year. He relied upon the following decisions: i. East India Pharmaceuticals Works Ltd: v. CIT: 224 ITR 627 (SC), ii. Woolcombers of India Ltd. v. CIT: 134 ITR 219 (Cal) iii. CIT vs. Hotel Savera: 239 ITR 795 (Mad) iv. CIT v Radico Khitan Ltd : 274 ITR 354 (All) v. CIT v Dhampur Sugar Mills Ltd : 274 ITR 370 (All) vi. CIT v. United Collieries Ltd. : 49 Taxman 227 (Cal) vii. CIT v. Enamour Investment Ltd.: 72 Taxman 370 (Cal) viii. CIT v. Caroline Investment Ltd.: 87 Taxman 238 (Cal) ix. CIT v. Kanoria Inves…

D.C.I.T Cir - 4, Kolkata vs. M/S Tata Tea Limited, Kolkata

In the result, the appeals in ITA No

ITA 2006/KOL/2013[2006-07]Status: DisposedITAT Kolkata21 Oct 2016AY 2006-07

Bench: Shri M.Balaganesh & Shri S.S. Viswanethra Ravi

Section 43(6)

…that where the amount of any interest-free loan is sufficiently covered by the non-interest -bearing funds available with the assessee/ then the question of disallowance of interest on borrowed funds does not arise: • Woolcombers of India Limited - vs. - CIT 134 ITR 219 (Cal) • CIT Vs. 8ritannia Industries Ltd [2006} 280 ITR 525 (Cal) • CIT Vs. ITC Ltd [2008} 299 ITR (AT) 341 (Kolkata) (SB) • CIT Vs. Rockman Cycle Industries Ltd [2009} 176 Taxman 21(P & H) • CIT Vs. Prem Heavy Engineering Works Pvt.Ltd [2006} 285 ITR 554 (All) 2) Without prejudice to the above, it is humbly submitted that the loans as existed in…

DCIT, Circle - 8, Kolkata vs. M/S. Tata Steel Processing & Distribution Limited, Kolkata

In the result, both appeals of Revenue are dismissed and that of assessee’s appeal is partly allowed for statistical purpose and CO of assessee is dismissed as infructuous

ITA 379/KOL/2012[2008-09]Status: DisposedITAT Kolkata21 Sept 2016AY 2008-09

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Year:2006-07

Section 143(2)Section 143(3)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “B” KOLKATA Before Shri Waseem Ahmed, Accountant Member and Shri K.Narasimha Chary, Judicial Member Assessment Year:2006-07 DCIT, Circle-8, Aayakar M/s Tata Ryerson Ltd. बनाम Bhawan, 7th Floor P-7, (since merged with Tata / V/s. Chowrighee Square, Steel Processing & Kolkata-700 069 Distribution Ltd.) 43, J.L.Nehru Road, Kolkata- 700071. PAN:AABCT1029L .. अपीलाथ" /Appellant ""यथ" /Respondent C.O.No.78/Kol/2010 (A/o ITA No.1124/Kol/2010) Assessment Year:2006-07 M/s Tata Ryerson Ltd. DCIT, Circle-8, Aayakar बनाम Bhawan, 7th Floor P-7, (since merged with Tata / V…

Tata Steel Processing and Distribution Ltd., Kolkata vs. DCIT, Circle - 8, Kolkata

In the result, both appeals of Revenue are dismissed and that of assessee’s appeal is partly allowed for statistical purpose and CO of assessee is dismissed as infructuous

ITA 303/KOL/2012[2008-09]Status: DisposedITAT Kolkata21 Sept 2016AY 2008-09

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Year:2006-07

Section 143(2)Section 143(3)Section 40

DCIT, Circle - 8, Kolkata vs. M/S. Tata Ryerson Limited, Kolkata

In the result, both appeals of Revenue are dismissed and that of assessee’s appeal is partly allowed for statistical purpose and CO of assessee is dismissed as infructuous

ITA 1124/KOL/2010[2006-07]Status: DisposedITAT Kolkata21 Sept 2016AY 2006-07

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Year:2006-07

Section 143(2)Section 143(3)Section 40

M/S Indian Farmers Fertiliser Cooperative Ltd., New Delhi vs. Pr CIT, New Delhi

In the result, the Appeal filed by the Assessee stands allowed

ITA 2487/DEL/2016[2010-11]Status: DisposedITAT Delhi19 Sept 2016AY 2010-11

Bench: Shri H.S. Sidhu & Shri J.S. Reddy

For Appellant: Sh. Vijay Ranjan, Adv. Sh. Vartik RFor Respondent: Sh. A.K. Saroha, CIT(DR)

Section 263Section 36(1)(iii)

…this presumption was established considering the finding of fact both by the Commissioner (Appeals) and the Tribunal. The interest was deductible. East India Pharmaceutical Works Ltd. v. CIT [1997] 224 ITR 627 (SC) and Woolcombers of India Ltd. v. CIT [1982] 134 ITR 219 (Cal) relied on.” (emphasis supplied) 69 a. Bombay High Court-CIT Vs. HDFC Bank[2014] 366 ITR 505 “In the present case, undisputedly the Assessee's capital, profit reserves, surplus and current account deposits were higher than the investment in the tax-free securities. In view of this factual position, as per the judgment of this Court in the…

Jhp Securities P.Ltd, Mumbai vs. Asst CIT RG 4(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 192/MUM/2015[2010-11]Status: DisposedITAT Mumbai18 Aug 2016AY 2010-11

Bench: Sri Mahavir Singh & Sri Manoj Kumar Aggarwaljhp Securities Ltd., Dev Neo Vikram, Vs. The Asst. Commissioner Of Income “B”Wing, 2Nd Floor, Sahakar Nagar Tax, Range-4 (3), Aayakar Bhavan, 6Th Floor, M. K. Marg, Mumbai 20 Chs, Above Audi Car Showroom, New Link Road, Andheri (West), Mumbai 53 Pan:Aaacj 2847 H Appellant .. Respondent .. Appellant By Sri Dev Datta Mainkar, Ar Respondent By .. Sri Durga Dutt, Sr. Dr Date Of Hearing .. 18-08-16 Date Of Pronouncement .. 18-08-16 O R D E R Per Mahavir Singh, Jm: This Appeal By The Assessee Is Arising Out Of The Order Of The Cit (A)-8, Mumbai In Appeal No.Cit (A)-8/Cir.4/165/2013-14 Dated 17-10-2014. Assessment Was Framed By The Acit- 4(3), Mumbai For The Assessment Year 2010-11 Vide His Order U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter “The Act”) Dated 22-03-2013. 2. The First Issue In This Appeal Of The Assessee Is Against The Order Of The Cit (A) Confirming The Disallowance Of Expenses Relatable To Exempted Income By Invoking The Provisions Of Section 14A Of The Act Read With Rule 8D (2) (Ii) Of The Income Tax Rules, 1962 (Hereinafter “The Rules”) At Rs.10,49,330/-.

Section 143(3)Section 14A

…estments were from the interest- free funds available. In our opinion, the Supreme Court in East India Pharmaceutical Works Ltd. v. CIT (1997) 224 ITR 627 had the occasion to consider the decision of the Calcutta High Court in Woolcombers of India Ltd. (1982) 134 ITR 219 where a similar issue had arisen. Before the Supreme Court it was argued that it should have been presumed that in essence and true character the taxes were paid out of the profits of the relevant year and not out of the overdraft account for the running of the business and in these circumstances the appellant was entitled to claim the deductions…

ACIT, Sonepat vs. M/S. Atlas Cycles (Haryana) Ltd., Sonepat

In the result ITA Nos. 2484/Del/2011 and 4049/Del/2013 preferred by the department are dismissed

ITA 4049/DEL/2013[2008-09]Status: DisposedITAT Delhi29 Jul 2016AY 2008-09

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Sudhanshu Srivastava

…claim the deductions. The Supreme Court noted that the argument had considerable force, but considering the fact that the contention had not been advanced earlier it did not require to be answered. It then noted that in Woolcombers of India Ltd.’s case (1982) 134 ITR 219 the Calcutta High Court had come to the conclusion that the profits were sufficient to meet the advance tax liability and the profits were deposited in the over draft account of the assessee and in such a case it should be presumed that the taxes were paid out of the profits of the year and not out of the overdraft account for the running of the…