Section 40a(ia) of the Income Tax Act

The decision most relied on for Section 40a(ia) is J.K. Industries Ltd. v. CIT (18 ITD 226), cited in 23 of the 45 judgments on BharatTax that turn on this section.

Leading authorities on Section 40a(ia)

J.K. Industries Ltd. v. CIT
18 ITD 226 · 1986 · High Court
23
citing judgments

If a company has both interest-free funds and borrowed funds, a presumption arises that investments are made from interest-free funds, unless the Assessing Officer establishes a nexus between borrowed funds and the investments.

S.P. Jaiswal Estates (P.) Ltd. v. ACIT
29 Taxmann.com 221 · 2013 · ITAT
15
citing judgments
Pr.CIT v. Shalimar Pettel Feeds Ltd.
453 ITR 547 · 2023 · High Court
11
citing judgments
IBM India (P.) Ltd. v. Income-tax Officer (TDS) LTU, Bangalore
154 ITD 497 · 2015 · ITAT
10
citing judgments
Pr. CIT v. Shalimar Pellet Feeds Ltd.
138 Taxmann.com 124 · 2022 · High Court
7
citing judgments
Gharmarbhai Chaudhary v. ITO
23 Taxmann.com 273 · Reported
3
citing judgments

Judgments on Section 40a(ia)

AMRCL KCL (JV),HYDERABAD vs. ITO, WARD-6(1), HYDERABAD

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

ITA 1906/HYD/2025[2018-19]Status: DisposedITAT Hyderabad27 Mar 2026AY 2018-19
Section 194CSection 40aSection 69C

DEPUTY COMMISSIONER OF INCOME TAX, CHENNAI vs. M/S SUNDARAM ASSET MANAGEMENT COMPANY LIMITED, CHENNAI

In the result, both the appeals filed by the Revenue are dismissed

ITA 2281/CHNY/2025[2015]Status: DisposedITAT Chennai13 Mar 2026

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. Nos.2280 & 2281/Chny/2025 िनधा"रण वष"/Assessment Years: 2013-14 & 2015-16 The Deputy Commissioner Of Vs. M/S. Sundaram Asset Management Income Tax, Company Limited, Circle 1 (Ltu), Chennai. No. 46, Sundaram Towers, Whites Road, Royapettah, Chennai 600 014. [Pan: Aaics4257J] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Venkat Ramanan, Ca ""थ" की ओर से/Respondent By : Ms. C. Vatchala, Jcit सुनवाई की तारीख/ Date Of Hearing : 04.02.2026 घोषणा की तारीख /Date Of Pronouncement : 13.03.2026 आदेश /O R D E R Per S.S. Viswanethra Ravi: Both The Appeals Filed By The Assessee Are Directed Against The Different Orders Dated 18.02.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals) 16, Chennai, For The Assessment Years 2013-14 & 2015-16. 2. Since, The Issues Raised In These Appeals Are Similar Based On The Same Identical Facts, With The Consent Of Both The Parties, We

For Appellant: Shri Venkat Ramanan, CAFor Respondent: Ms. C. Vatchala, JCIT
Section 14ASection 194HSection 40Section 40a

DEPUTY COMMISSIONER OF INCOME OF TAX, CHENNAI vs. M/S. SUNDARAM ASSET MANAGEMENT COMPANY LIMITED, CHENNAI

In the result, both the appeals filed by the Revenue are dismissed

ITA 2280/CHNY/2025[2013]Status: DisposedITAT Chennai13 Mar 2026

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. Nos.2280 & 2281/Chny/2025 िनधा"रण वष"/Assessment Years: 2013-14 & 2015-16 The Deputy Commissioner Of Vs. M/S. Sundaram Asset Management Income Tax, Company Limited, Circle 1 (Ltu), Chennai. No. 46, Sundaram Towers, Whites Road, Royapettah, Chennai 600 014. [Pan: Aaics4257J] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Venkat Ramanan, Ca ""थ" की ओर से/Respondent By : Ms. C. Vatchala, Jcit सुनवाई की तारीख/ Date Of Hearing : 04.02.2026 घोषणा की तारीख /Date Of Pronouncement : 13.03.2026 आदेश /O R D E R Per S.S. Viswanethra Ravi: Both The Appeals Filed By The Assessee Are Directed Against The Different Orders Dated 18.02.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals) 16, Chennai, For The Assessment Years 2013-14 & 2015-16. 2. Since, The Issues Raised In These Appeals Are Similar Based On The Same Identical Facts, With The Consent Of Both The Parties, We

For Appellant: Shri Venkat Ramanan, CAFor Respondent: Ms. C. Vatchala, JCIT
Section 14ASection 194HSection 40Section 40a

DAKSHIN DAMODAR COLD STORAGE PRIVATE LIMITED,BANKURA MORE vs. ACIT CIR-1 BURDWAN, COURT COMPOUND

ITA 436/KOL/2025[2013-14]Status: DisposedITAT Kolkata17 Feb 2026AY 2013-14

Bench: Shri Rajesh Kumar, Am & Shripradip Kumar Choubey, Jm

SIDDHA CONSTRUCTION,DADRA AND NAGAR HAVELI (UT) vs. THE DEPUTY COMMISSIONER OF INCOME TAX, VAPI CIRCLE , VAPI

In the result, the appeal of the assessee is allowed

ITA 320/SRT/2025[2012-13]Status: HeardITAT Surat23 Jan 2026AY 2012-13

Bench: Dr. B.R.R. Kumar, Vice-Ms Suchitra Raghunath Kamble

For Appellant: Shri Kaushik Kejriwal, CAFor Respondent: Shri Ashish Kumar, Sr. DR
Section 143(3)Section 250Section 40a

HARUN ALI ,GHAZIABAD vs. PRCIT, DEHRADUN

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

ITA 3444/DEL/2025[2015-16]Status: DisposedITAT Delhi07 Jan 2026AY 2015-16

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

For Appellant: Ms. Rano Jain, AdvocateFor Respondent: Ms. Amisha S. Gupt, CIT DR
Section 139Section 143(3)Section 263Section 4

PCL FOODS PVT. LTD.,GURGAON vs. ADDI CIT, NATIONAL E- ASSESMENT CENTRE, NEW DELHI

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

ITA 442/DEL/2021[2016-17]Status: DisposedITAT Delhi14 Nov 2025AY 2016-17

Bench: Ms. Madhumita Roy & Shri Brajesh Kumar Singh[Assessment Year: 2016-17] Pcl Foods Private Limited, Additional / Joint/ Unit No.-219, Plot No. 2, Deputy/Assistant Vardhman Crown Mall, Lsc, Vs Commissioner Of Income Sector 19, Dwarka, New Tax/ Income Tax Officer, Delhi-110075. National E-Assessment Centre, Delhi. Pan- Aahcp3493L Assessee Revenue

Section 143(3)Section 92C

DOLEX COMMERCIAL PRIVATE LIMITED,MUMBAI vs. DCIT-CENT-CIR 8(3), MUMBAI

In the result the appeals filed by the assessee for A

ITA 1620/MUM/2025[2016-17]Status: DisposedITAT Mumbai31 Oct 2025AY 2016-17

Bench: Smt. Beena Pillai () & Shri Arun Khodpia ()

Section 144Section 153ASection 37(1)Section 40aSection 68

DOLEX COMMERCIAL PRIVATE LIMITED,MUMBAI vs. DCIT-CENT-CIR 8(3), MUMBAI

In the result the appeals filed by the assessee for A

ITA 1619/MUM/2025[2015-16]Status: DisposedITAT Mumbai31 Oct 2025AY 2015-16

Bench: Smt. Beena Pillai () & Shri Arun Khodpia ()

Section 144Section 153ASection 37(1)Section 40aSection 68

DOLEX COMMERCIAL PRIVATE LIMITED,MUMBAI vs. DCIT-CENT-CIR 8(3), MUMBAI

In the result the appeals filed by the assessee for A

ITA 1618/MUM/2025[2014-15]Status: DisposedITAT Mumbai31 Oct 2025AY 2014-15

Bench: Smt. Beena Pillai () & Shri Arun Khodpia ()

Section 144Section 153ASection 37(1)Section 40aSection 68

DOLEX COMMERCIAL PRIVATE LIMITED,MUMBAI vs. DCIT-CENT-CIR 8(3), MUMBAI

In the result the appeals filed by the assessee for A

ITA 1598/MUM/2025[2013-14]Status: DisposedITAT Mumbai31 Oct 2025AY 2013-14

Bench: Smt. Beena Pillai () & Shri Arun Khodpia ()

Section 144Section 153ASection 37(1)Section 40aSection 68

DOLEX COMMERCIAL PRIVATE LIMITED,MUMBAI vs. DCIT CENT CIRCALE 8(3), MUMBAI

In the result the appeals filed by the assessee for A

ITA 1597/MUM/2025[2012-13]Status: DisposedITAT Mumbai31 Oct 2025AY 2012-13

Bench: Smt. Beena Pillai () & Shri Arun Khodpia ()

Section 144Section 153ASection 37(1)Section 40aSection 68

DOLEX COMMERCIAL PRIVATE LIMITED,MUMBAI vs. DCIT. CENT. CIR. 8(3), MUMBAI

In the result the appeals filed by the assessee for A

ITA 1596/MUM/2025[2011-12]Status: DisposedITAT Mumbai31 Oct 2025AY 2011-12

Bench: Smt. Beena Pillai () & Shri Arun Khodpia ()

Section 144Section 153ASection 37(1)Section 40aSection 68

DOLEX COMMERCIAL PRIVATE LIMITED,MUMBAI vs. DCIT CENT CIR 8(3), MUMBAI

In the result the appeals filed by the assessee for A

ITA 1595/MUM/2025[2010-11]Status: DisposedITAT Mumbai31 Oct 2025AY 2010-11

Bench: Smt. Beena Pillai () & Shri Arun Khodpia ()

Section 144Section 153ASection 37(1)Section 40aSection 68

BALKRISHNA DNYANOBA KHANDVE,PUNE vs. CENTRAL CIRCLE 2(3), PUNE

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

ITA 2495/PUN/2024[2015-2016]Status: DisposedITAT Pune29 Oct 2025AY 2015-2016

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2495/Pun/2024 Assessment Year : 2015-16

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri Ramnath P. Murkunde
Section 133ASection 147Section 148Section 37Section 40A(3)Section 40a

DHL GLOBAL FORWARDING FREIGHT SHARED SERVICES (INDIA) LLP ,MUMBAI vs. PRINCIPAL COMMISSIONER OF INCOME-TAX (PCIT)-41, MUMBAI

In the result, the appeal of the assessee is allowed

ITA 2109/MUM/2025[2020-21]Status: DisposedITAT Mumbai27 Oct 2025AY 2020-21

Bench: Shri Sandeep Gosain & Shri Prabhash Shankarm/S Dhl Global Forwarding V/S. Principal Commissioner Of Freight Shared Services बनाम Income Tax (Pcit) – 41, Room (India) Llp No. 541, Kautilya Bhavan, C-41 5Th Floor, A Wing 247 Park, To C-43, G Block, Bandra Kurla Lbs Road, Vikhroli West, Complex, Bandra (East), Mumbai–400083, Maharashtra Mumbai–400051, Maharashtra स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aapfd3128F Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Shri Ajit Kumar Jain a/w S.Chaugule, ARsFor Respondent: Shri Umashankar Prasad, (CIT-DR)
Section 10ASection 143(3)Section 263Section 40a

THIRUVENGATAM VINAYAGAM,CHENNAI vs. ITO, NCW-10(3), CHENNAI

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

ITA 2284/CHNY/2025[2012-13]Status: DisposedITAT Chennai24 Oct 2025AY 2012-13

Bench: Shri M. Balaganesh & Shri S.S. Viswanethra Raviआयकरअपीलसं./Ita No.:2283 & 2284 /Chny/2025 यनिाारणवर्ा / Assessment Year:2011-12 & 2012-13 Thiruvengatamvinayagam, Income Tax Officer, No.2/9, Bye Pass Road, Vs. Non-Corporate Ward-10(3), Redhills, Chennai. Chennai-600 052. [Pan:Aagpv1428F] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थीकीओरसे/Appellant By : Mr.Hithesh, Advocate प्रत्यर्थीकीओरसे/Revenue By : Mr.C.P.Solomon, Jcit

For Appellant: Mr.Hithesh, AdvocateFor Respondent: Mr.C.P.Solomon, JCIT
Section 143(1)Section 143(3)Section 148Section 40aSection 44A

THIRUVENGATAM VINAYAGAM,CHENNAI vs. ITO, NCW-10(3), CHENNAI

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

ITA 2283/CHNY/2025[2011-12]Status: DisposedITAT Chennai24 Oct 2025AY 2011-12

Bench: Shri M. Balaganesh & Shri S.S. Viswanethra Raviआयकरअपीलसं./Ita No.:2283 & 2284 /Chny/2025 यनिाारणवर्ा / Assessment Year:2011-12 & 2012-13 Thiruvengatamvinayagam, Income Tax Officer, No.2/9, Bye Pass Road, Vs. Non-Corporate Ward-10(3), Redhills, Chennai. Chennai-600 052. [Pan:Aagpv1428F] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थीकीओरसे/Appellant By : Mr.Hithesh, Advocate प्रत्यर्थीकीओरसे/Revenue By : Mr.C.P.Solomon, Jcit

For Appellant: Mr.Hithesh, AdvocateFor Respondent: Mr.C.P.Solomon, JCIT
Section 143(1)Section 143(3)Section 148Section 40aSection 44A

VAMSIRAM BUILDERS & DEVELOPERS PRIVATE LIMITED (FORMERLY VAMSIRAM BUILDERS),HYDERABAD vs. ACIT., CENTRAL CIRCLE-1(1), HYDERABAD

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

ITA 829/HYD/2025[2021-22]Status: DisposedITAT Hyderabad17 Oct 2025AY 2021-22

Bench: Shri Vijay Pal Rao & Shri Madhusudan Sawdia

For Appellant: Shri M.V. Prasad, C.AFor Respondent: Dr. Sachin Kumar, SR-DR
Section 143(3)Section 144B

ASSISTANT COMMISSIONER OF INCOME TAX-5, KANPUR vs. M.K.U PVT. LTD., KANPUR

In the result, appeal in ITA No

ITA 509/LKW/2018[2011-12]Status: DisposedITAT Lucknow29 Aug 2025AY 2011-12

Bench: SH. KUL BHARAT, VICE PRESIDENT AND SH. NIKHIL CHOUDHARY (Accountant Member)

For Appellant: Sh. P.K. Kapoor, C.AFor Respondent: Sh. R.K. Agarwal, CIT DR
Section 143Section 143(3)Section 147Section 250

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Section 40a(ia) of the Income Tax Act — Case Laws | BharatTax