TMI Blog2022 (1) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 (1) TMI 757 - SUPREME COURT] has held that where an assessee possessed sufficient interest free funds of its own which were generated in the course of relevant financial year, apart from substantial shareholders' funds, presumption gets established that the investments in sister concerns were made by the assessee out of interest free funds and, therefore, no part of interest on borrowings c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailability of Share Capital and Reserves it becomes evident that the amount of such Investments is much less than the amount of shareholders' fund. Respectfully following the precedent, we order to delete the disallowance of interest. - Decided in favour of assessee. - ITA No. 2952/PUN/2017 - - - Dated:- 18-1-2022 - R.S. Syal, Vice President And S.S. Viswanethra Ravi, Member (J) For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee had also paid interest amounting to ₹ 5.21 crore on borrowed funds. Treating the amount paid to UBPL, a related concern, for non-business purposes, the AO made disallowance of interest u/s. 36(1)(iii) of the Act at ₹ 1,03,03,190/-. The assessee remained unsuccessful before the ld. CIT(A), against which an appeal has been preferred before the Tribunal. 3. We have heard the riv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn. 4. The Hon'ble Bombay High Court in CIT vs. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom), has held that where an assessee possessed sufficient interest free funds of its own which were generated in the course of relevant financial year, apart from substantial shareholders' funds, presumption gets established that the investments in sister concerns were made by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) VS. Reliance Industries Ltd. (2019) 410 ITR 466 (SC) has reiterated the same view. 5. When we examine the amount of Investments at ₹ 8.55 crore as against the availability of Share Capital and Reserves at ₹ 96.55 crore, it becomes evident that the amount of such Investments is much less than the amount of shareholders' fund. Respectfully following the precedent, we order to de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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