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2013 (3) TMI 606 - GUJARAT HIGH COURTAddition on account of Modvat - Disallowance being interest attributable to interest free advances - Held that:- Deletion the addition on account of Modvat - This issue is covered by the decision of the Apex Court in case of Commissioner of Income-tax vs. Indo Nippon Chemicals Co. Ltd. reported in [2003 (1) TMI 8 - SUPREME Court ] . In the result, this issue does not require any further detailed reasonings. Deletion the disallowance being interest attributable to interest free advances - The Tribunal relied on the decision of the Bombay High Court in case of CIT vs. Reliance Utilities and Power Ltd. reported in [2009 (1) TMI 4 - HIGH COURT BOMBAY ]. It was held that if there were funds available both interest-fee and overdraft and/or loans taken, then a presumption would arise that investments would be out of the interest-free fund generated or available with the company, if the interest-free funds were sufficient to meet the investments. We see no reason to interfere in the said issue when both the Authorities have concurrently held that there were sufficient funds available with the company and they held in favour of the assessee. - Decided against the revenue.
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