TaxTMI 
TaxTMI 
2019 (8) TMI 344
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.... therefore they are being disposed off by way of this common order for the sake of convenience. 3. Further to the order of the Ld. CIT(A), and having heard the arguments of both the parties, we find that the issue to be adjudicated in the instant case is whether any disallowance of interest on the capital work in progress, on the interest free advances given for capital purpose and interest on investments is in consonance with the established judicial precedence or not. 4. The assessee has incurred capital work in progress and capital advance given as under: Sr. No. Particulars of assets Amount as on 31.03.2011 (in Rs.) 1. Building under construction 12,61,52,146/- 2 Machinery under installation 1,03,84,496 3 Capital Adv....
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....e advances have been made out of the interest free funds. 7. The facts on record shows that the assessee is found to be having the own funds in the form of share capital and reserves and surplus as under: Assessment year Own Capital including Share Capital and Reserves & Surplus (in Lacs) 2010-11 12,992.47 2009-10 10,402.87 2008-09 8,281.74 7.1 In the instant case, further we find that the loans received from the bank in the utilization thereof is as under: Nature of Loan Balance as on 31.03.2011 (in Lacs) Utilization/Remarks Term Loans From various Bank 13,478.16 The said loans were taken in earlier years for the purchase of assets/CWIP and related interest has already been capitalized in earlier as well as during t....
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....ose by the Revenue. We also rely on the legal proportion espoused in the following judgments: * Hon'ble Gujarat High Court in the case of CIT vs. RL Kalthia Engineering & Automobiles P. Ltd. (2013), * Hon'ble ITAT Chandigarh Bench in the case of ACIT v. Upper India Steel in ITA No.920/CHD/2009 order dated 08.02.12, * Hon'ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power ltd. 313 ITR 340, * Bright Enterprises Pvt. Ltd vs. CIT 381 ITR 107, * Hon'ble ITAT Chandigarh Bench in the case ACIT vs. M/S DEEPAK BUILDERS as reported in ITA No. 1000/Chd/2013 dated 26.02.2016 * ACIT vs. M/s Omax Bikes Ltd in ITA no. 1085/Chd/2013 dated 06.08.2015 Since the assessee has been found to be having sufficien....