2023 (6) TMI 1522

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....r for Appellant. Mr. P.J. Pardiwalla, Senior Advocate a/w Mr. Jitendra Jain i/b Mr. Atul K. Jasani for Respondent. P.C. : 1. The following three substantial questions of law are proposed by the Revenue in both appeals. SUBSTANTIAL QUESTION OF LAW a. Whether on the facts and in the circumstances of the case, the Ld. ITAT erred in law in directing the AO to allow the depreciatio....

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....nue receipt ? 2. As regards question (a) is concerned, Mr. Suresh Kumar in fairness agreed that it would be covered by the judgment of the Hon'ble Apex Court in Commissioner of Income Tax vs. SMIFS Securities Ltd. [2012] 348 ITR 302 (SC) . In fact, the Division Bench of this court in Commissioner of Income Tax - 2 vs. Birla Global Asset Finance Co. Ltd. [2014] 41 taxmann.com 262 (Bombay)  ....

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....e at hand relates to Assessment Year 2007-08. The Tribunal in the impugned order has relied upon order of the Tribunal for Assessment Year 2006-07 in assessee's own case wherein disallowance was confirmed at 2% of the dividend income. Relying on the order of the Tribunal for Assessment Year 2006-07, the ITAT in the impugned order has held that the disallowance on account of expenses under Section ....

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.... therefore, the presumption would arise that such investments have been made out of non interest bearing funds. In fact, the Hon'ble Apex Court in South Indian Bank Ltd. vs. Commissioner of Income Tax [2021] 130 taxmann.com 178 (SC) has also confirmed the position that when interest free own funds available with the assessee exceeded their investments, it would be presumed that investments were ma....