2006 (8) TMI 123 - PUNJAB AND HARYANA HIGH COURT

Disallowance made on account of interest on interest free advances given to the sister concern for non-business purpose - addition on account of sales tax subsidy - Held that assessee will not be entitled to claim deduction of the interest on the borrowings to the extent those are diverted to sister concerns or other persons without interest; and the kind of sales tax subsidy received by the assessee in the present case is held to be revenue receipt and not capital in nature.