2017 (5) TMI 793 - SCH - Income Tax

Addition u/s 41 - Debentures issued to a sister concern - Held that - Issue notice on the question No.1 i.e. Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that the amount raised by the assessee by way of loan and interest expenditure pertaining thereto is for the purpose of business of the assessee being in nature of commercial expediency in view of the decision of Hon ble Supreme Court in case of S.A. Builders Ltd. 2006 (12) TMI 82 - SUPREME COURT whereas the factual matrix of the case makes it very clear that the entire amount raised by way of convertible debenture was advanced by the assessee as a loan to the sister concern and the assessee has failed to prove that the loan was raised for the purpose of business of the assessee ? - HC ref case 2016 (9) TMI 599 - BOMBAY HIGH COURT

Summary

The Supreme Court heard the petitioner's counsel and reviewed the relevant material. The delay was condoned, and notice was issued on the question regarding the justification of the Tribunal's decision on the nature of the loan and interest expenditure raised by the assessee.