2010 (9) TMI 40

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..... allowable - decided in favor of assessee
CORAM : HON'BLE MR. JUSTICE A.K. SIKRI HON'BLE MS. JUSTICE REVA KHETRAPAL Ms. Prem Lata Bansal, Advocate A.K. SIKRI, J. (ORAL) 1. The following two questions are referred for opinion of this Court at the instance of the revenue:- "1. Whether on the facts and in the circumstances of the case, the ITAT was correct in law in holding that a sum of Rs, 2 .....

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..... ficer and of the Commissioner of Income-tax (appeals). Calculating the interest @ 16.5% on the average balances of these 8 or 9 parties, the assessing officer added an amount of Rs. 2,28,273/- to the income of the assessee. The Commissioner of Income Tax (Appeals) observed that there was no co-relation between the sums borrowed and the amounts advanced as loans. She also found that on identical fa .....

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..... ound that there was no nexus between the money borrowed by the assessee from the banks and utilized for its own business purpose and the money which was given by the assessee to its sister-concerns as interest free loans and advances in the earlier years, question of disallowing the interest claimed by the assessee on the money borrowed by it would not arise. This issue is now squarely covered by .....

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..... incurred on grounds of commercial expediency" 3. This question is, therefore, decided in the affirmative i.e. in favour of the assessee and against the revenue. 4. In so far as the second question is concerned, that also stands determined by the judgment of the Supreme Court in the case of 269 ITR 397-398 in favour of the assessee. 5. Both the questions are answered accordingly.
Case laws, .....

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