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TMI Blog2012 (11) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... the disallowance of Rs.77,09,880/- made u/s.40A(2)(b) ?" Heard learned Senior Counsel Mr.Manish Bhatt for the Revenue and with his assistance, examined the papers. It emerges from the record that for the assessment year 2002-03, the assessee's claim of deduction of Rs.25,77,177/- under section 80IA was disallowed by the Assessing Officer on the ground that the assessee company had already started production prior to the insertion of section 80IA i.e. prior to the year 1984. It is further observed that the assessee company did not produce any material to suggest that there was any new industrial undertaking and that it produced articles which were prohibited under the Eleventh Schedule. Accordingly, the Assessing Officer deleted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee before the CIT(Appeals), on the ground that loan was taken for the purpose of business, and borrowing had not been doubted by the Assessing Officer, majority of them being old as also the fact that the rate of interest paid by the assessee-respondent for the past 10 years was not objected to at any point of time, this disallowance was not sustained. When challenged before the Tribunal, by a detailed order, it upheld the order of CIT(A). It would be apt to reproduce the findings of the Tribunal, as under: "13. We have heard the rival submissions and gone through the facts and circumstances of the case. We find that these loans were borrowed by the assessee for the purpose of business in earlier years i.e. since Assessment Year 1992-93 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee is quite reasonable having regard to the fair market value of such services. The Assessing Officer has not compared the rate of interest on unsecured loans. Therefore, the Assessing Officer was incorrect in restricting the interest payable to the extent of 19.5% only. Since the rate of interest paid by the assessee is reasonable, the order of CIT(A) ;is confirmed deleting the disallowance."
The issue is essentially based on facts presented before the adjudicating authorities. The reasons given by the Tribunal are sound having no error nor any perversity. The issue since is in the realm of facts, proposing no question of law much less substantial question of law, resultantly, Tax Appeal is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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