9911796707
TMI Blog2016 (6) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... account of business expediency to M/s. Castle Breweries Ltd. and the non-recovery of these advances was due to the fact that M/s. Castle Breweries Ltd. was declared as a sick company and later ordered to be wound up both by BIFR and the Hon'ble High Court of Calcutta ? b) Whether in law, the provisions of Section 14A of the Act are applicable to the expenses incurred by the appellant towards interest and others on the loan borrowed for advances made to the subsidiaries in the course of business for its expansion ? 2. We have heard Mr. S.Parthasarathi, the learned Counsel appearing for the appellant - asses see and Mr. K.V.Anand, the learned Counsel appearing fo r the respondent. 3. As such, on the first question, the reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss. It may be that Castle Breweries is controlled and managed by the assessee but for that reason alone it cannot be said that the amount standing to the debit of Castle Breweries can be allowed as business loss. The loss must be incidental to the assessee's business. Simply meeting or reimbursing the expenditure of the controlled company, without anything more, does not afford any nexus between the business of the assessee and the loss. The fact that Castle Breweries was being controlled and managed by the assessee does not take its case any further. We have also perused the authorities cited on behalf of the assessee. Those cases were rendered on their own facts. Whether there was connection between the assessee's business and the loss i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the documents and the material produced on record and therefore, it becomes a question of law to be agitated in the present appeal. 6. In our view, whether the nexus is established or not, is to be examined in the facts of each case. It is essentially a question of fact, for which the Tribunal is the ultimate fact finding authority. However, the attempt to contend that the Tribunal has not properly considered the material on record, in our view, will also fall in the arena of re-appreciation of facts, which cannot be undertaken to upset the finding of fact in an appeal before this Court, which is limited to only a question of law. 7. Under the circumstances, we do not find that, first question of law would arise for consideration in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares in the companies or for making advances to Castle Breweries. We, therefore, restore this issue to the file of the Assessing Officer with the above directions. The ground is treated as partly allowed. 9. The aforesaid shows that the Tribunal after holding in principle the applicability of Sec. 14A, has further directed the Assessing Officer to ascertain from the facts of the case as to how much interest bearing borrowings was utilized to acquire shares in the companies and the matter is relegated to the Assessing Officer. As per the language in Sec.14A, the enquiry has to be undertaken by the Assessing Officer which has been so ordered by the Tribunal. Hence, it can be said that the Tribunal has exercised the discretion where rights ..... X X X X Extracts X X X X X X X X Extracts X X X X
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