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TMI Blog2019 (1) TMI 1393X X X X Extracts X X X X X X X X Extracts X X X X ..... able claim to put itself in the armchair of the businessman and assume the role to decide how much is reasonable expenditure having regarding to the circumstances of the case, No businessman can be compelled to maximize its profits. The authorities must put themselves in the shoes of the assessee and see how a prudent businessman would act. We have to see the transfer of the borrowed funds to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MR. S. RAVINDRA BHAT AND MR. PRATEEK JALAN JJ. Appellant Through: Mr. Ruchir Bhatia, Advocate Respondent Through: Ms. Kavita Jha Ms. Devika Jain, Advocates O R D E R 1. The Revenue is aggrieved by the order of the ITAT, rejecting its appeal. It urges that in the facts and circumstances of the case, the assessee s claim was for the purpose of providing loan to its subsidia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rorer under Section 36(1)(iii) of the Act. The assessee s appeal was accepted by the CIT. The Appellate Commissioner relied upon the decision of this Court in C o mmissioner of Income Tax vs. Dalmia Cement (Bharat) Ltd. [253 ITR 377 (DL)] . The CIT(A) holds as follows: In the present case, the loan and advances have been given on account of Commercial expediency and no notional interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whom the Revenue appealed, affirmed the decision of the CIT(A). 5. The grounds of commercial expedience are now well established in tax jurisprudence. The position of the CIT(A) and its affirmation by the ITAT are essentially based upon a fact appreciation that the assessee forewent interest. As to whether there was an element of sacrifice and if so, for what purpose, is not for the Court to co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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