2019 (4) TMI 1793

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..... sessee is a private limited company and is engaged in the business of financing. During the scrutiny assessment of the assessee s return for the assessment year 2008-09, Assessing Officer noticed that the assessee had claimed expenditure of interest paid on borrowed funds. The assessee had also funded its sister concern without charging interest. The Assessing Officer therefore disallowed the inte .....

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..... not upholding the decision of the Ld.CIT (A) in allowing assessee's claim for deduction of interest on borrowed fund when the same is utilised to give interest free loan/share application money to subsidiary companies?" 2. Respondentassessee is a private limited company and is engaged in the business of financing. During the scrutiny assessment of the assessee's return for the assessment .....

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..... d secondly, we note that advancing loan to the sisterconcern was for the purposes of "Commercial Expediency", thus, we find merit in the contention of the ld. counsel for the assessee. So far as, the issue of commercial expediency is concerned, the decision has to be taken by the assessee and the Assessing Officer is not expected to sit in the chair of the assessee and to decide the business inter .....

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