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TMI Blog2019 (12) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [ 2015 (11) TMI 1314 - SUPREME COURT] also analyzed laid down the same dictum. In the instant case, the interest free funds available with the assessee were more than the advance paid to its sister concerns, therefore the issue in hand remanded to the file of AO to decide accordingly as per dictum of the Hon ble Apex Court. Ground No.1 2 are co-related and hence allowed for statistical purposes. Interest subsidy by the Revenue Authorities as Revenue receipt - HELD THAT:- CIT(A) has correctly observed that the appellant has himself shown the amount of interest subsidy as Revenue Receipt however, it is a fact that as per the judgment of jurisdictional High Court in the case of Sh. Balaji Alloys (supra), the interest subsidy has been treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, for the sake of brevity and convenience the facts of ITA No.173/Asr/2014 for A.Y.2009-10 have been taken into consideration for adjudication of the issues and result of the same shall be applicable mutatis mutandis to ITA No.174/Asr/2014 for A.Y.2010-11. 3. The assessee by way of the application dated 28.06.2016 sought permission to accept the amended grounds of appeal, on which the Ld. DR did not raise any objection, hence, we have accepted the amended grounds of appeal which are reproduced herein below. "1. That the ld. A.O & CIT(A) wrongly made addition being failed to prove any personal use of loans or nexus of interest paid to bank Vs. Loan given to sister concerns i.e., M/s Rajdhani Industries & M/s Rajdhani Yarn Mills, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee has raised the issue that Ld. A.O & CIT(A) wrongly made addition being failed to prove any personal use of loans or nexus of interest paid to bank Vs. Loan given to sister concerns i.e., M/s Rajdhani Industries & M/s Rajdhani Yarn Mills, when there is already excess balance in Proprietor's Capital A/c, than loans given, as well as, these loans represents Interest-Interest free loans, resulting into Commercial Expediency. (Also referred at Page-9 of CIT(A)'s order. The Assessee has given interest free loans of ₹ 1,23,36,000/- and ₹ 95,70,000/- to its sister concern namely M/s. Rajdhani Industries and M/s Rajdhani Yarn Mills respectively . The assessee has also taken loan from Syndicate Bank and HDFC Bank. The assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Hero Cycles Ltd. [2010] 379 ITR 347 and Munjal Sales Corporation vs. CIT, Ludhiana (Civil Appeal No.1378/2008 dated 19th Feb., 2008) also analyzed laid down the same dictum. In the instant case, the interest free funds available with the assessee were more than the advance paid to its sister concerns, therefore the issue in hand remanded to the file of the Ld. Assessing Officer to decide accordingly as per dictum of the Hon'ble Apex Court. Ground No.1 & 2 are co-related and hence allowed for statistical purposes. 5. Second issue raised by the assessee relates to the consideration of interest subsidy by the Revenue Authorities as Revenue receipt. 5.1 The assesse is aggrieved that the ld. CIT(A) has wrongly taken Interest Subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndingly, (with the same amount) and cannot be added separately, as taxable income, of the appellant, in fact is a covered matter by these judgments : (a) Sunandan Aggarwal Vs. ITO, Jammu ITA No. 524/Asr/2014 (Amritsar Tribunal) (b) Sun Pharmaceuticals ITA No. 184/Asr/2009 dated 11.06.10 The assesse has claimed that as per dictum of Tribunal in the case of Sun Pharmaceuticals 184/Asr/2009 dated 11.06.2010 and in the case of Sunandan Aggarwal Vs. ITO, Jammu ITA No.524/Asr/2014, the disallowances of interest shall result in decrease of loss and therefore, cannot be treated as taxable income as the same will not change the amount of deduction u/s 80-IB of the Act. In the interest of justice, in our considered view, it would be appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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