Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 321 - MADRAS HIGH COURTRevision u/s 263 - Assessee advanced more than 46% of capital to its sister concern company - Commissioner ordered re-assessment owing that borrowing was made by the assessee company in its own name for investing it in sister concern company - Held that:- issue on the borrowed money given to the sister concern was not a subject matter of consideration by the Assessing Officer - purpose of invoking jurisdiction under Section 263 of the Income Tax, the Commissioner has to have some material to enable him to form a prima facie view that the order passed by the Officer was erroneous and was prejudicial to the interest of the Revenue - No justifiable ground to hold that there was no error in the order of the Assessing Officer to justify the invoking of the jurisdiction under Section 263 - Decided in favour of Revenue. whether the amount advanced was a measure of commercial expediency - Held that:- authorities and the Courts should examine the purpose for which the assessee advanced the money and what the sister concern did with the money - in considering the question that the borrowed amount was not utilized by the assessee in its own business but had been advanced as interest free loan to its sister concern is not relevant, what is relevant is whether the amount was advanced as a measure of commercial expediency and not from the point of view whether the amount was advanced for earning profits - advancing of funds by the assessee into the sister concern was in terms of the BIFR's order - Matter not remanded back - Decided in favour of Revenue.
|