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2014 (4) TMI 680 - HC - Income TaxDisallowance u/s 36(1)(iii) of the Act Interest free advances - Whether the Tribunal fell into error in setting aside the disallowance u/s 36(1)(iii) of the Act - Held that:- The Tribunal was of the view that the advancing of interest-free monies to the subsidiary companies was driven by business considerations since the subsidiaries were also engaged in the same business in which the assessee was engaged Relying upon SA BUILDERS LTD. Versus COMMISSIONER OF INCOME-TAX (SC) [2006 (12) TMI 82 - SUPREME COURT] - it would be in the interest of business of the assessee and certainly would be commercially expedient for the assessee to advance interest-free monies to the subsidiaries as part of the corporate business strategy to expand its business operations through its subsidiaries thus, the order of the Tribunal is upheld Decided against Revenue.
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