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2009 (11) TMI 566 - AT - Income TaxFund borrowed from bank - Interest free advance to sister concern - In the first ground of appeal, the issue involved is regarding the disallowance of interest paid to the bank - AO observed that it cannot be held that the money borrowed by the assessee and later on advanced by its sister concern and others free of interest was not utilized for the purposes of its own business and the assessee has not derived any benefit of the same. - Disallowance made by AO confirmed by CIT(A) - Held that: - if an issue under consideration before a Bench of a Tribunal on same facts has already been considered and adjudicated upon by a co-ordinate Bench in the case of same assessee for an earlier assessment year, the Tribunal is bound to follow the decision of the co-ordinate Bench. As a result of the discussion hereinabove, the ground No. 1 of the cross-objection filed by the assessee is rejected. Polishing expenses - disallowance of Rs. 3,03,54,472 at the rate of 15 per cent of the polishing charges - In its reply, the assessee submitted that the polishing workers are petty artisans moving from place to place and have mostly no permanent residential addresses - Assessing Officer observed that from the reply of the assessee, the assessee has not been able to satisfactorily explain the identity and genuineness of the transactions - From the orders of tax authorities below, it becomes clear that they have not disputed that in the manufacturing business of utensils, the assessee has to incur the polishing expenses - the order of the ld. CIT(A) in restricting the disallowance at the rate of 15 per cent as detailed in his order is upheld - In the result, the appeal filed by the assessee and the appeal filed by the revenue are dismissed
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