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2011 (7) TMI 33 - HC - Income TaxDisallowance - Interest free loan to sister concern out of borrowed capitals and traveling expense of spouse - In the case of the assessee for another Assessment Year, has answered the point in the affirmative and against the Revenue, (Vide our order dated March 17, 2011 in I. T. A. no.624 of 2004) - Decided in favour of assessee Regarding interest free loan - It is now settled law that if two alternative reliefs are claimed and the Court grants the alternative one by rejecting the first prayer, a litigant has a right to prefer an appeal for grant of the main relief - It is now a settled law that it is permissible for an assessee to borrow the fund from the bank and lend some of it to its sister concern (a subsidiary) on interest-free loan - Held that: it should be presumed that the subsidiaries were paid out of the profit of the assessee which is far in excess of the amount of subsidiaries and there was no justification of adding a sum of Rs.27,200/- as approved by the Tribunal - Decided in the favour of assessee
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