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2011 (12) TMI 134 - DELHI HIGH COURTAddition on account of dis-allowance of interest and financial charges u/s 36(1)(iii) – Revenue contention that there is no co-relation between the utilization of borrowed funds and investments( selling off a segment of business to subsidiary & getting shares of it) made by it - Held that:- The Assessing Officer while disallowing the payment of interest and financial charges had failed to notice and given due credence to the fact that there was increase in interest payment this year, but the term loan and the credit facility had continued from the last year. Further, the assessee had declared a loss of Rs.1.88crs in the return filed for the assessment year in question. Lastly there are contradiction in the finding recorded by the Assessing Officer that involvement of the respondent in subsidiary company cannot be regarded as on account of business consideration.- Decided against the Revenue.
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