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2012 (7) TMI 427 - AT - Income TaxWhether loan to “Sister Concern” even out of borrowed funds is not liable to be disallowed - appellant submitted a copy of ledger account in its books of account during the appellate proceedings to claim the opening balance as well as advance of loan during the year – Held that:- Books of account were seized by the Central Excise and Customs Deptt. Of the appellant and not of its sister concern. It is, therefore, the appellant has no explanation or credible evidence to substantiate its claim of interest - assessee has given interest free loan to sister concern at Rs. 1.20 Crore which is more less matching with interest free fund available with the assessee - There is no direct nexus between interest bearing borrowed fund with interest free advances in the assessment order - assessee’s appeal is allowed
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