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2013 (8) TMI 767 - HC - Income TaxAddition on account of abandonment of interest on interest free loan given to sister concern – Addition made u/s 4(1)(c) of the Gift Tax Act - Assessee has taken the advances/loans on the interest @ 18%. Equal interest was charged from some of the sister concerns. But no interest was charged from a few selected sister concerns. For this discrimination, neither any reason was given by the assessee nor the authorities below including the Tribunal have examined this aspect. Undoubtedly, the assessees are the financial concerns and their main object is to earn interest, then, why the interest was not earned from a few selected sister concerns – Held that :- The matter need to be examined on the basis of judgment in the case of Kamla Ganpati v Controller of State Duty, [2001 (2) TMI 132 - SUPREME Court] as well as in the case of M. Janardan vs. Joint CIT, [2005 (1) TMI 14 - SUPREME Court] . Examination to be done by the Hon’ble Tribunal to establish the bonafied action on the part of the assessee – Impugned order/judgment set aside and restored back the matter to the Tribunal to pass a fresh orders in the light of above discussions as per law.
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