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2014 (2) TMI 473 - AT - Income TaxInterest free loans given to sister concern – Held that:- The amounts advanced by the assessee to CDPL was for the purpose of commercial expediency of the assessee only - the judgement in S.A. Builders v. CIT [2006 (12) TMI 82 - SUPREME COURT] - the interest-free loans were given to its sister concerns and others as a measure of commercial expediency - the interest-free loan was given to the sister company (which is a subsidiary of the assessee) as a measure of commercial expediency, and if it was, it should have been allowed - The expression 'commercial expediency' is an expression of wide import and includes such expenditure as a prudent businessman incurs for the purpose of business - The expenditure may not have been incurred under any legal obligation, but yet it is allowable as business expenditure if it was incurred on grounds of commercial expediency – Decided in favour of Assessee.
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