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2014 (4) TMI 680 - HC - Income TaxDisallowance u/s 36(1)(iii) of the Act – Interest free advances - Whether the Tribunal fell into error in setting aside the disallowance u/s 36(1)(iii) of the Act - Held that:- The Tribunal was of the view that the advancing of interest-free monies to the subsidiary companies was driven by business considerations since the subsidiaries were also engaged in the same business in which the assessee was engaged – Relying upon SA BUILDERS LTD. Versus COMMISSIONER OF INCOME-TAX (SC) [2006 (12) TMI 82 - SUPREME COURT] - it would be in the interest of business of the assessee and certainly would be commercially expedient for the assessee to advance interest-free monies to the subsidiaries as part of the corporate business strategy to expand its business operations through its subsidiaries – thus, the order of the Tribunal is upheld – Decided against Revenue.
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