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2014 (6) TMI 351 - AT - Income TaxDeletion of perquisite u/s 2(24)(vi) - interest free loan to director - assessee is a Director in Chennai Corporate Club Private Ltd. - Revenue contended that the payment of interest by the assessee to the company was an afterthought and therefore should be ignored. – Held that:- Following VM Salgaocar And Bros. Pvt. Ltd. Versus Commissioner of Income-Tax [2000 (4) TMI 2 - SUPREME Court] - There was no specific error in the findings of the CIT(A) could be pointed out by the Revenue - the interest was actually paid by the assessee in respect of advances received by it from the company for the year under consideration – Revenue only contended that as the interest was paid in subsequent year, so it was an afterthought and therefore should be ignored – the fact that interest was paid on the advance received by the assessee was not denied – thus, there was no error in the findings of the CIT(A) that the loan received by the assessee from the company in question was not interest-free loan, but the same was interest bearing loan - no material could be brought on record by the Revenue to show that any interest expenditure was actually incurred by the company in question for or on behalf of the assessee - interest free money in the form of entrance fee and membership fee available with the company was more than the advance received by the assessee from the said company – thus, there was no reason to interfere with the order of the CIT(A) – Decided against Revenue.
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