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2015 (10) TMI 2014 - AT - Income TaxInterest earned by the appellant during pre operation period on the grant received from government of India - Held that:- Going through the serial No. 31 to 40 of the paper book and various copies of orders of Ministry of Textile about agreement of subsidy, which required to be considered before deciding the nature of interest income, therefore, we set aside this issue to the Assessing Officer and is directed to give a reasonable opportunity of being heard to the assessee. The assessee is also directed to cooperate with the Assessing Officer and furnished all required details. Accordingly, we set aside this issue to the Assessing Officer for de novo Interest disallowed against interest free loan given to the related concern - whether there was no business expediency of the assessee to give interest free advances to the sister concern? - CIT(A) allowed the claim - Held that:- CIT(A) has thoroughly examined this issue on facts as well as on legal side of the case. The appellant had filed detailed information as to when the share capital was received and how the part of share capital was advanced to his sister concern on which no interest has been charged. Even in respect of credit transactions on account of sweep transfer in the bank account against which loan was advanced to M/s JTPL Texmart Pvt. Ltd. The ld CIT(A) has held that sweep transfer is the amount from FDRs, which were earlier got by the appellant when the requirement of funds was there for making such loan to M/s JTPL Texmart Pvt. Ltd., such FDR amount was automatically transferred from FDR account to current account. The assessee had not advanced interest bearing fund to its sister concern, therefore, charging of interest on advance to sister concern and reduction from the pre-operative expenses was not justified. The ld DR had not controverted the finding given by the ld CIT(A). Therefore, we uphold the order of the ld CIT(A) on this ground - Decided against revenue.
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