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2016 (4) TMI 640 - HC - Income TaxComputation of capital gain - CIT(A) has opined that the capital gains have to be computed under section 2(42C) r.w.s. 50B whereas as per assessee capital gains have to be computed on the basis of section 2(11) read with section 50 - Held that:- It is unable to conclude as to why and how can the sale be treated as a slump sale. It is unable to dispute that in the assessment year 2002-03, the plant and machinery of all the gardens had a written down value of ₹ 2,77,34,222/-. For the year under consideration, a separate standard could not have been insisted upon. That would not also be in accordance with the concept of block of assets. Once the fact that the block of assets computed at a sum of ₹ 2,77,3,222/- for the assessment year 2002-03 is admitted, there remains no further controversy as regards the fact that during the year under consideration there was an addition of a sum of ₹ 4.41 crores approximately. The opening balance and the addition during the year aggregate to a sum of ₹ 7,18,62,306/-. The sale took place at a sum of ₹ 8,23,75,000/-. The difference between the two would be a sum of ₹ 1,05,12,694/- as computed by the assessee.We find that the computation made by the assessee is a correct computation - Decided in favour of assessee Interest free loans or advances to its sister concerns - disallowance u/s 36 - Held that:- It is not in dispute that the assessee had advanced interest free loans or advances to its sister concerns whereas the assessee had borrowed money in respect whereof the assessee was liable to pay interest. Mr. Khaitan's submission that the loans or advances made to the sister conccerns were from out of the own funds of the assessee and the money was borrowed for the purpose of business unable to be accepted. The question essentially is a question of fact. Both the CIT(A) and the Tribunal have come to a concurrent finding that the amount of interest spent by the assessee could not allowed to be deducted in the facts and circumstances of the case. We cannot interfere with the aforesaid finding of fact. - Decided against assessee.
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