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2008 (4) TMI 446 - HC - Income TaxInterest on borrowed capital - Whether, Tribunal is right in law m upholding the order of the Commissioner of Income-tax (Appeals) in deleting the addition made by the Assessing Officer on account of notional interest on the money advanced by the assessee to their sister concerns, without charging any interest - In none of these cases, a finding has been recorded as to whether the interest free loan was given by the assessee to their sister concerns or their directors not as a measure of commercial expediency. Before disallowing the question of deduction of interest amount pertaining to the interest free loan advanced to the sister concerns or its directors, it is incumbent on the authorities to record such a finding. Therefore, we are of the opinion that the impugned orders, passed by the Income-tax Appellate Tribunal, are not sustainable and the same are, hereby, set aside. The matter is remitted to the Income-tax Appellate Tribunal to reconsider the matter in the light of the principle laid down by the Supreme Court in S. A. Builders Ltd. ‘s case
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