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2016 (8) TMI 154 - GUJARAT HIGH COURTDisallowance of interest - borrowed funds which is diverted to the sister concern, without charging interest - Held that:- We are of the opinion that the Tribunal has not committed any error in deleting the addition made on account of disallowance of interest relating to the borrowed funds which is diverted to the sister concern without charging interest. From the above, it is clear that the Tribunal has correctly approached the issue which has been proposed in the present Tax Appeals. When there was no evidence brought on record by the Department for the Tribunal to hold otherwise, we hold that the issue is appropriately concluded in favour of the assessee and against the Revenue. The Tribunal has rightly relied upon the decision of the Apex Court in the case of Munjal Sales Corporation (2008 (2) TMI 19 - Supreme Court ). It is borne out that the advances were either for commercial expediency given to its sister concern or the assessee was having surplus interest free funds. - Decided in favour of the assessee
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