9911796707
TMI Blog2010 (9) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court at the instance of the revenue:- "1. Whether on the facts and in the circumstances of the case, the ITAT was correct in law in holding that a sum of Rs, 2,28,273/- was not disallowable out of interest claimed by the assessee by ignoring the material fact that the assessee had not charged any interest from its sister concern? 2. Whether on the facts and in the circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income Tax (Appeals) observed that there was no co-relation between the sums borrowed and the amounts advanced as loans. She also found that on identical facts, the Tribunal in the assessee's own case for assessment year 1977-78 vide order dated 3.11.1983 had deleted the addition and thereafter aggrieved of that order, the revenue filed appeal before the Tribunal. The Tribunal, inter al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the earlier years, question of disallowing the interest claimed by the assessee on the money borrowed by it would not arise. This issue is now squarely covered by the judgment of Supreme Court in the case of S.A. Builders Ltd. Vs. Commissioner of Income Tax (Appeals And Another, 288 ITR 1 where the Supreme Court observed as under:- "In order to decide whether interest on funds borrowed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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