TMI Blog2010 (9) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... ON'BLE MR. JUSTICE A.K. SIKRI HON'BLE MS. JUSTICE REVA KHETRAPAL Ms. Prem Lata Bansal, Advocate A.K. SIKRI, J. (ORAL) 1. The following two questions are referred for opinion of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax (appeals). Calculating the interest @ 16.5% on the average balances of these 8 or 9 parties, the assessing officer added an amount of Rs. 2,28,273/- to the income of the assessee. The Commissioner 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the money borrowed by the assessee from the banks and utilized for its own business purpose and the money which was given by the assessee to its sister-concerns as interest free loans and advances 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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