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TMI Blog2012 (8) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... 448 towards interest. 3. Shri Cherry P Kurien, the ld. representative for the assessee submitted that the assessee has not availed any interest bearing working capital loan. The loan availed by the assessee was for the purpose of acquisition of specific asset. According to the ld. representative, the term loan availed by the assessee was in fact utilized for the purpose of acquisition of the specific asset. According to the ld. representative, the assessee has transferred some funds to the group concerns. This transfer was not out of finance availed by the assessee. According to the ld. representative, the funds generated during the year under consideration were transferred to the group concern. The ld. representative further submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d funds for the purpose of acquiring the asset. Therefore, it is for the assessee to establish the commercial expediency in diverting the funds to group concern. No commercial expediency was explained by the assessee either before the lower authorities or before this Tribunal. It is also not known for what purpose the funds were transferred to group concern. The matter would be entirely different if the assessee explained the purpose for which the funds were transferred to group concern. If the funds were transferred for business of the group concern, then it may come within the meaning of commercial expediency. In the absence of any explanation of the assessee, this Tribunal is of the opinion that when the funds were diverted and the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtinguish the debt but it will prevent the creditor from enforcing the debt. Therefore, section 41(1) of the Act has no application at all. 9. We heard the ld. DR Shri T.J. Vincent also. The ld. DR placed has placed his reliance on the observation made by the Commissioner of Income-tax(A). 10. We have considered the rival submissions on either side and also perused the material available on record. The assessing officer added the outstanding amount in the name of sister concern since three years' period has been expired. No doubt, for recovery of any amount the limitation provided under the Limitation Act is three years. The three years' period is only to enforce the recovery of the debt through court of law. However, it will not extingui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. representative for the assessee, the ground of appeal relating to sales promotion expenditure is disallowed, as not pressed. Revenue's appeal 12. Now coming to the departmental appeal, the only issue arises for consideration in the appeals for assessment years 2006-07 and 2007-08 is with regard to deduction u/s 80IB for extracting granite from granite hills and crushing granite boulders. 13. The ld. DR submitted that extracting granite from granite hills cannot be considered to be a manufacturing activity. Referring to the definition introduced by Finance Act, 2009, the ld. DR submitted that no distinct article or object was created by crushing granite boulders into small pieces and the character of the original article does not chan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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