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TMI Blog2013 (6) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... al by the revenue for assessment year 2007-08 following questions of law have been raised for our consideration. (a) Whether on the facts and circumstances of the case and in law the Tribunal erred in holding that payments to sister concerns have been incurred for services rendered without appreciating that the Commissioner of Income Tax (Appeals) has specifically looked at the reasonability of q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and circumstances of the case the Tribunal erred in affirming the order of the Commissioner of Income Tax (Appeals) without appreciating the fact that the assessee had lesser amount of interest free funds available than advanced as interest free? 3. So far as question (a) is concerned, the respondent assessee was interalia engaged in the business of execution of contracts for erection and com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration extraneous to any allegation that the amounts paid to its sister concerns were over and the above the salaries due to the employees. In the circumstances, the Tribunal concluded that the expenditure was incurred for salaries and thus no occasion to invoke Section 40(a)(ia) of the Act can arise. Since the decision of the Tribunal is essentially based on a finding of fact we see no reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of its own interest free funds to the extent of Rs.72 lacs. Therefore, it has to be presumed that interest free advances have been made out the same. As the decision of the Tribunal is based on a finding of fact and the decision of this Court in the matter of Reliance Utility & Powers Ltd (supra), we see no reason to entertain question (d).
6. The appeal is admitted on question (c) X X X X Extracts X X X X X X X X Extracts X X X X
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