TMI Blog2014 (4) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the subsidiaries were also engaged in the same business in which the assessee was engaged – Relying upon SA BUILDERS LTD. Versus COMMISSIONER OF INCOME-TAX (SC) [2006 (12) TMI 82 - SUPREME COURT] - it would be in the interest of business of the assessee and certainly would be commercially expedient for the assessee to advance interest-free monies to the subsidiaries as part of the corporate bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee filed an appeal which went up to the Income Tax Appellate Tribunal. The Tribunal set aside the assessment on two issues : (1) disallowance of interest under section 14A and (2) disallowance of interest under section 36(1)(iii), and remanded the matter to the AO for fresh decision in the light of the judgments of this Court in CIT. Vs. Orissa Cement Ltd. 258 ITR 365 and Elmer Havell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther appeal the Tribunal in its order dated 15.3.2012 held, so far as disallowance under section 14A is concerned, that though the disallowance was justified in principle, but since the investment in the shares was made only on the last day of the accounting year i.e. on 31.3.2001, the disallowance should be restricted proportionately for one day only. So far as the disallowance under section 36( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e through the subsidiaries. It accordingly directed allowance of the interest of Rs.31,39,988/-. 3. According to the Tribunal, advancing of such monies to the subsidiaries was driven by commercial expediency. In support of this view the Tribunal relied upon the following judgments : (1) SA Builders v. CIT : 288 ITR 1 (SC) (2) CIT V. Dalmia Cement (P) Ltd. : 254 ITR 37 (Del.) (3) CIT V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d certainly would be commercially expedient for the assessee to advance interest-free monies to the subsidiaries as part of the corporate business strategy to expand its business operations through its subsidiaries. This finding of fact has not been disputed. If that is so we do not see how the decision of the Tribunal can be faulted. 5. The question of law is accordingly answered in the negati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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