TMI Blog2015 (2) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... stries Ltd. [2015 (2) TMI 119 - PUNJAB & HARYANA HIGH COURT]. - Decided against assessee Advances of interest free loans to the associated concerns - Tribunal setting aside the disallowance - Held that:- Issue to find out the nexus between the borrowed funds and the diversion thereof in the form of interest free loans requires to be examined in the light of the judgment of the Hon’ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 (for short the Act ) aggrieved against the order passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short the Tribunal ) on 02.12.2003 relating to the assessment year 1994-95. The Revenue - appellant has raised the following substantial questions of law: (i) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in deleting th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial question of law, the Tribunal disallowed the interest amounting to ₹ 1,13,35,469/- on the amount of interest free loan advanced to M/s Gujarat Cycles Ltd. and M/s Majestic Auto Ltd. Such deduction was set aside by the Commissioner of Income Tax (Appeals) vide order dated 29.12.1997 remitting the matter back to the Assessing Officer and to make any disallowance if there is nexus between t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s proved, no disallowance would be called for. The Revenue went in further appeal before the Tribunal. The Tribunal followed the earlier decision and set aside the disallowance made by the Assessing Officer. It may be noticed that the assessee was not in appeal against the order remitting the matter to the Assessing Officer, but still the Tribunal has set aside the disallowance altogether. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
