TMI Blog2015 (3) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that:- Learned counsel for the appellant is unable to show as to how the decision of the Apex Court in the case of S.A. Builders (2006 (12) TMI 82 - SUPREME COURT ) does not apply in the matter before us wherein held that interest on barrowed capital by the assessee is to be allowed even if assessee has not charged any interest on the advances given by it out of such borrowed funds if such ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the Income Tax Appellate Tribunal, Patna Bench, Patna dismissing the appeal of the Department. 3. The appeal was filed before the Tribunal on the following ground: Whether on the facts and in the circumstances of the case the learned CIT (A) was warranted in ignoring the provisions of Section 43B and granting relief of ₹ 91,97,390/- which was not actually paid by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Supreme Court in the case of S.A. Builders Vs. ACIT: [2007] 288 ITR 01 (SC) wherein it was held that interest on barrowed capital by the assessee is to be allowed even if assessee has not charged any interest on the advances given by it out of such borrowed funds if such advances are for business purpose. It was held by the Supreme Court that such interest on borrowed funds by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy. However, money can be said to be advanced to a sister concern for commercial expediency in many other circumstances (which need not be enumerated here). However, where it is obvious that a holding company has a deep interest in its subsidiary and hence if the holding company advances borrowed money to a subsidiary and the same is used by the subsidiary for some business purposes, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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