TMI Blog2005 (5) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal are to the following effect : (i) whether the assessee was entitled to 100 per cent depreciation on shuttering material; and (ii) whether relief of ₹ 21,100 being the disallowance out of interest for not charging adequate interest from the sister concern i.e., M/s. Poonam Biscuits has rightly been given. 4. In respect to the 100 per cent depreciation on shuttering material, the parties no more dispute that the matter is covered by the judgment in Harijan Evam Nirbal Varg Avas Nigam Ltd. v. CIT(1998) 229 ITR 776 (All) and, therefore, the said depreciation has rightly been given to the assessee. 5. We do not find any referable question so far the aforesaid point is concerned. 6. In respect of clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be treated as income of the assessee and, therefore, directed the same to be added in its income. 9. Placing reliance upon the case of CIT v. H.R. Sugar Factory (P) Ltd. (1991) 187 ITR 363 (All) the argument of the revenue has been reinforced by Sri Pradeep Agarwal that the Commissioner of Income-tax as well as the Income-tax Appellate Tribunal committed gross illegality in allowing the deletion of the aforesaid amount. 10. In the case of H.R. Sugar Factory (P) Ltd.(supra), the assessee, a private limited company, was carrying on the business of manufacture of sugar, in which the directors/shareholders were substantially interested. For the purposes of business, the assessee raised loan from banks on the security of its assets. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the banks and interest recovered from the directors under section 36(1)(iii) of the Income-tax Act, 1961. 13. In the present case, it is the specific case of the assessee that the firm was having sufficient capital amount so as to advance loan from its own funds. It is also the case of the assessee that the amount which has been advanced to M/s. Poonam Biscuits, the sister concern, has not been advanced from the amount of loan taken by the assessee from the bank or any other Government Department. 14. In the case of CIT v. Tin Box Co. (2003) 260 ITR 637, almost a similar question arose for consideration before the Delhi High Court, wherein the Court found that the Department had not been able to controvert or disprove the fact that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the hotel free of interest and the presumption as enunciated by the Andhra Pradesh High Court would in the aforesaid case would apply, the Tribunal, therefore, held that the working done by the Appellate Assistant Commissioner in disallowing a portion of the interest was not based on any principle and the estimate based by the Appellate Assistant Commissioner was found to be incorrect. 19. In the case in hand, the Commissioner of Income-tax has recorded a specific finding about the sufficiency of the capital amount being available with the firm and its partners and has also taken note of the fact that the amount of loan which has been advanced to the sister concern M/s. Poonam Biscuits, was not advanced from the amount of loan taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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