TMI Blog2004 (9) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ister concern. It is on that amount that the interest is to be calculated and disallowed. The Assessing Officer will have to calculate the exact time for which the amount was utilised out of the borrowed funds. - we remand the matter to the Assessing Officer - - - - - Dated:- 28-9-2004 - Judge(s) : B. C. PATEL., BADAR DURREZ AHMED. JUDGMENT The judgment of the court was delivered by B.C. Patel C.J. - On remand made by the Supreme Court in Civil Appeal No. 1479 of 2004 in the case of Motor General Finance Ltd. v. CIT [2004] 267 ITR 381, decided on February 25, 2004, this appeal is listed before us for hearing. From the order of the Tribunal, it transpires that there was a specific ground with regard to the disallowance of Rs. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eutical Works Ltd. v. CIT [1997] 224 ITR 627 that vacated the disallowance, as submitted before the Assessing Officer. It is against this order that the appeal has been preferred before this court. In view of this, the court answered the question in negative, i.e., in favour of the Revenue and against the assessee. It is against this order that the assessee preferred an appeal before the Supreme Court which was disposed of on February 25, 2004. The Supreme Court held as under: "We have seen from the file that, as contended by learned counsel, certain statements were produced before the authorities, notice of which has not been taken by the High Court. The contents of these statements would have vital importance on the ultimate decision th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer as to what extent the benefit of borrowed funds was granted by way of allowing the advance to the sister concern. It is on that amount that the interest is to be calculated and disallowed. The Assessing Officer will have to calculate the exact time for which the amount was utilised out of the borrowed funds. We could have remanded the matter to the Tribunal for doing the exercise but in view of the fair statement made by learned counsel that let it be remanded to the Assessing Officer so as to enable him to calculate the exact number of days for use of the borrowed funds, we remand it to the Assessing Officer. It goes without saying that pages 70-74 (file before the Supreme Court) will have to be examined by the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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