TMI Blog2005 (5) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... erfere with such findings. - Besides the fact that no question of law, much less a substantial question of law arises in the present case, the other predominant factors, which would require dismissal of this appeal are that, from the records no nexus can be traced between the borrowed funds and the interest-free advances made by the assessee to its sister concern. Secondly, it has been clearly established on record that the assessee itself had taken loans with interest and had advanced funds by diversion or otherwise to its sister concern free of interest - held that additions to the extent of "interest" are justified - - - - - Dated:- 5-5-2005 - Judge(s) : SWATANTER KUMAR., MADAN B. LOKUR JUDGMENT The judgment of the court was deli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als) which found favour with him and he disallowed the addition so made by the Assessing Officer with the following observations: 'I have considered the submission of the Authorised Representative, as well as the reasons given by the Assessing Officer in the assessment order for disallowing the claim. But the Assessing Officer has not been able to establish a direct nexus between the interest bearing loan taken and the interest-free advance given to the sister concern. The action of the Assessing Officer is not justified. Hence, the disallowance made is deleted. Thus, ground No. 3 is allowed.' The Revenue has a grievance to the said order of the Commissioner of Income-tax (Appeals) and is in appeal before us. At the time of hearing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer on account of interest. Consequent to the above the appeal filed by the Revenue succeeds and is hereby allowed. (Sd.) Keshav Prasad, Accountant Member. (Sd.) Y.K. Kapur, Judicial Member." As is evident from the above recorded findings the Income-tax Appellate Tribunal considered in entirety all the circumstances on the record and noticed that a concern which itself was taking loans from the market in the same financial year had given loan to the extent of Rs. 34 lakhs to its sister concern free of interest. This conduct was not justified. Consequently, it directed that the deletion by the Commissioner of Income-tax (Appeals) of the addition made by the Assessing Officer was not justifiable in law. The assessee had placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , much less a substantial question of law, arises from the orders of the Tribunal. It is not shown to us as to which finding of the Tribunal is either without any evidence or material or it is contrary to the evidence, to term it as perverse. Thus, there is no scope for interference by this court on the aforenoted findings of fact recorded by the Tribunal." In view of the above law, besides the fact that no question of law, much less a substantial question of law arises in the present case, the other predominant factors, which would require dismissal of this appeal are that, from the records no nexus can be traced between the borrowed funds and the interest-free advances made by the assessee to its sister concern. Secondly, it has been cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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