TMI Blog2004 (5) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount had been advanced - no material on record to show that the assessee had derived any business benefit by advancing the interest-free amounts to its sister concern. - Disallowance made by the Assessing Officer was justified. - - - - - Dated:- 13-5-2004 - Judge(s) : N. K. SUD., HEMANT GUPTA. JUDGMENT The judgment of the court was delivered by N.K. Sud J. -This order will dispose of four appeals, viz., I.T.A. Nos. 6, 7, 119 and 120 of 2003, involving common questions of law and fact. These appeals have been filed by the assessee-company against the order of the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short "the Tribunal"), dated June 20, 2002, for the assessment years 1990-91 and 1991-92. Although ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e other parties to whom no interest had been paid. Accordingly, he directed the Assessing Officer to calculate disallowance of interest only relating to the sum of Rs. 18 lakhs. The disallowance was accordingly reduced to that extent. Both the assessee as well as the Revenue filed appeals before the Tribunal. The Revenue questioned the reduction in disallowance granted by the Commissioner of Income-tax (Appeals) whereas the assessee claimed that the entire disallowance deserved to be deleted. The Tribunal vide order dated June 20, 2002, accepted the case of the Revenue and held that the entire amount of Rs. 82 lakhs had been advanced by utilising the overdraft account and, therefore, disallowance made by the Assessing Officer was justifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owance as made by the Assessing Officer. Accordingly, the appeal of the Revenue on this issue was allowed and that of the assessee dismissed. I.T.A. Nos. 119 and 120 are directed against these findings. We have heard counsel for the parties and perused the orders of the authorities below. The Tribunal has recorded categorical findings of fact that the amounts advanced by the assessee to its sister concern-M/s. S.A.B. Credits Limited, had been advanced by utilising the overdrafts account and that on the dates on which the amounts were so advanced, there was no credit balance in the bank account of the assessee. The Tribunal has also observed that the assessee has not been able to explain the purpose for which the amount had been advanced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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