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TMI Blog2003 (3) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... posed to be considered, being substantial questions of law: Assessment year 1989-90 (Appeal No. 45 of 2003): "Whether the amount of Rs. 2,40,74,820 utilized by the assessee-company for acquisition of shares of M/s. Sharpedge Ltd. through its subsidiaries in order to acquire controlling interest and improve the business conditions is not 'for the purpose of business' within the meaning of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance on presumption and surmises?" Assessment year 1990-91 (Appeal No. 34 of 2003): "Whether the amount of Rs. 2,40,74,820 utilized by the assesseecompany for acquisition of shares of M/s. Sharpedge Ltd. through its subsidiaries in order to acquire controlling interest and improve the business conditions is not 'for the purpose of business' within the meaning of section 36(1)(iii) of the 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surmises?" The assessee has given advance free of interest to its four subsidiaries. The details thereof read as under: Sabre Pens Limited Rs. 59,26,087 Sheen Dental Products Rs. 63,62,702 Klosershav Products Ltd. Rs. 55,67,615 Venity Cosmetic Ltd. Rs. 62,18,416 Rs. 2,40,74,820 The assessee was not having its own sufficient funds even to run his business and was running in huge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he has with him free of interest. On the contrary, the finding is that the assessee-company is running in huge losses and when the assessee had paid huge interest on the loan from financial institutions, there is no justification to advance interest-free loan of Rs. 2,40,74,820 to its subsidiaries for purchase of shares. On the aforesaid findings, whether interest should be allowed or not, wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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