TMI Blog2019 (3) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. The CIT(A) was also satisfied with the nature of the transaction and it would qualify as "business expediency". Merely because a reference is pending that does not mean that the decision rendered by the Hon'ble Supreme Court is no longer good law. As pointed out by us earlier, the CIT(A) and the Tribunal has discussed the factual position and held that the transaction would qualify "business expediency". - Decided against revenue - Tax Case Appeal No.187 of 2011 - - - Dated:- 28-1-2019 - Mr. Justice T.S. Sivagnanam And Mr. Justice N. Sathish Kumar For the Appellant : Mrs.R.Hemalatha Senior Standing Counsel JUDGMENT T.S.SIVAGNANAM, J. This appeal is directed against the order passed by the Income Tax Appellate Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- The investment in wholly owned subsidiary company BNT Connections LLC USA was partly made in the assessment year 2003-04 to the extent of ₹ 4,90,02,500/- and ₹ 4,63,67,500/- was made in the assessment year 2005-06. The investment made in the assessment year 2003-04 was out of the sale proceeds received on disinvestment of shares of another BNT group subsidiary company Berkley Sportwear LLC, USA and the assessee disinvested its stake in this company based in USA which has different brand name Berkley and floated its own new subsidiary company under its own brand name BNT known as BNT Connections LLC USA. It was stated that the investment in assessment year 2004-05 was out of the pre-closure of fixed deposits in BNT Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tentions advanced by the assessee before the Assessing Officer were repeated before the CIT(A). 8. The Tribunal after considering the oral submissions as well as written arguments and the documents which were placed by the assessee before the CIT(A) on facts held that the pattern of loan extended to sister concerns would qualify business expediency. It referred to the decision of the Hon'ble Supreme Court in S.A.Builders Ltv. v. CIT reported in 288 ITR 1 (SC). 9. Mrs.R.Hemalatha, learned Standing Counsel appearing for the appellant would contend that the Hon'ble Supreme Court in the judgment in S.A.Builders (supra) had held that it is not in every case interest on borrowed loan has to be allowed if the assessee advances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would qualify business expediency . 11. Mrs.R.Hemaltha, learned Standing counsel referred to the decision in the case of Punjab Stainless Steel Inds. v. Commissioner of Income-tax VII [2010] 324 ITR 396 (Delhi). We are of the considered view that the decision will not in any manner advance the case of the assessee since the factual position has to be examined to hold whether the loans extended by the assessee would advance its business interest. On facts, the first appellate authority and the Tribunal held that the transaction would qualify as Business expediency . We cannot sit on appeal over the said factual findings. It is for the above reasons we hold that there is no substantial question of law involved in this appeal. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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