TMI Blog2012 (8) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... ther on the facts and in the circumstances of the case, the Tribunal was right in law in directing to allow deduction of ₹ 7,97,83,057/- disallowed u/s. 36(1)(iii) despite the fact that the decision of Hon'ble Supreme Court in the case of S.A. Builders v. CIT [2007] 288 ITR 1 was clearly applicable to the facts of the case ? 2. Upon hearing learned advocate Mr. K.M. Parikh appearing for the Revenue and on close perusal of record, it appears that the Assessee-Company advanced its funds to the Associate Companies available at its disposal. Assessing Officer while working out the fund and utilization thereof, concluded that those were the interest bearing funds utilized for making interest free advances, relying on the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer by holding thus : We have considered the rival submissions. On going through the figures in the balance sheet of the assessee company as on 1.4.94 and 31.3.95 we find that the share capital and the reserves and surplus together with the accumulated depreciation would far exceed the loans and advances made to the above said three concerns. The percentage of loans and advances in relation to the own funds of the assessee company would be 0.012% as on 1.4.94 and 0.0135% as on 31.3.95 as per-details furnished on page 62 of the paper book. In other words there were sufficient funds available with the company on which no interest was paid and out of which the loans and advances to the above said concerns could be made. There is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Munjal Sales Corn. (supra) on having found that the opening balance of the profits of the assessee-firm was huge and the profits were sufficient to cover the loan given to a sister concern, which was meager as compared to the profits of the firm and therefore, it held that the loans were from the assessee's own fund. 5. Basing its decision on aforementioned authority of Munjal Sales Corporation (supra) and also since the Tribunal in the year 1995-96 had upheld the say of the assessee and the facts in the instant case (for the Assessment Year 2002-03) being identical, it upheld the order of CIT (Appeals ). 6. Resultantly on having found that Tribunal has rightly satisfied itself that there was sufficient funds avail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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