9911796707
TMI Blog2022 (12) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... r: 1. Whether on the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition made by Assessing Officer on account of the issue of disallowance of interest u/s. 36(1)(iii) of I.T. Act, 1961. 2. Whether on the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition made by Assessing Officer on account of denial of deduction u/s. 80IC of the Income Tax Act, 1961 in respect of Kala Amb Unit, even when the assessee does not fulfill the necessary conditions for claiming deduction u/s. 80IC of the I.T. Act, 1961. 3. It is prayed that the order of the Ld. CIT(A) be set-aside on the above issues and that of the Assessing Officer be restored. 4. The appellant craves leave to add or amend any grounds of appeal before the appeal is heard and kindly disposed off." 2.2. At the cost of re-iteration, the parties have unanimously submitted that the arguments advanced in ITA 281/CHD/2018 would address the grounds in the other appeal also. Accordingly, in the said background the arguments advanced by the parties on the issues arising are addressed. 3. The ld. Sr. DR inviting attention to the assessment order specific page 29 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... new machinery and that there was no proof that the new unit is an independent separate unit from the old one, the assessee's explanation was called forth. The AO, it was submitted vide ordersheet entry dated 22.03.2013 required the assessee to explain why the deduction claimed u/s. 80IC should not be disallowed. The assessee's reply made available on 28.03.2013 was considered by the AO. This reads as under: "As far as question of disallowance of deduction of Kala Amb unit u/s. 80IC of the Income Tax Act is concerned it has repeatedly been submitted by us that they is no reason for disallowance of this deduction. The unit was set up as a new unit with machinery worth Rs. 94 lac app. All the proofs of setting up of this unit like clearance from pollution control board, VAT/CST number, certificate from Industries Department, application for power connection etc. have already been submitted to your goodself. " 4.2. The explanation offered by the assessee, it was submitted, was faulted with by the AO. The AO held that the assessee had not provided evidence which had been sought earlier. The specific shortcomings set out in the assessment order highlighted by the Sr. DR and he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered as piece of evidence. The assessee has not been given time and opportunity to controvert the same. As far as the statement of Mr. Gyan Chand Sharma is concerned he himself has stated that he has joined Kala Amb unit on 16th January, 2013. He has also stated that the entire machinery belongs to Amber Enterprises India Pvt. Ltd. and it is now manufacturing Phillips lighting from September, 2012 and prior to it was manufacturing the Air Conditioners. His statement supports our submissions. No adverse evidence has been given by Mr. Gyan Chand Sharma. 2. Copies of bills of machinery required by the Income Tax Officer who visited Kala Amb on 29/03/2013 are enclosed herewith for your kind perusal. " 4.5. This reply of the assessee, it was reiterated, was considered by the AO and noticing that more than sufficient time had been given to the assessee to reply to the ordersheet entry dated 22.03.2010, the Inspection/Enquiry Report of the ITO and ITI and the reply filed, it was submitted, was considered. It has been extracted in pages 33 to 36 of the order. As a result of this, the AO, it was submitted, has passed a detailed order elaborating the reasons why 80IC claim of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and there is no change or shifting of these machines from another site/location to the present site/location. 6. Even at the time of commencement of production of Kala Amb Unit on 08.01.2010, complete machinery was not installed and there was some machinery installed after the date of commencement of production. Hence production on 08.01.2010 cannot commence without the use of old machinery in the production process of the assessee company. 7. The electric connection of Amrit Aircon System Pvt. Ltd. has been used by the assessee company in the month of January 2010, February 2010 and March 2010 and high consumption of electricity in these months as compared to earlier months clearly proves that the old machines of Amrit Aircon System Pvt. Ltd. have been put to use by the assessee company in its year of commencement of production and also in the later years. 8. As per plan of installation of machinery and manufacturing process, it is not possible to run the unit without the use of old machines of M/s. Amrit Aircon System Pvt. Ltd. 9. The wages and salary of the assessee company for the month of January 2010, February 2010 and March 2010 have been borne by its sister concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concern i.e. M/s. Amber Enterprises (India) Pvt. Ltd. Though new unit was shown to have started its operation on 08.01.2010, but the production was not entirely out of new machines but also through old machines of M/s. Amrit Aircon System Pvt. Ltd. (more than 20% value) and hence was not eligible for 80IC deduction." 4.7. Relying upon the above reasons extracted in the assessment order it was his submission that the relief granted by the CIT(A) on facts is challenged by the Revenue. 4.8. Referring to the impugned order it was submitted that the CIT(A) has tabulated the reasons of the AO alongwith the assessee's submissions from pages 7 to 12 and thereafter allowed a relief to the assessee. The order was assailed on the ground that the AO on facts has relied upon the Inspection Report carried out u/s. 131. Accordingly, relief granted by the CIT(A) it was submitted, is unjustified on facts. 5. The ld. AR appearing on behalf of the assessee relied upon the synopsis filed. Addressing these issues, attention was also invited to the sequence of dates stated to be emerging from the single paged document filed on 02.07.2021. The submissions summed up in the synopsis read alongwith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nection of its earlier sister concern whose premises were taken on rent. The earlier concern, it was submitted, had stopped its manufacturing activity and the premises were lying idle. It was his submission that since manufacturing of ACs is a highly competitive business activity where the market is very sensitive to every new technology, hence manufacturing of ACs started may suddenly require to be stopped. It was his submission that every change in technology/knowledge of how AC was to be rated or considered most suitable dictated that new requirements were required to be inbuilt in the product being manufactured. These marketing gimmicks and strategies often resulted in manufacturing of products which were thus found to be out of sync with the marketing requirements. Hence, manufacturing of certain type of ACs at times had to be stopped abruptly. The earlier activity consequently had to be stopped. The expenses incurred for setting up the new plant, it was submitted, is accepted by the AO. It The heavy use of electricity usage by the assessee has also been noticed by the AO resulted in sale worth of Rs. 22 Crore which also has been noticed by the AO. The business was carried on, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e enquiry report dated 30.03.2013 was submitted." 5.5. Inviting attention to the assessment order page 32 it was submitted that the reply of the assessee was submitted on 31.03.2013 which has also been extracted in the order. Inviting attention to page 1 of the assessment order it was submitted that the assessment order was passed on 31.03.2013. In the said background, it was his submission that the assessee admittedly before the AO did not get a reasonable opportunity to argue its case although a reply was made available. It was submitted that a meaningful and effective opportunity for a fair hearing admittedly was before the First Appellate Authority. These facts itself will show that the AO without giving an effective opportunity to the assessee to address the material available on record passed the unfair and incorrect order. 5.6. In the said background, attention was invited to pages 7 to 12 of the impugned order wherein all allegations made by the AO had been tabulated by the assessee for the benefit of the First Appellate Authority. These, it was submitted, have been extracted in para 8 by the ld. CIT(A). These facts it was submitted, have not been not rebutted by the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remises taken on rent from sister concern namely M/s. Amrit Aircon System Private Limited and such fact nowhere violates the conditions for claiming deduction u/s.80-IC of the Act. The rent deed is forming part of paper book at Pg 42 to Pg 48. The said rent deed was entered on 22.12.2008 and it was valid for the period of 5 years. * Now, we would like to explain that assessee is a newly established unit which is evident from following points: * Unit at Kala Amb is an Independent Unit started with an investment of Rs. 94 Lacs in Machinery which includes a complete oven unit, assembling unit, conveyor line, gas charging line etc. The List of machineries purchased by assessee (Pg 61 of PB) along with their electricity load (Pg 62-63 of PB) and line diagram (Pg 64 of PB) depicting manufacturing process of air conditioners is forming part of paper book. * Clearance certificate dated 06.05.2009 from Himachal Pradesh Pollution Control Board (HPPCB) was obtained after due inspection of site and machinery. The certificate is forming part of paper book at Pg 55 to Pg 56. * Separate registration was obtained from the Director of Industries (DIC) which is a Nodal Agency and legally rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial purchased from their predetermined vendors and production made by the assessee. The clients frequently checks the specification of machineries which are engaged in the manufacturing process and all this is done to make sure the quality of finished goods to be sold by them. The assessee company has invested appx. Rs. 94 Lacs in the Plant & Machinery up to 31.03.2010 which is sufficient enough to run a plant at the initial stage In the F.Y 2008-09 as well as in the initial months of year under consideration, M/s. Amrit Aircon System Private Limited was working in full swing and there was no intention of the said concern to reduce its production and transfer its machinery to assessee company. From the details of machinery purchased by assessee in the year under consideration, it is clear that all the machineries necessary for the production of AC's has been newly purchased by the assessee in its own unit. Initially, the Kala Amb unit was established for manufacturing and assembling of AC's, however, at the time of physical inspection of machinery i.e. 29.03.2013, the assessee was engaged in the manufacturing/assembling of Phillips goods for which totally differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same is forming part of paper book at Pg 65 to Pg 97. The said submissions are also reproduced by the CIT(A) in his order dated 08.12.2017 at Pg 7-13. As far as the question of salaries/wages and electricity consumption is concerned, the assessee has itself admitted that due to inadvertent error, a portion of these expenditures is claimed by M/s. Amrit Aircon System Private Limited. This fact was brought to the notice of the AO during the course of assessment proceedings and it was also explained to the AO that the portion of expenditure excessively claimed by M/s. Amrit Aircon System Private Limited has already been disallowed by the AO of that concern in its assessment order passed u/s. 143(3) of the Act. The copy of the order passed by AO u/s. 143(3) of the Act in the case of M/s. Amrit Aircon System Private Limited is forming part of paper book at Pg 49 to Pg 51. Regarding a quantum jump in the electricity expenditure in the months of Jan-March, as pointed by the AO, as compared to the very low expenditure in the earlier months, it is submitted that the AO has failed to appreciate the fact that M/s. Amrit Aircon (P) Ltd. had a turnover of approx Rs. 8 Cr in the months o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim of deduction under section 80-IC of the Act is not based on correct reasoning and hence not sustainable. The grounds of appeal pertaining to the aforesaid impugned issue are, thus, considered allowed." 7.1. It is also relevant to extract the specific objections of the AO tabulated by the assessee and addressed by the assessee before the First Appellate Authority in para 8: 8. Contesting the aforesaid observations of the AO, the appellant insisted that the eligibility criterion for the claim of deduction under section 80IC was fulfilled in all parameters and that the disallowance of the said claim was not only unwarranted but also arbitrary. The appellant's contention with regard to each of the objections of the AO was furnished in an annotated form during the appellate proceedings. It would be apposite to extract the same here in below: Sr. No. AO's Comments Assessee's submissions 1. The assessee and its sister concern namely M/s AmritAircon System Private Limited are engaged in the same line of business. There is no bar in the Act which prohibits the assessee to carry on the same business as carried by its sister concern at the same place where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed investments made and technology used are key decisive factors. Therefore, the ITO and 777, on whose report the AO has placed Reliance and who are not technical persons, cannot draw a conclusion in the inspection of only few hours that assessee is not an integrated and independent unit. As per inspectors, there was no clear demarcation of machinery of assessee and M/s Amrit Aricon System Private Limited at factory premises, it is submitted that production cycle is a technical process and only technical persons like production manager can explain it better and as evident from the Page 5 of statement of Sh. Sanjay Sharma (Production Manager) as recorded during the course of physical inspection, that machinery installed in the working area of assessee is purely related to assessee itself and bills of machinery were also produced by him. Moreover, the assessee has prepared separate lease deed from the premises taken on rent from M/s Amrit Aricon System Private Limited wherein the area taken on rent is clearly identifiable. Lastly and most importantly, at the time of Inspection i.e. FY 2012-13, there was no production of ACs by either the Kala Amb unit of the assessee or the other c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves that machinery of M/s AmritAircon System Private Limited has been used by assessee in its year of commencement of production as well as in the subsequent years. It is an admitted fact that and till the date of sanction of its own electricity load, the assessee has used the electricity connection of M/s AmritAircon System Private Limited and there is no violation of conditions of section 80-IC of the Act. Further, the high consumption of electricity by assessee as compared to M/s Amrit Aircon System Private Limited is obvious due to the fact that in the entire FY 2009-10 and more so majorly upto December 2009, M/s Amrit Aircon System Private Limited had made sales of Rs. 55.50Crores as against the sales of Rs.22.63 Crores achieved by the Kala Amb unit in a period of 8th January 2010 to March 2010 and which obviously would have a huge upward effect on the consumption of electricity. Moreover, to achieve its sales targets, the Kala Amb unit is working in shifts which 'is stated by the Production Manager Sh. Sanjay Sharma in its statement recorded before the inspectors. In its statement, Production Manager has stated that normal working hours of the factory are 9AM to 5.30PM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r concern which is more than 20% of the value of new machinery and therefore, the assessee has violated the conditions of section 80-IC of the Act. It is a fact on record that all major machineries worth Rs.81.22 Lakhs were installed and running in the assessees unit by January 2010 and it is not mandatory that all the machinery including gensetsetc must be installed for start of commercial production. 13. The unit was never capable of producing goods of its own and therefore, has never came into existence. This again is a presumption of the AO whereas on the other hand, M/s Amrit Aircon which is the other company at the same premises was earlier running a similar activity with the same kind of investment set up in machineries and further during the course of inspection carried out by the ITO of the Department, they have verified the fact that at the time of inspection, it was the assessees unit that was functioning and manufacturing of Luminaries was being carried out therefore how the AO alleges that the assessees unit never came into existence. 14. M/s Amrit Aircon System Private Limited was in &h year of its production i.e. rate of deduction was reduced to 30% and therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the necessary legal clearances for setting up of the unit was stated to have been complied with. The eligibility conditions as specified in section 80IC is seen to have been met in entirety. Merely because the new unit was set up in leased premises, it's existence and operationality cannot be doubted. It is not the case of the Assessing Officer that there was no investment in plant and machinery for setting up the eligible unit. Neither the invoices produced in support of the purchase of plant and machinery required for setting up of the new unit have been found to be doubtful by the AO. The detailed manufacturing flowchart explained by the appellant substantiates the fact that the appellant had set up a comprehensive unit as required by it for its manufacturing activity. Obtainment of clearance from the Himachal Pradesh Pollution Board, registration from the Director of Industries as also with the Excise Department are vital evidences which go on to prove that a new and independent unit was established by the appellant company. During the appellant proceedings, copy of the return filed in Form A for the quarter ending March 2010 was adduced, wherein the total units of air-c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the old machines of the sister concern were used in the manufacturing of air-conditioners at the relevant point of time. Reliance on such observations of the inspecting team falls in the realm of giving credence to tendentious or fanciful thinking. The report beset with such fatalities cannot be relied upon to draw any adverse inference with regard to the existence of the facility for manufacture of air conditioners at the relevant point of time. 12. Besides the above factual and direct evidences, there are various circumstantial and contemporaneous evidences to support the case of the appellant that it had genuinely established a new unit and was indeed manufacturing air conditioners in the year under consideration. The sister concern of the appellant company had a gross block of machinery of Rs. 82.27 lakhs and if this was considered an integrated and complete unit capable of claiming deduction under section 80IC, it defies logic as to how the appellant company could not have established a new and independent unit with latest technology by investing an amount of approximately Rs. 94 lakhs in plant and machinery. The argument that had it been the intent of the appellant company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal pertaining to the aforesaid impugned issue are, thus, considered allowed." (emphasis supplied) 8. On a careful consideration of the entirety of facts before us, as referred to hereinabove from the record we find no infirmity in the order. In the face of the unrebutted factual findings on record, the suspicions aroused by the Report have no credibility. The reliance placed by the Revenue accordingly on the Inspector's Report wherein the inspection was conducted on 29.03.2013 cannot be relied upon to conclude what was the state of affairs in or upto November, 2011. The said observation is given notwithstanding the fact that the Inspector's Report even lacks technical knowledge or awareness of the product being manufactured. It is evident that they also were not fully versed with the facts which they were required to look into. The distinction in the end product being manufactured itself namely Philips Luminaries at the time of inspection as opposed to ACs being manufactured in 2011 itself was not noticed by them. We have seen that the employees whose statements have been relied upon were admittedly not the authorized personnel, hence not competent to comment. The re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded that no proof or evidence had been submitted to prove that the expenses relating to interest other than term loan, Directors remunerations and bill discounting charges were exclusively related to that unit only. Accordingly, it was concluded that the assessee company was claiming more expenses in the non-exempted units and less from the exempted units. It was submitted that by this type of allocation, the AO concluded that the assessee company is transferring profits from non-exempted units to exempted units. 9.2. Accordingly, considering the legal position on this issue, the allocation of interest expenses were allocated proportionately i.e. in the ratio of turnover of these units to total turnover. 9.3. Inviting attention to the impugned order, it was submitted that the addition made by way of disallowance has been deleted by the CIT(A) which order is under challenge in the present proceedings. The finding arrived at in para 15 to 16 and 18 to 19 is challenged. 10. The ld. AR inviting attention to the synopsis filed submitted that the assessee had made additions of Rs. 2,38,00,011/- under the head 'Building & Construction' and these expenses were from assessee&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abulated below. These additions were made out of sufficient own funds of Rs. 88,13,69,061/- in the shape of Share Capital (Rs. 1,79,04,800/-) and Reserves and Surplus (Rs. 86,34,64,261/-) which is much more the total balance of Building under Construction of Rs. 2,38,00,011/-. The same is evident from Consolidated Balance Sheet forming part of paper book at Pg 1 of the Paper Book. The appellant company practices proper method of specific identification of borrowed funds used for the capital purposes and accordingly, has duly capitalized interest in its books of accounts, wherever required. The unit wise secured loan structure (Term loan as well as CC Limit) of the assessee company as tabulated hereunder specifies that all the borrowed funds have already been invested in the existing business of the assessee and therefore, no part of borrowed funds have been used for the building under construction. b) Issue of disallowance made by AO u/s. 36(1)(iii) of the Act on account of Machinery under Installation During the year under consideration, the AO has made disallowance of interest on CWIP of Machineries in respect of three units namely Kala Amb Unit, Kasna Unit and Unit-V-S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or taxable, from the said investments. * The assessee has not made any investments/nor given any share application money during the year under consideration and therefore, there is no nexus between the investments made in earlier years and interest expenditure claimed in year under consideration. * In the F.Y 2006-07, the assessee was having sufficient interest free sources available in the shape of Reserves and surplus to the tune of Rs. 12,34,88,806/- which is enough to make advances to the tune of Rs. 1,47,50,000/- and in this regard it is a settled law that where the interest free resources available with the assessee are more than the investments made, it will be presumed that investments have been made out of interest free own funds. * Furthermore, the balance of secured loan to the tune of Rs. 4.31 crores as on 31.03.2006 has reduced to Rs. 3.32 crores as on 31.03.2007 which depicts that instead of raising fresh loan, the assessee has repaid the loans taken in earlier years. * No fresh borrowed funds were availed during F.Y 2006-07 to make investments in subsidiary company which is clear from the Financial Statements of 2006-07. * All these facts were admitted as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the amount spent on BUC/additions made to the machinery 1. There are no borrowed funds in units situated at Kala Amb, Kasna and Unit-V, therefore, it is incorrect on the part of the AO to say that investment in Building under construction has been made out of borrowed funds. 2. There are either old term loans brought forward from earlier years which have no correlation with the additions made in Plant 6t Machinery/Building during the year under consideration. Such old term loans already stand invested in the business assets which are in use by the assessee company and hence their corresponding interest cost is allowable as revenue expenditure. 3. There are new term loans availed in certain units which have been specifically utilized for the new assets and the corresponding interest cost stands capitalized with the respective assets up to the date of put to use of that asset. 4. The CC Limit/Working Capital Loans stands invested in the business inventory and thus, its corresponding interest cost is revenue expenditure for the assessee. 5. In spite of fresh loans taken during the year under consideration, the assessee has repaid old loans which evidences the fact that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ective units was clearly demonstrated. It was also brought out that the old term loans brought forward from the earlier years already stand invested in the business assets of the company which are already put to use. Reliance was placed on various judicial decisions including those of the jurisdictional Tribunal and the Hon'ble High Court of Punjab and Haryana, having the underlying principle that where interest-free funds are sufficient to make the investments, there can be no presumption that interest-bearing funds have been used by the appellant. Reference was also made of the appellant's case in the immediately preceding Assessment Year 2009-10, where under similar circumstances, disallowance of interest on account of non-capitalization towards building under construction and plant and machinery under installation was not approved by the first appellate authority. 16 The facts of the case and the submissions of the appellant have been considered. It has been demonstrated by the appellant that there was availability of adequate and sufficient interest-free funds with the appellant company to cover up the investments in building under construction and plant and machiner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment, wherein the total borrowed funds were Rs. 3.32 crores which included secured loans of Rs. 3.21 crores and unsecured loans of Rs. 10.67 lakhs. It was also submitted that as on 31/03/2007 there was a debit balance in the cash credit limit account of the appellant of Rs. 60.56 lakhs, meaning thereby that there was no working capital loan. The secured loans have been stated to be utilised for the specific purposes of acquisition of assets for which the same were availed. The appellant further submitted that the balance of secured loans as all 31/03/2007 is Rs. 3.32 crores as against Rs. 4.31 crores as on 31/03/2006, leading to the conclusion that during the above year the appellant had, in fact, repaid the borrowed funds. It was again argued on behalf of the appellant that the appellant had sufficient own funds for making the said investments, which were to the extent of Rs. 12.34 crores in the year of making the investment. It was, further, canvassed that it is the prerogative of the appellant to make investment in its sister concern, which decision cannot be doubted on the touchstone of commercial expediency and for buttressing this proposition, reliance was placed on the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) was correct in deleting the addition made by Assessing Officer on account of the issue of disallowance of interest u/s. 36(1)(iii) of the Income Tax Act, 1961. 2. In the facts and circumstances of the case, whether the Ld. CIT(A) was correct in deleting the addition made by Assessing Officer on account of denial of deduction u/s. 80IC of the Income Tax Act, 1961 in respect of Kala Amb Unit, even when the assessee does not fulfill the necessary conditions for claiming deduction u/s. 80IC of the I.T. Income Tax Act, 1961. 3. It is prayed that the order of Ld. CIT(A) be set-aside and that of the Assessing Officer be restored. 4. The appellant craves leave to add or amend any grounds of appeal before the appeal is heard and finally disposed off. 15. These have been decided by the CIT(A) in the following manner: 5. The disallowance of the claim of deduction u/s. 80-IC amounting to Rs. 2,37,29,548/- in respect of the Kala Amb Unit has been agitated by the appellant vide Ground Nos. 3.1 to 3.4 of the appeal. On consideration of the facts and circumstances of the case as stated in the assessment order, it is clear that the only reason for making the said disallowance was the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that as on 31.03.2007, there was a debit balance in the cash credit limit account of the appellant of Rs. 60.56 lakhs, meaning thereby that there was no working capital loan. The secured loans have been stated to be utilized for the specific purposes of acquisition of assets for which the same were availed. The Appellant further submitted that the balance of secured loans as at 31.03.2007 is Rs. 3.32 Crores as against Rs. 4.31 crores as on 31.03.2006, leading to the conclusion that during the above year the appellant had, in fact, repaid the borrowed funds. It was again argued on behalf of the appellant that the appellant had sufficient own funds for making the said investments, which were to the extent of Rs. 12.34 Crores in the year of making the investment. It was, further, canvassed that it is the prerogative of the appellant to make investment in its sister concern, which decision cannot be doubted on the touchstone of commercial expediency and for buttressing this proposition, reliance was placed on the decision of the Hon'ble Punjab & Haryana High Court in the case of M/s. Bright Enterprises Pvt. Ltd. MANU/PH/2105/2015 : [2016] 381 ITR 107. Similarly, regarding the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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