https://www.taxtmi.com/caselaws?id=282694 The HC dismissed the revenue's appeal, affirming the Tribunal's decision in favor of the assessee. It upheld the CIT(A)'s allowance of the assessee's claim for a loss of Rs. 74,89,041/-, finding no evidence of collusion among companies with common directors. The HC agreed that Object Clause 13 did not necessitate securing guarantees with a mortgage or pledge. It rejected the application of McDowell's principles, noting the lack of evidence for tax avoidance. The guarantee was deemed a legitimate business decision, and the appeal was dismissed without costs. en-us Fri, 12 Sep 2008 00:00:00 +0530 Sat, 09 Dec 2023 20:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=282694 The HC dismissed the revenue's appeal, affirming the Tribunal's decision in favor of the assessee. It upheld the CIT(A)'s allowance of the assessee's claim for a loss of Rs. 74,89,041/-, finding no evidence of collusion among companies with common directors. The HC agreed that Object Clause 13 did not necessitate securing guarantees with a mortgage or pledge. It rejected the application of McDowell's principles, noting the lack of evidence for tax avoidance. The guarantee was deemed a legitimate business decision, and the appeal was dismissed without costs. Case-Laws Income Tax Fri, 12 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=282694