2012 (4) TMI 249

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....nding counsel SANJIV KHANNA, J: (ORAL)   These three appeals by the assessee, which pertains to assessment years 2000-01, 2002-03 and 2004-05 impugn order dated 16.9.2011 passed by the Income Tax Appellate Tribunal (Tribunal, for short). The three authorities including the Tribunal have given concurrent finding that Section 2(22)(e) of the Act were attracted on the loans of  Rs.7,9....

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....) of the Act shows that any advance or loan made by a company to a shareholder or a concern in which the shareholder has a substantial interest would not be regarded as divided (sic.) if the advance or loan was made by the lending company, if two conditions are satisfied, namely, (i) that the loan or advance was made by lending company in the ordinary course of business; (ii) lending of money is a....

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....ws that most of advances were not earning interest to the assessee, only few advances were earning interest. Although substantial portion of assets of company has been deployed towards the loans and advances however, the majority of the advances made by M/s. A.M. Overseas Pvt. Ltd. were interest free. Granting loan and advance for no interest cannot be regarded as a part of money lending business.....