2015 (1) TMI 522

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.... the case, the Tribunal was right in relying upon Section 36(1) (iii) of the Act in isolation without considering the fact that the assessee has not only borrowed money but also has advanced money from which the assessee was liable to receive interest income. (ii) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the advances made to Hindustan Max G.B. were actually for commercial expediency particularly since the advance pertained to the earlier years and whether the commercial expediency can be said to have existed over a prolonged period of number of years when no such transaction has taken place in the succeeding years. (iii) Whether on the facts and in the circumstances of the case, the....

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....d the matter to the assessing officer to examine the veracity of the alleged commissions paid by the assessee, a bare perusal of the material on record reveals the absence of any contract or any conformation by any person, who received commission. The matter, therefore, should have been remitted in its entirety by directing the assessing officer to determine the correctness of the claim and not merely its quantum. As regards the 4th and 5th questions, counsel for the appellant contends that the assessee invested Rs. 5.00 crores in M/s HMGV, was allotted shares and therefore, received interest and dividend. The interest and dividend so received falls within the ambit of Section 14-A of the Act and thus, was rightly computed as income of the....

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.... brief facts relating to the issue are that the Assessing Officer from the balance-sheet noted the investment of Rs. 5 crores in shares of M/s Hindustan Max-GB Ltd. The said investment was made in the earlier years on which the assessee was earning interest. While deciding ground No.3 of the present appeal, we have deliberated upon the issue of disallowance of interest relatable to such advances made by the assessee on which as per the Assessing Officer, no interest was charged as against the interest expenditure incurred by the assessee. It is an admitted position that the assessee was receiving interest on the said advances. The said investment was made for business purposes i.e. for the purchase of raw material from the said concern. How....