2015 (1) TMI 877

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....appeal, the appellant-revenue has challenged the order dated 22.02.2005 passed by the Income Tax Appellate Tribunal [for short "the Tribunal"] in ITA No.1839/Ahd/2003, whereby the appeal filed by the assessee was partly allowed by the Tribunal. 2. The facts, in brief, are that the assessee filed its return for the Assessment Year 1998-99. The Assessing Officer, after scrutiny, made disallowance....

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....2006, the Court had formulated the following substantial question of law:-          "Whether on facts and in the circumstances of the case and in law, Appellate Tribunal was right in deleting the disallowance of interest of Rs. 17,38,362/- being on interest free advances/loans ?" 4. Learned advocate for the appellantrevenue has stated that the question....

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....hed that there was nexus between the expenditure and the purpose of the business (which need not necessarily be the business of the assessee itself), the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. No bu....

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....e sister concern utilize the amount advanced to it by the assessee for their personal benefit, obviously it cannot be said that such money was advanced as a measure of commercial expediency. However, money can be said to be advanced to a sister concern for commercial expediency in many other circumstances (which need not be enumerated here). However, where it is obvious that a holding company has ....