2008 (7) TMI 983

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....espondent : Akshay Bhan ORDER Satish Kumar Mittal, J. - This order shall dispose of three Income-tax Appeals bearing ITA Nos. 571, 572 and 573 of 2007. The revenue has filed these appeals under section 260A of the Income-tax Act (hereinafter referred to as 'the Act') against the order dated 16-4-2007 passed by the Income-tax Appellate Tribunal, Chandigarh Bench 'A' (hereinafter referred t....

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....l. In this case, the Tribunal has recorded a finding of fact to the effect that the interest-free loan given to M/s. Gujarat Cycles Limited was for a business consideration. In view of the said finding of fact, the Tribunal while distinguishing the judgment of this Court in CIT v. Abhishek Industries Ltd. [2006] 286 ITR 11, has dismissed the appeal of the revenue while coming to the conclusion tha....

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....shek Industries Ltd.'s case (supra), the order of the Tribunal in deleting the disallowance of interest on the ground that there is no nexus between the borrowings and interest-free advances made to sister concern, cannot be quashed. 5. After hearing the counsel for the parties, we do not find any substance in the arguments raised by the counsel for the revenue. As per section 36(1)(iii) of the....