2012 (1) TMI 278

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.... A.Y. 2006-07 (By Revenue) 2. The only effective ground raised by the Revenue reads as under:- "On the facts and circumstances of the case as well as in law, the ld. CIT(A) erred in applying ratio of the decision of the Hon'ble SC in the case of M/s S.A. Builders as in this case loan were not advanced for the purpose of the business of the assessee and there is no commercial expediency for assessee to advance such loan." 2.1 After hearing both the sides we find the A.O. disallowed an amount of Rs. 8,77,132/- as proportionate interest being interest free loan to its subsidiary concern M/s Dravya Finance Limited. In appeal, the ld. CIT(A) following the order of his predecessor for the A.Y. 2004-05 deleted the disallowance. Aggr....

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....rder of his predecessor for A.Y. 2004-05 and since the Tribunal has restored the issue to the file of the A.O. for fresh adjudication, therefore, we deem it proper to restore this issue to the file of the A.O. with a direction to adjudicate the same in the light of the direction of the Tribunal in assessee's own case for A.Y. 2004-05 and in accordance with law after giving due opportunity of being heard to the assessee. The ground raised by the Revenue is accordingly allowed for statistical purposes. C.O. No. 32/Mum/2011 (By assessee) 4. The first issue in the C.O. filed by the assessee relates to the order of the ld. CIT(A) in confirming the disallowance of Rs. 1 lac towards the expenditure on corporate club membership fees made by t....