2016 (9) TMI 116

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... carried on business in the firm name and style of M/s Modern Publishers as the sole proprietor thereof. The three respondents are his heirs. 3. Questions (i) to (v) raised in the appeal do not survive in view of an order of the earlier Division Bench of this Court dated 28.10.2013. These questions relate to the issue regarding the deletion of an addition on account of deemed dividend with respect to an amount received by the deceased assessee for the sale of an immovable property. The Division Bench held that there was no reason to differ with the opinion of the Tribunal and that the Tribunal had rightly deleted the addition. Notice of motion was issued only in respect of questions (vi), (vii) and (viii) which read as under:- "....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mmercial expediency, was on the assessee and merely giving of the money to the sister concern does not prove the commercial expediency, unless it is shown that the amounts have been used commercially even by the sister concerns? (viii) Whether the order of Hon'ble ITAT is perverse as the same has been passed completely ignoring the specific findings of the AO and the Ld. CIT(A) on the issue of interest free loans to the sister concerns?" 4. In our view, a substantial question of law does not arise. The exercise entailed only an appreciation of facts. We do not find the conclusion of the Tribunal on facts to be perverse or absurd. 5. The respondent-assessee filed a return of income on 31.10.2006. On 15.12.2008, the Assessing O....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n relation to interest paid by the assessee. Secured loans of Rs.  15.32 crores were outstanding as on 31.03.2006. This appeal pertains to the assessment year 2006-2007. The assessee had admittedly advanced loans of Rs.  11.19 crores to his sister concerns. He, however, charged interest in respect of the loans to two sister concerns aggregating to Rs.  3.82 crores. No interest was charged in respect of the loans to six other sister concerns aggregating to Rs.  7.37 crores. As recorded by the Assessing Officer, the assessee paid various amounts of interest of which interest of an amount of Rs.  46.63 lacs is relevant in this appeal. The said amount of Rs.  46.63 lacs was paid as interest during the accounting ye....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....idering these facts came to the conclusion that the assessee had interest free capital from which he was entitled to make an interest free advance to his sister concerns. It was also rightly observed that there was nothing on record to show that the assessee had used the interest bearing funds for other than business purposes. Mr. Katoch, learned counsel appearing on behalf of the appellant was also unable to establish the same. Further, even before us, it has not been established that the assessee did not have sufficient interest free capital to the extent of Rs.  7.37 crores which is the amount advanced by him free of interest. Nor was our attention invited to any material to indicate that it is the interest bearing loan which was in....