2012 (8) TMI 1054

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....loans. On the perusal of the balance sheet of the assessee-company it was observed by the AO that it had advanced loan to its subsidiary company M/s.ETP International Limited, Singapore, with closing balance at ₹ 1.46 crore. A copy of account of ETP International Limited, Singapore as appearing in the books of account of the assessee has been reproduced by the Assessing Officer on page 2 of the assessment order from which it is apparent that there was opening balance of ₹ 88.29 lakh and further amount advanced in the current year stands at ₹ 58.21 lakh. The A.O. observed that on one hand the assessee had borrowed interest bearing loans on which huge amount of interest was paid and on the other hand it had extended loan to ....

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....available on record. It can be seen from the balance sheet of the subsidiary company that the amount owing to the assessee-company has been shown as Singapore Dollars 512648. From the assets side of the balance sheet, it can be observed that no amount has been taken away from the company by the shareholders or directors for any personal purpose. There is one item under the head 'Current assets' titled as "Other receivable, deposits & prepayments" standing at Singapore $ 147010. The break up of that amount is available on page 22 of the balance sheet of M/s.ETP International Limited, Singapore. The further details of the deposits and prepayments covered under this head have also been made available. From such details it can be seen that no ....