TaxTMI 
TaxTMI 
2017 (3) TMI 1046
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....07-08.The Revenue has raised the following grounds of appeal: i. "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in deleting the disallowance of interest relying on the judgement in the case of M/s S.A. Builders (288 ITR 1 ) ignoring the subsequent judgement of Supreme Court in the case of Tulip Star Hotels Ltd. (2012) (21 taxmann.com 97) wherein e Apex Court has held that the judgement in the case of S.A. Builders (288 ITR 1) needs reconsideration ?" ii. "Whether on the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in deleting the disallowance of interest of Rs. 95,85,467/-, holding that the advances for the purpose of business of the sister concern are required ....
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.... 3. We have heard the ld. Departmental Representative (DR) for the Revenue as well as ld. Authorized Representative (AR) of the assessee and considered the relevant material available on record. At the outset, it was submitted by ld. AR of the assessee that Ground No. 1 & 2 raised by the Revenue in the present appeal is covered in favour of assessee by the decision of Tribunal in assessee's own case for AY 2004-05 in ITA No. 2120/Mum/2008. It was further submitted that the order of Tribunal was further followed in appeal for AY 2005-06 in ITA No. 4066/Mum/2009 dated 11.01.2012. Ld. DR for the Revenue not disputed the decision for AYs 2004-05 and 2005-06. 4. We have considered the contention of both the parties and seen that similar Grou....
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....any case, as held by Hon'ble Supreme Court in the case of S.A. Builders (supra), the expression 'commercial expediency' is of wide import and even advances for the purpose of business of the sister concern are required to be treated as for business purposes. The Assessing officer was thus clearly in error in resorting to the disallowance on the short ground that while the assessee has borrowed the money on interest, it has given an interest free advance to the sister concern. That approach certainly constitute a very superficial view of the matter, and the CIT(A) was justified in reversing the disallowance so made by the Assessing Officer. We approve the conclusion arrived at by the CIT(A) and decline to interfere in the matter.....
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....vt. Ltd. for more than three years. The AO issued show-cause notice to the assessee that as to why the amount should not be treated as cessation of liability u/s 41(1) of the Act. The assessee filed its reply. In the reply, the assessee contended that unilateral entries in the accounts will not amount to cessation of liability, section 41(1) contemplate the obtaining by the assessee an amount either in cash or in any other way whatsoever benefit by way of remission of cessation. It should not be particular amount obtained by him. It was further contended for the obtaining benefit to the assessee by virtue of remission of cessation is sine-qua-non for the application of this section. The mere fact that assessee has made an entry or transfer ....
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....g any entry in the account of trading agency in the profit & loss account. Secondly, there should be an event of cessation of liability to take place. If anything happens during the year under consideration it cannot be said that the liability has to be ceased to exist. In case of remission there has to be a waiver by a creditor in favour of the assessee either unilaterally or through contractual agreement. Further, there has to be a positive act on the part of the creditor in the current year which would provide the benefit to the assessee by way of remission. If no such act takes place then there is no case for holding that a liability has been remitted in favour of the assessee. "Merely because certain amount is outstanding for a number ....