2016 (10) TMI 1104

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....ction 260-A of the Income Tax Act, 1961 (the Act), challenges the order dated 25th June, 2013 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order relates to Assessment Year 2005-06. 2. The Revenue urges the following question of law for our consideration:- "Whether on the facts and in the circumstance of the case and in law, the Tribunal, Pune was correct in ....

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....eing proportionate to interest-free advances made by it to its sister concerns. This disallowance was partly under Section 14-A of the Act and partly under Section 36(1)(iii) of the Act. 4. Being aggrieved, the Assessee filed an appeal to Commissioner of Income Tax (Appeals) [CIT (A)]. In appeal, the CIT (A) set aside the order of the Assessing Officer and restored the issue to him for passing ....

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....be examined on the touchstone of Section 36(1)(iii) of the Act took up the issue for consideration. The dispute before the Tribunal was whether the Respondent-Assessee had its own sufficient fund so as to give interest-free advances to its sister concerns. Accordingly, the Tribunal directed Assessee to file its written submission in support of its assertion that it had its own sufficient interest-....

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.... in the remand report of the Assessing Officer. The Tribunal in its impugned order also placed reliance upon the decision of this Court in CIT v. Reliance Utilities & Power Ltd. [2009] 313 ITR 340/178 Taxman 135 (Bom.) to hold that where interest-free funds available with an Assessee are sufficient to meet its investment then it shall be presumed that the investments have been made from interest-f....