2004 (6) TMI 19

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....e-tax Department) under section 260A of the Income-tax Act, 1961 against the orders dated November 14, 2003 passed by the Income-tax Appellate Tribunal in I.T.A. No. 1036/Ind of 1997 and I.T.A. No. 7/Ind of 1998. The question that arises for consideration in this appeal is whether the appeal involves any substantial question of law out of the impugned order of the Tribunal or in other words, whet....

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.... to another sister company free of interest. The Assessing Officer and the Commissioner of Income-tax (Appeals) added the interest in the income of the assessee. However, the Tribunal deleted the addition of interest amount and while accepting the stand taken by the assessee held that the transaction of loan entered into between the assessee and the borrower is genuine and there are valid reasons ....

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.... not really governed by any law as such. That apart, it depends upon several factors as to at what rate interest should be charged and the authorities cannot substitute their own rate for calculating the rate of interest. It is only when the taxing authorities find that the transaction of loan itself is a bogus one and was entered into to avoid payment of tax that appropriate addition can be made ....