TaxTMI 
TaxTMI 
2017 (11) TMI 322
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....)(e) of the Income-tax Act, 1961 amounting to Rs. 2,84,87,233/- in assessment year 2011-12 and Rs. 6,37,55,557/- in assessment year 2012-13. 3. At the time of hearing before us, it is submitted by the learned counsel that the assessee is a major shareholder in the following companies :- Sr.No. Name of company Nature of business Assessee shareholding (in %) i) Superior Ltd. Films (P) Interest income and renting of property 26.91 ii) Superior Clothing (P) Ltd. Manufacturer and Exporter of readymade garments 40.9 iii) Superior Ltd. Crafts (P) Manufacturer and exporter of readymade garments 30.51 iv) Satyam (P) Ltd. Autoserve Authorized&nbs....
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.... income was offered to tax in the hands of M/s Superior Films (P) Ltd. He pointed out that M/s Superior Films (P) Ltd. received interest amounting to Rs. 78,51,725/- from M/s Superior Clothing (P) Ltd. and Rs. 29,650/- from M/s Superior Crafts (P) Ltd. during the assessment year 2011-12 and Rs. 2,62,90,476/- and Rs. 33,11,489/- in assessment year 2012-13. He also stated that even in earlier and subsequent years also, the money was advanced by M/s Superior Films (P) Ltd. to these concerns and interest was charged on regular basis. Thus, there was a regular transaction of advancing of money by M/s Superior Films (P) Ltd. to the group concerns from whom interest was charged at the normal market rate year after year and the Revenue has also acc....
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....t received from the group concern as well as others. For ready reference, the same is reproduced below :- Sr.No. A.Y. Interest received from Superior Clothing Interest received from Superior Craft Interest received from other parties Gross Interest Other income Revenue from operations Assessment u/s i) 2007- 08 5,99,135 10,71,186 4,18,192 20,88,513 2,28,01,673 2,48,90,186 143(1) ii) 2008- 09 47,78,479 7,25,342 13,79,730 68,83,551 10,45,77,420 11,14,60,971 143(1) iii) 2009- 10 7,21,01,18 9,089 10,45,446 82,64,653 6,33,29,416 7,15,94,069 143(1) iv) 2010- 11 -- -- 8,61,190 8,61,190 13,88,227 22,49,417 143(1) v) 2011- 12 78,51,725 (124,131G) 29....
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....oup concerns, from which, it is evident that there were several transactions of the payment and receipt of the money during the years under appeal. Considering the totality of above facts, we have no hesitation to hold that M/s Superior Films (P) Ltd. used to advance the money for earning interest income to various concerns which included group concerns also. The advancing of money was a regular course of business for M/s Superior Films (P) Ltd., not only in the years under appeal but also in the preceding as well as subsequent years. In view of the above, we have no hesitation to hold that advancing of money by M/s Superior Films (P) Ltd. to the group concerns was during the course of normal course of advancing money for the purpose of ear....