2004 (5) TMI 50

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0-91 and 1991-92. Although in the memorandum of appeals findings of the Tribunal on several issues have been questioned, but at the time of arguments counsel for the appellant confined his challenge to the finding whereby disallowance out of interest made by the Assessing Officer has been sustained. During the course of proceedings for the assessment year 1990-91, the Assessing Officer observed that the assessee had diverted huge amounts to M/s. S.A.B. Credits Limited, a company under the same management. He further observed that during the year under assessment, a sum of Rs. 82 lakhs had been advanced out of the cash credit account of the assessee-company in which there was a huge debit balance. He, therefore, held that since the assessee ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessing Officer was justified. Accordingly, the Revenue's appeal on this issue was allowed and the assessee's appeal was dismissed. I.T.A. Nos. 6 and 7 have, therefore, been filed by the assessee against these findings in the assessment year 1990-91. Similarly, in the assessment year 1991-92, the Assessing Officer noticed that in addition to the sum of Rs. 82 lakhs advanced in the assessment year 1990-91, a further sum of Rs. 37,85,000 had been advanced to M/s. S.A.B. Credits Ltd., which also had a clear nexus with the amounts borrowed by the assessee on payment of interest. Accordingly, he disallowed proportionate interest relatable to these amounts amounting to Rs. 20,08,836. On appeal by the assessee, the Commissioner of Income-tax....