2003 (3) TMI 33

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....eals, the following questions are proposed to be considered, being substantial questions of law: Assessment year 1989-90 (Appeal No. 45 of 2003): "Whether the amount of Rs. 2,40,74,820 utilized by the assessee-company for acquisition of shares of M/s. Sharpedge Ltd. through its subsidiaries in order to acquire controlling interest and improve the business conditions is not 'for the purpose o....

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....e its burden under the law and made the disallowance on presumption and surmises?" Assessment year 1990-91 (Appeal No. 34 of 2003): "Whether the amount of Rs. 2,40,74,820 utilized by the assesseecompany for acquisition of shares of M/s. Sharpedge Ltd. through its subsidiaries in order to acquire controlling interest and improve the business conditions is not 'for the purpose of business' wit....

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.... the law and made the disallowance on presumption and surmises?" The assessee has given advance free of interest to its four subsidiaries. The details thereof read as under: Sabre Pens Limited Rs. 59,26,087 Sheen Dental Products   Rs. 63,62,702 Klosershav Products Ltd. Rs. 55,67,615 Venity Cosmetic Ltd. Rs. 62,18,416 Rs. 2,40,74,820 The assessee was not having....

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....ed to establish that this advance amount is having any nexus with the amount he has with him free of interest. On the contrary, the finding is that the assessee-company is running in huge losses and when the assessee had paid huge interest on the loan from financial institutions, there is no justification to advance interest-free loan of Rs. 2,40,74,820 to its subsidiaries for purchase of share....