2010 (11) TMI 1083

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....O.K. Narayanan, This appeal is filed by the Revenue. The assessment year is 2003-04. The appeal is directed against the order of the C.I.T.(Appeals)-III at Chennai dated 30.9.2009 and arises out of assessment completed under sec.143(3) of the I.T. Act, 1961. 2. The grounds raised by the Revenue in this appeal read as follows : "2.1 The learned CIT(A) erred in deleting the disallowance of inte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as per the BIFR order, advance of ₹ 100 lakhs was to be provided as interest free loans while the assessee has advanced more than ₹ 10 crores as loan to the subsidiary company and has not chosen to charge interest on the entire sum. 2.5 The learned CIT(A) failed to consider the point that the subsidiary company recorded a profit of ₹ 9.69 million for the year ended 31-12-2002 (....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iven by the assessee did not have the element of commercial expediency. 'We wish to make it clear that it is not our opinion that in every case interest on borrowed loan has to be allowed if the assessee advances it to a sister concern. It all depends on the facts and circumstances of the respective case.'" 3. We heard Shri K.E.B.Rangarajan, the learned Junior Standing Counsel appearing for the....