2019 (1) TMI 1475

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....he Income Tax Act, 1961 (the Act), challenges the order dated 10th June, 2007 passed by the Income Tax Appellate Tribunal (the Tribunal). This Appeal relates to Assessment Year 2001-02. 2. The Revenue urges the following question of law for our consideration: "Whether, on the facts and circumstances of the case, the ITAT was right in relying on the decision in the case of S.A.Builders Ltd. V....

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....der of the Assessing Officer and limited the disallowance to Rs. 50.92 lakhs out of the interest paid on borrowed funds. This on the ground that the above interest is attributable to the borrowed amounts extended as loans to the sister concerns.   5. On further appeal, the Tribunal on examination of the record held that there was no dispute before it that the amounts were advanced to its s....

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....ated to the business of the respondent-assessee firm. Thus, the appeal be admitted.   6. We note that the business of the respondent-assessee is that of dealers of automobiles. Its sister concerns to whom monies are advanced, are engaged in manufacture of bus bodies and running of petrol pump. In these facts, both CIT (A) and the Tribunal found that the business run by respondent's sis....