TaxTMI 
TaxTMI 
2012 (8) TMI 1161
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....ourt: "(A) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in directing to allow deduction of ₹ 7,97,83,057/- disallowed u/s. 36(1)(iii) despite the fact that the decision of Hon'ble Supreme Court in the case of S.A. Builders v. CIT [2007] 288 ITR 1 was clearly applicable to the facts of the case ?" 2. Upon hearing learned advocate Mr. K.M. Parikh appearing for the Revenue and on close perusal of record, it appears that the Assessee-Company advanced its funds to the Associate Companies available at its disposal. Assessing Officer while working out the fund and utilization thereof, concluded that those were the interest bearing funds utilized for making interest free advances, r....
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.... decision of Assessing Officer by holding thus : "We have considered the rival submissions. On going through the figures in the balance sheet of the assessee company as on 1.4.94 and 31.3.95 we find that the share capital and the reserves and surplus together with the accumulated depreciation would far exceed the loans and advances made to the above said three concerns. The percentage of loans and advances in relation to the own funds of the assessee company would be 0.012% as on 1.4.94 and 0.0135% as on 31.3.95 as per-details furnished on page 62 of the paper book. In other words there were sufficient funds available with the company on which no interest was paid and out of which the loans and advances to the above said concerns cou....