2022 (1) TMI 1043

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....l, VP This appeal by the assessee is directed against the order passed by the CIT(A) on 20-09-2017 confirming the disallowance of Rs. 1,03,03,190/- made by the Assessing Officer (AO) u/s. 36(1)(iii) of the Income-tax Act, 1961 (hereinafter also called 'the Act') in relation to the assessment year 2011-12. 2. Succinctly, the facts of the case are that the assessee is a company engaged in ....

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....ontention of having advanced money to UBPL, its sister concern, for business purposes. In fact, the assessee failed to substantiate the advancement of such money to its sister concern for any business purposes. However, it is seen that the assessee's share capital with Reserves and Surplus as at the end of the year stands at Rs. 96.55 crore with the opening balance at Rs. 96.88 crore. As again....

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....out of interest bearing funds. In reaching this conclusion, the Hon'ble High Court relied on the judgment of the Hon'ble Supreme Court in the case of East India Pharmaceutical Works Ltd. Vs. CIT (1997) 224 ITR 627 (SC). Similar view has been taken by the Hon'ble Dehi High Court in CIT vs. Tin Box Company (2003) 260 ITR 637 (Del), holding that when the capital and interest free unsecure....