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(d) The details of payment made to M/s. Gharda Chemicals Ltd.

Under the circumstances, no interest should be disallowed out of the interest payment to the bank as the same has been incurred wholly and exclusively for the business purpose."

5.5. The above submission of the assessee has been gone through by the undersigned, and the contention made by the assessee in this regard, is not found acceptable considering that the same are not borne out of the facts of the case. There is an opening debit balance of Rs.11.57 crores and also closing debit balance of Rs.23.15 crores and even when the transactions during the year with GCL are taken into consideration as mentioned in above table, it is a case of parking of interest-bearing funds of the assessee company with its associates during the entire previous year. Therefore, the assessee's contention that they were not charging any interest on the amount outstanding from any other customer is not acceptable.