Hero Cycles (P) Ltd. vs Commissioner Of Income Tax (Central) on 5 November, 2015
10. Similarly, we find that for assessment yar 2012-13 the capital of
the firm as per balance sheet placed at (PB Page 3) was `
13,21,61,500/- and the interest free current liabilities were to the
tune of ` 91,20,514/- making the total availability of interest free
funds to the tune of ` 104.58 crores. The assessee in this year had
made investments in the group concerns as noted by Assessing
Officer to the tune of ` 53.76 crores. Therefore, we find that in this
year also the assessee had sufficient interest free funds to make
investment in the group companies. Further we find that learned
CIT(A) has followed the decision of Punjab & Haryana High Court
in the case of Abhishek Industries and has further relied upon the
decision of M/s Bright Enterprises Private Limited, decided by
Amritsar Bench, we find that the decision of Bright Enterprises
Private Limited has been overruled by Punjab and Haryana High
Court. The findings of Hon'ble Punjab & Haryana High Court are
reproduced below.