Search Results Page
Search Results
1 - 2 of 2 (0.97 seconds)
Compagnie Indo Franchise De Commerce ... vs Dy. Commissioner Of Income Tax , ... on 13 March, 2019
cites
Commissioner Of Income Tax-I vs Abhishek Industries Ltd. on 4 August, 2006
12. As regards ground No. 3 (a to i) regarding disallowance
of proportionate interest on free advances u/s 36(1)(iii) of Rs.
41,75,409/-, during the course of assessment proceedings, the
AO noted that the assessee had given interest free advances
of Rs. 7,02,17,155/- to its sister concerns. However, th e
assessee also took interest bearing loan of Rs.
381,15,76,206/-, on which it has paid an interest of
Rs.14,45,78,832/- during the year under consideration . The
Assessing officer asked the assessee to s how cause as to why
the proportionate interest should not be disallowed on these
interest free advances in the light of decisions of higher courts
in CIT Vs. Abhishek Industries Ltd., (P&H HC) Vs. Baby & Co.
(Kerala HC). Since the assessee failed to give any convincing
explanation, the AO computed the disall owance of
proportionate interest at Rs. 41,75,409/ -, as under:
1