Interest on amount advanced to sister concern cannot be disallowed

Trimex Industries Pvt Ltd Vs ACIT (ITAT Chennai) ITAT Chennai held that disallowing the interest to the extent of amount advanced to its sister concern unsustainable as subsidiaries are engaged in the business as that of the assessee and it is called the expansion of business. Facts- The AO on perusal of profit & loss account and balance sheet of the assessee noted that there was substantial increase in quantum of secured loans and unsecured loans during the relevant financial year 2008-09. The AO noted the details of total loans including secured and unsecured loans as on 31.03.2008 were ...