Case Law Details
Gujarat Nippon Enterprises Pvt. Ltd. Vs ITO (ITAT Ahmedabad)
The question that requires to be adjudicated whether the investment was made by the assessee to have controlling interest in the companies.
Regarding loans granted by the assessee, the assessee company has given advances to five tooth brush companies as a business strategy to have controlling stake in their business and so that interest has not been charged on the same.
The above submission of the assessee has actually been translated in reality which is evident from the order of the Hon’ble Gujarat High Court. All the aforesaid companies were amalgamated with the assessee.
ITAT observed that the investments was made by the assessee in the companies in order to have controlling stake which is considered as for the purpose of the business. Therefore, there cannot be any disallowance of interest expenses.
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