Case Law Details
Assessee has submitted in this case that advance was given amounting to Rs. 39,36,860/- to M/s Kohinoor International and interest was charged @ 6%. It was further claimed that the said advances were given out of the partners capital which was Rs. 30,91,322/- as on 31.3.2007. Furthermore, assessee has contended that there were commercial expediency involved in granting of the said advance as the assessee was to obtained distributorship from M/s Kohinoor International. I have carefully considered the submissions. In my considered opinion, submission of the assessee has considerable cogency that there was commercial expediency involved in granting of the said loan. Hence, orders of the authorities below are not correct. Accordingly, I set aside the orders of the authorities below and decide the issue in favour of the assessee.
INCOME TAX APPELLATE TRIBUNAL, DELHI
Appeal No. ITA No. 297/Del/2012 – A.Y. : 2007-08
Sh. Rajiv Jain, vs. Income Tax Officer
ORDER
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