Sections 2(22)(e) not applies to loans from sister concern on commercial basis

Jayson Industries Vs ITO (ITAT Delhi)

Assessee firm has obtained loans from the sister concern on commercial basis. On facts it has emerged that the lender company has charged interest on advances made to assessee firm. The assessee has taken plea that the advances made by the lender company to the borrower assessee firm is not a loan/advance but is beset with the character of quid pro quo owing to charge of interest for the benefit of lender company. In the circumstances, the Hon’ble Calcutta High Court in the case of Pradip Kumar Malhot

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