Supreme Court of India
S.A. Builders Ltd. v. Commissioner of Income Tax (appeals) Chandigarh and Anr.
INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.
2 Supreme Court benches have cited this judgment.
What the Court ordered
In view of the above, we allow these appeals and set aside the impugned judgments of the High Court, the Tribunals and other authorities and remand 1086 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R. A the matter to the Tribunal for a fresh decision, in accordance with law and in the light of the observations made above.
Judgment, page 9
From the headnote
Income Tax Act, 1961-Sections 36(i)(iii) and 37-Borrowed funds lent to sister concern without charging interest, for commercial expediency- Held, interest paid on borrowed funds not disal/owable. Words and Phrases-Expression 'commercial expendiency'-Meaning of-Discussed. The question which arose for consideration in these appeals is whether the Tribunal and High Court was justified in disallowing interest on borrowed funds on the ground that the assessee transferred same to its sister concern without charging any interest. Allowing the appeals and remitting the matter to the Tribunal for
Authorities it was built on
Where later benches applied it
- 2020 Shiv Raj Gupta v. Commissioner of Income-tax, Delhi-iv
- 2021 South Indian Bank Ltd. v. Commissioner of Income Tax
Of those, 1 relied on · 1 distinguished
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