Itxa/667/2008 Of The Commissioner Of Income Tax -7, Mumbai v. M/S Western Refrigeration Ltd

AGK IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.667 OF 2008 The Commissioner of Income-tax-7 ..Appellant. V/s. M/s.Western Refrigeration Ltd., ..Respondent. Mr.Suresh Kumar for the Appellant. CORAM : D.K. DESHMUKH & J.P. DEVADHAR, JJ. DATED : 14TH OCTOBER, 2008. P.C. : 1. In this case, the respondent / assessee had borrowed interest bearing loans and had also advanced interest free loans to the extent of Rs.29 lakhs to a relative of the director of the assessee Company. The assessing officer disallowed interest to the extent relatable to the interest free loan advanced by the assessee. The tribunal deleted the disallowance. 2. The finding recorded by the tribunal is that the assessee had advanced interest free loans out of the sale proceeds received by the assessee and not from the interest bearing loans availed by the assessee. 3. The learned counsel for the appellant relied upon the judgment of the Punjab and Haryana High Court in the case of Commissioner of Income-tax V/s. Abhishek Industries Limited reported in [2006] 286 ITR 0001. In our opinion, that decision is wholly distinguishable on facts. In that case, substantial portion of the interest bearing loans taken by the assessee were advanced to the sister concern of the assessee. In the present case, the findings recorded by the Tribunal is that interest loans taken by the assessee were not advanced to the sister of the director of the assessee. 4. Thus, the decision of the Tribunal is based on facts. No question of law arises from the order of the tribunal. Hence, dismissed. D.K. DESHMUKH, J. J.P. DEVADHAR, J.