The Commissioner Of Income Tax, Patiala v. M/S Mohan Bottling Co (P) Ltd., New Delhi

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITR No.19 of 1997 Date of decision: 29.04.2013 The Commissioner of Income Tax, Patiala ...Appellant versus M/s Mohan Bottling Co (P) Ltd., New Delhi ..Respondent CORAM: HON'BLE MR. JUSTICE HEMANT GUPTAHON'BLE MS. JUSTICE RITU BAHRI Present:- Ms. Savita Saxena, Advocatefor the appellant. Mr. Akshay Bhan, Advocate and Mr. Alok Mittal, Advocatefor the respondent. *** HEMANT GUPTA, J. (Oral) The Revenue has framed the following substantial question of law in relation to the Assessment Year 1985-86: “Whether on the facts and in the circumstances of the case, the ITATwas right in law in confirming the order of the first appellate authoritydeleting the addition of Rs.39,344/- made u/s 40(c) on account ofinterest on interest-free advances made by the assessee-company orits director.” The said question of law has been answered by a Division Bench of this Court in a case titled as The Commissioner of Income Tax vs. Mohan Bottling Co. Pvt. Ltd passed in I.T.R Nos.581 & 582 of 1995decided on 01.10.2010 relating to assessee's own case for the assessmentyear 1983-84 and 1984-85, wherein it has been held that giving theinterest free loan to any employee is not covered by the provision ofdisallowance under Section 40A(5) or Section 40(c) of the Income Tax Act, 1961. In view of the said order, the question of law sought, isanswered against the Revenue and in favour of the assessee.Disposed of accordingly. (HEMANT GUPTA) JUDGEApril 29, 2013 (RITU BAHRI)G.Arora/Vimal JUDGE