The Tax Publishers2013 TaxPub(DT) 2225 (Guj-HC) : (2013) 053 (I) ITCL 0372 : (2013) 217 TAXMAN 0105

Income Tax Act, 1961

--Income --Accrual Notional interest on interest-free loans to sister concerns--Assessing officer made addition on account of interest towards advances made by the assessee to its sister concerns as notional interest. Appellate authorities had allowed the claim of assessee that there was no income to be charged as notional income on accrual basis. Held: Both the Commissioner (Appeals) as well as the Tribunal relied on the decision of Gauhati High Court in B & A Plantations & Industries Ltd. v. CIT 2000 TaxPub(DT) 1089 (Gau-HC) : (2000) 242 ITR 22 (Gau) for the principle that where no interest was charged on the interest-free loans to sister concerns, there was no income to be charged as notional income on accrual basis. Therefore, no substantial question of law arose for consideration.

Income Tax Act, 1961 Section 5

In the Gujarat High Court

V. M. Sahai & N.V. Anjaria, J.J.

CIT v. Arihant Avenue & Credit Ltd.

Tax Appeal No. 204 of 2012

A.Y. 2005-06

16 August, 2012

Decision: In assessees favour.

Appellant by :Mauna M. Bhatt

JUDGMENT

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