ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, KOTA, KOTA vs. CHAMBAL FERTILIZERS AND CHEMICALS LTD., KOTA

As a result, as regards the issue of allowance/disallowance of interest claimed u/s 36(1)(iii) of the Act in respect of the amounts said to have been invested in subsidiaries/group companies/associates, findings recorded by Learned CIT(A) are set aside, and the matter is remitted to Learned Assessing Officer for decision afresh so as to record finding as to amount(s) of interest free funds available with the assessee during the assessment years under consideration, after verification of all relevant documents relied on behalf of the assessee in this regard, and then adjudicate the issue involved in accordance with law.

As regards the valuation of the shares and loss, if any, in view of the findings recorded above, the same is required to be assessed, before any further finding could be recorded about actual or notional loss, and as such, the findings recorded by Learned CIT(A) are set aside in this regard, and the matter is remanded to the Ld. Assessing Officer for determination of the 1097 TO 1099 & 1091/JPR/2024 Chambal Fertilizers and Chemicals Ltd., Kota valuation of the shares as on the date of transfer thereof, after providing reasonable opportunity of being heard to the parties.

In view of the above discussion, the appeals filed by the department are partly allowed for statistical purposes.