KIRANJIT FOILS LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee had entered into an agreement with a Hungarian company for the purchase of a second hand plant costing US$ 14,40,598.00. The assessee had appointed Ms.SBI Caps Ltd. to appraise the project and had apparently obtained some assurances from the State Bank of Travancore to sanction a fund based loan and a non -fund based loan for opening a letter of credit in favour of the Hungarian company.

(2.)

(3.) THE assessee generated funds by issuing shares and unsecured loans from promoters, friends and relatives for this purpose. Initially, the amount so generated was deposited in the Canara Bank and then transferred to the State Bank of assessee earned interest of Rs. 13,95,304.