COMMISSIONER OF INCOME TAX Vs. SURAJ DEV DADA

JUDGEMENT

(1.) This appeal has been preferred by the Revenue under section 260A of the Income-tax Act, 1961 (in short, "the Act"), for the assessment year 2008-09 against the order of the Income-tax Appellate Tribunal, Chandigarh Bench "B" (in short, "the Tribunal"), dated August 22, 2012, annexure A3 in I.T.A. No. 109/Chd/2012, claiming the following substantial questions of law:

(2.) We have heard learned counsel for the parties and perused the record.

(3.) Learned counsel for the Revenue submitted that there was no commercial expediency and in such a situation, the interest paid by the assessee to M/s. Dada Motors Pvt. Ltd. was rightly disallowed by the Assessing Officer under section 36(1)(iii) of the Act. Reference was made to the judgment of the apex court in S.A. Builders Ltd. v. CIT, 2007 288 ITR 1 (SC).