COMMISSIONER OF INCOME TAX-I Vs. KUDU INDUSTRIES

JUDGEMENT

(1.) THIS is an appeal against the order of the Income Tax Appellate Tribunal which pertains to the assessment year 2009 -10.

(2.) BY an order dated 25.03.2015, notice of motion was issued in respect of the question of law raised in paragraph 5(i). The order noted that the other questions raised have been answered against the appellant by our order and judgment dated 03.03.2015 in Commissioner of Income Tax -I, Ludhiana vs. M/s. Kudu Industries, Ludhiana, ITA No. 382 of 2014. The appeal is admitted on the following substantial question of law: -

(3.) THE assessee was engaged in the manufacturing, trading and job work of yarn and fabrics. The assessee had made interest free advances to various parties including by way of advances to suppliers and employees. These were in the normal course of business. However, advances were made to two parties, namely, Smt. Ritu Saluja and Shiv Narain Investments Private Limited due to their temporary financial requirements.