- (1.) Heard Sri Gaurav Mahajan, learned Counsel for the appellant-department and Sri Ashish Bansal, learned Counsel for the assessee.
(2.) This appeal under Section 260A of the Income Tax Act, 1961 arises out of the order of Income Tax Appellate Tribunal dated 18.11.2009 for the assessment year 2006-07. The questions of law sought to be answered is hereunder:- "Whether the Income Tax Appellate Tribunal was justified in law in dismissing the appeal filed by the Revenue holding that loan given to M/s Calcutta Detergents Ltd. was a trade advance and that the Assessing Officer had not been able to establish that there was a direct nexus between borrowed funds and the advance given, ignoring the vital facts that as on 31.03.2005 the assessee was not having any interest free fund at its disposal as the whole of the share capital and Reserves & Surplus was locked up in Assets and Business of the assessee and as on 31.3.2006 it was having surplus of Reserve of Rs. 6,48,06,156/- only, while the amount advanced was at Rs. 18,34,64,267/-. This clearly established that the interest bearing fund were advanced as Loan and thus there was direct nexus too between the borrowed fund and advance given."
(3.) We are told that against the aforesaid order of the Tribunal being common order for the assessment years 2005-06 and 2006-07, the department's appeal being Income Tax Appeal No.298 of 2011 for the assessment year 2005-06 has been dismissed vide order dated 19.01.2017 for the reason of below monetary limit.;