Court dismisses appeal on various tax issues, upholding lower decisions.

The Court dismissed the appeal on all issues raised, including the interpretation of Section 36 for guarantee commission, Section 43(2) for loss on re-valuation of foreign currency, Section 36(1)(iii) for interest on inter corporate deposits, and Section 37 for enhancement of lease rental. The Court upheld the decisions of the Tribunal and CIT(A) based on previous precedents and factual findings, leading to the dismissal of the appeal without any order as to costs.

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Issues:
1. Interpretation of Section 36 for guarantee commission
2. Interpretation of Section 43(2) for loss on re-valuation of foreign currency
3. Interpretation of Section 36(1)(iii) for interest on inter corporate deposits
4. Interpretation of Section 37 for enhancement of lease rental

Interpretation of Section 36 for guarantee commission:
The first issue raised in the appeal concerns the interpretation of Section 36 of the Income Tax Act, 1961, specifically related to the allowance of guarantee commission claimed by the assessee. The Tribunal had previously followed a decision for the assessment year 1997-98, which was upheld by the Court. Since the appeal against the earlier year assessment order was dismissed, the Court found no reason to entertain this question, ultimately dismissing it.

Interpretation of Section 43(2) for loss on re-valuation of foreign currency:
The second issue pertains to the interpretation of Section 43(2) of the Income Tax Act, 1961, in relation to the loss on re-valuation of foreign currency. The Tribunal relied on a previous decision of the Court, and based on this precedent, the Court found no fault in the Tribunal's order. Consequently, the proposed question of law regarding this issue was not entertained.

Interpretation of Section 36(1)(iii) for interest on inter corporate deposits:
The third issue raised in the appeal involves the interpretation of Section 36(1)(iii) of the Income Tax Act, 1961, regarding the allowance of interest paid on inter corporate deposits. The Tribunal upheld the finding of fact by the CIT(A) that the borrowed funds were used for business purposes, justifying the allowance under the Act. As this decision was based on a factual finding, the Court saw no reason to entertain this question, leading to the dismissal of the appeal on this issue.

Interpretation of Section 37 for enhancement of lease rental:
The final issue concerns the interpretation of Section 37 of the Income Tax Act, 1961, specifically regarding the enhancement of lease rental claimed by the assessee. The Tribunal concluded that the variation in lease rental was based on commercial considerations, upholding the CIT(A)'s decision. As a result, the Court declined to entertain the formulated question on this issue and dismissed the appeal with no order as to costs.

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