Petition dismissed; deletion under s.36(1)(iii) upheld as cash-accounting investor's interest not disallowable, matching principle inapplicable

The SC dismissed the Special Leave Petition and declined to interfere under Art. 136, upholding the tribunal's deletion of the addition under s.36(1)(iii). The Court agreed that an investment company using cash accounting lending interest-bearing funds without charging interest to associates did not render the lower interest rate disallowable; the "matching principle" was inapplicable and no substantial question of law arose. The impugned order therefore stands and any interlocutory applications are disposed of.

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"Delay condoned." The Court declined to exercise its discretionary jurisdiction under Article 136 of the Constitution of India, stating: "We are not inclined to interfere with the impugned order in exercise of our jurisdiction under Article 136 of the Constitution of India." Consequently, "The Special Leave Petition is, accordingly, dismissed" and the accompanying interlocutory application(s), if any, stand disposed of. No reasons beyond the exercise of discretion are recorded in the order. The procedural posture reflects: (i) acceptance of delay and its condonation; (ii) refusal to grant special leave to challenge the impugned order; and (iii) final disposal of the petition and any ancillary interlocutory applications.

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