2013 (12) TMI 1263

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....- O.P. Sapru, P.K. Jain, Sandeep Sapru We have heard Sri Dhananjai Awasthi for the appellant-department. Sri P.K. Jain learned counsel for respondent-assessee appeared, and states that he has no instructions. This Income Tax Appeal under Section 260-A of the Income Tax Act 1961 (in short 'the Act') is directed against the order dated 28.03.2005, passed by the Income Tax Appellate Tri....

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....it was sett up a new unit on which work was in progress. A consensus of judicial opinion is that even if borrowed fund are used for expansion/extension of assessee's business, the interest thereon was to be allowed as revenue expenditure. Further, it is also not in dispute that the assessee had its own share capital of Rs. 20.67 crores and no evidence had been brought on record by the AO to sh....

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....ibunal has referred to 205 ITR 421 (Allahabad H.C.); 183 ITR 437 (Delhi H.C.), 169 ITR 499 (Raj. H.C.), and 150 ITR/195 (Karnataka H.C.) in holding that even if it is assumed that borrowed funds were used for the explanation/extension of assessee's business, the interest thereon was to be allowed as as business expenditure. The Tribunal has further observed that the AO has not given any bas....

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....he borrowed amount for the project was to be allowed as revenue expenditure, as held by the Tribunal. The Tribunal held that the AO was factually incorrect in taking into consideration of the amount of Rs. 96,84365/- whereas during the year under appeal, fresh utilization of funds amounting to Rs. 26,42,240/-. The Tribunal being final court of accepting any finding has found justification in....