TaxTMI 
TaxTMI 
2015 (1) TMI 663
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....878/Ahd/2006, whereby the appeal preferred by the assessee was allowed by the Tribunal. 3. In Tax Appeal No.814 of 2009, the revenue has challenged the order dated 05.09.2008, passed by the Tribunal in ITA No.3325/Ahd/2007, whereby the appeal filed by the revenue was dismissed by the Tribunal. 4. The facts of Tax Appeal No.1126 of 2007 are that the assessee had filed its return for the Assessment Year 2003-2004, declared total income at Rs. 25,76,787/- After scrutiny, the Assessing Officer passed order under Section 143(3) of the Income Tax Act on 7th February 2006 and determined total income of the assessee at Rs. 39,42,350/-. Against the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (....
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....e following substantial question of law:- "Whether, on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal is right in deleting disallowance of Rs. 13,65,558/- out of interest expenditure of Rs. 36,41,487/- paid to M/s. Vareli Fabrics Private Limited ?" 7. While admitting Tax Appeal No.814 of 2009 on 20.08.2010, the Court had formulated the following substantial question of law:- "Whether, on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal was justified in deleting disallowance of Rs. 16,25,550/- out of interest exp....
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....used the material on record. We have also perused the decision of the Apex Court in the case of Walchand and Co. Private Ltd. (supra), relied on by the learned advocate for the respondentassessee, wherein it is held that if the Tribunal was satisfied that the expenditure was laid out or expended wholly and exclusively for the purpose of the business of the assessee there was no reason why the full amount expended should not have been allowed. It is open to the Tribunal to come to a conclusion either that the alleged payment is not real or that it is not incurred by the assessee in the character of a trader or that it is not laid out wholly and exclusively for the purpose of the business of the assessee and to disallow it. But it is not the ....