2015 (8) TMI 281

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....missing the appeal for default. Thereafter, the revenue did not move to have the matter urgently circulated. The above notice of motion taken out by the revenue came up for hearing on 17th July 2015. At which time we allowed the notice of motion and placed the appeal for admission. It is in the above circumstances that the appeal of 2008 has come up for admission in 2015. 3. The appellant revenue has raised the following question of law for our consideration : "Whether on the facts and in the circumstances of the case the Tribunal was justified in law in confirming the order of the Commissioner of Income Tax (Appeals) in directing to allow interest on borrowed capital amounting to Rs. 18.37 lacs as allowable under Section 36(1)(iii) of t....

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.... at the time when the project is completed. It is further submitted by Mr.Chhotaray that there was no substantial business was carried out as an agent by the respondent-assessee and in the facts and circumstances, the findings of the authorities showing that the amount has been utilized for the purposes of business is not justified. It is submitted that, in view of the judgment of the Apex Court in the case of Challapalli Sugars Ltd. v/s Commissioner of Income Tax (Central), reported in 98 ITR 167, this amount of interest cannot be allowed as expenditure as the business had not commenced. 8. We find that the submission made by Mr.Chhotaray on behalf of the revenue would require investigation into facts when these points were not urged by t....