2006 (2) TMI 649

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....MENT P.P.S.Janarthana Raja,J.-The above tax case appeals are directed against the order of the Tribunal in ITA Nos. 2266 and 2267/Mad/1996 dt. 19th Nov., 2004, raising the following substantial questions of law : "1. Whether, in the facts and circumstances of the case, the Tribunal was right in deleting the addition towards the element of the customs duty on the closing stock. 2. Whether,....

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....D expansion project. The assessee had incurred substantial amount of capital expenditure on the establishment of the above projects. For the purpose of incurring capital expenditure in the project, the assessee borrowed funds from outside and paid interest at Rs. 2,39,61,676. The interest amount of Rs. 2,39,61,676 was capitalised by the assessee in the books. However, while computing the income fo....

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....sessee. 4. The issue involved in questions 1 and 2 is covered against the Revenue by the decision of this Court in the case of CIT vs. English Electric Co. of India Ltd. (2000) 161 CTR (Mad) 235: (2000) 243 ITR 512(Mad). Hence, the order of the Tribunal is in conformity with law. 5. In respect of question No. 3, the assessee claimed deduction under s. 36(1)(iii) of the Act, which reads as fo....