2012 (11) TMI 1168

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....r.Srihari M Iyer for the respondent JUDGEMENT 1. Two questions of law raised by the Revenue in this appeal reads thus : a) Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the disallowance of Rs. 2,71,65,498/made by the Assessing Officer being interest paid on loans raised specifically to set up a new unit at Sisodra and for....

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....pellate Tribunal has allowed interest on the borrowed capital under Section 36(1) (iii) by recording a finding that the borrowed capital was used in connection with the existing business of the assessee. In such a case, where there is no issue relating to depreciation is involved, the Apex Court in the case of Dy. Commissioner of Income tax V/s. Core Health Care Limited reported in (2008) 298 ITR ....