TaxTMI 
TaxTMI 
2016 (5) TMI 1152
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....he Income Tax Act, 1961 (in short "the Act") against the order dated 30.11.2010 (Annexure-3) passed by the Income Tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 1043/CHD/2010, for the assessment year 2005-06, claiming the following substantial question of law:- Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is right in upholding the order of CIT(A) dated 18.05.2010, thereby deleting the addition of Rs. 56,48,840/- made by the Assessing Officer on account of disallowance of interest relatable to investment in capital-work-in-progress? 3. A few facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assesse....
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....capital work in progress. Thereafter, the revenue filed two appeals against the separate orders dated 18.5.2010 (Annexure-2) and dated 27.6.2010 for the assessment years 2005-06 and 2006-07 before the Tribunal. The Tribunal vide order dated 30.11.2010 (Annexure-3) upheld the order of the CIT(A) and dismissed the appeals. Hence, the present appeals by the revenue. 5. We have heard learned counsel for the revenue. 6. The primary issue that arises for consideration in this appeal is whether the Tribunal was right in upholding the order of the CIT(A) thereby deleting the addition of Rs. 56,48,840/- made by the Assessing Officer on account of disallowance of interest relatable to investment in capital work in progress. 7. Under the proviso to....
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....id capital work in progress and claimed not to have borrowed any fresh loan during the relevant period. Nothing was produced by the revenue to show to the contrary. Thus, the deletion of addition of Rs. 56,48,840/- by the CIT(A) was upheld by the Tribunal. The relevant findings recorded by the Tribunal read thus:- "We have heard the rival contentions and perused the records. Under the provisions of proviso to Section 36(1)(iii) of the Income Tax Act inserted by Finance Act, 2003 w.e.f. 2004-05, it is provided that such amount of interest paid in respect of capital borrowed for acquisition of assets for the period from date on which the said capital was borrowed for the acquisition of assets till the date the same are put to use, such inter....