2017 (8) TMI 35

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....ita Jha & Ms. Roopali Gupta, Advocates ORDER 1. This is an appeal by the Revenue under Section 260A of the Income Tax Act, 1961 ('Act') against an order of the Income Tax Appellate Tribunal ('ITAT') dated 4th August, 2016 in ITA No. 6080/Del/2013 for the Assessment Year ('AY') 2007-08. 2. On 15th March, 2017 while admitting the appeal and framing one question of law, the Court passed the follow....

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....ischief under the explanation to Section 37 (1) as it was the interest paid for late repayment of advance to M/s IFCI Ltd, even as far as the amount written off, i.e., Rs. 70,44,023 is concerned. The Court notes that the sole rationale for disallowance by the AO was that the assessee had stopped its business. The assessee had claimed the said amount as the value of old stock written off. The quest....

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....framed in the appeal stood answered in favour of the Assessee by the decision of this Court in CIT v. Pasupati Spinning Weaving Mills Ltd. [2015] 378 ITR 80 (Del). 4. Mr. Ruchir Bhatia, learned Senior Standing Counsel appearing for the Revenue submitted that notwithstanding the aforementioned decision, it is the decision of this Court in Logitronics P. Ltd. v. CIT (2011) 333 ITR 386 (Del), which ....

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.... that "the loan was for the purchase of capital asset." 7. Mr. Vohra has also placed before the Court a copy of the sanction letter from IFCI, evidencing the fact that the term loan was utilised for purchasing fixed assets. This was further supported by copies of the audited balance sheet as at 31st March 2000 and 31st March 2001. He has also placed before the Court a copy of the audited balance ....