2022 (11) TMI 673

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....A APPELLANTS (BY SHRI. E.I. SANMATHI, ADVOCATE) RESPONDENT (BY SRI. SUDHEENDRA B.R., ADVOCATE) JUDGMENT P.S.DINESH KUMAR J., This appeal by the Revenue directed against the order dated 20.07.2018 passed in ITA No.2135/Bang/2017, has been admitted to consider three questions of law framed by the Revenue. After hearing Shri. E.I. Sanmathi, learned Standing Counsel for the Revenue and Shri. B.R....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mount of Rs.293.61 Crores for the purchase of asset and therefore, interest payable on the monies borrowed should have been capitalized or shown as 'Work in progress'. 3. On appeal, the CIT(A) held that the interest received on the EMD has been offered to tax in the subsequent assessment years treating it as Revenue in nature. Therefore, Assessing Officer's view that the interest paid....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....llowing clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28- (i) & (ii) ........ (iii) the amount of the interest paid in respect of capital borrowed for the purposes of the business or profession: Provided that any amount of the interest paid, in respect of capital borrowed for acquisition of an asset for extension of exis....