2022 (11) TMI 673

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....'BLE MR. JUSTICE C.M. POONACHA 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 Stan....

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....the ground that the assessee had deposited an EMD amount 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....

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.... follows: "Sec.36(1): The deductions provided for in the following 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 intere....