TMI Blog2022 (9) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 (11) TMI 1360 - ITAT DELHI ] We further find that thereafter, Co-ordinate Bench of Tribunal in assessee s own case for A.Y. 2012-13 [ 2022 (3) TMI 1419 - ITAT DELHI] has decided the identical issue in assessee s favour as held assessee had sufficient interest free funds to meet the capital expenditure and to make investments, no disallowance u/s 36(1)(iii). Before us, no distinguishing feature in the facts of the case and that of earlier years which have been decided by ITAT in assessee s favour has been pointed out by Revenue. In such a situation, we find no reason to interfere with the order of CIT(A) and thus the ground of Revenue is dismissed. - ITA Nos. 6836 And 7492/Del/2018 - - - Dated:- 8-9-2022 - Sh. Anil Chaturvedi, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 25.01.2018 in Appeal No.257/17-18 granted substantial relief to the assessee. Aggrieved by the order of CIT(A), Revenue is now in appeal and has raised the following grounds: 1. Whether on the facts and circumstances of the case, the Ld CIT(A) was justified in relying upon the order of ITAT in the assessee s own case for A.Y. 2010-11, wherein Hon ble ITAT had ignored the reasoning given by Ld PCIT for application of debtequity ratio for calculation of interest to be capitalized/disallowed on addition made to fixed assets and capital work in progress and amount of investment as the same was accepted in decision of the Hon ble ITAT Delhi in the case of M/s. U. G. Hospitals (P.) Ltd. in ITA No.5727/Del/2010 where mized pool of fund w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest under various heads of income. He thereafter at Para 58 of the order worked out the average debt equity ratio @1.63 and based on the aforesaid working, he worked out that out of the total investments made by assessee, investments worth Rs.705.76 crore were invested out of the borrowed funds. He thereafter held that since borrowed funds generally bears an interest rate between 9-10%, an average of 9.5% would be the fair rate of interest at which the funds were borrowed and invested. He thus accordingly worked out the interest cost on investments to be out of borrowed funds that was worked at Rs.705.76 crores and on such investment, by applying the interest rate of 9.5% worked out the interest cost at Rs.65.05 crores which according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Utilities 313 ITR 340 and of Delhi High Court in the case of Eicher Goodearth in ITA No. 54/2000. Aggrieved by the order of CIT(A), Revenue is now in appeal before us. 8. Before us, Learned DR supported the order of lower authorities. 9. Learned AR on the other hand reiterated the submissions made by lower authorities and further submitted that identical issue arose in Revenue s appeal in assessee s own case for A.Y. 2012-13 and Co-ordinate Bench of Tribunal vide order dated 25.03.2022 had deleted the addition. He submitted that since the facts in the case in the year under consideration are identical to that of earlier years, no interference to the order of CIT(A) is called for. He pointed to the copy of order of Tribunal for A.Y. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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