TMI Blog2008 (9) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... ,32,79,128/- incurred by the assessee on the funds borrowed from M/s. Genesis Consultants Pvt. Ltd. amounting to 3. In first round the matter travelled upto Tribunal and was restored back to the file of Commissioner (Appeals) by Tribunal. In the second round Commissioner (Appeals) agreed with Assessing Officer that the expenditure by way of fund management charges was not incurred for earning dividend income but was incurred for having control over M/s. Core Healthcare Ltd. 4. After hearing the parties and considering the case law both in relation to claim u/s 57 (iii) of the Income-Tax Act, 1961 (the Act) and Section 36 (1) (iii) of the Act Tribunal allowed the appeal on the ground that expenditure in question was allowable as busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. by way of fund management charges. M/s. Genesis Consultants P. Ltd. is a separate assessee and is being assessed separately. The interest paid by the assessee has duly been shown by M/s. Genesis Consultants P. Ltd., as its income. The assessee has claimed the deduction in respect of interest paid on the funds borrowed for investing in acquiring the shares of M/s. Core Healthcare Ltd., in the return u/s 57(iii) but during the course of assessment proceedings the assessee has taken alternative contention before the authorities below that in case the interest is not allowable u/s l57(iii), it should be allowed u/s 36(1)(iii). The case of the Revenue is that the assessee-company has invested the funds in acquiring the shares in M/s. Core H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of investment in shares, etc, which has not been denied before us, therefore, the loan taken by the assessee was for commercial expediency and, therefore, in our opinion, the assessee is entitled for the deduction u/s 36(1) (iii) on the basis of provisions of law as laid down by the Hon'ble Supreme Curt in the case of S.A. Builders 288 ITR (SC). 9. Thus, it is apparent that the Tribunal has dealt with alternative contention raised by the respondent assessee and applying the settled legal position as regards applicability of Section 36(1)(iii) of the Act allowed the appeal. 10. The factors urged by the appellant revenue may have material bearing in relation to claim u/s 57(iii) of the Act. The tribunal not having gran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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