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2006 (8) TMI 153 - HC - Income TaxDeduction u/s 37 - Expenses incurred on partly convertible debentures - Payment of incentives to Dock Labour Board workers - Interest paid towards the loan taken for acquiring Spic zero bonds. Expenses incurred on partly convertible debentures - HELD THAT:- Learned counsel appearing for the Revenue has not produced any material or evidence to take a different view. The reasoning of the Tribunal was based on relevant materials and evidence and there is no error or infirmity in the order of the Tribunal to warrant interference. In view of the same, no substantial question of law arises for consideration by this court and hence, the appeal in respect of question No.1 is dismissed. Payment of incentives to Dock Labour Board workers - HELD THAT:- The payment was necessitated to utilise the full capacity of manpower from the workers, to avoid demurrage charges and to keep the contract commitments made to the stevedores to discharge the tonnage as stipulated in the agreements between the stevedores and the principals. Both the authorities found that there is no breach of law in making payments which were essentially incidental to the carrying on of the appellant's business with a view to earning profits. The finding given by both the authorities is based on valid materials and evidence and there is no error or legal infirmity in the order of the Tribunal and hence, does not require interference. Thus, no substantial question of law arises for consideration of this court and hence, the appeal with respect to question No.3 is dismissed. Interest paid on the borrowings from the subsidiary company - HELD THAT:- There is a factual finding that the assessee had its own free reserves and funds used mainly for running expenses. Also, there was no material produced by the Revenue to establish that the money borrowed was actually given to its subsidiaries. Hence the conclusion of the Tribunal is based on material and evidence and it does not suffer from legal infirmity to warrant interference. In view of the above, no substantial question of law arises for consideration of this court and hence, the appeal qua question No.5 is dismissed. Interest paid towards the loan taken for acquiring Spic zero bonds - HELD THAT:- Both the first appellate authority as well as the Tribunal have given a factual finding that the assessee is a flag-ship company carrying on worldwide business and the bonds were acquired for purposes of the business. The conclusion arrived at by the authorities was based on material and evidence and hence no substantial question of law arises for consideration by this court and hence, the appeal in regard to question No.7 is dismissed. In the result, the tax case is dismissed.
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