Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 693 - AT - Income TaxNature of Interest - Capitalization - company is a fully owned subsidiary of NHAI for carrying out the National objective of road development in the country - Return of income was filed - the company was under pre-operation stage, all expenditure and income was capitalized under the head 'Capital Work-in-progress' - Held that advances to subsidiary companies found to be made for business consideration, onus to prove commercial expediency is discharged and deduction of interest is allowable - court relied upon the judgement in C.I.T. vs Bharti Televenture Ltd.(2011 (1) TMI 326 - DELHI HIGH COURT) - Court set aside the order and hold that the interest payable by the assessee company on sub-debt to NHAI was given under business expediency and the same is allowable u/s 36(1)(iii) - the addition be deleted by allowing interest paid to NHAI on sub-debts. Whether the regular assessment in this case was completed at an income u/s 143(3) - the addition was made on the basis of auditor's remarks in item no. 2(vii) in the auditor's report - no effort has been pressed in action for verifying confirmation from the creditors - appeal is restored to AO with a direction that he shall re-decide the issue de novo by affording due opportunity of hearing to the assesse – appeal decided in favour of revenue.
|