2014 (8) TMI 119 - HC - Income Tax

Share capital and reserves - Investment in tax free securities/ investments represented in assessee’s own funds or not – Held that:- Following the decision in The Commissioner of Income Tax Versus Reliance Utilities & Power Ltd. [2009 (1) TMI 4 - HIGH COURT BOMBAY] - the Assessee's own funds and other non-interest bearing funds were more than the investment in the tax-free securities - the Assessee's capital, profit reserves, surplus and current account deposits were higher than the investment in the tax-free securities - the investment made by the Assessee would be out of the interest-free funds available with the Assessee - the Tribunal had erred in dismissing the Appeal – Decided against Revenue.

Broken period interest – Allowable as deduction or not – Held that:- There was no infirmity in the orders passed by the CIT (A) or the Tribunal – Tribunal have merely followed the judgment of the Court in the case of American Express International Banking Corporation v/s Commissioner of Income Tax [2002 (9) TMI 96 - BOMBAY High Court] – no substantial question of law arises for consideration – Decided against Revneue.