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2015 (2) TMI 326 - HC - Income TaxDisallowance of interest - for earning exempted income the interest paid cannot be allowed - Held that:- As such the dividends was earned on the shares which were purchased in earlier year. But apart from that whether the interest bearing funds have been used to make investment or not is a question of fact for which the tribunal is the ultimate fact finding authority thus holding that the Assessing Officer could not prove that the relevant investments were made out of interest bearing funds. We do not find any substantial question of law arise for consideration as sought to be canvassed. - Decided against revenue. Deferred revenue expenditure - expenditure of the term loan interest - ITAT deleted the addition - Held that:- CIT (Appeals) as well as the Tribunal for holding in favour of assessee has followed the decision of this Court in case of Core Healthcare Limited [2001 (4) TMI 46 - GUJARAT High Court] to be treated as revenue expenditure - Decided against revenue. Disallowance on account of interest on loans given to staff - CIT(A) deleted the addition - Held that:- Before dis-allowance of the interest or part thereof, it should be established that the material borrowed is utilized for non-business purpose. As no finding was recorded by AO, tribunal concurred with a view of CIT (Appeals) and did not find any case for interference.As such whether borrowed money for business is utilized for non-business purpose is an aspect relating to finding a fact for which the Tribunal is the ultimate fact finding authority. - Decided against revenue.
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