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2015 (8) TMI 281 - HC - Income TaxDisallowance of interest on borrowed capital u/s 36(1)(iii) - ITAT confirming the order of the CIT(A) in directing to allow the claim - Held that:- It was not the case of the revenue that the finding of the Commissioner of Income Tax (Appeals) that the borrowed money was utilized for the purpose of business, is not correct and/or perverse. Similarly, in the present appeal challenging the impugned order of the Tribunal no ground challenging the factual finding of the activities has been urged in the appeal memo. It is not open to the revenue to urge investigation into facts which were not disputed by it before the Tribunal or even when the memo of appeal filed in 2008 in this Court. The jurisdiction under Section 260A of the Act is to entertain substantial questions of law arising in the case. In the present facts, both the Commissioner of Income Tax (Appeals) as well as the Tribunal, have reached a finding of fact that the interest was paid on amounts borrowed and used for the purposes of business. The issue stands covered by virtue of a decision of Core Health Club Ltd., (2008 (2) TMI 8 - SUPREME COURT OF INDIA ). The decision cited by Mr. Chhotaray in the case of Challapalli Sugars Ltd. (1974 (10) TMI 3 - SUPREME Court) would have no application to the present facts. In this case there is concurrent finding of fact that the amounts have been utilized in the carrying on business and one of the business carried out by the respondent-assessee was that of a Estate Agent. - Decided against revenue.
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