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2016 (10) TMI 1258 - ITAT KOLKATADisallowance u/s.36(1)(iii) - interest made on account of borrowed funds utilized for investment in subsidiary company - HELD THAT:- Equity shares of the subsidiary company i.e DIC Coatings India Ltd were acquired pursuant to sale of coating business by the assesse in terms of a scheme of arrangement approved by Hon’ble Calcutta High Court. CIT-A examined the facts of the order passed by the CIT-A for A.Y 2005-06 and found satisfied that the facts involved therein in the first appellate order for AY 2005-06 is one and same to the facts of case the year under consideration. Further, the CIT-A found that the assessee invested only in its wholly owned subsidiary DIC Coating lndia Limited which was acquired in 1997 in terms of the scheme approved by the Hon’ble High Court of Calcutta. Undisputedly, the Revenue did not carry the first appellate order for A.Y 2005-06 in appeal to the higher forums having jurisdiction. No infirmity in the order impugned before us and the said order passed by the CIT-A is justified in deleting the disallowance of interest made on account of borrowed funds u/s. 36(1)(iii) - Decided in favour of assessee.
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