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2019 (11) TMI 315 - SC - Income TaxDeduction of interest u/s 36(1)(iii) - Installation of cell site towers amounted to ‘extension of existing business’ as stipulated in proviso to Section 36(1)(iii) - warranting proportionate disallowance of interest under that provision - HELD THAT:- The appellant has a licence for extending telecom services in certain Circles and the present issue arises from its activities in relation to the Circle of Rajasthan, Haryana, U.P.(East). As a result of the view taken by the High Court, the decision of the Tribunal rejecting the claim of the appellant would be final with respect to said Circle. As regards its activities pertaining to Mumbai Circle, the very same issue was answered by the Dispute Resolution Panel in favour of the appellant’s group companies. The decision rendered by the Dispute Resolution Panel-2, Mumbai on 21.09.2017 in respect of Objection No.101 has been placed on record. We had adjourned the matter on few occasions to enable the respondent to place material indicating whether the decision of the Dispute Resolution Panel was under challenge before any of the authorities but no such affidavit has been filed. In any case, in our considered view, Question ‘B’ raised by the Appellant is a substantial question meriting consideration and the High Court ought to have admitted the appeal even with respect to Question ‘B’. The appeal is therefore allowed and the order passed by the High Court is modified to the effect that in addition to the questions framed by the High Court for its consideration, Question ‘B’ shall also be considered by the High Court. We have considered the matter only from the perspective whether Question ‘B’ ought to be considered or not and we shall not be taken to have expressed any opinion on the merits of the submissions pertaining to said Question, which will be gone into independently.
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