2013 (2) TMI 626 - SCH - Income Tax

Interest on monies borrowed for setting up sugar plant assessee set up Ferro Alloys Plant in 1991 & sugar plant in 1995 - HC has 2008 (11) TMI 43 - HIGH COURT DELHI uphold the decision of Tribunal that there is a unity of control and management in respect of both plants and there is also intermingling of funds and dove-tailing of businesses - hence it cannot be said that the assessee had not commenced its business and hence interest would have to be capitalized - financial charges i.e. interest is allowable as deduction u/s 36(1)(iii) - Appeal against the Decision of HC dismissed by the apex court in view of the concurrent findings recorded by the courts below. - In favor of assessee.

Summary

The Supreme Court of India dismissed a civil appeal filed by the Department based on concurrent findings by lower courts. No costs were awarded. (2013 (2) TMI 626 - SC)