TMI Blog2015 (1) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... f assesse. - TAX APPEAL NO. 426 of 2007 With TAX APPEAL NO. 427 of 2007 TO TAX APPEAL NO. 428 of 2007 - - - Dated:- 18-12-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. FOR THE APPELLANT : MR MANISH J SHAH, ADVOCATE FOR THE RESPONDENT : MR KM PARIKH, ADVOCATE JUDGEMENT Per: K S Jhaveri: 1. By way of these Tax Appeals, the assessee has challenged the judgment and order passed by the Income Tax Appellate Tribunal in ITA No. 1707/Ahd/2001 for AY 1991-92, ITA No. 1013/Ahd/2002 for AY 1995-96 and ITA No. 1126/Ahd/2005 for AY 2001-02. 2. While admitting these Tax Appeals, this Court has framed the following substantial questions of law: Tax Appeal No. 426/2007 (1) Whether on the facts and in the circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been challenged by the assessee before the CIT(A), which came to be partly allowed. Against the said order of CIT(A), the Revenue has preferred appeal being ITA NO. 1707/Ahd/2001 and ITA No. 1013/Ahd/02 and the assessee has preferred appeal being ITA NO. 1126/Ahd/05 which were partly allowed by the Tribunal. Being aggrieved by the order of the Tribunal, the assessee has preferred all these Tax Appeals before this court. 4. We have heard the learned advocates appearing for the parties and considered the submissions. The Tribunal has in its order relied on the order dated 12th May, 2006 passed in ITA No. 735/Ahd/1999, which was carried by way of appeal before this Court which is reported in [2009] 313 ITR 244 (Guj) decided on August 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Court, therefore, took the view in the said decision that the assessee is entitled to claim interest paid on borrowed capital provided that the capital is used for business purpose irrespective of what may be the result of using the capital which the assessee has borrowed. Actual cost of an asset has no relevancy in relation to section 36(1)(iii) of the Act. Applying the ratio of the decision of the Supreme Court to the facts of the present case and considering that there is no dispute about the fact that the capital borrowed was used for the purpose of business and whether it is for the capital purpose or revenue purpose is immaterial while allowing deduction under Section 36(1)(iii) of the Act, the appeal of the appellant is require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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