TMI Blog2015 (2) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure - expenditure of the term loan interest - ITAT deleted the addition - Held that:- CIT (Appeals) as well as the Tribunal for holding in favour of assessee has followed the decision of this Court in case of Core Healthcare Limited [2001 (4) TMI 46 - GUJARAT High Court] to be treated as revenue expenditure - Decided against revenue. Disallowance on account of interest on loans given to staff - CIT(A) deleted the addition - Held that:- Before dis-allowance of the interest or part thereof, it should be established that the material borrowed is utilized for non-business purpose. As no finding was recorded by AO, tribunal concurred with a view of CIT (Appeals) and did not find any case for interference.As such whether borrowed money f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant investment is out of the interest bearing fund and, therefore, allowed the appeal of the assessee. The tribunal has observed thus; Paragraph 36: We have heard the rival contentions, perused the material on record. The undisputed fact is that the Assessee has received dividends on shares which have been claimed as exempt u/S. 10(33). The investment in shares have been made in FY 1996-97 and 1997-98. CIT (A) has given a finding that the Assessee was having interest free funds to the tune of ₹ 52.74 crores against the total investment of ₹ 11.34 crores and thus the interest free funds were in excess of the investments. He also noted that the AO has failed to establish nexus and prove that the interest bearing funds h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med as revenue expenditure while filing the return of income. CIT(A) deleted the addition made by the AO by relying on its decision in the preceding year, ITAT decision in the case of Core Health Care (Supra). The Ld. D.R. Before us could not controvert the above facts nor has brought any binding contrary decision in its support. In view of these facts, we uphold the action of CIT(A) and accordingly dismiss this ground of the Revenue. 6. The aforesaid shows that CIT (Appeals) as well as the Tribunal for holding in favour of assessee has followed the decision of this Court in case of Core Healthcare Limited (Supra). Under the circumstances, we do not find that such substantial question of law arise for consideration as sought to be canvas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no reason to interfere with the order of the CIT(A). We accordingly uphold the order of CIT(A) and dismiss this ground of the Revenue. 7. As such the aforesaid shows that before dis-allowance of the interest or part thereof, it should be established that the material borrowed is utilized for non-business purpose. As no finding was recorded by AO, tribunal concurred with a view of CIT (Appeals) and did not find any case for interference. 8. As such whether borrowed money for business is utilized for non-business purpose is an aspect relating to finding a fact for which the Tribunal is the ultimate fact finding authority. Under the circumstances, we do not find that any substantial question of law arise for consideration as sought to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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