TMI Blog2003 (7) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ontend that as the assets were not put in use, the amount of interest cannot be allowed as revenue expenditure - proviso, inserted to clause (iii) of sub-section (1) of section 36, w.e.f. April 1, 2004 - Assessee submits that the aforesaid proviso has no application in the present case, as it has been made effective from April 1, 2OO4. The year under consideration in the case in hand is the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed as revenue expenditure. In the appeal before the Commissioner of Income-tax (Appeals), the Commissioner of Income-tax (Appeals) affirmed the view taken by the Assessing Officer. In the appeal before the Tribunal, the Tribunal considered the provisions of section 36(1)(iii) of the Act and following the view taken by the Allahabad High Court in CIT v. Tarai Development Corporation Ltd. [1994] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the aforesaid amendment has no application. He further places reliance on the observations made by their Lordships of the Supreme Court in Veecumsees v. CIT [1996] 220 ITR 185. There is no dispute that the proviso, which has been inserted to clause (iii) of sub-section (1) of section 36 of the Act, has been made effective from April 1, 2004. In Veecumsees' case [1996] 220 ITR 185 their Lord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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