TaxTMI 
TaxTMI 
2017 (1) TMI 1706
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....llate Tribunal committed serious illegality and error of judgment in holding that the interest paid on the borrowings utilized for setting up a new unit of cement plant constituted revenue expenditure ignoring the fact and that the plant had not yet commenced production ? 2. Whether the findings of the Tribunal are perverse in upholding the order of the Commissioner of Income-tax (Appeals) by allowing interest of Rs. 13,16,39,997 under section 36(1)(iii), specifically when the interest was paid on borrowed capital to set up a new unit and also capitalized in the books of account ? 3. Whether the findings of the Tribunal are perverse in upholding the order of the Commissioner of Income-tax (Appeals) by allowing interest of Rs. 10,72,55,7....
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....in assessee's own case. The Income-tax Appellate Tribunal Jaipur in R. A. No.8-9/JP/96 dated February 24, 1997 has rejected the reference application of the Department filed for the assessment years 1990-91 and 1992-93 on this issue relying on the decision of the jurisdictional High Court in the case of Mangal Chand Tubes Pvt. Ltd. v. CIT [1994] 208 ITR 729 (Raj). On the basis of the above, the assessee submitted that no disallowances should be made on this account. The contention of the assessee has been examined and in the light of the decision cited supra, no further additions on account of depreciation, rent and repairs of the guest house are called for under section 37(4). In the tax audit report in form 3CD, the auditors have poin....
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....1997-98 and the liability had actually crystallised during the period relevant to the assessment year 1998-99. The same cannot be allowed and accordingly the claim of Rs. 3,41,240 is disallowed. The assessee has claimed deduction of Rs. 2,04,16,092 under section 43B in respect of interest paid to public financial institutions for the financial year 1993-94 out of the disallowed amount of deferred interest of Rs. 14,31,47,894 in the assessment year 1994-95. The interest relates to the borrowings obtained in respect of the new unit M/s. Neer-Shree Cement. It was contended by the assessee that such payment for the new unit in respect of the existing business was allowable deduction. This legal issue is pending before the Income-tax Appellate T....
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....IT v. Mangalam Cement Ltd., Kota, D. B. Income Tax Reference No. 10 of 1999 decided on October 17, 2002 [2004] 266 ITR 385 (Raj), where the issue was answered against the assessee and in favour of the Department. 5. In that view of the matter, the first issue will be governed by the decision of this court in D. B. Income Tax Reference No. 10 of 1999. Therefore, the issue No. 1 is answered in favour of the Department and against the assessee. 5.1 On second issue, as relied upon by the Tribunal in para 8, the decision of Tata Chemicals Ltd. v. Deputy CIT as confirmed by the Bombay High Court in CIT v. Tata Chemicals Ltd. [2002] 256 ITR 395 (Bom), against which SLP was dismissed, has held in para 8 as under (page 398) : 'As far as ....