9911796707
TMI Blog2016 (6) TMI 1395X X X X Extracts X X X X X X X X Extracts X X X X ..... wed in terms of the provisions contained in Section 36(1)(iii) of the Income Tax Act. In the appeals that were filed by the assessee before the Commissioner Income Tax (Appeals), Annexure B orders were passed, allowing the appeals. Revenue carried the matter in appeals before the Tribunal and by the impugned Annexure C orders, the Tribunal dismissed the appeals. It is in this context, these appeals are filed and the main question of law raised is whether the Tribunal was right in allowing the deduction under Section 36(1)(iii) of the Income Tax Act. 2. We heard the Senior Counsel for the Revenue and the learned counsel appearing for the assessee. 3. Learned counsel appearing for the assessee questioned the maintainability of these appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the assessee. 4. Section 36(1) of the Income Tax Act provides that, in computing the income referred to in Section 28 the deductions provided for in the various clauses of the said Section shall be allowed. One of the matters dealt with in Clause (iii) is the amount of interest paid in respect of capital borrowed for the purposes of the business or profession. This Section came up for consideration before this court, various other courts and the Apex Court. 5. In the judgment in CIT v. V.I.Baby and Co. 254 ITR 248 (Ker), a Division Bench of this court considered this provision and held that in a case where interest free advance was given by the assessee and deduction is claimed, the question to be considered is what is the benefit t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were urged by the assessee or examining whether the assessee had derived any benefit from the advances made or whether such advances were made on commercial expediency, the claim was disallowed merely referring to some judgments including the judgment in CIT v. V.I.Baby and Co. [254 ITR 248 (Ker)] and CIT v. Abhishek Industries Ltd. [286 ITR 1]. Insofar as the order that was passed by the Commissioner of Income Tax (Appeals) is concerned, in that order also, by merely making reference to the records produced by the assessee, the Commissioner has made certain factual assumptions without any basis and it is on such erroneous assumption that the Commissioner has set aside the order passed by the Assessing Officer. It is also seen from paragra ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
