9911796707
TMI Blog2022 (11) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... HA APPELLANTS (BY SHRI. E.I. SANMATHI, ADVOCATE) RESPONDENT (BY SRI. SUDHEENDRA B.R., ADVOCATE) JUDGMENT P.S.DINESH KUMAR J., This appeal by the Revenue directed against the order dated 20.07.2018 passed in ITA No.2135/Bang/2017, has been admitted to consider three questions of law framed by the Revenue. After hearing Shri. E.I. Sanmathi, learned Standing Counsel for the Revenue and Shri. B. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of Rs.293.61 Crores for the purchase of asset and therefore, interest payable on the monies borrowed should have been capitalized or shown as 'Work in progress'. 3. On appeal, the CIT(A) held that the interest received on the EMD has been offered to tax in the subsequent assessment years treating it as Revenue in nature. Therefore, Assessing Officer's view that the interest pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28- (i) & (ii) ........ (iii) the amount of the interest paid in respect of capital borrowed for the purposes of the business or profession: Provided that any amount of the interest paid, in respect of capital borrowed for acquisition of an asset for extension of exi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et for extension of existing business. Therefore, assessee was entitled for the benefit under Section 36(1)(iii) of the IT Act.
9. In view of the above, we find no error in the impugned order and this appeal must fail. Hence, the following:
ORDER
(a) Appeal is dismissed.
(b) The question of law is answered in favour of the assessee and against the Revenue.
No costs. X X X X Extracts X X X X X X X X Extracts X X X X
|
