Supreme Court Of India
Assistant Commissioner Of Income Tax vs. Arvind Polycot Ltd.
Section 36(1)(iii)
S.H. Kapadia & B. Sudershan Reddy, JJ.
Civil Appeal No. 1182 of 2008
8th February, 2008
Counsel Appeared :
P. Vishwanatha Shetty with T. Srinivasa Murthy, Gaurav Agrawal & B.V. Balaram Das, for the Appellant : S. Ganesh with Amar Dave, Rustom B. Hathikhanawala, E.C. Agrawala, J.P. Shah, Manish Shah, Harish J. Jhaveri, Pardiwala, Jay Savla & Ms. Reena Bagga, for the Respondent
JUDGMENT
S.H. KAPADIA, J. :
Leave granted.
2. In this civil appeal filed by the Department the question of law arises for determination which question is as follows :
“Whether interest paid in respect of borrowings on capital assets not put to use in the concerned financial year can be permitted as allowable deduction under s. 36(1)(iii) of the IT Act, 1961 ?”
3. Our answer to the abovementioned question is squarely covered by our decision in favour of the assessee and against the Department in the case of Dy. CIT vs. Core Health Care Ltd. in Civil Appeal Nos. 3952-55 of 2002 [reported at (2008) 215 CTR (SC) 1—Ed.].
4. Accordingly the said question is answered in favour of assessee and against the Department. Consequently, the Department’s civil appeal is dismissed with no order as to costs.
[Citation : 299 ITR 12]
