2008-VIL-67-SC-DT

Equivalent Citation: 2008 (2) SCC 474, 2009 AIR 505, [2008] 215 CTR 14

Supreme Court of India

Civil Appeal No. 2594 of 2006

Date: 08.02.2008

COMMISSIONER OF INCOME-TAX

Vs

ISHWAR BHUVAN HOTELS LTD.

BENCH

JUDGMENT.- S. H. KAPADIA, J. In this civil appeal filed by the Department the question of law arises for determination which question is as follows:

JUDGMENT

"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 Section 36(1)(iii) of the Income-tax  Act, 1961?"

2. Our answer to the above-mentioned  question is squarely covered by our decision in favour of the assessee and against  the Department in the case of Dy. Commr. of Income Tax,  Ahmedabad v. M/s. Core Health Care Ltd. in Civil Appeal Nos.3952-55 of 2002. 

3. Accordingly the above question is answered in favour of assessee and against the Department.  Consequently the Department's civil appeal is dismissed with no order as to cost.

 

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