- Court
- Supreme Court of India
- Decided
- 8 February 2008
- Bench
- S. H. Kapadia, B. Sudershan Reddy
- Case no.
- Civil Appeal No. 2594 of 2006
- Result
- Appeal dismissed.
Headnote
Income Tax Act, 1961 ..... s. 36 (1) (iii)- Borrowing on capital assets not put to use in the concerned financial year-Interest paid on - Whether can be permitted as allowable deduction under the provision - Held: Yes.
Dy. Commnr. of Income Tax, Ahmedabad vs. Mis. Core Health Care Ltd. in Civil Appeal Nos. 3952-55 of 2002 decided by Supreme Court on 8.2.2008-relied on.
Headnote as published in the Digital Supreme Court Reports by the Supreme Court of India. Paragraph references point to the judgment below.
Judgment
KAPADIA, J. 1. 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 Section 36(1 )(iii) of the Income-tax Act, 1961 ?"
¶2Our 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. Mis. Core Health Care Ltd. in Civil Appeal Nos.3952-55 of 2002. ·
¶3Accordingly 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.
Case details
Arising from
CIVILAPPELLATE JURISDICTION : Civil Appeal No.2594 of 2006.
From the final Judgment and Order dated 19.10.2005 of the High Court of Gujarat atAhmedabad in Tax Appeal No. 529/ 2003.
Appearances
P. Vishwanatha Shetty, T. Srinivasa Murthy, Gaurav Agrawal and B.V. Balaram Das for the Appellant.
E.C. Agrawala for the Respondent.
Source: Supreme Court of India, Digital Supreme Court Reports, via the Indian Supreme Court Judgments open dataset (CC BY 4.0). Text was extracted from the official PDF and may contain conversion errors. Check the official PDF before relying on it.