| COURT: |
|
| CORAM: |
|
| SECTION(S): |
|
| GENRE: |
|
| CATCH WORDS: |
|
| COUNSEL: |
|
| DATE: |
(Date of pronouncement) |
| DATE: |
February 12, 2008 (Date of publication) |
| AY: |
|
| FILE: |
|
| CITATION: |
|
|
|
(i) Interest paid in respect of borrowings on capital assets not put to use in the concerned financial year are deductible under Section 36(1)(iii) of the Act;
(ii) Interest on all moneys borrowed for the purposes of business are deductible irrespective of whether the moneys are used for a revenue purpose or a capital purpose;
(iii) Explanation 8 to s. 43(1) has no application to s. 36(1)(iii);
(iv) The proviso to s. 36(1)(iii) operates prospectively;
(v) Challapalli Sugars 98 ITR 167 (SC) applies to a case where the business had not yet commenced.
Note: The judgement of the Full Bench in CIT vs. Vardhaman Polytex (P & H High Court) is impliedly overruled.
Related Posts:
- ACCT vs. Glaxo Smith Kline Consumer Health Care Limited (Supreme Court) A priori, we have no hesitation in taking the view that what this Court cannot do in exercise of its plenary powers under Article 142 of the Constitution, it is unfathomable as to how the High Court can take a different approach in the matter in reference to Article 226…
- Carestream Health Inc vs. DCIT (ITAT Mumbai) The ld DR vehemently argued that the percentage of shareholding remains the same because reduction of shares had happened for all shareholders. We find that the ld DR relied on para 24 of the judgement of Special Bench of Mumbai Tribunal in 133 ITD 1 supra to support his proposition.…
- DCIT vs. Pepsi Foods Ltd (Supreme Court) Judged by both these parameters, there can be no doubt that the third proviso to Section 254(2A) of the Income Tax Act, introduced by the Finance Act, 2008, would be both arbitrary and discriminatory and, therefore, liable to be struck down as offending Article 14 of the Constitution of India.…
- New Delhi Television Ltd vs. DCIT (Supreme Court) In our view the assessee disclosed all the primary facts necessary for assessment of its case to the assessing officer. What the revenue urges is that the assessee did not make a full and true disclosure of certain other facts. We are of the view that the assessee had disclosed…
- Rajasthan State Electricity Board vs. DCIT (Supreme Court) Taking a cue from Varghese case, we therefore, hold that Section 143(1-A) can only be invoked where it is found on facts that the lesser amount stated in the return filed by the assessee is a result of an attempt to evade tax lawfully payable by the assessee. The burden…
- Genpact India Private Limited vs. DCIT (Supreme Court) If the submission of the appellant is accepted and the concerned expression as stated hereinabove in Section 246(1)(a) or in Section 246A(1)(a) is to be considered as relatable to the liability of an assessee to be assessed under Section 143(3) as contended, there would be no appellate remedy in case…
Recent Comments