Tribunal held that; assessee itself admitted that it was in activity of investment in group companies for acquiring controlling interest and such investment had been treated as long term investment in its financial statements. Statutory auditors of company reported that company was not engaged in carrying on any business or as part of its business activity of acquisition of shares except making long term investments. Accordingly  the AO and CIT(A) were right in treating activity carried out by assessee as investment activity and accordingly finance charges was not deductible u/s 36(1)(iii). (AY. 2003 – 2004)