2007 (7) TMI 721 - HC - Income Tax

Disallowance of interest u/s. 36(1)(iii) - purchase of shares was mainly for acquiring controlling rights in another company - CIT(A) deleted addition - HELD THAT - Revenue fairly admits that similar question has been considered by this Court in the case of the very assessee in C.I.T. v. Akalu Holdings Pvt. Ltd. and the appeal was not admitted by the order. Following our earlier order in the aforesaid appeal no case is made out for admission of this appeal.

Summary

The Gujarat High Court, in a judgment by Chief Justice Y.R. Meena and Justice Akil Kureshi, considered an appeal regarding the disallowance of interest under section 36(1)(iii) by the Assessing Officer. The question posed was whether the appellate tribunal was correct in confirming the order deleting the disallowance based on the purpose of purchasing shares for acquiring controlling rights in another company. The court noted a previous decision involving the same assessee where a similar issue was addressed, and as no new grounds were presented, the appeal was dismissed at the admission stage.