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TMI Blog2013 (3) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... , ORAL ORDER (Per: HONOURABLE MS JUSTICE SONIA GOKANI) 1. Revenue has challenged the order of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 25.4.2008 proposing following question of law for our consideration:- "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allowing the interest paid in respect of capital borrowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It also held the project to be integrated venture with common administration for generating power. 5. When challenged by the Revenue before the Tribunal, it concurred with the findings of CIT(Appeals) and relying on the decision of the Apex Court in the case of Deputy Commissioner of Income-Tax vs. Core Health Care Ltd. reported in [2008] 298 ITR 194(SC). The Apex Court has dealt with this issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be read on its own terms. It is a code by itself. Section 36(1)(iii) is attracted when the assessee borrows the capital for the purpose of his business. It does not matter whether the capital is borrowed in order to acquire a revenue asset or a capital asset, because all that the section requires is that the assessee must borrow the capital for the purpose of his business. This dichotomy betwe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... borrowings made for the purposes of a running business, while the decision of the Supreme Court in Challapalli Sugars Ltd. [1975] 98 ITR 167 was given with reference to the borrowings which could not be treated as made for the purposes of business as no business had commenced in that case. Therefore, there is no inconsistency between the above decisions." 6. The Apex Court in the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for establishing the power plants and thereby for creating capital assets. 8. On having concurred with CIT (Appeals), the Tribunal found that there was no new business set up by the assessee and it was an integrated venture and therefore the issue has been correctly decided following the decision of the Apex Court. There is no other and further material that could be pointed out by the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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