2012 (11) TMI 1168

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ent JUDGEMENT 1. Two questions of law raised by the Revenue in this appeal reads thus : a) Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the disallowance of ₹ 2,71,65,498/made by the Assessing Officer being interest paid on loans raised specifically to set up a new unit at Sisodra and for modernization of the wire rod mill p .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rowed capital under Section 36(1) (iii) by recording a finding that the borrowed capital was used in connection with the existing business of the assessee. In such a case, where there is no issue relating to depreciation is involved, the Apex Court in the case of Dy. Commissioner of Income tax V/s. Core Health Care Limited reported in (2008) 298 ITR 194 (S.C.) has held that explanation 8 to Sectio .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n the case of Brook Bond India Limited V/s. Commissioner of Income tax reported in 225 ITR 798 (S.C.) has held that the debentures when issued as convertible or nonconvertible is a loan allowable as revenue expenditure. Admittedly, the SLP filed by the Revenue against the said decision has been dismissed by the Apex Court on 11th August 2009. In this view of the matter, the second question raised .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X