2006 (2) TMI 659

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..... ether, the Income Tax Appellate Tribunal is right in law and on facts in allowing claim of deduction of interest u/s.57(iii) of the I.T. Act,1961 ignoring the requirement that for such allowance it is incumbent on the assessee to prove that the expenditure was laid out or expended wholly and exclusively for the purpose of the making or earning of such income? 2 Heard Mr.M.R.Bhatt, learned Seni .....

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..... see had made two fold claim : Firstly, that the acquisition of the shares was for the purpose of dealing in the shares, and secondly, in the alternative, the claim was for allowing the deduction under Section 57(iii) of the Act of the interest paid on the borrowings made for the purpose of investment. 4 The Tribunal has found as a matter of fact that the shares were acquired out of the borro .....

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..... rement for determining whether the investment of the borrowed funds was for the purpose of making or earning income has to be judged in light of the facts of the case available on record, and therefore the Tribunal has come to the conclusion, on facts, that so far as the assessee was concerned it had not made the acquisition for the purpose of obtaining control of the company but was an investment .....

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