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TMI Blog2017 (5) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... o the commencement of the project may not be treated as revenue expenditure and the same is to be treated as capital. In the facts and circumstances of the case the learned tribunal has rightly deleted the disallowance of expenditure - Decided in favour of assessee - TAX APPEAL NO. 263 of 2017 - - - Dated:- 28-4-2017 - MR. M.R. SHAH, AND MR. B.N. KARIA, JJ. For The Appellant : MR KM PARIKH, ADVOCATE ORAL ORDER (PER : HONOURABLE MR.JUSTICE M.R. SHAH) 1.00. Feeling aggrieved and dissatisfied with the impugned judgement and order passed by the learned Income Tax Appellate Tribunal dated 12/7/2016 passed in ITA No.1449/AHD/2015 for A.Y. 2011-12, the revenue has preferred the present appeal with the following proposed que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case and in law, the ITAT was justified in holding that in the present case, assessee has demonstrated that interest expenditure was incurred on earning interest income from partnership firm, without appreciating that the value of investment in M/s. Pratham Dosti realty of ₹ 48,42,28,240/-, exceeded the amount of borrowed capital of ₹ 25,20,87,838/-, and consequently the assessee was not fully entitled to setoff interest expenditure against interest income. Rather the assessee was entitled to set-off interest expenditure to the extent of borrowed capital utilized for making investment in M/s. Pratham Dosti Realty against interest income earned from M/s. Pratham Dosti Realty? (vi). Whether on the facts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was a new project, on which, the assessee did not earn any income and consequently, the expenditure incurred on new project would partake the character of prior period expenses,which was required to be capitalized and could not be categorized as revenue expenditure? 2.00. We have heard Mr.K.M. Parikh, learned counsel appearing on behalf of the revenue. 2.01. From the proposed questions of law, it appears to us that the proposed questions of law Nos.(ii) to (vii) can be said to be in the form of submissions and only the question No. (i) can be said to be substantial question of law. Hence, present appeal is admitted to consider the question No. (i), which reads as under :- (i). Whether on the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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