2019 (1) TMI 41

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..... execute the projects awarded by the local authorities. AO was of the opinion that the interest on the funds borrowed for making such investments would not be an allowable expenditure. The Tribunal relied upon and referred to the judgment of CIT Vs. Spencer & Co. Ltd.[2014 (2) TMI 237 - MADRAS HIGH COURT] and held that the interest on the borrowed capital were investments in shares utilizing bor .....

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..... n its subsidiary companies are expenditure which are not disallowable under the provisions of Section 14A or 37 of the Act? 2. We notice that the Revenue has raised an additional question in these tax appeals, which reads as under : Whether in law and on the facts of the instant case, was the Tribunal justified in holding that the provisions of Section 14A and Section 37 are not applicabl .....

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..... investments in shares utilizing borrowed capital for strategic business purpose, was an allowable expenditure. Without so stating, the Tribunal was essentially applying the principles laid down by the Supreme Court in case of S.A. Builders Ltd. Vs. CIT, 288 ITR 01 . No question of law arises, therefore, in this respect. The appeal is, therefore, confined to only one question. 4. Mrs Patel, .....

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