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TMI Blog2022 (11) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that the assessee has incurred the same for business purpose - HELD THAT:- It is not in dispute that the EMD paid by the assessee has been received back with interest and the said interest has been offered to tax. It is also not in dispute that the assessee is in the business of Real Estate Development and the EMD amount was paid to acquire properties as a part of its business, which shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to consider three questions of law framed by the Revenue. After hearing Shri. E.I. Sanmathi, learned Standing Counsel for the Revenue and Shri. B.R. Sudheendra, learned Advocate for the assessee, in our view, the following question alone arises for consideration: Whether on the facts and in the circumstances of the case, the Tribunal and the CIT(A) are justified in holding that interest expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been offered to tax in the subsequent assessment years treating it as Revenue in nature. Therefore, Assessing Officer's view that the interest paid to the Bank on the borrowings ought to have been capitalized, was not justified because, no asset was acquired nor any asset came into existence and accordingly allowed the appeal. Revenue unsuccessfully challenged the same before the ITAT. Henc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poses of the business or profession: Provided that any amount of the interest paid, in respect of capital borrowed for acquisition of an asset for extension of existing business or profession (whether capitalized in the books of account or not); for any period beginning from the date on which the capital was borrowed for acquisition of the asset till the date on which such asset was first put ..... X X X X Extracts X X X X X X X X Extracts X X X X
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