of Income Tax, Baroda Vs. Ishwar Bhuvan Hotels Ltd. Baroda  Insc 154 (8 February 2008)
Kapadia & B. Sudershan Reddy
APPEAL NO.2594 OF 2006 KAPADIA, J.
this civil appeal filed by the Department the question of law arises for
determination which question is as follows:
interest paid in respect of borrowings on capital assets not put to use in the
concerned financial year can be permitted as allowable deduction under Section
36(1)(iii) of the Income-tax Act, 1961?"
answer to the above-mentioned question is squarely covered by our decision in favour
of the assessee and against the Department in the case of Dy. Commr. of Income
Tax, Ahmedabad v. M/s. Core Health Care Ltd. in Civil Appeal Nos.3952-55 of
Accordingly the above question is answered in favour of assessee and against
the Department. Consequently the Department's civil appeal is dismissed with no
order as to cost.