SUPREME COURT OF INDIA
Vardhman Polytex Ltd.
v/s.
Commissioner of Income-tax
Civil appeal nos. 6438 and 6443 of 2012
SEPTEMBER 12, 2012
ORDER
1. Heard learned counsel on both sides.
Leave granted.
The question which arises for determination in these civil appeals filed by the assessee is as follows:
“Whether interest paid in respect of borrowings for acquisition of 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?”
This question has been answered in favour of the assessee in the case of Dy. CIT v. Core Health Care Ltd. [2008] 298 ITR 194 Consequently, the civil appeals filed by the assessee are allowed with no order as to costs.
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Also Read :-
Interest paid on the capital borrowed for the acquisition of an asset cannot be allowed as a revenue expenditure
NF
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