Interest on debt capital borrowed from shareholders can not be disallowed as thin capitalization rules not in force

HIGH COURT OF BOMBAY Director of Income-tax, International Taxation-II, Mumbai versus Besix Kier Dabhol SA IT APPEAL NO. 776 OF 2011 AUGUST 30, 2012 ORDER 1. This appeal by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) challenges an order dated 10/11/2010 of the Income Tax Appellate Tribunal (hereinafter referred to as the “Tribunal”) in ITA No.4249/Mum./2007 relating to Assessment year 2002-03. 2. Being aggrieved, the revenue has formulated the following questions of law for the consideration by this ...