Case Law Details

Case Name : The Commissioner of Income Tax Vs. M/s. Joy Alukkas Traders (India) Pvt. Ltd. (Kerala High Court)
Appeal Number : ITA No. 18 of 2015
Date of Judgement/Order : 06/10/2017
Related Assessment Year :
Courts : All High Courts (3741) Kerala High Court (136)

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CIT Vs. M/s. Joy Alukkas Traders (India) Pvt. Ltd. (Kerala High Court)

The revenue is in appeal against the order passed by the Income Tax Appellate Tribunal in ITA No. 6 of 2013 concerning the assessment year 2007- 2008 whereby the Tribunal has set aside the addition made on account of dis allowance of notional interest. The question of law framed in this appeal for the consideration of this Court reads thus:

Whether on the facts and in the circumstances of the case the interest paid on money borrowed to bring into existence a show room (according to the revenue an income earning apparatus) is a revenue expenditure?

2. In the decision reported in Joy Alukkas India (P) Ltd. V Asst. Commissioner of Income Tax (2016) 282 CTR (Ker.) 551, this Court has already considered the assessment order passed in the case of the assessee herein for the assessment year 2007-2008 and held that the expenditure incurred by the assessee is revenue expenditure and answered the questions of law framed therein in favour of the assessee. The principle laid down in the aforesaid judgment has to govern the question of law framed for the consideration in this case as well.

Therefore, this appeal is disposed of, answering the question of law against the revenue and in favour of the assessee.

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