ASSTT. C.I.T. Vs. MIHIR METALS PVT. LTD.
HIGH COURT OF GUJARAT
Mihir Metals Pvt. Ltd.
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K.S. Jhaveri, J. -
(1.) BY way of this appeal, the appellant -revenue has challenged the order dated 16.06.2000 passed by the Income Tax Appellate Tribunal, Rajkot Bench [for short "the ITAT"] in ITA No. 188/Rjt/98, whereby the appeal filed by the assessee was partly allowed by the ITAT.
(2.) THE facts of this case are that the respondent -assessee had filed its return for the Assessment Year 1994 -95 on 22.12.1994 and declared total loss of Rs. 1,40,070/ -. The same is processed under Section 143(1)(a) of the Income Tax Act and the Assessing Officer passed his order 27.03.1997. Against the said order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), Rajkot. The CIT(A) vide order dated 31.03.1998 partly allowed the appeal filed by the assessee. Being aggrieved by the said order, the assessee again filed an appeal before the ITAT. The Tribunal vide impugned order dated 16.06.2000 partly allowed the appeal. Hence, this appeal is filed at the instance of the revenue. While admitting this appeal on 13.11.2000, the Court had formulated the following substantial questions of law: -
"Whether, the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 9,82,129/ - under Section 36(1)(iii) being the amount of interest paid by the assessee on the borrowing which amounts the assessee lent to another party with whom the assessee had business dealings -
(3.) LEARNED counsel for the appellant -revenue has contended that both the authorities namely the Commissioner of Income Tax as well as the ITAT have committed an error in deciding the matter. He submitted that the Tribunal has not properly appreciated the materials available on record. He, therefore, urged that the present appeal deserves to be allowed.;
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