COMMISSIONER OF INCOME TAX Vs. KAJAL EXPORTS
LAWS(GJH)-2014-1-126
HIGH COURT OF GUJARAT
Decided on January 23,2014

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Kajal Exports Respondents

JUDGEMENT

- (1.) Both the tax appeals (for the assessment year 2003-04 and the assessment year 2004-05) essentially concern identical question of fact and law and, hence, are decided by a common order. The facts and other details are taken for the purpose of adjudication from Tax Appeal No. 756 of 2013. Following is the substantial question of law raised for our consideration by the Revenue in Tax Appeal No. 756 of 2013 challenging the order of the Income-tax Appellate Tribunal ("the Tribunal" for short) dated April 18, 2013: Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in deleting the addition of interest of Rs. 87,35,694 by totally ignoring the facts that the borrowed funds were utilised by the assessee for non-business purpose and whether the finding of the Appellate Tribunal is perverse to this extent?
(2.) We have heard learned counsel Shri Manish Bhatt for the Revenue and Shri Bandish Soparkar for the assessee-respondent in both the matters.
(3.) The question pertains to the deletion of the addition of interest of Rs. 87,35,694 in the following factual background.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.