- (1.) The only question on which the leave has been granted by this Court's order dated 31st August, 2007 is as follows: "When the assessee had itself capitalized the interest and other expenditure incurred towards creation assets. Whether the CIT(A) and the Tribunal were right and justified in allowing the assessee to claim the said expenditure as revenue expenditure without any just cause?"
(2.) Briefly stated, the facts of the present appeals are as follows: The respondent is a public limited company. For the assessment year 2000-01 it had incurred an expenditure of Rs. 3,37,84,348/- towards payment of interest on loans taken and other items for setting up the industry. Even though it had capitilized the said amount and claimed depreciation before the Asseessing Authority, however, in appeal, the respondent raised additional ground claiming deduction of the aforesaid amount on interest paid with some other expenditure on other items connected therewith as revenue expenditure.
(3.) The Commissioner of Income Tax (Appeals) vide order dated 5.3.2004 allowed the claim of the respondent-assessee only to the extent of interest amount of Rs. 2,92,45,670/- paid on loans taken by it for establishing the industry. He, however, disallowed the other expenditures, namely, financial charges, professional expenses, upfront fee etc.;