CIT vs. DELHI INDUSTRIES ENTERPRISES

ITA - 420 / 2012HC Delhi29 November 20128 pages
For Petitioner: N.P. SAHNI
AI SummaryDismissed

What did the High Court hold?

The High Court upheld the ITAT's decision that reassessment proceedings for certain assessment years were unwarranted. It also agreed with the ITAT's view that interest expenses on borrowed capital used for construction were deductible, finding the Tribunal's factual inferences reasonable.

What were the facts?

The Revenue challenged the ITAT's order concerning reassessment proceedings and the taxability of interest payments on borrowed capital for property construction. The assessee, a firm, had constructed a building using a bank loan and claimed deductions for interest expenses.

What were the issues?

The key issues were the validity of reassessment proceedings initiated by the Revenue and the allowability of deductions for interest on borrowed capital for property construction.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 143(3),Section 147,Section 148,Section 24(b),Section 45(4),Section 263

AI-generated summary — verify with the full judgment below

Page 1

* IN THE HIGH COURT OF DELHI AT NEW DELHI

Decided on 29.11.2012

+ ITA 392/2012, C.M. APPL. 11592/2012 & 11593/2012 + ITA 393/2012, C.M. APPL. 11594/2012 & 11595/2012 + ITA 403/2012, C.M. APPL. 11602/2012 & 11603/2012 + ITA 420/2012, C.M. APPL. 11630/2012 + ITA 428/2012, C.M. APPL. 12332/2012 & 12333/2012

CIT

..... Appellant Through : Sh. N.P. Sahni, Sr. Standing Counsel.

versus

DELHI INDUSTRIES & ENTERPRISES ..... Respondent Through : Sh. Salil Aggarwal, Sh. Anil Sharma, Advocates and Sh. Ravi Pratap Mall, Advocates CORAM: MR. JUSTICE S. RAVINDRA BHAT MR. JUSTICE R.V. EASWAR

MR. JUSTICE S.RAVINDRA BHAT (OPEN COURT)

1.

The Revenue claims to be aggrieved by the common order of the Income Tax Appellate Tribunal (ITAT) dated 31.10.2011 for the Assessment Years 2002-03 and ITA No. 2303/Del/2010 of the Revenue for the 2012:DHC:7104-DB Page 2

Assessment Year 2005-06. The question of law sought to be urged is as to

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →