DCIT v. Core Health Care Ltd.

Tata Chemicals Ltd., Mumbai vs. Dy CIT 2 (3)(1), Mumbai

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary ()

…3,00,000/- in respect of interest expenditure:- an amount of a. by treating the same as capital expenditure for the acquiring controlling interest in the subsidiary companies, b. by not following the Supreme Court decision in the case of Core Health Care Ltd. 298 ITR 194) (SC) (2008); c. by observing that the said investment has no connection of business in the said investment in whatever manner; and d. The decision of the learned Dispute Resolution Panel, in para 24.3 in this regard is totally contrary to law and must be quashed. 5. Interest Income assessed as "Income from Other Sources": - Rs. 9,55,00,000 The l…

M/S. Suravi Infrastructure, Mumbai vs. Income Tax Officer Ward 23(3)(1), Mumbai

In the result the appeal filed by the assessee stands partly allowed

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…However, it is not undisputed by the authorities that the land was purchased for the purposes of business of the assessee. 8. Hon’ble Supreme Court in case of Challapalli Sugars Ltd. v. CIT reported in 98 ITR 167 and DCIT v. Core Health Care Ltd. reported in 298 ITR 194, has held that interest on borrowings used for acquisition of a capital asset is required to be capitalised up to the date of commencement of business; once business is 7 ITA No. 3702/Mum/2025; A.Y. 2018-19 M/s Suravi Infrastructure set up, such interest is deductible u/s 36(1)(iii) even if the asset so acquired has not yet been put to use. In th…

Nv Projects Private Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle 1(2)(2), Mumbai

In the result, appeal of the assessee is allowed and appeal of the

Bench: Shri Saktijit Dey, Hon'Ble & Shri Narendra Kumar Billaiya, Hon'Ble

…not be allowed as a revenue deduction under Section 36(1)(iii) of the Act is against the plain language of the provisions of the Act." 8. 1. This decision of the Hon'ble Gujarat High Court has been upheld by the Hon'ble Supreme Court in Core Health Care Ltd. 298 ITR 194 (SC). 9. The Hon'ble Supreme Court in the case of Eastern Investments Limited v. Commissioner of Income-tax (supra) had the occasion to consider a situation where the company agreed to reduce its share capital by ₹ 50 lakhs and the shareholder agreed to forgo cash payment and agreed instead to receive debentures of face value of ₹ 50 lakhs carryi…

DCIT-5(2)(1), Mumbai vs. N V Project Private Limited, Mumbai

In the result, appeal of the assessee is allowed and appeal of the

Bench: Shri Saktijit Dey, Hon'Ble & Shri Narendra Kumar Billaiya, Hon'Ble

…not be allowed as a revenue deduction under Section 36(1)(iii) of the Act is against the plain language of the provisions of the Act." 8. 1. This decision of the Hon'ble Gujarat High Court has been upheld by the Hon'ble Supreme Court in Core Health Care Ltd. 298 ITR 194 (SC). 9. The Hon'ble Supreme Court in the case of Eastern Investments Limited v. Commissioner of Income-tax (supra) had the occasion to consider a situation where the company agreed to reduce its share capital by ₹ 50 lakhs and the shareholder agreed to forgo cash payment and agreed instead to receive debentures of face value of ₹ 50 lakhs carryi…