Assistant Commissioner of Income Tax, Ahmedabad v. Arvind Polycot Ltd.

KAPADIA, J. 1. Leave granted. B 2. In this civil appeal filed by the Department the question of law arises for determination which question is as follows: "Whether interest paid in respect of borrowings on capital assets not put to use in the concerned financial year can 1 c be permitted as allowable deduction under Section 36(1 )(iii) of the Income-tax Act, 1961 ?" 3. Our answer to the above-mentioned question is squarely ' covered by our decision in favour of the assessee and against the Department in the case of Dy. Commr. of Income Tax, D Ahmedabad v. Mis. Core Health Care Ltd. in Civil Appeal , Nos.3952-55 of 2002. 4. Accordingly the said question is answered in favour of assessee and against the Department. Consequently the • Department's civil appeal is dismissed with no order as to costs. E D.G. Appeal dismissed. 1