Provision of sec 90(2) shall apply to the extent beneficial to the assessee

Last updated: 18 April 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
confirming the disallowance of interest of Rs. 32,30,685/-. The basis for the same, the reasons and also the working of the disallowance are in correct and improper.” By order dated 16.4.2009 the aforesaid ground of appeal was dismissed by the Tribunal. Similar ground was raised by the assessee in A.Y 2001-02 in ITA No.2775/M/2005. By the very same order dated 16/4/2009 the Tribunal dismissed the said ground also. The assessee preferred appeal being ITA No.467 of 2010 and 412 of 2010 before the Hon’ble Bombay High Court against the aforesaid order of the Tribunal in A.Y 2001-02 and 2002-03 respectively. By order dated 8/2/2011 for A.Y 2001-02 the Hon’ble High Court remanded the issue to the Tribunal for fresh consideration with the following observations. As regards first question is concerned, the Counsel that the decision of this Court in the case of CIT v/s. Amritaben R. Shah reported in 238 I1R 777, which has been relied by the Tribunal is distinguishable on facts. Counsel for appellant submits that in that case, there was no dispute that investments in shares were made for the purpose of acquiring controlling interest therein, whereas, in the present case, the investments have been made for earning dividend. This aspect of the matter has not been considered by the Tribunal

Citation :
Ultramarine & Pigments Limited,Thirumalai House, Plot No.101/102,Road No.29, Sion (E),Mumbai 400 022.PAN:AAACU0718Q (Appellant) Vs. The ACIT, Cir. 7(3),Aaykar Bhavan, MK Road,Mumbai – 20. (Respondent)