Commissioner Of Income Tax, Chandigarh-Ii v. M/S Steel Strips Ltd., Chandigarh

IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANAAT CHANDIGARH ITA No.468 of 2006 Date of decision: August 01, 2013. Commissioner of Income Tax, Chandigarh-II ... Appellant v. M/s Steel Strips Ltd., Chandigarh ... Respondent CORAM: HON'BLE MR. JUSTICE RAJIVE BHALLAHON'BLE MR. JUSTICE DR. BHARAT BHUSHAN PARSOON Present:Ms. Urvashi Dhugga, Advocate, for the appellant. Shri Alok Mittal, Advocate for the respondent. Rajive Bhalla, J. (Oral): Counsel for the appellant submits that controversy inthe present petition can be disposed of in terms of order dated15.1.2009 passed in ITA No.20 of 2003 (Commissioner of IncomeTax v. M/s S.A. Builders Limited). Counsel for the respondent states that thoughcontroversy in the aforementioned case is identical but as it isbased upon agreement between counsel for the parties, thematter may be decided separately. We have heard counsel for the parties, perused theaforesaid judgment and after due appraisal of the facts of thepresent case, have no manner of doubt that controversy in thepresent appeal is identical to the controversy in the aforesaid case and would, therefore, require that a similar order is passedenabling the Income Tax Appellate Tribunal, Chandigarh toascertain whether the assessee is entitled to deduction underSection 36(I)(iii) of the Income Tax Act, 1961 on the interestcomponent in respect of capital borrowed, based uponparameters laid down in M/s S.A. Builders Ltd. v. Commissioner ofIncome Tax (Appeals)and another (2007) 288 ITR 1. In view of what has been recorded hereinabove, theappeal is allowed; the impugned order is set aside to the limitedextent of deduction claimed under Section 36(I)(iii) of the I.T. Actand remitted to the Income Tax Appellate Tribunal, Chandigarh todecide the matter afresh. Parties are directed to appear before the Income TaxAppellate Tribunal, Chandigarh on 9.9.2013. [ Rajive Bhalla ] Judge August 01, 2013. kadyan [Dr. Bharat Bhushan Parsoon] Judge