In Tax Appeal v. Hence The Appeal Is Dismissed

IN THE HIGH COURT OF JUDICATURE OF BOMBAYBENCH AT AURANGABAD TAX APPEAL NO. 65 OF 2010THE COMMISSIONER OF INCOME TAX AURANGABADVERSUSTULJABHAVANI SHETKARI SAHAKARI SAKHAR KARKHANA LTD ... ASG for Appellant : Shri Alok Sharma ... CORAM : D. G. KARNIK & S. B. DESHMUKH, JJ.Dated: March 02, 2012 ... PER COURT :- 1.Heard learned ASG for the appellant. He urges admission of an appeal on the following substantial questions of law:- “(1)Whether on facts and circumstances of the case, the Tribunal was justified in holding that the advances paid to the harvesting and transport contractors were in the nature of business advances ? (2)Whether on the facts and circumstances of the case, the Tribunal was justified in allowing interest on borrowed funds, which were utilized towards interest free advances for non business purpose ?" 2.In Tax Appeal No. 52 of 2010 ( The Commissioner of Income Tax Vs. PurnaSahakari Sakhar Karkhana Ltd.) vide our order dated 28.2.2012, we have held that the advances given to the harvesting and transport contractors are in the nature of business advances and interest paid on the borrowed amount for that purpose is in the nature of business expenditure and would have to be allowed as deductible business expenditure. Present matter is concluded by our decision in the aforesaid matter. No other issue is involved in this case. 3.Hence the appeal is dismissed. ( S. B. DESHMUKH, J. ) ( D. G. KARNIK, J. )...