Itxa/6976/2010 Of The Commissioner Of Income Tax - 2 Mumbai v. Vaman Prestresing Co Ltd

itxa6976-10 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.6976 OF 2010 The Commissioner of Income Tax-2, Mumbai ..Appellant. V/s. M/s. Vaman Prestressing Co. Ltd. ..Respondent. Mr. Suresh Kumar for the appellant. Mr.P.J.Pardiwala, senior Advocate with Atul K.Jasani for the respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ.DATED : 17TH DECEMBER, 2012 P.C. :- 1.Whether the ITAT was justified in confirming the order of the CIT(A) and deleting the disallowance of interest amounting to Rs.20,13,833/-, is the question raised in this appeal. 2.The assessment year involved herein is AY 2003-04. 3.In the assessment year in question, the assessing officer made a proportionate disallowance of interest on the ground that the assessee had utilized interest bearing funds for the purpose of advancing the amount of Rs.2.20 crores towards share application money without charging any interest and that the assessee failed to establish the nexus. The CIT(A) as well as the ITAT have held that the investments in the share application money were made for the purposes of the business of the assessee and that the said investments were made out of the assessee's own funds and not from the borrowed funds. Since the decision of the ITAT is based on finding of fact, we see no reason to entertain the appeal. Accordingly, the appeal is dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P. DEVADHAR, J.)