Pr. Commissioner Of Income Tax 2 v. M/S. Indusind Bank Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYO.O.C.J.INCOME TAX APPEAL NO. 387 OF 2017 Pr. Commissioner of Income Tax 2 ..Appellant Versus M/s. Indusind Bank Ltd ..Respondent ................... •Mr. Suresh Kumar for the Appellant Mr. Sanjiv M. Shah for the Respondent ................... CORAM : AKIL KURESHI & SARANG V. KOTWAL, JJ. DATE : APRIL 22, 2019. P.C.: 1.This appeal is filed by the Revenue to challenge thejudgment of the Income Tax Appellate Tribunal, Mumbai (“theTribunal” for short) dated 13.4.2016. 2.Several questions are raised by the Revenue, however, these issues are merely remanded by the Tribunal before theAssessing OfÏcer. We, therefore, do not see any reason tointerfere in this respect, however, we may for clarification,notice that the Tribunal in the order impugned before us, hadmade an erroneous reference to its decision in case of HDFC Bank Ltd. This error was corrected by an order dated10.7.2018 and a correct reference to the assessee’s owncase for earlier assessment years has been made. Thiswould not change the complexion of the issues and thisdevelopment was noted only for complete the record. 3.The sole surviving question raised by the Revenuereads as under:- "Whether on the facts and in the circumstances of the case and inlaw, the Tribunal was correct in holding that the broken period interestis allowable as a deduction in spite of the Supreme Court decision incase of CIT Vs. Vijaya Bank (187 ITR 541) and the Rajasthan HighCourt decision in the case of Bank of Rajasthan (316 ITR 391)?" 4.It appears that the assessee had purchased securitieson which certain interest was paid. The Revenue argued thatthe entire cost of security would include such interestcomponent and the same would, therefore, be in the natureof capital expenditure. The assessee, however, argued thatthere was separate interest component payment of whichwas an allowable deduction. The Tribunal having acceptedthe assessee’s contention, the Revenue is in the appealbefore us. This issue is no longer res integra. The Division Bench of this Court in case of CIT Vs. HDFC Bank Ltd[1] hadruled in favour of the assessee. We are informed that theappeal against such judgment of the High Court was alsodismissed by the Supreme Court. In the result, the IncomeTax Appeal is dismissed. [ SARANG V. KOTWAL, J. ] [ AKIL KURESHI, J ] 1[2014] 366 ITR 505 (Bom)