Supreme Court In Dy. Commissioner Of Income Tax v. Core Health Care Ltd. Reported In 251 Itr 61

considering the cause shown, delay condoned. Office to register the appeal. INCOME TAX APPEAL LODGING NO.2952 OF 2008 1. By consent, heard forthwith. 2. Revenue is in appeal on the following question. Assessee as such would not be entitled to claim deduction of interest under Section 36(1)(iii). Supreme Court in Dy. Commissioner of Income Tax Vs. Core Health Care Ltd. reported in 251 ITR 61. Rubber Industries (P) Ltd. reported in 236 ITR 471 (S.C.). 5.Section 36(1)(iii) before the proviso was addedread as under: "The deductions provided for in the followingclauses shall be allowed in respect of thematters dealt with therein, in computing theincome referred to in Section 28.... (iii) the amount of the interest paid in respect of capital borrowed for the purposes of the business or profession." 6. From the findings of the Assessing Officer itself,there is no dispute that the amount borrowed was usedfor the purpose of the business of the assessee. Oncethat be the case, in our opinion, considering thelanguage of the section itself, we find no error in theconclusion of law arrived at by CIT(A) and ITAT.7. For the aforesaid reasons, we find no merit in theappeal and therefore, the question of law as framed is answered in favour of the assessee and against the revenue. Appeal is disposed off accordingly. (R.S. MOHITE, J.) (F.I. REBELLED, J.)