The Commissioner Of Income Tax-1 v. M/S National Organic Chemical Industries Ltd

IN THE HIGH COURT OF JDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 4029 OF 2010 The Commissioner of Income Tax-1 Vs. m/s National Organic Chemical Industries Ltd. ...Appellant. ..Respondent Mr. Vimal Gupta for the Appellant. Mr. Ajit Shah with Shrihari M. Iyer for the Respondent. CORAM : J.P. DEVADHAR AND A.A. SAYED, JJ. DATE : 21ST JULY, 2011. P.C. 1.Two question of law are raised by the Revenue in this appeal, which reads thus: " (A) Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was justified in holding that there is no direct nexus between the borrowed funds and investments made by the Assessee Company and thereby directing the Assessing Officer to allow deduction u/s 80M without reducing interest attributable to the earning of dividend? (B)Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was right in allowing the expenditure of Rs. 55,37,898/- being expenses incidental to the assessment/fensibility of a project which was abandoned subsequently though such expenditure was clearly capital in nature?" 2.As regards first question (A) is concerned, learned Counsel for the parties state that the similar question raised in the assessee's own case being Tax Appeal No.3897 of 2010 has been rejected by this Court on 16th June, 2011. For the reasons stated therein, the first question (A) cannot be entertained. 3.As regards second question (B) is concerned, similar question raised by the Revenue in the assessee's own case being Income tax Appeal No. 3025 of 2009, CIT Vs. National Organic Chemical Industries Ltd. has been rejected on 6th July, 2010. For the reasons stated therein the second question (B) cannot be entertained. 4.Accordingly appeal is dismissed. ( A.A. SAYED, J. ) ( J.P. DEVADHAR , J.)