The Commissioner Of Income Tax-1 v. M/S.neo Pharma Pvt.ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.886 OF 2008 The Commissioner of Income Tax-1...Appellant vs. M/s.Neo Pharma Pvt.Ltd....Respondent.--- Mr.Sureshkumar, for appellant. --- CORAM: D.K.DESHMUKH & J.P.DEVADHAR, JJ. DATED:29[th] September,2008. P.C.:- 1.Two questions are raised in this Appeal. Asregards the first question is concerned, the factsare that the assessee had paid interest bearing fundsof Rs.3,12,50,000/- to Gautam Enterprises forpurchase of 25,000 sq.ft. built up area. As Gautam Enterprises failed to hand over the property, therewas dispute and the matter was referred toarbitration. There were five other parties who hadentered into similar transaction with GautamEnterprises. All these parties including theAssessee formed a partnership firm known as“Kamdhenu Constructions” for development of theproperty belonging to Gautam Enterprises. In theassessment year in question, the assessing officerdisallowed the interest on the amount advanced by theassessee to Gautam Enterprises by invoking Section14A of the Income Tax Act. The Tribunal has givenfinding of fact that the amount of Rs.3,12,50,000/-was advanced to Gautam Enterprises for purchase ofthe property, and therefore, the interest paid on thesaid amount was allowable. The finding of theTribunal is finding of fact. No question of lawarises. 2.As regards the question no.2 is concerned,the Tribunal has followed its earlier decision in thecase of assessee for the assessment year 1994-95 and1995-96. There is nothing on record to show that the revenue has challenged the correctness of the saiddecision. In this view of the matter, the secondquestion of law cannot be said to give rise tosubstantial question of law. Appeal is dismissed. (D.K.DESHMUKH, J.) (J.P.DEVADHAR, J.)