The Commissioner Of Income Tax-10,Appellantmumbai v. M/S. Infrastructure Leasingrespondents& Financial Services Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPEAL No. 173 OF 2007 The Commissioner of Income Tax-10,AppellantMumbai. Vs. M/s. Infrastructure LeasingRespondents& Financial Services Ltd. Mkr. J. S. Saluja, for the Appellant. Mr. Atul Jasnani & P. C. Tripathi, for theRespondent. PC :- 1.The matter before the Tribunal was - Whetherthe interest on debenture bonds was chargeable asinterest. It is submitted that this question iscovered and concluded by the judgment of the SupremeCourt in the case of Commissioner of Income Tax Vs.Corporation Bank reported in [2007] 295 ITR (SC) 193,and as such the Revenue Appeal cannot be entertained. 2.The second question which is now reframed is -whether interest of Rs.76,96,74,525/- shown asinterest on these transactions was in fact an interest on loan transaction. This question, as rightly pointedby the learned counsel for the respondent, is a merelyquestion of fact and there is a positive finding ofthe authorities below including the Tribunal,observing that "once it has held by me that theappellant company had entered into genuine leasingtransaction and not in "loan transactions", there isno justification for inclusion of Rs.76,96,74,525 tothe chargeable interest." There is a finding that thetransaction was leasing transaction and not a loantransaction. Thereforefore, we feel that the secondquestion, reframed cannot be gone into. Appeal isaccordingly dismissed.