The Commissioner Of Income Tax-1Mumbai v. M/S.thirumalai Chemicals Ltd.mumbai

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 17 OF 2011 The Commissioner of Income Tax-1Mumbai..Appellant versus M/s.Thirumalai Chemicals Ltd.Mumbai..Respondent -------- Mr. Vimal Gupta, Senior Counsel i/b Ms. Padma Diwakar for the Appellant. Mr.Hira Rai with Mr. Subhash Shetty for the Respondent. ............. CORAM : J.P. DEVADHAR & M.S.SANKLECHA, JJ. DATE : 16[th] October, 2012 P.C. : 1 The following question of law is raised by the Revenue in this appeal. “ Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in holding that interest expenses though capitalised in the books of accounts of the Assessee Company as such expenses related to the expansion of the business of the Assessee Company, is allowable under Section 36(1)(iii) of the Income Tax Act? “ 2The aforesaid question stands covered against the Revenue by the decision of the Apex Court in the case of DCIT v. Core Health Care Ltd. reported in (2008)298 ITR 194 (SC) and DCIT v. Gujrat Alkalies and Chemical Ltd. reported in (2008) 299 ITR 85 (SC). In this view of the matter, we see no reason to entertain the appeal. Accordingly, the appeal is dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P.DEVADHAR, J.)