The Commissioner Of Income Tax-3 v. Apl International Ltd

ttm IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.4082 OF 2010 The Commissioner of Income Tax-3 .. Appellant Vs. APL International Ltd. .. Respondent. Mr.Vimal Gupta for the appellant Ms.Beena Pillai for the respondent CORAM: J.P. DEVADHAR & K.K. TATED, JJ.DATE: 27[th] SEPTEMBER, 2011. P.C. 1. The question of law raised by the Revenue in this appeal read thus: “Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in disallowing the deduction of interest cost and estimated managerial expenditure made by the Assessing Officer against the dividend income earned by the Assessee Company for the purpose of computation of deduction u/s.80M of the Income Tax Act? 2. The finding of fact recorded by the Tribunal in para 5 of the judgment is that the interest amount on borrowed funds debited to the Profit and Loss account were not at all attributable to the investments made in shares but were entirely attributable to the working capital loan, packing credit loan etc. The Tribunal has further recorded a finding of fact that the Assessing Officer has proceeded purely on assumption that borrowed funds have been utilized for making investment in shares and therefore, the disallowance made by the assessing officer cannot be sustained. Thus, the decision of the ITAT is based on finding of fact and no question of law arises from the order of the ITAT. 3. Accordingly, the appeal is dismissed. (J.P. DEVADHAR, J.) (K.K. TATED, J.)