The Commissioner Of Income Tax, Panaji Goa v. Shri. Narayan Rajaram Bandekar

IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO. 3 OF 2013 THE COMMISSIONER OF INCOME TAX, PANAJI GOA Versus SHRI. NARAYAN RAJARAM BANDEKAR ... Appellant... Respondent Ms. Asha A. Dessai, Advocate for the appellant.Mr. Agnelo F. Diniz, Advocate for the respondent. P.C. -Coram:A. P. LAVANDE &U. V. BAKRE, JJ.-Date:10th April, 2013 Heard Advocate Ms. Dessai for the appellant and Advocate Mr.Diniz for the respondent. 2. By this appeal under Section 260-A of the Income Tax Act ('the Act' for short), the appellant takes exception to the order passedby Income Tax Appellate Tribunal ('ITAT' for short) in I.T. AppealNo.40 of 2012 by which the appeal preferred by the revenue againstthe order passed by the Commissioner of Income Tax, has beendismissed. 3. According to the appellant, the following substantial questionsof law arise in the present appeal : (i) Whether on the facts and in the circumstances of the case, theIncome Tax Appellate Tribunal was justified in holding that baddebts written off of Rs.82,21,280/- is allowable ? (ii) Whether on the facts and in the circumstances of the case, theIncome Tax Appellate Tribunal was justified in holding that priorperiod expenditure of Rs.1,09,82,382/- is an allowable expenditure ? 4. Insofar as the first substantial question of law is concerned, thesame is squarely covered against the revenue by the judgment of theApex Court in the case of T. R. F Limited Vs. Commissioner ofIncome Tax; (2010)323 ITR 397 (SC). 5. Insofar as second substantial question of law is concerned, inour considered view, the view taken by the Commissioner of IncomeTax which has been confirmed by ITAT cannot be faulted and boththe Commissioner of Income Tax as well as ITAT have rightlyplaced reliance upon Section 43B of the Act to allow deduction inrespect of the interest paid by the assessee. Therefore, in our view, nosubstantial question of law arises in the present appeal. Hence, theappeal is rejected. A. P. LAVANDE, J. SMA U. V. BAKRE, J.