The Commissioner Of Income Tax v. M/S.satellite Developers P.ltd

(-1-) IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.34 OF 2008 The Commissioner of Income tax....Appellant Vs. M/s.Satellite Developers P.Ltd...Respondent Mr. P.S. Sahadevan for the Appellant. Mr. Deepak Tratshawala with Prashant Ghelani i/b. Tanvi Gandhi & Satyen Vera for Respondent. CORAM: F.I.REBELLO&K.U. CHANDIWAL, JJ.DATED: 24TH JUNE 2008 CORAM: F.I. K.U. CHANDIWAL, JJ. DATED: 24TH JUNE 2008 P.C.: P.C.: . The Tribunal in para.22 of its order dated 15th May, 2007 has recorded a finding that the assessee has been following the method of treating interest expenditure as period cost in a consistent manner for all the assessment years in the past and for the subsequent assessment year as well and that its earlier assessment years the method adopted by the assessee has been accepted by the Department and for the subsequent assessment year 1996-97 the Tribunal had upheld the method followed by the assessee. 2. The learned Counsel for the respondent has also drawn our attention to the judgment of this Court in Commissioner of Income-tax vs. Lakhandwala Commissioner of Income-tax vs. LakhandwalaConstruction Inds. Ltd., 260 ITR,579 where this Construction Inds. Ltd., 260 ITR,579 Court has taken a view that where an assessee claims (-2-) deduction of interest paid on capital borrowed, all that the assessee has to show is that the capital which was borrowed was used for business purpose in the relevant year of account and it does not matter whether the capital was borrowed in order to acquire a revenue asset ora capital asset. 3. Considering that the method of accounting has been accepted by the Department for the previous accounting years the question of law as framed would not arise and consequently Appeal dismissed. (K.U.CHANDIWAL, J.) (F.I.REBELLO, J.) (K.U.CHANDIWAL, J.) (F.I.REBELLO, J.)