The Commissioner Of Income Tax v. Narain K.agnani

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPLICATION NO.43 OF 1999 The Commissioner of Income Tax Vs.Narain K.Agnani ..Applicant ..Respondent Mr.P.S.Sahadevaa for the Applicant.Mr.Bharat Gandhi for the Respondent. P.C. CORAM :- DR.S.RADHAKRISHNAN &J.P.DEVADHAR,JJ. DATE : 27TH FEBRUARY,2007 1.Heard the learned Counsel for the parties. The above Application was filed seeking reference on the following substantial question of law: "Whether, on the facts and in thecircumstances of the case, the ITAT was rightin law in directing the Assessing Officer toallow interest paid on borrowed capital aspart of cost if it pertained to the periodprior to acquisition and as a revenueexpenditure thereafter and in furtherdirecting the Assessing Officer to allowinterest in both the situation as an allowablededuction?"2.We have perused the order of the Tribunaldated 13th July,1998 refusing to refer the same and inthe said order, the Tribunal had observed in paragraph-2 of its original order, which reads asunder:- 3. A perusal of the same indicates that the above question of law arises out of a finding of fact. In view thereof, the above application stands dismissed. (J.P.DEVADHAR,J.) (DR.S.RADHAKRISHNAN,J.) (DR.S.RADHAKRISHNAN,J.) (DR.S.RADHAKRISHNAN,J.)