Income Tax Appellate Tribunal - Pune
Bilcare Limited, Pune vs Assessee on 4 November, 2010
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH 'A', PUNE
BEFORE SHRI SHAILENDRAKUMAR YADAV AND
SHRI D. KARUNAKARA RAO
ITA No. 718/PN/09 (Asst. Year 2006-07)
Bilcare Limited .... Appellant
Gat No. 1028 Shiroli,
Tal. Khed
Dist. Pune 410 505
PAN No. AABCB2242F
Vs.
Addl. CIT, .... Respondent
Circle-8,
Pune
Assessee by : Shri Nikhil Pathak
Revenue by : Shri Abhay Damle
ORDER
Per D. Karunakara Rao AM This is an appeal by the assessee against the order of the CIT(A)-III, Pune, for A.Y 2006-07 and the grounds raised in this appeal are as under:-
"1) The learned CIT(A) erred in confirming the disallowance of interest of Rs. 2,20,84,285/- without appreciating that the same was allowable as a revenue expenditure.
2) The learned CIT(A) erred in holding that the interest was capital in nature on the ground that the assessee had also capitalized the same in its books.
3) The learned CIT(A) failed to appreciate that-
a. The above interest was payable on the low cost loans taken for repayment of the earlier high cost loans and as these loans were not utilized for purchasing any new assets during the year, the interest of Rs. 2,20,84,285/- was rightly allowable as a revenue expenditure u/s. 36(1)(iii). b. The learned A.O had not proved any nexus that the interest bearing funds were utilized for acquisition of fixed assets and hence, the disallowance was not justified.
4) Without prejudice to the above grounds, the assessee submits that even assuming without admitting that the loans were utilized for acquisition of new assets during the year, the interest on such loans only till the date of installation of the assets could be capitalized and not the entire interest."
ITA No. 718/PN/09A.Y: 2006-07 Page 2 of 2
2. At the time of hearing, Ld. Counsel for the assessee Mr. Nikhil Pathak mentioned that instead of withdrawing the appeal, he prefer not to press the grounds raised in the appeal of the assessee. Considering no objection from the DR side, we are of the view that the appeal is dismissed as not pressed.
3. In the result, appeal of the assessee is dismissed.
Order pronounced in the open Court on 04th November, 2010.
Sd/- Sd/-
(SHAILENDRAKUMAR YADAV) (D.KARUNAKARA RAO)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Pune dated the 04th November, 2010
R
Copy of the order is forwarded to :
1. Assessee
2. ACIT, Ichalkaranji Circle, Ichalkaranji
3. CIT(A), Kolhapur
4. CIT-I, Kolhapur
5. D.R. ITAT 'B' Bench By order Assistant Registrar I.T.A.T Pune