Karnataka High Court
The Commissioner Of Income Tax vs M/S Motorala India Electronics Ltd on 20 August, 2008
Author: K.L.Manjunath
Bench: K.L.Manjunath
question of law stated. therein ane :0 allow' the appeal and set aside the Grdere eassee by the Income Tax Appellate tribunal, Bangalere, ie ITA Ne.3}3/Bamg/2361 éated 3G.O1.2GDé confirming_ the Qrder of the Appellate Cemmissioner and Confirm the Qrdez paased by the Joint Sommissioner of *Ifieeme Tax, TBS, Bangalore, etc. ' 'V'~" Thie ETA ccmimg en fer_Finai Hearinqx tile éay = Manjunath 3., eelivered the_fellewing:. ' ,. 3ueemeg§"= This appeal is by the feéeneef challenging the Qrder passed by the lncefie'Teifé§pellate Tribunal, Bangalore Eefiefi%3fi*llfieyeineftet.xeferred te es 'the Tr:bunalf~fde}ehSht}'fie;lfA*Nef313/Bang/ZQGE, dated 30.01.2684
*forltfieteeéeeeme§t year l99é--§7 raising the fellowi3g"substantie} questions of law:
V Vt"1} %hether the Tribunal was "._gor£é¢:"=_:n holding that the lean "_5cr§eged'.§y: the assessee from foreign "liendereftfihlch had not been reeaid §urifie*the cerrent assessment year, the fleetfiation less in currency on such Avberrewed capital can be determined at ltfie end of the year and claimed ae a revenue expenseiiose by the essessee?
2) Whether the Tribunal was eerrect in grantieg deduction under £5"
eagitaL:ueeset{W_we remand this matter is tee Court in E2007} 294 ITR £51 ifleihifi; Commissioee; ef Znceme~Tex Vs. Weedwerd Gevernor Indie _?gLte. Follewing the aferesaid Judgmeets, we have.te'r§ this matter to the Aeeeesinq Gffgeer te"ci§eify fine grant relief te the aeseesee oS;y ea rega;e.ta :he_ loan bexrewed as working capital einee t§e.revefiue is disputing that the ieeei was Vfeifiefl ey the essessee net eniy feefl the fegrecge efA eerking capital, but also £03'-ég§p3§grp§sé;e¢§ acquiring capital asset §afie Eso {fafeflas;'€E§__eep;:a; asset is ceecerned, t§ef,e5eeeeee"a§eVeentitled tee ciaim depreciate eee§£$e eaee §e"emt in ieeue. £3 the revenue ihee' eohfieededV_fihat' the eatixe loan is availee by gthe xaeeeseee oniy for acquiring the 1 Vésseeeiagi fiffieer eniy to ascertain. the extent of Eeafi éeveiieen fly 'the assessee for the purpose of V'working eapifai and te acquire capital asset and §*thereefteeete give relief to the assessee in regard 'x :5 _ihefl Kean availed fer the purpose of working '".eepifiei following the Judgment of the Hen'ble Delhi byfiigh Court in Weodware Governor indie P.Ltd. case. J' with the above obsarvatisn, this appeal ,is aliowed and remandefl to the Asgessing officer.T'V HV Ksm*