Gujarat High Court
Commissioner Of Income Tax -Iii vs Core Healthcare Ltd. Ltd. - Opponent(S) on 3 October, 2011
Author: Akil Kureshi
Bench: Akil Kureshi
TAXAP/1356/2010 1/3 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL No. 1356 of 2010
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COMMISSIONER OF INCOME TAX -III - Appellant(s)
Versus
CORE HEALTHCARE LTD. LTD. - Opponent(s)
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Appearance :
MRS MAUNA M BHATT for Appellant
MR SN SOPARKAR Sr Adv with Mrs SWATI SOPARKAR & BHOOMI THAKORE for
Opponent
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CORAM : HONOURABLE MR.JUSTICE AKIL KURESHI
and
HONOURABLE MS JUSTICE SONIA GOKANI
3rd October 2011
ORAL ORDER (Per : HONOURABLE MR.JUSTICE AKIL KURESHI)
Leave to amend.
Revenue is in appeal against the judgment of the Tribunal dated 22nd January 2010, raising following questions for our consideration :
[A] "Whether the Appellate Tribunal is right in law and on facts in deleting the disallowance of Rs. 65.94 Crores made on account of interest expenses ?' [B] "Whether the Appellate Tribunal is right in law and on facts in deleting the disallowance of Rs. 7,50,46,165/= made on account of pre-operative expenses ?"
[C] "Whether the Appellate Tribunal is right in law and on facts in deleting the disallowance of Rs. 1,81,33,208/= made on account of pre-operative expenses ?"
[D] "Whether the Appellate Tribunal is right in law HC-NIC Page 1 of 3 Created On Fri Jun 10 02:24:41 IST 2016 TAXAP/1356/2010 2/3 ORDER and on facts in deleting the disallowance of deduction u/s. 35D of the act amounting to Rs. 26,82,457/= ?"
Having heard learned counsel for the parties, we find that the first question was decided by the Tribunal against the Revenue by placing reliance on the decision of the Apex Court in case of Core Healthcare Limited, reported in 298 ITR 194. The issue pertains to deduction of interest under Section 36 (1)
(iii) of the Income Tax Act, 1961. The Tribunal relied on the said decision of the Apex Court rendered in case of this very assessee. Having perused order of the Tribunal and the decision of the Apex Court in case of Core Healthcare Limited [Supra], we find that the Tribunal had correctly applied the ratio of the said decision with respect to Question [A].
With respect to Questions [B] & [C], we notice that these issues came to be considered by this Court in case of this very assessee in a decision reported in 308 ITR 263. Subsequently, this Bench also had an occasion to deal with similar issues in case of this very assessee in Tax Appeal No. 284 of 2010. Such Appeals were on these issues not entertained by our Order dated 2nd August 2011. These questions are also, therefore, not required to be considered.
With respect to Question [D], counsel for the Revenue pointed out that such question has been considered by this Court in other Tax Appeals involving the present assessee. In HC-NIC Page 2 of 3 Created On Fri Jun 10 02:24:41 IST 2016 TAXAP/1356/2010 3/3 ORDER the result, Tax Appeal is admitted for consideration of Question [D] alone. To be heard with Tax Appeal No. 284 of 2010.
{Akil Kureshi, J.} {Ms. Sonia Gokani, J.} Prakash* HC-NIC Page 3 of 3 Created On Fri Jun 10 02:24:41 IST 2016