IN THE HIGH COURT OF DELHI AT NEW DELHI
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ITA 1269/2011
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CIT ..... Appellant
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Through Ms. Suruchi Aggarwal, Adv.
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versus
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TULIP STAR HOTELS LTD ..... Respondent
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Through Mr. V.N. Jha, Adv.
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CORAM:
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HON'BLE MR. JUSTICE SANJIV KHANNA
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HON'BLE MR. JUSTICE R.V.EASWAR
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O R D E R
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08.12.2011
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C.M.Nos.22133/2011 and 22134/2011
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These are applications for condonation of delay of 66 days in
filing of the appeal and 103 days in refiling of the appeal under Section
260 A of the Income Tax Act, 1961.
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Learned counsel for the respondent-assessee states that he has no objection if the delay are condoned. In view of the statement made, the
applications are allowed and the delay in filing and refiling of the
appeal are condoned.
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ITA 1269/2011
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The issue raised by the Revenue in the present appeal under Section
260A of the Income Tax Act, 1961 relates to disallowance of payment of
interest on the capital borrowed for subscribing to the equity share
capital of the subsidiary company. The stand of the Revenue is that the
interest paid or expenditure incurred was not for business purposes. The
present appeal relates to assessment year 2006-07.
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A similar question was raised by the Revenue for another assessment
year in an appeal under Section 260A of the Act, but the said appeal was
dismissed by the decision reported as CIT Vs. Tulip Star Hotesl Ltd.
(2011) 338 ITR 482.
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Following the reasoning given in the said order, we dismiss the
present appeal. No costs.
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SANJIV KHANNA, J.
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R.V.EASWAR, J.
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DECEMBER 08, 2011
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NA
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$ 11
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