IN THE HIGH COURT OF DELHI AT NEW DELHI 
 . 
 . 
         ITA 373/2006  
 . 
 . 
 . 
 . 
 COMMISSIONER OF INCOME TAX DEL      ..... Appellant 
 Through 
 Ms.Prem Lata Bansal,Advocate 
 . 
 versus 
 . 
 . 
 INDUSTRIAL FINANCE COPORATION       ..... Respondent 
 Through 
 Mr.Ajay Vohra, Advocate with Ms. 
 Kavita Jha, Advocate 
 . 
 CORAM: 
 HON'BLE MR. JUSTICE VIKRAMAJIT SEN 
 HON'BLE DR. JUSTICE S. MURALIDHAR 
 . 
 . 
 O R D E R 
                               06.10.2006 
 . 
 C.A.3877/2006 
 Allowed, subject to all just exceptions. 
 . 
 ITA No.373/2006 
 Admit. 
 The following questions of law are formulated for determination in 
 the present Appeal: 
 (a)Whether the ITAT was correct in law in allowing  the interest of Rs.9.43 
 crores paid by the assessee on borrowings made for construction of office 
 building holding the same as allowable under Section 36(1)(iii) of the Act? 
 . 
 ITA No.373/2006                                   Page 1 of 2 
 (b) Whether interest paid by the assessee was to be capitalized in view of 
 provisions of Explanation 8 to Section 43(1) or to be allowed as expenditure 
 under Section 36(1)(iii) of the Act? 
 In the facts of this case filing of paper books is dispensed with. 
 The Registry shall make a similar note in the connected ITA 
 No.695/2006. 
 List along with ITA No.695/2006. 
 . 
 . 
 VIKRAMAJIT SEN, J 
 . 
 . 
 . 
 S. MURALIDHAR, J 
 OCTOBER 06, 2006 
 NJ 
 . 
 ITA No.373/2006                                   Page 2 of 2 
 23