Commissioner of Income Tax vs M/s. Steel Strips Ltd.

Rajive Bhalla, J.—Counsel for the appellant submits that controversy in the present petition can be disposed of in terms of order dated 15.1.2009 passed in ITA No. 20 of 2003 (Commissioner of Income Tax v. M/s. S.A. Builders Limited). Counsel for the respondent states that though controversy in the aforementioned case is identical but as it is based upon agreement between counsel for the parties, the matter may be decided separately.

We have heard counsel for the parties, perused the aforesaid judgment and after due appraisal of the facts of the present case, have no manner of doubt that controversy in the present appeal is identical to the controversy in the aforesaid case and would, therefore, require that a similar order is passed enabling the Income Tax Appellate Tribunal, Chandigarh to ascertain whether the assessee is entitled to deduction u/s 36(I)(iii) of the Income Tax Act, 1961 on the interest component in respect of capital borrowed, based upon parameters laid down in S.A. Builders Ltd. Vs. Commissioner of Income Tax (Appeals), Chandigarh and Another,

In view of what has been recorded hereinabove, the appeal is allowed; the impugned order is set aside to the limited extent of deduction claimed u/s 36(I)(iii) of the I.T. Act and remitted to the Income Tax Appellate Tribunal, Chandigarh to decide the matter afresh. Parties are directed to appear before the Income Tax Appellate Tribunal, Chandigarh on 9.9.2013.