CIT Vs. MACHINO PLASTIC LTD

JUDGEMENT

(1.) THIS appeal by the Revenue under section 260A of the Income Tax Act, 1961 ('Act', for short) pertains to assessment year 2001-02. After hearing counsel for the parties, we frame the following substantial question of law :

(2.) THE assessee is a company and has made investment in equity shares, preference shares and bonds as per details given below :

(3.) THE tribunal in the impugned order has examined the factual matrix relating to acquisition/purchase of the equity shares mentioned at serial nos.1 to 3 and the investment in mutual funds. It has reached a categorical and a firm conclusion that the borrowed funds were not utilized for purchase of the equity share capital mentioned at serial nos.1 to 3 and the investment in the mutual funds. The aforesaid findings are findings of fact and we do not see any reason to go into the said aspects. However, we notice that the Assessing Officer, while making disallowance under section 14A, had observed as under: