COMMISSIONER OF INCOME TAX Vs. SUZLON ENERGY LTD

JUDGEMENT

(1.) The Revenue is in appeal against the judgment of the Income-tax Appellate Tribunal, Ahmedabad ("the Tribunal" for short) dated September 21, 2012 (since Suzlon Energy Ltd. v. Deputy CIT,2012 20 ITR 391 (Ahd)), raising the following questions for our consideration :

(2.) Question (2) pertains to the disallowances made by the Assessing Officer under section 14A of the Act in respect of interest expenses incurred for investments made in subsidiaries and administrative expenses. The Commissioner of Income-tax (Appeals) deleted such disallowances, upon which, the Revenue approached the Tribunal. The Tribunal rejected Revenue's appeal, making the following observations (page 403 of 20 ITR (Trib) :

(3.) Question (3) pertains to disallowances of deduction under section 80-IB of the Act made by the Assessing Officer in respect of interest income on late recovery of sale proceeds from the debtors. The Tribunal confirmed the view of the Commissioner of Income-tax (Appeals). The assessee carried the matter in appeal. The Commissioner of Income-tax (Appeals) ruled in his favour. Upon which, the Revenue carried the issue in appeal before the Tribunal. The Tribunal dismissed the Revenue's appeal relying on the decision of this court in the case of Nirma Industries Ltd. v. Deputy CIT, 2006 283 ITR 402. The Tribunal held and observed as under (page 405 of 20 ITR (Trib)) :