COMMISSIONER OF INCOME TAX Vs. GUJARAT INFORMATICS LTD.

JUDGEMENT

(1.) As substantial question of law raised in both the Tax Appeals is common in respect of different assessment years, both the appeals are decided by a common judgment. The appellant has preferred the present Tax Appeals challenging the orders of the Income Tax Appellate Tribunal dated 09/11/2012 and 21/12/2012 respectively in Tax Appeal No. 502/2013 and Tax Appeal No. 503/2013 under section 260A of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') raising the following identical substantial question of law in each, for determination of this Court;

(2.) The brief facts necessary for the purpose of adjudicating these appeals are as follows;

(3.) When the matter was challenged before the CIT(A) it considered elaborately the government resolutions and considering the very issue held in favour of the assessee so far as section 37 is concerned. The CIT(A) of course was of the belief that section 36(1)(iii) was not applicable as there was no borrowing. It was further noted that the funds in question are part of the business, which has been utilized by the assessee, including parking by the M/s. Gujarat State Financial Services Ltd. with huge amount of interest.