COMMISSIONER OF INCOME TAX Vs. GLENMARK PHARMACEAUTICAL LTD

JUDGEMENT

(1.) This appeal by the Revenue under Section 260A of the Income-tax Act (the Act) challenges the order dated 09.07.2008 of the: Income Tax Appellate Tribunal (the Tribunal) relating to the Assessment Year 2001-2002. Being aggrieved by the order dated 09.07.2008, the revenue has formulated the following questions of law for consideration by this court.

(2.) Question (a) is concerned with disallowance of expenditure under Section 14A of the Act. We find that the expenses disallowed by the Assessing Officer under Section 14A of the Act amounting to Rs. 17.26 lacs has been deleted in first appeal by CIT (A) to the extent of Rs. 13.65 lacs. The Tribunal in second appeal has deleted even the amount of Rs. 3.60 lacs disallowed by the CIT (A). Whether or not the particular expenses is incurred for earning exempt income is pure question of fact. The Tribunal has arrived at a finding of fact that no expenditure was incurred for earning the exempt income as the investment were made from its own funds and not borrowed funds. The revenue has not been able to show how the finding of fact arrived at by the Tribunal that no expenses were incurred to earn the dividend income is either arbitrary or perverse. In view of the finding of fact, question (a) does not raise any question of law and is therefore dismissed.

(3.) Brief Facts: