COMMISSIONER OF INCOME TAX Vs. RAASI CEMENT LIMITED

JUDGEMENT

(1.) This application is filed under section 256(2) of the Income-tax Act, 1961. The Revenue seeks a direction to the Income-tax Appellate Tribunal to refer the following question to this court for opinion, which is said to have arisen from the order of the Tribunal dated 10/07/1990, in R.A. No. 14/Hyd. of 1986 :

(2.) The amounts referred to in the question represent interest on borrowed capital. The Tribunal took the view that those amounts are capital receipts and cannot be added to the interest.

(3.) This question is covered by a judgment of the Division Bench of this court in CIT v. Nagarjuna Steels Ltd. [1988] 171 ITR 663 which is against the Revenue and in favour of the assessee. We, therefore, see no reason to direct the Tribunal to refer the said question. I.T.C. is, therefore, dismissed.