1 itxa236-10 agk IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.236 OF 2010 The Commissioner of Income Tax - 5, Mumbai ..Appellant. Versus M/s.Pranik Shipping & Services Limited ..Respondent. Mr.Suresh Kumar for the appellant. Mr.P. Murlidharan iwth Mr.Balasaheb Yewale i/by Rajesh SHah & Co. for the respondent. CORAM : J.P. Devadhar & Mrs.Mridula Bhatkar, JJ. DATE : 17th January, 2011. P.C. : 1. The question of law raised in this appeal is, whether the Tribunal was justified in setting aside the order passed by the Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961. Perusal of the order of the Tribunal, particularly para-7 shows that the Tribunal has recorded a finding of fact that the assessing officer after detailed enquiry allowed the interest on term loan. The Tribunal has further recorded a finding of fact that the assessee following the mercantile system of accounting was entitled to claim interest expenditure accrued within the year irrespective of the fact that necessary entries have not been passed in the books of account. The Tribunal has held that the decision taken by the 2 itxa236-10 assessing officer cannot be said to be erroneous and, therefore, invocation of jurisdiction under Section 263 of the Act was uncalled for. 2. The decision of the Tribunal is based on finding of fact. No substantial question of law arises from the order of the Tribunal. The appeal is thus dismissed with no order as to costs. (Mrs.Mridula Bhatkar, J.) (J.P. Devadhar, J.)