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The High Court of Madras addressed four questions regarding the assessment of the respondent's income for the year 1978-79. The court ruled in favor of the assessee for the first question, citing a previous case. However, for the second and third questions, the court ruled in favor of the Revenue based on a different case involving the same assessee. Regarding the fourth question, the court directed the Tribunal to consider the deduction claim for interest on a loan from the Tamil Nadu Government under section 37 of the Act.
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