1996 (2) TMI 49 - HC - Income Tax

Summary

The High Court of Madras upheld the decision of the Appellate Tribunal regarding the disallowance of interest paid under section 220(2) of the Income-tax Act. The court ruled that such interest cannot be considered as a deduction under section 37(1) as it is based on profits or gains. The appeal by the assessee was dismissed, citing various decisions from different High Courts in India. The court answered the referred question in the affirmative, against the assessee.