1987 (11) TMI 15 - HC - Income Tax

Summary

The High Court of Andhra Pradesh considered four questions referred by the Income-tax Appellate Tribunal for the assessment year 1975-76. The court answered the questions based on previous decisions:
1. Stock written off by the assessee was not an allowable deduction.
2. Not applicable due to the answer to question 1.
3. Contribution to the welfare fund was deductible under section 37(1).
4. Interest due by the partners to the firm should be set off against interest paid by the firm under section 40(b) of the Income-tax Act, 1961. The court ruled in favor of the Revenue for questions 1 and 3, and in favor of the assessee for question 4.