1988 (4) TMI 29 - HC - Income Tax

Summary

The Revenue filed an application under section 256(2) of the Income-tax Act, 1961, requesting the Tribunal to refer a question of law regarding interest charged by the assessee. The controversy was whether the interest was simple or compound. The Tribunal accepted the assessee's claim of simple interest. The Revenue's argument was based on a document found at the assessee's premises indicating compound interest, but the Tribunal held that the presumption of compound interest was rebutted. The application was rejected as the issue was deemed a question of fact.