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TMI Blog1989 (2) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... wife of Shri Charat Ram who was a director of Madan Mohan Lal Shriram (P) Ltd. It is not disputed that Shri Charat Ram during the relevant period was a person having substantial interest in the company within the meaning of cl. (32) of s. 2 of the IT Act. The said company had advanced a loan of Rs. 2,97,000 to the assessee at the interest rate of 10.5 per cent per annum. The AO found that the creditor company was paying interest at 15 per cent per annum on the loans borrowed by it. The company had taken a loan from a bank at the interest rate of 16.5 per cent per annum. The assessee was required by the AO to explain as to why the benefit made a available to her by advancing loan at concessional rate of interest should not be regard as a 'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the record was that loans at 10.5 per cent had been advanced only to the employees of the company. It was not borne out by the records that loans at such lower rates were advanced to any person other than the employees of the company. The question of advancing loans to employees at interest rate of 10.5 per cent under s. 17(2) of the Act was clearly distinguishable from the question presently under consideration in as much as the provision of s. 17(2) relating to advancing of loans to one's employees at a concessional rate of interest has been enacted in pursuance of conscious legislative policy, and therefore, cannot be equated with the case in hand. It was further contended on behalf of the appellant that there was no material to show t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the losses brought forward from the earlier years under the head "capital gains". We feel that there is absolutely no merit in this contention of the assessee. The scheme of the Income-tax is very clear in this connection. The deductions under any section included in Chapter VI-A under the heading "C--Deductions in respect of certain incomes" (except s. 80M) can be allowed only in any income of the nature specified in the respective section which is included in the gross total income of the assessee. In other words, such deductions can be allowed only after gross total income has been computed. The computation made by the AO and the deductions allowed by him in the present case are clearly in conformity with the relevant provisions of IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of arrears tax and for this purpose the provisions of that chapter shall apply as if references to the assessee therein were references to the depositor. Now, the provision of s. 11 of the 1974 Act is omnibus in nature. This provision read with the provisions of sub-s. (4) of s. 14 creates a scheme and machinery for giving effect to the provisions of the 1974 Act. The machinery is more or loss the same as for the implementation of the IT Act. Since the compulsory deposit under the 1974 Act is deemed to be income-tax, the AAC, or, for that matter the CIT, shall exercise all powers of appeal in relation to the compulsory deposit as they do in relation to the income-tax. Order creating a demand for compulsory deposit tantamounts to creating d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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