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TMI Blog2014 (8) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... decision in Commissioner of Income Tax v/s AOROW India Ltd., reported in [1997 (7) TMI 92 - BOMBAY High Court] - the Assessee had incurred certain expenditure in connection with the travel of its employees including hotel expenses and allowance – ITO computed the disallowance out of expenditure u/s 37(3) of the Act r.w Rule 6D - the ITO took into account the total expenditure incurred by each employee in each trip undertaken by him - CIT (A) held that the disallowance under Rule 6D should be worked out by taking into consideration all the trips undertaken by the employee during the year together and not on the basis of each trip – Decided in favour of Revenue. - Income Tax Reference No. 242 of 1997 - - - Dated:- 1-8-2014 - S. C. Dharm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im of the Assessee under section 80V of the Act and the same was also upheld by the Tribunal. Section 80V as it then stood, read as under :- Deduction of Interest on moneys borrowed to pay taxes. 80V-- In computing the total income of an assessee, there shall be allowed by way of deduction any interest paid by him in the previous year on any money borrowed for the payment of any tax due from him under this Act. The Tribunal, being of the opinion that the aforesaid issue gave rise to a question of law, referred the same for the opinion of this Court. 3. We find that Question (A) referred for our opinion is squarely covered by a judgment of this Court in the case of Hindustan Cocoa Products Ltd. v/s Commissioner of Income Tax, reporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vel of its employees including hotel expenses and allowance. The Income Tax Officer computed the disallowance out of such expenditure under section 37(3) of the Act read with Rule 6D of the Income Tax Rules 1962. Whilst computing the amount of disallowance, the Income Tax Officer took into account the total expenditure incurred by each employee in each trip undertaken by him. The Assessee being aggrieved by this method of computation, preferred an Appeal to the CIT (Appeals). The CIT (Appeals) held that the disallowance under Rule 6D of the I.T. Rules 1962 should be worked out by taking into consideration all the trips (viz. the aggregate) undertaken by the employee during the year together and not on the basis of each trip. The CIT (Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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