2006 (12) TMI 95

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ncome-tax, Meerut, seeks to direct the Income-tax Appellate Tribunal, Delhi (hereinafter referred to as "the Tribunal"), to draw a statement of the case and refer the following question of law for the opinion of this court: "Whether, on the facts and circumstances of the case, the learned Income-tax Appellate Tribunal was justified in deleting the disallowance of Rs. 4,65,539 made on account of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... here that the respondent-assessee had shown a sum of Rs. 5,84,000 as income from dividend in respect of the investment made by it in the shares of other companies and the respondent-assessee had paid a sum of Rs. 4,65,539 towards interest to the Hongkong and Sanghai Banking Corporation. The assessing authority had disallowed the claim of the interest on the ground that the amount of term loan was .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... an had not been utilised. Moreover, we find that in the memorandum and articles of association of the respondent-assessee, investment in shares was specified and the respondent-assessee under law could be treated to be doing business of investment in shares, therefore, the interest paid by it to the Hongkong and Shanghai Banking Corporation is allowable. Even otherwise it has been found that the r .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X