1998 (11) TMI 21

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the following question of law for the opinion of this court which arose out of its order in Income-tax Appeal No. 1239/Ahd. of 1982 for the assessment year 1978-79 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in coming to the conclusion that the interest earned on the deposits was not liable to be assessed as income under the Income-tax Act, 1961 ?" As .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s affirmed by the Tribunal, allowing the deduction of interest paid on money borrowed thereby reducing the interest liability of the assessee for being capitalised. The question arising in this case is similar to one that arose in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT [1997] 227 ITR 172 before the Supreme Court. The Supreme Court held : "... the expenditure incurre .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ourt in the assessee's own case for the assessment year 1977-78 in Income-tax Reference No. 295 of 1983, decided on April 16, 1998 (CIT v. Petro-fils Co-operative Ltd. [2000] 241 ITR 139), had answered the like question against the assessee and in favour of the Revenue. In the aforesaid circumstances, the question referred to us in this case is also answered in the negative, in favour of the Rev .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X