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TMI Blog1996 (5) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the High Court. The Tribunal has referred the following question of law for answer by this court : "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the interest paid to Gwalior Agencies should be deducted from interest received from the joint account maintained with Gwalior Agencies and only the net interest should be brought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ively, on account of the debit balances existing in her name in the accounts of the aforesaid firm. It was stated by the Income-tax Officer that the assessee had made withdrawals from her account with Gwalior Agencies for making payment of income-tax, wealth-tax, C.D.S. and for business and non-business purposes. Thus, the Income-tax Officer disallowed an amount of Rs. 22,000 for both the years ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years, the departmental appeals were dismissed by the Tribunal. Thereafter an application was made by the Revenue for making a reference to this court. The application of the Revenue was rejected by the Tribunal. Hence, an application under section 256(2) of the Income-tax Act, 1961, was made to this court and this court called for a reference of the aforesaid question of law for answer by this co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circular No. 33-D(XXV-24) of 1965 of the Central Board of Direct Taxes broadly accords with this view in so far as the quantification of interest for purposes of section 40(b) is concerned." In the light of this decision of the Supreme Court, the view taken by the Tribunal is correct and we answer this reference in favour of the assessee and against the Revenue. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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