9911796707
TMI Blog1996 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1961 (for short, "the Act"), for a direction to the Income-tax Appellate Tribunal to refer the following two questions of law to this court for its opinion : " (i) Whether, on the facts and in the circumstances of the case, the learned Tribunal is right in deleting the disallowance of interest of Rs. 80,915 relating to the advance of Rs. 12.25 lakhs which was not for the purpose of its own b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of mind, the assessee had either to allow the advance to be forfeited by the supplier or to transfer the order for the furnace to some other party. In order to minimise the loss, the assessee decided to transfer the order to Seth Hari Chand and Sons Private Ltd. which is said to be a sister concern of the assessee. In the return of income filed by the assessee for the relevant assessment year, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the purpose of making advance to the supplier was for the purpose of business since at the time of making the advance payment the assessee intended to put up the furnace for itself and, therefore, according to the Tribunal, the interest on the amount advanced was allowable as a deduction under section 36(1)(iii). The Tribunal while recording the aforesaid findings referred to the statement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion to that effect, is also being claimed. The inference to be drawn from those findings is, of course, a question of law. Having heard counsel for the parties and after perusing the orders of the Tribunal, we are of the opinion that the following two questions of law arise from the order dated October 28, 1993 : " (i) Whether, on the facts and in the circumstances of the case, the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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