1995 (8) TMI 24

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..... t, 1955, and the question is whether the sum of Rs. 5,61,542,50 paid as interest on loan borrowed by the assessee is allowable as deduction in computing the total agricultural income under section 5(e) of the Tamil Nadu Agricultural Income-tax Act (hereinafter referred to as "the Act") as contended by the assessee. The Tribunal has upheld the disallowance of the said sum by both the lower authorit .....

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..... med beyond the limits prescribed under section 5(k) of the Act. She also relied on the decisions reported in CIT v. Carborundum Universal Ltd. [1977] 110 ITR 621 (Mad) and Sakthi Estates v. State of Tamil Nadu [1990] 185 ITR 600 (Mad). We have considered the rival submissions. There is no dispute regarding the law to be applied since that is made clear in the abovesaid decisions in CIT v. Carbor .....

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..... ord "mostly" is also vague. So, necessarily the matter has to be remanded to the assessing authority and it is open to the assessee to furnish necessary proof regarding the abovesaid question. In the result, the orders of all the three authorities below are set aside and the matter is remanded to the assessing authority for fresh disposal in the light of the two decisions referred to above and t .....

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