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TMI Blog1994 (3) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... GMENT The judgment of the court was delivered by R. K. ABICHANDANI J.-The Income-tax Appellate Tribunal, Ahmedabad Bench "B", has referred for the opinion of this court, the following questions under section 256(1) of the Income-tax Act, 1961: "1. Whether, on the facts and in the circumstances of the case having regard to the corporate nature of the assessee the entire expenditure of Rs. 25,159 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 and a deduction of Rs. 26,079 against the interest income for the year 1975-76. The Income-tax Officer allowed only a sum of Rs. 9,500 for the assessment year 1974-75 and a sum of Rs. 3,000 for the assessment year 1975-76 as deduction. On appeal, the Commissioner (Appeals) allowed an estimated deduction equivalent to 20 per cent. of the interest income derived by the company as a deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of earning the interest income. We, therefore, find no valid reason for taking a different view of the matter on this aspect and hence, we answer question No. 1 referred to us in the negative against the assessee and in favour of the Revenue. Question No. 2: The assessee had claimed set off of unabsorbed depreciation to the extent of the income available under the head "Interest" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this court is concerned. In the case of CIT v. Deepak Textile Industries Ltd. [1987] 168 ITR 773, the Division Bench of this High Court, speaking through Justice B. S. Kapadia, held categorically that (headnote): "On reading section 32(2) of the Act, it is clear that the purpose of the Legislature in introducing the legal fiction is to give the benefit of the unabsorbed depreciation in the follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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