1991 (2) TMI 99

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..... has stated the following question at the instance of the Revenue : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in upholding the order of the Appellate Assistant Commissioner in that the interest amounting to Rs. 15,642 was allowable as business expenditure ?" The assessee is a registered firm. It was engaged in the business of expanding of iron metal .....

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..... st cannot be given deduction out of the income derived from the metal unit. We are unable to agree. The assessee is one. He may have set up a new factory but the assessment is not made unit-wise but assessee-wise. There is no rule which compels him to include the said amount in the capital expenditure or to capitalise the same. He is entitled to deduct the said amount from out of his income. May .....

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..... cording to the memorandum of association of the assesseecompany, it was entitled to set up a new unit for manufacture of strawboard. In this case also, it is found by the Tribunal that the partnership deed empowered the partners to carry on any other business if they so desire. Accordingly, the question referred is answered in the affirmative, i.e., in favour of the assessee and against the Reve .....

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