9911796707
TMI Blog1982 (7) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... rence under s. 256(1) of the I.T. Act, 1961. (hereinafter referred to as " the Act "), the I.T. Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion: " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in disallowing a part of the interest as not being deductible under section 36(1)(iii) of the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ister concerns made by the assessee and hence the assessee was not entitled to, claim a deduction of a part of the interest. On appeal, the AAC upheld the order passed by the ITO. On further appeal, the Tribunal held that disallowance of interest by the ITO to the extent of the amount advanced by the assessee to the three concerns was justified. Aggrieved by the order passed by the Tribunal, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances, the Tribunal was not justified in disallowing part of the interest paid by the assessee on the ground that the assessee had made advances to three concerns without charging any interest. In reply, Shri Mukati, learned counsel for the Department, contended that a part of the interest was disallowed because a part of the amount borrowed by the assessee was not for the purpose of the busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the capital borrowed by the assessee was not for the purpose of the business, cannot be considered because that is not the finding of the Tribunal. All that the Tribunal has found is that the assessee was not entitled to claim deduction in respect of a part of the interest, as the assessee had not charged interest to the three sister concerns, to whom advances were made. This ground cannot j ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
