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TMI Blog1980 (2) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... to this court under s. 256(1) of the I.T. Act at the instance of the Commissioner of Income-tax out of income-tax assessments of Shri Vinay Bharat Ram for the assessment years 1965-66, 1966-67 and 1967-68. The first question which is common to all the three years arises in the following circumstances: The assessee is one of the directors of the company known as Bharat Ram Charat Ram Pvt. Ltd. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , on the facts and in the circumstances of the case, the Tribunal was correct in holding that the premium paid by the assessee's employer in respect of insurance against accidents, riots and civil commotion and chartered flights of the assessee, was not a perquisite within the meaning of sub-section (2) of section 17 of the Income-tax Act, 1961, and was, therefore, not taxable ? " This question i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and for this purpose he borrowed moneys. He had to pay interest of Rs. 1,903 and Rs. 3,265 in respect of the moneys borrowed for this purpose. The above interest payments were claimed as deductions in the computation of the total income but the claim was rejected by the ITO and the AAC. The Appellate Tribunal, however, held that since the repayment of the annuity deposits was an item of income t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounts of expenditure laid out to derive income assessable under the head " other sources ". We are of the opinion that the interest paid by the assessee on moneys borrowed for the purpose of making annuity deposits was clearly expenditure laid out for the purpose of making or earning such income. We, therefore, answer this question also in the affirmative and against the Commissioner. The Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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