1976 (12) TMI 28

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..... year 1968-69 " was erroneous and prejudicial to the interests of the revenue inasmuch as he did not disallow the interest attributable to that part of the capital borrowed by the firm, which was not utilised for the purposes of the firm's business and advanced indirectly to two partners, Sarvashri Jugal Kishore and Roshan Lal, as investment in the properties ". The Commissioner of Income-tax issue .....

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..... of the revenue. The Tribunal also observed that the Commissioner had not given any reasons to justify his satisfaction that the order passed by the Income-tax Officer was prejudicial to the interests of the revenue. At the instance of the revenue, the following question has been referred to us for our opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was right .....

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..... ly was not the proper course to be adopted by him. It was necessary for the Commissioner to state in what manner he considered that the order of the Income-tax Officer was erroneous and prejudicial to the interests of the revenue and what the basis was for such a conclusion. After indicating his reasons for such a conclusion, it would certainly have been open to him to remand the matter to the Inc .....

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