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TMI Blog1985 (12) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... C, he relying on certain Tribunal's decisions in IT Appeal No. 701 (Chd.) of 1982, dated 19-9-1984 and IT Appeal Nos. 1011 and 1012 (Chd.) of 1979 accepted the assessee's appeal. 3. In those decisions, the Tribunal had actually relied on the Gujarat High Court decision in the case of CIT v. Sajjanraj Divanchand [1980] 126 ITR 654. But subsequently as the said decision was overruled by the Full Bench of the same High Court in the case of Chhotalal Co. v. CIT [1984] 150 ITR 276, the action of the AAC was reversed and the Tribunal had allowed the revenue's appeal on 23-2-1985. Subsequently because there was a Miscellaneous Petition No. 43 (Chd.) of 1985 from the assessee that this being a ticklish issue, the matter may be heard by the Divi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aws (Amendment) Act, 1984, had been considered as procedural and retrospective. 5. After taking into consideration the rival submissions and looking to the fact that it was the Gujarat High Court decision in Sajjanraj Divanchand's case which was relied upon by this Tribunal in its earlier decision in IT Appeal No. 701 (Chd.) of 1982 dated 19-9-1984 and yet earlier decisions which were followed there in IT Appeal Nos. 1011 and 1012 (Chd.) of 1979 dated 24-7-1981, and since the said decision stands overruled by a Full Bench in Chhotalal Co.'s case in which their Lordships observed that: "... it goes without saying that when he represents a HUF the interest paid to HUF has to be disallowed and not any interest paid to his individual acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... habad High Court's view...." Now, we reproduce herebelow the finding of their Lordships of the Andhra Pradesh High Court in this regard in N.T.R's Estate's case: "6. Having given our anxious consideration to the matter in dispute, we are inclined to follow the judgments of this Court in Vallamkonda Chinna Balaiah Chetty Co.'s case and Terla Veeraiah's case and of the Gujarat High Court and the Madras High Court, above referred. The facts obtaining in T. Veeraiah's case were distinguishable and this distinction was duty pointed out by this Court in Vallamkonda Chinna Balaiah Chetty Co.'s v. case. We consider that the present case is on all fours with the facts obtaining in the decisions of this Court in Vallamkonda Chinna Balaiah Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable to be added back under section 40(b). The above amendment to the statue is clear acceptance of the views expressed by this Court, the Gujarat High Court and the Madras High Court in the decisions above referred. It is true that Explanations 2 and 3 inserted by the Taxation Laws (Amendment) Act will be effective from the assessment year 1985-86. It is well to bear in mind that, in the statement of Objects and Reasons introducing the Taxation Laws (Amendment) Bill, 1984, it has been specifically mentioned that the amendments introduced in the Bill are intended mainly to streamline procedures in the interest of better work management, avoid inconvenience to taxpayers, reduce litigation, remove certain anomalies in and rationalise some of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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