Overruled precedent defeats interest deduction claim, as the Supreme Court reversal removed the Tribunal's legal basis.

A deduction for interest on a loan standing in the name of Smt. Shanti Devi was rejected because the Tribunal had relied on an earlier High Court precedent that no longer governed after being overruled by the Supreme Court. Once that precedent ceased to hold the field, the legal basis for allowing the deduction disappeared, and the claim could not be sustained. The question was therefore answered against the assessee and in favour of the Revenue.

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Issues: Whether the Tribunal was justified in allowing the assessee's claim for deduction of interest on the loan standing in the name of Smt. Shanti Devi.

Analysis: The Tribunal had relied on an earlier decision of the Court, but that decision had since been overruled by the Supreme Court. Once the earlier precedent ceased to hold the field, the basis on which the deduction had been allowed could not be sustained.

Conclusion: The question was answered in the negative, in favour of the Revenue and against the assessee.

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