https://www.taxtmi.com/caselaws?id=35692 The High Court ruled in favor of the assessee, holding that the interest paid on the bank overdraft used for advance tax payment is an admissible deduction in computing business income. The court emphasized that payments made from accounts with mixed funds should be presumed to be made from profits if profits were sufficient to cover the payments, contrary to the Tribunal's decision. The court highlighted the statutory prohibition under Section 40(a)(ii) of the Income Tax Act, disallowing deductions for tax levied on profits or gains of business. en-us Thu, 12 Feb 1981 00:00:00 +0530 Tue, 16 Mar 2010 11:36:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35692 The High Court ruled in favor of the assessee, holding that the interest paid on the bank overdraft used for advance tax payment is an admissible deduction in computing business income. The court emphasized that payments made from accounts with mixed funds should be presumed to be made from profits if profits were sufficient to cover the payments, contrary to the Tribunal's decision. The court highlighted the statutory prohibition under Section 40(a)(ii) of the Income Tax Act, disallowing deductions for tax levied on profits or gains of business. Case-Laws Income Tax Thu, 12 Feb 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35692