TaxTMI 
TaxTMI 
1981 (1) TMI 136
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....eduction as claimed by the assessee. 2. The assessee is a registered firm carrying on the business of running a boarding house and lodging. The assessee subscribed for two chitties conducted by M/s. M. George Bros., Kozhencherry and bid the same in 1973 for an aggregate amount of Rs. 1,42,500. This money was introduced in the business of the assessee as per accounts. The premises where the busin....
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....iness for the current year. The claim was accordingly disallowed. 4. The assessee, in the appeal before the AAC, contended that the disallowance is improper. It was stated that when capital is borrowed the interest paid on such capital is allowed as a deduction and the sum of Rs. 35,929 being in the nature of interest, payment should have been allowed as a deduction. According to the assessee me....
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....he starting of a business or carrying on the business the assessee commenced contributing to chitty and, therefore, the AAC was wrong in holding that the chitty loss is an admissible deduction. It is also pointed out that the chitty loss cannot be treated as interest on loan or borrowed capital. In supporting the order of the AAC, the assessee's representative stated that the prize money on biddin....
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....idered the contentions on either side. We find the AAC has rightly allowed the claim of the assessee, and the ground of objection taken up by the Revenue must fail. The assessee has taken the premises on lease on 29th Dec.,1972 for the purpose of the business of running the boarding house and the lodging. Under the rental arrangement, the assessee had to make a returnable interest free deposit of ....