1978 (2) TMI 117

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....ience. 2. The assessee paid interest of Rs. 680 and Rs. 795 and Rs. 563 to Life Insurance Corporation in the asst. yrs. 1970-71, 1971-72 and 1972-73. These were claimed as allowable deductions and were also allowed by the ITO. Subsequently, it came to the notice of the ITO that the loan from the Life Insurance Corporation was raised by partner Shri G.S. Rastogi. The ITO was, therefore, of the v....

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....e Act. 4. Against the above findings of the AAC the Department has filed these appeals. The learned Departmental Representative submitted before us that the loan from the Life Insurance Corporation was taken by Shri Rastogi, that he had advanced the money to assessee and, therefore, the interest required to be disallowed under s. 40(b) of the Act. The counsel for the assessee, on the other hand....