2013 (3) TMI 538

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....e jurisdiction of this Court under Section 256(2) of the Income Tax Act, 1961 (for short 'the Act') raising following substantial questions of law arising out of an order dated 31.03.1998 passed by the Income Tax Appellate Tribunal (for short "the Tribunal") in respect of assessment year 1991-92: "Whether on the facts and in the circumstances of the case, the ITAT was right in law in directing tha....

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....nd income rather than the entire interest paid during the year in question. In the first two months during the relevant assessment year i.e. April & May, 1990, the assessee purchased units worth Rs.40.74 crores i.e. purchases amounting to Rs.3.66 crores were made on 05.04.1990, 09.04.1990 and 30.04.1990; purchases amounting to Rs.7.11 crores were made on 02.05.1990, 20.05.1990 & 21.05.1990; and f....

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.... net dividend income. It is the said finding, which has been set aside by the Tribunal holding that the interest paid on the amount of investments leading to dividend income alone is required to be adjusted in terms of Section 57(iii) of the Act. Before this Court, learned counsel for the petitioner has argued that the assessee was maintaining Master Account i.e. all the receipts and the payments....

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....provision contemplates that any expenditure laid out or expended wholly and exclusively for the purpose of making or earning such income alone is liable to be deducted for determining the income from other sources. We have heard learned counsel for the parties and find no error in the order passed by the Tribunal. Though the assessee was maintaining Master Account, but the fact remains that the T....