2013 (12) TMI 1158

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....n 260A of the Income Tax Act, 1961 ("The Act") by the revenue challenges the order dated 7 March 2003 passed by the Income Tax Appellate Tribunal (Tribunal) in relation to Assessment Year 1990-91. 2. This appeal was admitted on 1 November 2004 on the following substantial questions of law:    (1) Whether on the facts and in the circumstances of the case and in law, the appellate tribun....

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....(2006) 283 ITR 374. 4. So far as question no.2 is concerned, the counsel for the assessee submits that the issue is covered in his favour by the decision of this Court in CIT v. Shri Bhogawati Sahakari Sakhar Karkhana Ltd. (supra). However, the same is not accepted by the counsel for the revenue. 5. The issue involved in question no.2 is whether interest payable on the deposit is allowable as an....

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....erest payable on refundable and nonrefundamble deposits as an expenditure from the income of the society. The learned counsel submits that even if the nonrefundable deposit is a deposit because it is to be converted into share capital of the members, the assessee has not shown that the amount of deposit is used by the assessee during the relevant year for the purposes of business of the society. I....