2014 (8) TMI 123

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....lla J.) :- 1. By this Income Tax Reference under section 256(1) of the Income Tax Act 1961. The Income Tax Appellate Tribunal (hereinafter referred to as "the Tribunal") has referred the following questions of law for the opinion of this Court :- "(A) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in allowing the assessee's claim of Rs. 5,07,247/- di....

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....ered that 15 % of the interest paid be disallowed under section 40A(8) of the Act. In Appeal, the CIT (Appeals) allowed the claim of the Assessee under section 80V of the Act and the same was also upheld by the Tribunal. Section 80V as it then stood, read as under :- "Deduction of Interest on moneys borrowed to pay taxes. 80V-- In computing the total income of an assessee, there shall be allowed ....

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....e uncontroverted even before us, we are of the view that the ratio of the judgment of this Court in Hindustan Cocoa Products Ltd. (supra) would sqaurely apply to the facts of the present case. Question (A) is therefore answered in the affirmative, i.e. against the Revenue and in favour of the Assessee. 4. Question (B) really arises on an interpreation of Rule 6D of the Income Tax Rules, 1962 whic....

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....hotel expenses and allowance. The Income Tax Officer computed the disallowance out of such expenditure under section 37(3) of the Act read with Rule 6D of the Income Tax Rules 1962. Whilst computing the amount of disallowance, the Income Tax Officer took into account the total expenditure incurred by each employee in each trip undertaken by him. The Assessee being aggrieved by this method of compu....