2007 (3) TMI 162

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....ribunal was right in law in allowing the assessee's claim regarding interest due on sticky loans? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that deduction under section 36(1) (viii) of Income-tax. Act, 1961, should be allowed @ 40% of the total income before making deduction u/s 36 (1) (viii) itself? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in deleting the disallowance of Rs.29402/- representing contribution made by the assessee corporation towards the Provident Fund Act, 1925" 2. As far as questions No.1 and 2 are concerned, much facts are not required to be stated as learned counsel for the revenue....

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.... of Income-tax (Appeals), the assessee succeeded. The order of Commissioner of Income-tax (Appeals) was upheld by the Tribunal. While doing so both the authorities below had relied upon the order passed by it in the case of Haryana Financial Corporation. The status of that case is not readily available with the counsel for the revenue.  However, we have examined the case independently and are of the view that the opinion expressed by the Tribunal in the case is in conformity with law even though detailed discussion is not available on record. 5. Sections 30 to 36 of the Act provides for various deductions which are available while computing income from business and profession.  Section 37 is a general Section which provides for....

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.... CIT [1994] 209 ITR 993 wherein while referring to the judgment in High Land Produce Co. Ltd.'s case (supra) of the Kerala High Court, the proposition was summed up as under : "Considering the aforesaid judgments and the provisions of sections 30 to 36 and 37, it can be held that : (a) section 37 is required to be construed liberally; (b) section 37 is of general nature and it operates in a wide range covering all expenditure laid out or expended wholly and exclusively for the purposes of the business or profession, which expenditure is not capital in nature or personal expenses of the assessee; (c) it may take into account not only the day-to-day running expenses of a business but also the rationalisation of its administration ....