2005 (3) TMI 38

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....rred the following questions of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for opinion of this court: "1. Whether, on the facts and in the circumstances of the case, the learned Tribunal was, in law, justified in holding that the claim of investment allowance is allowable? 2. Whether, on the facts and in the circumstances of the case and mate....

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....15 per cent, on the ground that it is against the provisions of the Companies (Acceptance of Deposits) Rules. Feeling aggrieved the respondent preferred an appeal before the Commissioner of Income-tax (Appeals) who had allowed the claim of investment allowance as also the entire amount of interest paid by the respondent on the deposits. While doing so the Commissioner of Income-tax (Appeals) has r....

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....ing is not entitled for investment allowance. Respectfully following the aforesaid decision we are of the considered opinion that the Tribunal was not justified in allowing the claim of investment allowance under section 32A of the Act. So far as disallowance of interest paid in excess of 15 per cent, on deposits are concerned, it may be mentioned here that the Commissioner of Income-tax (Ap....