1998 (3) TMI 13

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....AYASIMHA BABU J.-For the assessment years 1972-73 and 1973-74, the following two questions of law had been referred at the instance of the Revenue: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in deleting the disallowance of interest of Rs. 45,400 and Rs. 60,900 attributable to the borrowals diverted to Indian Express Newspapers (Bombay) Pvt. Ltd., thr....

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....e purpose of its business, but was, in fact, found to have been diverted, to its associated company at Bombay for a building of its own, such diversion having been effected through Ace Investments Ltd. equity capital. The assessee showed an investment of Rs. 10,00,000 and on the same day the amount was remitted by the subsidiary to the assessee's associated company at Bombay. It was found by the I....

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....er who had directed the Income-tax Officer to allow the petitioner's claim for deducting the provision made for gratuity subject to the production of a certificate by the assessee regarding the scientific basis of this provision. That order of the Tribunal is in accordance with the law laid down by the Supreme Court in the case of Shree Sajjan Mills Ltd. v. CIT [1985] 156 ITR 585. It was held by t....