1998 (11) TMI 21

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.... Bench "C", has referred the following question of law for the opinion of this court which arose out of its order in Income-tax Appeal No. 1239/Ahd. of 1982 for the assessment year 1978-79 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in coming to the conclusion that the interest earned on the deposits was not liable to be assessed as income under the Incom....

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....eal the said finding was affirmed by the Tribunal, allowing the deduction of interest paid on money borrowed thereby reducing the interest liability of the assessee for being capitalised. The question arising in this case is similar to one that arose in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT [1997] 227 ITR 172 before the Supreme Court. The Supreme Court held : "... th....