1999 (12) TMI 15

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....al, Allahabad, has referred the following question stated to be of law and to arise out of its order dated September 28, 1981, passed in ITA No. 924 (All) of 1980 for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the interest on the amount of Rs. 2,80,000 at the same rate at which interest was paid by....

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....portionate interest calculated at the same rate at which the moneys had been borrowed from the banks and to determine this the Tribunal remitted the matter back to the Commissioner of Income-tax (Appeals). In the question as aforesaid, it is not in dispute that the interest proportionate to the interest-free advances made to the directors is disallowable. In fact it has been so held by this court ....