1995 (7) TMI 34

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.... --- The Income-tax Appellate Tribunal has referred the following questions of law arising out of the order of the Tribunal dated March 20, 1986, in respect of the assessment year 1983-84 under section 256(1) of the Income-tax Act, 1961 : " 1. Whether the Tribunal was right in law in treating interest as income and as income from other sources ? 2. Whether the Tribunal was right in law in no....

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.... an appeal before the Commissioner of Income-tax (Appeals), the appellate authority observed that the interest income would be carried over and allowed to be reduced from the capital cost of the assets. The alternative contention that if it is treated as income then proportionate administrative expenses which were incurred as pre-operative expenses should be allowed as a deduction from the interes....

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....allocated to the various assets, even the claim under section 35D can be allowed only from the year in which the business commences. In the year, the business has not commenced and, therefore, the claim of the assessee cannot be entertained. " We have considered over the matter. It is an admitted position that the business activity was not carried on by the assessee and, therefore, the interest....