1993 (9) TMI 14

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....instance of the assessee as well as the Revenue. The following three questions of law have been referred by the Income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961, to this court for opinion : At the instance of the assessee : " 1. Whether, on the facts and in the circumstances of the case, the claim of the company to deduct the sum of Rs. 5,31,138 paid as interest on ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g (India) Ltd. v. CIT [1993] 202 ITR 375. Following the above decision, we answer the second question referred to us in the negative, i.e., in favour of the assessee and against the Revenue. Counsel for the parties are also agreed that the third question at the instance of the Revenue is also covered by the decision of this court in the assessee's own case in Income-tax Reference No. 117 of 1980....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....loan amount has in fact been utilised not for the purchase of machinery for which it was intended but for the purchase of the shares in a foreign company " Gula N. S. ' Malaysia ' ". A similar claim has also been disallowed by the Income-tax Officer in the earlier years on the same ground. The Income-tax Officer, the Appellate Assistant Commissioner and the Tribunal all were of the opinion that t....