1993 (9) TMI 14

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....F J.--This is a cross-reference at the 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 t....

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....by the decision of this court in Caltex Oil Refining (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 asse....

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....sallowed by the Income-tax Officer as he found that the said 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 Assista....