1994 (3) TMI 65

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....HAR C. J.-The assessee is Messrs. Modi Pvt. Ltd. The assessment years involved are 1960-61 to 1963-64. The assessee, at the material time, was a private limited company incorporated on September 21, 1946. The assessee-company was appointed managing agent of a public limited company known as Western India Theatres Ltd., for a period of 20 years from September 26, 1946. Ordinarily, the managing agen....

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....ssee incurred interest payments as under: Assessment year Interest Rs. 1959-60 19,908 1960-61 25,520 1961-62 25,125 1962-63 21,198 1963-64 68,471 The assessee claimed that the interest payments were eligible for set-off against the managing agency commission either under section 10(1) or under section 10(2)(iii) or section 10(2)(xv) of the Indian Income-tax Act, 1922, or eq....

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.... for purchasing shares of Western India Theatres Ltd., of which the assessee was the managing agent. In respect of interest paid on monies borrowed to purchase the shares of Associated Bombay Cinema Pvt. Ltd., the Tribunal held that the claim of the assessee should be allowed under section 57(iii) of the Income-tax Act, 1961, since it could not be denied that the monies were borrowed for the purpo....

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....Theatres Ltd., the matter has been considered at length in the assessee's own case in Income-tax Reference No. 93 of 1965 by the Division Bench of Vimadalal and S. K. Desai JJ., in their judgment (per Desai J.) dated December 31, 1984. This judgment has been followed by the Tribunal and we do not see why we should take a different view. In respect of the interest paid on borrowings for the purp....