TaxTMI 
TaxTMI 
1989 (3) TMI 17
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....his court : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in presuming that payments of the assessee-company's income-tax liability were made during the previous year out of its overdraft from the Chartered Bank when all the company's sale proceeds and receipts during the year covering its profits far in excess of such tax liability were being deposited i....
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....as really for the purpose of money borrowed for payment of income-tax. In the appeal before the Appellate Assistant Commissioner, it was pointed by the assessee that as against payments of Rs. 12,94,485 the net profits of the company were as much as Rs. 18,35,992. The overdraft account with the Chartered Bank was not utilised by the assessee for payment of taxes. The Appellate Assistant Commissio....
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....uts, the taxes had not been paid by taking additional loans. Without prejudice to this argument, it was also submitted that even if the interest was paid on money borrowed for payment of taxes, that should also be allowed as deduction. The Tribunal, however, allowed the appeal against the order of the Appellate Assistant Commissioner. So far as the first question is concerned, the principle of law....