1989 (9) TMI 39

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....J. - This reference raises five questions. The first three questions are raised on the application of the Revenue and the fourth and fifth questions on the application of the assessee. The questions read thus : "(1) Whether, on the facts and in the circumstances of the case and in law, the Appellate Tribunal was justified, in holding that the deduction of borrowed monies and debts due by the as....

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....turns of income, was allowable as a deduction from the assessee's total income ? (5) Alternatively, whether, on the facts and in the circumstances of the case, the said sum of Rs. 28,395 was allowable as a loss on the commercial principles of computing profits ?" Counsel are agreed that the answer to be given to the first three questions is covered by the decision of this court in. CIT v. Ka....

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....urther appeal, by the Income-tax Appellate Tribunal. Before us, it was contended that the amount of Rs. 28,395 had been incurred in the course of carrying on of the assessee's business and towards that end. It was submitted that, consequent upon the late payment of tax, the assessee had to borrow less and the benefit of such lesser borrowing was reflected in the assessee's profits. It was also ....