1988 (7) TMI 18

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....l expenditure incurred by the assessee as between the several heads of income and treating the appropriate portion thereof as expenditure against the dividend income and in modifying the assessment accordingly ?" The facts of the case are that the assessee formerly known as "Birds Investment Ltd.", is a limited company whose income was from interest on securities, business of purchase and sale of shares, dividends and interest, etc. The Income-tax Officer held that the interest paid and part of the other expenses which were claimed as a deduction against the business of purchase and sale of shares were attributable to the earning of dividend on shares of domestic companies. He, therefore, apportioned the expenses under different heads. T....

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....der the head "Profits and gains of business or profession". This question is now concluded by several decisions of this court. In the case of the very assessee for the assessment years 1963-64 to 1965-66, an identical question came up for consideration before this court in CIT v. Birds Investment (Anniversary Investment Agency) (I. T. References Nos. 365, 367 and 369 of 1971 (Cal)). There, this court answered the identical question in the affirmative and in favour of the assessee. The said decision was considered by this court in the case of CIT v. New India Investment Corpn. Ltd. [1978] 113 ITR 778. There, this court held as follows (at p. 784) : "In view of the law as laid down by the Supreme Court, it appears to us that th....