1983 (1) TMI 50

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....TA J.-At the instance of the assessee, the following two questions are referred : " 1. Whether, on the facts and in the circumstances of the case, the claim of the assessee in respect of interest amounting to Rs. 7,517 is allowable under section 36(1)(iii) of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the payment of Rs. 1,000 as municipal taxes ....

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....of the years 1954-55 to 1958-59. Under the agreement, the assessee was liable to pay municipal taxes at the maximum rate of Rs. 200 per year, and the liability accrued every year. As the account books of the assessee were on mercantile basis and not on cash basis, the ITO allowed the claim of allowance to the tune of Rs. 200 only and disallowed the claim in respect of the earlier period. The AAC a....

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....Samachar Ltd.'s case, the admitted position was that the capital borrowed by the assessee from outsiders was used by the assessee for the purposes of the business and that no part of the borrowed capital had been utilised for the purposes of advancing loans to any component of the company. Moreover, the statement, annex. A, was not filed before the ITO. It is not possible to ascertain the facts me....