1981 (9) TMI 65

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....as delivered by S. K. DESAI J.-In this reference, which is at the instance of the Commissioner of Income-tax and made by the Income-tax Appellate Tribunal Bombay Bench " D ", the following question of law stands referred to us : " Whether, on the facts and in the circumstances of the case, the Tribunal erred in allowing deduction of Rs. 21,117, being the interest paid by the assessee on the ....

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....y the assessee-company in the market. In the reference we are concerned with an amount of Rs. 21,117 paid as interest by the assessee to the Bank of Baroda. It was admitted before the ITO that the Thana project had not gone into production. The ITO accordingly held that the " intermediates " business had not yet started. Accordingly, the ITO disallowed the interest paid to the Bank of Baroda. T....