1991 (9) TMI 97

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... it appears that the assessee had deposited certain amount in fixed deposits in respect of which the assessee was entitled to receive interest. The assessee took loans on the security of those fixed deposit receipts and utilised those loans for payment of income-tax. The interest on those loans came to Rs. 39,898. The assessee claimed deduction of said interest under section 80V of the Income-tax ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... had taken loan on his own money and used it and that such arrangement could not be called borrowings within the meaning of section 80V. 3. The assessee filed appeal before the Dy. CIT(A). It was submitted before him that the said point had been decided by the first appellate authority by order dated 23-11-1987. The Dy. CIT(A) followed his predecessor's order and directed the ITO to grant deduc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e not denied by the ITO. It is also not denied that the borrowing had been made for payment of tax due from the assessee. What the ITO states is that the assessee should not have arranged his affairs in such a way that he kept his other funds intact and made borrowing for payment of tax. The assessee is entitled to arrange his affair in a way which is most advantageous to him. What we have to see ....