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2002 (11) TMI 72 - HC - Income Tax"Whether, Tribunal was right in law and had sufficient materials to hold that the question of deduction of tax at source does not arise from the method of payment present in the case of assessee?" - we are of the considered view that there is absolutely no material, much less, sufficient material available for the Tribunal for regarding the payment of interest towards the sale price of timber. The conclusion arrived at by the Tribunal is based on presumption - Further we find that there is absolutely no evidence to show the nature of the transaction the assessee had with the foreign exporter. There are also no materials to indicate that the amount of interest paid to the Karur Vysya Bank had any connection or link with the interest debited to the profit and loss account of the assessee of a sum of Rs. 3,17,805 which the assessee owed to the collecting foreign banker. Hence, we are of the considered view that the Tribunal has committed a serious error in presuming that the Karur Vysya Bank has got reimbursement from the assessee of the bill amount along with interest due thereon for the payment which the bank made to the foreign exporter. - Hence, the question is answered in the negative against the assessee and in favour of the Revenue.
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