1991 (12) TMI 39 - HC - Income Tax

Summary

The Bombay High Court, in a reference under section 256(1) of the Income Tax Act, 1961, addressed whether deductions claimed under section 37 for interest amounts levied under sections 220(2), 215, and 201(1A) were allowable for assessment year 1976-77. The court reaffirmed the consistent judicial position, citing precedents including Aruna Mills Ltd. [1957] 31 ITR 153 (Bom) and CIT v. Ghatkopar Estate and Finance Corporation (P) Ltd. [1989] 177 ITR 222 (Bom), holding such claims as "not allowable under section 37." The court noted no contrary decision exists and declined to delay the reference pending the Supreme Court's consideration of a related special leave petition. The court answered the question in the affirmative, confirming the rejection of the deduction claims.