1980 (9) TMI 26 - HC - Income Tax

Summary

The High Court of Madhya Pradesh allowed an application under section 256(2) of the Income Tax Act, 1961, directing the Appellate Tribunal to refer a question of law regarding deduction of interest paid on borrowed capital by a contractor to the court for its opinion. The Tribunal had previously held that the interest was not separately admissible when profit was computed on a net rate basis.