1979 (10) TMI 61 - HC - Income Tax

Summary

The High Court of Allahabad ruled on three questions regarding deductions under the Income-tax Act, 1961. The court held that payments for interest and damages were not allowable deductions, based on previous decisions. However, the court allowed the claim for guarantee commission as a business expenditure. The court ruled in favor of the department for questions 1 and 3, and in favor of the assessee for question 2. Each party will bear their own costs.