TMI Blog1997 (2) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 80K - Held, yes - - - - - Dated:- 26-2-1997 - S. C. AGRAWAL. and G. B. PATNAIK. JUDGMENT This appeal, by special leave, has been filed by the Revenue against the judgment of the Delhi High Court dated July 25, 1980, in I. T. C. No. 23 of 1980, whereby the High Court has dismissed the application filed by the Revenue under section 256(2) of the Income-tax Act, 1961, (hereinafter re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The Income-tax Officer disallowed the deduction to the extent of Rs. 51,612 out of the interest amount of Rs. 55,197 paid by the assessee but he permitted deduction of Rs. 18,516 under section 80K. The said order of the Income-tax Officer was upheld in appeal by the Appellate Assistant Commissioner but, on further appeal, the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on sought to be referred was only academic in nature. The application filed by the Revenue was, therefore, dismissed. While we are in agreement with the order of the High Court rejecting the application under section 256(2) of the Act, we find that the approach of the High Court has been influenced by the decision of this court in Cloth Traders Pvt. Ltd. v. Addl. CIT [1979] 118 ITR 243, which de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is necessary to determine the income in accordance with the other provisions of the Act, including section 56 read with section 57(iii) of the Act, and only thereafter the deduction under section 80K has to be made. On that view of the matter, the interest amount of Rs. 55,197 paid on the borrowings for the investment in shares had first to be deducted out of the dividend income of Rs. 62,160 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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