TMI Blog1999 (2) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... ified in law in holding that the interest paid by the assessee on loans taken from the bank for the purchase of machinery, which was never used in the assessee's business, is an allowable deduction in computing the total income of the assessee - - - - - Dated:- 3-2-1999 - M. SRINIVASAN. and U. C. BANERJEE. JUDGMENT The respondent-assessee is a private limited company. The original assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Officer took the view that the assessee was not entitled to claim deduction for the interest paid by him in all the three assessment years. The assessment was reopened and fresh assessment orders were passed by the Income-tax Officer, rejecting the claim of deduction made by the assessee. That order was confirmed on appeal by the Appellate Assistant Commissioner and when the matter was taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 72-73 and 1973-74 ?" A similar application was filed for the year 1974-75. The High Court dismissed the applications by two separate orders. Both the orders are challenged in this appeal. We do not find any merit in this appeal. We find that the reasoning of the Tribunal is correct. Even though the machinery has not been actually used in the business at the time when the assessment was made, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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