TMI Blog2001 (2) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... interest received from the bank was income in assessee's hands - amount paid by the assessee as interest on the loan that he took from the bank did not reduce his income by way of interest on the fixed deposit by him in the bank - - - - - Dated:- 27-2-2001 - Judge(s) : S. P. BHARUCHA., N. SANTOSH HEGDE. and Y. K. SABHARWAL. Order BY THE COURT : The High Court of Kerala was called up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue is in appeal by special leave. 2. To take the facts of one of the two appeals before us as illustrative, the assessee had put moneys into fixed deposit with a bank and had earned in the assessment year in question interest in the sum of Rs. 1,17,444 thereon. On the security of the amount so deposited, the assessee took a loan from the bank and paid in respect of the loan interest to the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was that the real income of the assessee is only Rs. 27,034. It was not disputed, as it could not be, that if the assessee had taken a loan from another bank and paid interest thereon his real income would not diminish to the extent thereof. The only question then is : does it make any difference that he took the loan from the same bank in which he had placed the fixed deposit. There is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
