TMI Blog1972 (1) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... gment of the court was delivered by V. RAMASWAMI J.-This is a reference under section 66(1) of the Income-tax Act, 1922, and the question that has been referred for our opinion is : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that there was no justification for disallowing interest payment of Rs. 12,413 for the assessment year 1960-61?" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand then there is no reason why the interest should not be deducted under section 10(2)(iii) of the Act. The reason given by the Income-tax Officer for disallowing this amount was that the interest charged on the lending was at a lower rate than that on the borrowing and that the lending was in favour of persons who were intimately connected with the assessee. This cannot be a ground for disall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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