TMI Blog2001 (4) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Act, 1961 (in short "the Act"), by the Income-tax Appellate Tribunal, Delhi Bench-D (in short "the Tribunal"): "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in deleting the disallowance of Rs.51,528 made by the Income-tax Officer, being the difference between 12 per cent., i.e., the rate of interest which was charged by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch advances and the disallowance was upheld finally by the Tribunal. For the assessment year in question, the Income-tax Officer (in short "the ITO") found that the assessee had paid interest at 16 per cent. on its borrowed funds. Therefore, the difference between the two figures, i.e., 12 per cent., the rate at which the assessee charged interest on advances made to three parties and 16 per cent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be reasonable. On being moved for reference the question as set out above has been referred for the opinion of this court. We have heard learned counsel for the Revenue. There is no appearance on behalf of the assessee in spite of notice. Learned counsel for the Revenue submitted that having held that part of the interest was disallowed for the immediate preceding assessment year, the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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