TMI Blog2001 (3) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the following question has been referred for the opinion of this court under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), by the Income-tax Appellate Tribunal, Delhi Bench "B" (in short "the Tribunal") : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the sum of Rs.5,115 paid as interest along with instalment in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equired amount and possession was given on October 20, 1972. By a letter dated August 17, 1973, the Chandigarh Administration required the assessee to pay the first instalment of Rs.24,336.25 which comprised principal of Rs.16,180.84, interest of Rs.5,472.66 and ground rent of Rs.2,682.75. Thereafter the 2nd, 3rd, 4th and 5th instalments were required to be paid on 11th September of the years 1974 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the factory had also taken place. Therefore, the payment was held to be of capital nature. On being moved for reference, the question as set out above has been referred for the opinion. 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 pointed out that as has been analysed by the Tribunal, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt shall be ignored, and the actual cost thereof shall be taken to be twenty-five thousand rupees... Explanation 8.-For the removal of doubts, it is hereby declared that where any amount is paid or is payable as interest in connection with the acquisition of an asset, so much of such amount as is relatable to any period after such asset is first put to use shall not be included, and shall be de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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