TMI Blog2001 (5) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... on an application made under section 256(2) of the Income-tax Act, 1961 (for short "the Act"), the Income-tax Appellate Tribunal, Delhi Bench "D" (for short "the Tribunal"), has referred the following question for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that no disallowance could be made out of the interest paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt years, i.e., 1976-77 and 1975-76, to the extent of Rs. 87,51,060 and Rs.1,15,97,286, respectively. Interest at 11 to 15 per cent. was paid to the depositors and banks. Accordingly, the Income-tax Officer brought to tax a sum of Rs.48,000 representing interest on the loans at 12 per cent. per annum. The assessee's stand that the amount had been advanced out of the sale proceeds and not out of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at when the assessee had paid interest to the depositors and the banks, there was no reason why it should have given money without interest to the subsidiary comply. We find that a finding of fact has been recorded by the Commissioner of Income-tax (Appeals) and the 'Tribunal to the effect that the advance to the subsidiary company came out of the sale proceeds and not out of the funds borrowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
