TMI Blog1998 (3) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and in the circumstances of the case, the Tribunal was justified in law in allowing interest on the loan taken from Grindlays Bank? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that coal mines business of the assessee-company constituted the same business and in that view of the matter in allowing the interest on loan from Grindlays B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is not only carrying on the activities of coal mining but also indulged in boring, etc., and they all constitute one and the same business. Therefore, whatever loan has been obtained, though for one line of business, if that is closed, even after closure of that business, the assessee's business continued and it carried on some other activities and the interest payable on the loans o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reservations for other activities of the assessee-company. The Commissioner has also inspected the cash book produced before him which shows the commonness of the funds concerned and also intermingling of the funds as well as the activities of the assessee-company. Therefore, in view of the said factual aspect and of the decision of the Supreme Court in the case of B.R. Ltd. v. V. P. Gupta, CIT [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. CIT [1996] 220 ITR 185, their Lordships of the Supreme Court observed at page 190 as under : "... the Tribunal was, in our view, right in concluding that such interest had to be treated as a deduction under section 36(1)(iii). The loans had been obtained for the purposes of the assessee's business. The fact that the particular part of the business for which the loans had been obtained had be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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