9911796707
TMI Blog1996 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... ---- This is a petition under section 256(2) of the Income-tax Act, 1961 (for short, "the Act"), for a direction to the Income-tax Appellate Tribunal to refer the following two questions of law to this court for its opinion : " (i) Whether, on the facts and in the circumstances of the case, the learned Tribunal is right in deleting the disallowance of interest of Rs. 80,915 relating to the advanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t may not be economically viable. As a result of this change of mind, the assessee had either to allow the advance to be forfeited by the supplier or to transfer the order for the furnace to some other party. In order to minimise the loss, the assessee decided to transfer the order to Seth Hari Chand and Sons Private Ltd. which is said to be a sister concern of the assessee. In the return of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose of making payment to the supplier. It was further held that the purpose of making advance to the supplier was for the purpose of business since at the time of making the advance payment the assessee intended to put up the furnace for itself and, therefore, according to the Tribunal, the interest on the amount advanced was allowable as a deduction under section 36(1)(iii). The Tribunal while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings too are sought to be challenged by the Revenue and a question to that effect, is also being claimed. The inference to be drawn from those findings is, of course, a question of law. Having heard counsel for the parties and after perusing the orders of the Tribunal, we are of the opinion that the following two questions of law arise from the order dated October 28, 1993 : " (i) Whether, on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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