TMI Blog1994 (3) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... 1960-61 to 1963-64. The assessee, at the material time, was a private limited company incorporated on September 21, 1946. The assessee-company was appointed managing agent of a public limited company known as Western India Theatres Ltd., for a period of 20 years from September 26, 1946. Ordinarily, the managing agency agreement would have come to an end on September 26, 1966. However, by virtue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19,908 1960-61 25,520 1961-62 25,125 1962-63 21,198 1963-64 68,471 The assessee claimed that the interest payments were eligible for set-off against the managing agency commission either under section 10(1) or under section 10(2)(iii) or section 10(2)(xv) of the Indian Income-tax Act, 1922, or equivalent provisions of the Income-tax Act, 1961. Without prejudice, it was also claimed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agent. In respect of interest paid on monies borrowed to purchase the shares of Associated Bombay Cinema Pvt. Ltd., the Tribunal held that the claim of the assessee should be allowed under section 57(iii) of the Income-tax Act, 1961, since it could not be denied that the monies were borrowed for the purpose of purchasing shares from which the assessee expected to receive dividends. The Tribunal s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reference No. 93 of 1965 by the Division Bench of Vimadalal and S. K. Desai JJ., in their judgment (per Desai J.) dated December 31, 1984. This judgment has been followed by the Tribunal and we do not see why we should take a different view. In respect of the interest paid on borrowings for the purpose of acquiring the shares of Associated Bombay Cinemas Pvt. Ltd. also, we are in agreement with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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