TMI Blog1989 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case, the Tribunal was right in presuming that payments of the assessee-company's income-tax liability were made during the previous year out of its overdraft from the Chartered Bank when all the company's sale proceeds and receipts during the year covering its profits far in excess of such tax liability were being deposited in that overdraft account and as such in holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of income-tax. In the appeal before the Appellate Assistant Commissioner, it was pointed by the assessee that as against payments of Rs. 12,94,485 the net profits of the company were as much as Rs. 18,35,992. The overdraft account with the Chartered Bank was not utilised by the assessee for payment of taxes. The Appellate Assistant Commissioner observed : "The Income-tax Officer had faile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional loans. Without prejudice to this argument, it was also submitted that even if the interest was paid on money borrowed for payment of taxes, that should also be allowed as deduction. The Tribunal, however, allowed the appeal against the order of the Appellate Assistant Commissioner. So far as the first question is concerned, the principle of law has now been settled by a judgment of this cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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