TMI Blog1989 (3) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... ence under section 256 (1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") the Income-tax Appellate Tribunal, Indore Bench, has referred the following questions of law to this court for its opinion : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the amounts received from the directors and shareholders of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by way of deposits and, hence, under the provisions of section 40A(8) of the Act, 15% of the interest paid to these persons deserved to be disallowed. The Income-tax Officer also reduced from the cost of the fixed assets of the assessee-company, the amount of capital subsidy received by it, for the purpose of allowing depreciation as per the provisions of section 43(1) of the Act. When the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal must be answered in the affirmative and against the Revenue. The Tribunal having found that interest was not paid by the assessee in respect of any deposit received by it, the Tribunal was right in holding that disallowance under the provisions of section 40A(8) of the Act was not called, for. The Tribunal was also right in holding, in view of the decision of this court in CIT v. Bhandari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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