TMI Blog2009 (1) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... al, Madras "D" Bench, dated November 20, 2003, in I. T. A. Nos.1158/Mds/2001. The relevant assessment year is 1988-89. 2. The facts of this case are as follows : For the assessment year 1988-89, the assessee filed a return of income on April 20, 1988, declaring a loss of Rs. 4,72,580. The assessment was completed under section 143(3) and was reopened by issuance of notice under section 148, dated March 15, 1999. During the course of the assessment proceedings, it was found that the assessee has claimed interest liabilities to the Canara Bank, Bangalore, and the Syndicate Bank, Bangalore, as deductions, that these liabilities were not related to the business of the firm and that they were personal liabilities of the partners. As this was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrowed bank was always attached to the firm and not to the partners. Hence, the present appeal is filed by the Revenue questioning the correctness of the order passed by the Tribunal. 3. The appeal was admitted on the following substantial questions of law: "1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the interest liability of the assessee to the Canara Bank and Syndicate Bank was allowable for the assessment year 1988-89 ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that the claim of interest payment to the Canara Bank and the Syndicate Bank was allowable especially when the assessee on its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court held as follows (page 500): "We are of the considered view that none of the exceptions stated in the circular are applicable to the facts of the present case. The circular was stated to be issued by invoking the statutory power under section 119 of the Income-tax Act. The appeal is filed under section 260A of the Income-tax Act. It is well-settled principle of law that each and every provision of a statute has to be given the same importance. One provision cannot be elevated to a higher pedestal than the other provision, of course, unless or otherwise specifically stated either in the scheme, the Act or in the provision itself that a particular provision is subjected to or qualified by any other provision or the provision can be giv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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