The assessee claimed that since lie has also paid interest to the bank on the overdraft account, the said amounts of interest which he had paid to the bank were required to be deducted from the gross receipts in order to companypute the real income earned by the assessee during the relevant assessment years for the purpose of income tax.
The Tribunal referred the following question for the opinion of the High Court page 305 Whether, on the facts of the case, the Tribunal was right in law in holding that the assessee was number entitled to deduction of the interest payments of Rs.
In order to meet his income tax liability the assessees father had, in his lifetime, borrowed certain amount from the bank and the said bank had granted overdraft facilities to the assessees father.
The dividend income which the assessee derived from the shares pledged with the bank was sought to be brought to tax during the assessment years companycerned.
5,497 for the assessment years 1966 67 to 1969 70 respectively ?
The appeals relate to the assessment years 1966 67 to 1969 70.
This claim of the assessee was turned down by the Income tax Officer as well as by the Appellate Assistant Commissioner and ultimately by the Tribunal.
When the assessee inherited the properties from his father, he was also required io meet the liability which had accrued out of inherited assets and he was obliged to pay interest to the bank on the amount outstanding in the overdraft account with the bank .
The amount that was advanced in the overdraft account was secured by the assessees father by pledging with the bank various shares which he was owning at the relevant time.
The assessees father died on July 7, 1965.
These appeals by the Revenue are directed against the judgment of the Gujarat High Court dated August 27, 1980, in Income tax Reference No, 2.51 of 1975 .
On his death the assessee inherited various assets amounting to Rs.
2,47,000 in respect of the borrowing from the Bank of India the bank by the assessees father.
By the impugned judgment the High Court has answered the said question in favour of the assessee and against the Revenue.
20,435, Rs.
54,632, Rs.
12,38,000 and liabilities worth Rs.
50,025 and Rs.
