The assessee claimed that since he 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.
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.
5497 for the Assessment Years 1966 67 to 1969 70 respectively?
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.
The assessees father died on 7 7 1965.
These appeals by the Revenue are directed against the judgment of the Gujarat High Court dated 27 8 1980 in Income Tax Reference No.
The appeals relate to the Assessment Years 1966 67 to 1969 70.
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.
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 Income Tax Appellate Tribunal hereinafter referred to as the Tribunal .
When the assessee inherited the properties from his father, he was also required to 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 .
2,47,000 in respect of the borrowing from the Bank of India hereinafter referred to as the Bank by the assessees father.
Whether on the facts of the case, the Tribunal was right in law in holding that the assessee was number entitled to deductions of the interest payment of Rs.
On his death the assessee inherited various assets amounting to Rs.
251 of 1975.
The Tribunal referred the following questions for the opinion of the High Court.
By the impugned judgment the High Court has answered the said question in favour of he assessee and against the Revenue.
Rs 54,632, Rs.
12,38,000 and liabilities worth Rs.
20,435.
50,025 and Rs.
