To take the facts of one of the two appeals before us as illustrative, the assessee had put moneys into fixed deposit with a bank and had earned in the assessment year in question interest in the sum of Rs.
On the security of the amount so deposited, the assessee took a loan from the bank and paid in respect of the loan interest to the bank in the sum of Rs.
His companytention was rejected by the Income tax Officer and in first appeal.
The Revenue is in appeal by special leave.
1,17,444 thereon.
90,410.
27,034.
The High Court answered the questions as indicated above on the basis that the situation was one of mutuality.
