Gujarat Court December 1973 Judgments

Padmavati Jaykrishna Vs. Commissioner of Income-tax, Gujarat

Court: Gujarat

Reported in: [1975]101ITR153(Guj)

T.U. Mehta, J. 1. The question which is involved in this reference is whether the applicant-assessee is entitled to claim deduction as regards the payment of interest to the extent of Rs. 10,279 against the 'income from others sources' under clause (iii) of section 57 of the Income-tax Act. 1961, which is hereinafter referred to as 'the Act'. The facts of the case show that the applicant-assessee derives income from other sources in the shape of interest and dividends. The assessment with which we are concerned in this reference is for the year 1966-67. During the course of the assessment, it was found that the applicant assessee had borrowed loan from the Estate of Harivallabhadas Kalidas. During the accounting period the amount of this loan was of Rs. 5,00,055. Interest paid on this amount during the accounting period was Rs. 26,986 should be allowed as permissible deduction under clause (iii) of section 57 of the Act which says that while computing the chargeable income under the he...