Mumbai Court May 1957 Judgments

Deputy Commissioner of Income Tax Vs. Mrs. Mayurika S. Poddar.

Court: Mumbai

Reported in: (1997)59TTJ(Mumbai)372

ORDERI. S. VERMA, J.M. :This appeal by the Revenue is directed against the order of the CIT(A), dt. 22nd March, 1990. The first ground taken in this appeal is as under :'On the facts and in the circumstances of the case and in law the learned CIT(A) erred in directing the AO to allow deduction of interest of Rs. 7,06,824 paid by the assessee abroad on the loan incurred for the purpose of Indian shares and debentures though tax on the same has not been deducted ignoring the specific provisions of s. 58(1)(a)(ii) and s. 21 in this regard.'2. We have heard the learned Departmental Representative as well as the learned assessees counsel. The learned Departmental Representative has submitted that the concessional rate of income-tax provided for non-residents has been prescribed after considering all the deductions allowable to such persons, i.e., in case of non-residents, expenses on account of interest, etc., are not allowable. He has further submitted that the having not deducted tax at s...