Privy Council Cases

Commissioner of Income-tax, Gujarat I Vs. Rajkot Seeds, Oil and Bullio ...

Court : Gujarat

Reported in : [1975]101ITR748(Guj)

DIVAN C.J. - In this case, at the instance of revenue out of the following four questions the first three question and at the instance of the assessee the fourth question have been referred to us by the Tribunal for our opinion :'(1) Whether, from the facts and in the circumstances of the case, it can be held that the amount of Rs. 2,29,015 paid by the members of the association as deposits amounted to borrowed capital in the hands of the assessee-company ?(2) if so, whether the Tribunal was correct in holding that the house property in question was acquired by the assessee-company with the said borrowed capital ?(3) If so, whether in law the assessee-company would be entitled to the deduction of interest at the rate of 6 p. c. or any other rate on this amount under sections 9(1)(vi) and 24(1)(vi) of the Indian Income-tax Act, 1922, and the Income-tax Act, 1961, respectively ?(4) Whether, on the facts and circumstances of the case, the assessee company can claim deduction in question o...