| Case ID |
e8c40fea-e1ef-4f28-b412-18b8fcc36f7e |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The petitioner sought a reference regarding the legality of the Income-tax Appellate Tribunal's decision, which held that the interest paid on a bank loan taken to repay an earlier loan qualified for a deduction under section 67(3) of the Income-tax Act. The Tribunal confirmed that the loan taken by the assessee formed part of the capital invested in the business, allowing the interest deduction. The court found that no substantial question of law arose from the Tribunal's order, leading to the dismissal of the petition. |
| Summary |
This case revolves around the interpretation of section 67 of the Income-tax Act, 1961, concerning the computation of a partner's share in income. The Income-tax Appellate Tribunal ruled in favor of the assessee, recognizing the legitimacy of the interest deduction on a bank loan that was used to repay an earlier loan. The ruling emphasized the importance of correctly classifying loans as capital contributions for tax purposes. This case is significant for tax professionals and litigators dealing with income tax law, as it clarifies the conditions under which interest on loans may be deductible. Keywords such as 'Income-tax Act', 'interest deduction', and 'capital contribution' are crucial for SEO optimization in legal research and tax law discussions. |
| Court |
Delhi High Court
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| Entities Involved |
Not available
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| Judges |
B.K. KIRPAL,
D.K. JAIN
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| Lawyers |
Rajendra,
D.C. Taneja,
C.S. Aggarwal,
Anil Sharma
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| Petitioners |
Commissioner of Income tax
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| Respondents |
Ashok Kumar Mehra
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| Citations |
1992 SLD 1280,
(1992) 193 ITR 425
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| Other Citations |
Not available
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
67,
256
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