COMMISSIONER OF INCOME-TAX, M. P. vs DR. FIDA HUSSAIN G. ABBASI — 1971 PTD 562

Citation: 1971 PTD 562

Court: Andhra Paradesh High Court

Year: 1967

Decision Date: 1967-12-07

Parties: COMMISSIONER OF INCOME-TAX, M. P. vs DR. FIDA HUSSAIN G. ABBASI

Headnotes

Case cited as 1971 PTD 562

Judgment Text

Court Name: Andhra Paradesh High Court Judge(s): P. V. Dixit, K. L. Pandey Title: COMMISSIONER OF INCOME-TAX, M. P. vs DR. FIDA HUSSAIN G. ABBASI Case No.: Civil Case No. 241 of 1964 Date of Judgment:1967-12-07 Reported As: 1971 PTD 562 Result: company is allow JUDGMENT JUDGMENT P. V. DIXIT, C. J.-On an application made by the Com--missioner of Income-tax, the Income-tax Appellate Tribunal, Bombay, has referred, under section 66(1) of the Indian Income--tax Act, 1922, the following questions of law for the opinion of this Court: "(1) Whether, on the facts and in the circumstances of the case, the interest paid on loans borrowed for investment in the shares of Ratlam Straw Board Mills (Private) Ltd.. Which did not yield any dividend income, is allowable as deduction under section 12 of the Income-tax Act. 1922 ? (2) Whether, on the facts and in the circumstances of the case, the amount of Rs. 9,422 credited to the account of the assessee in the books of account of Regal Cinema Ltd., East Africa, has been rightly included in the income of the assessee and subject to tax?" The material facts as appearing from the statement of the case are these. The assessee is a shareholder and director of Ratlam Straw Board Mills (Private) Limited, Ratlam. He holds 225 shares of Rs. 1,000 each. He had borrowed Rs. 20,000 from Abdul Hussain Ismailji in December 1953, and deposited that amount with the company in two instalments on January 19, 1954, and February 1, 1954. He had borrowed…

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