COMMISSIONER OF INCOME-TAX, 'BIHAR AND ORISSA vs ATMA RAM MODI — 1971 PTD 407

Citation: 1971 PTD 407

Court: Patna High Court

Year: 1968

Decision Date: 1968-05-10

Parties: COMMISSIONER OF INCOME-TAX, 'BIHAR AND ORISSA vs ATMA RAM MODI

Headnotes

Case cited as 1971 PTD 407

Judgment Text

Court Name: Patna High Court Judge(s): R. L. Narasimham, B. N. Jha Title: COMMISSIONER OF INCOME-TAX, 'BIHAR AND ORISSA vs ATMA RAM MODI Case No.: Case No. 13 of 1966 Date of Judgment:1968-05-10 Reported As: 1971 PTD 407 Result: question is answered JUDGMENT JUDGMENT R. L. NARASIMHAM, C. J.-This is a reference under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as the Act), by the Income-tax Appellate Tribunal, Patna Bench, referring the following question for the opinion of this Court, namely, w--ether, on the facts and circumstances of the case, the sum of Rs. 3,400 can legally be deducted from the assessment of the assessee. The assessee is a Hindu undivided .Family, of which Shri Atma Ram Modi is the karta. His income was derived partly from the profit: on his share in two registered partnership firms, known as Bhimraj Banshidhar Daltonganj, on the one hand, and Bhimraj Banshidhar (Construction), on the other. The assessee's share out of the profits of the said two firms for the assessment year 1963-64 eras given as Rs. 21,359. This figure was not chal--lenged. But the assessee claimed a deduction of Rs. 3,400 for the maintenance and depreciation of his motor car, which, according to him, was used wholly and exclusively for the purposes of his business. The Income-tax Officer and the Appellate Assistant Commissioner disallowed this claim relying mainly on sub--section (3) of section 67 of the Act, which is as follows: "Any interest paid by a…

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