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Commissioner Of Income Tax v. United General Trust Limited

Commissioner Of Income Tax v. United General Trust Limited

(Supreme Court Of India)

Civil Appeal No. 2646 To 2648 Of 1977 | 19-02-1993

Both counsel for the Revenue and the assessee are agreed that the only question which was sought to be raised by the Revenue, but which was not allowed by the High Court is concluded against the assessee and in favour of the Revenue by the decision of this court is Distributors (Baroda) P. Ltd. v. Union of India. Indeed, the same result follows from section 80AA introduced by the Finance (No. 2) Act, 1980, with retrospective effect from April 1, 1968

For the above reason, the appeals are allowed. The application under section 256 (2) of the Income-tax Act made by the Revenue shall be deemed to have been allowed, a reference made and answered in the manner indicated above

We may clarify that the assessment years concerned herein are 1970-71, 1971-72 and 1972-73.

Advocate List
  • For
Bench
  • HON'BLE JUSTICE B. P. JEEVAN REDDY
  • HON'BLE JUSTICE N. VENKATACHALA
Eq Citations
  • [1993] 200 ITR 488
  • (1994) 116 CTR SC 194
  • LQ/SC/1993/157
Head Note

Income Tax — Deductions — Interest on borrowed capital — Interest paid on borrowed capital for acquisition of plant and machinery — Whether deductible under s. 80-AA of IT Act, 1961 — Finance (No. 2) Act, 1980, retrospectively amending s. 80-AA with effect from 1-4-1968 — Held, both counsel for the Revenue and the assessee are agreed that the only question which was sought to be raised by the Revenue but which was not allowed by the High Court is concluded against the assessee and in favour of the Revenue by the decision of the Supreme Court in Distributors Baroda P Ltd, (1982) 2 SCC 416 — Indeed the same result follows from s. 80-AA introduced by the Finance (No. 2) Act, 1980 with retrospective effect from 1-4-1968 — Both counsel for the Revenue and the assessee are agreed that the only question which was sought to be raised by the Revenue but which was not allowed by the High Court is concluded against the assessee and in favour of the Revenue by the decision of the Supreme Court in Distributors Baroda P Ltd, (1982) 2 SCC 416 — Indeed the same result follows from s. 80-AA introduced by the Finance (No. 2) Act, 1980 with retrospective effect from 1-4-1968 — Both counsel for the Revenue and the assessee are agreed that the only question which was sought to be raised by the Revenue but which was not allowed by the High Court is concluded against the assessee and in favour of the Revenue by the decision of the Supreme Court in Distributors Baroda P Ltd, (1982) 2 SCC 416 — Indeed the same result follows from s. 80-AA introduced by the Finance (No. 2) Act, 1980 with retrospective effect from 1-4-1968 — Appeals of the Revenue allowed — Application under s. 256(2) of the Income-tax Act, 1961 made by the Revenue shall be deemed to have been allowed a reference made and answered in the manner indicated above — Income-tax Act, 1961, S. 80-AA (as amended by Finance (No. 2) Act, 1980)