Kalindi Investments (P) Ltd. vs Commissioner of Income Tax

K.A. Puj, J.

At the instance of the assessee, the following question is referred for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the claim on account of interest was allowable ?"

Heard Mr. R.K. Patel, the learned counsel appearing for the applicant and Mrs. Mona Bhatt, the learned standing counsel appearing for the revenue.

While drawing the statement of case, the Tribunal has referred to the earlier years'' order of the Tribunal passed in the assessee''s own case in Reference Application Nos. 330 to 332 (Ahd) of 1988 dated 18-7-1988, arising out of the Tribunal''s order in IT Appeal Nos. 367 to 369 (Ahd) of 1984 for the assessment years 1978-79 to 1980-81. The statement of case drawn in the said reference applications gave rise to Income Tax Reference No. 122 of 1988 and this court has decided the said reference on 11-12-2001. The said reference covers three assessment years and this court after discussing elaborately the necessary facts and submissions of the respective parties and also perusing the orders passed by the authorities below, has come to the conclusion that the assessee''s claim on account of interest was not allowable. The question referred to the court was answered in the negative, i.e., in favour of the revenue and against the assessee.

In the present reference, the facts are similar and no distinguishing feature is pointed out to us. Following the aforesaid judgment of this court in the assessee''s own case, we also take the same view and hold that the assessee''s claim on account of interest was not allowable.

We, therefore, answer the question referred to us in the negative, i.e., in favour of the revenue and against the assessee.

The reference is, accordingly, disposed of with no order as to costs.