Sangu Knit Lands vs The Assistant Commissioner of Income Tax

Chitra Venkataraman, J.—The Assessee has preferred the tax case appeals in respect of the two assessment years 1996-1997 and 1997-

1998, raising the following questions of law:

Whether the Appellate Tribunal was right in law in holding that the interest received should not be set off against the interest paid, and claimed as

deduction in computing business profits?

Whether the Appellate Tribunal was right in law in holding that the Assessee is not entitled to set off even though the receipt is assessable under

the head ''profits and gains of business''?

Whether the Appellate Tribunal was right in law in holding that the issue is covered by the judgment of Madras High Court, reported in K.S.

Subbiah Pillai and Co. (India) Pvt. Ltd. Vs. Commissioner of Income Tax, where the Madras High Court has considered the issue in respect of the

receipts assessed under the head ''other sources''?

The learned Counsel appearing for the Assessee had fairly pointed out that the issues are covered against the Assessee, by reason of a decision

of this Court, reported in Commissioner of Income Tax Vs. V. Chinnapandi, , followed again in the decision reported in The Commissioner of

Income Tax Vs. Devraj Nensee and Co., .

Having regard to the issues involved in these appeals are covered by the above said decisions of this Court, which is applicable herein, the Tax

Case Appeals stand dismissed. No. costs.