RAMASWAMY IYER M N Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF KERALA
M. N. RAMASWAMY IYER
COMMISSIONER OF INCOME-TAX, KERALA.
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(1.) These two references have been made by the Madras Bench of the Income Tax Appellate Tribunal under S.66 (2) of the Indian Income Tax Act, 1922 as directed by this Court on the applications made by the assessee. The assessee is a Hindu undivided family carrying on business of banking and conducting Chits. The assessee's accounting year ends on 31st December; and I.T.R. 19 of 1967 relates to the assessment year 1958-59, while the other case relates to the year 1959-60.
(2.) For the assessment year 1958-59, the assessee returned a net loss of Rs. 19,302/- under business. In arriving at this figure, it made a deduction of Rs.38,193/- by way of interest paid to various parties on loans. This amount included a sum of Rs. 18,525/- made up as follows:-
1. Palghat Financing Co. (P) Ltd. Rs. 12,148/-
2. Palghat Investment Corporation Ltd. Rs. 1,890/-
3. Narasimha Bank, Alathur Rs. 4,487/-
(3.) For the assessment year 1959-60, the assessee returned a net loss of Rs. 1,890/- under business. The deductions made by the assessee in arriving at the above amount consisted of a sum of Rs. 17,514/-. This represented interest paid on loans to the following parties:-
1. Palghat Financing Co (P) Ltd. Rs. 10,080/-
2. Palghat Investment Corporation Ltd. Rs. 1,995/-
3. Narasimha Bank Rs. 3,090/-
4. M. N. Ramaswamy Iyer & Co. Ltd. Rs. 2,349/-;
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