COMMISSIONER OF INCOME TAX Vs. G K CHADHA

JUDGEMENT

(1.) HEARD .

(2.) ALL these reference applications are interlinked in the sense that they relate to the same assessed and the dispute revolves round the allowability of interest to the Hindu undivided family (for short 'the HUF'), of the assessed. The references have been made under Section 256(1) of the Income -tax Act, 1961 (in short 'the Act'). So far as the assessment years 1971 -72, 1972 -73 (I. T. R. Nos. 187 -88 of 1981) and 1973 -74 (I. T. R. No. 148 of 1981) are concerned, the Revenue is in reference against the Tribunal's decision that interest was allowable as expenditure both under Section 36(1)(iii) and Section 37 of the Act. So far as these references are con -cerned, the Revenue's stand is that on the death of Shri B. N. Chadha, his son, i.e., the assessed, could not have constituted a Hindu undivided family. We find that there was no dispute by the Revenue before the Tribunal on the point that with effect from December 31, 1969, the capital account standing in the name of G. K. Chadha (HUF) was the property of his Hindu undivided family. The only ground on which allowance of interest was objected to was the absence of any specific agreement for paying such interest.

(3.) ALL the reference applications are accordingly disposed of.