REGAL THEATRE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a reference under Section 256 of the Income Tax Act,1961 by the Income Tax Appellate Tribunal (Delhi Bench) in respect of the assessment-year 1973-74 for which the relevant previous year ended on 31.10.1972. The question referred is as follows:

(2.) The petitioner is a partnership concern running a cinema called Regal Theatre in Delhi as also a restaurant. The dispute relates to disallowance of deduction towards interest in a sum of Rs. 23,166 out of a total claim for interest-deduction in a sum of Rs.26,108.

(3.) The Income-tax Officer in his order dated 20.10.73 noticed that the return filed by the assessee was of income of Rs. 2,67,617 and assessed the firm to a net income of Rs.1,90,741 and demanded a tax of Rs.64,442.