SUNDARESWARAN N Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE two references have been made by the Madras Bench of the Income-tax Appellate Tribunal under Section 66(2) of the Indian Income-tax Act, 1922, as directed by this court on the applications made by the assessee. THESE cases relate to the assessment years 1960-61 and 1961-62. The questions referred in the first case are :

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was justified in inferring that out of the total loan raised during the accounting year, the sum of Rs. 1,32,081 could not be considered as for the purpose of his business, that it could only be in respect of the debit balance in the profit and loss account and that the assessee is not entitled to claim as a business expenditure the interest due on the said amount ? "

(3.) THE assessee has formed a partnership along with his wife and minor children under the style of Vijayamohan Metal Printers with the object of setting up a tin printing factory. This business has not commenced production. Certain amounts were advanced to the above firm from the assessee's tin factory business; and their total as on December 31, 1959, came to Rs. 1,68,334.