HOTEL RAMPRASAD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question referred to us at the instance of the assessee is as under :

(2.) MR . K. Ramagopal, learned counsel for the applicant very fairly states that this question is covered against him in the reported decision in Milapchand R. Shah & Ors. vs. CIT (1965) 58 ITR 525 (Mad) : TC 15R.896 where the Division Bench of this Court has held that if the amounts are directly diverted for non, business purposes, then the interest thereof would not be allowable. Similar view has been taken in CIT vs. Sujanni Textiles (P) Ltd. (1998) 147 CTR (Mad) 417 : (1997) 225 ITR 560 (Mad) : TC S15.1575 by another Division Bench of this Court where one of us was a party (NVBJ).