COMMISSIONER OF INCOME TAX Vs. AJI PRASAD

JUDGEMENT

(1.) In Income Tax Reference No. 226 of 1992 relating to the Assessment Year 1983-84, the Income Tax Appellate Tribunal, Delhi (hereinafter referred to as the Tribunal) has referred the following question of law under Section 256(2) of the Income Tax Act, 1961, hereinafter referred to as the Act, f6r opinion to this Court:

(2.) Whereas in Income Tax Reference No. 82 of 1997 relating to the Assessment Years 1984-85 and 1985-86, the Tribunal has referred the following question of law under Section 256(1) of the Act, for opinion to this Court. "Whether, on the facts and in the circumstances of the case, the Tribunal was wrong in law in holding that the interest charged by the two firms M/s Eves Picture House and M/s Apsara Cinema on the debit balance of the assessee partner in the capital account was allowable as expenditure incurred to earn his share of profit Under Section 67(3) from the two firms?".

(3.) As the respondents assessees are partners in M/s Eves Picture House and M/s Apsara Cinema and the question of law referred to us is common, both the References have been heard together and are being decided by a common order.