L M THAPAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The applicant, L. M. Thapar, seeks a certificate from us that the judgment delivered and order passed by this court on January 28, 1985, in Income-tax Reference No. 1970 of 177 (sic), involves Substantial questions of law and is a fit one for appeal to the Supreme Court. The Substantial questions of law are stated to be as follows :

(2.) It is stated that on identical questions, a certificate for leave to appeal to the Supreme Court has been given by this court from its judgment in M.M. Thapar v. CIT [1978] 114 ITR 331 by an order dated February 6, 1979.

(3.) Learned advocate for the Revenue drew our attention to a Subsequent decision of the Supreme Court in Smt. Padmavati Jaikrishna v. Addl. CIT [1987] 166 ITR 176, where the Supreme Court affirming the decision of the Gujarat High Court in [1975] 101 ITR 153 has held that interest paid on loans was not an admissible deduction under Section 57 of the Income-tax Act, 1961, where amounts were borrowed to pay taxes and annuity deposit and where the assessee derived income from other sources in the shape of interest and dividends. It was Submitted that as the Supreme Court has since laid down the law, it is not necessary to grant a certificate for leave to appeal in the instant case.