COMMISSIONER OF INCOME TAX Vs. MOHAN ENTERPRISES

JUDGEMENT

(1.) THE Tribunal has referred the following three questions of law arising out of its order dt. 11th Feb., 1981, in respect of the asst. year 1978 -79 :

(2.) IN the second appeal before the Tribunal, relying on the decision of Produce Exchange Corporation Ltd. vs. CIT (1970) 77 ITR 739 (SC), it was held that the different ventures constitute a single business when the unity of control of business is at one place and as such these expenses are allowable.

(3.) IN the case of CIT vs. Shah Theatres (P) Ltd. (1987) 67 CTR (Raj) 120 : (1988) 169 ITR 499 (Raj), this Court has held that the business of exhibition of motion pictures and that of starting construction of the cinema theatre is the same. The interest paid on such borrowing was held allowable as it was incurred in connection with the extension of the existing business and not for setting up a new business.