COMMISSIONER OF INCOME TAX Vs. SUNIL AND CO

JUDGEMENT

(1.) THE Tribunal has referred the following two questions of law arising out of its order dt. 8th Dec., 1986 in respect of asst. yr. 1982-83 under s. 256(1) of the IT Act, 1961:

(2.) SO far as the first question is concerned the law is now well settled by the decision of the apex Court given in the case of CIT vs. P.J. Chemicals Ltd. (1994) 121 CTR (SC) 201 : (1994) 210 ITR 830 (SC) wherein the apex Court has observed.

(3.) SEC. 36(1)(iii) provides deduction of the amount of interest paid in respect of capital borrowed for the purposes of the business or profession.