:1: bgp bgp bgp IN IN IN THE THE THE HIGH COURT OF JUDICATURE AT BOMBAY HIGH COURT OF JUDICATURE AT BOMBAY HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL ORIGINAL ORIGINAL CIVIL JURISDICTION CIVIL JURISDICTION CIVIL JURISDICTION INCOME INCOME INCOME TAX REFERENCE NO.1 OF 1996 TAX REFERENCE NO.1 OF 1996 TAX REFERENCE NO.1 OF 1996 M/s.Hercules Investments Ltd. ..Applicant Vs. The Commissioner of Income Tax ..Respondent Mr.J.D.Mistry a/w.Mr.Tripathi i/b.Kanga & Co. for applicant. Mr.J.S.Saluja for respondent. CORAM CORAM CORAM :- V.C.DAGA & :- V.C.DAGA & :- V.C.DAGA & J.P.DEVADHAR,JJ. J.P.DEVADHAR,JJ. J.P.DEVADHAR,JJ. DATE DATE DATE : 27TH APRIL,2009 : 27TH APRIL,2009 : 27TH APRIL,2009 P.C. P.C. P.C. . Heard. 2. The Tribunal has referred following question for the opinion of this Court. Whether on the facts and in the circumstances of the case, the Hon’ble Tribunal was right in holding that though the interest paid on borrowing utilised for the purpose of acquisition of share held as stock in trade, could be claimed as deduction u/s.36(1)(iii) in the computation of the business income, the same amount will have to be deducted from the income from dividend computed under the head "Income from other Sources" u/s.56, 57 and 58 of the Income Tax Act, 1961 for the purpose of determining the amount with reference to which relief under Section 80M has to be granted ? 3. The issue referred, has already been answered by this Court in the case of Commissioner of Income Commissioner of Income Commissioner of Income Tax Tax Tax Vs. Vs. Vs. Emraid Co.Ltd. 284 ITR 586 Emraid Co.Ltd. 284 ITR 586 Emraid Co.Ltd. 284 ITR 586. In this view of the matter, the question is answered in negative i.e. in favour of Assessee and against the Revenue. Reference is accordingly disposed of. (J.P.DEVADHAR,J.) (J.P.DEVADHAR,J.) (J.P.DEVADHAR,J.) (V.C.DAGA,J.) (V.C.DAGA,J.) (V.C.DAGA,J.)