Judgement

JUDGMENT :- These appeals by the Revenue are directed against the judgment of the Gujarat High Court dated August 27, 1980 in Income-tax Reference No. 251 of 1975 (reported in 1982 Tax LR 28). The High Court has granted certificate of fitness under Section 261 of the Income-tax Act, 1961 (hereinafter referred to as the Act). The appeals relate to the assessment years 1966-67 to 1969-70.

2. The assessees father died on July 7, 1965. On his death the assessee inherited various assets amounting to Rs. 12,38,000/- and liabilities worth Rs. 2,47,000/- in respect of the borrowing from the Bank of India (hereinafter referred to as the Bank) by the assessees father. In order to meet his Income-tax liability the assessees father had, in his life time, borrowed certain amount from the Bank and the said Bank had granted over draft facilities to the assessees father. The amount that was advanced in the overdraft account was secured by the assessees father by pledging with the Bank various shares which he was owning at the relevant time. When the assessee inherited the properties from his father, he was also required to meet the liability which had accrued out of inherited assets and he