9911796707
TMI Blog1999 (7) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue, the Income-tax Appellate Tribunal has referred under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following questions for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in directing the Income-tax Officer to assess the interest from securities on specified dates basis on which the intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clared on "accrual" basis but in the revised return, the same was declared on "due" basis. The Income-tax Officer, however, assessed the income under the said head on accrual basis mainly on the ground that this was the practice being followed by the assessee in earlier years. On appeal, the Commissioner of Income-tax (Appeals), while observing that the interest on securities would become due only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue also failed. While dismissing the appeal, the Tribunal relied on its earlier orders in respect of the assessment years 1970-71 and 1971 72. Hence, this reference. Section 18 of the Act reads as follows : "18. Interest on securities.---(1) The following amounts due to an assessee in the previous year shall be chargeable to income-tax under the head 'Interest on securities',--- (i) intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (2), which is not the case here. The section cannot be interpreted in any other manner. In this view of the matter, in the light of the finding of fact recorded by the Commissioner of Income-tax (Appeals) and affirmed by the Tribunal that only the amount of interest on securities declared by the assessee in its revised return had become due during the previous year relevant to the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al result. He is also not in a position to point out the nature of the equipment and the value of each of the items on which the assessee had claimed 100 per cent. depreciation on the plea that the value of each of the those items was less than Rs. 750. In the absence of the requisite details, we are unable to consider and answer the second question. Accordingly, question No. 1 is answered in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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