9911796707
TMI Blog2009 (8) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner. Shakil Ahmad for the assessee. JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following questions of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as the Act) for opinion of this court. "Whether on the facts and in the circumstances of the case the hon'ble Income-tax Appellate Tribunal is justified in law in holding that the assessee is entitled to deduction under sections 80CCA and 80CCB of the Income-tax Act ?" 2. The reference relate to the assessment year 1992-93. Briefly stated, the facts giving rise to the present reference are as follows: 3. The assessee had made an investment of Rs.40,000 in National Savings Scheme and another investment of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year under consideration, the assessee had substantial income. Relying on the decision of the Punjab and Haryana High Court in the a case of Ravi Kumar Mehra v. CIT [1988] 172 ITR 108 and a decision of the Appellate Tribunal reported in Asst. CIT v. Dr. Suit. Ujjawala Sharma [1997] 57 TT (I nd) 532, it was pleaded that the assessee was eligible for relief under sections 80CCA and 80CCB of the Act. Opposing these submissions, the Department had contended that all the income earned by the assessee during the year was invested elsewhere and that the savings bank account of the assessee did not in any way show that the amount of Rs. 2 lakhs was advanced to M/s. Ganesh Prasad Hira Lal, out of income chargeable to tax during this year or in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue and Sri Shakil Ahmad, counsel appearing for the respondents. 7. We find that the controversy raised herein has been set at rest in so far as this court is concerned by the two Division Bench decisions, namely, CIT v. Ramesh Chandra Khandewal [2005] 273 ITR 363 (All) and Raj Kurnar Dewan and Sons v. CIT [2005] 277 ITR 561 (All). This court had held that investment in National Savings Certificates, etc. for claiming deduction under section 80C of the Act, need not be from the income earned up to that period, it would be sufficient if the total income of the assessee for that year covers the investment. The court had followed the decision of the Punjab and Haryana High Court in the case of Ravi Kumar Mehra v. CIT [1988] 172 ITR 108 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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