COMMISSIONER OF INCOME TAX Vs. KARNATAKA BANK LIMITED

JUDGEMENT

(1.) THESE references arise out of a common order passed by the Income-tax Appellate Tribunal, Bangalore Bench, made in ITA Nos. 1, 2, 3, 4/Bang/1980 for the assessment years 1976-77, 1977-78 and 1978-79 in the case of the respondent-assessee.

(2.) AT the instance of the Commissioner of Income-tax, Karnataka, Bangalore, the following common question of law is referred for the opinion of this court :

(3.) THE assessee-company filed appeals against the assessment orders, inter alia, challenging the Income-tax Officer's orders bringing the interest to tax under the Interest-tax Act. THE Appellate Assistant Commissioner (AAC) allowed the appeals and held that the interest that accrued to the assessee-company during the three years which had been credited to the suspense account should be deleted from assessment for all the three years.