SUNANDAMMA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under s. 256(1) of the IT Act, 1961 (" Act " for short). The following questions have been referred by the Tribunal, Bangalore Bench:

(2.) THE assessee is an individual and a co-widow of late Sri K. Gururajachar. Gururajachar died on February 9, 1969, leaving behind the assessee and the other widow, Smt. Bhoomiamma, with extensive business and large properties. However, the assessee and the other widow could not pay estate duty payable in respect of the estate of Sri Gururajachar. THEy obtained annual instalments for payments of the same subject to payment of interest. For the asst. yr. 1972- 73, the interest payable was Rs. 2,000 being the assessee's share only. Before the ITO, the assessee made a claim for deduction of that amount under s. 24(1)(iv) of the Act. THE ITO disallowed the claimon the ground that it was not an annual charge coming within the purview of that section.

(3.) THE assessee claimed another deduction. That was in regard to the interest of Rs. 3,960 which arose in this way.