SHIVKUMAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal has been admitted for hearing on the following substantial questions of law:

(2.) BRIEFLY stated, facts of the case are that the appellant filed his IT return in the assessment year 1996-97 on 20-11-1996 declaring total income at Rs. 1,09,484. He had claimed rebate under Section 88 of the Income Tax Act, 1961 (for short the Act) in respect of the contribution to PPF at Rs. 30,000 and also Rs. 8,235 which was interest accrued in the PPF account. The assessing officer in a proceeding under Section 143(3) of the Act disallowed the rebate on interest of Rs. 8,235 credited to the PPF account. The assessee in his return had also computed interest under Section 234C of the Act on his total income at Rs. 108. After disallowing the rebate towards interest credited in the PPF account, the assessing officer determined the interest payable under Section 234C of the Act at Rs. 180.

(3.) ON the other hand, learned Counsel for the respondents has supported the impugned order.