SUSHIL ANSAL Vs. COMMISSIONER OF INCOME TAX CENTRAL

JUDGEMENT

(1.) These two reference applications are inter-linked. Both the assessee and the Revenue moved for references under Section 256 (1) of the Income-tax Act, 1961 (in short 'the Act'). The Income-tax Appellate Tribunal Delhi Bench-B ('Tribunal' in short) referred the following question at the instance of Revenue for opinion of this Court:

(2.) The question that essentially arises is whether the property which was first let out with effect from 1/11/1972 could have the benefit of vacancy allowance in terms of Section 24(1) (ix) of the Act. As regards the question referred at the instance of Revenue is concerned, a similar question has come up for consideration of this Court in ITR 197/81 titled Commissioner of Income-tax, Delhi (Central) Vs. M/s. C. Lyall & Co (Lucknow Airfield) New Delhi, disposed of on 8/01/2001. Following the answer given in the said case, we answer the question referred in the affirmative, in favour of assessee and against Revenue.

(3.) Coming to the questions referred at the instance of the assessee, second and third questions are covered by a decision of the Apex Court in Commissioner of Income-tax Vs. Podar Cement Pvt. Limited & Ors. (1997)226 ITR 625. Following the said decision, both the second and third questions have to be answered in favour of assessee and against Revenue.