COMMISSIONER OF INCOME TAX Vs. JOBIE K JOHN

JUDGEMENT

(1.) AT the instance of the revenue , the following question of law has been referred under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), to this court:

(2.) LEARNED counsel for the revenue submitted that the view of the Tribunal that the payment can also be made out of the savings of the income in the preceding year to get exemption under section 80C of the Act is not correct. LEARNED counsel submitted that section 80C itself says that the payment should be made out of the income chargeable to tax, then only the exemption will be obtained. LEARNED counsel brought to our notice a Division Bench decision of this court in CIT v. Abraham George, 2000 242 ITR 171. Arijit Pasayat, C.J. speaking for the Bench observed as follows :