COMMISSIONER OF INCOME TAX Vs. ABRAHAM GEORGE

JUDGEMENT

(1.) At the instance of the Revenue, following question has been referred under S.256(1) of the Income Tax Act, 1961 (in short 'the Act') by the Income Tax Appellate Tribunal, Cochin Bench (in short 'the Tribunal') for opinion of this Court:

(2.) Assessee claimed deduction in respect of a sum of Rs. 80,000/- deposited in Public Provident Fund under S.80C of the Act. Same was denied to him by the assessing officer on the ground that it did not have any nexus with "income chargeable to tax" for the concerned previous year relating to assessment year 1989-90. Assessee earned income from interest on bank deposits. Deposit in Public Provident Fund was admittedly not made out of the interest income.

(3.) In appeal the Commissioner of Income Tax (Appeals) (in short 'the C.I.T. (A)') confirmed view of the assessing officer. The matter was carried in second appeal before the Tribunal. Relying on a decision of the Punjab and Haryana High Court in Ravi Kumar Mehra v. C.I.T., 1988 (172) ITR 108 , the Tribunal allowed the claim. Thereafter, reference was sought for and prayer was accepted.