ASST CIT Vs. MANUBHAI TRIBHOVANDAS (HUF)

JUDGEMENT

(1.) BEING aggrieved and dissatisfied with the impugned judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad dated 01/06/2000 in ITA No.939/Ahd/1994 for the Assessment Year 1991 -92, the revenue has preferred the present Tax Appeal to consider the following substantial question of law;

(2.) THE assessee filed the return of income for the year under consideration declaring the total income of Rs.4,56,000/ -. It appears that during the Assessment Year the assessee made the investment of Rs.46,25,000/ - in the three year IDBI Capital Bond Scheme. The assessee opted for computation of interest and received a sum of Rs.10,86,875/ - during the Assessment Year under consideration. He, however, made the claim that the total interest should not be taxed in the year of receipt of interest but it should be taxed as follows; <FRM>JUDGEMENT_220_LAWS(GJH)7_2014.htm</FRM>

(3.) SHRI Varun Patel, learned advocate appearing on behalf of the revenue has vehemently submitted that the tribunal has materially erred in deleting the addition of Rs.8,60,462/ -, which was made by the Assessing Officer, being the interest actually received from IDBI Bonds. It is submitted that considering the fact that the assessee received the entire amount of interest i.e. Rs.10,86,875/ - for the Assessment Year under consideration and without any condition and the assessee opted for computation of interest as per the option given under the Scheme/debentures, the entire amount of Rs.10,86,875/ - received by the assessee was required to be included in the income of the assessee in the Assessment Year under consideration.