DAKSHA R SHETH Vs. SEVENTH INCOME-TAX OFFICER

JUDGEMENT

(1.) This appeal reiterates the claim for deduction under section 80L of the Income-tax Act, 1961.

(2.) The assessee is an individual. She was in receipt of a share of income from the Ramesh Trust in which she was a beneficiary. She claimed that of the said share a sum of Rs. 3,300 represented interest from bank which was eligible for deduction under section 80L. The I. T. O. was of the opinion that since Ramesh Trust was assessed in the status of an Association of Persons, the assessee was not eligible to the deduction in view of the provisions of sub-section (3) of section 80L. This was confirmed on appeal.

(3.) In the further appeal before us it was contended on behalf of the assessee that the trust returned the income only a representative capacity but the status was taken as "Association of Persons" for assessment purposes and it could not have any bearing on the question whether the assessee was entitled to the deduction as the beneficial owner of the income. On the other hand, the revenue relied on the provisions of sub-section (3) of section 80L and contended that since the assessment of the trust in the status of Association of Persons has become final, the assessee was not entitled to any relief.