COMMISSIONER OF INCOME TAX Vs. RAMESH CHANDRA KHANDELWAL

JUDGEMENT

(1.) The Income-tax Appellate Tribunal Allahabad, has referred the following question of law under Section 256(1) of the Income-tax Act, 1961, (hereinafter referred to as "the Act"), for the opinion of this court : "Whether, on the facts and circumstances of the case, the Appellate Tribunal erred in law in holding that the deduction under Section 80C was claimable by the assessee in respect of NSCs purchased out of sale proceeds of motor cycle and out of loan secured on the basis of the NSCs purchased in the same financial year ?"

(2.) The reference relates to the assessment year 1985-86.

(3.) Briefly stated the facts giving rise to the present reference are as follows :