COMMISSIONER OF INCOME TAX Vs. SHAKUNTALA BANERJEE SMT

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, ' A ' Bench, Allahabad, has referred the following question for the opinion of the court.

(2.) SRI Pyare Lal Banerjee, an eminent advocate of this court, had created a trust, vesting Government securities of the face value of Rs. 10,00,000 in the Imperial Bank of India, Calcutta as trustee, and directing, inter alia, that the trustee, that is the Imperial Baak of India, should pay the net income of the trust fund to the settlor during his lifetime and upon his death to Sonab Banerjee and Smt. Shakuntala Banerjee in equal shares. The reference related to the assessment year 1973-74. In pursuance of the trust deed Smt. Shakuntala Banerjee received interest from the Bank. A claim for deduction of Rs. 3,000 was made under Section 80L and also for the deduction of the tax paid by the bank at source. The ITO did not agree with the assessee's contention on the view that the assessee was not the owner of the securities from which she received interest income. On an appeal filed by the assessee the deductions claimed were allowed. The department then took up the matter before the Tribunal. The Tribunal held that the mere fact that the assessee was not the owner of the securities was not sufficient to deprive her of the benefits of Sections 80L and 199, for none of these sections requires that before relief could be given under these sections the assessee should be the owner of the securities. The view taken by the Tribunal appears to be correct. The relevant part of Section 80L reads as under :

(3.) WE, accordingly, answer the question in the affirmative, in favour of the assessee and against the department. The assessee is entitled to costs which are assessed at Rs. 200. Counsel's fee is assessed at the same figure.