COMMISSIONER OF INCOME TAX Vs. MARJINDER KAUR

JUDGEMENT

(1.) THIS is an income-tax reference under Section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue and the following three questions of law have been referred by the Tribunal for answer by this court :

(2.) THE brief facts giving rise to this case are that the assessee had claimed to have paid interest to her children, namely, Ku. Ravinder Kaur, Ku. Navneet Kaur and Sardar Narender Singh. THE Income-tax Officer disallowed the payment of interest in the absence of any evidence. Against the order of the Income-tax Officer, the assessee preferred an appeal before the Appellate Assistant Commissioner. THE Appellate Assistant Commissioner held that the interest paid to the children could be allowed and accordingly, directed the Income-tax Officer to allow the payment of interest as deduction from the income of the assessee. However, he confirmed the disallowance of the assessee in respect of Ku. Ravinder Kaur. Aggrieved against this order, the Revenue approached the Tribunal and the Tribunal confirmed the finding of the Appellate Assistant Commissioner. Hence, the Revenue approached the Tribunal for making reference of the aforesaid questions for answer by this court. Accordingly, the Tribunal has referred the aforesaid three questions to this court.