COMMISSIONER OF INCOME TAX Vs. BENUGOPAL CHOUDHURY N

JUDGEMENT

(1.) THIS is an application by the Revenue under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). Despite valid service of notice, the assessee has not entered appearance.

(2.) THE assessee is the Project Engineer (Mech.) of Orissa Construction Corporation Ltd, He purchased some National Savings Certificates for the assessment year 1985-86 and claimed deduction of the same under Section 80C(2)(d) of the Act. During the assessment proceeding, he explained that, out of funds available by encashing fixed deposits and gifts to his son, he purchased the certificates. THE Income-tax Officer disallowed the claim for deduction. THE Appellate Assistant Commissioner, however, held that the assessee is entitled to the deduction in respect of the certificates purchased from his funds only and not from gifts to his children and allowed it. THE appeal by the Revenue before the Tribunal being unsuccessful, an application under Section 256(1) of the Act was filed before the Tribunal. THE same having been refused, the present application has been filed.