COMMISSIONER OF INCOME TAX Vs. JANARDAN SUBUDHI

JUDGEMENT

(1.) THE Cuttack Bench of the Income-tax Appellate Tribunal has stated this case under Section 256(1) of the I.T. Act of 1961 (hereinafter referred to as "the Act"), at the instance of the assessee and has referred the following question for the opinion of the court:

(2.) THE short facts relevant for- answering this question are these : THE assessee is a HUF. THE relevant year of assessment is 1975-76 with the previous year ending on March 31, 1975. THE HUF represented by the karta was a partner of the firm, M/s. Setty Ramayya Patra & Co. THE firm received interest on bank deposits during the year and the assessee claimed relief under Section 80L of the Act in respect of the share in the interest received by the firm by way of exemption. THE ITO disallowed the claim, but the AAC accepted the assessee's stand and directed that relief under Section 80L of the Act should be given to the assessee in respect of that portion of the bank interest which fell to his share. THE revenue appealed to the Tribunal, but the decision of the AAC was upheld. THE Tribunal took the view :