BANSHIDHAR ONKARMAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN all the four cases, this Court, under S. 66(2) of the Indian IT Act, 1922, required the Tribunal to state the case and to refer the following question for the opinion of the court:

(2.) THE assessment years involved in these cases are 1949 50, 1950 51, 1951 52 and 1952 53, the corresponding previous years being Diwali years 2005, 2006, 2007 and 2008.

(3.) IN the four assessment years stated above, the assessee also claimed payment of interest at 9 per cent on Bai Mani's credit balance. The amount of interest claimed was Rs. 12,422, Rs. 13,442, Rs. 10,174, and Rs. 9,446 respectively for the aforesaid four assessment years. The ITO, following the previous decisions of the Tribunal in the earlier asst. year 1946 47, allowed interest only at the rate of 6 per cent and disallowed the excess in all the four years. Against the order of the ITO, the assessee carried appeals to the AAC who confirmed the order passed by the ITO and disallowed the excess claim of interest.