COMMISSIONER OF INCOME TAX Vs. RAJESH KHANDELWAL

JUDGEMENT

(1.) ON an application filed under S. 256(1) of the IT Act, 1961, Tribunal has referred the following question for our opinion :

(2.) THE assessee is an individual and derives income from salary from LIC of India. During the course of assessment, AO has noticed that assessee has claimed a deduction of Rs. 10,000 towards the payment made under the "Kalptaru Scheme" to Rajasthan Housing Board for purchase of residential house during the assessment year under consideration. ITO disallowed this claim of the assessee holding that the assessee has neither constructed the house nor the house has been constructed by Rajasthan Housing Board in the previous year, therefore, assessee is not entitled for any deduction of S. 80C of the Act.

(3.) NONE appeared for the assessee. Heard learned counsel for the Revenue Mr. Mathur. The facts are not in dispute that Rs. 10,000 has been paid by the assessee for purchase of house. Sub-cl. (a) of cl. (ii) of cl. (h) of sub-s. (2) of S. 80C reads as under :