COMMISSIONER OF INCOME TAX vs CHUNI LAL and SONS

Arijit Pasayat C. J.

At the instance of the revenue, the following question has been referred u/s 256(1) of the Income Tax Act, 1961 (hereinafter referred to as "Act"), for the opinion of this court by the Income Tax Appellate Tribunal. Delhi Bench "C" (hereinafter referred to as "the Tribunal") :

"Whether, on the facts and in the circumstances of the case the Tribunal was justified in following its order dated March 28, 1974, in the case of the assessed for the assessment year 1965-66 and thereby allowing interest of Rs. 2,400 claimed as a deduction by the assessed on the loan of Rs. 20,000 in the name of Smt. Shanti Devi, in its books ?"

We have heard learned counsel for the revenue. None appears for the assessed in spite of notice.

The Tribunal for its decision relied on the decision of this court in Rattan Lal and Others Vs. Income Tax Officer etc., In view of the fact that the apex court was overruled the said judgment of this court in Jamnaprasad Kanhaiyalal Vs. Commissioner of Income Tax, M.P., Bhopal, the answer to the question has to be in the negative, in favor of the revenue and against the assessee. Ordered accordingly.

The reference stands disposed of.