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Afsar Ali vs Commissioner Of Income-Tax

High Court Of Judicature at Allahabad|30 August, 1994

JUDGMENT / ORDER

JUDGMENT A.P. Misra, J.
1. The assessee has moved this application under Section 256(2) of the Income-tax Act, 1961, and seeks reference of the following question to this court :
"1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally correct in holding that the assessee was not entitled to deduction under Section 80C ?
2. Whether, on the facts and in the circumstances of the case, the request made by the assessee to the Income-tax Department to purchase National Savings Certificates of Rs. 40,000 out of the moneys of the assessee seized by the Department will entitle the assessee to get deduction under Section 80C of the Income-tax Act, 1961 ?
3. Whether, on the facts and in the circumstances of the case, the Income-tax Department was legally correct not to consider the request of the assessee to purchase National Savings Certificates of Rs. 40,000 to entitle the assessee to get deduction under Section 80C of the Income-tax Act, 1961 ?"
2. In the present case, the Tribunal has arrived at the following finding:
"The facts are that on a search of the premises of the two assessees, certain cash amounts were seized. The respective assessee requested the Department to purchase National Savings Certificates to the extent of Rs. 20,200 each out of the moneys so seized. This was not done and the contention of the assessee is that although the National Savings Certificates have not actually been purchased, the assessees' money should be deemed to have been invested in National Savings Certificates and the requisite relief under Section 80C should be granted. This claim has been negatived by the authorities below as under Section 80C relief can be granted only if the money is actually invested in specified investments out of the income chargeable to tax. In this case, the money was not invested and was in the custody of the Department in terms of Section 132 and there was no reason why simply because the assessee requested the Department to invest the money in National Savings Certificates, the same should be deemed to have actually been invested. Though learned counsel for the assessee did not concede that the claim is untenable, he could not advance any argument in support of the claim of the two assessees. We, therefore, do not find any force in these appeals and the same are hereby dismissed."
3. In view of the aforesaid finding recorded by the Tribunal, which we feel right, the provision of Section 80C, for granting deduction, is admissible only in case same is paid in the previous year in specified investment. In view of the said finding, it is clear that the sums are not actually paid for purchasing National Savings Certificates and hence the finding recorded by the Tribunal refusing the claim of deduction has rightly been done. As such no question of law arises out of the Tribunal's order. Accordingly, this application is dismissed.
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Title

Afsar Ali vs Commissioner Of Income-Tax

Court

High Court Of Judicature at Allahabad

JudgmentDate
30 August, 1994
Judges
  • A Misra
  • T Garg