ORDER By the Court The Income Tax Appellate Tribunal, Delhi has referred following question of law under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court:
"(1) Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the assessee was not entitled to relief under section 80C(2) of the Income Tax Act, 1961 in respect of Life Insurance premium paid and national saving certificates purchased out of moneys borrowed?"
The reference relates to the assessment year 1985-86 made at the instance of Jagdish Chand and Sons and Kasturi Lal Dewan and Sons. The applicants are HUF and they had claimed deduction under section 80C of the Act after making investment taken out of loan. It may be mentioned here that the investment was much below the income declared by them.
2. Heard Sri Amitabh Agarwal, Advocate, holding brief of Sri P.K Jain learned counsel for the assessee and Sri A.N. Mahajan standing counsel for the revenue.
2. Heard Sri Amitabh Agarwal, Advocate, holding brief of Sri P.K Jain learned counsel for the assessee and Sri A.N. Mahajan standing counsel for the revenue.
3. Similar question had come up for consideration before this, court in I.T.R. 172 of 1991 decided today in respect of persons belonging to the same group and this court has answered the question in favour of the assessee.
3. Similar question had come up for consideration before this, court in I.T.R. 172 of 1991 decided today in respect of persons belonging to the same group and this court has answered the question in favour of the assessee.
4. For the reasons given in the aforesaid I.T.R. No. 172 of 1991, we answer the question of law referred to us in negative, i.e., in favour of the assessee and against the revenue. However, there shall be no order as to costs.
4. For the reasons given in the aforesaid I.T.R. No. 172 of 1991, we answer the question of law referred to us in negative, i.e., in favour of the assessee and against the revenue. However, there shall be no order as to costs.