JAWAHAR LAL GUPTA, J. - (1.) THE Tribunal, Chandigarh Bench, has referred the following question for the opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the decision of the AAC in allowing the set off of loss relating to house property against income under the other heads for the asst. yrs. 1976 -77, 1977 -78 and 1978 -79 -
(2.) THE reference relates to three assessment years. The assessee claimed to have paid Rs. 13,211, Rs. 22,159 and Rs. 18,018 by way of interest. On this basis, it was claimed that there was loss in the income from house property. The assessee claimed that this loss had to be set off against the income derived from business in respect of the three assessment years. The claim was disallowed by the assessing authority. The appeal filed by the assessee was accepted by the AAC. However, the Tribunal having accepted the assessee's claim, the CIT had filed there reference applications under S. 256(1) of the IT Act, 1961.
(3.) ON consideration of the matter, the Tribunal found that an identical question had already been referred to the High Court in the case of CIT vs. K.K. Dhanda (HUF). Thus, the reference has been made in the present case also. Mr. R.P. Sawhney, learned counsel for the Revenue, has contended that in view of the provision contained in S. 23, the assessee was not entitled to the claim as made by him. The claim made on behalf of the Revenue has been controverted by Mr. A.K. Mittal, learned counsel for the assessee.;