LAWS(GJH)-2009-7-252

COMM OF INCOME TAX Vs. PALLAVI MAYOR

Decided On July 21, 2009
Comm Of Income Tax Appellant
V/S
Pallavi Mayor Respondents

JUDGEMENT

(1.) IN compliance with the direction issued by this Court in IT Application No.105/1999 dated 2.7.1999, the Income -tax Appellate Tribunal, Ahmedabad Bench -B, Ahmedabad has drawn a statement of case in Reference Application No.428/Ahd/98 for assessment years 1988 -89 and referred to the following questions of law for the opinion of this Court.

(2.) WHETHER , in the facts and circumstances of the case the Appellate Tribunal is right in law that the interest on debentures issued by companies other than local authority, company or corporation established by a Central, State or Provincial Act is not liable to be computed as income under the head 'interest of securities' ?

(3.) WHETHER interest on debentures in all circumstances is liable to be considered income only when received by the assessee and not when it has been due ? Similar questions were referred to this Court by the Tribunal in the case of Commissioner of Income -tax Vs. Upnishad Investment P. Ltd., and others,260 ITR 532. This Court has held in respect of both the questions as under : -