1991 (1) TMI 223

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....d under section 143(3). The common question which arises for consideration in all these three appeals is whether the accrued interest on the National Savings Certificates (V Issue) held by the assessee as on the last date of the previous years relevant to the respect assessment years under consideration is exempt from income-tax under section 10(15)(ii) of the IT Act. The amount involved for the assessment year 1981-82 (in ITA No. 2473/Mds/88) is Rs. 24,500. Similarly, the amount involved in ITA No. 2476/Mds/88 (Assessment year 1982-83) is Rs. 24,500 whereas the amount involved in ITA No. 2475/Mds/88 is Rs. 11,400. It is the contention of the assessee that no notification from the Government exempting the interest accrued on NSC (V Issue) i....

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....ficate is an enumerated category of investment mentioned in that sub-section, before granting exemption no notification of the Central Government will be shown or required. We are unable to agree with this contention of the learned counsel and we are of the view that certain enumerated categories of investments together with unenumerated categories of investments were also included in the sweep of the section and all those categories, whether enumerated or not, according to the correct interpretation of the section require notification from the Central Government before the interest on them can be claimed as exempt. It is significant to note that the enumerated categories of investments were treated similar to the unenumerated categories, s....

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....ct than the interpretation opposite to it. In the result, we hold that the assessee is not entitled to the exemption prayed for. Consequently, we hold that the section 154 order passed for the assessment year 1981-82 is clearly justified and we further hold that the disallowance of Rs. 24,500 for the assessment years 1981-82 and 1982-83 in the individual assessments and disallowance of Rs. 11,400 in the HUF assessment are correct and cannot be called in question. 3. In ITA No. 2475/Mds/88, there is another point which remains to be disposed of. It is the case of the assessee that the old constructions standing at Door Nos. 14A, 17 and 17A, Palace Road, Ramanathapuram, were completely demolished and in their place a new construction was p....