2005 (2) TMI 80

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) 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 Appellate Tribunal was right in holding that the assessee was not entitled to relief under section 80C of the Income-tax Act, 1961, in respect of purchase of National Savings Certificates to the extent of Rs. 5,000 purchased by raising....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ance premium amounting to Rs. 17,915. According to the assessing authority this amount was procured by loan from M/s. Raj Kumar and Sons and since the investments, aforesaid, were not made out of the assessee's income chargeable to tax, relief under section 80C was denied. In appeal the Commissioner of Income-tax (Appeals) directed the grant of deduction under section 80C. The Tribunal held that w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Jain, learned counsel for the assessee, and Sri A.N. Mahajan, learned standing counsel for the Revenue. We find that this court in I.T.R. No. 14 of 1989, CIT v. Ramesh Chandra Khandelwal [2005] 273 ITR 363 decided on December 17, 2004, has held that it is normal behaviour of an individual's private life that all incomes are amalgamated and spent. The Income-tax Act does not require that the inves....