1999 (7) TMI 60

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.... of the Revenue, the Income-tax Appellate Tribunal has referred under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following questions for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in directing the Income-tax Officer to assess the interest from securities on specified dates basis on which t....

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....ties was declared on "accrual" basis but in the revised return, the same was declared on "due" basis. The Income-tax Officer, however, assessed the income under the said head on accrual basis mainly on the ground that this was the practice being followed by the assessee in earlier years. On appeal, the Commissioner of Income-tax (Appeals), while observing that the interest on securities would beco....

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....al on the issue also failed. While dismissing the appeal, the Tribunal relied on its earlier orders in respect of the assessment years 1970-71 and 1971 72. Hence, this reference. Section 18 of the Act reads as follows : "18. Interest on securities.---(1) The following amounts due to an assessee in the previous year shall be chargeable to income-tax under the head 'Interest on securities',---....

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....indicated in sub-section (2), which is not the case here. The section cannot be interpreted in any other manner. In this view of the matter, in the light of the finding of fact recorded by the Commissioner of Income-tax (Appeals) and affirmed by the Tribunal that only the amount of interest on securities declared by the assessee in its revised return had become due during the previous year relevan....