1981 (9) TMI 11

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.... of dividends received from statutory corporations which was held to be 'Interest on securities ' within the meaning of s. 18 of the said Act ?" As we have mentioned before, the relevant assessment year is 1968-69, for which the previous year is 1967. Now, in deciding this appeal, the Tribunal has referred to its decision in the previous appeal. We may incidentally point out that the question that fell for decision in the previous appeal for the years 1964-65 to 1967-68, which came up in appeal, was the same question for the year 1968-69, when the Tribunal gave its decision and in the instant decision, the Tribunal has followed the said previous decision. It has accepted that the said decision would be applicable to the instant case. But....

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....included in its total income. The amount so included is the interest due on any security of the State Government issued income-tax free. Here also we would hold that the assessee would be entitled to the necessary relief on the entire amount of interest. The principle would be the same as decided by the Supreme Court in the case of CIT v. South Indian Bank Ltd. [1966] 59 ITR 763 (SC) and by the Calcutta High Court in CIT v. Darbhanga Marketing Co. Ltd. [1971] 80 ITR 72 (Cal). We may state that the principle laid down by the Calcutta High Court in the above case with reference to s. 99(1)(iv) of the Act was applied by the Tribunal in its various decisions relating to the interpretation of s. 85A of the Act also which was inserted by the s....