1993 (3) TMI 134

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....d Deposit made by the assessee with the Bank of India. 2. The assessee is an individual. In order to avail of the exemption under section 54E, the assessee had deposited a sum of Rs. 4,63,000 on 8-7-1983 and a sum of Rs. 83,650 on 7-1-1983 with the Bank of India. These deposits were made under the Reinvestment Plan, i.e., the annual interest was re-invested on the instructions of the assessee f....

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.... the income on annual basis. 3. In further appeal before us, the assessee was not able to press the first point because fixed deposit receipt itself admittedly clearly indicates that interest is to accrue annually and is to be re-invested at the instance of the assessee. The position may be different if the assessee had purchased cash certicate at a discounted price. But, on the terms of the fi....

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....e cash system of accounting. In the present case, the assessee had, no doubt, offered the entire receipt originally but on the footing that it was a capital receipt. Once it is held that it is a revenue receipt, the assessee has to be given the option as indicated in the Circulars of the CBDT and consequently the assessee is entitled to succeed in the claim that only the interest which accrued in ....