TaxTMI 
TaxTMI 
1988 (3) TMI 100
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....Income-tax, Asansol. It was passed on September 3, 1986. The relevant assessment year is 1985-86. 2. The only ground raised is that the AAC of Income-tax erred in law as well as on facts in directing the ITO to allow the assessee's claim of deduction u/s 80C of the Income-tax Act, 1961 in respect of purchase of National Savings Certificates worth Rs. 12,000, although the source of that investment....
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....that if the purchase of NSCs was out of the income within the purview of the Income-tax Act, then that itself was sufficient. He relied upon the decision of the Hon'ble Supreme Court in the case of Chandulal Harjiwandas v. CIT [1967] 63 ITR 627 which held that the object of section 15(1) of the Indian Income-tax Act, 1922 was the encouragement of thrift and that the section should be interpreted i....
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.... that the above decision is squarely fitting into the instant case. Further, we opine that it is not necessary that these payments should be made out of the taxable income of the relevant previous year. It, therefore, follows that the deduction would be available even if these payments are made out of the post-tax accumulated savings of the earlier years. We are, therefore, inclined not to interfe....