Commissioner of Income Tax vs Raghavendra Singh

Kirpal, J.—We heard counsel for the parties. In our opinion, the following two questions of law arise.

We, accordingly, direct the Tribunal to state the case and refer the following two questions of law to this court :

"(1) Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the interest amount of Rs. 14,224 is not taxable separately under the head ''Other sources'' ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the interest receipt should first be deducted from the interest paid and, thereafter, the balance of interest paid should be allocated against the taxable and non-taxable incomes of the assessed ?"

There will be no order as to costs.