1999 (8) TMI 25

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..... ribunal has referred the following questions of law to this court for opinion at the instance of the Revenue : "1. Whether, on the facts and circumstances of the case and in law, the Tribunal was right in holding that the assessee was entitled to deduction under section 80L of the Income-tax Act in respect of the interest income on fixed deposits with banks included in the assessee's share of pro .....

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..... l as proportionate share of interest income. In respect of the proportionate share of interest income the assessee claimed deduction under section 80L of the Income-tax Act ("the Act") for the assessment years 1976-77 and 1978-79. The Income-tax Officer disallowed the said claim. On appeal by the assessee the Appellate Assistant Commissioner of Income-tax allowed the said deduction following the .....

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..... rest on Central Government securities and deposits including deposits with banking companies. For the assessment year 1973-74 the assessees claimed deduction under section 80L of the Act in respect of the share of profits from the firm which represented "interest on Government securities and interest on deposits from banking companies". The Income-tax Officer rejected the claim for deduction on th .....

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..... ned by the firm on Government securities and fixed deposits with banking companies would retain its character despite apportionment of the income of the firm among partners. The income from interest in respect of which deduction was claimed by the partners under section 80L of the Act was determined in the assessment of the firm as "income on fixed deposits with Government companies and interest o .....

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..... behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under the said sub-section in respect of such income in computing the total income of any partner of the firm or any member of the association or body. In view of the above amendment question No. 1 is answered in the negative i.e. in favour of the Revenue and against the assessee. In view of the .....

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