TMI Blog1981 (9) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 there is no reference to the said previous decision. Therefore, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 same Act 10 of 1965 w.e.f. April 1, 1965, after the omission of s. 99 with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court on which the Tribunal has relied has been approved of and the question has been discussed threadbare by the Supreme Court in the case of Cloth Traders (P.) Ltd. v. Addl. CIT [1979] 118 ITR 243. Learned advocate for the Revenue, however, drew our attention to certain observations of the court at pp. 252 and 253 of the said decision. But those observations do not, in our opinion, in any way militate against the principles followed by the Tribunal in this case. In the above premises, we are of the opinion that the Tribunal arrived at the correct decision in the facts and circumstances of the case. The question, therefore, is answered in the affirmative and in favour of the assessee. In the facts and circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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