TMI Blog1981 (4) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... d in disallowing the claim of interest on the said amount claimed in the following assessment year, being 1961-62 ? " The assessee is a registered firm and the references relate to the assessment years 1960-61 and 1961-62, corresponding to the calendar years 1959 and 1960. The assessee filed returns of income for the assessment year 1961-62 and claimed deduction on account of payment of interest on loans. Subsequently, it filed a return for the assessment year 1960-61 on May 8, 1961, in response to a notice under s. 148 of the Act. In the course of the assessment proceedings, the ITO noticed cash credits in the names of different parties in the assessee's accounts. A letter was given to the ITO on behalf of the assessee on January 17, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced the relevant materials in support of its stand that the cash credits were genuine, and (iv) The miscellaneous petition filed by the assessee had not been properly disposed of by the Tribunal. The Tribunal having passed the order under s. 260(1) of the Act, we, do not think, the jurisdiction under s. 256(2) of the Act was available to be utilised in this case. That objection was not raised at the appropriate stage by the standing counsel and that is how treating the applications to be under s. 256(2) of the Act, this court again called upon the Tribunal to state a case and refer the common question for the opinion of the court. We are inclined to think that the fresh reference applications were not maintainable. Even if we accept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vations in the portion of the order of assessment not meant for the assessee had been taken into account by the Tribunal. We are not at all impressed by the submissions advanced on behalf of the assessee that it has been prejudiced by the action of the Tribunal. Our answer to the question posed, therefore, is in the negative namely: On the facts and in the circumstances of the case, the Tribunal was justified in upholding the addition of Rs. 80,000 in the assessment year 1960-61 as income from other sources and the Tribunal was also justified in disallowing the claim of interest on the said amount in the assessment year 1961-62. The revenue shall have its costs. Hearing fee is assessed at rupees one hundred. J. K. MOHANTY J.-I a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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