RamachandranNair, J.

1. The question raised in the two sets of appeals filed by the Revenue against the orders of the Income Tax Appellate Tribunal issued in favour of the two assesses is one and the same, i.e., whether the assesses are entitled to credit, tax deducted at source in the assessment year following the previous year in which deduction of tax at source and remittance was made by the payer even though income in respect of which deduction is made is not returned or assessed in that assessment year.

2. We have heard senior counsel Sri.P.K.R.Menon appearing for the Revenue and the learned counsel Sri.P.Balakrishnan appearing for the respondents-assessees. The undisputed facts leading to the controversy are the following.

3. The respondents-assessees were holding cumulative term deposits in banks entitling them for interest on deposits which was periodically credited by the Bank in the deposit account. As required under Section 194A of the Income Tax Act, the Banks recovered tax at source on the interest credited in the deposit account of the respondentsassessees and issued TDS certificates to the respondents. Though the respondents did not return interest income