The Court's decision reaffirmed the entitlement of the assessee to the concessional rate of tax under Section 115 H and the conditions under Chapter XII-A of the Income Tax Act.

R. Sudhakar, J.

1. This Tax Case (Appeal), filed by the Revenue as against the order of the Income Tax Appellate Tribunal, was admitted by this Court on the following substantial questions of law:

"1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee was entitled to the concessional rate of tax under Section 115 H when the assessee has not satisfied the procedural and substantive requirements under Chapter XII A of the Income Tax Act?

2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee was eligible under Section 54F in respect of purchase of property held in the name of his wife?"

2. The brief facts of the case are as follows:

The assessee filed his return of income for the assessment year 1998-99 admitting taxable income of Rs.21,19,890/-. The income thus returned consisted of interest accrued on/received from bank deposits. Hence, the assessee computed the tax due at the concessional rate of 20% as per the provisions of Section 115-E read with Section 115-H of the Income Tax Act. During the scrutiny assessment, the Assessing Officer after clubbing the income of the assessee's wife and father-in-law, determined the taxable income. In doing so, the Assessing Officer followed the assessment for the assessment year 1993-94.

3. Aggrieved by the said order of the Assessing Officer, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who upheld the action of the Assessing Officer by adding the income of the assessee's wife, but deleted the addition of income of the assessee's father-in-law.

4. As against the said order of the Commissioner of Income Tax (Appeals), the assessee preferred further appeal before the Income Tax Appellate Tribunal. The Tribunal, by relying upon its own decision pertaining to the same assessee for the assessment years 1993-94 to 1997-98, allowed the appeal in favour of the assessee.

5. Being aggrieved by the order of the Tribunal, the Revenue is before this Court.

6. Heard learned Standing Counsel appearing for the Revenue and the learned counsel appearing for the assessee and perused the materials placed before this Court.

7. It is fairly submitted by both the learned counsel appearing for the assessee and the learned Standing Counsel appearing for the Revenue that the second question of law admitted by this Court was wrongly framed, since the said question of law was not the issue before the Tribunal.

8. In view of the above submission, it is not necessary to answer the second question of law admitted by this Court, which does not call for any consideration.

9. With regard to the first substantial question of law, both the learned Standing Counsel appearing for the Revenue and the learned counsel appearing for the assessee, fairly submitted that the first substantial question of law was already decided by this Court in favour of the assessee in respect of the very same assessee for the assessment years 1994-95 to 1996-97 in T.C.(A)Nos.1053 to 1056 of 2004 dated 07.02.2012.

10. In T.C.(A)Nos.1053 to 1056 of 2004 (Commissioner of Income Tax Vs. N.Sundarraman), this Court, by order dated 07.02.2012, while dealing with the issue whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee was entitled to the concessional rate of tax under section 115H when the assessee has not satisfied the procedural and substantive requirements under Chapter XIIA of the Income Tax Act, which is an identical issue in the present appeal, held as follows:

"7. As far as question of law Nos.4 and 5 are concerned, it is the claim of the assessee that returns were filed based on section 115E of the Act. On the other hand, the Assessing Officer had found that returns were filed under section 115H of the Act and as per the said section, at the time of filing the return, it