Per Shri George Cheriyan, Accountant Member - IT Appeal No. 341 (Mad.) of 1983 is an appeal by the assessee and IT Appeal No. 512 (Mad.) of 1983 is an appeal by the revenue, both relating to the assessment year 1978-79.

2. The appeal preferred by the assessee, that is, IT Appeal No. 341 (Mad.) of 1983 is barred by limitation by one day. We have perused the application for condonation of delay and have heard the learned departmental representative, the delay primarily occurred due to pressure of work in the office of the counsel. In view of this, we condone the delay and admit the appeal.

3. For the assessment year 1978-79, now under consideration the assessment is, made in the status of an 'individual'. This was the status shown while filing the return of income. The returned income shown was Rs. 45,423. While arriving at the aforesaid income which was from fixed deposits, the assessee had claimed deduction of Rs. 18,857 which represented interest paid to the bank. The ITO did not allow the deduction claimed stating that a similar claim made in the earlier year was negatived. He, therefore, added back the amount of Rs. 18,857.

4. In appeal, the assessee raised a contention for