Commissioner Of Income-Tax vs Ramesh Chandra Khandelwal on 17 December, 2004
In the case of CIT v. Ram Mohan Rawat [2002] 255 ITR 555 the Rajas-than High Court has held that if we go by the plain language of the provision of Section 80C(2)(h) of the Act, the assessee is entitled for deduction only if he invests in NSCs out of the income "chargeable to tax". Under the aforesaid provision chargeable to tax means the income of the current year and not the income of any other years.