JUDGMENT 1. This is a reference called for by this court on application made by the Revenue under Section 256(2) of the Income-tax Act, 1961, from the Tribunal and the Tribunal has referred the following question of law for opinion of this court : "Whether a partner is entitled to exemption under Section 80L of the Income-tax Act in respect of interest earned by the firm on bank deposits held in its name ?" 2. The brief facts giving rise to this reference are this : The assessees/non-applicants are partners in P. D. and Company, Raipur, which firm had deposits in the bank yielding interest income, which was assessed in the hands of the said firm and the share income of the aforesaid three partners including interest income was assessed in the hands of the said partners. The said partners had claimed deduction under Section 80L of the Income-tax Act for the part of the interest income from the bank which was included in the share income from the firm, but the said claim was rejected by the Income-tax Officer on the ground that the said partners were not owners of the bank deposits as the deposits were not in the name of the partners, but in the name of the firm, which was a separate entity. 3. Against the assessment order, the assessees preferred an appeal before the Appellate Assistant Commissioner, Raipur, and the Appellate Assistant Commissioner accepted the claim of the assessees and directed the Income-tax Officer to allow the deduction under Section 80L of the Income-tax Act. Against this, the applicant/Revenue preferred an appeal before the Tribunal and the Tribunal dismissed the Departmental appeal and upheld the order of the Appellate Assistant Commissioner. Thereafter, the Revenue moved an application for making a reference to this court which was rejected by the Tribunal. Therefore, the Commissioner approached this court for calling for a reference under Section 256(2) of the Income-tax Act and accordingly, this reference was called for by this court and the aforesaid question was referred for answer of this court. 4. Suffice it to say that in view of the amendment in Sub-section (3) of Section 80L of the Income-tax Act, the controversy has now come to an end. This amendment was brought by the Taxation Laws (Amendment) Act, 1984, and it was made with retrospective effect, i.e., from April 1, 1976. 4. Suffice it to say that in view of the amendment in Sub-section (3) of Section 80L of the Income-tax Act, the controversy has now come to an end. This amendment was brought by the Taxation Laws (Amendment) Act, 1984, and it was made with retrospective effect, i.e., from April 1, 1976. By this amendment, the following Sub-section (3) was inserted in Section 80L, which reads as under : " Section 80L(3) For the removal of doubts, it is hereby declared that where the income referred to in Sub-section (1) is derived from any asset held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under the said Sub-section in respect of such income in computing the total income of any partner of the firm or any member of the association or body." 5. Now, after "this amendment, no deduction in the income of the partners out of the interest is permissible. Therefore, this reference has to be answered in favour of the Revenue and against the assessee.