2011 (2) TMI 1492 - HC - Income Tax

Summary

Issues involved: Correction of cause title, questions of law framed by Tribunal, applicability of certain provisions, disallowance of excise duty liability, levy of interest u/s 139(8) and S.215.

Correction of cause title: The High Court directed the correction of the cause title from CIT Vs. J.K. Synthetics Ltd. to J.K. Synthetics Ltd. Vs. CIT as framed by the Tribunal at the behest of the assessee for the Assessment Year 1976-1977.

Questions of law framed by Tribunal: Four questions of law were presented for consideration:
1. Interpretation of the limit of &8377; 5000 prescribed by proviso to S.80 VV and confirmation of disallowance.
2. Applicability of S.40(c) to payments made to directors and confirmation of disallowance.
3. Disallowance of excise duty liability on polymer chips due to non-accrual during the relevant previous year.
4. Maintainability of grounds of appeal regarding the levy of interest u/s. 139(8) and S.215 of the Income Tax Act.

Interpretation of questions of law: The first question was not pressed due to similarity with a previous case, and the second question was answered in favor of the assessee based on a previous judgment. The third question regarding excise duty liability was remanded to the Assessing Officer for verification based on a previous decision in favor of the assessee. The last question was answered against the assessee based on previous judgments.

Conclusion: The petition was disposed of based on the decisions made regarding the questions of law framed by the Tribunal and the applicability of certain provisions in the case.