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Issues:
1. Assessing the additional retention price of cement as part of the assessee's income. 2. Disallowance of interest and the interpretation of section 40A(8) of the Income-tax Act. Analysis: The High Court judgment involved a petition under section 256(2) of the Income-tax Act, 1961, where the Revenue sought a direction to the Income-tax Appellate Tribunal to refer questions of law relevant to the assessment year 1983-84. The first issue revolved around the inclusion of a sum of Rs. 1,77,99,414 received by the assessee as the price of cement, which was retained under the orders of the Delhi High Court. The assessee claimed that this amount was not assessable as income, citing an interim order allowing the retention price under the Cement Control Order, 1967. The Income-tax Officer initially held the amount assessable, but the Commissioner of Income-tax (Appeals) and the Tribunal ruled in favor of the assessee, considering the liability associated with the retention price. The High Court reframed the question to determine if the sum was a trading receipt and should be included in the income calculation. Regarding the second issue, the disallowance of interest under section 40A(8) of the Income-tax Act was contested. The Income-tax Officer disallowed a portion of the interest paid to depositors, citing uncertainty about the security provided. The Commissioner of Income-tax (Appeals) deleted the disallowance, and the Tribunal upheld this decision. The Revenue's reference application was rejected by the Tribunal, leading to the High Court reframing the question to assess if the Tribunal was justified in upholding the deletion of the disallowance under section 40A(8). The High Court ultimately directed the Tribunal to refer the reframed questions to the court for its opinion, emphasizing the existence of legal issues and the similarity to previous assessment proceedings for the same assessee.
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