1987 (10) TMI 35 - HC - Income Tax

Summary

The High Court of Allahabad dismissed the Revenue's application under section 256(2) of the Income-tax Act, 1961. The court held that charity included in the purchase price of cotton is not a revenue receipt based on a Supreme Court decision. The court also found that the Income-tax Officer's estimation of interest on notional basis for debit balances outstanding in the accounts of three dealers was not supported by evidence and was not a question of law. The application was rejected and dismissed.