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2007 (10) TMI 245 - HC - Income TaxTribunal not recorded satisfactory finding on the question of applicability of proviso to section 145 - counsel on both the sides agree that in the light of the judgment of the apex court in the case of Salem Co-operative Central Bank Ltd. v. CIT, the order of the Tribunal be set aside hence reference is returned unanswered by setting aside the order of the Tribunal, and remanding the matter back to the Tribunal
Issues:
1. Assessment of the value of unsold raw films as income. 2. Applicability of certain sections in case of employed directors. 3. Addition of income derived from extraction of silver from hypo solution. Analysis: 1. The High Court considered two questions raised by the Revenue regarding the assessment years 1978-79 and 1979-80. The first question pertained to the assessability of the value of unsold raw films as income for the assessee. The Revenue did not press these questions due to the tax effect being less than Rs. 4 lakhs for both years. Consequently, these questions were returned unanswered. 2. The second issue involved the applicability of sections 40(c) and 40A(5) in the case of directors who are employed. However, since the tax effect was minimal, the Revenue did not pursue this matter, and these questions were also returned unanswered. 3. The third question raised by the assessee related to the addition of income derived from the extraction of silver from hypo solution. Both parties agreed that the Tribunal's order lacked a specific finding on the applicability of the proviso to section 145 of the Income-tax Act, 1961. In light of the judgment in the case of Salem Co-operative Central Bank Ltd. v. CIT, it was decided to set aside the Tribunal's order and remand the matter for fresh consideration. 4. Consequently, the High Court returned the reference unanswered, set aside the Tribunal's order dated September 29, 1984, and directed a reconsideration of the issue by the Tribunal in accordance with the law. 5. The reference was disposed of with no order as to costs, concluding the judgment of the High Court in this matter.
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