2000 (8) TMI 7 - SC - Income Tax

Assessee, was an undertaking of the State Government engaged in the business of generation and supply of electricity - assessee was entitled to payment of the market value of its undertaking taken over or purchased under the provisions of the Indian Electricity Act, 1910 and such market value, in the event of difference or dispute about it was to be determined by arbitration - held that Income had accrued to the assessee u/s 41(2) in the assessment year 1970-71.

Summary

The Supreme Court upheld the High Court's decision in favor of the Revenue, stating that income accrued to the assessee under section 41(2) of the Income-tax Act for the assessment year 1970-71. The Court also agreed that the Income-tax Officer was justified in reopening the assessment under section 147(a) of the Act. The appeal was dismissed with costs.